Highlights Of The Draft Revisions To The IPO System

On February 1, 2023, the China Securities Regulatory Commission ("CSRC"), the Shanghai Stock Exchange ("SSE"), the Shenzhen Stock Exchange ("SZSE"), and the Beijing Stock Exchange ("BSE") issued for public comments draft rules and regulations (the "Draft Rules") related to the registration-based stock issuance system. The Draft Rules mark the official launch of the full implementation of stock issuance reforms in China.

With respect to the highlights of the registration-based stock issuance system, we have provided an overview in the previous article in this series, A Brighter Future: Registration-based Share Offering Reform.

This article further analyzes the main points of the Draft Rules, the current reform and their impact on initial public offering and listing ("IPO") applicants.