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1. Acceptance of the application documents
The issuers shall prepare the application documents in accordance with the Standard Format of Application Documents for Public Offering as promulgated by the China Securities Regulatory Commission (hereinafter referred to as the CSRC). When they have received the approvals from the people's governments at provincial level or the relevant departments under the State Council, their application documents shall be recommended by the major underwriters and then submitted to the CSRC.
The CSRC shall decide on the acceptance of documents for review within five working days in receipt of the aforesaid documents. The CSRC will not accept any application documents prepared by other means than required, and once the documents for review have been accepted, the charge of review as much as CNY30,000 shall be collected in line with the related state regulations.
In order to enhance the working level of stock issues, the major underwriters shall conduct the one-year guidance for the issuers and issue the letters of commitment as well before they submit the application documents.
In the course of guidance, the major underwriters shall prepare the tests on the laws and regulations such as the Company Law and the Securities Law for the directors, supervisors and senior executives of the issuers. If the issuers fall among the enterprises within the planned public offerings in 1997, the CSRC shall conduct the said tests. The test-takers are required to pass over 80% of all their test items.
If the issuers apply for the public offering as the high-tech enterprises, the major underwriters shall submit the documents of recommendation to the CSRC. When the above-stated documents have been received, the CSRC shall within 5 working days entrust the Ministry of Science and Technology and the Chinese Academy of Sciences with analyzing and proving the qualification of those enterprises concerned. The two parties entrusted by the CSRC shall, within 40 working days in receipt of the related documents, send the results of analysis and proof in the form of mail to the CSRC. Once the issuers are confirmed as high-tech enterprises, the CSRC will send the notices to the enterprises and their major underwriters for preparing the application documents according to the Standard Format of Application Documents for Public Offering. These enterprises have the right to enjoy the preferential reviews as well.
2. Initial reviews
When the application documents have been accepted by the CSRC, the initial reviews shall be conducted over whether the application documents from the issuers match the requirements from the related regulations. Additionally, the CSRC shall send its comments on the initial reviews in the form of mail to the issuers and their major underwriters within 30 days.
The major underwriters shall, within 10 days in receipt of the comments on the initial reviews, submit their improved application documents to the CSRC.
When the initial reviews are conducted, the CSRC shall seek from the State Development Planning Commission and the State Economic and Trade Commission the suggestions about whether the investment projects of issuers can meet the national industrial policies. The two Commissions must send their comments in the form of mail to the CSRC within 15 working days in receipt of the documents.
3. Reviews by the Public Offering Review Committee (the PORC)
The CSRC performs the further reviews over the application documents that have been improved in conformity with the comments from the initial reviews, and then presents the reports on the initial reviews and the application documents to the PORC for review and verification within 60 days following its acceptance of the application documents.
The PORC shall conduct the public offering reviews according to the working procedure approved by the State Council. The Committee shall, through its thorough discussion, adopt the means of voting to vote on the public offering applications and then present its comments on the public offering reviews.
4. Approval of the public offering
Based on the comments on the public offering reviews from the PORC, the CSRC shall make the final decisions on whether the applications of issuers for public offering are to be approved. In case of the approved public offering, the CSRC shall issue the corresponding documents. Otherwise, the CSRC shall issue the written comments to explain the reasons for disapproval.
The CSRC shall decide within 3 months in receipt of the application documents.
5. Reconsideration
The enterprises, once their applications for public offering are rejected, shall file an application for reconsideration within 60 days in receipt of the written decisions from the CSRC. The CSRC must decide on the applications for reconsideration within 60 days in receipt of such applications. |
