In the mainland China, an initial public issuance of securities needs to satisfy the requirements of the relevant laws and administrative regulations. Also the IPO is required to be approved and supervised by the securities regulatory authority CSRC. Without any examination and approval according to law, no entity or individual may make a public issuance of any securities. It shall be deemed as a public issuance upon the occurrence of any of the following circumstances:

1. Making a public issuance of securities to non-specified objects;
2. Making a public issuance of securities to accumulatively more than 200 specified objects; or
3. Making a public issuance as prescribed by any law or administrative regulation. For any securities that are not issued in a public manner, the means of advertising, public inducement or public issuance in any disguised form may not be adopted thereto.

IPO Requirements in Mainland China
An initial public offering (IPO) of stocks of a company in China shall satisfy the following requirements:

1. Having a complete and well-operated organization;
2. Having the capability of making profits successively and a sound financial status;
3. Having no false record in its financial statements over the latest 3 years and having no other major irregularity; and
4. Meeting any other requirements as prescribed by the securities regulatory authority under the State Council, which has been approved by the State Council. A listed company that makes any initial non-public offer of stocks shall satisfy the requirements as prescribed by the securities regulatory authority under the State Council, which have been approved by the State Council and shall be reported to the securities regulatory authority under the State Council for examination and approval.

Application Documents
When an issuer files an application for an IPO of stocks, it shall, upon submitting the application documents, disclose the following application documents in advance according to the provisions of the securities regulatory authority under the State Council.

1. The business license of the company;
2. The constitution of the company;
3. The resolution of the general assemble of shareholders;
4. The prospectus;
5. The financial statements;
6. The name and address of the bank that receives the funds as generated from the public offer of stocks on the behalf of the company; and
7. The name of the underwriting institution as well as the relevant agreements. In case a recommendation party shall be employed, as prescribed by the present Law, the Recommendation Letter of Issuance as produced by the recommendation party shall be submitted as well.

Examination and Approval of the Document Submitted
China Securities Regulatory Commission examines the applications for stock issuance according to law. The issuance examination committee shall be composed of the professionals from the securities regulatory authority under the State Council and other relevant experts from outside the said authority, adopt the means of voting for the determination of applications for stock issuance and set forth the opinions on examination.

China Securities Regulatory Commission, within 3 months as of acceptance of an application for securities issuance, will make an decision on approval or disapproval according to the statutory requirements and procedures, whereby the time for an issuer to supplement or correct its application documents for issuance according to the relevant requirements may not be calculated within the aforesaid term for examination and approval. In the event of disapproval, an explanation will be given in writing.

For more details, please see the Procedures for Public Review of China Securities Regulatory Commission.