The China Securities Regulatory Committee (CSRC) has released “the Letter of the Requirements for the Participants of IPO Pricing Enquiry”, to enhance the management of initial price enquiry rules.
Summarizing the contents of the letter, participants will be responsible to their own research and investigation to bid for the IPO. One designated person shall be in charge of the whole process of the IPO price bidding. Further, participants shall bid the IPO price independently. Any intentional manipulation of the price, arbitrary, and collusion bidding are prohibited.
Additionally, participants shall bid the similar price for both initial pricing enquiry period and the accumulative bidding enquiry period. Speculative bidding is prohibited.
Also, participants shall have their own designated cash/ securities account, and the lending of any account to others is highly prohibited.
CSRC will supervise the actions of participants in the IPO pricing enquiry. The participants, who go against the relevant regulations, will be regarded as offenders. Offenders will be removed from the CSRC enquiry participants’ list.