CSRC: Earlier pre-IPO disclosure

According to the latest rules of China's securities watchdog, information about initial public offerings awaiting a green light will be disclosed earlier, a step toward more transparency in IPO approval.

According to the latest rules of China's securities watchdog, information about initial public offerings awaiting a green light will be disclosed earlier, a step toward more transparency in IPO approval.

With effect from July, the China Securities Regulatory Commission will release a preliminary prospectus online within five working days after an IPO-seeking company and underwriters receive feedback from the CSRC and make revisions. Before the new rule came into effect, there was no definite limit on how long the IPO prospectus should be published after revision.

The CSRC only ordered that such a disclosure should be made five days before a CSRC meeting for formal approval. In that way, a long period could have passed after a company revised its prospectus. The move is aimed at strengthening the supervision over IPOs, enhancing underwriters' awareness of responsibility, and improving the quality of listed companies.

Before the new rule came into effect, there was no definite limit on how long the IPO prospectus should be published after revision.