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the rules for new stock issuance will be revised.

on september 25, a reporter from securities china learned that the china securities association has solicited opinions from major securities firms and offline investors on the latest revision of the "guidelines for classification evaluation and management of off-private investment investors in initial public offerings of securities".

it is reported that this revision has increased the monitoring of the quotation behavior of offline investors. it explores the use of the average closing price of the secondary market during a certain period after listing as a comparison benchmark for the deviation of investor quotations, retrospectively verifies the inquiry level of offline investors based on market conditions, strengthens the linkage effect between the primary and secondary securities markets, and guides investor quotations to return to the value of listed companies.

the china securities association takes three months as a monitoring period and pays special attention to the following abnormal quotation situations. first, the deviation of the quotation from the average closing price of the 60 trading days after listing is more than +80% or less than -90%. second, the deviation of the quotation from the average closing price of the 120 trading days after listing is more than +80% or less than -90%.

the rules for offline new shares are being revised

the china securities association stated that it will implement the spirit and requirements of relevant documents from the regulatory authorities, strengthen supervision of all aspects of new share issuance, inquiry, pricing and allocation, and rectify relevant requirements such as high-priced over-subscription and group price-cutting. the association will establish a mechanism for tracking and analyzing off-market investors, conduct classified evaluations on the compliance, professionalism, independence and prudence of off-market investors' participation in off-market inquiry and allocation businesses, and adopt differentiated self-discipline management methods to strengthen management.

the china securities association mentioned that as participants with professional research and pricing capabilities, offline investors play an important role in value discovery in the primary market of new stock issuance. their inquiry and subscription behavior will have an important impact on the issuance of new stocks, which is related to the vital interests of issuers and other investors, and also to the success or failure of new stock issuance. maintaining a good order in the capital market and forming a healthy market ecology are the obligations of offline investors. in combination with the needs of the association's self-discipline management work and the previous classification evaluation and management work practices, in order to better implement the "five major supervision" requirements put forward by the central financial work conference and promote the establishment of a good offline issuance order, the china securities association has revised the "guidelines for classification evaluation and management of offline investors in initial public offerings of securities".

specifically, this revision mainly involves several aspects: first, strengthening the monitoring of the quotation behavior of off-market investors; second, specifying the specific circumstances of being included in the restricted list of off-market investors, and giving full play to the role of classified evaluation and management in supporting the best and limiting the worst; third, improving the procedural provisions for identifying abnormal circumstances of off-market investors; fourth, clarifying the requirements for self-discipline management, consolidating the responsibilities of all market players, and further strengthening the supervision and management of off-market investors included in the watch list, abnormal list, and restricted list; fifth, canceling the evaluation mechanism for the selected list; sixth, other provisions, and explanations for the terms related to period calculation mentioned in the guidelines.

abnormal quotations will be paid attention to

in order to help off-market investors understand the new regulations on ipos, the china securities association also clarified relevant matters such as the monitoring indicators for significantly high quotation consistency and significantly high quotation deviation.

for situations where the consistency of quotations is significantly high, the china securities association uses three months as a monitoring period, and takes any two investors as a group. the quotations of each group of investors during the monitoring period are sorted in descending order according to one or more methods, such as the proportion of projects with the same or highly similar quotations, the number of projects jointly participated in, and the time of investors' quotations. according to the sorting results, special attention will be paid to abnormal quotations where investors frequently quote the same or highly similar quotations. the situation where the number of jointly participated projects is significantly small is not included in the statistics.

if investors fail to conduct in-depth research and analysis on the fundamentals of stocks and use the same quotation strategy, resulting in abnormal quotations that are identical or highly similar, the quotation consistency is deemed to be significantly high.

as for situations where the quotation deviation is significantly high, the china securities association uses three months as a monitoring period and pays special attention to the following abnormal quotation situations: situation 1: the deviation of the quotation from the average closing price of the 60 trading days after listing is more than +80% or less than -90%; situation 2: the deviation of the quotation from the average closing price of the 120 trading days after listing is more than +80% or less than -90%.

classify off-market investors into lists of concern, abnormal and restricted

the china securities association stated that it will implement monitoring and self-discipline management on the quotation and subscription behavior of off-market investors. according to the types of abnormal quotation and subscription behavior specified in the guidelines, it will take measures such as listing off-market investors on the off-market investor focus list, abnormal list, and restricted list to strengthen the constraints on their professional reputation.

first, there is the watch list. if an investor in the offline securities market of an initial public offering encounters any of the following abnormal circumstances, the china securities association may include him or her in the offline investor watch list: (a) during a monitoring period, the deviation of the quotation is significantly high; (b) during a monitoring period, the consistency of the quotation with other investors is significantly high; (c) during a monitoring period, the number of inquiry projects whose quotations exceed the recommended price range given by the pricing basis reaches more than three, or the number of projects that do not conform to the recommended price given by the pricing basis reaches more than three; (d) during a monitoring period, the number of projects whose quotations are modified after the quotation reaches more than three, or the price of the same project is modified more than three times; (e) improper behavior in the process of participating in the inquiry and placement business causes negative public opinion and has an adverse impact on the order of offline issuance.

second, the abnormal list. if an investor in the offline offering of initial public offering securities has any of the following abnormal circumstances, he or she may be included in the abnormal list of offline investors: (1) after being included in the watch list, the investor participates in the offline inquiry and allotment business of the initial public offering securities again within twelve months and the circumstances specified in article 4 occur; (2) the investor fails to cooperate with the regulatory authorities and industry self-regulatory organizations in conducting supervision and inspection as required; (3) other obvious abnormal circumstances.

the china securities association stated that off-market investors listed on the abnormal list are not allowed to participate in the off-market inquiry and allotment business of initial public offering securities for three months.

third, the restricted list. if an investor in the offline market of an initial public offering securities encounters any of the following abnormal circumstances, he or she may be included in the restricted list of offline investors: (1) after being included in the abnormal list, the investor participates in the offline inquiry and allotment business of the initial public offering securities again within twelve months and encounters the circumstances specified in article 4; (2) the quoted price significantly deviates from the average transaction price in the secondary market for a certain period after the listing of the initial public offering securities project, causing certain adverse effects on the offline issuance order; (3) the investor's improper behavior during the inquiry and allotment business causes negative public opinion and disrupts the offline issuance order; (4) other major illegal and irregular circumstances.

the china securities association stated that after the expiration of the period of being included in the restricted list, if the off-market investors intend to continue to participate in the off-market inquiry and allotment business of the initial public offering of securities, they should submit a registration application to the association in accordance with the relevant provisions of the "guidelines for classification evaluation and management of off-market investors in initial public offerings of securities".