Lately, the China Securities Regulatory Commission ("CSRC") has released the Provisions on Matters Concerning Commercial Banks Serving as Depository Parties in the Pilot Program on Depository Receipts (the "Provisions") in concert with the China Banking and Insurance Regulatory Commission ("CBIRC"), and also issued the Decision on Revising the Administrative Measures for Securities Issuance and Underwriting (the "Decision"), the Implementing Measures for Follow-up Supervision After the Issuance of Stocks or Depository Receipts by Innovative Enterprises (for Trial Implementation) (the "Measures") and the Guidelines for the Contents and Formats of Depository Agreements for Depository Receipts (for Trial Implementation). All of these policy documents take effect immediately from the issue date.
The Provisions make clear the qualifications of commercial banks to serve as depository parties, examination and approval procedures, requirements on follow-up supervision, etc. According to the Decision, depository receipts will also be governed by the administrative measures; an enterprise planning to offer less than 20 million stocks is allowed to fix the offering price through inquiry as well; and the call-back mechanism is optimized. And the Measures outline arrangements for corporate governance, information disclosure, acquisition, alterations in interest in shares, requirements on the standardization of asset reorganization, and information disclosure for stock incentives and cash dividends.