The China Securities Regulatory Commission ("CSRC") on March 21 released the Decision on Amending the Interim Provisions on the Public Sale of Shares by Shareholders during an Initial Public Offering (the "Provisions"), with effect from the date of promulgation.

According to the revised Provisions, the initial public offering ("IPO") of a company shall be mainly for raising the funds required for the development of the company, and the number of new shares to be issued shall be reasonably determined based on the company's actual demand for capital. The number of shares publicly sold by shareholders of the company shall not exceed the number of shares allocated to the investors who voluntarily set a lockup period of 12 months or longer. In addition, investors who voluntarily set a lockup period of 12 months or longer shall not have illegal interest arrangements with shareholders who sell shares publicly and the relevant interested parties, such as the provision of financial aid or compensation, holding shares as a proxy, entrusting shareholding, etc.