What Are the Different Commercial Underwriter Jobs?

An underwriting syndicate refers to: for a securities with a very large amount of issuance at one time, such as national debt or large-scale stock issuance, an underwriting agency is often unwilling to assume the issuance risk alone. In this way, the risks individually assumed by each underwriting agency are reduced. The "Interim Regulations on the Administration of the Issuance and Transaction of Stocks" issued by the State Council in April 1993 stipulates that: "The face value of the shares to be publicly issued exceeds RMB 50 million or the expected sales amount exceeds RMB 50 million shall be underwritten by the underwriters. The lead underwriter It shall be determined by the issuer through bidding or negotiation in accordance with the principle of fair competition. "

Underwriting syndicate

The underwriting syndicate consists of at least two

Chapter 1

General

Article 1 These Measures are formulated in accordance with the relevant regulations of the State Council in order to regulate the examination and approval of the membership of the government bond underwriting syndicate, protect the legitimate rights and interests of applicants and members of the government bond underwriting syndicate, and promote the smooth issuance of government bonds and the stable development of the market.

Article 2 These Measures apply to the examination and approval of the membership of the government bond underwriting syndicate.

Article 3 The national bonds mentioned in these Measures refer to the certificate-type government bonds, book-entry government bonds and other national bonds issued by the Ministry of Finance on behalf of the Central Government within the territory of China.

Article 4 The members of the government bond underwriting syndicate referred to in these measures refer to financial institutions such as commercial banks, securities companies, insurance companies, and trust and investment companies that have certain qualifications and are approved to engage in government bond underwriting business.

Article 5 Treasury bond underwriting syndicates are organized according to the type of national debt, including voucher-type treasury bond underwriting syndicates, book-entry treasury bond underwriting syndicates, and other treasury bond underwriting syndicates.

The members of the book-entry treasury bond underwriting syndicate are divided into Class A members and Class B members.

Article 6 Deposit-financing financial institutions such as commercial banks in China and the Postal Savings and Remittance Bureau of the State Post Bureau may apply to become members of the voucher-type government bond underwriting syndicate.

Depository financial institutions such as domestic commercial banks, and non-depository financial institutions such as securities companies, insurance companies, and trust and investment companies may apply to become members of the book-entry bond underwriting syndicate.

Article 7 The qualification examination and approval of members of the book-entry treasury bond underwriting syndicate shall be implemented by the Ministry of Finance in conjunction with the People's Bank of China (hereinafter referred to as the People's Bank of China) and the China Securities Regulatory Commission (hereinafter referred to as the Securities Regulatory Commission), and the China Banking Regulatory Commission (hereinafter referred to as (Referred to as the CBRC) and the China Insurance Regulatory Commission (hereinafter referred to as the CIRC).

The qualification examination and approval of the members of the voucher-type government bond underwriting syndicate shall be implemented by the Ministry of Finance in conjunction with the People's Bank of China, and the opinions of the CBRC shall be sought.

Article 8 The establishment of the government bond underwriting syndicate follows the principles of openness, fairness, and justice, and implements the survival of the fittest on the basis of maintaining the basic stability of its members. In principle, the number of members of the certificate-type government bond underwriting syndicate does not exceed 40; the number of members of the book-entry government bond underwriting syndicate does not exceed 60, of which there are not more than 20 members of category A.

Article 9 The membership of the national debt underwriting syndicate is valid for 3 years. After the expiration of the membership, the membership shall be examined and approved again in accordance with these Measures.

Chapter 2

Qualifications

Article 10 An applicant shall meet the following basic conditions:

(1) legally established financial institutions in China;

(2) Carrying out business activities in accordance with the law, with no major illegal records in the business activities in the past three years, and having a good reputation;

(3) Financial stability, indicators of capital adequacy ratio, solvency, or net capital status meet regulatory standards and have strong risk control capabilities;

(4) Having a full-time department responsible for the national debt business and a sound national debt investment and risk management system;

(5) High degree of information management;

(6) Having the ability and willingness to fulfil various obligations stipulated in Chapter VI of these Measures.

Article 11 An applicant who applies for membership of a voucher-type government bond underwriting syndicate shall meet the following requirements:

(1) The conditions stipulated in Article 10 of these Measures;

(2) Deposit-based financial institutions with a registered capital of not less than RMB 300 million or a total asset of more than RMB 10 billion;

(3) More than 40 business outlets.

Article 12 Applicants applying for membership in the book-entry Treasury bond underwriting syndicate should meet the following requirements:

(1) The conditions stipulated in Article 10 of these Measures;

(2) Deposit-type financial institutions with a registered capital of not less than RMB 300 million or a total asset of RMB 10 billion or more, or non-deposit financial institutions with a registered capital of not less than RMB 800 million.

Article 13 Applicants applying for category A membership of the book-entry treasury bond underwriting syndicate shall, in addition to meeting the conditions specified in Article 12 of these Measures, the book-entry treasury business of the previous year shall be within the top 25.

Chapter III

Application and approval

Article 14 The Ministry of Finance, together with the People's Bank of China and the China Securities Regulatory Commission, conducts the examination and approval of the membership of the government bond underwriting syndicate; relevant information such as the deadline for applying for membership of the government bond underwriting syndicate should be announced in advance to ensure that the applicant has sufficient time to prepare application materials .

The applicant should submit an application before the application deadline and submit the following application materials:

(1) Application form;

(2) Overview of the institution;

(3) A photocopy of the legal person's business license and financial business license;

(4) A copy of the audit report of the financial statements of the previous year;

(5) Underwriting and trading of national debt in the previous two years.

An applicant who applies for membership in a voucher-type treasury bond underwriting syndicate shall submit the application materials to the Ministry of Finance and the People's Bank of China respectively; if an applicant applies for membership of a book-entry treasury bond underwriting syndicate, it shall submit the application materials to the Ministry of Finance.

Article 15 The Ministry of Finance shall review the application materials for membership of book-entry treasury bond underwriting syndicates, and review the application materials for membership of voucher-type treasury bond underwriting syndicates with the People's Bank of China, and handle them separately according to the following circumstances:

(1) If the application materials are incomplete or do not conform to the legal form, the applicant shall be informed on the spot or within 5 days of all the content that needs to be corrected. If the application materials are not notified within the time limit, they will be accepted from the date of receipt of the application materials;

(2) Where the application materials are complete and conform to the legal form, or if the applicant submits all the application materials for correction and correction as required, the application for examination and approval shall be accepted.

The Ministry of Finance accepts or refuses to accept the application for membership approval of the treasury bond underwriting syndicate, and shall issue a written voucher stamped with a special seal and dated.

Article 16 The Ministry of Finance shall solicit the opinions of the CBRC and the CIRC on matters such as the applicant's major business activities, financial risk conditions, financial market performance, and whether there are any significant illegal records in its business activities in the past three years.

Article 17 The Ministry of Finance presides over the convening of a membership examination and approval meeting for voucher-type government bond underwriting syndicates, and reviews the applicant's application materials together with the People's Bank of China.

The Ministry of Finance presides over the membership examination and approval meeting of the book-entry treasury bond underwriting syndicate, which together with the People's Bank of China and the CSRC will review the applicant's application materials.

Article 18 The Ministry of Finance, in conjunction with the People's Bank of China and the China Securities Regulatory Commission, will select qualified members to determine the members of the government bond underwriting syndicate based on the applicant's paid-up capital, asset scale, operating performance, interbank rankings, and comprehensive national debt business rankings. .

Article 19 The Ministry of Finance, together with the People's Bank of China and the Securities Regulatory Commission, shall inform the applicant of the right to a hearing before making a decision on the examination and approval of the membership of the national debt underwriting syndicate.

Hearings were conducted in accordance with the "Measures for the Hearing of Administrative Licensing by Financial Institutions".

Article 20 Within 45 days from the deadline for accepting application materials, the Ministry of Finance shall, in conjunction with the People s Bank of China, make a written decision to grant or not grant membership in a voucher-type government bond underwriting syndicate; together with the People s Bank of China and the Securities Regulatory Commission, make a grant or non-grant bookkeeping A written decision on the membership of the government bond underwriting syndicate.

After the decision to grant membership in the national debt underwriting syndicate is made, it shall be announced to the public.

If a decision is made not to grant the membership of a national debt underwriting syndicate, the reasons shall be stated and the applicant shall be informed of the right to apply for administrative reconsideration or to file an administrative lawsuit in accordance with the law.

Article 21 The Ministry of Finance and the People's Bank of China shall issue qualification certificates to members of the voucher-type government bond underwriting syndicate; the Ministry of Finance, the People's Bank of China and the CSRC shall issue qualification certificates to members of the book-entry government bond underwriting syndicate.

Article 22 If the applicant is dissatisfied with the decision not to accept the application or to grant the membership of the national debt underwriting syndicate, he may apply for administrative reconsideration or file an administrative lawsuit in a people's court in accordance with the law.

Chapter 4 of the Underwriting Syndicate

Exits and additions

Article 23 Members of the government bond underwriting syndicate may apply for withdrawal from the government bond underwriting syndicate.

Article 24 Within 30 days of receiving the application for withdrawal of members of the government bond underwriting syndicate, the Ministry of Finance, together with the People's Bank of China and the Securities Regulatory Commission, shall make a decision on whether to approve the withdrawal of the government bond underwriting syndicate and announce it to the public.

Until approval is obtained, members of the government bond underwriting syndicate applying for withdrawal shall continue to perform their obligations and enjoy corresponding rights.

Article 25 Members of the government bond underwriting syndicate who withdraw from the government bond underwriting syndicate in accordance with the following agreements:

(1) The members of the government bond underwriting syndicate have committed major illegal acts, or their financial conditions have deteriorated, and it is difficult to continue performing their obligations as members of the government bond underwriting syndicate;

(2) The members of the voucher-type government bond underwriting syndicate fail to fulfill their underwriting obligations above the prescribed minimum percentage, or experience unlucky sales, unscheduled sales, entrust other agencies to act as agents, or do not actively promote the promotion of government bonds;

(3) The members of the book-entry treasury bond underwriting syndicate accumulate four times a year, failing to bid or underwrite the national debt at or above the minimum percentage stipulated in the main agreement of the treasury bond underwriting, or there are serious acts of improper bidding or manipulation of the secondary market.

Article 26 If a member of the government bond underwriting syndicate withdraws from the government bond underwriting syndicate, the Ministry of Finance shall terminate the government bond underwriting master agreement with it.

Institutions that have withdrawn from the government bond underwriting syndicate shall return the qualification certificate.

Institutions that have withdrawn from the government bond underwriting syndicate must not apply to join the government bond underwriting syndicate within two years from the date of withdrawal.

Article 27 When the number of members of the national debt underwriting syndicate is less than the number specified in Article 8 of these Measures, the Ministry of Finance may make a decision to supplement the members of the national debt underwriting syndicate with the People's Bank of China and the Securities and Futures Commission according to the needs of national debt issuance, and will supplement the underwriting of the national debt. The members' decisions are announced to the public in a timely manner.

Article 28 When adding members of the national debt underwriting syndicate, the application and approval of membership of the national debt underwriting syndicate shall be implemented in accordance with the provisions of Chapter III of these Measures.

Chapter 5 of the Underwriting Syndicate

Rights of members of the Treasury bond underwriting syndicate

Article 29 Members of the government bond underwriting syndicate enjoy the following basic rights:

(1) Negotiating the terms and content of the main agreement for underwriting national debts with the Ministry of Finance;

(2) Put forward opinions and suggestions on the manner and management of national debt issuance;

(3) Participating in the issuance of treasury bonds and directly underwriting the treasury bonds with the Ministry of Finance;

(4) Obtaining government bond commission income in accordance with the provisions of the national debt issuance documents;

(5) to obtain timely information on the issuance of government bonds through prescribed channels;

(6) Participating in the pilot work of national debt reform;

(7) Priority to participate in government bond business inspections and training.

Article 30 Members of the certificate-type government bond underwriting syndicate enjoy the following rights:

(1) the rights provided for in Article 29 of these Measures;

(2) Participating in certificate-type government bond financing analysis meeting;

(3) Priority to obtain membership in book-entry bond underwriting syndicates.

Article 31: Class B members of the book-entry government bond underwriting syndicate enjoy the following rights:

(1) the rights provided for in Article 29 of these Measures;

(2) Participate in the process of book-entry government bond issuance and competitive pricing.

Article 32 Class A members of the book-entry government bond underwriting syndicate enjoy the following rights:

(1) the rights provided for in Article 31 of these Measures;

(2) Participating in the quarterly financing analysis meeting of book-entry government bonds;

(3) Make additional subscriptions within the specified percentage of the current bid amount of the government bonds.

Chapter 6

Obligations of members of the Treasury bond underwriting syndicate

Article 33 Members of the government bond underwriting syndicate shall perform the following basic obligations:

(1) continuously participating in the issuance of treasury bonds, and paying the treasury bond issuance to the Ministry of Finance in full and on time;

(2) Doing a good job in publicity and distribution of national debt, and maintaining the credibility of national debt;

(3) Regular reports on the issuance and sales of national debt;

(4) Doing a good job in the payment of government bonds to ensure that investors receive the government debt repayment and interest payment funds in full and on time;

(5) Comply with national laws and regulations and industry self-discipline norms, accept the supervision and inspection of the national debt business supervision department, and report in a timely manner any major illegal acts or financial deterioration of the institution.

Article 34 Members of the certificate-type government bond underwriting syndicate shall perform the following obligations:

(1) Obligations stipulated in Article 33 of these Measures.

(2) Underwriting each period of voucher-type government bonds above the minimum underwriting ratio prescribed by the Ministry of Finance and the People's Bank of China. The specific underwriting ratios of various institutions are determined by the Ministry of Finance and the People's Bank of China based on the voluntary declarations of members of the certificate-type government bond underwriting syndicate, as well as the types of institutions, the balance of savings deposits and their growth, and the number of business outlets. Once the minimum underwriting ratio is determined, it will remain unchanged for 3 years in principle. In special cases, it can be adjusted after being reported to the Ministry of Finance and the People's Bank of China for approval.

(3) Publicize the issuance of treasury bonds, publicize the address and telephone number of treasury bond sales outlets, set up a clear label for treasury bond sales at the sales outlets, and provide publicity materials and on-site consultants.

(4) Establishing a debt management system under the unified management of legal persons and a unified interconnected treasury bond sales network to achieve automatic adjustment of the Treasury bond purchase and exchange rate and sales volume of the entire bank or branch.

(5) Establishing an internal reward and punishment system for the sales performance of treasury bonds.

Article 35 Class B members of the book-entry government bond underwriting syndicate shall perform the following obligations:

(1) the obligations stipulated in Article 33 of these Measures;

(2) opening a special communication line connected with the book-entry national debt bidding system;

(3) Continuously participating in book-entry government bond bidding activities, conducting rational bidding within a reasonable price range, and maintaining the normal order of government bond issuance activities;

(4) Treasury bond underwriting syndicate members shall not conduct bidding on behalf of government bonds, self-supporting national debt claims shall be registered in self-operated accounts, and agency national debt claims shall be registered in client accounts;

(5) Participate in the bidding and underwriting of each instalment of government bonds within the range specified in the main agreement for underwriting of government bonds;

(6) Actively participate in treasury bond transactions and maintain the normal order of the treasury bond market.

Article 36: Class A members of the book-entry government bond underwriting syndicate shall perform the following obligations:

(1) the obligations stipulated in Article 35 of these Measures;

(2) Submit quarterly analysis reports on the operation of the treasury bond market and make recommendations on improving the issuance of treasury bonds and promoting the development of the treasury bond market.

Chapter VII of the Underwriting Syndicate

Supervision and punishment

Article 37 The Ministry of Finance, together with the People's Bank of China and the Securities Regulatory Commission, is responsible for supervising and inspecting the application for membership of the national debt underwriting syndicate and the related activities of the members of the national debt underwriting syndicate to carry out the national debt business.

Article 38 If the applicant conceals the relevant situation or submits false materials to apply for membership in the government bond underwriting syndicate, the Ministry of Finance, together with the People's Bank of China and the Securities Regulatory Commission, will not accept or approve the membership of the government bond underwriting syndicate and give a warning.

Article 39 If a member of a government bond underwriting syndicate obtains membership in a government bond underwriting syndicate by fraud or bribery, the Ministry of Finance, together with the People's Bank of China and the Securities Regulatory Commission, shall revoke the membership of the government bond underwriting syndicate and impose administrative penalties in accordance with law.

Article 40 If members of the government bond underwriting syndicate fail to fulfill their obligations under these Measures and the circumstances are relatively light, the Ministry of Finance, the People's Bank of China and the CSRC shall order them to make corrections within a time limit.

Article 41 If a member of the government bond underwriting syndicate commits any of the acts stipulated in Article 25 of these Measures, the Ministry of Finance, the People's Bank of China and the CSRC shall notify them to withdraw from the government bond underwriting syndicate in accordance with the agreement of the principal of the government bond underwriting syndicate.

Chapter 8 of the Underwriting Syndicate

Supplementary clause

Article 42 The National Council for Social Security Fund and the Postal Savings and Remittance Bureau of the State Post Bureau may apply to become special members of the book-entry treasury bond underwriting syndicate, and the special members may not conduct the distribution of treasury bonds.

Article 43 When the Ministry of Finance, on behalf of the Central Government, issues other government bonds mainly to individuals underwriting, the measures for the examination and approval of the membership of its government bond underwriting syndicate shall be implemented in accordance with the procedures for the examination and approval of the membership of certificate government bond underwriting syndicates in these Measures.

Article 44 These Measures shall be implemented as of the date of promulgation. Measures of the People's Republic of China on the Administration of Level 1 Self-employed Debts of the People's Republic of China [(93) Caiguo Debt No. 100] issued by the Ministry of Finance, the People's Bank of China, and the Securities Regulatory Commission on December 31, 1993 Abolished at the same time as confirming the Implementation Measures [(93) Caiguo Debt No. 100].