What Is a Lead Underwriter?

The lead underwriter is the Director General. Underwriters who are in charge of overall affairs, undertake major responsibilities, and sign underwriting agreements with issuing companies on behalf of the underwriters. In China, the lead underwriter is responsible for contacting the China Securities Regulatory Commission on the issue of stocks by the issuing company, such as submitting materials for review and reporting on underwriting. In the international issuance of stocks, the lead underwriter is sometimes referred to as the "global coordinator" and "international coordinator", and is further divided into regional lead underwriters (such as Asian lead underwriters, European lead underwriters, etc.) . ^[1]

Lead underwriter

In a nutshell, the lead underwriter

1. Serve

1. The principle of the credit evaluation of the lead underwriter is:

1) Evaluation should adhere to the principles of objectivity, fairness and openness.

2) Solicit opinions from the industry and make it easy.

3) Conducive to the formation of active, standardized and healthy competition.

2. The basic requirements for the credit evaluation of the lead underwriter are as follows:

1) The underwriting company's recommendation was successful and the market performed well.

2) Have rich underwriting experience and strong underwriting business skills and analytical research capabilities, and actively carry out business innovation.

3) According to the "Interim Measures for Counseling Work on Stock Issuance and Listing", the counseling duties must be performed carefully, and the counselling effect is obvious.

4) No major violations of laws and regulations.

5) Have a sound internal control system.

6) Comply with industry norms and implement industry self-discipline.

3. The evaluation of the "underwriter's credit standing" adopts the method of credit standing, and the securities issuer, securities investment fund management company, securities company, accounting firm, law firm, and China Securities Regulatory Commission will conduct evaluation and scoring in accordance with unified evaluation standards. A securities company whose total credit points are in the (top 8) and meets the basic requirements is the "credit lead underwriter".

4. The China Securities Industry Association summarized the evaluation results and announced the evaluation results.

5. For the securities companies selected as "Credit Leader Underwriters", China Securities Industry Association issued a certificate.

6. Once the credit of the lead underwriter is selected, the China Securities Association can recommend it to the China Securities Regulatory Commission, and the CSRC will give priority to the issuance and underwriting business of the credit lead underwriter.