What Is Securities Underwriting?

Securities underwriting refers to the act of an issuer entrusting a securities business to publicly sell securities to the public. When an issuer issues securities publicly to unspecified objects, it shall be underwritten by a securities company according to law. The securities underwriting business adopts the method of consignment or underwriting. ^[1] Securities underwriting is the act of a securities operating agency issuing securities on behalf of a securities issuer. It is one of the most basic business activities of securities operating institutions.

Securities underwriting

When an issuer passes

according to

Securities Underwriting Article 66

The term "online issuance" as used in these measures refers to the issuance of securities through the technical system of the stock exchange.

The "offline placement" mentioned in these measures refers to the issuance of securities that is not implemented through the technical system of the stock exchange and is implemented by the lead underwriter.

Article 67 of Securities Underwriting

The issuance and underwriting of other securities of listed companies shall be implemented in accordance with these Measures.

Securities Underwriting Article 68

These measures will be implemented as of September 19, 2006. "Administrative Measures for the Securities Underwriting Business of Securities Business Institutions" (CSRC issued [1996] No. 18), "Notice on Prohibition of Misconduct in Stock Issuance" (Zhen Jian Fa Zi [1996] No. 21), "Resolutely Stopping the Issuance of Stock Issuance Notice on Overdrafts, etc. (Zheng Jian Fa Zi [1996] No. 169), "Notice on Prohibiting Securities Business Institutions from Applying for Their Underwriting Shares (Zheng Jian Ji Zi [1997] No. 4)," On Strengthening the Securities Underwriting Business of Securities Business Institutions Notice of Supervision Work (CSRC No. [1999] No. 54), "Notice on Issues Concerning Placing of Shares by Legal Persons" (CSRC Issue No. [1999] No. 121), "Notice on Issues Related to the Arrangement of Stock Listing" (Issued by the Securities Regulatory Commission) Zi [2000] No. 86), "Supplementary Notice on the Supervision of Securities Underwriting Business of Securities Business Institutions" (Zheng Jian Jian Zi [2000] No. 199), "Notice on New Share Issuing Companies' Company Promotion via the Internet" (Zheng Jian Issuance Word [2001] No. 12) and the "Notice on Certain Issues Concerning the Trial Inquiry System for the Initial Public Offering of Shares" (Zheng Jian Fa Zi [2004] No. 162) were abolished simultaneously.