On Nov. 29, CHI SAC revised rules to manage abnormal quotations.
CHI SAC issued notice on Guidelines for classification, evaluation and management of offline investors in the initial public offering of securities and its supporting documents.
Follows CHI SAC Oct. 2024 issued rules for offline investors in IPOs, see #230432.
Background
Offline investors have the professional research and pricing capabilities and an important function of value discovery in the primary market of new stock issuance.
Aimed at strengthening supervision of new stock issuance inquiry, pricing, placement.
Amendment Overview
The focus list of the guidelines is adjusted to six abnormal quotation subscription situations of offline investors including significantly high quotation deviation.
The monitoring period for abnormal quotation subscription is revised to 3 months.
Specifies the qualitative and quantitative methods of identifying abnormal quotation.
Specifies self-discipline punishment measures for offline investors who made abnormal quotation for the first time and made repeated violations within twelve months.
Clarifies the procedural provisions for the management of the classification list of offline investors, which will follow management rules for offline investors (#230432).
Cancels the evaluation mechanism for the selected list.
Next Steps
CHI SAC will work with the stock exchanges to determine the monitoring indicators and identification standards for abnormal quotation and subscription behavior.
It will study and establish a white list management system for professional institutional investors under the network on the basis of integrating standards of the selected list.
