GF 323
CONFIDENTIAL
19
機密
30.
In
August
1993,
SCSPC issued a set of specific
It
guidelines on the sale and subscription of new shares.
is intended to provide a better basis for the local
authorities to organise public subscription exercises on
new share issues, conceivably in the wake of the poorly organised exercise in Shenzhen last year (6).
31.
Notwithstanding
these
developments,
the
securities system in China is still far from being properly
developed. At present, the stock markets are small and
(6) Salient points in the guidelines include:
(i)
(ii)
(iii)
(iv)
Localities subscription new shares shares.
Issuance of
not
yet
fulfilling
their
to treasury bills should not issue or offer application forms for new
new shares in different localities is subject to the sanction of SCSPC.
Issuance of new shares is limited to cities with proper communication links, computer network and transportation system, as well as with a sufficient number of branches of financial institutions and offices of members of either the Shanghai or the Shenzhen Stock Exchange.
Sale and allotment of new shares are confined to the following methods:
(a)
(b)
unlimited sale of application forms (each form for a pre-determined amount of shares ranging between 500 and 1 000 in multiples of 100) at cost and with re-sale banned.
Allotment by public lottery and payment due
on actual allotment; or
offer of
application forms linking up
with the total amount of fixed resident bank deposits or with bank deposits generally in the locality.
payment as in (a); or
(c)
any specific advance.
Allotment and
method agreed with SCSPC in
CONFIDENTIAL
機密