CSRC: Optimize the pricing mechanism of new share offerings and strengthen the protection of small investors in the capital market.

On October 27, the China Securities Regulatory Commission issued the "Opinions on Strengthening the Protection of Small and Medium Investors in the Capital Market". It mentioned optimizing the pricing mechanism for IPOs. It promotes the formation of an offline placement mechanism for new IPOs that encourages long-term holding, and explores pilot programs to increase the allocation ratio for offline investors with higher lock-up ratios and longer lock-up periods. It strengthens the classification and evaluation management of offline investors, strictly limits pricing manipulation by inquiring institutions participating in offline placements of initial public offerings, and encourages offline investors to make reasonable bids. It increases the post-event retrospective self-discipline supervision of investment value research reports, and strictly regulates the issuance proposals reported by underwriting institutions. It urges underwriting institutions to be cautious in making profit forecasts when issuing investment value research reports, provide full risk warnings, and carefully determine valuation conclusions. It prohibits underwriting institutions from increasing fees proportionally according to the size of the offering, and prohibits sponsoring institutions and accounting firms from using stock public offering listing results or audit results as fee conditions. The document aims to strengthen the protection of small and medium investors in the capital market through various measures, including improving information disclosure quality, enhancing investor education, and cracking down on illegal activities that harm investor interests.