China Securities Regulatory Commission: Allow issuers’ executives and employees to participate in strategic placements through asset management plans

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According to news from the website of the China Securities Regulatory Commission on February 1, the China Securities Regulatory Commission’s statement on the “Administrative Measures for Securities Issuance and Underwriting (Revised Draft Consultation Draft)” pointed out that the strategic placement mechanism should be optimized. Unify the main regulations on strategic placement in each sector, clarify that investors participating in strategic placement will not participate in offline inquiry, and the sale restriction period of allotted shares shall not be less than 12 months. The number of investors participating in the strategic placement shall not exceed 35, and the upper limit of the strategic placement ratio shall not exceed 50%. At the same time, the issuer’s executives and employees are allowed to participate in the strategic placement through the asset management plan, and the stock exchange is authorized to make regulations on the aforementioned situation and the sponsor’s follow-up investment based on the positioning of the sector.