The Shanghai Stock Exchange has opened consultation on the Draft Implementation
Rules for Listed Companies’ Securities Issuance and Underwriting. Key provisions
for new shelf offerings: 1) Failed tranches — any tranche deemed a failed
issuance may not be reissued; unused, not-yet-initiated issuance quota may be
allocated to subsequent tranches. 2) Staged issuance timing — the initial
tranche must be executed within one year of registration approval; if the first
tranche is not implemented within one year, subsequent tranches are prohibited.
3) Issuance procedures — each tranche under a shelf offering must follow the
existing rules for listed companies’ non-public share issuances (private
placements).
