The reporter learned that the China Securities Association has recently drafted the “Code of Practice for Sponsor Representatives” and is seeking comments from the industry. The new regulations make it clear that insurance agents, other persons engaged in sponsorship business, and their spouses must not hold shares in the issuer under any name or method, including direct shareholding in their own name, but also holding shares through relatives, pseudonym, brokerage, etc., as well as disguised shareholding through trusts, fiduciary investments, partnership shares, asset management plans, contract private equity funds, etc., as well as obtaining shares in proposed listed companies and participating in strategic placements and price increases in violation of regulations. The new regulations also extend the scope of the ban to the entire business cycle. All aspects of project establishment, due diligence, preparation of application documents, review and inquiry responses, and continuous supervision after listing must not be invested in shares in violation of regulations, and two types of hidden forms are specially named. It is prohibited to invest in a proposed sponsored enterprise by “pre-investment” or “early locking in the target” before the project is officially established; it is prohibited to obtain improper equity income through retroactive interest arrangements after the project is terminated or the continuous supervision period ends.

The reporter learned that the China Securities Association has recently drafted the “Code of Practice for Sponsor Representatives” and is seeking comments from the industry. The new regulations make it clear that insurance agents, other persons engaged in sponsorship business, and their spouses must not hold shares in the issuer under any name or method, including direct shareholding in their own name, but also holding shares through relatives, pseudonym, brokerage, etc., as well as disguised shareholding through trusts, fiduciary investments, partnership shares, asset management plans, contract private equity funds, etc., as well as obtaining shares in proposed listed companies and participating in strategic placements and price increases in violation of regulations. The new regulations also extend the scope of the ban to the entire business cycle. All aspects of project establishment, due diligence, preparation of application documents, review and inquiry responses, and continuous supervision after listing must not be invested in shares in violation of regulations, and two types of hidden forms are specially named. It is prohibited to invest in a proposed sponsored enterprise by “pre-investment” or “early locking in the target” before the project is officially established; it is prohibited to obtain improper equity income through retroactive interest arrangements after the project is terminated or the continuous supervision period ends.