Form an underwriting syndicate for the lead underwriter,
The advantage of (1) is that it can share the risk of the lead underwriter's issuance, because there may be no risk of non-issuance in China at present, but it may not be fully underwritten abroad, especially in countries where securities are registered and issued. If the lead underwriter adopts the underwriting method, it may not be able to sell it completely, forcing him to buy the remaining securities. At the same time, the formation of an underwriting syndicate can expand customer resources and make the securities issue more smooth;
(2) The biggest drawback for the lead underwriter is that it reduces the underwriting fee income due to the lead underwriter and reduces the profit of the lead underwriter.