Article 33 of the Securities Law of People's Republic of China (PRC) stipulates:
1. The maximum period of consignment and exclusive sale of securities shall not exceed 90 days.
2. During the period of consignment and underwriting, the securities company shall ensure that the securities it consigns and underwrites are sold to the subscribers first. A securities company shall not reserve the securities entrusted or purchased by it, and shall not reserve the securities underwritten by it in advance.
Where shares are issued at a premium, the issue price shall be determined through consultation between the issuer and the underwriting securities company.
Extended data:
Securities issuance rules:
1. If the total face value of the securities publicly issued to unspecified objects exceeds RMB 50 million, it shall be underwritten by the underwriting syndicate. The underwriting syndicate consists of the lead underwriter and the securities companies participating in the underwriting.
2. During the period of consignment and underwriting, the securities company shall ensure that the securities it consigns and underwrites are sold to the subscribers first. A securities company shall not reserve the securities entrusted or purchased by it, and shall not reserve the securities underwritten by it in advance.
3. Upon the expiration of the time limit for public offering of shares, the issuer shall report the issuance of shares to the State Council Securities Regulatory Authority for the record within the prescribed time limit.
References:
Baidu Encyclopedia-People's Republic of China (PRC) Securities Law