What are the review and approval procedures for the listing of B shares?
A prospective issuer of B shares must be a joint stock limited company. The incorporation of the joint stock limited company shall be approved by the provincial-level local government. After the incorporation of the joint stock limited company, the prospective issuer must receive a one-year guidance program from the leading underwriter before submitting the listing application to the CSRC. At the end of a one-year guidance program, a review process will be conducted by the local CSRC office, which will evaluate the guidance program and come up with an evaluation report.
By the time the prospective issuer completes the guidance program, the listing documents are likely ready for submission for the review and approval of the CSRC's. Pursuant to the CSRC Procedures Concerning the Reviewing and Approving of Issuing of Shares, the CSRC shall decide within 5 days after the receipt of the listing documents on whether or not to accept the application. A preliminary review by the CSRC will follow if the application is accepted. The CSRC is then supposed to respond to the prospective issuer and the leading underwriter with preliminary comments within 30 days after the acceptance of the application. The prospective issuer and the leading underwriter shall respond within 10 days to such preliminary comments. At the completion of the preliminary review, the listing documents and application will be submitted to the listing review committee of the CSRC, who shall then vote to approve or disapprove the listing application. The prospective issuer may appeal to the CSRC within 60 days after the receipt of the CSRC's disapproval decision, and the CSRC shall decide within 60 days after the receipt of the appeal.