FINANCE

China Tightens IPO Rules to Protect Small Investors and Curb Market Manipulation

Published: Oct. 28, 2025 3:42 a.m. GMT+8

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The China Securities Regulatory Commission

China’s top securities regulator on Friday introduced a series of measures to enhance protections for small investors, curb pricing manipulation in initial public offerings (IPOs), and promote long-term equity holding.

The China Securities Regulatory Commission (CSRC) issued new guidelines to reform the offline IPO placement mechanism, giving larger share allocations to institutional investors that commit to longer lock-up periods. The changes are intended to encourage long-term investment behavior and reduce speculative trading in new listings.

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China’s securities regulator introduced 23 measures to protect small investors, curb IPO price manipulation, and promote long-term investment.
New rules increase allocations for institutional investors committing to longer lock-ups, restrict price-influencing bidders, and tighten oversight of underwriters’ valuation reports.
Disclosure, margin financing, and supervision of IPO participants will be strengthened to enhance market transparency and fairness.

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Who’s Who

Wuhan Healthgen Biotechnology Corp.: Wuhan Healthgen Biotechnology Corp. (武汉华大基因生物技术有限公司) is a biotechnology firm that recently underwent an IPO. The CSRC cited its IPO as an example where top-tier institutional investors received significantly more shares due to extended lock-up commitments, highlighting issues the new regulations aim to address within China's IPO placement mechanism.

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