Data:2009-12-12 2:34
Category: Money tips Release Date: 2006-03-09
What is the claw-back mechanism
"Call-back mechanism" refers to the corporate investor inquiry and to determine the price for retail investors access issue; under the general investor subscription and ultimately determine corporate investors and general investors, the allocation of the amount of the stock. This mechanism is mainly applied in the issuer's circulation million in 8000 are, in turn insisted on using legal placement issued under way. Issuers and underwriters in its prospectus a letter of intent, the provision intends to the proportion of corporate placement, while providing access to retail investors when the purchase of over-subscription ratio reached a different legal entities when multiple investors and general investors, the allocation of the amount of the corresponding stock. The placement of the lowest corporate investors, adjustable down to 0 shares. For retail investors oversubscription rate Internet subscription and stock distribution ratio from the full analysis of issuers and underwriters on the basis of market conditions to determine and report to China Securities Regulatory Commission approval.
What is the additional clawback mechanism
According to the principle of issuing additional shares available for sale online through online inquiry to determine the issue price after the purchase of all eligible people selling stocks in order to make the following arrangement: the old shareholders, institutional investors, the public, that is, in the event of subscription in case of insufficient , the net purchase less than under the back-line, on-line back under the old shareholders of the public who purchase order, that is, issuing new shares of the "call-back mechanism." Issuance of new shares, "Callback" is generally inadequate in the case of requisitioning measures.
