stock issue
2.The amount of new stock and EPS one year before the new stock issue have a remarkable effect on the underpricing rate, and there is relationship of quadratic function taking the shape of letter U among the three mentioined above. Before the turning pint appears, the information effect of new stock amount is stronger than the supply one, and the quality effect of EPS stronger than its investment effect whereas after the turning point appears, converse is the case.
3.Article 11 In issuing foreign capital stocks listed abroad within the total amount fixed in the stock issue plan, it may, with the approval of the Securities Committee of the State Council, agree with the underwriter(s) in the underwriting agreement to reserve a certain amount of stocks apart from the amount underwritten but the amount reserved shall not exceed 15% of the total amount planned to be issued and listed abroad.

