Characteristics of individual investors

Fund companies and brokerage firms recently received the "Notice on Matters Relating to the Filing of Inquiry Objects and Placement Objects for Initial Public Offerings," which for the first time clarifies the procedures for individual investors to become recommended class inquiry objects.

The notice stipulates that the main underwriters can recommend no more than 10 individual investors to become recommended RFQ objects. The main underwriters screening conditions for individual investors should include, but are not limited to, the size of the investment capital, professional skills, investment experience, credit history, investment preferences, anti-risk ability and other requirements. The recommended individual investors shall have more than 5 years of investment experience, no record of violation of laws and regulations, and their investment funds shall be their own funds, and the principal underwriter shall verify the legitimacy of the source of their investment funds. In selecting individual investors, the principal underwriter shall give priority to its own customers who have strong research ability and risk tolerance, whose investment capital scale is compatible with the characteristics of the IPO business, and who have a long-term cooperative relationship and mutual understanding with the organization.