According to the regulations, the sponsor institution (sponsor) shall guide the issuer before recommending the initial public offering and listing of shares. The recommendation institution and its recommendation representative shall follow the principles of diligence, honesty and trustworthiness, earnestly perform the obligations of prudent verification and counseling, and be responsible for the authenticity, accuracy and completeness of the issuance recommendation letter issued by them.
China Securities Regulatory Commission no longer puts forward rigid requirements for the counseling period. Before recommending an issuer's initial public offering and listing, the sponsor institution shall give guidance to the issuer, and provide systematic training on laws, regulations and knowledge of the securities market to the issuer's directors, supervisors and senior managers, shareholders holding more than 5% of shares and actual controllers (or their legal representatives), so that they can fully grasp the relevant laws, regulations and rules of issuance and listing, standardize their operation, know their responsibilities and obligations in information disclosure and performance of commitments, and establish a sense of honesty and enter the securities market.
After the counseling work of the sponsor institution is completed, the agency dispatched by the China Securities Regulatory Commission where the issuer is located will conduct counseling and acceptance.