Regulation Of The Company’s Sustainable Profitability In IPO

Initial Public Offering is one of the most important ways for the companiestogrow bigger and stronger through the capital market. Along with China’sfirst stock market’s activity,the IPO applicants face with many urgent andspecific legal issues. The uncertainty of company’ssustainable profitabilitycontinues to be the first big legal obstacles.China’sIPO laws present restrictive requirements on major risksofsustainable profitability which is highly paid attention to by the ChinaSecurities Regulatory Commission.Intermediary agencies shallcorrectlyunderstand the legal connotation and denotationof "Major risk"，help theIPO companies to identify and define matters which may cause persistentearnings risk, and improve relevant disclosure. Thus, it helps to remove thelegal obstaclefor the IPO.