The mainland will raise requirements for share sale underwriters, debarring those which do not have enough capital or experience. The China Securities Regulatory Commission will revoke the licences of some investment banks if they have not managed a share offering for more than one year, according to a source. Firms cannot underwrite or sponsor deals unless they meet capital requirements. The mainland is attempting to foster a corps of qualified investment bankers to manage booming share sales on the world's second-largest stock market by capitalisation. Companies on the mainland, the world's largest initial public offering market last year, raised a combined 743.8 billion yuan last year. The CSRC informed government and corporate leaders at a recent working conference that it would publish new rules on underwriting as early as March, Caijing magazine reported yesterday. 'Some investment bankers are up to their eyeballs in work while others are sitting idle,' said Liu Jun, an analyst with Essence Securities. 'The regulator's reform will benefit the industry's long-term growth.' Each qualified underwriter should employ at least four certified investment bankers, up from the current two. The CSRC said it had solicited opinions from the country's main investment banks and hoped to work out an efficient system for the fast-growing primary share market. Of the mainland's 66 brokerages, 27 did not win a contract to manage a share sale last year, data from Shanghai-based Wind Information showed. Bigger brokerages have welcomed the policy change, claiming it will result in a better qualified and regulated industry. The top five underwriters last year managed 61 new share offerings, representing 52.6 per cent of the total. Brokerages are normally granted a full-service licence allowing them to carry out broking, proprietary trading and investment banking. Analysts said small companies would find it hard to take part in capital-intensive investment banking because they could not compete with big names such as Citic Securities.