The much-anticipated new round of reform in the IPO system is accelerating. Meanwhile, the speed of new share issuance has also begun to slow down, with the issue price-earnings ratio declining continuously over the past four months. Besides market depression factors, the reduction in the supply of new shares and the decline in valuation are closely related to the tough shift in regulatory direction by the regulators. Several investment banking sources have indicated that the average industry-wide price-earnings ratio published specially by China Securities Index Co., Ltd. (shortened as "CSI") and Shenzhen Securities Information Co., Ltd. (shortened as "SZSE Information") will become a hard benchmark for future IPO (initial public offering) pricing inquiries. "Although we used to adopt the valuation of already-listed companies in the same industry as a comparison benchmark, it never formed an industry rule. Now it's confirmed that it will be implemented in writing," said a senior investment banking person from a southern securities firm. In February, the weighted average P/E ratio of new shares was less than 20 times. Statistical data shows that entering into 2012, except for January which was affected by holiday factors, calculated according to the start date of online issuance of new shares, there will still be 17 companies issuing stocks for the first time in February. Compared to previous months where more than 30 companies were issued, the issuance has clearly slowed down. With the reduction in issuance speed, the recent issue P/E ratio has also continuously dropped, even though the index rebounded somewhat in February, marking the fourth consecutive month of decline. Companies with high issue P/E ratios have also been decreasing, and the monthly average issue P/E ratio has fallen for four consecutive months. Looking at the monthly average issue P/E ratios since the opening of new shares, starting from the short-term small peak of the average issue P/E ratio in November last year, the issue P/E ratio has been declining ever since. In November 2011, the weighted average issue P/E ratio of new shares was still over 35 times, a small peak since May 2011. Afterwards, it has been continuously declining, falling to 25.78 times in January this year, and less than 20 times in February. In mid-February, although Hualu Baona's issue P/E ratio exceeded 80 times, the issue P/E ratios of other companies were all below 40 times, with over 60% of the companies below 30 times. The issue P/E ratios of China Communications Construction and Dongfeng Shares were both less than 20 times. And from the current data, China Communications Construction also has the lowest issue P/E ratio since the opening of new shares in 2009, at only 10.59 times. The issue price of new shares has also continuously dropped for four months. From the issuance situation of recent months, the number of individual stocks priced below 20 yuan has gradually increased. Except for a few large-cap blue-chip stocks like China Communications Construction issued in February, Rongke Technology of the Growth Enterprise Market was issued at...