Chinese regulators announced they would resume approvals of domestic share IPOs on January 1, 2005 after a four-month suspension. The approval process includes new rules intended to reduce valuations. Under the new terms, sale arrangers will be required to set a price range and then let demand from institutional investors determine the price a system more in tune with more established markets in the West. The China Securities Regulatory Commission (CSRC) used to impose an unofficial price limit of 20 times earnings on first-time share sales. Chinese companies raised about US$5.8bn, in domestic IPOs this year, before the CSRC ordered a suspension on August 30 to draft new rules.