China's securities regulator on Friday unveiled rules regarding information disclosure for preferred stocks, marking another step towards the introduction of the new type of stocks. The China Securities Regulatory Commission (CSRC) said preparing a stock issuance plan and a prospectus are regulatory requirements. Stock issuance plans should contain such information as the amount of preferred stocks to be issued, the price, the yield and the stock buy-back terms, said the CSRC. They should also describe the purpose of the issuance, and summarize opinions of the board of directors on the stock issuance. According to the commission, the prospectus should highlight risk factors and be published on designated websites so that it can help investors make informed decisions. Preferred stocks, along with common stocks are the two primary types of stocks that companies offer to investors. Preferred stock holders have priority rights over common stock holders in relation to distribution of profits and residual assets, but they do not have voting rights. Analysts believe preferred stocks will open up additional financing channels for Chinese companies and provide more investment instruments for investors.