According to the Securities Law, securities must be traded on an open, fair and impartial basis and investors should comply with laws, regulations, rules as well as the operational measures of stock exchanges and follow the principle of free will, compensation and good faith in their trading activities. In order to ensure open, fair and impartial trading of securities and efficient and orderly operation of the market, SZSE developed trading rules for centralized trading.

Trading rules are basic infrastructure for the stock exchange to perform the functions of organizing and supervising securities trading. It is crucial for the safety and efficiency of the market. It is also closely related to product and business innovation, changes in investor structure and market behavior, transformation of clearing and settlement systems as well as the development of technical systems and the implementation of technical functions.

SZSE’s trading rules mainly address auction trading, block trading, trading suspension and resumption, information disclosure, risk monitoring and handling of extraordinary trading situations.

Auction trading is a trading model that generates transaction prices through competitive bidding. It includes continuous auction and call auction. Orders are matched and executed based on the principle of price priority and time priority. Opening and closing prices in Shenzhen market are generated through call auction. Continuous auction is conducted during the rest of the trading hours. SZSE accepts limit orders and market orders and imposes a daily price limit on shares and mutual funds.

In order to minimize the impact of block trades on market prices and increase market liquidity, SZSE introduced a negotiated trading system for trades with their volume and amount exceeding a certain threshold. Unlike auction trading, negotiated trading is conducted either on or off the floor by the two parties involved. They determine the volume and price of the trade on a privately negotiated basis while SZSE matches and executes the trade. Block trades in Shenzhen market are executed through SZSE’s integrated platform for negotiated trading. As a trading platform tailor-made for institutions and other professional investors, the integrated platform is able to provide flexible combination of business modules according to market demands and it supports innovations in product and business.

In extraordinary situations which may lead to destabilization of part or all of the trading activities, SZSE will initiate contingency measures to ensure an open and fair trading.