1.1 These Rules are formulated in accordance with such laws as the Securities Law of the People’s Republic of China, bylaws, regulations of competent authorities and the Constitution of Shenzhen Stock Exchange, for the purpose of regulating securities trading practices, maintaining an orderly securities market and protecting the legitimate rights and interests of investors.
1.2 These Rules apply to the trading in securities and derivative products (hereinafter collectively, securities) listed on Shenzhen Stock Exchange (hereinafter, the Exchange).
Those not provided in these Rules are governed by other relevant rules of the Exchange.
1.3 The principle of openness, fairness and equitability shall be observed in the trading of securities.
1.4 Investors shall comply with relevant laws, bylaws, and rules of the Exchange， and adhere to the principle of free will, compensation, honesty and good faith in the trading activities.
1.5 Securities are traded on a dematerialized and centralized basis or by such other means as the China Securities Regulatory Commission (hereinafter, the CSRC) may approve.
2.1.1 The Exchange provides the market place and facilities for securities trading, which comprise the trading system, trading hall, trading seats, order routing system and relevant communication system.
2.1.2 Upon the authorization of the Exchange, Exchange members may route orders to the trading system of the Exchange through their traders dispatched in the trading hall.
Unless permitted by the Exchange, only the following persons are admitted to the trading hall:
(1) registered traders; and
(2) trading floor officers..
2.1.3 The Exchange gives approval to members’ access to trading. The rules thereon are formulated separately and come into effect upon approval of the CSRC.
2.2.1 The following securities may be listed and traded on the Exchange:
(2) mutual funds;
(4) bond repo;
(5) warrants; and
(6) other instruments as approved by the CSRC.
2.3.1 The Exchange is open for trading from Monday to Friday.
The market is closed on public holidays and other dates as announced by the Exchange.
2.3.2 With respect of securities auction, opening call auction is held between 9:15-9:25 on each trading day, followed by continuous trading from 9:30-11:30 and 13:00-14:57. Closing call auction is held between 14:57-15:00.
The Exchange may adjust trading hours with the approval of the CSRC.
2.3.3 In case of trading suspension, trading hours are not extended.
3.1.1 Upon acceptance of a client instruction, the Exchange member shall place order with the Exchange as instructed and bear corresponding trading and settlement obligations.
When orders are successfully executed, the investors shall deliver the relevant securities or pay corresponding cash to the member and the Exchange member shall return the proceeds from its sale of the securities to the investor or deliver the securities purchased.
3.1.2 The Exchange members shall send trading orders to the Exchange through the order routing system and effect trades in accordance with these Rules. Transaction records are returned to the members by the Exchange.
3.1.3 Exchange members shall take good care of client instructions and their own trading orders to the Exchange.
3.1.4 Securities purchased shall not be resold before settlement, except for turnaround trades.
Turnaround trades of securities mean complete or partial resale, after confirmation of trades and before settlement, of any securities purchased.
3.1.5 Turnaround trades of bonds and bond repos are effected on the day of trading, whereas turnaround trades of B-shares are effected on T+1 day.
3.1.6 The Exchange may adopt primary dealer system. The specific rules thereon are formulated separately and come into effect upon the approval of the CSRC.
3.2.1 In order to trade securities, investors shall open securities accounts and cash accounts and sign stock broking agreements with an Exchange member. The client-broker relation is established upon effect of the agreement.
The procedures to open securities accounts are subject to the regulations of the registration and clearing institution designated by the Exchange.
3.2.2 Clients may instruct an Exchange member in writing or by self-help means such as telephone, self-help terminal or Internet to buy or sell securities on their behalf.
Instructions through telephone, self-help terminal or Internet shall follow relevant operation procedures.
3.2.3 Investors seeking to participate in securities trading by self-help means shall sign a self-help trading agreement with an Exchange member.
3.2.4 Unless otherwise specified, a client instruction shall include information on the following:
(1) number of the client’s securities account;
(2) codes of securities to be traded;
(3) buy or sell;
(4) trade quantity;
(5) price; and
(6) other information as required by the Exchange and the Exchange member.
3.2.5 Clients may place a limit order or market order for securities trading.
A limit order is a client’s instruction to his broker to buy a security at a specific price or lower, or to sell at a specific price or higher.
A market order is a client’s instruction to his broker to buy or sell a security at the best price currently available.
3.2.6 Clients may cancel the unexecuted remainder of an instruction.
3.2.7 Exchange members shall return to the clients the cash or securities corresponding to the cancelled or disabled instructions upon confirmation thereof.
3.2.8 Margin trading and short sales services provided to the clients by securities firms are governed by relevant regulations.
Section 3 Order Routing
3.3.1 The Exchange trading system is open to order routing from the Exchange members between 9:15-11:30 and 13:00- 15:00 of each trading day.
The Exchange trading system is closed to orders cancellation during 9:20-9:25 and 14:57-15:00 of each trading day. During the open hours, unexecuted orders can be removed, effective upon confirmation of the Exchange.
During 9:25-9:30 of each trading day, the Exchange is open to orders routing from members, but does not process orders or process cancellation of orders.
The pre-opening call auction session may be adjusted when considered necessary by the Exchange..
3.3.2 Order routing by an Exchange member to the Exchange trading system shall be conducted in order of precedence of acceptance of clients’ instructions.
3.3.3 The Exchange accepts limit orders and market orders from the members.
3.3.4 The Exchange may accept the following types of market orders in line with market needs:
(1) “Counterparty Best Price” order;
(2) “Same Side Best Price” order;
(3) “Five Best Orders Immediate or Cancel” order;
(4) “Immediate or Cancel” order;
(5) “Fill or Kill” order; and
(6) other types of orders as specified by the Exchange.
“Counterparty Best Price” order is the best price quotation based on prices of the opposite side in the order book at the time the order is routed into the Exchange trading system.
“Same Side Best Price” order is an order whose quotation price is set at the best price on the same side in the central order book at the time the order is routed into the Exchange trading system.
“Five Best Orders Immediate or Cancel” order is an unpriced order that is executed in sequence against the five best orders on the opposite side in the central order book at the time the order is routed into the Exchange trading system, with the portion of the unexecuted order, if any, cancelled automatically.
“Immediate or Cancel” order is an unpriced order that is executed in sequence against all the orders on the opposite side in the central order book at the time the order is routed into the Exchange trading system, with the portion of the unexecuted order, if any, cancelled automatically.
“Fill or Kill” order is an unpriced order to be executed in its entirety against all the orders on the opposite side in the central order book at the time the order is routed into the Exchange trading system, otherwise the entire order shall be cancelled automatically.
3.3.5 Market orders apply only to the continuous auction of securities whose prices are subject to a daily price limit. During other trading sessions, the Exchange trading system does not accept market orders.
3.3.6 In case of absence of orders on the same side in the central book order at the time a “Same Side Best Price” order is routed into the Exchange trading system, the order is cancelled automatically.
In case of absence of orders on the opposite side in the central book order at the time an order of any other type is routed into the Exchange trading system, the order is cancelled automatically.
3.3.7 A limit order shall include information on client securities account, securities to be traded, trading seat involved, buy or sell, quantity and price of securities to be traded.
A market order shall include such information as the order type, securities account number, securities code, trading seat involved, buy or sell and quantity of securities to be traded.
Orders must be routed in the format as specified by the Exchange.
3.3.8 Purchase of stocks or mutual funds in auction trading shall be in a board lot of 100 shares (units) or the multiple thereof.
Sales of stocks or mutual fund with less than 100 shares (units) shall be made in one order.
3.3.9 Purchase of bonds in auction trading shall be in a board lot of 10 units or the multiple thereof. Orders for bond collateral repo shall be made in a board lot of 10 units or the multiple thereof.
Sales of bonds with less than 10 units shall be made in one order.
Each bond unit is par valued at RMB 100, while in bond collateral repo, the standard bond par valued at RMB 100 is considered one unit.
3.3.10 Each order to trade in stocks or mutual funds in auction is limited to a maximum volume of one million shares. A ceiling of 100,000 units is imposed on order for bonds and bond collateral repo.
3.3.11 Quotation unit for different instruments varies. Equity quotation refers to price per share. Mutual fund quotation refers to price per unit. Bond quotation refers to price per RMB 100 par value. Bond collateral repo quotation refers to yearly yield-to-maturity per RMB 100 par value.
3.3.12 The tick size of the quotation price of an order for A shares, mutual bonds and bond collateral repo is RMB 0.01 and that for funds and B shares are RMB 0.001 and HKD 0.01, respectively.
3.3.13 The Exchange may adjust the maximum quantity of one order and the tick size of a quotation based on market needs.
3.3.14 The Exchange imposes a daily price limit of 10% on trading of stocks and mutual fund, while stocks under special treatment (ST shares or *ST shares) are subject to a price limit of 5%.
The price limit is calculated as follows: price limit = previous closing price × (1± price limit percentage) .
The calculation result shall be rounded to the tick size.
In any of the following cases, stocks are subject to no price limit on their first trading day:
(1) listing of IPO shares;
(2) listing of new shares;
(3) listing resumption; or
(4) other cases as recognized by the Exchange or the CSRC.
The Exchange may adjust the daily price limit with the approval of the CSRC.
3.3.15 To trade in securities imposed a price limit, orders within the price limit are valid. Those extending the limit are invalid orders. .
In the continuous auction trading of securities that are listed on the SME Board and subject to a daily price limit, a valid order whose quotation price exceeds the current valid price range is not accepted instantly by the Exchange trading system for auction but lined up till when its quotation price falls within the valid price range with the fluctuation of the stock price.
3.3.16 In the trading of securities that are not subject to a daily price limit, an order whose quotation price exceeds the valid price range for the auction is not accepted instantly for auction by the Exchange trading system but lined up till its quotation price falls within the valid price range with the fluctuation of the stock price.
3.3.17 An order is valid on the day of placement. Any portion of a order not executed in its entirety at one time continues to line up for auction within the day of trading, with the exception of market orders as specified in (3), (4) and (5) of Section 3.3.4.
3.4.1 Auction trading of securities is conducted either as a call auction or continuous auction.
The term “call auction” refers to the process of one-time centralized matching of buy and sell orders accepted during a specified period.
The term “continuous auction” refers to the process of continuous matching of buy and sell orders on a one-by-one basis.
3.4.2 The buy or sell orders not executed during the opening call auction automatically enter the continuous trading.
The buy or sell orders not executed during the continuous trading automatically enter the closing call auction.
3.4.3 In the call auction for securities subject to a daily price limit, the valid price range for bid and offer corresponds to the daily price limit.
In the continuous trading for stocks listed on the SME Board, valid price range is restricted within 3% of the last traded price. In case no trade is executed during the opening call auction, the initial valid price range for the continuous auction is adjusted to 3% of the previous closing price. In the continuous trading for other securities subject to a daily price limit, the valid price range corresponds to daily price limit.
The calculation results of valid price range for auction are rounded to the tick size.
3.4.4 In the auction of securities subject to no daily price limit, the valid price range is determined as follows:
(1) for stocks on their first day of trading, the valid price range for the opening call auction is within 900% of the issue price and that for the continuous auction and closing call auction is 10% of the last traded price;
(2) for bonds on their first day of trading, the valid price range for the opening call auction is within 30% of the issue price and that for the continuous auction and closing call auction shall be 10% of the last traded price. On other trading days, the valid price range for the opening call auction is within 10% of the previous closing price and that for the continuous auction and closing call auction is 10% of the last traded price;
(3) for bond collateral repo on a trading day other than the first, the valid price range for the opening call auction is within 100% of the previous closing price and that for the continuous auction and closing call auction is 100% of the last traded price.
3.4.5 In case no trade is executed during the opening call auction for securities that are subject to no daily price limit, the initial valid price range for the continuous trading is adjusted as follows:
(1) where the highest bid price within the valid price range is higher than the issue price or previous closing price, the valid price range is adjusted based on the highest bid price;
(2) where the lowest offer price within the valid price range is lower than the issue price or previous closing price, the valid price range is adjusted based on the lowest offer price.
3.4.6 The Exchange may adjust the valid price range for securities auctions based on market needs.
3.5.1 Orders in auction trading of securities are matched and executed based on the principle of price-time priority.
The principle of price priority: priority is given to a higher buy order over a lower buy order and a lower sell order is prioritized over a higher sell order.
The principle of time priority: The sequence of orders determines the priority of trading for aligned orders of same prices. The sequence of orders is based on when the Exchange trading system receives the orders.
3.5.2 The execution price in a call auction is determined according to the following principles:
(1) the price that generates the greatest trading volume;
(2) the price which allows all the buy orders with higher bid price and all the sell orders with lower offer price to be executed;
(3) the price which allows either buy side or sell side to have all the orders identical to such price to be executed.
In case there is more than one such price, the price that is closest to the previous closing price is taken as the execution price.
All the trades in a call auction are executed at a single price.
3.5.3 The execution price in a continuous trading is determined according to the following principles:
(1) where the highest bid price matches the lowest offer price, the deal is concluded at such price;
(2) where the bid price is higher than the lowest offer price currently available in the central order book, the deal is concluded at the lowest offer price;
(3) where the offer price is lower than the highest bid price currently available in the central order book, the deal is concluded at the highest bid price.
3.5.4 A trade is concluded after the orders are matched and executed by the Exchange trading system. A trade transacted under these Rules is effective as from its conclusion. Both the buyer and the seller shall accept the trading results and perform their obligations of clearing and settlement.
In case trading activities result in serious disorder due to force majeure, unexpected events or unauthorized access to the Exchange trading system, the Exchange is entitled to take appropriate measures in this regard or take such trades as null and void.
In case a trade is obviously unfair, the Exchange may react to it in appropriate manner, when considered necessary.
In case a trade contravenes these Rules and seriously disrupts an orderly securities market, the Exchange is entitled to declare cancellation of such trades. The loss incurred shall be borne by the trader committing relevant contravention.
3.5.5 The execution data recorded in the Exchange trading system shall be taken as the standard to determine the result of trades executed under these Rules.
3.5.6 Clearing and settlement between different Exchange members shall be handled by the registration and clearing institution designated by the Exchange.
3.6.1 Trades on the Exchange may be executed as block trades, subject to the following criteria:
(1) trade in A-shares with either the volume or the value exceeding 500,000 shares or RMB 3 million, respectively;
(2) trade in B-shares with either the volume or the value exceeding 50,000 shares or HK$ 300,000, respectively;
(3) trade in mutual funds with either the volume or the value exceeding 3 million units or RMB 3 million, respectively;
(4) trade in bonds with either the volume or the value exceeding 10,000 units (par valued at RMB 100 per unit) or RMB 1 million, respectively;
(5) trade in bond collateral repo with either the volume ( par valued at RMB 100 per unit ) or the value exceeding 10,000 units or RMB 1 million, respectively;
(6) trade in more than one A-share issues with either the buy order or the sell order exceeding RMB 500 million in value, while the traded volume in one single issue exceeding 200,000 shares;
(7) the traded value of a buy order or sell order for multiple mutual fund issues is no less than RMB 5 million, with the trading volume of each single mutual fund issue no less than 1 million units; or
(8) the aggregate traded value of multiple bond issues by an investor in either buy or sell is no less than RMB 5 million, and volume of each bond product no less than 15,000 units.
The Exchange may adjust the minimum criteria on block trades based on market needs.
3.6.2 The Exchange system is open to block trade orders during 9:15-11:30 and 13:00-15:30 on each trading day.
3.6.3 Block trade orders are classified into intent orders and execution orders.
An intent order shall include such information as the clients’ securities account number, the code of securities to be traded, buy or sell and trading seat involved. The member that places an intent order may, at its discretion, specify the price and volume.
An execution order shall include information on client securities account, securities to be traded, buy or sell, trading volume, and trading seat of the counterparty.
3.6.4 The execution price of a block trade of securities that are subject to a daily price limit shall be determined by the buyer and seller within the price limit applicable to such securities on the day of trading.
The execution price of a block trade of securities which are subject to no daily price limit is negotiated between the buyer and seller within 30% of the previous closing price or between the highest and the lowest prices of the securities on the day of trading.
3.6.5 Upon reaching an agreement on a block trade, the buyer and the seller shall input execution orders into the Exchange trading system, with execution prices and trading volumes coordinated on both parties.
3.6.6 The Exchange trading system confirms execution orders from the buyer and the seller on each trading day during 15:00 to15:30.
Any execution order, once confirmed by the Exchange, shall not be modified or cancelled and the results shall be accepted as definitive.
3.6.7 An Exchange member shall ensure that block trade participants have the securities or capital corresponding to the intent order or execution order.
3.6.8 Block trades are not included in the Exchange’s real-time quotations and index calculation. At the close of block trades, the trading volume is added to the total volume of relevant securities on the day of trading.
3.6.9 At the close of block trades on each trading day, the Exchange will publicize such information on the transactions as the securities traded, traded volume, traded prices, and brokerage departments and trading seats involved.
3.7.1 Bond repo may be in the form of collateral repo or in other trading forms.
3.7.2 Bond collateral repo refers to a bond repurchase agreement whereby at the time the bond holder pledges its bonds as collateral in exchange for a cash loan equivalent to the standard bonds converted from such bonds at a conversion ratio, the two parties agree to return the cash and release the bonds pledged as collateral upon expiry of the term of the repo.
3.7.3 The term of bond repo is based on calendar days. In case the date of expiry coincides with a non-trading day, settlement is carried out on the following trading day.
4.1.1 Investors may trade in securities at different securities brokerage departments with one single securities account.
4.1.2 Investors may resell securities at the brokerage department through which they have bought such securities. They may also give a custody conversion instruction to the brokerage department and, upon completion of custody conversion, resell the securities through a new brokerage department.
The specific rules on custody conversion are formulated by the registration and clearing institution designated by the Exchange.
4.2.1 The opening price of a security on a trading day is the first execution price of such a security on that day.
4.2.2 The opening price of a security is generated from a call auction. In case no opening price is generated at a call auction, the opening price will be generated from the continuous auction.
4.2.3 The closing price of a security is generated from a call auction. In case no closing price is generated from the closing call auction, the trading volume-weighted average price of all the trades of the security one minute before the last trade (including the last trade) on that day is taken as the closing price.
In the absence of trades on a trading day, the previous closing price is taken as the closing price of that day.
4.3.1 Securities are traded after listing on the Exchange.
4.3.2 Upon expiry of the listing term of a security or when a security no longer meets the listing criteria, the Exchange will terminate its listing and delist it from quotations.
4.3.3 In case of unusual movement in the trading of stocks and open-end funds as enumerated in Section 5.4.3 of these Rules, the Exchange will suspend trading in relevant securities until 10:30 on the date on which the party with disclosure obligation makes a relevant announcement on the stocks involved. In case an announcement coincides with a non-trading day, trading in relevant security resumes as the market opens on the first trading day following the date of the announcement.
4.3.4 In case of unusual movement in the trading of securities as enumerated in Section 6.1 of these Rules, the Exchange may, in accordance with specific circumstances, suspend trading in relevant securities and make an announcement along with data on the trading and shareholding status. The party with discourse obligation shall make timely disclosure as required by the Exchange.
The timing of trade suspension and resumption is at the discretion of the exchange.
4.3.5 The quotations disseminated by the Exchange cover the securities suspended from trading but exclude the securities delisted from the Exchange.
4.3.6 In case of an intra-day trade suspension, the orders accepted in the order book continue to effect when trade resumes. In the course of the trade suspension, orders may be placed or cancelled. Upon trade resumption, all the accepted orders are valid for a call auction, but the reference price, matched volume and unmatched volume of the call auction are not disclosed. After an opening price is generated from the call auction, trading continues on a continuous auction basis.
4.3.7 The Exchange makes announcements on the listing, delisting, trade suspension and trade resumption of securities.
4.3.8 Other matters and events in relation to the listing and delisting of securities and trade suspension and resumption are governed by the listing rules and other rules of the Exchange.
4.4.1 In case of interest distribution, transfer of capital surplus into share capital and pro rata issues, the Exchange makes ex-right and ex-dividend adjustment to relevant securities on the trading day after the interest record date (or the last trading day in case of B-shares), save as otherwise provided for by the Exchange.
4.4.2 The ex-right (ex-dividend) reference price is calculated as follows:
ex-right (ex-dividend) reference price ＝ [(previous closing price − cash dividend) + rights issue (new share) price × percentage of change in free-float shares ] ÷ (1+ percentage of change in free-float shares)
The securities issuer may file an application with the Exchange for adjustment of the calculation formula and state the reason therefor when it deems such adjustment is necessary. The Exchange may adjust such calculation formula based on the reasons stated and publish any adjustment thereof.
The previous closing price as displayed in the real-time quotations on the ex-right (ex-dividend) date shall be the ex-right (ex-dividend) reference price.
4.4.3 Unless otherwise prescribed by the Exchange, on the ex-right (ex-dividend) date, the ex-right (ex-dividend) reference price is used as the basis for calculation of daily price limit.
5.1.1 The Exchange disseminates real-time quotations, indexes, public information and other trading information in respect of trading of securities on each trading day.
5.1.2 The Exchange timely works out daily, weekly, monthly and yearly reports and releases the same on the website of the Exchange or other media.
5.1.3 The trading information of the Exchange vests in the Exchange and shall not be used or disseminated by other entities or individuals without the permission of the Exchange.
The authorized entity or individual to use the said trading information shall not provide such information to other entity or individual or disseminate such information without the consent of the Exchange.
The specific rules governing the administration of the securities trading information are formulated by the Exchange separately.
5.2.1 The real-time quotations during the call auction include securities code, securities short name, call auction reference price, matched volume and unmatched volume.
5.2.2 The real-time quotations during continuous auction include securities code, securities short name, previous closing price, last traded price, the highest and lowest price of each security, accumulated trading volume and trading value, the top five real-time bid prices and quantities, and the top five real-time low offer and quantities.
5.2.3 On the first trading day of IPO shares and bonds, the previous closing price displayed in the real-time quotations refers to their issue prices, while for the mutual funds, the previous closing price refers to the net value per unit on the previous day (rounded to RMB 0.001).
5.2.4 The real-time quotations are transmitted via the communication system designated by the Exchange. Exchange members shall use the real-time quotations for authorized purposes.
5.2.5 The Exchange may adjust the dissemination means and contents of real-time quotations.
5.3.1 The Exchange compiles composite stock price index, sub-index, sector index and other securities indexes to track price movement of securities or that of a particular type of securities, and disseminates the same along with the real-time quotations.
5.3.2 The methods of launch and compilation of securities indexes are formulated by the Exchange separately.
5.4.1 In case any of the following occurs to trading in stocks or open-end funds that are subject to a daily price limit, the Exchange will disclose the names of the top five stock brokerage departments or seat numbers of the member firms in terms of intra-day purchase and sales value of relevant securities, and their respective traded value:
(1) the top three securities whose closing price deviation reaches 7%;
the closing price deviation is calculated as follows:
closing price deviation = change in price of a single stock or fund – change in corresponding sector index
(2) top three securities whose intra-day price volatility reaches 15 %;
the price volatility is calculated as follows:
price volatility = (intra-day highest price – intra-day lowest price) / intra-day lowest price × 100%
(3) top three securities whose turnover rate reaches 20%;
the turnover rate is calculated as follows:
turnover rate = trading volume / free-float volume × 100%
In case closing price deviation, price volatility or turnover rate are identical, trading value and trading volume are considered in sequence.
A-shares (exclusive of SME Board stocks), SME Board stocks, B-shares and open-end funds are tracked respectively by SSE A-share Index, SSE SME Composite Index, SSE B-share Index and SSE Fund Index.
5.4.2 With respect to the stocks that are subject to no daily price limit as enumerated in Section 3.3.14, the Exchange will disclose the names of the top five stock brokerage departments or seat numbers of the member firms in terms of intra-day purchase value and sale value of such stocks, and their respective traded value.
5.4.3 Any of the following circumstances during auction trading of stocks or open-end funds is deemed as abnormal. Under any of such circumstances, the Exchange will disclose the names of the top five stock brokerage departments or seat number of the member firms in terms of total purchase value and sale value of relevant securities during the abnormal period, and their respective traded value:
(1) the accumulated closing price deviation in three consecutive trading days reaches 20%;
(2) the accumulated closing price deviation of ST stocks or *ST stocks in three consecutive trading days reaches 15%;
(3) the average daily turnover rate of three consecutive trading days reaches 30 times that of the previous 5 consecutive trading days, and the accumulated turnover rate of the relevant stocks or mutual funds in the same period reaches 20%; or
(4) other circumstances deemed as abnormal by the Exchange or the CSRC.
The indicators of unusual movement are recalculated as from the date of trade resumption.
The stocks that are subject to no daily price limit as enumerated in Section 3.3.14 are excluded from calculation of unusual movement.
5.4.4 Where the public information on securities trading involves institutional special seats, it is put under the name of “Institutional Special”.
6.1 The Exchange exercises intense monitoring on the following unusual trading practices that may affect the price or volume of securities:
(1) large purchase or sales of securities before disclosure of any information that may significantly affect the trading price of the relevant securities;
(2) large or frequent trades between the securities accounts opened with the same identity certificate, business license or other valid certificate;
(3) large or frequent trades between the securities accounts through which the same institution or individual conducts trading on behalf of others as instructed or authorized;
(4) large or frequent trades between two or more fixed securities accounts or suspected associated securities accounts;
(5) huge orders, successive orders or concentrated orders for the purpose of affecting the trading price of securities;
(6) frequent placement or cancellation of orders for the purpose of affecting the trading price of securities or the investment decision-making of other investors;
(7) enormous order whose quotation price clearly deviates from the recent execution price;
(8) large and successive orders during a certain period;
(9) large or frequent turnaround trades at the same or similar price;
(10) large or frequent “buy high, sell low” trades;
(11) trades are conducted by anyone contrary to the investment analysis, forecast or advice released by itself;
(12) false orders or other orders in block trades that disrupt the orderly market; and
(13) other unusual trading practices as recognized by the Exchange that need to be put under intense monitoring.
6.2 Where an Exchange member discovers its clients involved in any of the unusual trading practices as enumerated in Section 6.1 and believes such practice may lead to market disorder, it shall alert the relevant clients of the issue and report to the Exchange in a timely manner.
6.3 In case the occurrence of any of the unusual trading practices as enumerated in Section 6.1 has serious effect on the trading price or trading volume of securities, the Exchange may conduct site inspection or non-site inspection and require relevant member firms and the involved brokerage departments to provide such information on the relevant clients like the power of attorney, cash deposit and withdrawal records, deposit balance and a statement of relevant trades. The Exchange may also directly require relevant investors to provide such information.
6.4 Exchange members, their brokerage departments and investors shall coordinate with the Exchange in its inspection and provide relevant documents and information timely, truthfully, accurately and completely.
6.5 In severe cases of unusual trading practices, the Exchange may take the following measures in accordance with specific circumstances:
(1) oral or written warning;
(2) arranging for a talk;
(3) a written commitment required ;
(4) restricted trading through relevant securities accounts:
(5) applying to the CSRC for freezing relevant securities accounts or cash accounts; and
(6) proposal filed with the CSRC to take investigation and enforcement.
Any institution or individual objecting to the foregoing measure (4) may apply to the Exchange for a review within 15 days from the date of receiving the above notice of enforcement. The enforcement will not be suspended during the review period.
7.1 In case the occurrence of any of the following abnormal situations disables part or all of the trading activities, the Exchange may decide on technical suspension or temporary closure of the market:
(1) force majeure;
(2) unexpected event;
(3) technical failure; or
(4) other abnormal situations as recognized by the Exchange.
7.2 In abnormal situations where orders can not be placed on more than 10% of the seats or quotation transmission is interrupted at more than 10% of the stock brokerage departments, the Exchange may effect temporary closure of the market.
7.3 Where the Exchange believes that any of the abnormal situations as enumerated in Section 7.1 or Section 7.2 is likely to occur and such situation may have serious effect on the market, the Exchange may decide on technical suspension or temporary closure of the market.
7.4 The Exchange shall make an announcement of the technical suspension or temporary market closure.
7.5 The Exchange may resume trading after the cause of the technical suspension or temporary market closure clears off.
7.6 Except for special situations recognized by the Exchange, the orders already accepted by the Exchange trading system prior to a technical suspension or temporary market closure are valid on the day of acceptance. The Exchange trading system continues to accept orders during the period of technical suspension or temporary market closure and a call auction will be conducted to process all the orders received after trading resumes.
7.7 The Exchange is not liable for any losses arising from technical suspension or temporary market closure resulted from abnormal situations.
8.1 In case trading disputes arise between different Exchange members or between Exchange members and their clients, the members involved shall record the particulars of the disputes for inspection by the Exchange. In case the trading disputes affect the normal trading, the Exchange members shall report to the Exchange in a timely manner.
8.2 In case of trading disputes between different Exchange members or between Exchange members and their clients, the Exchange may provide necessary trading data pursuant to relevant regulations to help solve the disputes.
8.3 Exchange members are under a duty to settle the disputes about trading activities with their clients.
9.1 Investors shall pay commissions to Exchange members for executed transactions pursuant to relevant regulations.
9.2 The Exchange collect from its members levies for trading seats, membership, trading and others.
9.3 The levy items, standards and administration of securities trading are governed by relevant regulations.
10.1 Where any Exchange member violates these Rules, the Exchange will require rectification and may, depending on seriousness of the circumstances, impose one or several of the following penalties:
(1) public notice of criticism;
(2) public censure;
(3) securities trading suspended or restricted;
(4) trading qualification revoked; and
(5) membership revoked.
10.2 Members not satisfied with the foregoing disciplinary sanctions in (2), (3), (4) and (5) may ask for a review within 15 days from the date of receiving the notice of disciplinary sanction. Enforcement of the relevant disciplinary penalties shall not be suspended during the review period.
11.1 In respect of trading in securities including exchange traded funds, bond repo and warrants, and where there are specific rules of the Exchange that govern such activities, those provisions shall prevail.
11.2 The time prescribed in these Rules refers to that followed by the Exchange trading system.
11.3 The following terms in these Rules are interpreted as below:
(1) Market: the securities trading market established by the Exchange.
(2) Trading Seat: special facility provided by the Exchange for participation in securities trading on the Exchange and can be obtained by an Exchange member through application.
(3) Instruction: an order given by an investor to an Exchange member to buy or sell securities.
(4) Order Routing: the behavior that an Exchange member inputs a securities trading
order to the Exchange trading system.
(5) Standard Bonds: virtual bonds converted from different types of bonds at the corresponding conversion ratio to determine the amount of funds to be borrowed through collateral repo.
(6) Central Order book: all the unexecuted valid buy or sell orders lined up in the Exchange trading system at a certain time point based on price/time priority.
Opposite side (same side) best price refers to the buyer’s highest bid price or the
seller’s lowest offer price in the central order book.
(7) Reference Prices for Call Auction: the virtual execution prices disclosed during call auction generated under relevant rules by all the orders in the central order book.
(8) Matched Volume: the virtually executed volume generated under call auction rules by all the orders in the central order book.
(9) Unmatched Volume: the remainder of buy or sell orders in the central order book that can not be executed at the call auction reference price under call auction rules.
11.4 The terms not defined in these Rules are interpreted as in the applicable laws, administrative regulations and the relevant rules of the Exchange.
11.5 The terms “more than”, “exceed”, “lower than” and “less than” in these Rules do not include the given figures, whereas the term “reach” includes the given figures.
11.6 These Rules come into force at the authorization of the board of the Exchange and approval of the CSRC. The same procedures apply to any alteration hereof.
11.7 The power to interpret these Rules remains with the Exchange.
11.8 These Rules come into effect as of July 1, 2006.