SSE Trading Rules

date:2006-9-25

Chapter I  General Provisions

 

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.

 

Chapter II  Marketplace

 

Section 1  Trading Venue

 

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.

 

Section 2  Trading Instruments

 

2.2.1 The following securities may be listed and traded on the Exchange:

(1)     stocks;

(2)     mutual funds;

(3)     bonds;

(4)     bond repo;

(5)     warrants; and

(6)     other instruments as approved by the CSRC.

 

Section 3  Trading Hours

 

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.

 

Chapter III  Trading of Securities

 

Section 1  General Rules

 

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.