Circular on Promulgating the Interim Measures on the Transaction Settlement of the National Equities Exchange and Quotations during Transitional Period
Circular on Promulgating the Interim Measures on the Transaction Settlement of the National Equities Exchange and Quotations during Transitional Period
Circular on Promulgating the Interim Measures on the Transaction Settlement of the National Equities Exchange and Quotations during Transitional Period
February 8, 2013
All Market Participants,
In accordance with the arrangement of the Circular on Issues concerning the Promulgation and Implementation of the Business Rules for the National Equities Exchange and Quotations (Trial Implementation) (Announcement of Equities Exchange and Quotations [2013] No.2), the transaction settlement system during the original pilots shall be applicable to the national equities exchange and quotations before the completion of the development and test of the transaction settlement technical system. With the approval of the China Securities Regulatory Commission ("CSRC"), the National Equities Exchange and Quotations Co., Ltd. (hereinafter referred to as the "NEEQ") and the China Securities Depository and Clearing Co., Ltd. (hereinafter referred to as the "CSDC") formulate the Interim Measures on the Equities Transfer of the National Equities Exchange and Quotations during the Transitional Period (Appendix 1) and the Interim Measures on the Registration and Clearance of the National Equities Exchange and Quotations during the Transitional Period (Appendix 2) for the rigorous implementation of all the market participants. Where any matters are not provided in the interim measures mentioned above, the Business Rules for the National Equities Exchange and Quotations (Trial Implementation) and any other relevant regulations of the NEEQ and the CSDC shall prevail.
The Circular is given hereby.
Interim Measures on the Equities Transfer of the National Equities Exchange and Quotations during the Transitional Period
Article 1 These Measures shall be applicable to the equities transfer of the listed companies on the National Equities Exchange and Quotations (hereinafter referred to as the "NEEQ").
Article 2 The equities of the listed companies shall be transferred through the NEEQ, unless otherwise regulated by the laws and regulations.
Article 3 The equities of the listed companies shall be transferred from 9:30 to 11:30 am and from 13:00 to 15:00 pm from Monday to Friday, and the transfer shall be suspended on any statutory holidays or under any other special circumstances.
Article 4 The Shenzhen Stock Exchange shall provide the facilities such as the transaction master computer for the NEEQ. The China Securities Depository and Clearing Co., Ltd. (hereinafter referred to as the "CSDC") shall provide the NEEQ with the registration and clearance services.
Article 5 The investors shall have the RMB ordinary equity accounts (including the equities transfer accounts of original non-listed corporation limited, hereinafter referred to as the "Securities Account") on the Shenzhen market of CSDC when they buy and sell the equities of the listed companies.
Article 6 The investors shall sign the commissioning agreements for securities trading with the major securities traders and entrust the major securities traders to handle the buying and selling of the equities of the listed companies. When the investors sell the equities, they shall entrust the major securities traders that they entrust to buy such shares to handle the businesses. Where another major securities trader is necessary to entrust for selling such equities, the procedures for custody transfer of equities must be completed.
Article 7 The trusts of investors include the intentional trust, pricing trust and execution confirmation trust. The trusts shall be effective on that day.
The intentional trusts shall refer to the intentional instructions of which the investors entrust the major securities traders to buy and sell the equities pursuant to their designated prices and quantities, without execution function. The pricing trusts shall refer to the instructions of which the investors entrust the major securities traders to buy and sell the equities pursuant to their designated prices but not exceeding the designated quantities. The execution confirmation trusts shall refer to the instructions of which the investors entrust the major securities traders to confirm the execution with the designated counterparts by designated prices and quantities when the buyers and sellers reach execution agreements or the investors entrust the execution by the pricing trust.
Article 8 The intentional trust, pricing trust and execution confirmation trust may be cancelled provided that the trusts that are confirmed on the NEEQ shall not be cancelled or modified.
Article 9 For the purpose of the intentional trust and pricing trust, the descriptions of equities, equity codes, securities accounts, directions of transaction, transaction prices, transaction quantity and contacts shall be indicated. For the purpose of the execution confirmation trust, the descriptions of equities, equity codes, securities accounts, directions of transaction, execution prices, executed quantity, major securities traders of the counterparts and the conventional numbers shall be indicated.
Article 10 The entrusted equities shall be accounted by "share" and the entrusted equity every time shall be more than 30,000 shares. Where the balance of some equity in the securities account of an investor is less than 30,000 shares, such equity shall be sold in one time.
Article 11 The price unit for the transferred equities shall be "price of every share". The minimum modified unit for the declaration price of the transferred equities shall be RMB 0.01.
Article 12 The major securities traders shall, through the special channels, declare to the NEEQ pursuant to the sequence that accepts the trusts of the investors.
Articles 13 Upon the major securities traders receive the intentional trust of the investors to sell the equities, they shall verify their securities accounts and they shall not declare to the NEEQ if the balances of the equities are not enough. Upon the major securities traders receive the pricing trust and execution confirmation trust of the investors, they shall verify the securities accounts of the sellers and the capital accounts of the buyers, and they shall not declare to the NEEQ if the balances of the equities or the capitals are not enough.
Article 14 The major securities traders shall keep the records and instruments of trusts and declarations in accordance with the relevant regulations.
Article 15 After the investors reach the transfer intention, they may entrust the major securities traders to declare the execution confirmation.
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