Trading Rules of Shenzhen Stock Exchange (Revised in November 2013)
Trading Rules of Shenzhen Stock Exchange (Revised in November 2013)
Trading Rules of Shenzhen Stock Exchange (Revised in November 2013)
November 30, 2013
(Effective as of November 30, 2001, firstly revised on May 15, 2006, secondly on January 17, 2011, thirdly on November 30, 2012, fourthly on July 29, 2013 and hereby revised in accordance with the Decision on Revising
Article 3.1.4 of the Trading Rules of Shenzhen Stock Exchange (Revised in 2013) promulgated on November 30, 2013)
Contents
Chapter I General Provisions
Chapter II Trading Market
Section 1 Trading Places
Section 2 Trading Participants
Section 3 Trading Varieties and Methods
Section 4 Trading Hours
Chapter III Purchases and Sales of Securities
Section 1 General Provisions
Section 2 Entrustment
Section 3 Declaration
Section 4 Auctions
Section 5 Conclusion of Transactions
Section 6 Block Trades
Section 7 Securities Margin Trading
Section 8 Transactions of Bond Repurchases
Chapter IV Other Trading Matters
Section 1 Custody Transfer
Section 2 Opening Price and Closing Price
Section 3 Listing, Delisting, Suspension and Resumption of Trading
Section 4 Ex-right and Ex-dividend
Section 5 Trading Matters in Delisting Rectification Period
Chapter V Trading Information
Section 1 General Provisions
Section 2 Real-time Market Information
Section 3 Securities Indices
Section 4 Public Information on Securities Trading
Chapter VI Supervision over Securities Transactions
Chapter VII Handling Abnormal Situations in Trading
Chapter VIII Disputes
Chapter IX Charges for Transactions
Chapter X Supplementary Provisions
Chapter I General Provisions
1.1 The Trading Rules of Shenzhen Stock Exchange (hereinafter referred to as the "Rules") are formulated in accordance with laws, administrative regulations, departmental rules, regulatory documents such as the Securities Law of the People's Republic of China, and the Administrative Measures for Stock Exchanges, as well as the Articles of Association of Shenzhen Stock Exchange for the purpose of regulating the transactions in securities markets, maintaining orders of securities markets and protecting the lawful rights and interests of investors.
1.2 Transactions in respect of securities and their derivatives (hereinafter collectively referred to as "securities") listed in Shenzhen Stock Exchange (hereinafter referred to as the "Exchange") shall be governed by the Rules.
Any matter that has not been specified herein shall be governed by other relevant provisions of the Exchange.
1.3 The principles of openness, fairness and equity shall be observed during securities transactions.
1.4 Transactions by investors shall be governed by the laws, administrative regulations, departmental rules, regulatory documents and relevant business operational rules of the Exchange, as well as the principles of free will, compensation and good faith.
1.5 Centralized paperless transactions and other methods, as approved by China Securities Regulatory Commission (hereinafter referred to as "CSRC"), shall be adopted for securities transactions.
Chapter II Trading Market
Section 1 Trading Places
2.1.1 The Exchange shall provide trading places and facilities for securities transactions. The trading places and facilities will include the exchange server, trading hall, trading booth, offering system and relevant communications systems.
Section 2 Trading Participants
2.2.1 Where the members intend to enter into the Exchange for securities trading, they shall submit application to the Exchange for trading competence and to be the trading participants.
The trading participants shall conduct the securities trading at the unit opened with the Exchange subject to application.
2.2.2 The trading booth refers to the basic business unit to be established upon the application with the Exchange by trading applicants for the purpose of participating in the securities trading on the Exchange and accepting the supervision and service of the Exchange.
2.2.3 The specific provisions on trading booth and trading competence shall be prescribed separately by the Exchange.
Section 3 Trading Varieties and Methods
2.3.1 The varieties to be listed for trading in the Exchange shall include:
1. stocks;
2. funds;
3. bonds;
4. warrants; and
5. other trading varieties as approved by CSRC.
2.3.2 The methods of securities trading shall include:
1. spot bond trading;
2. repurchase trading;
3. securities margin trading;
4. other trading methods as approved by CSRC.
Section 4 Trading Hours
2.4.1 The trading days of the Exchange are from Monday to Friday every week.
The Exchange shallbe closed on statutory holidays of the State and rest days as announced by the Exchange.
2.4.2 When securities are traded by way of auction trading, 9:15 AM to 9:25 AM every trading day shall be the time for the aggregate auction of opening quotation; 9:30 AM to 11:30 AM as well as 1:00 PM to 2:57 PM shall be the time for continuous auction; and 2:57 PM to 3:00 PM shall be the time for the aggregate auction of closing quotation.Upon approval of CSRC, the Exchange may adjust the trading hours.
2.4.3 If trading is suspended due to any reason within the trading hours, the trading hours will not be postponed.
Chapter III Purchases and Sales of Securities
Section 1 General Provisions
3.1.1 Any member, after accepting the entrusted purchases and sales from an investor, shall verify that the investor possesses corresponding securities or funds,declare to the Exchange, in accordance with the entrustment, and assume corresponding liabilities for trading and delivery.
If a member accepts the entrusted purchases and sales from an investor and the transaction is concluded, the investor shall deliver the member with the securities it/he entrusts the member to sell out or the money by which it/he entrusts the member to buy securities, and the member shall deliver the investor with the money incurred from the sales of securities or the securities as purchased.
3.1.2 A member shall send out declaration orders about purchases or sales to the exchange server of the Exchange through the offering system, and conclude the transaction in accordance with the Rules, and the trading records shall be sent to the member by the Exchange.
3.1.3 A member shall properly keep the entrustment and declaration records, in accordance with relevant provisions.
3.1.4 The securities purchased by any investor shall not be sold out before the delivery thereof unless a turnaround transaction is effected.
Securities turnaround transaction refers to a complete or partial resale of any securities purchased by an investor after the confirmation of execution but before the accomplishment of delivery thereof.
Turnaround transactions for bonds and bond exchange-traded open-ended index securities investment funds, gold exchange-traded open-ended securities investment funds, and money market funds listed for trading in auction trading are effected on the day of trading, whereas turnaround transactions are for B-shares are effected from the next trading day.
Upon approval by CSRC, the Exchange may adjust the varieties of securities, for which turnaround transactions are effected, and the means of turnaround transactions.
3.1.5 The Exchange may implement the system of primary dealers, in light of the demands of the market, and specific provisions shall be formulated separately by the Exchange and shall take effect after having been reported to and approved by CSRC.
Section 2 Entrustment
3.2.1 In order to buy or sell the securities, an investor shall open a securities account and a capital account in realname, and conclude an entrustment agreement on securities transactions with a member. After the agreement takes effect, the investor will become a client of the member.
The opening of securities accounts by investors shall be handled in accordance with the provisions of the registration and clearing institutions, as designated by the Exchange.
3.2.2 An investor may entrust a member to buy or sell the securities via entrustment in writing, by phone calls, self-service terminals, the Internet and other self-service entrustment methods.
Where an investor conducts the securities trading via the self-service entrustment, the member shall conclude a self-service entrustment agreement with the investor.
3.2.3 Where investors conduct the entrustment by phone calls, self-service terminals and the Internet, they shall comply with relevant provisions .
The member shall record, among others, the phone number, network card address and IP address entrusted by investors.
3.2.4 Unless it is otherwise stipulated by the Exchange, an entrustment instruction of any investor shall include:
1. the number of the securities account;
2. code of the securities;
3. direction of the deal;
4. quantity;
5. price; and
6. other contents as required by the Exchange and the member.
3.2.5 An investor may entrust a member to buy or sell securities by way of limit order or market order.
"Limit order" means the investor entrusts a member to buy or sell securities at the prescribed price, and the member shall apply to purchase the securities at the prescribed price, or at a lower price, or apply to sell the securities at the prescribed price, or at a higher price.
"Market order" means that the investor entrusts a member to buy or sell the securities at the market price.
3.2.6 An investor may cancel the incomplete transaction, as entrusted.
3.2.7 When an entrustment is cancelled or invalidated, the member shall, after confirmation, return the corresponding capital or securities to the investor.
Section 3 Declaration
3.3.1 The Exchange will accept the declarations of auction trading by members from 9:15 AM to 11:30 AM, as well as 1:00 PM to 3:00 PM, every trading day.
From 9:20 AM to 9:25 AM and from 2:57 PM to 3:00 PM every trading day, the exchange server of the Exchange will not accept declarations for the cancellation of auction trading, and the incomplete transactions can be cancelled at any other time for declarations.
From 9:25 AM to 9:30 AM every trading day, the exchange server will only accept declarations, and it will not handle purchases and sales declarations or declarations for cancellation.
The Exchange can adjust the time for accepting members' declarations.
3.3.2 A member shall make timely declarations to the Exchange in light of the order by which he/she/it accepts the entrustments of his/her/its investors.
A declaration for purchase and sale and a declaration for cancellation will not become valid until they are confirmed by the exchange server of the Exchange.
3.3.3 The Exchange will accept members' limit orders and market orders.
3.3.4 The Exchange may, in accordance with the demands of the market, accept the following types of market orders:
1. declaration by the best price of the counterparty;
2. declaration by the best price of this side;
3. declaration by the conclusion of transactions at the best five prices and in real time and the cancellation of remaining orders;
4. declaration by the conclusion of transactions in real time and the cancellation of remaining orders;
5. declaration by the conclusion of transactions in full amount or the cancellation of orders; and
6. other types as prescribed by the Exchange.
In the event of a declaration by the best price of the counterparty, the best price of the counterparty listed in the book of centralized orders, when the declaration enters the exchange server, shall be the declared price.
In the event of a declaration by the best price of this side, the best price of this side listed in the book of centralized orders, when the declaration enters the exchange server, shall be the declared price.
In the event of a declaration by the conclusion of transactions at the best five prices and in real time and the cancellation of remaining orders, with the price of the counterpartyas the transaction price, the transactions shall be concluded in turn, in accordance with the declaration queue of the best five prices of the counterparty, in the book of centralized orders, when the declaration enters the exchange server, and the incomplete part of the transactions shall automatically be cancelled.
In the event of a declaration by the conclusion of transactions in real time and the cancellation of orders, with the price of the counterpartyas the transaction price, the transactions shall be concluded in turn, in accordance with the queue of all the declarations of the counterparty, in the book of centralized orders, when the declaration enters the exchange server, and the incomplete part of the transactions shall automatically be cancelled.
In the event of a declaration by the conclusion of transactions in full amount or the cancellation of orders, with the price of the counterpartyas the transaction price, if all the transactions can be concluded in turn, in accordance with the queue of all the declarations of the counterparty, in the book of centralized orders, when the declaration enters the exchange server, the transactions shall be concluded in turn; otherwise, all the declarations shall automatically be cancelled.
3.3.5 Market orders shall only apply to transactions of the securities with the price limit during the course of continuous auction.
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