Relevant Rules

Trading Rules of Shenzhen Stock Exchange (SZSE Membership Supervision Doc [2016]No. 138,2016-4-28)

Detailed Rules of Shenzhen Stock Exchange for Conducting the Securities Margin Trading and Short Selling (2015-11-13)

 Trading Hours

Open: Monday to Friday.

The market is closed on public holidays and other dates as announced by the Exchange.

Opening call auction:

9:15-9:25

Continuous auction:

9:30-11:30

13:00-14:57

Closing call auction:

14:57-15:00

 Day Price Limit

Up/Down Price Limit = Previous Closing Price × (1 ± Price Limit Ratio)

Price Limit Ratio for Stocks and mutual funds:

10%

Price Limit Ratio for stocks under special treatment (ST shares or *ST shares):

5%

Special Cases:

(1)  IPO;

(2)  listing Resumption after suspension; and

(3)  other cases as recognized by the Exchange or CSRC.

No price limit for the first trading day of stocks.

Market Order Types

The Exchange trading system accepts the following types of market orders in line with market conditions:

(1)  Opposite-side Best Price (an order whose quotation price is set at the best price on the opposite side in the central order book at the time the order is routed into the Exchange’s trading system);

(2)  Same-side Best Price (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);

(3)  Five Best Orders Immediate or Cancel (an order that is executed in sequence against the five best prices available on the opposite side in the central order book at the time the order is routed into the Exchange trading system, with the remaining unexecuted order, if any, cancelled automatically);

(4)  Immediate or Cancel (an order that is executed in sequence against all the orders available on the opposite side in the central order book at the time the order is routed into the Exchange’s trading system, with the remaining unexecuted order, if any, cancelled automatically);

(5)  Fill or Kill (an order that is executed in its entirety against all the orders available on the opposite side in the central order book at the time the order is routed into the Exchange’s trading system, otherwise the entire order shall be cancelled automatically); and

(6)  Other types of orders as specified by the Exchange.

Turn-arounds

T+1 turn-around trades apply to:

B-shares;

T+0 turn-around trades apply to:

(1)  bonds;

(2)  bond ETFs;

(3)  gold ETFs;

(4)  listed money market funds;

(5)  cross-border listed open-end funds (hereinafter, LOFs)*;

(6)  cross-border ETFs*;

*only restricted to the open-end funds that track the index constituents or underlying assets to which intra-day turn-around trades apply.

Auction & Execution

Auction trading of securities is conducted either as a call auction or a continuous auction.

During auction trading of securities, orders are matched and executed based on the principles of price priority and time priority.

The execution price in a call auction shall be 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 a higher bid price and all the sell orders with a lower offer price to be executed;

(3)  the price which allows at least all the buy orders with identical price or all the sell orders with identical price to be executed.

The execution price in a continuous auction shall be determined according to the following principles:

(1)  where the highest bid price is identical to the lowest offer price, such price shall be taken as the execution price;

(2)  where the bid price is higher than the lowest offer price currently available in the central order book, such lowest offer price shall be taken as the execution price;

(3)  where the offer price is lower than the highest bid price currently available in the central order book, such highest bid price shall be taken as the execution price.

 Block Trades Threshold

A large number securities traded on the Exchange can be executed as a block trade if any of the following thresholds is met:

(1)Single A-share trade:

the trading volume≥300,000 shares; or the trading value≥RMB 2 million;

(2)Single B-share trade:

the trading volume≥30,000 shares; or the trading value≥HKD 200,000;

(3)Single mutual fund trade:

the trading volume≥2 million units; or the trading value≥RMB 2 million;

(4)Single bond trade:

the trading volume ≥ 5,000 units; or the trading value ≥ RMB 550,000.

 Block Trade Types

(1)Negotiated Block Trading:

Accept orders during:

09:15 – 11:30, 13:00 – 15:30;

Confirm execution orders during:

For equities: 15:00 – 15:30;

For bonds: 09:15 – 11:30, 13:00 – 15:30;

(2)After-Hours Fixed-Price Block Trading:

Accept orders during:

15:05 – 15:30;

Confirm execution orders during:

15:05 – 15:30.