Interconnection mechanism in Shanghai and Hong Kong stock markets trading pilot regulations

    (June 13, 2014 101th China Securities Regulatory Commission announced come into force on the date of promulgation) first in order to regulate the interconnection mechanism in Shanghai and Hong Kong stock markets trading pilot activities related to protecting the legitimate rights and interests of investors, maintain order in the market, according to the securities law and other relevant laws, administrative regulations, this provision is enacted. Article in Shanghai and Hong Kong stock markets trading connectivity mechanism in these rules (hereinafter referred to as the Shanghai-Hong Kong Tong), refers to the Shanghai Stock Exchange and the stock exchange of Hong Kong Limited (hereinafter referred to as the Hong Kong Stock Exchange) establish a technical connection between the Mainland and Hong Kong investors through local securities companies or brokers the sale of provision within the scope of the other Exchange-listed stocks.

Shanghai Tong including Shanghai Tong Tong and Hong Kong equities in two parts.

Shanghai Tong refers to investors in Hong Kong Hong Kong brokers, securities trading services companies established by the stock exchange of Hong Kong, declared to the Shanghai Stock Exchange, the sale of shares listed on the Shanghai Stock Exchange within a specified range.

    Hong Kong stocks, and refers to mainland investors to entrust mainland securities company, securities trading companies established through the Shanghai Stock Exchange, declare to the Hong Kong stock exchange, trading within the provisions of the Hong Kong-listed shares on the stock exchange.

    Third pass followed Shanghai and Hong Kong markets existing legal regulations of trade settlement, settlement activities comply with trade regulations and business rules, listed companies listed to comply with regulatory requirements and business rules, securities firm or broker to comply with national or regional regulators, regulatory requirements and business rules, except otherwise provided for by this provision.

    Fourth China Securities Regulatory Commission on the supervision and management of the Shanghai-Hong Kong service, and regulatory cooperation arrangement with the Hong Kong Securities and Futures Commission and other relevant State or local securities regulatory authority, in accordance with the principle of fairness, justice, equality, and maintain the legitimate rights and interests of investors to cross-border investments.

Article fifth Shanghai Stock Exchange and Hong Kong stock exchanges in Shanghai and Hong Kong service, shall perform the following duties:

(A) provide the necessary premises and facilities;

(B) on the other side is located the establishment of securities trading service company, to manage its operations, monitor and assist in the performance of their duties under this provision;

(C) the development of Hong Kong and Shanghai through related business rules and self-regulation;

(D) develop securities trading service company in Shanghai and Hong Kong business of technical standards;

(E) on the Shanghai and Hong Kong through real-time monitoring of the transactions, and establishing the appropriate exchange of information and the joint surveillance system for joint monitoring of cross-border acts of unfair trade, preventing market risks;

(F) to manage and publish in Shanghai and Hong Kong through relevant market information;

(VII) other duties stipulated by the CSRC.

    Shanghai Stock Exchange shall, in accordance with the relevant regulatory requirements, develop specific standards for Hong Kong equities investor eligibility management and implementation of the guidelines, and submitted to the China Securities Regulatory Commission for the record.

Sixth securities trading service company shall, in accordance with the stock exchange business rules or related business arrangements through a stock exchange shall perform the following duties:

(A) securities trading service company providing placements through the Shanghai Stock Exchange related services; securities trading on the stock exchange of Hong Kong company provided Shanghai related services;

(B) providing the necessary facilities and technical services;

(C) the implementation of Shanghai or Hong Kong stocks through line management responsibilities;

(D) development of Shanghai Tong or Hong Kong stocks through business operations and risk control measures, strengthening internal control and risk prevention;

(E) securities trading on the Shanghai Stock Exchange companies shall develop technical standards for securities company Hong Kong businesses in the Mainland, and the operations to be carried out by technical systems testing and evaluation; securities trading service company on the Hong Kong stock exchange brokers in Hong Kong and Shanghai shares should be established through technical standards for business and corporate technical systems testing and evaluation to be carried out;

(F) provide technical services for the securities firm or broker, and access them Shanghai Tong or Hong Kong stocks through technical systems operation monitoring;

    (VII) other duties stipulated by the CSRC.

Article seventh China Securities Depository and Clearing Corporation (hereinafter referred to as the China Securities Depository and Clearing Corporation), the Hong Kong Securities Clearing Company Limited (hereinafter referred to as the Hong Kong securities clearing company) Shanghai-Hong Kong service, shall perform the following duties:

(A) provide the necessary premises and facilities;

(B) for the Shanghai-Hong Kong service to provide registration, custody and settlement services;

(C) the development of related business rules;

(D) the law on behalf of holders of service;

(E) the registration and clearing of the Shanghai-Hong Kong service to participate in bodies related self-discipline management activities;

    (Vi) other duties stipulated by the CSRC.

    Article eighth securities company Hong Kong businesses in the Mainland, shall abide by the laws, administrative regulations, the provisions of, the requirements of other provisions of the CSRC and relevant business rules, to strengthen internal control, prevent and control risks, according to the China Securities Regulatory Commission and the Shanghai Stock Exchange investor suitability management regulations, develop implementation plans, and effectively safeguard the interests of customers.

    Nineth due to abnormal situation will severely affect the Shanghai-Hong Kong leads some or all transactions normally, the Shanghai Stock Exchange, the stock exchange of Hong Kong in accordance with business rules and contracts, suspend some or all of the activities related to business in Shanghai and Hong Kong through and make an announcement.

    Article tenth of Shanghai Stock Exchange, the stock exchange of Hong Kong and Shanghai service, limited to the stock trading offers investors within the provisions of services and other services approved by the China Securities Regulatory Commission.

    11th securities trading service company and securities firm or broker shall not set their own investors, through the sale of stock orders turnover of Shanghai and Hong Kong, and shall not engage in any other form in places outside the stock exchange through the transfer of stocks traded in Shanghai and Hong Kong through providing services, except as otherwise provided by the China Securities Regulatory Commission.

Territory of the 12th foreign investor's stock investments should be guided by the following ownership restrictions:

(A) a single foreign investor's stake to a single listed company shall not exceed the total number of shares of listed companies of 10%;

(B) all on a single listed company a-shares for overseas investors stake sum, shall not exceed the total number of shares of the listed company 30%.

Foreign investors in accordance with the strategic investment in listed companies, its strategic investments holding is not subject to such restrictions.

    In relation to laws and regulations and other relevant regulations have stricter rules on ownership ceiling from its provisions.

13th article of investors ' legitimate interests enjoyed by Hong Kong and Shanghai through buying the stock. Mainland pass through Hong Kong equities purchases of shares shall be recorded in the China Securities Depository and Clearing Corporation open a securities account in the Hong Kong securities clearing company. China Securities Depository and Clearing Corporation shall in their own name, exercised through Hong Kong securities clearing company of the issuer of the stock rights.

China Securities Depository and Clearing Corporation exercise of the right of the issuer of the stock should be adopted by domestic securities companies to seek prior views of mainland investors and follow its advice. Issued by the China Securities Depository and Clearing Corporation's shareholder records, is Hong Kong pass investors have the legal proof of the equities.

Mainland investors can request paper stock, except otherwise stipulated by the CSRC. Hong Kong investors, Shanghai through buying shares should be registered with the Hong Kong securities clearing company.

    Hong Kong investors, Shanghai through the sale of shares to meet disclosure requirements, and shall fulfil their reporting and disclosure obligations. Article 14th pass through Hong Kong equities transactions, undertaken by the China Securities Depository and Clearing Corporation stock and financial liabilities of the settlement.

Through the Shanghai pass deals, borne by the Hong Kong securities clearing company liquidation of stocks and funds settlement obligations.

    China Securities Depository and Clearing Corporation and the Hong Kong securities clearing company, shall, in accordance with market principles of settlement risk in relative isolation, passing each other, mutual participation in each other's markets mutual insurance risk funds arrangements; other relevant risk management arrangements should comply with the clearing of the settlement provisions relating to risk management.

    15th investor through the Hong Kong and Shanghai through the sale of shares, be denominated in Renminbi settlement with securities firm or broker.

16th for violations of laws and regulations, to the requirements and relevant regulations of the China Securities Regulatory Commission, China Securities Regulatory Commission to take regulatory measures shall be given administrative punishments according to law, according to the securities law, the administrative punishment law and other laws and regulations for penalties a suspected crime, transferred to the judicial organs according to law, be held criminally responsible.

    The China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission and other relevant State or local securities regulatory authority, through the cross-border supervisory cooperation mechanism, investigate and punish the Shanghai-Hong Kong cross-border illegal activities related to service.

    Article 17th Shanghai Stock Exchange and China Securities Depository and clearing companies in accordance with the relevant requirements of the regulations, developed in Shanghai and Hong Kong through business rules, the China Securities Regulatory Commission for approval.

    18th securities exchanges, securities trading service company and clearing institution shall keep and perform the formation responsibilities under the provisions of the various types of documents and materials, shelf life of not less than 20 years. 19th these provisions come into force on the date of promulgation.