Designated Trading

3.2.1 The Exchange implements a designated trading system for all the securities traded on the Exchange market, except B shares traded by overseas investors.

3.2.2 Under the designated trading system, an investor who trades securities on the Exchange must designate one member in advance as its agent and participate in trading through the designated member.

3.2.3 An investor shall enter into an agreement with a member for designated trading and specify therein the rights, obligations and responsibilities of both parties. Once such agreement is signed, the member shall input the instruction of designated trading into the Exchange trading system based on the application of the investor.

3.2.4 The Exchange accepts designated trading instructions during trading hours. Such instructions become valid immediately after being accepted by the Exchange trading system.

3.2.5 An investor who intends to change its designated member shall file a cancellation application with the designated member, who shall input the instruction of cancellation into the Exchange trading system accordingly. The designated member may not restrict, obstruct or delay the cancellation of designated trading by investors who meet the conditions for the cancellation.

3.2.6 Once the designated trading is cancelled, another member may be designated for re-application for designated trading.

3.2.7 Other matters in respect of designated trading shall be governed by the relevant regulations of the Exchange.