The Trading System of Shanghai Stock Exchange
Trading of listed securities on SSE is conducted through centralized auction over an automated computer system. All orders are placed by open auction via the mainframe computer, which will automatically match orders based on the principle of price and time priority. Orders may be submitted either on-floor or off-floor. Orders sent to the mainframe computer via SSE members' seats on the trading floor of SSE are on-floor orders while those transmitted through terminals at members' front-end facilities and electronic communication systems are off-floor virtual orders. At present, the infrastructure for cross-market trading has also been put in place.

Securities trading on SSE are conducted on an agency basis. All the investors that trade securities on SSE must first appoint a member of SSE as an agent and sign an agreement with the agent to trade and clear securities on their behalf. No trading is allowed before the investor's trading account is registered with the member's trading seat.

Securities are traded on SSE on a market-driven and free auction basis. At present, trading in A Shares, B Shares and securities investment funds are subject to a daily 10% up and down limit, except for the first trading day. Special treatment shares, or ST shares, are subject to a daily 5% up and down limit. The price limits on warrants are based on that of their corresponding underlying securities, and are determined by multiplying the conversion ratio by a certain coefficient. The order price of block trades must be within the range of the highest and lowest transaction prices during the auction period, In the absence of any transaction for a particular stock, the closing price of the previous trading day will be the transaction price.

The SSE makes timely releases of trading data and information to members and investors. Daily real-time market quotations, stock indices, clearing and settlement data, market reports and daily transaction data are transmitted to member's counter terminals via satellite communications system or optical fiber communications system. The transaction data is instantaneously transmitted to each member via a two-way satellite system and optical fiber communications system. Since September 22, 2003, SSE has started to disclose five categories of quotations. Block trade data are published in SSE-designated media and released simultaneously on SSE's website. Apart from that, SSE also discloses more detailed information about the daily top gainers on the securities market in line with disclosure requirements.

Trading Venue
SSE provides the marketplace and facilities for securities trading, which comprise the exchange trading system, trading floor, Participant Business Unit, order routing system and relevant communication systems.

The SSE members are required to input orders through their traders dispatched to the trading floor. Unless specially permitted by the Exchange, only the following persons are admitted to the trading floor:

1. registered traders;
   
2. in-floor supervisors.

Trading Participants and Trading Rights
In order to trade securities on the Exchange, potential members and the institutions approved by the Exchange should apply to the Exchange for relevant seats and the right to trade so as to become the Exchange trading participants. Trading participants conduct securities trading through the Participant Business Unit for which they have applied to the Exchange.

Participant Business Unit refers to a basic unit that allows a trading participant to trade securities on the Exchange, to own and exercise relevant trading rights and to be subject to the administration of the Exchange in respect of relevant trading business.

Detailed rules regarding the administration of Participant Business Unit and relevant trading rights are formulated by the Exchange separately and came into effect upon the approval of the CSRC.

Trading Instruments
The following securities can be listed and traded on the Exchange:

1. stocks;
   
2. mutual funds;
   
3. bonds;
   
4. bond repos;
   
5. warrants; and
   
6. other instruments as approved by the CSRC

Trading Hours
Shanghai Stock Exchange (SSE) is open for trading from Monday to Friday. In the morning session, the market opens with a call auction between 9:15 am and 9:25 am, which is followed by continuous auction between 9:30 am and 11:30 am. In the afternoon session, continuous auction takes place between 13:00 pm to 15:00 pm and then block trading is initiated and accepted between 15:00 am -15:30 am. The market is closed on the weekends and other public holidays as announced by SSE.

With the approval of the CSRC, the Exchange can adjust trading hours in line with the market development. In case of temporary market closure for certain reasons, trading hours will not be extended.

SSE Fee Schedules for Securities Transactions

Item	Category		Fees	Fee Standard	Payer and receiver
Opening accounts	A share	Individual	Account fee	RMB 40 per account	Paid by investors to the depository & clearing company
		Institutional	Account fee	RMB 400 per account	Paid by investors to the depository & clearing company
	Fund		Account fee	RMB 5 per account	Paid by investors to the account-opening agency
Trading	A Share		Commission	≤ 0.3% of the trading value,minimum charge: RMB 5	Paid by investors to securities firms
			Transfer fee	0.1% of the trading value,minimum charge: RMB 1	Paid by investors to the depository & clearing company
			Stamp duty	0.1% of the trading value	Paid by investors to the tax authorities ( collected by SSE )
	Securities investment fund (close-ended fund, ETF)		Commission	0.3% of the trading value, minimum charge: RMB 5	Paid by investors to securities firms