Order Routing of Securities Trading

3.4.1 The Exchange trading system accepts members' auction order routing between 9:15- 9:25, 9:30- 11:30 and 13:00- 15:00 on each trading day.

The Exchange trading system will not accept the cancellation of any auction order during the opening call auction between 9:20- 9:25 on each trading day. During other trading hours, unexecuted orders can be cancelled, effective upon the confirmation by the Exchange trading system.

The Exchange may adjust the sessions for accepting members' order routing as it deems necessary.

3.4.2 A member shall route orders timely to the Exchange trading system in the order of its acceptance of clients' instructions.

3.4.3 The Exchange accepts limit orders and market orders from members.

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

1. Five Best Orders Immediate or Cancel: an order that is executed in sequence against the current five best prices on the opposite side, with the portion of the order not executed, if any, cancelled automatically.
2. Five Best Orders Immediate to Limit: an order that is executed in sequence against the current five best prices on the opposite side, with the portion of the order not executed, if any, changed to a limit order whose limit price is set at the last executed price on the same side. Such order, if not executed, is changed to a limit order with limit price set at the best quotation price on the same side, or, in the absence of any order on the same side, is cancelled.
3. other types of orders as specified by the Exchange.

3.4.5 Market orders apply only to the continuous auction of securities whose prices are subject to a daily price limit, except as otherwise specified by the Exchange.

3.4.6 A limit order shall include such information as securities account number, brokerage branch code, securities code, buy or sell, quantity, price, etc.

A market order shall include such information as order type, securities account number, brokerage branch code, securities code, buy or sell, and quantity.

Orders must be routed in the format as specified by the Exchange. The Exchange may adjust the content and means for order routing as it deems necessary.

3.4.7 Purchases of stocks, mutual funds or warrants in auction trading shall be in a round lot of 100 shares (units) or the multiple thereof.

Sales of stocks, mutual funds or warrants with an odd lot of less than 100 shares (units) shall be made in one order.

3.4.8 During auction trading, an order for bonds shall be placed in one round lot or the multiple thereof, an order for bond collateral repos shall be placed in 100 round lots or the multiple thereof, and an order for buyout repos shall be placed in 1000 round lots or the multiple thereof.

In bond trading and buyout repo trading, a par value of RMB 1000 Yuan is considered one round lot, while in bond collateral repo trading, RMB 1000 Yuan in the standard bonds is considered one round lot.

3.4.9 The maximum quantity of one order for stocks, mutual funds and warrants shall be not more than 1 million shares (units), the maximum quantity of one order for bonds and bond collateral repos shall be not more than 10,000 round lots, and the maximum quantity of one order for buyout repos shall be not more than 50,000 round lots.

The Exchange may adjust the maximum quantity of an order for securities trading in line with market conditions.

3.4.10 The quotation units for different types of securities vary. The quotations for stocks, mutual funds, warrants, bonds, bond collateral repos, and buyout repos refer to price per share, price per fund unit, price per warrant unit, price per RMB 100 Yuan par value, yearly yield-to-maturity per RMB 100 Yuan, and buy-back price at maturity per RMB 100 Yuan par value, respectively.

3.4.11 The tick size of the quotation price of an order for A shares, bond trading, and bond buyout repo trading is RMB 0.01 Yuan and that for mutual funds and warrants is RMB 0.001 Yuan, while that for B shares and bond collateral repo trading are USD 0.001 and RMB 0.005 Yuan respectively.

3.4.12 The Exchange may adjust the maximum quantity of one order and the tick size of a quotation in line with market conditions.

3.4.13 The Exchange imposes the daily price limit on trading of stocks and mutual funds, with a daily price up/down limit of 10% for stocks and mutual funds and a daily price up/down limit of 5% for stocks under special treatment (ST shares or *ST shares).

The price limit is calculated as follows: price limit = previous closing price × (1± price up/down limit percentage) .

The calculation result shall be rounded to the tick size.

The price limit does not apply to any of the following cases on the first trading day:

1. IPO shares or closed-end funds;
2. further issue;
3. shares whose listing is resumed after suspension; or
4. other cases as recognized by the Exchange.

The Exchange may adjust the daily price up/down limit upon the approval of the CSRC.

3.4.14 In the trading of securities that are subject to a daily price limit, an order whose quotation price is within the price limit is valid, otherwise is invalid.

3.4.15 In the trading of securities that are not subject to the daily price limit, a valid order during the call auction session shall meet the following requirements:

1. the quotation price for stocks shall not be higher than 200% or lower than 50% of the previous closing price;
2. the quotation price for mutual funds and bonds shall not be higher than 150% or lower than 70% of the previous closing price.

The quotation price for bond repos is not subject to any restriction during the call auction session.

3.4.16 In the trading of securities that are not subject to the daily price limit, a valid order during the continuous auction session shall meet the following requirements:

1. the quotation price shall not be higher than 110% of the currently available lowest offer price and shall not be lower than 90% of the currently available highest bid price. In addition, the quotation price shall not be higher than 130% and lower than 70% of the average of the foregoing highest and lowest quotation prices;
2. in the absence of any currently available bid price, the currently available lowest offer price or the last executed price, whichever is lower, shall be considered as the foregoing highest bid price;
3. in the absence of any currently available offer price, the currently available highest bid price or the last executed price, whichever is higher, shall be considered as the foregoing lowest offer price.

In the absence of any trade on the current day, the previous closing price is considered as the last executed price.

The Exchange may adjust quotation restrictions in line with market conditions.

3.4.17 An order is only valid on the day of placement. Any portion of an order that is not executed in its entirety at one time continues to line up for the auction of the same day, except as otherwise specified by the Exchange.