Article 40 A stock exchange should formulate specific rules for membership administration. Their contents shall include:

1. terms and procedures for the acquisition of membership;
2. measures for the administration of seats;
3. requirements for membership internal supervision, risk control, standards for the computer systems and their maintenance relating to securities trading and the settlement business;
4. business reporting system of members;
5. code of conduct of listing representatives sent by members on the trading floor;
6. penalty of acts in violation of laws and regulations by members and their listing representatives; and
7. other matters that require to be stipulated in the membership administration rules.

Article 41 Members admitted by stock exchanges should be the in-country securities operations agencies with the status of a legal person the establishment of which is approved by the empowered departments.

Article 42 The decision of a stock exchange on the admission or expulsion of a member should be submitted to CSSCC for the record within five working days after the decision is made, the decision on the admission or expulsion of members other than the official members should be submitted to CSSCC five working days ahead of the completion of the relevant formalities for the record.

Article 43 A stock exchange must restrict the number of trading seats. The establishment of seats other than the general seats by a stock exchange shall be subject to the approval of CSSCC. Adjustment in the number of general seats and seats other than the general seats by a stock exchange shall be subject to the approval of CSSCC in advance.

Article 44 A stock exchange shall exercise stringent administration over the trading seat obtained by a member. Transfer of a seat by a member shall be subject to the examination and approval of the exchange pursuant to the relevant provisions on the administration of the stock exchange. A member is strictly prohibited to hand over the seat in full or in part to another agency or individual for use in the form of lease or contracting.

Article 45 A stock exchange should, in accordance with the provisions concerning the administration of self-managed securities business of securities operations agencies and business rules of the stock exchange, exercise the following supervision and administration over the self-managed securities business of the members:

1. to ask the members to use special stock accounts and fund accounts in self-managed buying and selling business, and adopt technical means to enforce stringent administration;
2. to inspect whether the members opening self-managed accounts have the prescribed self-operations qualification;
3. to ask the members to compile monthly securities inventory statement and submit the same to the stock exchange before the 5th of the following month;
4. to work out specific risk control measures for self-operations and submit the same to CSSCC for the record;
5. to submit reports on the status of self-managed securities business of all members ending on the said dates to CSSCC within 30 days after June 30 and December 31 every year; and
6. other matters relating to supervision and administration.

Article 46 A stock exchange should work out detailed provisions on securities buying and selling business by members for clients in the business rules and exercise the following supervision and administration:

1. to determine the format of the agency agreement to be signed by a member and a client and examine the legitimacy of its contents;
2. to work out the procedures and responsibilities in accepting the entrustment of a client and make sample survey of the status on the implementation of the entrustment of the clients; and
3. to ask the members to submit a report on their trading business and clients' complaints within 5 days after everymonth. The format of the report and the contents shall be promulgated by the stock exchange upon approval of CSSCC.

Article 47 A stock exchange should make sample or comprehensive inspection over the members' financial status, internal risk control system and compliance with the relevant state regulations and business rules of the stock exchange, and report the results of inspection to CSSCC.

Article 48 A stock exchange has the power to ask the members to provide business-related statements, account books, trading records as well as other documents and materials.

Article 49 Members of a stock exchange should accept the supervision and administration of the stock exchange and report relevant questions on their own initiative.