Supervision of Trading Activities

6.1 The Exchange will exercise intense monitoring on the following unusual trading activities that may affect the trading price or trading volume of securities:

1. large purchases or sales of securities before disclosure of any information that may significantly affect the trading price of the relevant securities;
2. large or frequent trades between the securities accounts opened with the same identity certificate, business license or other valid certificate;
3. large or frequent trades between the securities accounts through which the same institution or individual conducts trading on behalf of others as instructed or authorized;
4. large or frequent trades between two or more fixed securities accounts or suspected associated securities accounts;
5. huge orders, successive orders or concentrated orders for the purpose of affecting the trading price of securities;
6. frequent input or cancellation of orders for the purpose of affecting the trading price of securities or the investment decision-making of other investors;
7. enormous order with its quotation price clearly deviates from the currently available execution price;
8. large and successive orders during a specified period;
9. large or frequent turn-around trades at the same or similar price;
10. large or frequent "buy high, sell low" trades;
11. trades are conducted by anyone contrary to the investment analysis, forecast or advice released by itself;
12. false orders or other orders in block trades that disrupt the orderly market; and
13. other unusual trading activities as recognized by the Exchange that need to be put under intense monitoring.

6.2 Where a member and its branches discover any investor involved in any of the unusual trading activities as enumerated in Section 6.1 and believe such activity may seriously affect the order of the securities market, it shall issue an alert and report to the Exchange in a timely manner.

6.3 In case the occurrence of any of the unusual trading activities as enumerated in Section 6.1 has serious effect on the price or trading volume of securities, the Exchange may conduct on-site inspections or off-site inspections and require relevant members and the branches involved to provide the relevant investors' account opening information, power of attorney, cash deposit and withdrawal vouchers, cash account information, and relevant trading information. Where any unusual trading involves investors, the Exchange may directly require the investors to provide relevant information.

6.4 Members, their branches and investors shall coordinate with the Exchange in its inspections and provide relevant documents and information timely, truthfully, accurately and completely.

6.5 In severe cases of unusual trading activities, the Exchange may take the following measures according to specific circumstances:

1. oral or written warning;
2. summoning the parties involved for a talk;
3. requiring relevant investors to provide a written commitment;
4. restricting trading under relevant securities accounts:
5. applying with the CSRC for freezing relevant securities accounts or cash accounts; and
6. filing with the CSRC for investigation and punishment.

Any person objecting to the foregoing measure (4) may apply with the Exchange for a review. Enforcement of the said measure shall not be suspended during the review period.