Detailed Implementation Rules of the Shenzhen Stock Exchange for Trading Restriction

 2018-06-29  24


· Document Number:No. 428 [2015] of the Shenzhen Stock Exchange

· Area of Law: Securities

· Level of Authority: Industry Regulations

· Date issued:12-30-2015

· Effective Date:12-30-2015

· Status: Effective

· Issuing Authority: Shenzhen Stock Exchange

 

Notice of the Shenzhen Stock Exchange on Issuing the Detailed Implementation Rules of the Shenzhen Stock Exchange for Trading Restriction (2015 Revision)
(No. 428 [2015] of the Shenzhen Stock Exchange)
All member entities:
For purposes of maintaining the normal order of the securities market, fully protecting the lawful rights and interests of investors, and cracking down on securities regulatory violations in a more effective manner, the Shenzhen Stock Exchange has revised the Detailed Implementation Rules of the Shenzhen Stock Exchange for Trading Restriction (2014 Revision), which are hereby issued for your compliance and implementation. The Detailed Implementation Rules of the Shenzhen Stock Exchange for Trading Restriction (2014 Revision) (No. 56 [2014], SSE) issued by the Shenzhen Stock Exchange on June 13, 2014 shall be repealed concurrently.

Annex: Detailed Implementation Rules of the Shenzhen Stock Exchange for Trading Restriction (2015 Revision)
Shenzhen Stock Exchange
December 30, 2015
Annex:
Detailed Implementation Rules of the Shenzhen Stock Exchange for Trading Restriction (2015 Revision)
Article 1 For purposes of maintaining the normal order of the securities market, effectively cracking down on securities regulatory violations, and protecting the lawful rights and interests of investors, these Detailed Rules are developed in accordance with the Securities Law, the Trading Rules of the Shenzhen Stock Exchange (hereinafter referred to as “Trading Rules”), the Member Management Rules of the Shenzhen Stock Exchange (hereinafter referred to as “Member Management Rules”) and other relevant provisions.
Article 2 For the purpose of these Detailed Rules, “trading restriction” means the measure taken by the Shenzhen Stock Exchange (hereinafter referred to as the “SSE”) in accordance with the relevant provisions of the Securities Law and the SSE's business rules to restrict the purchase and sale of securities through securities accounts.
Trading restriction includes intraday trading suspension and after-hour trading restriction.
Article 3 Where the securities account of an investor falls under any of the following circumstances of abnormal transactions, and the circumstances are serious, the SSE may take the measure of trading restriction:
(1) Any suspected violation of law or regulation such as insider trading and market manipulation.
(2) Securities trading in violation of any law, administrative regulation, or the relevant provisions of the China Securities Regulatory Commission (“CSRC”) or the SSE.
(3) Occurrence of any abnormal transaction prescribed in the Trading Rules or any other business rules, detailed rules, and guidelines, among others, of the SSE, which may affect or has affected securities trading price or securities trading volume.
(4) Any other circumstance under which the CSRC or the SSE deems it necessary to take the measure of trading restriction.
Article 4 Where any major abnormal transaction is conducted through an investor's securities account, the SSE may, as the case may be, take one or more of the following measures of trading restriction:
(1) Prohibiting the purchase of designated or all trading varieties, but permitting the sale thereof.
(2) Prohibiting the sale of designated or all trading varieties, but permitting the purchase thereof.
(3) Prohibiting the purchase and sale of designated or all trading varieties.
(4) Other trading restriction measures as deemed necessary by the SSE.
Article 5 The measure taken by the SSE to restrict trading through an investor's securities account shall not exceed six months.
Where the circumstances are especially serious, the SSE may decide to extend the period of trading restriction.
Article 6 To take the measure of intraday trading suspension, the regulatory authority of the SSE shall directly restrict the privileges of intraday trading through the relevant securities account, and in an oral or written form, notify the member that has the custody of the relevant securities account, and the member shall immediately notify the relevant party in a timely manner on the day when the notice is received, and if notification is impossible on the day, shall report to the SSE in a timely manner.
Where the measure of intraday trading suspension is implemented, the SSE may, as required, continue to implement the measure of after-hour trading restriction.
Article 7 The SSE shall, before taking the measure of after-hour trading restriction, send the Written Decision on Trading Restriction to the member that has the custody of the relevant securities account. The member shall, on the same day when receiving the Written Decision on Trading Restriction, serve it upon the relevant party, or keep relevant evidence and report to the SSE in a timely manner if the service really can not be made on the same day.
Where an institutional investor leases or directly holds a special trading booth to trade in securities, the SSE shall send the Written Decision on Trading Restriction to the institutional investor before taking the measure of after-hour trading restriction.
Article 8 The Written Decision on Trading Restriction shall indicate:
(1) basis for restricting trading;
(2) restricted account;
(3) restriction method;
(4) restricted varieties; and
(5) duration of restriction.
Article 9 Where the relevant party has any objection to the measure of after-hour trading restriction, the party may apply to the SSE for review within 15 trading days as of receipt of the Written Decision on Trading Restriction. The implementation of the said measure shall not be suspended during the course of review.
Article 10 The SSE would record the relevant information on the restriction of trading through an investor's securities account in the credit archives, and may make an announcement as the case may be.
Article 11 Members shall, in accordance with the relevant laws, administrative regulations, departmental rules, regulatory documents, the Trading Rules, the Member Management Rules and other relevant provisions, regulate and restrain their clients' trading, and fulfill notification, service, cooperation and other obligations in a timely and effective manner.
Article 12 Where a member falls under any of the following circumstances, the SSE may take the disciplinary action such as circulation of a notice of criticism and public censure against the member according to the seriousness of circumstances:
(1) Still failing to take effective measures to regulate and restrain the trading of its clients after being reminded to do so by the SSE.
(2) Failing to inform or serve the oral or written warning or documents of the SSE to/upon its clients in a timely and accurate manner.
(3) Failing to dutifully offer assistance in the investigation into a suspected violation of law or regulation as required by the SSE, or making deliberate delay, concealment or omission, among others.
Article 13 Where any abnormal transaction prescribed in the Trading Rules occurs, the SSE may take the measure of trading restriction by reference to these Detailed Rules.
Article 14 These Detailed Rules shall be subject to interpretation by the SSE.
Article 15 These Detailed Rules shall come into force on the date of issuance. The Detailed Implementation Rules of the Shenzhen Stock Exchange for Trading Restriction (2014 Revision) (No. 56 [2014], SSE) issued by the SSE on June 13, 2014 shall be repealed concurrently.