Shenzhen Hong Kong Business Rules Are Basically In Place. The Basic System Has Become A System.

In September 30th, the Shenzhen Stock Exchange issued eight business rules related to Shenzhen Hong Kong Tong, including the implementation measures of Shenzhen Hong Kong business, the guidelines for the management of investors' suitability for Hong Kong stocks, the essential provisions for the disclosure of risks in Hong Kong stocks, the essential provisions of the Hong Kong stock exchange agreement, the notice on information disclosure and related matters of Listed Companies in Shenzhen and Hong Kong, the guidelines for the implementation of online voting of Hongkong settlement, and the detailed rules for the implementation of the online voting of shareholders' meetings and the trading rules.

Among them, Shenzhen Stock pass shares include stocks in the following ranges: the Shenzhen stock index daily average market value of not less than RMB 6 billion yuan (less than six months' actual market value of listing less than six months before the end of the first half of the month), and the A share of Shenzhen Stock Exchange listed companies in Shenzhen Stock Exchange, in addition to ST and *ST stocks, delisting the whole stock and B shares, will become a deep stock pass in the first 6 billion months of the closing date of the first half of the month, which will be less than six yuan a month.

The shares of Hong Kong stock include the stocks in the following range: Hengsheng composite stock index constituent stocks; Hengsheng composite medium Cap Index constituent stocks; Hengsheng Integrated Small Cap Index constituent stocks, and constituent stocks regularly adjusted for the twelve months before the end of the deadline. The average market value of Hong Kong stocks at the end of the month is no less than HK $5 billion, and the time of listing less than twelve months is calculated according to the actual time; A+H share listed companies are listed on the stock exchange.

However, the A shares listed on the Shenzhen Stock Exchange are subject to risk warning, suspension of listing or corresponding H-shares of A+H share listed companies in the period of delisting and consolidation; A shares corresponding to H shares listed on the Shanghai stock exchange risk warning board or A+H shares listed on the Stock Exchange suspended by the Shanghai Stock exchange; stock traded in the currencies other than Hong Kong dollars, and other special circumstances identified by the Shenzhen Stock Exchange.

The responsible person of the Shenzhen Stock Exchange said that the formulation of the Shenzhen Hong Kong business rules has fully absorbed the successful experience of Shanghai and Hong Kong. The structure and main contents of the Shenzhen Hong Kong and Shanghai Tong have basically been consistent with that of Shanghai and Hong Kong. At the same time, it has highlighted the characteristics of the Shenzhen Stock Exchange's multi-level capital market, expanded the scope of the underlying stocks, and introduced the market value screening standard, so as to prevent the hype and manipulation risks of small and medium capitalization stocks.

These rules stipulate the basic mode and paction of Shenzhen Hong Kong Tong business.

And regulatory requirements, clear the specific requirements of securities companies to implement the customer management of Hong Kong stocks through investor suitability management and paction risk disclosure, and confirm the arrangement of information disclosure supervision of Shenzhen stock company and relevant information disclosure obligers under the circumstances of the difference between the two rules and the change of shareholder structure, as well as the matters concerning the exercise of shareholders' rights by the Hongkong settlement as a nominal holder, and the participation of the subsidiaries of the stock exchange as a trading participant.

The article emphasizes the following risks: first, combined with the expansion of the underlying stock market, it reveals the risks of some small and medium capitalization stock companies such as large fundamental changes and large fluctuation of stock prices; two, based on the differences between the two rules and systems, it is clear that there is no risk of delisting and delisting arrangement in Hongkong market, and emphasizes that stocks may be suspended for a long time, and the risks such as the direct withdrawal of the market and the service of the nominal holder may be limited after the withdrawal. The three is based on the "old stock issue" of market concerns. Through summing up and analyzing the typical cases, the characteristics of the "thousand shares" are summed up. In view of the characteristics of the Hong Kong stocks covering some of the Hengsheng integrated small cap index stocks, the related small and medium capitalization stocks generally have the characteristics of small scale, unstable performance and large price fluctuation.

At the same time, in order to further standardize the information disclosure of Shenzhen stock exchange company and relevant information disclosure obligor, and fully protect the legitimate rights and interests of domestic and foreign investors,

The notice on information disclosure and related matters of listed companies further stipulates the relevant arrangements for information disclosure supervision, including the exercise of shareholders' rights by foreign investors, disclosure of the top ten shareholders in the periodic reports, and disclosure of changes in the rights and interests of overseas investors. It also specifies the arrangement for the resumption of stock trading of the A+H stock company, and the principle that the disclosure of contents should be more or less less and the requirements for disclosure strictly and not leniently should be followed when there is a difference between the two rules in the same information disclosure event.

From August 26th to September 9th, the Shenzhen Stock Exchange consulted the market and related pactions, settling accounts and people with reference to the implementation measures of Shenzhen and Hong Kong's general services, the guidelines for the proper management of Hong Kong stocks through investors, the necessary articles for the disclosure of risks through Hong Kong stocks, and the essential clauses of the Hong Kong stock exchange agreement.

A total of 91 feedback were received from securities companies, Hongkong Securities Regulatory Commission, the stock exchange, law firms and individuals.

After careful study, 41 opinions were adopted and the relevant rules were revised and perfected.

Among them, the implementation measures of Shenzhen and Hong Kong's general services are revised according to the 25 opinions of the market (involving 18 items). 13 articles are amended; the essential clauses of the Hong Kong stock trading risk disclosure book are based on 15 opinions (involving 10 items) of the market feedback, 5 NEW amendments and 8 amendments. According to the 46 articles of the Hong Kong Stock Exchange Agreement (including 42 items), 1 articles are amended and the 17 articles are amended.

The views adopted mainly focus on increasing the risk disclosure of special concerns in the market, making clear the specific operation according to the actual operation of the business, and improving the provisions of the relevant rules and regulations. For investors who have proposed to reduce or cancel the requirement for investors to meet the requirements of Hong Kong stocks and adjust the dividend tax rate of Hong Kong stocks, they will study and deal with the relevant parties as the market develops and the conditions are ripe.

The official said that the issuance of rules for implementation of Shenzhen and Hong Kong's general services indicated that the Shenzhen Hong Kong business rules were basically in place and the basic system had already been established.

Next, the Shenzhen Stock Exchange will continue to do a solid job in various business and technical preparations with the relevant parties under the unified arrangement and leadership of the China Securities Regulatory Commission, and carry out market organization, investor education and business training, so as to ensure the smooth start and safe operation of Shenzhen Hong Kong Communications.