Laws of the People's Republic of China

All the member entities:

The Transaction Regulations of Shanghai Stock Exchange upon approval of China Securities Regulatory Commission (CSRC) is herby promulgated and shall go into effect as of July 1, 2006, and the related detailed regulations for business operations shall be separately promulgated.

Shanghai Stock Exchange

May 15, 2006

Transaction Regulations of Shanghai Stock Exchange Chapter I General Provisions

1.1

In order to regulate the transactions in the securities market, maintain the order of the securities market, and protect the lawful rights and interests of investors, this Regulations is instituted in accordance with the Securities Law of the People's Republic of China and other laws, administrative regulations, ministerial regulations and the Articles of Association of Shanghai Stock Exchange.

1.2

The transactions in respect of the listed securities and their derivatives (hereinafter referred to as securities uniformly) of Shanghai Stock Exchange (hereinafter referred to as this Exchange) shall be governed by these Regulations. Any matter that has not been prescribed by these Regulations shall be governed by other related provisions of this Exchange.

1.3

The securities transactions shall follow the principles of openness, fairness and equity.

1.4

The securities transactions shall comply with the laws, administrative regulations, ministerial regulations and the related business operational regulations of this Exchange, and the principles of free will, compensation and good faith.

1.5

The securities transactions shall employ the paperless centralized transactions and other methods upon the approval of CSRC.

Chapter II Trading Market

Section 1 Trading Places

2.1.1

This Exchange will offer trading places and facilities for the securities transactions, such as the exchange server, trading hall, trading seats, offering system and related communications systems.

2.1.2

This Exchange sets up the trading hall. The members of this Exchange (hereinafter referred to as the member) may make declarations by the traders assigned by them to the trading hall.

Except the special approval of this Exchange, those who allowed to enter into the trading hall shall be limited to the persons as follows:

(1)

The registered traders; and

(2)

The personnel in the hall for supervision.

Section 2 Trading Participants and Trading Rights.

2.2.1

If a member or institution upon approval of this Exchange wants to enter into the market of this Exchange for the securities trading, he/it shall hand in an application to this Exchange for getting a related seat or trading rights and becoming a trading participant of this Exchange.

A trading participant shall do the securities trading through the Participant Business Unit opened upon application in this Exchange.

2.2.2

The "Participant Business Unit" refers to such a basic unit that a trading participant can take part in the securities trading of this Exchange, enjoy and perform the related trading rights and accept the related business management of this Exchange.

2.2.3

The detailed Regulations for the management of Participant Business Unit and the limits of trading rights shall be respectively instituted by this Exchange, and go into effect after being reported to and approved by the CSRC.

Section 3 Trading Varieties

2.3.1

The securities as follows may be listed in this Exchange:

(1)

Stocks;

(2)

Funds;

(3)

Bonds;

(4)

Treasury bonds repurchase (T-bond repurchase) ;

(5)

Warrants; and

(6)

Other trading varieties upon approval of the CSRC.

Section 4 Trading Hours

2.4.1

The trading days of this Exchange are from Monday to Friday every week.

On State legal holidays and the rest days announced by this Exchange this Exchange will rest.

2.4.2

Where the securities are traded by means of competitive bidding, 9:15 to 9:25 in every trading day shall be the time for the aggregate auction of opening quotation; 9:30 to 11:30 and 13:00 to 15:00 shall be the time for continuous auction, except for the securities to which the suspending trading and then the resumption of trading are implemented during the course of opening.

As approved by the CSRC and in accordance with the demands of the market development, the trading hours may be modulated by this Exchange.

2.4.3

In case the trading is suspended because of some reason within the trading hours, the trading hours will not be put off.

Chapter III Purchase and Sales of Securities

Section 1 General Provisions

3.1.1

Accepting the entrustment of purchase and sales from an investor, any member shall make declaration to this Exchange in accordance with the entrustment, and be responsible for the related liabilities of trading and delivery.

If any member accepts the entrustment of purchase and sales from an investor and the transaction is completed, the investor shall deliver the member with the securities it/he entrusts the member to sell out or the money by which it/he entrusts the member to buy securities, as well as the member shall deliver the investor with the money gotten from the sales of securities or the securities as purchased.

3.1.2

A member shall send out declaration orders of purchase or sales to the exchange server of this Exchange by the Participant Business Unit it owns or other related sending means, and make conclusion of the transactions in accordance with this Regulations, and the trading results and other trading records shall be sent to the member by this Exchange.

3.1.3

The entrustment and declaration records shall be properly kept by a member in accordance with the related provisions.

3.1.4

The securities purchased by any investor shall not be sold out before the delivery thereof, except that a turnaround transaction is carried out.

The "securities turnaround transaction" refers to the securities which are purchased by an investor and will be totally or partly sold out before the delivery upon the confirmation of the transaction.

3.1.5

Same-day turnaround transactions will be carried out for the bonds and warrants repurchase, and the next-trading-day turnaround transactions will be carried out for B-shares.

3.1.6

This Exchange may carry out the system of primary dealers in accordance with the demands of the market, and the concrete measures there for shall be respectively instituted by this Exchange and shall go into effect after being reported to and approved by the CSRC.

Section 2 Designated Transactions

3.2.1

A system of all-around designated transactions shall be carried out for the securities trading in the market of this Exchange, except for the foreign investors engaging in the B-share trading.

3.2.2

The "all-around designated transactions" means that an investor taking part in the securities sales in the market of this Exchange shall designate a member ahead of time as its/his trustee of securities sales, and take part in purchasing or selling the securities in the market of this Exchange through this member.

3.2.3

An agreement on designated transactions shall be reached between the member of designated transactions and an investor and in which the rights, obligations and duties of both parties shall be made sure. Once the agreement on designated transactions is reached, the member can hand in an application to the exchange server of this Exchange for dealing with the formalities for designated transactions with the strength of the application of the investor.

3.2.4

This Exchange will accept the declaration orders for designated transactions during the period of opening, and these orders will become valid immediately after being accepted by the exchange server.

3.2.5

If changing any designated transaction, an investor shall apply for cancellation to the designated member, and the member will make declaration to cancel the order. As to the applications in line with the requirements for canceling the designation, no member may limit, prevent or delay the formalities for dealing with the designation cancellation.

3.2.6

A new declaration for designated transactions may be made after the designated transactions are cancelled.

3.2.7

Other matters concerning designated transactions shall be carried out in accordance with the related provisions of this Exchange.

Section 3 Entrustment

3.3.1

When an investor buys or sells the securities, a securities account and a capital account shall be opened, and an entrustment agreement on securities transactions shall be signed with a member. After the agreement goes into effect, the investor will become the client of brokerage business of this member (hereinafter referred to as the client).

Investors shall deal with the opening of securities accounts in accordance with the provisions of the registration and clearing institutions designated by this Exchange.

3.3.2

A client may entrust a member to buy or sell the securities by the self-help entrustment methods such as letters, phone calls, self-help terminals, internet. The entrustment by phone calls, self-help terminals, internet and other self-help methods shall be dealt with in accordance with the related provisions.

3.3.3

If a client taking part in the purchase or sales of securities by any self-help entrustment method, the member shall sign a self-help entrustment agreement with the client.

3.3.4

Except otherwise herein provided for by this Exchange, an entrustment instruction of any client shall consist of:

(1)

The number of the securities account;

(2)

The code of the securities;

(3)

The direction of the deal;

(4)

The entrustment quantity;

(5)

The entrustment price; and

(6)

Other contents required by this Exchange and the member.

3.3.5

A member may be entrusted by a client to purchase or sell the securities by means of limit price order or market price order.

The "limit order" means that a member shall be entrusted by the client to buy or sell the securities at the prescribed price, and a declaration shall be made by the member for purchasing the securities at the prescribed price or at a lower price and a declaration shall be made for selling out the securities at the prescribed price or at a higher price.

The "market order" means that a member is entrusted by the client to buy or sell the securities at the market price.

3.3.6

Upon entrustment, a client may cancel the unconcluded transaction.

3.3.7

As to the entrustment cancelled or invalidated, upon confirmation, a member shall return the related capital or securities to the client in time.

3.3.8

A member providing the securities financing services through the securities sales for its clients shall act in accordance with the related provisions.

Section 4 Declaration

3.4.1

This Exchange will accept the declarations of competitive bidding of the members at 9¡Ã15 to 9¡Ã25, 9¡Ã30 to 11¡Ã30 and 13¡Ã00 to 15¡Ã00 every trading day.

The exchange server of this Exchange will not accept the declarations for the cancellation of orders at 9:20 to 9:25 of the aggregate auction of opening quotation every trading day, and the transactions that haven't been completed can be cancelled at any other time for accepting declarations. And a declaration for cancellation will not become valid without confirmation of the exchange server of this Exchange.

If it is considered to be necessary, this Exchange can make modulation on the time for accepting the declarations of the members.

3.4.2

Declarations shall be made in time by a member to this Exchange in accordance with the order by which it accepts the entrustments of its clients.

3.4.3

This Exchange will accept the limit orders and market orders of the members.

3.4.4

In accordance with the demands of the market, this Exchange may accept the market orders of the types as follows:

(1)

The declaration of the conclusion of transactions at the best five prices and in real time and the cancellation of remaining orders, namely, the transactions shall be completed in turn by taking the price of the counterpart as the transaction price within the best five prices in real time of the counterpart, and the part of transactions that have not been completed shall be automatically cancelled;

(2)

The declaration of the conclusion of transactions at the best five prices and in real time and the change of the remaining transactions into limit orders, namely, the transactions shall be completed in turn by taking the price of the counterpart as the transaction price within the best five prices in real time of the counterpart, and the part of transactions that have not been completed shall be changed into limit orders in accordance with the latest transaction price declared by this side; if no transaction in this declaration is completed, the transactions shall be changed into limit orders in accordance with the best quotation of this side; and if there is no declaration of this side, the declaration shall be cancelled;

(3)

Other types formulated by this Exchange.

3.4.5

The market orders shall only apply to the transactions of the securities with price limit during the course of continuous auction, except otherwise herein provided for by this Exchange.

3.4.6

A limit order shall consist of the number of the securities account, the code of the seat, the code of the securities, the direction of the deal, the quantity, the price, and etc.

A market order shall consist of the type of the declaration, the number of the securities account, the code of the seat, the code of the securities, the direction of the deal the quantity, and etc.

A declaration order shall be transferred in the form prescribed by this Exchange. If it is considered to be necessary, this Exchange may make modulation on the contents or methods of declaration.

3.4.7

As to the purchase of stocks, funds or warrants by means of competitive bidding, the declared quantity shall be 100 shares (units) or the integral number of times thereof.

When selling the stocks, funds or warrants, the sales of the part less than 100 shares (units) shall be declared once and for all.

3.4.8

In the competitive bidding, the quantity upon declaration of the bonds transactions shall be one lot or the integral number of times thereof, the quantity upon declaration of pledge-type repurchase of bonds shall be 100 lots or the integral number of times thereof, as well as the quantity upon declaration of buy-out repurchase of bonds shall be 1,000 lots or the integral number of times thereof.

The 1,000 Yuan of par value of bonds in the bonds transactions or the buy-out repurchase of bonds shall be one lot, and the 1,000 Yuan of standard coupons in the pledge-type repurchase of bonds shall be one lot.

3.4.9

The largest amount in a single declaration of stock, fund or warrant transactions shall be less than one million shares (units), the largest amount in a single declaration of transactions of bonds or pledge-type repurchase of bonds shall be less than 10,000 lots, as well as the largest amount in a single declaration of transactions of buy-out repurchase of bonds shall be less than 50,000 lots.

In accordance with the demands of the market, this Exchange may make modulation on the largest amount in a single securities declaration.

3.4.10

Different units of account shall be employed for the trading of different securities: the "price per share" for the stocks, the "price per unit of funds" for the funds, the "price per unit of warrants" for the warrants, the "price per 100 Yuan of par value of bonds" for the bonds, the "due annual proceeds per 100 Yuan of capital" for the pledge-type repurchase of bonds and the "due repurchase price per 100 Yuan of par value of bonds" for the buy-out repurchase of bonds.

3.4.11

The minimum price variance unit for the transaction of A-shares, bonds or buy-out repurchase of bonds shall be 0.01 Yuan, 0.001 Yuan for the transactions of funds or warrants, the 0.001 US Dollars for the transactions of B-shares, and 0.005 Yuan for the transactions of pledge-type repurchase.

3.4.12

In accordance with the demands of the market, this Exchange may make modulation on the minimum price variance unit of the price upon declaration and the declared quantity of a single transaction concerning each kind of securities.

3.4.13

The price limit to the transactions of stocks and funds shall be carried out by this Exchange, and the fluctuating proportion shall be 10%, of which the fluctuating proportion of ST or *ST shares shall be 5%.

The formula for the fluctuating price of the shares and funds shall be as follows: Fluctuating Price = Previous Closing Price ¡Á (1¡ÀFluctuating Proportion).

The calculation result shall be the minimum price variance unit in accordance with the principle of rounding (to the nearest whole number).

If it meets any of the circumstances as follows, the price limit shall not be carried out on the first listing day of stocks:

(1)

The initial public offering of stocks or close-end funds;

(2)

The issuance of additional listed shares;

(3)

The resumption of trading after the suspending of trading; or

(4)

Other circumstances recognized by this Exchange .

As approved by the CSRC, this Exchange may make modulation on the fluctuating proportion of the securities.

3.4.14

When buying or selling the securities with the price limit, the declaration during the price limit shall be valid, otherwise it shall be an invalid declaration.

3.4.15

When buying or selling the securities without the price limit, the valid declared price at the stage of aggregate auction shall be governed by the provisions as follows:

(1)

The declared price of stock transactions is between 200% and 50% of the previous closing price; and

(2)

The declared price for the fund or bond transactions is between 150% and 70% of the previous closing price.

There is no price limit for the T-bond repurchase transactions at the stage of aggregate auction.

3.4.16

When buying or selling the securities without the price limit, the valid price upon declaration at the stage of continuous auction shall be governed by the provisions as follows:

(1)

The declared price is lower than 110% of the lowest selling price revealed in real time and higher than 90% of the highest buying price revealed in real time; and simultaneously, lower than 130% of the average of the highest price upon declaration and the lowest price upon declaration and higher than 70% of the aforesaid average;

(2)

In case there is no declared buying price revealed in real time, the lower one of the lowest selling price and the latest transaction price revealed in real time shall be considered as the highest buying price mentioned in the preceding item; and

(3)

In case there is no declared selling price revealed in real time, the higher one of the highest buying price and the latest transaction price revealed in real time shall be considered as the lowest selling price mentioned in the preceding item.

In case there is no transaction completed on the current day, the previous closing price shall be the latest transaction price.

In accordance with the demands of the market, this Exchange may make modulation on the provisions on the declared price limit.

3.4.17

A declaration shall be valid on the current day. If each competitive transaction declared can not be completed once and for all, the art that has not been completed may continuously take part in the auction on the current day, except otherwise herein provided for by this Measures.

Section 5 Auctions

3.5.1

The ways of aggregate auction and continuous auction shall be employed for the competitive securities transactions.

The "aggregate auction" refers to such a competitive method that the sales declarations as accepted during a certain period shall be collectively matched once and for all.

The "continuous auction" refers to such a competitive method that the sales declarations shall be continuously matched item by item.

3.5.2

The sales declarations that are not completed during the period for the aggregate auction shall automatically carry out the continuous auction.

Section 6 Conclusion of Transactions

3.6.1

The securities competitive bidding shall be matched by the principle of price and time priority as follows.

The principle of price priority at the time of transaction conclusion shall be: the declaration for the purchase at a higher price shall take precedence over the declaration for the purchase at a lower price, and the declaration for the sales at a lower price shall take precedence over the declaration for the sales at a higher price.

The principle of time priority at the time of transaction conclusion shall be: if the direction of the deal and the price are the same, the former declarer shall have priority to the later declarer. The sequence of declarations shall be due to the time when the exchange server accepts the declarations.

3.6.2

As to aggregate auction, the principle of determination of the transaction price shall be:

(1)

The price at which the maximum trading volume can be realized;

(2)

The price at which the declarations for the purchase at the price higher than the aforesaid price and the declarations for the sales at the price lower than the aforesaid price shall all be transacted; and

(3)

The price at which all the transactions of either the buyer or the seller with the price identical with the aforesaid one shall all be completed.

In case there are more than two prices upon declaration meeting the aforesaid conditions, the price upon declaration that makes the smallest uncompleted transaction volume shall be the transaction price; and if there are still more than two prices upon declaration that make the smallest uncompleted transaction volume meet the aforesaid conditions, their middle price shall be the transaction price.

All the transactions under aggregate auction shall be completed at the same price.

3.6.3

As to continuous auction, the principle of determination of the transaction price shall be:

(1)

In case the highest price upon declaration for the purchase is the same as the lowest price upon declaration for the sales, the aforesaid price shall be the transaction price;

(2)

In case the price upon declaration for the purchase is higher than the lowest price upon declaration for the sales revealed in real time, the latter shall be the transaction price; and

(3)

in case the price upon declaration for the sales is lower than the highest price upon declaration for the purchase revealed in real time, the latter shall be the transaction price.

3.6.4

In case the price reached in accordance with the principle of concluded transactions is not under the scope of minimum price variance unit, the related minimum price variance unit shall be gotten in accordance with the principle of rounding (to the nearest whole number).

3.6.5

After the sales declarations are matched by the exchange server, the transactions are completed. A transaction goes into effect when the transaction is completed in accordance with the provisions in these Regulations, and both parties to the transaction shall accept the trading result and undertake the obligation of liquidation and delivery.

In case a transaction is seriously affected by the force majeure, accident or illegal invasion into the trading system, this Exchange may employ proper measures or consider the transaction to be invalid.

As confirmed by this Exchange and approved by the council thereof, proper measures may be employed for the clearly unfair transactions, as well as a report shall be handed in to the CSRC.

As to the transactions that are against these Regulations and will seriously destroy the normal operation of the securities market, this Exchange has the right to make announcement about the cancellation of the transactions. And the traders in violation of the Regulations shall be responsible for the losses incurring there from.

3.6.6

As to the transactions completed in accordance with these Regulations, the trading results shall be determined based on the trading data recorded in the exchange server of this Exchange.

3.6.7

The liquidation and delivery concerning the securities transactions shall be conducted by the registration and clearing institution designated by this Exchange.

Section 7 Block Trades

3.7.1

The method of block trades may be employed for the securities sales implemented in this Exchange and meeting the conditions as follows:

(1)

The declared quantity of A-shares in a single transaction thereof is more than 500,000 shares, or the trading amount is more than 3 million Yuan;

(2)

The declared quantity of B-shares in a single transaction thereof is more than 500,000 shares, or the trading amount is more than 300,000 US Dollars;

(3)

The declared quantity of funds in a single block transaction is more than 3 million shares, or the trading amount is more than 3 million Yuan;

(4)

The declared quantity of government bonds or the T-bond repurchase in a single block transaction thereof is more than 10,000 lots, or the trading amount is more than 10 million Yuan;

(5)

The declared quantity of other bonds in a single transaction thereof is more than 1,000 lots, or the trading amount is more than 1 million Yuan.

In accordance with the demands in the market, this Exchange may make modulation on the minimum quota of block trades.

3.7.2

This Exchange will accept the declarations for block trades at 9:30 to 11:30 and 13:00 to 15:30 every trading day.

3.7.3

The declarations for block trades shall consist of the declarations of intent and the declarations of transaction that has been completed.

A declaration of intent shall consist of the number of the securities account, the code of the securities and the direction of the deal and etc.

A declaration of transaction that has been completed shall consist of the number of the securities account, the code of the securities, the direction of the deal, the price and quantity of the completed transaction and etc.

3.7.4

A declaration of intent shall be true and valid. If the price of the declaring party is unclear, it shall be considered that it is willing to buy at the prescribed lowest price or sell out at the highest price at least; and if the quantity is unclear, it shall be considered that it is willing to complete the transactions with the minimum declared quantity for a single block trade at least.

3.7.5

When the members accepting a declaration of intent (including the circumstance that any other member gives a more favorable price than the declared one), the declaring party shall make the declaration of transaction that has been completed at least with one member that has accepted the declaration of intent.

3.7.6

The transaction price of the block trade of securities with the price limit shall be determined by both parties to the transaction under the scope of price limit on the current day.

The transaction price of the block trade of securities without the price limit shall be determined through the consultation of both parties to the transaction based on up and down 30% of the previous closing price or between the highest and lowest prices of transactions that have been completed on the current day.

3.7.7

Both parties to the transaction shall, after signing an agreement, make a declaration of transaction that has been completed to the exchange server of this Exchange, and the transaction price of the declaration of transaction that has been completed shall agree with the transaction quantity.

A declaration of transaction that has been completed shall not be changed or cancelled once it is confirmed by this Exchange, and both parties to the transaction shall accept the transaction result.

3.7.8

A member shall make sure that the participants in block trades actually own the securities or capital related to the declaration of intent or the declaration of transaction that has been completed.

3.7.9

The system of primary traders shall be carried out for the block trades of this Exchange concerning bonds.

A member upon approval of this Exchange may act as a primary trader, and carry out the business of bonds bilateral quotation by the system of block trades of this Exchange.

3.7.10

A block trade shall not be calculated into the calculation of real-time market information and indices of this Exchange, as well as the trading volume shall be calculated into the total securities trading volume after the block trade is closed.

3.7.11

As concluded of block trades every trading day, for block trades concerning stock or funds, this Exchange will publish the names of the securities, the transaction price, the trading volume, the name of the business department of the member where both the buyer and the seller make their transaction; for block trades concerning bonds or T-bond repurchase, this Exchange will publish the names of the securities, the trading volume and the transaction price, etc.

Section 8 Transactions of T-bond Repurchase

3.8.1

The methods of buy-out repurchase and pledge-type repurchase, etc. may be employed for the transactions of T-bond repurchase.

3.8.2

The "buy-out repurchase of bonds" refers to such a kind of transaction in which both parties to the transaction stipulate that the seller will buy back the same kind and amount of bonds from the buyer at the stipulated price on some day in the future, as the holder of bonds sells the bonds to the purchaser.

The "pledge-type repurchase of bonds" refers to such a kind of transaction in which both parties to the transaction stipulate to return the capital and remove the pledge after the expiration of the repurchasing period, as the holder of bonds pledges the bonds and obtains the pledge financing from the trading counterpart by taking the quantity of standard coupons calculated at the rate of conversion of standard coupons as the financial quota.

3.8.3

The term for the transaction of T-bond repurchase shall be calculated in accordance with the Calendar time. If the expiry date is a non-trading day, the settlement shall be put off to the next trading day.

Chapter IV Other Trading Matters

Section 1 Opening Price and Closing Price

4.1.1

The opening price of the securities shall be the first transaction price of the aforesaid securities on the current day.

4.1.2

The opening price of the securities shall be produced by means of aggregate auction, if not, it shall be produced by means of continuous auction.

4.1.3

The closing price of the securities shall be the weighted average price of the trading volume of all the transactions (including the last transaction) at one minute before the last transaction of the aforesaid securities on the current day. If there is no transaction completed on the current day, the previous closing price shall be the closing price of the current day.

Section 2 Listing, Delisting, Suspension and Resumption of Trading

4.2.1

This Exchange will carry out the listing of the listed securities.

4.2.2

As to the securities whose listing period has expired or that do not satisfy the conditions for listing, they shall be terminated thereof, and de-listed by this Exchange.

4.2.3

If the stocks or close-end funds present abnormally fluctuating, this Exchange will suspend them and will resume the trading thereof until 10:30 on the day when the related party having the obligation of disclosure makes an announcement.

In accordance with the requirements for developing the market, this Exchange may modulate the time for resumption of trading of the securities whose trading is suspended.

4.2.4

This Exchange can carry out a special suspension of trading to the securities involving illegal or irregular transactions, and the related parties shall hand in reports in written form in accordance with the requirements of this Exchange.

This Exchange shall determine the time and methods for the special suspension of trading and the resumption of trading.

4.2.5

If the trading of the securities is suspended, the market information released by this Exchange shall include the information on the aforesaid securities; but after the securities are de-listed, the market information will not include the information on the aforesaid securities.

4.2.6

If the trading of the securities is suspended during the period of opening, the declarations before the suspension of trading shall take part in the transactions after the resumption of trading of the aforesaid securities; the declarations may be continuously made or cancelled during the course of the suspension of trading; the accepted declarations shall follow aggregate auction at the time of resumption of trading, but the invented reference opening price, the invented matching amount and the invented non-matching amount will not be revealed during the period of aggregate auction.

4.2.7

This Exchange will make announcement about the listing, delisting, suspension and resumption of trading of the securities.

4.2.8

The other matters concerning the listing, delisting, suspension and resumption of trading of the securities shall comply with the listing Regulations and other related provisions of this Exchange.

Section 3 Ex-right and Ex-dividend

4.3.1

As to the equity distribution, the conversion of public reserves into share capital or the allotment of shares of the listed securities, this Exchange shall implement the ex-right and ex-dividend for the aforesaid securities on the trading day following the date of equity registration (the last trading day for the B-shares), except otherwise herein provided for by this Exchange.

4.3.2

The formula for calculating the ex-right (ex-dividend) reference price shall be as follows:

Ex-right (Ex-dividend) Reference Price = [(Previous Closing Price - Cash Bonus) + Price of Allotment of Shares (Price of New Shares) ¡Á Proportion of Change of Floatable Shares] ¡Â (1 + Proportion of Change of Floatable Shares)

In case a securities issuer thinks that it is necessary to modulate the aforesaid formula, it may apply for modulation with this Exchange and interpret the reasons. This Exchange may modulate the formula for calculating the ex-right (ex-dividend) reference price in accordance with the application and promulgate it.

The previous closing price of the aforesaid securities showed in the real-time market information on the day of ex-right (ex-dividend) shall be the ex-right (ex-dividend) reference price.

4.3.3

If the securities are purchased or sold on the day of ex-right (ex-dividend), the scope for appreciation and depreciation shall be calculated by taking the ex-right (ex-dividend) reference price as the benchmark, except otherwise herein provided for by this Exchange.

Chapter V Trading Information

Section 1 General Provisions

5.1.1

This Exchange will promulgate the real-time market information, securities indices, public information of securities transactions as well as other trading information, etc. every trading day.

5.1.2

This Exchange will formulate various daily reports, weekly reports, monthly reports and annual reports reflecting the market information in time, and promulgate them.

5.1.3

The trading information generated from the market of this Exchange will be owned by this Exchange, and any institution or individual may use or spread it without the approval of this Exchange.

Any institution or individual that is allowed by this Exchange to use the trading information shall only provide the aforesaid trading information to any other institution or individual for use or spreading upon approval of this exchange.

5.1.4

The measures for the management of the securities trading information shall be respectively instituted by this Exchange.

Section 2 Real-time Market Information

5.2.1

During the course of aggregate auction at 9:15 to 9:25 every trading day, the real-time market information shall consist of the codes of the securities, shortened names of the securities, the previous closing price, the invented reference opening price, the invented matching amount as well as the invented un-matching amount, etc.

5.2.2

During the course of continuous auction, the real-time market information shall consist of the codes of the securities, shortened names of the securities, the previous closing price, the latest transaction price, the highest price and lowest price on the current day, the accumulative transaction amount on the current day, the accumulative transaction value on the current day, the price and quantity upon declaration for the purchase in real time and at the five highest prices, the price and quantity upon declaration for the sales in real time and at the five lowest prices.

5.2.3

As to initial public offering of securities, the previous closing price showed in the real-time market information thereof shall be the issuing price thereof, except otherwise herein provided for by this Exchange.

5.2.4

The real-time market information will be transferred to each member by the communications system, and the members may use it under the scope permitted by this Exchange.

5.2.5

In accordance with the demands of the market development, this Exchange may modulate the methods and contents of releasing the real-time market information.

Section 3 Securities Indices

5.3.1

This Exchange will institute composite indices, component indices, classification indices as well as other securities indices in order to reflect the alteration and tendency of the overall price of securities transactions or the price of some kind of securities, and release them together with the real-time market information.

5.3.2

The formulation of securities indices shall follow the principle of openness and transparency.

5.3.3

The measures for the set-up and formulation of securities indices shall be respectively worked out by this Exchange.

Section 4 Public Information of the Securities Trading

5.4.1

If the stocks or close-end funds with the price limit traded by way of competitive trading meet any of the circumstances as follows, this Exchange will release the names of the business departments of the five members with the largest buying or selling amount of the related securities on the current day and their separate buying or selling amount:

(1)

The first three stocks (funds) whose variance of daily closing price reaches ¡À 7%;

The formula used for calculating the variance of closing price shall be:

Variance of Closing Price = Price Variance of a Single Stock (Fund) - Price Variance of Related Classification Index

(2)

The first three stocks (funds) whose daily price variance is up to 15%; and

The formula used for calculating the price variance shall be:

Price Variance = (Highest Price on the Current Day - Lowest Price on the Current Day) / Lowest Price on the Current Day¡Á100%

(3)

The first three stocks (funds) whose daily turnover rate is up to 20%;

The formula used for calculating the daily turnover rate shall be:

Turnover Rate = Quantity of Concluded Shares (Units) / Quantity of Floatable Shares (Units)¡Á100%

If the variance of the closing price, the price variance and the turnover rate are identical, they shall be chosen in turn in accordance with the transaction amount and the trading value.

The related classification indices shall be the Shanghai A-share Index, Shanghai B-share Index and Shanghai Fund Index instituted by this Exchange.

As to the stocks without price limit or close-end funds prescribed in Article 3 .4.13, this Exchange will release the names of the business departments of the five members with the largest buying or selling amount on the current day and their separate buying or selling amount.

5.4.2

If the stocks or close-end funds meet any of the circumstances as follows, that belongs to the abnormal fluctuation, this Exchange will respectively release the names of the business departments of the five members with the accumulative largest buying or selling amount during the course of abnormal fluctuation and their separate buying or selling amount:

(1)

The variance of the closing price within three consecutive trading days is up to ¡À20%;

(2)

The variance of the closing price for the ST and *ST stocks within three consecutive trading days accumulatively is up to ¡À15%;

(3)

The ratio of daily average turnover rate within three consecutive trading days to that within the previous five trading days is up to 30 times, and the accumulative turnover rate of the aforesaid stocks or close-end funds within three consecutive trading days is up to20%; or

(4)

Other circumstances considered to be the abnormal fluctuation by this Exchange or the CSRC.

The index of abnormal fluctuation shall be recalculated from the day of resumption of trading.

The stocks without price limit or close-end funds prescribed in Article 3 .4.13 shall not follow the calculation of the index of abnormal fluctuation.

5.4.3

As to special suspension of securities trading prescribed in Article 4 .2.4, this Exchange may promulgate the information as follows in accordance with the requirements:

(1)

The names of the business departments of five members with the largest trading value and their separate buying or selling amount and value;

(2)

The statistical information on shares; and

(3)

Other information considered to be revealed by this Exchange.

5.4.4

In case the public information on the securities trading involving the special seat of an institution, the name to be promulgated shall be the "exclusive for the institution".

5.4.5

In accordance with the demands of the market development, this Exchange may modulate the contents in the public information of the securities trading.

Chapter VI Supervision over Transactions

6.1

This Exchange will put emphasis of its surveillance and control on the abnormal transactions as follows that may cause affect on the price or quantity of securities transactions:

(1)

Buying or selling a large amount of related securities before the information that may significantly cause affect on the price of securities transactions is revealed;

(2)

Implementing large or frequent transactions between the securities accounts opened by using the same identity card, business license or other effective certificate, in which one party is the counterpart of the other party;

(3)

Implementing large or frequent transactions between the securities accounts by entrusting or authorizing the same institution or individual for implementing the transactions, in which one party is the counterpart of the other party;

(4)

Implementing large or frequent transactions between two or more securities accounts that are fixed or suspected of being related with each other, in which one party is the counterpart of the other party;

(5)

Making block declarations, continuous declarations or frequent declarations in order to affect the price of securities transactions;

(6)

Making frequent declarations or declarations for cancellation in order to affect the price of securities transactions or the investment decisions of other investors;

(7)

Making huge declarations, and the declaration price is clearly away from the transaction price at the time of declaration;

(8)

Implementing a great deal of continuous transactions during a certain period;

(9)

Implementing many or frequent roundabout transactions at the same price or at the closing price;

(10)

Implementing many or frequent transactions by employing the strategy of "high buy low sell";

(11)

Implementing the securities transactions opposite to the investment analysis, forecasting or suggestion released by itself;

(12)

Making declarations that are false or will disturb the market order in the block trades; and

(13)

Other abnormal trading acts for which this Exchange considers that the key surveillance and control is under requirement.

6.2

In case any member and its business department finds that there is any abnormal securities transaction between investors prescribed in Article 6 .1 and that will seriously cause affect on the order of securities transactions, it shall give a hint and report it to this Exchange in a timely manner.

6.3

If there is any abnormal transaction prescribed in Article 6 .1 and any affect on the price or quantity of securities transactions has been caused , this Exchange may employ the measures of off-site investigations and on-site investigations, and require the related member and its business department to provide the account opening materials of the investor, the power of attorney, vouchers on depositing and withdrawing the capital, explanations concerning the capital accounts, explanations concerning the related transactions and other materials, and this Exchange may also require the related investors to provide the materials if the abnormal transaction involving the investors.

6.4

A member and its business department and the investor shall have cooperation with this Exchange in the related surveys, and provide the related documents and materials in a timely, truthful, accurate and complete manner.

6.5

For the abnormal transactions with serious circumstances, this Exchange can employ the measures as follows in accordance with the actual situations:

(1)

Giving warnings in oral or written form;

(2)

Making appointments for conversations;

(3)

Requiring the related investors to hand in promises in written form;

(4)

Limiting the transactions on the related securities accounts;

(5)

Reporting to the CSRC for freezing the related securities accounts or capital accounts; and

(6)

Reporting to the CSRC for investigating and handling.

If anyone holds objection to the measure prescribed in Item (4), he may hand in an application to this Exchange for review. The implementation of the aforesaid measure will not be suspended during the course of review.

Chapter VII Handling of Abnormal Situations in Trading

7.1

If any of the abnormal situations as follows in trading happens and which results in the failure of some or total transactions, this Exchange may determine a technical suspension of trading or a temporary speed bump:

(1)

The force majeure;

(2)

A fortuitous event;

(3)

A technical obstacle; or

(4)

Any other abnormal situation recognized by this Exchange.

7.2

If the market transmission is terminated or number of business departments that can not make declarations is more than 10% of the total amount of the business departments, this Exchange may carry out a temporary speed bump.

7.3

If this Exchange thinks that any abnormal situation in transaction prescribed in Article 7 .1 or 7.2 may occur and the normal operation of the transaction will be seriously influenced, it may determine a technical suspension of transaction or a temporary speed bump.

7.4

This Exchange shall make announcement about the determinations on technical suspension of transaction or temporary speed bump.

7.5

After eliminating the cause for technical suspension of transaction or temporary speed bump, this Exchange may determine to resume the trading.

7.6

Other than the special situations recognized by this Exchange, the declarations that the exchange server has accepted before the technical suspension of trading or temporary speed bump shall be valid on the day if the trading is resumed on the current day of the technical suspension of trading or temporary speed bump. If the exchange server continuously accepts the declarations during the course of technical suspension of trading or temporary speed bump, it will carry out the aggregate auction for the accepted declarations after the trading is resumed.

7.7

This Exchange will not be responsible for the liabilities for the losses due to the abnormal situations in trading or the corresponding measures employed by this Exchange.

Chapter VIII Trading Disputes

8.1

In the event of any trading dispute between the members or between the member and its clients, the related member shall record down the related conditions for this Exchange to consult. If the trading dispute causes affect on the normal trading, the member shall report it to this Exchange in time.

8.2

In the event of any trading dispute between the members or between the member and its clients, this Exchange may provide necessary trading data in accordance with the related provisions.

8.3

If the client has any doubt on the transactions, the member shall deal with it upon coordination.

Chapter IX Charges for Transactions

9.1

If a securities transaction is completed, an investor shall pay the commission to the member who purchases or sell securities on behalf of him in accordance with the provisions.

9.2

In accordance with the provisions, a member shall pay the fees for the member qualification, the transaction handling fees and other fees to this Exchange.

9.3

The charging items and rates for the securities transactions and the administrative measures therefor shall be carried out in accordance with the related provisions.

Chapter X Disciplinary Sanctions

10.1

In case a member in violation of this Regulations, this Exchange shall order it to make corrections and shall give single or concurrent punishment to it as follows in accordance with the severity of the circumstances:

(1)

Circulation of a notice of criticism under the scope of members;

(2)

Public reprimand on the mass media designated by the CSRC;

(3)

Suspension or limitation of transactions;

(4)

Revocation of the trading qualification; and

(5)

Revocation of the qualification of members.

10.2

In case a member objects to any of the sanctions mentioned in Items (2) through (5) of the preceding Article, it may hand in an application for review to the council of this Exchange within 15 days as of the day when the notice on the sanctions is received. The enforcement of related sanctions shall not be suspended during the course of review.

Chapter XI Supplementary Provisions

11.1

The other trading matters concerning the exchange traded funds, bonds, T-bond repurchase, warrants and other varieties shall be respectively instituted by this Exchange.

11.2

The time mentioned in these Regulations shall be the time in the exchange server of this Exchange.

11.3

This Regulations shall prevail in case there is any conflict between any provision of this Exchange concerning the abnormal fluctuation of the related stocks or funds and these Regulations.

11.4

When used in this Regulations, the following terms shall have the definitions as follows:

(1)

The "market" refers to the stock exchange set up by this Exchange.

(2)

The "listing" refers to the securities listed in this Exchange.

(3)

The "entrustment" refers to such an act that an investor specifically entrust the member to purchase and sell the securities.

(4)

The "declaration" refers to such an act that a member sends out orders about securities purchase and sales to the exchange server of this Exchange.

(5)

The "standard coupons" refers to that formed through the conversion of different varieties of bonds at the related conversion rates and used to make determination on the financing quota by t use of the pledge-type repurchase transactions.

(6)

The "best price" refers to the highest price for the buyer or the lowest price for the seller in the book of centralized orders. The "book of centralized orders" refers to the queue of all the uncompleted declarations in the exchange server at some point of time in accordance with the direction of the deal and the order of price and time priority.

(7)

The "invented reference opening price" refers to the price at which all the valid orders at some specific point of time are fictitiously transacted in accordance with the Regulations for aggregate auction and being revealed in real time.

(8)

The "invented matching amount" refers to the quantity for declaration of transactions to be fictitiously transacted at the invented reference opening price at some specific point of time and to be revealed in real time.

(9)

The "invented non-matching amount" refers to the remaining amount for declaration of the buyer or seller not to be fictitiously transacted at the invented reference opening price at some specific point of time and to be revealed in real time.

11.5

This Regulations shall go into effect upon adoption of the council of this Exchange and shall not become valid without approval of the CSRC, and it will be the same for the revision of this Regulations.

11.6

This Exchange shall be responsible for interpreting this Regulations.

11.7

This Regulations shall go into effect as of July 1, 2006.