Administrative
Rules of Shenzhen Special Economic Zone on the Trading Market of
Metallic Materials
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(adopted
at the 82nd meeting of the Executive Committee of Shenzhen
Municipal People' s Government
on June 4, 1994, revised in
accordance with the Decision on Adjusting Eighteen Rules, such
as the
Provisional Administrative Rules of Shenzhen Special
Economic Zone on the Market of Gold and Silver, which is adopted
at the 122nd meeting of the Executive Committee of the Second
Shenzhen Municipal People' s Government
on December 3,1998.)
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Chapter
Ⅰ General Provisions
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Article 1
In order to standardize the business transaction in trading
market of metallic materials, maintain
the order in trading
market of metallic materials and promote the circulation of
commodities, these
rules are formulated according to the
provisions of relevant law and regulations, in combination with
the accrual circumstances of Shenzhen trading market of metallic
materials.
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Article
2
The Shenzhen trading market of metallic materials (hereinafter
referred to as the trading market)
is a centralized trading
market, which is promoted by promoters and formed by member
units with
joint investment according to these rules, and
engages in bulk commodity transactions of black metallic
materials (hereinafter referred to as metallic materials).
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Article
3
The trading market shall be operated and managed by nonprofit
corporation, which is setup according
to these rules.
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Article
4
These rules shall be applicable to the spot trading of bulk
commodities of metallic materials in
the trading market, and the
trading of bulk commodities of metallic materials in the form of
medium-term
or long-term purchase-and-sale contract.
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Chapter
Ⅱ Administrative Committee of Shenzhen Trading Market of
Metallic Materials
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Article 5
The administrative committee of Shenzhen trading market of
metallic materials (hereinafter referred
to as the committee)
shall be established to coordinate, administer and supervise
transactions
in the name of the municipal government. The
committee shall be composed of relevant departments of the
municipal government.
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The
working office of committee shall be set up in the municipal
bureau of trade and development,
and shall take charge of the
daily supervision on the trading market.
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Article
6
The committee has the following main functions:
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1、
examining and
finalizing the Business Rules of Shenzhen on the Trading Market
of Metallic Materials
and other rules and regulations, and
organizing the implementation according to these rules;
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2、
coordinating the
relations among relevant policies, departments or areas involved
in the operation
of trading market;
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3、
administering
and supervising the trading market, taking reasonable measures
and procedures to stop
and punish the illegal activities in
transactions, and maintaining the normal order in the trading
market;
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4、
directing the
business activities in the trading market;
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5、
hearing the working reports of the
trading market' s board of directors and supervisory board
regularly,
and directing their work;
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6、
examining the trading market' s
application of shutting down the market, suspending the market,
or opening the market again under special circumstances.
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Chapter
Ⅲ Trading Market
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Article
7
The promoters of trading market shall drawing up the
constitution of trading market.
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The
constitution of trading market shall comply with the following
aims and purposes:
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1、
contributing to
the fair conduction of business, and the protection of members
and clients' interests;
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2、contributing
to prevent the activities of fraud, playing the market,
collecting unreasonable handling
fees and other illicit
activities to gain profits;
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3、
the trading
market being entitled to refuse the member, which is ordered to
stop transaction, to
transact in the trading market, or refuse
the unit, which is imposed removal penalty, to enter the trading
market and become a member;
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4、
safeguarding the
members' voting rights on the amendment of constitution,
business rules or other
rules and regulations, the selection and
appointment of senior staff members and other important matters.
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Article
8
The business of trading market shall be restricted to providing
centralized trading market of metallic
materials and relevant
services.
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The
trading varieties in the trading market shall be restricted to
metallic materials.
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Article
9
The business rules of trading market shall be drafted according
to these rules, and be submitted
to the committee for
examination and finalization. The business rules of trading
market shall stipulate
the following items:
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1、the
categories of trading;
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2、the
specific varieties and specifications of metallic materials and
the minimum unit of per trading;
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3、the
time to open and close market;
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4、the
closure of market;
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5、the
means of concluding contracts;
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6、the
means of delivery and settlement.
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Article
10
Anyone, who wants to engage in metallic materials transaction
in the trading market, shall conclude a dealing contract.
The
content and form of dealing contract shall comply with relevant
provisions of the Law of People'
s Republic of China on
Economic Contracts.
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Article
11
The transaction report of the trading market shall be made
regularly and be submitted to the municipal
bureau of trade and
development.
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Article
12
In order to maintain the order of trading market and prevent
abnormal factors from interfering
dealing prices, the committee
may take administrative measures to prevent prices from rising
or
falling. In order to protect public interests, the committee
may order the trading market to be closed down temporarily
under
natural disaster, war or other events of force majeur.
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Article
13
The settling institute shall be set up in the trading market,
and shall conduct uniform settlement
to transactions in the
trading market.
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Article
14
The membership system shall be implemented in the settling
institute. The member of settling institute
shall meet the
following requirements:
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1、being
a business corporation registered in China;
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2、having
a registered capital of no less than 20 million yuan;
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3、being
a member of the trading market, or being a financial or
insurance institution;
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4、paying
capital reserve of trade loss to the settling institute, or
providing corresponding guarantee.
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Article
15
Anyone, who deals without the membership of settling
institute, shall settle account via a member of the settling
institute, and pay the settling service fees at certain ratio.
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The
charging standard of settling service fees stipulated in the
preceding paragraph shall be examined
and decided by the
municipal department of price.
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Article
16
The settling institute is liable to urge and supervise both
parties to fulfill the dealing contract
upon its conclusion, and
is liable to fulfill the contract substituting the delinquent
party. The
settling institute has the right to deduct the sum of
loses, resulted from breaching of contract, from the guaranty
bond of the delinquent party. If the guaranty bond of the
delinquent party is not enough to pay
for actual losses, the
settling institute has the right of recourse.
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Chapter
Ⅳ Members of the Trading Market
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Article
17
The member system shall be implemented in the trading market.
The member of trading market shall
satisfy the following
requirements:
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1、being
a business corporation registered in China;
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2、having
a registered capital of no less than 5 million yuan (RMB, the
same below);
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3、having
an annual sales amount of no less than 100 million yuan;
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4、having
good commercial credit.
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Article
18
Anyone, who satisfies the requirements stipulated in the
preceding article, recognizes the constitution
of trading
market, and fills in the Membership Application Form for the
Shenzhen Trading Market
of Metallic Materials, will be granted a
membership card by the committee and become a member of the
trading market after the trading market submitting the
application with its comment to the committee for examination
and approval.
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Article
19
Members shall pay capital subscription to the trading market
according to the provisions of constitution.
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Article
20
Members shall pay the dealing guarantee bond and delivery
settlement fund to the trading market
according to the
provisions of constitution, and shall pay the dealing service
fees according to
the trading amount.
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The
charging standard of dealing service fees stipulated in the
preceding paragraph shall be examined
and decided by the
municipal department of price.
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Article
21
A member may transfer his share of rights according to the
provisions of constitution, but shall
report to the trading
market for approval. When a member transfers his share of rights
to a nonmember,
the transferee shall satisfy the requirements
stipulated in Article 17 of these rules and conduct the
admission formalities of the trading market according to the
provisions of Article 18 of these rules.
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Article
22
The member of trading market may delegate one or two trading
representatives to conduct transaction
in the trading market.
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Article
23
The trading representative shall satisfy the following
requirements:
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1、having
full capacity for civil conduct;
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2、having
the knowledge on finance and market, and certain working
experience corresponding with the
business he undertakes;
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3、having
never been imposed of criminal responsibility;
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4、having
passed the examination and acquired the Qualification
Certificate of Trading Representative
issued by the trading
market.
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No
one may conduct transaction in the trading market without the
Qualification Certificate of Trading
Representative.
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Article
24
The trading representative shall conduct transaction in the
trading market according to the authorization
of member unit' s
legal representative, and the instruction of member unit.
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The
contract, which is concluded by a trading representative in the
trading market within the scope
of authority referred to in the
preceding paragraph, shall have legal binding force after it is
verified by the trading market.
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Chapter
Ⅴ Organizational Structure of the Trading Market
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Article 25
The general meeting of trading market is the highest organ of
power. It has the following main
functions and powers:
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1、adopting
and amending the constitution of trading market;
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2、discussing
the working report of board of directors;
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3、discussing
the financial report of trading market;
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4、electing
the board of directors and supervisory board of trading market;
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5、other
important matters that shall be decided by the general meeting
of members.
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Article
26
The convening procedures and debate rules of the general meeting
of members shall be stipulated
in the constitution of trading
market.
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Article
27
The board of directors is the policy-making organ of the
operation and management of trading market.
It has the following
main functions and powers:
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1、implementing
the decisions of general meeting of members;
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2、putting
forward proposals of amending the constitution or the trading
rules of trading market;
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3、examining
the qualification of the unit, which applies for membership of
the trading market;
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4、appointing
senior officers of the trading market, such as the president,
vice president, and chief
accountant;
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5、deciding
important internal affairs of the trading market;
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6、other
functions and powers authorized by the constitution or the
general meeting of members.
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Article
28
The board of directors shall be composed of 15 members, 12 of
whom shall be member directors and
the rest 3 shall be nonmember
directors. The member directors shall be selected from members
by
the general meeting of members. The nonmember directors
(including the president of trading market) shall be nominated
by the committee from the representatives of relevant
organizations and professional staff, and
adopted by the general
meeting of members.
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Article
29
The board of directors shall have one chairman, and one to three
vice chairmen, who shall be elected
by and from all directors.
The election result shall be submitted to the municipal bureau
of trade
and development for record.
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Article
30
The president of trading market shall be appointed by the
committee from the nonmember directors.
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Article
31
The president of trading market shall represent the trading
market externally, and take charge
of the daily work and
management of trading market internally. He has the following
main functions
and powers:
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1、organizing
the implementation of decisions of the general meeting of
members or the board of directors,
and reporting work to them;
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2、taking
charge of daily transactions and executive management of the
trading market;
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3、nominating
senior officers, such as the vice president and chief
accountant, deciding the appointment
and dismissal of the person
in charge and staff of trading market' s internal organ;
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4、handling
relevant affairs in the name of the trading market externally.
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Article
32
The Trading market shall have a supervisory board. The
supervisory board shall be composed of 7
members, 3 of whom
shall be member supervisors elected from members by the general
meeting of members,
4 of whom shall be nonmember supervisors
elected from the representatives of relevant organizations and
professional staff by the general meeting of members.
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A
supervisor may not be served by a director or serve as a
director concurrently.
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Article
33
The supervisory board shall take charge of supervising the
business and financial situation of
the trading market. The
supervisory board shall have the following main functions and
duties:
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1、supervising
and inspecting transactions in the trading market according to
the provisions of national
law, regulations and government
rules;
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2、examining
the implementation of the rules and regulations of the trading
market;
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3、examining
the business and financial situation of the trading market;
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4、accepting
members' complaints and maintaining members' legal rights
and interests;
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5、mediating
and handling the disputes aroused from members when trading in
the trading market;
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6、other
functions and powers stipulated by the constitution of trading
market.
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Article
34
The convening procedure and debate rules of the supervisory
board shall be stipulated by the constitution
of trading market.
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Chapter
Ⅵ Self-operated Businesses and Transactions on Commission in
the Trading Market
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Article 35
The self-operated business in the trading market (hereinafter
referred to as the self-operated
business) refers to the
activity that a member buys or sells metallic materials in the
trading
market by himself.
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The
transaction on commission in the trading market (hereinafter
referred to as the transaction
on commission) refers to the
activity that a member buys or sells metallic materials in the
trading
market for his client.
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Article
36
Only members of the trading market may engage in self-operated
businesses or transactions on commission
of metallic materials
in the trading market.
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Article
37
Any member, who plans to engage in transactions on commission,
shall apply to the trading market.
The application shall be
submitted to the committee for approval with the comment of
trading market.
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Article
38
The member, who engages in self-operated businesses and
transactions on commission concurrently,
shall separate the two
businesses apart.
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Article
39
When trading for a client, the member shall open a separate
account for the client, and regularly
report to the client about
the income and expenses of cash or other properties.
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Article
40
When engaging in transactions on commission, the member shall
transact according to the matters
or conditions entrusted by the
client. The member shall not accept a client' s dealing
commission
of deciding the trading variety, amount, price or
delivery time for him.
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Article
41
When a transaction is concluded, the member engaging in
transactions on commission shall make a
written conclusion
report immediately, and deliver it to the client.
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Article
42
The client has the right to look up his account at any business
hour.
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Article
43
The member shall regularly deliver the written operation report
of self-operated business or transaction
on commission to the
trading market. The trading market shall collect all reports and
submit them
to the municipal bureau of trade and development.
The municipal bureau of trade and development has the right to
look up members' business records and account books of
self-operated business or transaction on
commission at any
business hour when necessary.
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Article
44
Any one of the following activities may not be committed in the
trading market, or by its manager,
member or business personnel.
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1、disclosing
the client' s entrusted matters or other relevant secrets;
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2、promising
the client to gain profits;
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3、agreeing
on sharing interests or bearing losses with the client;
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4、transacting
for himself by using the client' s account or name;
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5、accepting
the entrustment of a client, who has not completed the
formalities of opening account,
and transacting,
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6、making
exaggerate advertisement or spreading untrue information to the
client.
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Article
45
No unit or individual is allowed to commit any one of the
following activities in the trading market:
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1、using
inside information to transact;
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2、continuously
buying or selling the same kind of metallic material at raising
price with the aim
to play the market;
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3、fabricating
or spreading false or misleading information;
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4、two
or more units colluding with each other in private,
simultaneously buying or selling the same
kind of metallic
material, and producing false supply and demand situation or
price;
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5、manipulating
or disturbing the trading order by other direct or indirect
means.
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Chapter
Ⅶ Settlement of Trading Disputes
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Article
46
The settlement of dispute, which is aroused from transaction in
the trading market and between
members, clients, or a member and
a client, shall be negotiated by the disputing parties in time.
If the negotiation is failed, the disputing parties may apply to
the supervisory board of trading market for
mediation or
settlement according to their agreement.
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The
supervisory board shall make a decision of mediation or
settlement according to the constitution
and business rules of
the trading market.
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Article
47
Any member, who refuses to carry out the decision of mediation
or settlement made by the supervisory
board, may be ordered by
the committee to stop trading business for 3 to 6 months or
forever.
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Article
48
The disputing parties shall carry out the decision of
mediation or settlement made by the supervisory board. If the
party is not agreed with the decision or refuses to carry it
out, the other party may apply for
arbitration to the
arbitration organ of economic contracts according to their
agreement, or bring
a lawsuit before the people' s court
according to law.
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Article
49
The dispute, which is aroused from transaction and between a
member and the trading market, shall be settled according
to the
provisions of the constitution and business rules of the trading
market.
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Chapter
Ⅷ Penalty Provisions
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Article 50
Any member, who violates the provisions of Article 38, Article
39, Article 40 or Article 41 of these rules, and causes
losses
to the client, shall bear the liability of compensation with the
person directly liable.
The member may be ordered to make
correction by the committee, and shall be investigated and
punished
by the municipal administrative department of industry
and commerce if the circumstance is serious.
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Article
51
In case that the trading market or its manager, member unit,
trading representative of member unit, or other business
personnel violates the provisions of Article 44 of these rules
and causes losses to the client,
the person liable shall be
investigated for legal liability. Besides, the unit, which is
represented
by the person liable, shall bear the joint liability
of compensation.
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Article
52
Any unit or individual, who violates the provisions of Article
45 of these rules, disturbs the order of trading market
and
damages the trading parties' interests or social public
interests, shall bear the liability
of compensation, and shall
be imposed a fine of less than one time of the illegal operation
income
by the municipal administrative department of industry
and commerce.
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Chapter
Ⅸ Supplementary Provisions
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Article 53
The municipal bureau of trade and development may draw up
concrete administrative measures according
to these rules and
implement them after they are examined and finalized by the
committee.
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Article
54
These rules shall go into effect as of the date of
promulgation. |