Shanghai Stock Exchange: Notice Of Adjustment To Scope Of Underlying Securities Of Margin Trading, Securities Lending

To fit for the growth of margin trading and securities lending, the Shanghai Stock Exchange (SSE) decides to adjust the scope of the shares used as underlying securities of margin trading and securities lending (the underlying shares for short) as required by the "SSE Detailed Rules for Implementation of Margin Trading and Securities Lending" (the “Detailed Rules” for short). It hereby notifies as follows:

1. The adjustment to the underlying shares’ scope: as required by Article 24 of the “Detailed Rules”, 300 kinds of shares are picked out according to the descending order of weighted appraisal indicators as well as the consideration of individual stocks and the market situation (see Attachment I for details).

The calculation method of weighted appraisal indicator: weighted appraisal indicator = 2 * (average float market capitalization of this kind of shares within certain period / average float market capitalization of SSE-listed A shares within certain period) + (average turnover of this kind of shares within certain period / average turnover of SSE-listed A shares within certain period).

2. For the ETFs used as underlying securities of margin trading and securities lending (see Attachment II for details), the scope of qualified securities representing margin and their conversion rates (see Attachment III for details) remain unchanged, while the risk control measures and information disclosure requirements for the ETFs are implemented according to those for shares.

3. All member units are required to prepare for relevant business and technical system for the adjustment to the underlying shares’ scope.

4. The Notice shall come into effect from January 31, 2013. The “Notice of Adjustment to Underlying Securities Scope of Margin Trading and Securities Lending” (Shang Zheng Jiao Zi [2011] No. 47 Document) issued by the SSE on November 25, 2011 shall be abolished.