Shenzhen Stock Exchange, Administration of Overseas Institution B-share Seats Rules

Issued: June 19 2002
Effective: as of date of issue
Interpreting authority: Shenzhen Stock Exchange
Applicability: An "overseas institution B-share seat" is defined as a seat used by an overseas institution upon approval by the Shenzhen Stock Exchange of its application therefor (Article 2).

Main contents: The Provisions contain seven parts dealing with, respectively, general provisions, seat application, seat administration, seat fees, dispute resolution and arbitration, penal provisions, and supplementary provisions.
When applying for a B-share seat, the overseas institution shall submit the following documentation to the exchange: a duplicate of the Qualification Certificate for Engagement in Foreign Investment Shares Business issued by the China Securities Regulatory Commission; a photocopy of the operating licence issued in the home jurisdiction; the most recent audited financial report; and the curriculum vitae of key directors, senior personnel and personnel handling B-shares (Article 5). The exchange will decide within 15 working days whether to approve the application (Article 6).
An overseas organization occupying a B-share seat can only engage in the trading of B-shares (Article 7). The seat is transferable with the approval of the exchange (Article Eight). The B-share seat holder should designate two contact persons (Article 9). The seat holder shall submit an annual auditor's report within four months after the end of each financial year (Article 12).A B-share seat fee of HK$600,000 and an annual management fee of HK$30,000 shall be paid (Article 14). The seat holder shall also pay handling fees and regulatory fees to the exchange (Article 16).
Disputes that cannot be resolved shall be put before the China International Economic and Trade Arbitration Commission (Article 18).
Related legislation: Stock Exchange Administration Procedures, Aug 21 1996, CLP 1996 No.7 p9 and Trading Rules of Shanghai and Shenzhen Stock Exchanges, Aug 31 2001, CLP 2001 No.8 p8
Repealed legislation: Shenzhen Stock Exchange, Administration of B-Share Special Seats Rules, Aug 12 1993