Shanghai Stock Exchange, Administration of Special Overseas Members Tentative Provisions

Main contents: The Provisions state that PRC resident representative offices of overseas securities companies may become a special member of the Shanghai Stock Exchange upon approval of their applications by the exchange (Article 2). The Provisions also set forth the requirements that such representative offices must satisfy and the procedures that they must go through in order to become a special overseas member of the Shanghai Stock Exchange, including all the documents that must be provided (Articles 5 to 9). Part Three sets forth the rights and duties that a special member will possess after the Shanghai Stock Exchange has granted special membership. A special member will be allowed to attend the general meeting of members as a non-voting delegate, raise relevant proposals to the exchange, and use relevant services provided by the exchange (Article 10). The Provisions also stipulate that a special member has a duty to obey relevant PRC laws and exchange regulations and to pay all required fees (Article 11). Finally the Provisions lay out the procedures for termination of membership and the conditions under which the exchange may terminate membership as a penalty, among other disciplinary measures (Articles 14 to 18).