The Shanghai Stock Exchange (SSE) and China Securities Depository & Clearing Corp., Ltd. (CSDC) have jointly formulated the “Essential Articles of Entrustment Agreement for Buying and Selling Stocks of Listed Companies on the Stock Exchange of Hong Kong Ltd. (SEHK)” and the “Essential Articles of Trading Risk Disclosure Statement for Buying and Selling Stocks of SEHK-listed Companies” (See Attachments), in a bid to standardize securities companies’ business lines related to buying and selling stocks of SEHK-listed companies. The above two documents are hereby released, and all the relevant parties are required to abide by them.
Securities companies should, according to the above two documents, work out the “Entrustment Agreement for Buying and Selling Stocks of SEHK-listed Companies” (the “Entrustment Agreement” for short) and the “Trading Risk Disclosure Statement for Buying and Selling Stocks of SEHK-listed Companies” (the “Disclosure Statement” for short). Besides, they should, in accordance with the “SSE Guidance of Investor Suitability Management for Buying and Selling Stocks of SEHK-listed Companies”, formulate the operation guidance of investor suitability management for buying and selling stocks of SEHK-listed companies and relevant working systems, fully remind investors of major risks, especially explain to investors the differences between the two securities markets in Hong Kong and Shanghai, properly carry out the work of investor suitability management and the work of investor education, and take measures to learn and check the investors’ awareness of risks.
Since the release day of the notice, securities companies can sign the “Entrustment Agreement” and the “Disclosure Statement” with investors.