Shanghai Stock Exchange Southbound Trading Entrustment Agreement
Party A: Name (or name):
Home address (or place of residence):
Name of legal representative (institutional client):
Personal ID number (individual client):
Company business license number (institutional client):
Contact information:
Party B: Pacific Securities Co., Ltd. Sales Department (Branch)
Address:
Contact information:
In accordance with the "Securities Law of the People's Republic of China", "Contract Law of the People's Republic of China", "Electronic Signature Law of the People's Republic of China" and other relevant laws, regulations, rules, self-regulatory rules, China In accordance with the business rules of the Depository and Clearing Co., Ltd. (hereinafter referred to as China Clearing) and the trading rules of the stock exchange, Party A and Party B have reached the following agreement (hereinafter referred to as the "Agreement") on Party A entrusting Party B to act as agent for southbound trading and other related matters. Both parties agree to abide by it.
The Southbound Connect mentioned in this agreement refers to the Southbound Connect under the Shanghai-Hong Kong Stock Connect. Party A, by signing this agreement, can only entrust Party B to buy and sell Southbound Stock Connect through the Southbound Connect under the Shanghai-Hong Kong Stock Connect. Securities purchased by Party A through the Southbound Connect under the Shanghai-Hong Kong Stock Connect cannot be sold through the Southbound Connect under the Shenzhen-Hong Kong Stock Connect; of Hong Kong Stock Connect selling.
Chapter 1 Statement and Commitment of the Parties
Article 1 Party A makes the following statement and commitment to Party B:
(1) Party A has read and fully understood The China Securities Regulatory Commission's "Several Provisions on the Trading Interconnection Mechanism between the Mainland and Hong Kong Stock Markets", the Shanghai Stock Exchange (hereinafter referred to as the Shanghai Stock Exchange) and China Securities Depository and Clearing Co., Ltd. (hereinafter referred to as the China Securities Depository and Clearing Co., Ltd.) business rules on Southbound Trading and Party B's other The "Shanghai Stock Exchange's Southbound Trading Risk Disclosure Statement" and other relevant documents provided indicate that Party A has the legal qualifications for Southbound Trading and is not prohibited by laws, administrative regulations, departmental rules, normative documents, business rules, etc. Situations that restrict or are not suitable for participating in Southbound Trading;
(2) Party A guarantees that all documents and information provided to Party B during the existence of its entrustment relationship with Party B are true, accurate, complete and legal, and The sources of funds used for southbound trading are legal and the country is guaranteed to comply with relevant national anti-money laundering regulations;
(3) Party A has clearly understood and is willing to bear the risks associated with southbound trading, and has read in detail All terms of this Agreement and an accurate understanding of their meanings, especially the disclaimer clauses regarding Party B;
(4) Party A promises to abide by the relevant laws, administrative regulations, departmental rules and norms of the Mainland and Hong Kong for southbound trading. stipulations such as legal documents, business rules, etc., and promises to handle the business in accordance with Party B’s relevant business processes;
(5) Party A promises that China Securities Clearing Co., Ltd. will hold the securities obtained through Southbound Trading on behalf of Party A in its name;
(6) Party A promises to follow the principle of caveat emptor and will not refuse to assume the responsibility for southbound trading and settlement on the grounds that it does not meet the investor suitability conditions;
(7) Party A guarantees that the contents of the above statements and commitments are his true wishes and voluntarily bears all consequences of false statements.
Article 2 Party B makes the following statement and commitment to Party A:
(1) Party B or the securities company to which Party B belongs is a securities business institution established and validly existing in accordance with the laws of the Mainland, with Corresponding securities brokerage business qualifications, and has opened the trading authority for Southbound Trading;
(2) Party B promises to abide by this Agreement and provide Party A with services related to Southbound Trading in accordance with the provisions of this Agreement;
(3) Party B promises to abide by relevant laws, regulations, rules, self-regulatory rules, China Clearing Business Rules, and stock exchange trading rules.
Chapter 2 Entrustment
Article 3 Party B accepts Party A’s entrustment to provide the following services:
(1) Accept and implement Party A’s compliance with this Agreement Legal and valid entrustment instructions issued in the manner agreed upon in the agreement;
(2) Clearing and settlement of funds and securities;
(3) Escrow for Party A’s purchase or other methods The securities obtained;
(4) The securities registration and clearing institution provides nominal holder services such as dividend distribution to Party A through Party B;
(5) Accept Party A’s Inquire about its entrustment, transactions and assets and changes in the account, and provide corresponding lists at Party A’s request;
(6) Relevant laws, administrative regulations, departmental rules, normative documents, business Party A may entrust Party B to carry out other activities as stipulated in the rules, as well as other entrustment matters agreed upon by both parties in accordance with the law;
Article 4 Before participating in Southbound Trading, Party A shall first conduct business activities in accordance with laws, regulations and relevant business rules. Open an account for securities transactions, clearing and settlement, interest calculation, etc. When Party B opens a securities account on behalf of China Securities Clearing Company, it shall abide by the relevant regulations of China Securities Clearing Company.
Party A can use its already opened Shanghai Stock Exchange A-share securities account (Shanghai Stock Exchange RMB common stock securities account) to conduct Southbound Trading.
Article 5 If Party A conducts new or changes designated transactions, it can only conduct Southbound Trading transactions from the next Southbound Trading Day.
Article 6 If Party A has transactions on the same day, declarations on the same day, unfinished settlement of transactions, or other circumstances stipulated in the Shanghai Stock Exchange and China Clearing Business Rules, Party A shall not cancel the designated transaction.
Article 7 Party A has known and acknowledged that: Compared with the free first-tier quotes of the Hong Kong securities market that it has obtained through paid methods, there are differences in refresh frequency, stall display, etc.; The party shall only use the above market information as an end user and shall not provide it to any institution or individual without the consent of The Stock Exchange of Hong Kong Limited (hereinafter referred to as the "Stock Exchange"), nor shall it be used to develop indices or other products; The exchange, its holding company, subsidiaries of the holding company and other market information providers will try their best to ensure the accuracy and reliability of the above-mentioned market information provided, but cannot ensure its absolute accuracy and reliability, and will not be responsible for any inaccuracies or omissions in the information. responsible for any loss or damage caused.
Article 8 The method for Party A to issue entrustment instructions to Party B shall be agreed upon by both parties. The methods for Party A to issue entrustment instructions to Party B include counter entrustment, self-service entrustment and other legal entrustment methods recognized by Party B. Self-service entrustment includes online entrustment, telephone entrustment, hot key entrustment, etc. The specific entrustment method shall be subject to actual activation.
Article 9 The content and method of the entrustment and revocation of entrustment issued by Party A when entrusting Party B to conduct Southbound trading shall comply with the relevant regulations of the stock exchange.
Article 10 When Party B accepts Party A’s entrustment instructions, if Party B is unable to execute Party A’s new entrustment instructions because Party A’s original entrustment instructions have not been revoked, the resulting consequences, risks and losses will , shall be borne by Party A.
Article 11 Party B provides Party A with services such as querying and printing transaction details through the counter system.
Article 12 Party A knows and acknowledges that ChinaClear completes the settlement of securities and funds for southbound trading with Hong Kong Clearing Company in accordance with the business rules of Hong Kong Securities Clearing Company Limited (hereinafter referred to as HKSCC). Domestic settlement of southbound trading is organized and completed by China Clearing in accordance with relevant business rules.
Article 13 The securities obtained by Party A through Southbound Trading shall be deposited in the Hong Kong Clearing Company in the name of China Securities Clearing Co., Ltd. and registered in the name of Hong Kong Securities Clearing Company (Agents) Co., Ltd. in the name of listed companies on the Stock Exchange. Register of shareholders. Party A cannot require the deposit or withdrawal of paper stocks, unless otherwise stipulated by the China Securities Regulatory Commission.
Chapter 3 Responsibilities and Disclaimers of Both Parties
Article 14 If Party A knows and acknowledges that if Hong Kong Clearing Company cannot deliver securities, China Clearing Company shall implement cash settlement with China Clearing Company with reference to Hong Kong Clearing Company Limited. The settlement processing principles shall be followed for corresponding business processing; if Hong Kong Clearing Company makes temporary special settlement arrangements due to typhoons, black rainstorms, etc., China Clearing shall refer to Hong Kong Clearing Processing Principles for corresponding business processing. Party A agrees that Party B conducts business processing in accordance with the business rules of China Clearing. If HKSCC fails to fully fulfill its settlement obligations to ChinaClear due to its bankruptcy, ChinaClear will assist in recourse to HKSCC but will not be responsible for any related losses arising therefrom.
Article 15 Party A agrees that Party B or the securities company affiliated to Party B shall complete centralized settlement with CSDC in its own name for Party A’s Southbound Trading transactions, and shall be handled by Party B or the securities company affiliated to Party B. For the settlement of southbound trading with Party A, Party A does not have a settlement relationship with China Clearing. Disputes between Party A and Party B, and between Party A and the securities company to which Party B belongs, will not affect the clearing, settlement and breach of contract handling that China Clearing Group is conducting or has conducted in accordance with the business rules.
Article 16 Party B or the securities company affiliated to Party B shall collect the securities and funds payable by Party A before centralized settlement on the settlement day. Party B or the securities company to which Party B belongs shall deliver the securities and funds receivable to Party A who has performed its delivery obligations normally.
Article 17 Party A knows and acknowledges that, on the premise of ensuring that no overdraft occurs in the client’s capital account, the time when funds receivable from Southbound Trading transactions can be used for buying transactions in the mainland securities market shall not be earlier than The corresponding trading day for the funds receivable from the relevant Southbound Trading transactions.
Article 18 Party A knows and acknowledges that during the clearing and settlement process, Party B or the securities company to which Party B belongs entrusts CSDC to handle the securities transfer between Party A and Party B or the securities company to which Party B belongs. pay.
Article 19 If Party A defaults on fund settlement and causes Party B or the securities company affiliated to Party B to default on CSDC, Party B or the securities company affiliated to Party B shall have the right to transfer Party A to the default settlement amount. Securities receivable are designated as non-deliverable securities and will be disposed of by CSDC in accordance with its business rules. The resulting risks, losses and responsibilities shall be borne by Party A.
Article 20 If Party A defaults on securities settlement, Party B and the securities company to which Party B belongs have the right to temporarily withhold funds equivalent to the default amount of securities settlement to Party A.
Article 21 If any of the following circumstances occurs, Party A has the right to claim rights against Party B, and Party B shall bear corresponding responsibilities and be responsible for compensation for losses:
(1) Party B or The securities company affiliated to Party B fails to complete the centralized settlement with China Clearing, resulting in the funds or securities receivable by Party A being temporarily withheld from delivery or disposal;
(2) Party B or the securities company affiliated to Party B has any objection to Party A The settlement default causes Party A to fail to obtain the securities or funds receivable;
(3) The securities transfer instructions regarding Party A sent by Party B or the securities company to which Party B belongs are incorrect;
(4) Other damages to Party A’s interests caused by Party B or the securities company to which Party B is affiliated failed to comply with relevant business rules.
Article 22 Party A knows and acknowledges that, in order to reduce the cost of funds in the entire market, China Clearing may, in accordance with the relevant business rules of Hong Kong Clearing, transfer Party A’s daily net sales of securities to Hong Kong Clearing Submitted as delivery collateral.
Article 23 When Party A entrusts Party B to buy and sell securities, it shall ensure that there are sufficient funds or securities in its account, and agree to reserve part of the funds in the account according to the standards stipulated by Party B or as stipulated by Party B. Party B will freeze the transaction funds when entrusting the declaration to ensure that it assumes the corresponding clearing and settlement responsibilities according to the transaction results. Otherwise, Party B has the right to reject Party A's entrustment instruction.
Article 24 When Party A has insufficient funds or securities and Party A succeeds in buying or selling due to abnormal reasons, Party A shall be responsible for the return of overdraft funds or short-selling securities, and Party B shall Party A's funds and securities may be disposed of, including but not limited to restrictions on withdrawals and transactions, liens, deductions, forced liquidation, etc. All losses and legal consequences caused thereby shall be borne by Party A and any losses caused to Party B Party B has the right to recover compensation for losses.
Article 25 If Party A entrusts Party B to buy or sell securities, it shall pay transaction fees, trading system usage fees and other fees in accordance with the market charging standards of the Stock Exchange, and pay stamp duty, etc. in accordance with relevant regulations in Hong Kong. taxes.
Article 26 Party A must pay Party B the securities portfolio fees it shall bear during the unspecified trading period.
Article 27 Party A knows and acknowledges that the Shanghai Stock Exchange and China Clearing Corporation Limited are not responsible for losses caused by the formulation and modification of business rules by the Shanghai Stock Exchange and China Clearing Corporation Limited, and the performance of self-regulatory duties in accordance with the business rules; because The Shanghai Stock Exchange and the Shanghai Stock Exchange Securities Trading Service Company are not responsible for losses caused by abnormal trading conditions or related measures taken by the Shanghai Stock Exchange and the Shanghai Stock Exchange Securities Trading Service Company. Party A shall not claim compensation or other liabilities from Shanghai Stock Exchange, Shanghai Stock Exchange Securities Trading Service Company or China Securities Clearing Company based on the above reasons.
Party A should pay special attention to the fact that for the southbound trading entrustment agency business, China Clearing does not provide services such as new share issuance subscription, excess rights issue and excess public allotment, and Party A cannot enjoy the above services.
Chapter 4 Dispute Resolution
Article 28 If there are any issues or disputes involving Party A’s property inheritance or property ownership, Party B will handle it in accordance with the relevant business rules issued by China Clearing , or proceed according to the notarized document issued by the notary office or the effective judgment document issued by the judicial authority.
Article 29: If any dispute arises during the execution of this agreement, Party A and Party B may resolve it through negotiation on their own or apply to the Securities Dispute Mediation Center of the China Securities Association for mediation. If negotiation or mediation fails, both parties agree to resolve the dispute in accordance with the following provisions. Solution: (If Party A does not make a choice, the default is option 2)
1. Submit to the arbitration committee for arbitration;
2. File a lawsuit with the court where Party B is located.
Chapter 5 Effectiveness, Change and Termination of the Agreement
Article 30 This Agreement can be signed electronically or on paper.
If this Agreement is signed electronically, Party A shall sign it with an electronic signature; if this Agreement is signed on paper, Party A is an individual, and the entrustment agreement shall be signed by Party A himself; Party A is an institution. , the entrustment agreement shall be signed by the legal representative or authorized representative and stamped with the official seal. If the manager of securities investment products implements investment management, he shall sign an entrustment agreement as Party A.
This agreement will take effect on the date when the following conditions are met:
(1) If this agreement is signed in paper form, both parties have signed and sealed this agreement ; If this agreement is signed electronically, Party A signs this agreement electronically, and the electronic contract and the paper contract have the same legal effect.
(2) Party A and Party B have signed the "Agreement on Securities Brokerage Business and Value-Added Services", and the "Agreement on Securities Brokerage Business and Value-Added Services" has come into effect.
Chapter 6 Supplementary Provisions
Article 31 If there is no agreement in this agreement, refer to the "Customer Account Opening Agreement", "Securities Brokerage Business and Value-Added Services Agreement", " "Designated Transaction Agreement", "Online Entrustment Agreement" and "Shanghai Stock Exchange Individual Investor Behavior Guidelines" shall be implemented.
Article 32 The interpretation of nouns and terms involved in this agreement shall be subject to the provisions of laws and regulations; if there is no explanation in laws and regulations, the provisions of the China Securities Regulatory Commission, stock exchanges, China Securities Depository and Clearing Corporation Limited and China Securities Regulatory Commission shall apply. Industry associations and other normative documents, business rules and industry practices.
Article 33 Before signing this agreement, Party A has read this agreement and all its attachments in detail, and has no objection to the textual expression of this agreement and all its attachments.
Party A (personal signature/organization seal): Party B (signature and seal):
Authorized agent’s signature Party B’s manager (signature and seal):
(Signature of the legal representative or authorized representative of the organization):
Signature date: year month day Signature date: year month day