Circular on Promulgating the Implementing Rules of the Shenzhen Stock Exchange for the Stock-selling by Shareholders, Directors, Supervisors, and Senior Management Members of Listed Companies

May 27, 2017

All market participants,

Recently, the China Securities Regulatory Commission has revised and promulgated the Several Provisions on the Stock-selling by Shareholders, Directors, Supervisors and Senior Management Members of Listed Companies (Announcement of the China Securities Regulatory Commission [2017] No.9). In accordance with such Provisions and relevant laws and standards, the Shenzhen Stock Exchange (hereinafter referred to as the "SZSE") has formulated the Implementing Rules of the Shenzhen Stock Exchange for the Stock-selling by Shareholders, Directors, Supervisors, and Senior Management Members of Listed Companies (hereinafter referred to as the "Rules"), which have been approved by the China Securities Regulatory Commission for implementation with effect as of the date of issue. The relevant matters are hereby announced as follows:

I. All listed companies are asked to step up publicity and education with respect to the Rules, and call attention of the relevant shareholders, directors, supervisors and senior management members to strict compliance with the Rules. It should be particularly called to attention that after the promulgation of the Implementing Rules, where a controlling shareholder, a shareholder holding 5% or more of the stocks or a director, supervisor or senior management member of a listed company who plans to sell the stocks held in the company by means of centralized trading shall report the stock-selling plan to the SZSE at least 15 trading days prior to the initial sale and release an announcement thereof.

II. Before completing the commissioning of the technical system jointly with the technical systems of securities companies, the SZSE will process the stock-selling by shareholders by means of block trade under relevant interim arrangements in accordance with the Rules.

III. All SZSE member institutions are asked to step up publicity and investor education with respect to the Rules, and effectively carry out various technical and business preparation and implementation pursuant to the Rules and relevant requirements of the SZSE.

IV. The SZSE exercises oversight over the relevant stock-selling behaviors. If any violation is found, regulatory measures shall be taken or disciplinary sanctions shall be imposed pursuant to business rules; if the circumstances are serious, the violation shall be reported to the China Securities Regulatory Commission for handling.

V. In the case of any questions in the implementation of the Rules, the SZSE can be reached for enquiry at: telephone: 400-808-9999; email: cis@szse.cn.

The Circular is hereby given.