I. Bond Collateral Repo

Bond collateral repo is a kind of repo that securities company provide bonds as collateral, offer different fixed income products to their customers, when customers accept the repo rates, securities company borrow money from the customers, and returns money to the customers on maturity date with the corresponding returns.

Bond collateral repo was officially launched in December 2008. In May 2009, Guosen Securities Company started this business as the pilot broker. In November 2011, more pilot brokers joined.

Now there are 38 brokers which joined in this program. The turnover in 2012 is RMB 2.44 trillion, 4.52 times of that in 2011. The highest daily outstanding balance is RMB 26.1 billion, the average daily outstanding balance is RMB 14.8 billion.

II. A-Shares

The official name of the A-shares is RMB Common Stocks. It is issued by the company registered in mainland China, subscribed and traded by institutions, organizations, or individuals within the territory (excluding Taiwan, Hong Kong, Macao investors).

Trading unit for stock is 'share'. The purchases of stocks shall be in a round lot of 100 shares or the multiple thereof. The tick size of the quotation price of an order for A-shares is RMB 0.01. The Exchange imposes the daily price limit on trading of stocks, with a daily price up/down limit of 10% for stocks and a daily price up/down limit of 5% for stocks under special treatment (ST shares or ST shares). The price limit is calculated as follows: price limit = last closing price × (1± price up/down limit percentage) . Order types for A-shares are: limit order and market order.

III. Warrant

Warrant is issued by its securities issuer or a third party, entitles the holder to buy the underlying stock of the issuing company at a fixed exercise price until the expiry date, or settled by cash with settlement price difference.

The tick size for warrant is 0.001 RMB. The maximum quantity for a warrant order shall not be more than 1 million units. Purchases of warrant in trading shall be in a round lot of 100 units or the multiple thereof. Turn-around trades of warrants are available on the day of trading.

IV. IPO

An initial public offering (IPO) is a type of public offering where shares of stocks in a company are sold to the general public for the first time.

The minimum subscription quantity for a securities account is 1000 shares. Subscription quantity shall be in a round lot of 1000 shares or the multiple thereof.

For one stock, one single securities account could subscribe only once. The smallest size of order is 1000 shares.

Cancellation of subscription order is not accepted. The subscription runs from 9:30 to 15:00 for each subscription day.

V. Seasoned Equity Offering

A seasoned equity offering or secondary equity offering (SEO) is a new equity issue by an already publicly traded company.

The minimum subscription quantity for a securities account is 1000 shares. Subscription quantity shall be in a round lot of 1000 shares or the multiple thereof.

For one stock, one single securities account could subscribe only once. The smallest size of order is 1000 shares.

Cancellation of subscription order is not accepted. The subscription runs from 9:30 to 15:00 for each subscription day.

VI. Right Issue

A rights issue is an issue of rights to buy additional securities in a company made to the company's existing security holders. When the rights are for equity securities, such as shares, in a public company, it is a way to raise capital under a seasoned equity offering.

The way of submitting right issue order is the same as that of a trading order. The stock code for right issue is: 700**. Rights issue shares will be added into the securities account on right issue listing day.

VII. Open-ended Funds

An open-ended fund is in contrast with a closed-ended fund. The scale of the fund is unfixed with a collective investment scheme which can issue and redeem shares at any time. Investors may purchase fund units during its issuing period or through other authorized channels after issuing.

Investors can only subscribe open-ended funds by putting a ‘buy’ order.

Purchasing and redemption of the fund runs from 9:30 to 11:30, from 13:00 to 15:00 on each trading day. Investors should purchase the fund in amount and redeem it in units, and the purchase quantity shall be in a round lot of 100 shares or the multiple thereof. Redeem quantity shall be in integer units.

VIII. Closed-ended Funds

Closed-ended funds are with a fixed number of shares (or units). Unlike open-ended funds, new units in a closed-ended fund are not created by managers to meet demand from investors. Instead, the shares can only be purchased (and sold) in the exchange market.

The tick size of Closed-ended funds is RMB 0.001. The Exchange imposes the daily price limit on trading of Closed-ended funds, with a daily price up/down limit of 10%.

IX. ETF

Exchange Traded Fund (abbreviates as ETF) which is an investment fund traded in stock exchanges. ET tracks the fluctuation of an index, such as a stock index or bond index. ETFs may be attractive as investment products because of their stock-like features. ETFs are the most popular type of Exchange Traded Product (ETP).

ETF is a special open-ended fund that could be traded like close-ended funds and created and redeemed freely like open-ended funds.

The creation and redemption of ETFs shall be in a round lot of the minimum size of the creation and redemption unit or the multiple thereof.

The features of ETF：

The units created could be sold at the same day, but could not be redeemed at the same day.

The units purchased could be redeemed at the same day, but could not be sold at the same day.

The redeemed units could be sold at the same day, but could not be used for creation at the same day.

The units purchased could be used for creation at the same day, but could not be sold at the same day.

X. Tradable Fixed Income Products Listed on the Exchange

XI. Issuance of Bonds

source：SSE