Part I: Business Notice
As many types of investors are involved in this stock-for-stock merger of CMPD by CMSIZH and the business operations relating to the account conversion of different investors vary, in order to guarantee that all types of investors can conduct transactions smoothly after ZSJB shares are converted into CMSIZH A-shares, we hope that investors can carefully read the following instructions on the type of investors, confirm which one you fall into and read corresponding part in Part II “Operational Guidelines for Investors” herein to complete account conversion and subsequent business operations.
I. Classification of B-share Investors
Investor is classified into domestic investor, foreign investor for domestic transaction and foreign investor for non-domestic transaction in accordance with the identity type of the investor and declaration ways for future transactions.
| Type of Investor | Standard of Classification |
|---|---|
| Domestic individual investor | The domestic individual investor who opens a B-share securities account in domestic securities company and conducts transaction through the transaction system of domestic securities company |
| Foreign investor for domestic transaction | The foreign investor who opens a B-share securities account in domestic securities company and conducts transaction through the transaction system of domestic securities company |
| Foreign investor for non-domestic transaction | The foreign investor who opens an independent B-share securities account in foreign broker and conducts transaction through the foreign broker. |
II. Classification of Investors of Operational Guidelines
Account conversion procedures and subsequent operations involved in this stock-for-stock merger of CMPD by CMSIZH are classified and operated in accordance with the types of investor shown below. After confirming the type of B-share securities account, investor can understand his/her own type in accordance with the following standards of classification and accordingly read corresponding contents of this Guidelines to operate this account conversion business:
| Type of Investor | Standard of Classification | Corresponding Contents of Operational Guidelines |
|---|---|---|
| Domestic individual investor | The domestic individual investor who opens a B-share securities account in domestic securities company and conducts transaction through the transaction system of domestic securities company | Part II “Chapter I Domestic Individual Investor” |
| Foreign investor for domestic transaction | The foreign investor who opens a B-share securities account in domestic securities company and conducts transaction through the transaction system of domestic securities company | Part II “Chapter II Foreign Investor for Domestic Transaction” |
| Foreign investor for non-domestic transaction | The foreign investor who opens an independent B-share securities account in foreign broker and conducts transaction through the foreign broker. | Part II “Chapter III Foreign Investor for Non-domestic Transaction” |
III. Comparison Table of Main Differences between B-shares and A-shares
| Contents of Comparison | B-shares | A-shares |
|---|---|---|
| Trading date | Monday to Friday, trading suspended on Saturday, Sunday and national holidays | Monday to Friday, trading suspended on Saturday, Sunday and national holidays |
| Way of order quotation | Market order: The quotation is made at the market price and the declaration can only be made during continuous trading hours | Market order: The quotation is made at the market price and the declaration can only be made during continuous trading hours |
| Limit order: The quotation is made at a specified price | Limit order: The quotation is made at a specified price | |
| Continuous trading hours | 9:30 to 11:30 and 13:00 to 14:57 | 9:30 to 11:30 and 13:00 to 14:57 |
| Minimum declared quantity of buying for single transaction | 100 shares | 100 shares |
| Settlement system | T + 3 day | T + 0 day for shares, T + 1 day for funds |
| Margin trading | None | Yes |