TRANSACTION REGULATIONS OF SHANGHAI STOCK EXCHANGE

All the member entities:

The Transaction Regulations of Shanghai Stock Exchange upon approval of China Securities Regulatory Commission (CSRC) is herby promulgated
and shall go into effect as of July 1, 2006, and the related detailed regulations for business operations shall be separately promulgated.

Shanghai Stock Exchange

May 15, 2006

Transaction Regulations of Shanghai Stock Exchange
Chapter I General Provisions

1.1

In order to regulate the transactions in the securities market, maintain the order of the securities market, and protect the lawful
rights and interests of investors, this Regulations is instituted in accordance with the Securities Law of the People’s Republic
of China and other laws, administrative regulations, ministerial regulations and the Articles of Association of Shanghai Stock Exchange.

1.2

The transactions in respect of the listed securities and their derivatives (hereinafter referred to as securities uniformly) of Shanghai
Stock Exchange (hereinafter referred to as this Exchange) shall be governed by these Regulations. Any matter that has not been prescribed
by these Regulations shall be governed by other related provisions of this Exchange.

1.3

The securities transactions shall follow the principles of openness, fairness and equity.

1.4

The securities transactions shall comply with the laws, administrative regulations, ministerial regulations and the related business
operational regulations of this Exchange, and the principles of free will, compensation and good faith.

1.5

The securities transactions shall employ the paperless centralized transactions and other methods upon the approval of CSRC.

Chapter II Trading Market

Section 1 Trading Places

2.1.1

This Exchange will offer trading places and facilities for the securities transactions, such as the exchange server, trading hall,
trading seats, offering system and related communications systems.

2.1.2

This Exchange sets up the trading hall. The members of this Exchange (hereinafter referred to as the member) may make declarations
by the traders assigned by them to the trading hall.

Except the special approval of this Exchange, those who allowed to enter into the trading hall shall be limited to the persons as
follows:

(1)

The registered traders; and

(2)

The personnel in the hall for supervision.

Section 2 Trading Participants and Trading Rights.

2.2.1

If a member or institution upon approval of this Exchange wants to enter into the market of this Exchange for the securities trading,
he/it shall hand in an application to this Exchange for getting a related seat or trading rights and becoming a trading participant
of this Exchange.

A trading participant shall do the securities trading through the Participant Business Unit opened upon application in this Exchange.

2.2.2

The “Participant Business Unit” refers to such a basic unit that a trading participant can take part in the securities trading of
this Exchange, enjoy and perform the related trading rights and accept the related business management of this Exchange.

2.2.3

The detailed Regulations for the management of Participant Business Unit and the limits of trading rights shall be respectively instituted
by this Exchange, and go into effect after being reported to and approved by the CSRC.

Section 3 Trading Varieties

2.3.1

The securities as follows may be listed in this Exchange:

(1)

Stocks;

(2)

Funds;

(3)

Bonds;

(4)

Treasury bonds repurchase (T-bond repurchase) ;

(5)

Warrants; and

(6)

Other trading varieties upon approval of the CSRC.

Section 4 Trading Hours

2.4.1

The trading days of this Exchange are from Monday to Friday every week.

On State legal holidays and the rest days announced by this Exchange this Exchange will rest.

2.4.2

Where the securities are traded by means of competitive bidding, 9:15 to 9:25 in every trading day shall be the time for the aggregate
auction of opening quotation; 9:30 to 11:30 and 13:00 to 15:00 shall be the time for continuous auction, except for the securities
to which the suspending trading and then the resumption of trading are implemented during the course of opening.

As approved by the CSRC and in accordance with the demands of the market development, the trading hours may be modulated by this Exchange.

2.4.3

In case the trading is suspended because of some reason within the trading hours, the trading hours will not be put off.

Chapter III Purchase and Sales of Securities

Section 1 General Provisions

3.1.1

Accepting the entrustment of purchase and sales from an investor, any member shall make declaration to this Exchange in accordance
with the entrustment, and be responsible for the related liabilities of trading and delivery.

If any member accepts the entrustment of purchase and sales from an investor and the transaction is completed, the investor shall
deliver the member with the securities it/he entrusts the member to sell out or the money by which it/he entrusts the member to buy
securities, as well as the member shall deliver the investor with the money gotten from the sales of securities or the securities
as purchased.

3.1.2

A member shall send out declaration orders of purchase or sales to the exchange server of this Exchange by the Participant Business
Unit it owns or other related sending means, and make conclusion of the transactions in accordance with this Regulations, and the
trading results and other trading records shall be sent to the member by this Exchange.

3.1.3

The entrustment and declaration records shall be properly kept by a member in accordance with the related provisions.

3.1.4

The securities purchased by any investor shall not be sold out before the delivery thereof, except that a turnaround transaction
is carried out.

The “securities turnaround transaction” refers to the securities which are purchased by an investor and will be totally or partly
sold out before the delivery upon the confirmation of the transaction.

3.1.5

Same-day turnaround transactions will be carried out for the bonds and warrants repurchase, and the next-trading-day turnaround transactions
will be carried out for B-shares.

3.1.6

This Exchange may carry out the system of primary dealers in accordance with the demands of the market, and the concrete measures
there for shall be respectively instituted by this Exchange and shall go into effect after being reported to and approved by the
CSRC.

Section 2 Designated Transactions

3.2.1

A system of all-around designated transactions shall be carried out for the securities trading in the market of this Exchange, except
for the foreign investors engaging in the B-share trading.

3.2.2

The “all-around designated transactions” means that an investor taking part in the securities sales in the market of this Exchange
shall designate a member ahead of time as its/his trustee of securities sales, and take part in purchasing or selling the securities
in the market of this Exchange through this member.

3.2.3

An agreement on designated transactions shall be reached between the member of designated transactions and an investor and in which
the rights, obligations and duties of both parties shall be made sure. Once the agreement on designated transactions is reached,
the member can hand in an application to the exchange server of this Exchange for dealing with the formalities for designated transactions
with the strength of the application of the investor.

3.2.4

This Exchange will accept the declaration orders for designated transactions during the period of opening, and these orders will
become valid immediately after being accepted by the exchange server.

3.2.5

If changing any designated transaction, an investor shall apply for cancellation to the designated member, and the member will make
declaration to cancel the order. As to the applications in line with the requirements for canceling the designation, no member may
limit, prevent or delay the formalities for dealing with the designation cancellation.

3.2.6

A new declaration for designated transactions may be made after the designated transactions are cancelled.

3.2.7

Other matters concerning designated transactions shall be carried out in accordance with the related provisions of this Exchange.

Section 3 Entrustment

3.3.1

When an investor buys or sells the securities, a securities account and a capital account shall be opened, and an entrustment agreement
on securities transactions shall be signed with a member. After the agreement goes into effect, the investor will become the client
of brokerage business of this member (hereinafter referred to as the client).

Investors shall deal with the opening of securities accounts in accordance with the provisions of the registration and clearing institutions
designated by this Exchange.

3.3.2

A client may entrust a member to buy or sell the securities by the self-help entrustment methods such as letters, phone calls, self-help
terminals, internet. The entrustment by phone calls, self-help terminals, internet and other self-help methods shall be dealt with
in accordance with the related provisions.

3.3.3

If a client taking part in the purchase or sales of securities by any self-help entrustment method, the member shall sign a self-help
entrustment agreement with the client.

3.3.4

Except otherwise herein provided for by this Exchange, an entrustment instruction of any client shall consist of:

(1)

The number of the securities account;

(2)

The code of the securities;

(3)

The direction of the deal;

(4)

The entrustment quantity;

(5)

The entrustment price; and

(6)

Other contents required by this Exchange and the member.

3.3.5

A member may be entrusted by a client to purchase or sell the securities by means of limit price order or market price order.

The “limit order” means that a member shall be entrusted by the client to buy or sell the securities at the prescribed price, and
a declaration shall be made by the member for purchasing the securities at the prescribed price or at a lower price and a declaration
shall be made for selling out the securities at the prescribed price or at a higher price.

The “market order” means that a member is entrusted by the client to buy or sell the securities at the market price.

3.3.6

Upon entrustment, a client may cancel the unconcluded transaction.

3.3.7

As to the entrustment cancelled or invalidated, upon confirmation, a member shall return the related capital or securities to the
client in time.

3.3.8

A member providing the securities financing services through the securities sales for its clients shall act in accordance with the
related provisions.

Section 4 Declaration

3.4.1

This Exchange will accept the declarations of competitive bidding of the members at 9￿￿5 to 9￿￿5, 9￿￿0 to 11￿￿0 and 13￿￿0 to
15￿￿0 every trading day.

The exchange server of this Exchange will not accept the declarations for the cancellation of orders at 9:20 to 9:25 of the aggregate
auction of opening quotation every trading day, and the transactions that haven’t been completed can be cancelled at any other time
for accepting declarations. And a declaration for cancellation will not become valid without confirmation of the exchange server
of this Exchange.

If it is considered to be necessary, this Exchange can make modulation on the time for accepting the declarations of the members.

3.4.2

Declarations shall be made in time by a member to this Exchange in accordance with the order by which it accepts the entrustments
of its clients.

3.4.3

This Exchange will accept the limit orders and market orders of the members.

3.4.4

In accordance with the demands of the market, this Exchange may accept the market orders of the types as follows:

(1)

The declaration of the conclusion of transactions at the best five prices and in real time and the cancellation of remaining orders,
namely, the transactions shall be completed in turn by taking the price of the counterpart as the transaction price within the best
five prices in real time of the counterpart, and the part of transactions that have not been completed shall be automatically cancelled;

(2)

The declaration of the conclusion of transactions at the best five prices and in real time and the change of the remaining transactions
into limit orders, namely, the transactions shall be completed in turn by taking the price of the counterpart as the transaction
price within the best five prices in real time of the counterpart, and the part of transactions that have not been completed shall
be changed into limit orders in accordance with the latest transaction price declared by this side; if no transaction in this declaration
is completed, the transactions shall be changed into limit orders in accordance with the best quotation of this side; and if there
is no declaration of this side, the declaration shall be cancelled;

(3)

Other types formulated by this Exchange.

3.4.5

The market orders shall only apply to the transactions of the securities with price limit during the course of continuous auction,
except otherwise herein provided for by this Exchange.

3.4.6

A limit order shall consist of the number of the securities account, the code of the seat, the code of the securities, the direction
of the deal, the quantity, the price, and etc.

A market order shall consist of the type of the declaration, the number of the securities account, the code of the seat, the code
of the securities, the direction of the deal the quantity, and etc.

A declaration order shall be transferred in the form prescribed by this Exchange. If it is considered to be necessary, this Exchange
may make modulation on the contents or methods of declaration.

3.4.7

As to the purchase of stocks, funds or warrants by means of competitive bidding, the declared quantity shall be 100 shares (units)
or the integral number of times thereof.

When selling the stocks, funds or warrants, the sales of the part less than 100 shares (units) shall be declared once and for all.

3.4.8

In the competitive bidding, the quantity upon declaration of the bonds transactions shall be one lot or the integral number of times
thereof, the quantity upon declaration of pledge-type repurchase of bonds shall be 100 lots or the integral number of times thereof,
as well as the quantity upon declaration of buy-out repurchase of bonds shall be 1,000 lots or the integral number of times thereof.

The 1,000 Yuan of par value of bonds in the bonds transactions or the buy-out repurchase of bonds shall be one lot, and the 1,000
Yuan of standard coupons in the pledge-type repurchase of bonds shall be one lot.

3.4.9

The largest amount in a single declaration of stock, fund or warrant transactions shall be less than one million shares (units),
the largest amount in a single declaration of transactions of bonds or pledge-type repurchase of bonds shall be less than 10,000
lots, as well as the largest amount in a single declaration of transactions of buy-out repurchase of bonds shall be less than 50,000
lots.

In accordance with the demands of the market, this Exchange may make modulation on the largest amount in a single securities declaration.

3.4.10

Different units of account shall be employed for the trading of different securities: the “price per share” for the stocks, the “price
per unit of funds” for the funds, the “price per unit of warrants” for the warrants, the “price per 100 Yuan of par value of bonds”
for the bonds, the “due annual proceeds per 100 Yuan of capital” for the pledge-type repurchase of bonds and the “due repurchase
price per 100 Yuan of par value of bonds” for the buy-out repurchase of bonds.

3.4.11

The minimum price variance unit for the transaction of A-shares, bonds or buy-out repurchase of bonds shall be 0.01 Yuan, 0.001 Yuan
for the transactions of funds or warrants, the 0.001 US Dollars for the transactions of B-shares, and 0.005 Yuan for the transactions
of pledge-type repurchase.

3.4.12

In accordance with the demands of the market, this Exchange may make modulation on the minimum price variance unit of the price upon
declaration and the declared quantity of a single transaction concerning each kind of securities.

3.4.13

The price limit to the transactions of stocks and funds shall be carried out by this Exchange, and the fluctuating proportion shall
be 10%, of which the fluctuating proportion of ST or *ST shares shall be 5%.

The formula for the fluctuating price of the shares and funds shall be as follows: Fluctuating Price = Previous Closing Price ￿￿(1￿￿luctuating
Proportion).

The calculation result shall be the minimum price variance unit in accordance with the principle of rounding (to the nearest whole
number).

If it meets any of the circumstances as follows, the price limit shall not be carried out on the first listing day of stocks:

(1)

The initial public offering of stocks or close-end funds;

(2)

The issuance of additional listed shares;

(3)

The resumption of trading after the suspending of trading; or

(4)

Other circumstances recognized by this Exchange .

As approved by the CSRC, this Exchange may make modulation on the fluctuating proportion of the securities.

3.4.14

When buying or selling the securities with the price limit, the declaration during the price limit shall be valid, otherwise it shall
be an invalid declaration.

3.4.15

When buying or selling the securities without the price limit, the valid declared price at the stage of aggregate auction shall be
governed by the provisions as follows:

(1)

The declared price of stock transactions is between 200% and 50% of the previous closing price; and

(2)

The declared price for the fund or bond transactions is between 150% and 70% of the previous closing price.

There is no price limit for the T-bond repurchase transactions at the stage of aggregate auction.

3.4.16

When buying or selling the securities without the price limit, the valid price upon declaration at the stage of continuous auction
shall be governed by the provisions as follows:

(1)

The declared price is lower than 110% of the lowest selling price revealed in real time and higher than 90% of the highest buying
price revealed in real time; and simultaneously, lower than 130% of the average of the highest price upon declaration and the lowest
price upon declaration and higher than 70% of the aforesaid average;

(2)

In case there is no declared buying price revealed in real time, the lower one of the lowest selling price and the latest transaction
price revealed in real time shall be considered as the highest buying price mentioned in the preceding item; and

(3)

In case there is no declared selling price revealed in real time, the higher one of the highest buying price and the latest transaction
price revealed in real time shall be considered as the lowest selling price mentioned in the preceding item.

In case there is no transaction completed on the current day, the previous closing price shall be the latest transaction price.

In accordance with the demands of the market, this Exchange may make modulation on the provisions on the declared price limit.

3.4.17

A declaration shall be valid on the current day. If each competitive transaction declared can not be completed once and for all,
the art that has not been completed may continuously take part in the auction on the current day, except otherwise herein provided
for by this Measures.

Section 5 Auctions

3.5.1

The ways of aggregate auction and continuous auction shall be employed for the competitive securities transactions.

The “aggregate auction” refers to such a competitive method that the sales declarations as accepted during a certain period shall
be collectively matched once and for all.

The “continuous auction” refers to such a competitive method that the sales declarations shall be continuously matched item by item.

3.5.2

The sales declarations that are not completed during the period for the aggregate auction shall automatically carry out the continuous
auction.

Section 6 Conclusion of Transactions

3.6.1

The securities competitive bidding shall be matched by the principle of price and time priority as follows.

The principle of price priority at the time of transaction conclusion shall be: the declaration for the purchase at a higher price
shall take precedence over the declaration for the purchase at a lower price, and the declaration for the sales at a lower price
shall take precedence over the declaration for the sales at a higher price.

The principle of time priority at the time of transaction conclusion shall be: if the direction of the deal and the price are the
same, the former declarer shall have priority to the later declarer. The sequence of declarations shall be due to the time when the
exchange server accepts the declarations.

3.6.2

As to aggregate auction, the principle of determination of the transaction price shall be:

(1)

The price at which the maximum trading volume can be realized;

(2)

The price at which the declarations for the purchase at the price higher than the aforesaid price and the declarations for the sales
at the price lower than the aforesaid price shall all be transacted; and

(3)

The price at which all the transactions of either the buyer or the seller with the price identical with the aforesaid one shall all
be completed.

In case there are more than two prices upon declaration meeting the aforesaid conditions, the price upon declaration that makes the
smallest uncompleted transaction volume shall be the transaction price; and if there are still more than two prices upon declaration
that make the smallest uncompleted transaction volume meet the aforesaid conditions, their middle price shall be the transaction
price.

All the transactions under aggregate auction shall be completed at the same price.

3.6.3

As to continuous auction, the principle of determination of the transaction price shall be:

(1)

In case the highest price upon declaration for the purchase is the same as the lowest price upon declaration for the sales, the aforesaid
price shall be the transaction price;

(2)

In case the price upon declaration for the purchase is higher than the lowest price upon declaration for the sales revealed in real
time, the latter shall be the transaction price; and

(3)

in case the price upon declaration for the sales is lower than the highest price upon declaration for the purchase revealed in real
time, the latter shall be the transaction price.

3.6.4

In case the price reached in accordance with the principle of concluded transactions is not under the scope of minimum price variance
unit, the related minimum price variance unit shall be gotten in accordance with the principle of rounding (to the nearest whole
number).

3.6.5

After the sales declarations are matched by the exchange server, the transactions are completed. A transaction goes into effect when
the transaction is completed in accordance with the provisions in these Regulations, and both parties to the transaction shall accept
the trading result and undertake the obligation of liquidation and delivery.

In case a transaction is seriously affected by the force majeure, accident or illegal invasion into the trading system, this Exchange
may employ proper measures or consider the transaction to be invalid.

As confirmed by this Exchange and approved by the council thereof, proper measures may be employed for the clearly unfair transactions,
as well as a report shall be handed in to the CSRC.

As to the transactions that are against these Regulations and will seriously destroy the normal operation of the securities market,
this Exchange has the right to make announcement about the cancellation of the transactions. And the traders in violation of the
Regulations shall be responsible for the losses incurring there from.

3.6.6

As to the transactions completed in accordance with these Regulations, the trading results shall be determined based on the trading
data recorded in the exchange server of this Exchange.

3.6.7

The liquidation and delivery concerning the securities transactions shall be conducted by the registration and clearing institution
designated by this Exchange.

Section 7 Block Trades

3.7.1

The method of block trades may be employed for the securities sales implemented in this Exchange and meeting the conditions as follows:

(1)

The declared quantity of A-shares in a single transaction thereof is more than 500,000 shares, or the trading amount is more than
3 million Yuan;

(2)

The declared quantity of B-shares in a single transaction thereof is more than 500,000 shares, or the trading amount is more than
300,000 US Dollars;

(3)

The declared quantity of funds in a single block transaction is more than 3 million shares, or the trading amount is more than 3 million
Yuan;

(4)

The declared quantity of government bonds or the T-bond repurchase in a single block transaction thereof is more than 10,000 lots,
or the trading amount is more than 10 million Yuan;

(5)

The declared quantity of other bonds in a single transaction thereof is more than 1,000 lots, or the trading amount is more than 1
million Yuan.

In accordance with the demands in the market, this Exchange may make modulation on the minimum quota of block trades.

3.7.2

This Exchange will accept the declarations for block trades at 9:30 to 11:30 and 13:00 to 15:30 every trading day.

3.7.3

The declarations for block trades shall consist of the declarations of intent and the declarations of transaction that has been completed.

A declaration of intent shall consist of the number of the securities account, the code of the securities and the direction of the
deal and etc.

A declaration of transaction that has been completed shall consist of the number of the securities account, the code of the securities,
the direction of the deal, the price and quantity of the completed transaction and etc.

3.7.4

A declaration of intent shall be true and valid. If the price of the declaring party is unclear, it shall be considered that it is
willing to buy at the prescribed lowest price or sell out at the highest price at least; and if the quantity is unclear, it shall
be considered that it is willing to complete the transactions with the minimum declared quantity for a single block trade at least.

3.7.5

When the members accepting a declaration of intent (including the circumstance that any other member gives a more favorable price
than the declared one), the declaring party shall make the declaration of transaction that has been completed at least with one member
that has accepted the declaration of intent.

3.7.6

The transaction price of the block trade of securities with the price limit shall be determined by both parties to the transaction
under the scope of price limit on the current day.

The transaction price of the block trade of securities without the price limit shall be determined through the consultation of both
parties to the transaction based on up and down 30% of the previous closing price or between the highest and lowest prices of transactions
that have been completed on the current day.

3.7.7

Both parties to the transaction shall, after signing an agreement, make a declaration of transaction that has been completed to the
exchange server of this Exchange, and the transaction price of the declaration of transaction that has been completed shall agree
with the transaction quantity.

A declaration of transaction that has been completed shall not be changed or cancelled once it is confirmed by this Exchange, and
both parties to the transaction shall accept the transaction result.

3.7.8

A member shall make sure that the participants in block trades actually own the securities or capital related to the declaration
of intent or the declaration of transaction that has been completed.

3.7.9

The system of primary traders shall be carried out for the block trades of this Exchange concerning bonds.

A member upon approval of this Exchange may act as a primary trader, and carry out the business of bonds bilateral quotation by the
system of block trades of this Exchange.

3.7.10

A block trade shall not be calculated into the calculation of real-time market information and indices of this Exchange, as well
as the trading volume shall be calculated into the total securities trading volume after the block trade is closed.

3.7.11

As concluded of block trades every trading day, for block trades concerning stock or funds, this Exchange will publish the names
of the securities, the transaction price, the trading volume, the name of the business department of the member where both the buyer
and the seller make their transaction; for block trades concerning bonds or T-bond repurchase, this Exchange will publish the names
of the securities, the trading volume and the transaction price, etc.

Section 8 Transactions of T-bond Repurchase

3.8.1

The methods of buy-out repurchase and pledge-type repurchase, etc. may be employed for the transactions of T-bond repurchase.

3.8.2

The “buy-out repurchase of bonds” refers to such a kind of transaction in which both parties to the transaction stipulate that the
seller will buy back the same kind and amount of bonds from the buyer at the stipulated price on some day in the future, as the holder
of bonds sells the bonds to the purchaser.

The “pledge-type repurchase of bonds” refers to such a kind of transaction in which both parties to the transaction stipulate to return
the capital and remove the pledge after the expiration of the repurchasing period, as the holder of bonds pledges the bonds and obtains
the pledge financing from the trading counterpart by taking the quantity of standard coupons calculated at the rate of conversion
of standard coupons as the financial quota.

3.8

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