Block Trades
Trades on the Shenzhen Stock Exchange may be executed as block trades, subject to the following criteria:
(1) trade in A-shares with either the volume or the value exceeding 500,000 shares or RMB 3 million, respectively;
(2) trade in B-shares with either the volume or the value exceeding 50,000 shares or HK$ 300,000, respectively;
(3) trade in mutual funds with either the volume or the value exceeding 3 million units or RMB 3 million, respectively;
(4) trade in bonds with either the volume or the value exceeding 10,000 units (par valued at RMB 100 per unit) or RMB 1 million, respectively;
(5) trade in bond collateral repo with either the volume ( par valued at RMB 100 per unit ) or the value exceeding 10,000 units or RMB 1 million, respectively;
(6) trade in more than one A-share issues with either the buy order or the sell order exceeding RMB 500 million in value, while the traded volume in one single issue exceeding 200,000 shares;
(7) the traded value of a buy order or sell order for multiple mutual fund issues is no less than RMB 5 million, with the trading volume of each single mutual fund issue no less than 1 million units; or
(8) the aggregate traded value of multiple bond issues by an investor in either buy or sell is no less than RMB 5 million, and volume of each bond product no less than 15,000 units.
The Shenzhen Stock Exchange may adjust the minimum criteria on block trades based on market needs.
The Shenzhen Stock Exchange system is open to block trade orders during 9:15-11:30 and 13:00-15:30 on each trading day.
The execution price of a block trade of securities that are subject to a daily price limit shall be determined by the buyer and seller within the price limit applicable to such securities on the day of trading.
The execution price of a block trade of securities which are subject to no daily price limit is negotiated between the buyer and seller within 30% of the previous closing price or between the highest and the lowest prices of the securities on the day of trading.
Upon reaching an agreement on a block trade, the buyer and the seller shall input execution orders into the Exchange trading system, with execution prices and trading volumes coordinated on both parties.
The Exchange trading system confirms execution orders from the buyer and the seller on each trading day during 15:00 to15:30.
Any execution order, once confirmed by the Shenzhen Stock Exchange, shall not be modified or canceled and the results shall be accepted as definitive.
Block trades are not included in the Exchange’s real-time quotations and index calculation. At the close of block trades, the trading volume is added to the total volume of relevant securities on the day of trading.
At the close of block trades on each trading day, the Exchange will publicize such information on the transactions as the securities traded, traded volume, traded prices, and brokerage departments and trading seats involved.
