(I) Types of Orders on the Main Board
1.1 Types of Auction Orders
1.1.1 Limit Order
A limit order refers to an instruction given by an investor to a member to buy or sell a particular stock at a specified price. A limit order shall contain such information as securities account number, brokerage branch code, code of the security, buy or sell, quantity, and price.
1.1.2 Market Order
A market order refers to an instruction given by an investor to a member to buy or sell a certain quantity of a particular stock at the current best market price. Market orders are applicable only to stocks subject to daily price limit during the continuous auction. A market order shall contain such information as order type, securities account number, brokerage branch code, code of the security, buy or sell, quantity, and price.
To trade Main Board stocks, an investor may place the following types of market orders:
(1) Five Best Orders Immediate or Cancel: an order that is executed in sequence against the current five best prices on the opposite side, with the unmatched portion, if any, cancelled automatically; and
(2) Five Best Orders Immediate to Limit: an order that is executed in sequence against the current five best prices on the opposite side, with the unmatched portion, if any, converted to a limit order whose limit price is set to the last executed price on the same side. If the Five Best Orders Immediate to Limit order cannot be matched at all, it is either converted to a limit order whose limit price is set to the best quotation on the same side, or, in the absence of such a quotation, cancelled.
1.2 Types of Block Orders
1.2.1 Intent Order
The Exchange accepts intent orders during 9:30 a.m.-11:30 a.m. and 1:00 p.m.-3:30 p.m. on each trading day. An intent order shall contain such information as securities account number, code of the security, and buy or sell.
1.2.2 Execution Order
The Exchange accepts execution orders for Main Board stocks during 9:30 a.m.-11:30 a.m. and 1:00 p.m.-3:30 p.m. on each trading day.
An execution order shall contain such information as the code of the security, securities account number, buy or sell, execution price, and trading volume. The code of the security, execution price, and trading volume must be identical in the execution orders placed by the trading parties.
The price of an execution order for securities that are subject to daily price limit shall be determined by the buyer and the seller within the price limit applicable to such securities on the day of trading. The price of an execution order for securities that are not subject to daily price limit shall not be higher than either 120% of the average price or the highest price thus far in auction trading of that stock on that day, and shall not be lower than either 80% of the average price or the lowest price thus far in auction trading of that stock on that day. The average price is calculated as the turnover divided by the number of stocks traded, and is rounded to the nearest 0.01 yuan.
1.2.3 Fixed-Price Order
The Exchange accepts fixed-price orders at 3:00 p.m.-3:30 p.m. on each trading day. The trading parties to a fixed-price order on any given trading day may place the order at the closing price of the auction trading market on that trading day.
A fixed-price order shall contain such information as securities account number, code of the security, trading direction, type of trade, and trading quantity.
A fixed-price order may be cancelled during the period in which fixed-price orders are accepted; after the end of such period, the Exchange will match and execute fixed-price orders in accordance with the principle of time priority, with the unfilled portion of these orders, if any, cancelled automatically.
(II) Types of Orders on the STAR Market
2.1 Types of Auction Orders
2.1.1 Limit Order
The arrangement for limit orders on the STAR market is the same as that for limit orders on the Main Board.
2.1.2 Market Order
Market orders on the STAR market are applicable to the trading of stocks subject to price limits and those not during continuous auction.
To trade STAR stocks, an investor may place the following types of market orders:
(1) Five Best Orders Immediate or Cancel;
(2) Five Best Orders Immediate to Limit;
(3) Same-side Best Price, i.e., an order whose quotation price is the best price at the same side in the central order book at the time the order is routed into the Exchange’s trading system; or
(4) Opposite-side Best Price: i.e. an order whose quotation price is the best price at the opposite side in the central order book at the time the order is routed into the Exchange’s trading system;
An investor shall include an acceptable protection limit price (a highest bid or a lowest ask acceptable to the investor) in its/his market order for STAR stocks placed during the continuous auction session.
2.2 Types of Block Orders
2.2.1 Intent Order
The arrangement for intent orders on the STAR market is the same as that for limit orders on the Main Board.
2.2.2 Execution Order
The Exchange accepts execution orders for STAR stocks at 9:30 a.m.-11:30 a.m. and 1:00 p.m.-3:30 p.m. on each trading day. Such execution orders shall contain the same information as those for Main Board stocks in terms of restrictions on quotations, etc.
2.3 Types of After-Hours Fixed-Price Orders
2.3.1 Closing Price Orders
The Exchange accepts trading participants’ closing price orders at 9:30 a.m.-11:30 a.m. and 1:00 p.m.-3:30 p.m. on each trading day. A closing price order shall contain such information as securities account number, code of the security, brokerage branch code, trading direction, limit price, and quantity.
The size of each closing price order shall be no less than 200 shares and no more than 1,000,000 shares. In the case of sale of stocks, any remaining quantity less than 200 shares shall be sold in a single order. If the closing price is higher than the limit price of a closing price buy order, such order shall be invalid; if the closing price is lower than the limit price of a closing price sell order, such order shall be invalid.
