Rich Dad’s Financial IQ Cultivation: Stock Fundamentals

Chapter 16 Issuance and Listing of Stocks (6)
The stock exchange may establish a centralized securities custody system, and the measures shall be determined separately.When the centralized custody system is implemented, the delivery of securities is completed by the stock exchange through the transfer of the stock securities account. All matters relating to the acquisition of securities.

Before participating in the transaction, the securities firm shall deposit the settlement reserve fund with the stock exchange at one time according to the following amount:
Securities brokers or dealers: RMB 10.

RMB 20 for securities firms concurrently operating brokerage and proprietary business.

When the securities firm fails to perform the delivery business, the stock exchange will use the liquidation delivery reserve to pay first, so as to maintain the continuity of delivery.A securities firm shall not fail to perform the obligation of clearing and delivery due to the client's breach of contract.

5. Listing fees for securities

Issuers of securities listed on stock exchanges must pay listing fees, which include initial listing fees and monthly listing fees.The initial listing fee shall be paid by the issuer no later than 3 days before the listing of its securities.The monthly listing fee shall be paid before the 5th of each month from the second month of the listing date to the month when the listing is terminated, and may also be paid quarterly or annually.

The standard for the initial listing fee is 0.3‰ of the total issued face value, with a starting point of 3000 yuan and a maximum of 10000 yuan.

As for the standard of monthly listing fee, for stocks listed on the first section of the stock exchange, the starting point for paying 0.01‰ of the total face value is 100 yuan, and the maximum is no more than 500 yuan.For stocks listed on the second section of the stock exchange, the standard for paying monthly fees is increased by 10%.

For securities whose listing is suspended, if the listing is resumed upon approval, the issuer shall repay the initial listing fee at a rate of 20% of the initial listing fee standard.

For securities whose listing has been terminated, the listing fees paid by the issuer shall not be refunded.If the listing fee is overdue, a late fee of 3‰ of the due amount per day will be imposed according to the number of days overdue, with a starting point of 1 yuan.

Transaction fee, after the entrusted transaction is completed, the consignor shall pay the commissioned transaction fee to the securities firm according to the actual transaction amount when handling the delivery with the securities firm. The starting point is 5 yuan, and the commissioned stock trading fee standard is 5 ‰, securities firms shall not arbitrarily or in a disguised form increase or decrease the standard of handling fees.When the entrusted transaction is not completed, no handling fee shall be charged.

On-site transaction fees levied by the stock exchange: Securities firms who join the stock exchange and participate in trading in the trading market must pay transaction fees. The transaction fees are divided into two types: annual fees and handling fees.

From the year of joining the stock exchange, securities firms that concurrently operate brokerage and self-operated businesses pay an annual transaction fee of 50000 yuan, and securities brokers or proprietary traders pay an annual transaction fee of 10000 yuan.

After a securities firm trades a transaction in the stock exchange market, it must pay the actual transaction amount (calculated based on the market price, the same below)

Pay the transaction handling fee to the stock exchange, the starting point is 3 yuan.

After the securities firm's entrusted trading and self-operated trading are completed, all parties to the transaction shall pay the transaction handling fee to the stock exchange at the rate of 0.3‰ of the transaction amount.

([-]) Listing Rules of Shenzhen Stock Exchange

In order to protect the public interest and the legitimate rights and interests of investors, and promote the healthy development of the Shenzhen securities market, the Shenzhen Stock Exchange has formulated a set of regulations for the listing of securities in Shenzhen in accordance with the provisions of the "Interim Measures for Securities Trading in the Shenzhen Special Economic Zone". The relevant provisions are now introduced.

The stocks listed in Shenzhen are classified into Class I listed stocks, Class II listed stocks and Class III listed stocks.

The stocks of companies applying for listing that meet the following conditions may be considered as Class I listed stocks:
1. Business record: The company applying for listing should have established or engaged in main business as a whole (hereinafter referred to as the full business record) for more than 5 years, and should have a stable business foundation and good development prospects.

2. Amount of capital: The par value of common shares actually issued by the company applying for listing (hereinafter referred to as the actual issued share capital) should be RMB 5000 million.

3. Stock market price: The average closing price of the stock of the company applying for listing in the last six months should be 6% higher than its face value.

4. Capital structure: The ratio of the after-tax net asset value to the total assets of the company applying for listing in the most recent year should be more than 1%, and there should be no accumulated losses.

5. Profitability: The profit record of the listing applicant company meets one of the following criteria.

(1) The ratio of the pre-tax profit to the actual issued share capital in the annual final accounts (hereinafter referred to as the share capital profit ratio) has reached more than 3% in the past three years;

(2) The pre-tax profit in the last three years has reached more than 3 million yuan, and the profit rate of equity is not less than 1000%;

(3) The pre-tax profit meets one of the first two criteria in each of the last three years;

6. Shareholding dispersion.If the listing application of the listing application company is approved by the exchange, its shareholding distribution should meet the following conditions:
（1）记名股东人数在1000人以上，其中持有股份面额1000元至10万元的股东人数不少于750人，且其中所持股份面额之和占实发股本总额的20%以上或达到500万元以上。

(2) Shareholders holding less than 2% of the total shares shall account for more than 25% of the company's total issued share capital.

7. Share circulation.For the shares of the company applying for listing, the total face value of transactions in the last six months should be more than 6 yuan, or the ratio of the average daily face value of transactions to the face value of listed shares should not be less than 50/[-].

Listing applicant companies should at least meet the following basic conditions before their stocks can be considered as Class III listed stocks.

1. The amount of capital.The actual issued share capital of the company applying for listing should be more than 500 million yuan.

2. Stock market price.The average closing price of the stock of the company applying for listing in the last six months should be higher than 6% of its face price.

3. Capital structure.The net value of tangible assets per share after tax of the company applying for listing in the most recent year shall not be lower than its face value, and there shall be no accumulated losses.

4. Profitability.The profit record of a listed company should meet one of the following criteria.

(1) The profit rate on equity in the most recent year is above 10%.

（2）最近年度税前利润达100万元以上，最近2年度股本利润率均不低于5%，此外1年度税前利润一般应较其前1年度为高，未来最近年度的税前利润预测值应不低于前1年度，且股本利率在10%以上。

5.股权分散。上市申请公司的上市申请如获得交易所批准，其股权分布应符合下列条件：记名股东人数在500人以上，其中持有股份面额500元至5万元的股东的人数不少于300人，且其所持股份面额之和应占实发股本总额地25%以上。

6. The amount of shares held by directors, supervisors and managers and their total amount shall comply with the regulations of the exchange.

7. Directors, supervisors and managers, as well as shareholders who actually hold or control the holding of shares accounting for more than 5% of the total issued share capital, shall entrust the stocks they hold to the stock exchange designated by the exchange according to the amount or ratio stipulated by the exchange. Institutional custody, and promises that the stocks shall not be sold within one year from the date of listing, and the entrusted custody stock certificates obtained shall not be transferred or mortgaged, and after the one-year period expires, the entrusted custody stocks shall be returned in accordance with the regulations of the exchange.

In addition, the exchange also stipulates the conditions for the stocks of listing applicant companies to be specially considered for listing in the first category of listed stocks and the second category of listed stocks, and how the third category of listed stocks can be promoted to the second category of listed stocks, and the second category of listed stocks How to upgrade stocks to the first category of listed stocks and other regulations will not be introduced here one by one.

If a listed (applicant) company has one of the following events, the Exchange may suspend trading in its relevant securities:
1. Failing to fulfill the promise of the information company;

2. Failing to effectively abide by the Shenzhen Securities Listing Review Rules and its authorization regulations;
3. Failing to implement the securities listing contract;
4. Directors, supervisors, managers, and shareholders who actually hold or control more than 5% of the issued share capital, directly or indirectly disseminate false or misleading information with the intention of manipulating or affecting the market conditions of their listed securities.

The disclosure of information mentioned above is one of the obligations of listed companies to the public, and the contents of information disclosure should at least include the following information:

1. The main business status of the listed (applicable) company;
2. The main financial status of the listed (applicant) company;
3. All matters that may cause fluctuations in the price of listed securities;

4. Avoid false or abnormal market conditions in listed securities.

([-]) Securities Listing Fee Standards
According to Article 30 of the "Securities Listing Review Rules" No.[-], the standards for securities listing fees are as follows:
1. Stock listing fee standard:
The maximum initial fee for various types of stock listing is 35 yuan
Description:

(1) The basic fee is the minimum fee payable for each stock;
(2) Proportional fee is calculated and paid for each share in proportion to the portion of its issued share capital that is higher than its basic share capital;
(3) When a stock is upgraded from a lower class to a higher class, the initial listing fee only needs to pay the difference between the basic fees of different categories, and no proportional fees will be paid.However, if new shares are issued at the same time as the class upgrade, the new shares will be calculated and paid according to the proportional expense ratio of the class upgrade;
(4) For the same type of stock issued after the stock is listed, the initial listing fee is calculated and paid according to the proportional fee rate of the category.

2. (Category [-]) Monthly Stock Listing Fee Standard
The maximum monthly listing fee is 1.5 yuan
Description:

(1) The expense ratio of the second class of stocks at the same level is 0.5/10 higher than that of the first class;
(2) The expense ratio of the third category of stocks at the same level is 1/10 higher than that of the first category;
(3) The monthly listing fee is calculated on a full-month basis;
3. The securities listing fee for preferred shares shall be paid according to the fee standard for Class I shares.

4. The listing fee for corporate bonds shall be calculated and paid at 50% of the various fees for Class I stocks.

5. The securities listing fee for warrants shall be paid according to the fee standard for similar stocks. After the warrants are exercised, the subscription shares only need to pay the monthly listing fee, and no initial listing fee shall be paid.

6. The listed (applicant) company shall pay off the listing fee and the monthly listing fee of the current quarter within 5 days after signing the mass listing contract, and the monthly listing fee of each subsequent quarter shall be paid in full before the end of the previous quarter.

([-]) Entrusted trading of stocks

According to the "Securities Brokers' Entrusted Securities Trading Rules", when a securities broker accepts an entrusted securities transaction, it must first complete the entrustment contract with the consignor. The agent who signs the entrustment contract shall attach the power of attorney and a photocopy of the agent's ID card. If the client is a legal person, a copy of the legal person registration certificate, a legal power of attorney and a photocopy of the authorized person's ID card shall be attached. The client shall sign the entrustment contract At that time, keep the signature card or signature card, and go through other relevant procedures for securities trading entrustment and delivery with the signature in the same seal.The entrustment contract shall contain the name, gender, age, place of origin, occupation, address, and ID card number of each trustee (if there is an agent) It is recognized that the articles of association of the stock exchange, business rules, announcements, and the detailed rules for the entrusted trading of securities by securities brokers are part of the contract. The power of attorney is printed in red for buyers and blue for sellers. The letter shall contain the consignor's name, account number, date and time of entrustment, type of securities, number of shares or denomination, price limit, expiration date, salesperson's signature and seal, consignor's signature and seal, entrustment method (telephone, telegram, letter, face-to-face entrustment), safekeeping method (recovery of securities, centralized storage), and the following items should be noted:
1. Those not specified (limit price) are regarded as market price orders;
2. If the (expiration date) is not filled in, it is deemed to be valid on the same day;
3. The entrustment method shall be indicated;

4. Written or declared entrustment should attach the letter;

5. If the purchase of securities is not specified (custodial method), it is regarded as centralized storage.

A securities broker shall not accept an entrustment to open an account if the entrustor has any of the following circumstances:
1. Minors who are not represented or permitted by their legal representatives;
2. Staff and employees of securities authorities and stock exchanges;
3. Government agencies, financial institutions and public enterprise cashiers;
4. Those who have been declared bankrupt but have not been restored;
5. Entrusted by a legal person to open an account but fails to submit the certificate of authorization of the legal person to open an account;
6. Shareholders or employees of the entrusted securities broker;

7. The securities broker is not licensed by the competent authority or the stock exchange.

A securities brokerage firm shall refuse to accept an account opening if the consignor falls under any of the following circumstances:

1. It has been less than 3 years since the record of breach of contract due to securities transactions has been filed;
2. The person who has been notified by the competent authority to stop trading in securities for less than five years due to violation of laws and regulations.

The entrusted securities broker shall not accept the entrusted securities brokerage under any of the following circumstances.

1. Full right to choose the entrusted trading of securities types;
2. Entrusted trading to decide the quantity of buying and selling with full power;
3. Entrusted buying and selling with full power to decide the buying and selling price;
4. Full authority to decide the entrusted trading of selling and buying;

5. Securities trading in the form of installment payment;
6. Securities trading in which profit guarantee or benefit sharing is made to the consignor.

Securities brokers are obliged to strictly keep confidential all matters entrusted by clients, except when responding to inquiries from competent authorities and stock exchanges.

There are three types of securities trading on the stock exchange:
1. Ordinary delivery transaction: that is, the delivery is handled on the next business day after the transaction is completed;
2. Delivery and trading on the closing day: Both the buyer and the seller must express in writing that the delivery should be done on the same day;

3. Special day delivery trading: its handling shall be implemented after the Exchange Co., Ltd. drafts and submits to the competent authority for approval.

The standards for securities brokerage commissions and exchange commission rates are as follows:

Securities dealers who trade on behalf of customers must charge commissions to customers at a prescribed rate after the transaction is completed, and commissions are charged at a rate of 0.3% when buying and selling stocks on behalf of customers.The Shenzhen Stock Exchange may collect transaction fees from securities firms (brokers and proprietary traders) participating in the exchange's centralized trading, and the rate regulations are as follows:
Brokers are charged at 10% of commission income;

Proprietors are charged at 3/10000 of the transaction amount;

The handling fee is settled on a weekly basis and paid to the company once on weekends. Those who delay or refuse to pay will be rejected by the exchange to participate in the exchange.

(End of this chapter)