In recent years, SZSE has been following a general work pace of pursuing progress while ensuring stability of performance under the leadership of China Securities Regulatory Commission (CSRC), having fulfilled the following tasks: fully deepening the capital market reform, continuous optimization of the basic trading systems during the registration-based IPO reform, improvement of trading regulation, and securing the sound operation of the market with high quality. The meeting of the Political Bureau of the CPC Central Committee on July 24, 2023 proposed that we should enliven the capital market and boot investor confidence. SZSE carefully studies and follow the guiding principles of the meeting, and implements the important decisions and arrangements of the CSRC. Upon a thorough market research and solicitation of market opinions, we are quickening the pace to roll out a set of practical measures to facilitate and smooth transactions, further unlock market vitality, boost investor confidence and increase market appeal.

In terms of refining the trading systems,we will take two steps. First we are planning to adjust the requirement on the declared volume of SZSE-listed stocks, funds and other securities from an integral multiple of 100 shares (units) to a minimum of 100 shares (units) whose increment(s) should be an integral multiple of 1 share (units). The adjustment will lower the costs of investors trading heavy stocks, diversify their investments,and improve the efficiency of fund spending on the part of investors. On the other hand, the optimization will reduce the difficulty of investment management by fund managers,narrow the tracking difference of the products, and help increase the vitality and liquidity of stocks, funds and other markets.Second, we are considering to introduce an after-hours fixed price trading mechanism for ETFs, which will effectively complement the intraday continuous trading, meet the needs of investors for fixed price trading in the time slots other than the order matching period, and reduce the impact on intraday transaction price by block trades that passively track the close price. According to our survey, market players in general looks forward to the introduction of an after-hours fixed price trading mechanism for ETFs to satisfy their need to trade ETFs at the close price.

To optimize trading regulation, we will uphold rule-based and pertinent regulation, make a balance between smoothing transactions and cracking down on malicious speculation, and focus on the supervision and regulation of abnormal trading behaviors or suspect violations to forestall trading risks, hold on to our bottom lines of regulation and maintain the sound operation of the market. We shall continue to push for greater transparency of regulatory standards, release the English versions of regulatory rules, and enhance publicity of rules and investor education. We will also clarify market expectation and increase the transparency of the regulation.

Next,SZSE will thoroughly implement the spirit of the mid-year seminar of the CSRC group, closely focus on the task of building a modern capital market with Chinese characteristics, adhere to the principle of the market-based rule of law,and draw on the best international practices while taking into consideration of Chinese characteristics and the features of the development stage. We will continue to optimize the basic systems of the capital market, accelerate the improvement of relevant business solutions, conduct business and market preparation, and push for the implementation of the transaction-side measures one by one in a bid to drive market momentum, enhance market resilience and boost high-quality market growth.