Operational Guidelines for Account Conversion Investors Related to the Stock-for-stock Merger of Shenzhen Chiwan Petroleum Supply Base Co., Ltd. by Shenzhen New Nanshan Holding(Group) Co., Ltd.
and
Associated Transaction
and
the Listing of A and B-share Securities
May, 2018
Contents
Special notes .............................................................................................................................................. 3 Part I: Business Notice ............................................................................................................................. 4 I. Classification of B-share Investors .............................................................................................. 4 II. Classification of Investors of Operational Guidelines .............................................................. 4 III. Comparison Table of Main Differences between B-shares and A-shares ............................. 5 Part II Operational Guidelines for Investors ......................................................................................... 6 Chapter I Domestic Individual Investor ............................................................................................. 6 Section I Business-related Organizations ....................................................................................... 7 Section II Establish Association Relationship between Subaccount of A-shares and
Subaccount of B-shares .................................................................................................................... 8 Section III Determine the Custody Unit of A-shares of Nanshan Holding .................................. 9 Section IV Transfer Registration Restricted Account ................................................................. 10 Section V Trading Cost .................................................................................................................. 13 Section VI Inquiry Business ........................................................................................................... 14 Section VII Change of Account Information ................................................................................ 15 Section VIII General Meeting of Shareholders ............................................................................ 16 Section IX Allotment of Shares ...................................................................................................... 17 Section X Cancellation of Transfer Registration Restricted Account ........................................ 18 Section XI Pledge, Freezing and Non-trading Transfer of Account .......................................... 19 Chapter II Foreign Investors for Domestic Transaction ................................................................. 20 Section I Business-related Organizations ..................................................................................... 21 Section II Determine the Custody Unit of A-shares of Nanshan Holding ................................. 22 Section III Transfer Registration Restricted Account ................................................................. 23 Section IV Trading Cost ................................................................................................................. 26 Section V Inquiry Business ............................................................................................................ 27 Section VI Change of Account Information ................................................................................. 28 Section VII General Meeting of Shareholders ............................................................................. 29 Section VIII Allotment of Shares................................................................................................... 30 Section IX Cancellation of Transfer Registration Restricted Account ...................................... 31 Section X Pledge, Freezing and Non-trading Transfer of Account ............................................ 32 Chapter III Foreign Investor for Non-domestic Transaction ......................................................... 33 Section I Business-related Organizations ..................................................................................... 34
Section II Determine the Custody Unit of A-shares of Nanshan Holding ................................. 35
Section III Transfer Registration Restricted Account ................................................................. 36 Section IV Trading Cost ................................................................................................................. 39 Section V Inquiry Business ............................................................................................................ 40 Section VI Change of Account Information ................................................................................. 41 Section VII General Meeting of Shareholders ............................................................................. 42 Section VIII Allotment of Shares................................................................................................... 43 Section IX Cancellation of Transfer Registration Restricted Account ...................................... 44 Section X Pledge, Freezing and Non-trading Transfer of Account ............................................ 45
Special notes
The scheme on stock-for-stock merger of Shenzhen Chiwan Petroleum Supply Base Co., Ltd. by Shenzhen New Nanshan Holding (Group) Co., Ltd. through the listing of A-shares and the associated transactions has been reviewed and approved by the General Meeting of
Shareholders of Shenzhen New Nanshan Holding (Group) Co., Ltd. and Shenzhen Chiwan Petroleum Supply Base Co., Ltd. respectively on Aug. 3, 2016 and Aug.4 2016. On Feb. 12, 2018, China Securities Regulatory Commission issued the Official Reply on Approval of Stock-for-stock Merger of Shenzhen Chiwan Petroleum Supply Base Co., Ltd. by Shenzhen New Nanshan Holding (Group) Co., Ltd. (Z.J.X.K[2018] No.339).
In order to ensure smooth implementation of this stock-for-stock merger and to guide the securities companies to complete the operation businesses of account conversion related to the transfer from the SCPSB B-shares to the A-shares of Nanshan Holding, the Operational Guidelines has been prepared based on communications and discussions among all related parties.
Part of basic procedures concerning this account conversion, such as the withdrawal
registration of B-shares and initial registration of A-shares, will be further defined by relevant regulatory organizations or executive organizations by issuing documents or notices. This Operational Guidelines just serve as general description and the specific operational procedures shall be subject to the documents or notices issued by relevant regulatory organizations or executive organizations.
This Operational Guidelines are prepared in both Chinese and English. In case of any
discrepancy, the Chinese version shall prevail.
Part I: Business Notice
As many types of investors are involved in this stock-for-stock merger of SCPSB by Nanshan Holding and the business operations relating to the account conversion of different investors vary, in order to guarantee that all types of investors can conduct transactions smoothly after SCPSB B-shares are converted into A-shares of Nanshan Holding, we hope that investors can carefully read the following instructions on the type of investors, confirm which one you fall into and read corresponding part in Part II “Operational Guidelines for Investors” herein to complete account conversion and subsequent business operations.
I. Classification of B-share Investors
Investor is classified into domestic investor, foreign investor for domestic transaction and foreign investor for non-domestic transaction in accordance with the identity type of the investor and declaration ways for future transactions.
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|Type of Investor|Standard of Classification|
|Domestic individualinvestor|The domestic individual investor who opens a B-share securities account indomestic securities company and conducts transaction through the transactionsystem of domestic securities company.|
|Foreign investor fordomestic transaction|The foreign investor who opens a B-share securities account in domesticsecurities company and conducts transaction through the transaction system ofdomestic securities company.|
|Foreign investor fornon-domestic transaction|The foreign investor who opens an independent B-share securities account inforeign broker and conducts transaction through the foreign broker.|

II. Classification of Investors of Operational Guidelines
Account conversion procedures and subsequent operations involved in this stock-for-stock merger of SCPSB by Nanshan Holding are classified and operated in accordance with the types of investor shown below. After confirming the type of B-share securities account, investor can understand his/her own type in accordance with the following standards of classification and accordingly read corresponding contents of this Guideline to operate this account conversion business:
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|Type of Investor|Standard of Classification|Corresponding Contents ofOperational Guidelines|
|Domestic individualinvestor|The domestic individual investor who opens a B-sharesecurities account in domestic securities company andconducts transaction through the transaction system ofdomestic securities company|Part II “Chapter IDomestic IndividualInvestor”|
|Foreign investor fordomestic transaction|The foreign investor who opens a B-share securitiesaccount in domestic securities company and conductstransaction through the transaction system of domesticsecurities company.|Part II “Chapter II ForeignInvestor for DomesticTransaction”|
|Foreign investor fornon-domestictransaction|The foreign investor who opens an independent B-sharesecurities account in foreign broker and conductstransaction through the foreign broker.|Part II “Chapter IIIForeign Investor forNon-domesticTransaction”|

III. Comparison Table of Main Differences between B-shares and A-shares
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|-|-|-|
|Contents of Comparison|B-shares|A-shares|
|Trading date|Monday to Friday, trading suspendedon Saturday, Sunday and nationalholidays|Monday to Friday, trading suspendedon Saturday, Sunday and nationalholidays|
|Way of order quotation|Market order: The quotation is madeat the market price and the declarationcan only be made during continuoustrading hours|Market order: The quotation is madeat the market price and the declarationcan only be made during continuoustrading hours|
||Limit order: The quotation is made ata specified price|Limit order: The quotation is made ata specified price|
|The trade declaration isprocessed by the system ofexchange before opening|9:15 to 9:20: Accept the tradedeclaration and the cancellation|9:15 to 9:20: Accept the tradedeclaration and the cancellation|
||9:20 to 9:25: Accept the tradedeclaration, but do not accept thedeclaration of cancellation|9:20 to 9:25: Accept the tradedeclaration, but do not accept thedeclaration of cancellation|
||9:25 to 9:30: Accept the tradedeclaration and the declaration ofcancellation, but do not process it|9:25 to 9:30: Accept the tradedeclaration and the declaration ofcancellation, but do not process it|
|Continuous trading hours|9:30 to 11:30 and 13:00 to 14:57|9:30 to 11:30 and 13:00 to 14:57|
|Stage of closing callauction|14:57 to 15:00|14:57 to 15:00|
|Minimum declaredquantity of buying forsingle transaction|100 shares|100 shares|
|Quantity sold less than theminimum declaredquantity for singletransaction|Zero share, one-off sale declared|Zero share, one-off sale declared|
|Minimum fluctuatingprice|HKD 0.01|RMB 0.01|
|Limit of price change|10%|10%|
|Rotary trading day|T + 1 day|T + 1 day|
|Settlement system|T + 3 day|Shares are delivered on the T + 0 day,while the fund is delivered on the T +1 day|
|Margin trading|None|Yes|

The above differences are concluded only by making comparison between the B-shares and A-shares, which are not applicable to the all the investors after SCPSB B-shares are converted into A-shares of Nanshan Holding. Different business operations apply to different types of investors. For details, please refer to corresponding contents in the Part II herein.
Part II Operational Guidelines for Investors
Chapter I Domestic Individual Investor
In order to guarantee that investors can conduct transactions smoothly after SCPSB B-shares are converted into A-shares of Nanshan Holding, the domestic individual investors, to which this Chapter is applicable, shall fully understand and confirm the matters shown below: 1. With respect to the investor who holds the A-shares of Nanshan Holding as the shares are not sold on the last trading day of SCPSB B-shares and fails to validly declare the cash option, sale of shares in future will be liquidated by RMB and settled by RMB finally.
2. In the period after the cash option of SCPSB B-shares is declared and completed and before the A-shares of Nanshan Holding have been listed, CSDC will establish association relationship between the subaccount of A-shares and subaccount of B-shares under the one password account instead. For detailed operation definitions and procedures, please refer to relevant contents specified in “Section II Establish Association Relationship between Subaccount of A-shares and Subaccount of B-shares” of this Chapter;
3. With respect to the investor who has no A-share securities account under the one password account or has not confirmed the association relationship despite having an A-share securities account (hereinafter referred to as “Lack of Corresponding A-share Securities Account”) as at May 30, 2018, CSDC shall allocate one transfer registration restricted account which only can make the sell order declaration butcan’t make the buy order declaration. Investors shall fully understand the restrictions on trading;
4. It is required that the investor who is allocated the transfer registration restricted account shall handle formalities relating to third party custody in the securities company in accordance with the requirements of the A-shares securities at the time of opening account;
5. Investor shall confirm that he/she is the investor, to which this Chapter is applied, otherwise, potentially, relevant contents of this Operational Guidelines are not complete applicable; 6. Investors shall fully understand the differences of trading rules and expenses between B-shares and A-shares;
7. The stock code of trade declaration of A-shares of Nanshan Holding is 002314 and name of securities is “Nanshan Holding”;
8. Investors shall continuously pay attention to relevant announcements issued by SCPSB and Nanshan Holding and learn the progress of this stock-for-stock merger;
9. Investors may inquire of the securities company where transactions of B-share securities account are made about the specific ways of business operation relating to the account conversion.
Section I Business-related Organizations
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|Full name of organization|Abbreviation in thisGuidelines|Main relevant matters|
|Shenzhen New NanshanHolding(Group) Co., Ltd.|Nanshan Holding|Information disclosure|
|Shenzhen Chiwan Petroleum SupplyBase Co., Ltd.|SCPSB, SCPSBB-shares|Information disclosure|
|China Securities Depository andClearing Corporation Limited|CSDC|Confirmation of the associationrelationship between A-share subaccountand B-share subaccount under the onepassword account and allocation oftransfer registration restricted account|
|Shenzhen Stock Exchange|SZSE|Restrictions on buy order declaration oftransfer registration restricted account|
|Domestic securities companies|Domestic securitiescompanies|Handle all business applications ofinvestors and consultation, communicationand notice; assist investors in openingcommon A-share securities account,A-share securities account and assistinvestors to complete the handlingformalities of third party custodymeanwhile.|

Section II Establish Association Relationship between Subaccount of A-shares and Subaccount of B-shares
After the unified account platform of CSDC goes online, the one password account will be set up for investor on the basis of the original A-share securities account and B-share securities account in SSE (Shanghai Stock Exchange) and SZSE which will be used as general account to record the identity of investor and securities assets, and the original securities account will be used as subaccount to record the investment transactions by investor, and association
relationship will be established between the one password account and subaccount.
1. With respect to the investor who has A-share securities account and B-share securities account under the one password account and has confirmed the association relationship, A-shares of Nanshan Holding will be initially registered in the A-share securities account after the withdrawal of SCPSB B-shares has been registered.
The investor who has 2 A-share securities accounts or above under the one password account and has confirmed the association relationship may choose the A-share securities account as the account that A-shares of Nanshan Holding will be initially registered in the following order: firstly, choose the A-share securities account consistent with the information declaration broker and entrusted broker of SCPSB B-shares; secondly, choose the A-share securities account opened lately as the account that A-shares of Nanshan Holding will be initially registered. 2. It is suggested that the investor who has A-share securities account and B-share securities account under the one password account, but has not confirmed the association relationship should handle the formalities relating to the confirmation of association relationship in the securities company where transactions of B-share securities account are made prior to May 30, 2018.
3. The investor who has B-share securities account under the one password account, but has not opened A-share securities account may open A-share securities account and confirm the association relationship prior to May 30, 2018. It is suggested that investors should handle the opening of A-share securities account in business department of broker where transactions of B-share securities account are made.
With respect to the investor who has no A-share securities account under the one password account or has not confirmed the association relationship despite having an A-share securities account (hereinafter referred to as “Lack of Corresponding A-share Securities Account”) as at the aforesaid date, Nanshan Holding will apply to the CSDC to allocate one transfer registration restricted account. Please refer to “Section IV Transfer Registration Restricted Account”. A-shares of Nanshan Holding will be initially registered in the transfer registration restricted account after the withdrawal of SCPSB B-shares has been registered.
Please note that the investor firstly needs to check that whether the information on A-share securities account and B-share securities account is consistent and the A-share securities account and B-share securities account are under the same one password account and the association relationship between them has been confirmed with the securities company where transactions of B-share securities account are made. In case the A-share securities account and B-share securities account are not under the same one password account or the association relationship between them has not been confirmed, the investor should contact the securities company where transactions of B-share securities account are made as early as possible, modify the account information and handle the formalities relating to the transfer and confirmation of
association relationship.
Section III Determine the Custody Unit of A-shares of Nanshan Holding As SZSE implements the shares custody transfer trading system, one investor may have more than one custody unit under one securities account. The custody unit of A-shares of Nanshan Holding will be determined in accordance with the principles shown below after stock conversion:
1. After asking for the advices of investors, the domestic securities company which serves as the custody unit of SCPSB B-shares shall declare the custody unit of A-shares for each investor of SCPSB B-shares before 4 June, 2018, which shall ensure investors can normally trade the A-shares of Nanshan Holding.
A-shares of Nanshan Holding will be held in custody in the declared custody unit of A-shares corresponding to the original custody unit of B-shares after SCPSB B-shares are converted into A-shares of Nanshan Holding. The mistaken declaration information on the custody unit of A-share, if any, may result in that investors are unable to normally register or sell A-share obtained after SCPSB B-shares are converted into A-shares of Nanshan Holding, please check and ensure the information declared to be correct.
Manners to declare custody unit:
Please complete the Declaration Table for the Corresponding Relationship between the Custody Unit of A-shares and Custody Unit of B-shares (refer to Appendix 1 for details) and send the following documents tosqc@citics.com;
1) Copy and paste the completed Declaration Table in the body of the message;
2) Print and seal the completed Declaration Table, and send the scanned copy as an attachment of the message.
At the time of declaration, please completely declare the information on the custody unit of A-shares corresponding to the custody unit of B-shares. In case the information on the corresponding relationship would be declared for more than one times, the full declaration information which is received last by our company will prevail.
2. Where the custody unit of A-shares fails to been declared before the designated deadline, A-shares will be transferred to the custody unit designated by CITIC Securities, and investor may contact the CITIC Securities directly to handle custody transfer or make transaction directly.
If there are any questions, please contact Shennan Avenue Busienss Department of CITIC Securities Co., Ltd.
Contact information relating to the consultation and business of CITIC Securities:
Contact person: Shennan Avenue Busienss Department of CITIC Securities Co., Ltd.
Address: 19F, Xinian Center, No. 6021, Shennan Avenue, Futian District, Shenzhen
Tel.: 86-0755-83478795(Xiong Fei)
86-0755-83477941(Shao Qicong)
Fax: 86-0755-83459951
Email:sqc@citics.com
Section IV Transfer Registration Restricted Account
I. Allocation of transfer registration restricted account and third-party depository business handling
With respect to the domestic individual investor who has no A-share securities account under the one password account or has not confirmed the association relationship despite having an A-share securities account (hereinafter referred to as “Lack of Corresponding A-share Securities Account”), Nanshan Holding will apply to CSDC for allocating one transfer registration restricted account to the aforesaid free of any charge in accordance with the information of B-share securities account. As this securities account is restricted, only the sell order declaration can be made and other purposes are forbidden.
During the course to allocate the transfer registration restricted account, investors need not carry out any extra operation. After the transfer registration restricted account is allocated, the securities company will notify investors of relevant matters concerning the allocation of transfer registration restricted account by network, telephone, text message, announcement in places of business, etc. Business department of each securities company will assist the investor in opening the transfer registration restricted account, and investor is required to handle the third-party depository formalities for the transfer registration restricted account in the business department of securities account before making subsequent sell order transactions relating to the transfer registration restricted account.
Investor is required to sign the third-party depository agreement and handle the third-party depository formalities relating to the fund account in accordance with relevant regulations concerning third-party depository business of fund account specified by the securities company. The general handling procedures are that the securities company sends the pre-designated information relating to the fund account with RMB settlement function to the third-party depository bank, investor handles third-party depository formalities of fund account in the business branch of depository bank and then the third-party deposit ofinvestor’s fund account is achieved. Investor may inquire of the securities company where transactions of B-share securities account are made about the specific procedures for business handling and required information.
After the transfer registration restricted account is allocated, investor may inquire of the securities company which designates the custody unit of A-shares for him/her by inquiry counter, telephone, online trading system, etc. If there is no custody unit of A-shares designated for investor, he/she may inquire of CITIC Securities Co., Ltd by inquiry counter, telephone, online trading system, etc.
II. Way of order
After the listing of A-shares of Nanshan Holding, way of sell order relating to theinvestor’s transfer registration restricted account will be declared in the way of order that investor has applied to the business department of securities company where transactions of transfer registration restricted account are made to open; where the online trading order has been opened, investor may login in the online trading system through the account number and trading password of the transfer registration restricted account, inquire about the remaining A-shares of Nanshan Holding and fund balance of transfer registration restricted account and make sell order declaration.
III. Real-time market situation
Investor may obtain the real-time market situation and information of and suspension and resumption of trading relating to the A-shares of Nanshan Holding through the existing market situation display channel and way of the securities company where transactions of transfer registration restricted account are made, such as on-site self-service terminal of business department, online trading client terminal, etc.
IV Main trading rules
Stock code of sell order declaration of A-shares of Nanshan Holding is “002314” and name of securities is “Nanshan Holding”. The way of sell order declaration is basically same as the operation of B-shares.
(I) Limit of change
A-shares shall not increase or decrease by10% from the closing price of last trading day within trading hours that day.
Limit of change on ST shares and the shares that split share structure reform has not been finished is5%.
(II) Rotary trading system
The T+ 1 rotary trading system is implemented for the A-shares, namely, the shares brought that day can be sold in the following day. The investor relating to the transfer registration restricted account is only allowed to make the sell order declaration, so the rotary trading is not applicable.
(III) Trading unit
The transfer registration restricted account can only make the sell order and the declared quantity shall be 100 shares or its integral multiple. One-off sale declaration shall be made for the remaining shares less than 100 shares.
(IV) Minimum fluctuating price
Minimum fluctuating unit of declared price of A-shares is RMB 0.01.
(V) Trading hours
Monday to Friday (excluding the national holidays and day of suspension of trading stipulated by exchange);
9:15 to 9:25 of each trading day is the stage of opening call auction, wherein:
9:15 a.m. to 9:20 a.m.: Accept the trade declaration and the cancellation
9:20 a.m. to 9:25 a.m.: Accept the trade declaration, but do not accept the declaration of cancellation
The order that is not made during the call auction will automatically enter into the continuous auction;
From 9:30 to 11:30 and from 13:00 to 14:57 of each trading day is the time of continuous auction;
14:57 to 15:00 is the stage of closing call auction
V. Liquidation and settlement
Same rules are applied in transfer registration restricted account and ordinary A-share securities account and shares are liquidated and settled on the T+ 0 day, which means that the quantity of shares equal to the quantity of shares sold and concluded that day (T day) by the investor will
be decreased in the securities account that day; the fund is settled on the T+ 1 day, which
means that the investor can withdraw the fund obtained from the sale of shares that day (T day) in the following trading day (T+ 1 day).
VI. Payment of fund
As the fund account with RMB settlement function has been opened and the third-party depository formalities have been handled in accordance with the current account opening requirements relating to the A-share securities account when the transfer registration restricted account of investors is opened, the investor may transfer and withdraw the fund obtained from the sale of shares through the third-party depository bank of A-shares on the T+ 1 day. Investor cannot complete the sell order of A-shares of Nanshan Holding through the transfer registration restricted account until the transfer registration restricted account has been opened in the securities company where transactions of transfer registration restricted account will be made and third-party depository formalities have been handled, so the investor needs to handle relevant business formalities in the business department of securities company as early as possible.
VII. Capitalizing of common reserves, bonus shares and dividend distribution
The capitalizing of common reserves, registration of bonus shares and dividend distribution relating to the shares in the transfer registration restricted account shall be handled by reference to the existing normal A-share account.
VIII. Differentiated dividend tax
Calculation and withholding of differentiated dividend tax are handled in accordance with the existing business rules.
Section V Trading Cost
Trading cost relating to the investor who has established association relationship between the subaccount of A-shares and subaccount of B-shares and the investor who is allocated the transfer registration restricted account is same as the current transaction cost of ordinary A-share securities account.
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|Name of Trading Cost|Rate|OrdinaryB-shareSecuritiesAccount|OrdinaryA-shareSecuritiesAccount|TransferRegistrationRestrictedAccount|
|Commission fordomestic accountopening securitiescompany|Refer to originaltransaction commissionof A-share or B-share|√|√|√|
|Stamp tax|0.1% (only charge theseller)|√|√|√|
|Liquidation expense|0.05% (charged based onthe trading amount)|√|||
|Handling fee|0.0487‰ of the tradingamount(charge the buyerand seller)|√|√|√|
|Registration andtransfer fee|0.02‰ of the tradingamount(charge the buyerand seller)||√|√|
|Supervision fee|0.02‰ of the tradingamount(charge the buyerand seller)|√|√|√|

Section VI Inquiry Business
After SCPSB B-shares are converted into A-shares of Nanshan Holding, the investor who has established one password association relationship between the subaccount of A-shares and subaccount of B-shares may inquire about the remaining securities in the account and balance of fund in the current inquiry way relating to the securities account in the securities company where transactions of A-share securities account are made; The investor who is allocated the transfer registration restricted account may make an inquiry in the current inquiry way relating to the securities account in the securities company where transactions of transfer registration restricted account are made.
In addition, all investors may obtain all the disclosed information relating to this stock-for-stock conversion from the website of SZSE (http://www.szse.cn/).
Section VII Change of Account Information
The information relating to the transfer registration restricted account is copied from current information ofinvestor’s B-share securities. The investor whose identity information is changed is required to contact the securities company promptly, which is required to promptly handle the information change to the B-share securities account and transfer registration restricted account to ensure consistency.
Section VIII General Meeting of Shareholders
Investors may attend the General Meeting of Shareholders and make the voting on the scene in person or by proxy. With respect to the investors who intends to be present at the meeting, at the day of General Meeting of Shareholders, individual investors shall hold stock account card (the investors allocated the transfer registration restricted account may only hold the original B-share securities account card), personal ID card or other valid certificates or paper of identification that can prove the identity); representative of institutional investors shall hold the stock account card (the investors allocated the transfer registration restricted account may only hold the original B-share securities account card) and certificate provided by the unit of shareholder when attending the General Meeting of Shareholders. Agent shall also present the power of attorney and valid personal ID.
After the custody relationship for the transfer registration restricted account has been
established and third-party depository formalities have been handled, investors may make the online voting in accordance with the current voting procedures for the ordinary A-share securities account.
Section IX Allotment of Shares
Before foreign residents can subscribe A-shares, or foreign residents sell all A-shares of Nanshan Holding held by them, Nanshan Holding will take the fact that the part of trading rights relating to the A-share securities account are restricted with extreme caution and fully consider fairness of participation right of various investors when handling relevant matters including allotment of shares.
Section X Cancellation of Transfer Registration Restricted Account
When remaining A-shares of Nanshan Holding in the transfer registration restricted account of an investor is zero, the securities company where transactions of transfer registration restricted account are made may cancel the transfer registration restricted account.
Section XI Pledge, Freezing and Non-trading Transfer of Account
1. Pledge, non-trading transfer business: are handled in accordance with relevant business rules of CSDC.
2. Judicial business: is implemented with assistance provided by each securities company and CSDC.
Chapter II Foreign Investors for Domestic Transaction
In order to guarantee that investors can conduct transactions smoothly after SCPSB B-shares are converted into A-shares of Nanshan Holding, the foreign individual investors and foreign institutional investors for domestic transaction, to which this Chapter is applicable, shall fully understand and confirm the matters shown below:
1. With respect to the investor who holds the A-shares of Nanshan Holding as the shares are not sold on the last trading day of SCPSB B-shares and fails to validly declare the cash option, sale of shares in future will be liquidated by RMB and settled by HKD finally by each securities company after purchasing foreign exchange through the foreign exchange purchase bank, and the exchange rate when purchasing foreign exchange uses the selling price of spot exchange of RMB to HKD on the day when the foreign exchange purchase bank purchasing foreign exchange;
2. With respect to the foreign individual investors and foreign institutional investors for domestic transaction, to which this Chapter is applicable, Nanshan Holding shall apply to CSDC to allocate one transfer registration restricted account which only can makes the sell order declaration and shall not be used for other purposes. Relevant investors shall fully understand the restrictions on trading;
3. An investor shall confirm that he/she is the investor, to which this Chapter is applicable, otherwise, potentially, relevant contents of this Operational Guidelines are not completely applicable;
4. Investors shall fully understand the differences of trading rules and expenses between B-shares and A-shares;
5. Stock code of trade declaration of A-shares of Nanshan Holding is 002314 and name of securities is “Nanshan Holding”;
6. Investors shall continuously pay attention to relevant announcements issued by SCPSB and Nanshan Holding and learn the progress of this stock-for-stock merger;
7. Investor may inquire of the securities company where transactions of B-share securities account are made about the specific ways of business operation relating to the account conversion.
Section I Business-related Organizations
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|Full name oforganization|Abbreviation inthis Guidelines|Main relevant matters|
|Shenzhen New NanshanHolding(Group) Co.,Ltd.|NanshanHolding|Information disclosure|
|Shenzhen ChiwanPetroleum Supply BaseCo., Ltd.|SCPSBSCPSB –B|Information disclosure|
|China SecuritiesDepository and ClearingCorporation Limited|CSDC|Confirmation of the association relationship between A- sharesubaccount and B-share subaccount under the one passwordaccount of investors and allocation of transfer registrationrestricted account|
|Shenzhen StockExchange|SZSE|Restrictions on buy order declaration of transfer registrationrestricted account|
|Domestic securitiescompanies|Domesticsecuritiescompanies|Handle all business applications of investors and consultation,communication and notice; assist investors in opening thetransfer registration restriction account in the trading systemand assist investors to complete the handling formalities ofthird party custody meanwhile.|

Section II Determine the Custody Unit of A-shares of Nanshan Holding As SZSE implements the shares custody transfer trading system, one investor may have more than one custody unit under one securities account. Therefore, custody unit of A-shares of Nanshan Holding will be determined in accordance with the principles shown below after stock conversion:
1. After asking for the advices of investors, the domestic securities company which serves as the custody unit of SCPSB B-shares shall declare the custody unit of A-shares for each investor of SCPSB B-shares before 4 June, 2018, which shall ensure investors can normally trade the A-shares of Nanshan Holding.
A-shares of Nanshan Holding will be held in custody in the declared custody unit of A-shares corresponding to the original custody unit of B-shares after SCPSB B-shares are converted into A-shares of Nanshan Holding. The mistaken declaration information on the custody unit of A-share, if any, may result in that investors are unable to normally register or sell A-share obtained after SCPSB B-shares are converted into A-shares of Nanshan Holding, please check and ensure the information declared to be correct.
Manners to declare custody unit: Please complete the Declaration Table for the Corresponding Relationship between the Custody Unit of A-shares and Custody Unit of B-shares (refer to Appendix 1 for details) and send the following documents tosqc@citics.com;
1) Copy and paste the completed Declaration Table in the body of the message;
2) Print and seal the completed Declaration Table, and send the scanned copy as an attachment of the message.
At the time of declaration, please completely declare the information on the custody unit of A-shares corresponding to the custody unit of B-shares. In case the information on the corresponding relationship would be declared for more than one times, the full declaration information which is received last by our company will prevail.
2. Where the custody unit of A-shares fails to be declared before the designated deadline, A-shares will be transferred to the custody unit designated by CITIC Securities, and investor may contact the CITIC Securities directly to handle custody transfer or make transaction directly.
If there are any questions, please contact Shennan Avenue Business Department of CITIC Securities Co., Ltd.
Contact information relating to the consultation and business of CITIC Securities:
Contact person: Shennan Avenue Busienss Department of CITIC Securities Co., Ltd.
Address: 19F, Xinian Center, No. 6021, Shennan Avenue, Futian District, Shenzhen
Tel.: 86-0755-83478795(Xiong Fei)
86-0755-83477941(Shao Qicong)
Fax: 86-0755-83459951
Email:sqc@citics.com
Section III Transfer Registration Restricted Account
I. Allocation of transfer registration restricted account
With respect to all the foreign investors, to which this Chapter is applicable, Nanshan Holding will apply to the CSDC to allocate transfer registration restricted account to the aforesaid free of any charge in accordance with the information of B-share securities account after the cash option business relating to the SCPSB B-shares has been completed. As this securities account is restricted, only the sell order declaration can be made and other purposes are forbidden. The securities company will notify investors of relevant matters concerning the allocation of transfer registration restricted account by network, telephone, text message, announcement in places of business, etc. Business department of each securities company will assist the investor in opening the RMB settlement function for the original B-share fund account before making subsequent sell order transactions relating to the transfer registration restricted account. Investors do not have to make additional operations during the process of allocation of transfer registration restricted account. The securities company where transaction ofinvestors’ B-share securities account are made will notify investors of relevant matters concerning the allocation of transfer registration restricted account by network, telephone, text message, announcement in places of business, etc. prior to the listing of A-shares of Nanshan Holding. Please pay attention to relevant notices and announcements.
After the transfer registration restricted account is allocated, investor may inquire of the securities company which designates the custody unit of A-shares for him/her by inquiry counter, telephone, online trading system, etc. If there is no custody unit of A-shares designated for investor, he/she may inquire of CITIC Securities Co., Ltd by inquiry counter, telephone, online trading system, etc.
II. Way of order
After listing of A-shares of Nanshan Holding, way of sell order relating to theinvestor’s transfer registration restricted account will be declared in the way of order that investor has applied to the business department of securities company where transactions of transfer registration restricted account are made to open; where the online trading order has been opened, investor may login in the online trading system through the account number and trading password of newly opened transfer registration restriction account, inquire about the remaining A-shares of Nanshan Holding and fund balance of transfer registration restricted account and make sell order declaration.
III. Real-time market situation
Investor may obtain the real-time market situation and information of and suspension and resumption of trading relating to the A-shares of Nanshan Holding through the existing market situation display channel and way of the securities company where transactions of transfer registration restricted account are made, such as on-site self-service terminal of business department, online trading client terminal, etc.
IV Main trading rules
Stock code of sell order declaration of A-shares of Nanshan Holding is 002314 and name of securities is “Nanshan Holding”. The way of sell order declaration is basically same as the operation of B-shares.
(I) Limit of change
A-shares shall not increase or decrease by10% from the closing price of last trading day within
trading hours that day.
Limit of change on ST shares and the shares that split share structure reform has not been finished is5%.
(II) Rotary trading system
The T+ 1 rotary trading system is implemented for the A-shares, namely, the shares brought that day can be sold in the following day. The investor relating to the transfer registration restricted account is only allowed to make the sell order declaration, so the rotary trading is not applicable.
(III) Trading unit
For A-share bought via bidding mode, the declared quantity shall be 100 shares or its integral multiple. One-off sale declaration shall be made for the remaining shares less than 100 shares. (IV) Minimum fluctuating price
Minimum fluctuating unit of declared price of A-shares is RMB 0.01.
(V) Transaction date
Monday to Friday (excluding the national holidays and day of suspension of trading stipulated by exchange);
9:15 to 9:25 of each trading day is the stage of opening call auction, wherein:
9:15 a.m. to 9:20 a.m.: Accept the trade declaration and the cancellation
9:20 a.m. to 9:25 a.m.: Accept the trade declaration, but do not accept the declaration of cancellation
The order that is not made during the call auction will automatically enter into the continuous auction;
From 9:30 to 11:30 and from 13:00 to 14:57 of each trading day is the time of continuous auction;
14:57 to 15:00 is the stage of closing call auction
V. Liquidation and settlement
Same rules are applied in transfer registration restricted account and ordinary A-share securities account and shares are liquidated and settled on the T+ 0 day, which means that the quantity of shares equal to the quantity of shares sold and concluded that day (T day) by the investor will be decreased in the securities account that day; the RMB fund is settled on the T+ 1 day, which means that the investor can withdraw the RMB fund obtained from the sale of shares that day (T day) in the following trading day (T+ 1 day).
With respect to the foreign investors, to which this Chapter is applicable to, the RMB fund obtained from sale of shares cannot be used, withdrawn and required to be converted into HKD in accordance with requirements of State Administration of Foreign Exchange, namely, the securities company converts the RMB fund into HKD and make the settlement. Therefore, the RMB fund obtained from sale of shares ofinvestor’s transfer registration restricted account will be settled on the T+ 1 day; the HKD fund that can be withdrawn finally will be settled on the T+ 3 day after foreign exchange purchase bank has purchased foreign exchange, which means the investor may apply to the securities company to withdraw the HKD obtained from sale of shares on the T+ 3 day. Investor may inquire of the securities company where transactions of transfer registration account are made about the specific ways of details.
VI. Payment of fund
Investor may send withdrawal application to the securities company on and following T+ 3 day. The withdrawal application procedures are same as the current withdrawal procedures ofinvestor’s B-shares. After withdrawal application procedures pass the internal audit of the securities company, the securities company transfer the net amount of HKD fund that investor applies for withdrawal to the investor after deducting charges for remittance.
Before the investor makes the withdrawal application, the interest accrued when HKD fund is deposited in each domestic securities company and current interest of HKD within the same period will be settled with the investor and included in the fund account of investor accordingly on the value date.
VII. Capitalizing of common reserves, bonus shares and dividend distribution
The capitalizing of common reserves, registration of bonus shares and dividend distribution relating to the shares in the transfer registration restricted account shall be handled by reference to the existing normal A-share account.
Section IV Trading Cost
The foreign investor who opens the transfer registration restricted account is required to pay commission, stamp tax, etc. same as the current ordinary A-share securities account and the foreign exchange purchase expenses of RMB to HKD and charges for remittance of HKD. Currently, the foreign exchange purchase of HKD involves no additional expenses and the exchange rate when purchasing foreign exchange uses the selling price of spot exchange of RMB to HKD on the day when the foreign exchange purchase bank purchasing foreign exchange. Charges for remittance of HKD are subject to the charges of the foreign exchange purchase bank.
||||||
|-|-|-|-|-|
|Name of TradingCost|Rate|OrdinaryB-shareSecuritiesAccount|OrdinaryA-shareSecuritiesAccount|TransferRegistrationRestrictedAccount|
|Commission fordomestic accountopening securitiescompany|Refer to original transactioncommission of A-share or B-share|√|√|√|
|Stamp tax|0.1% (only charge the seller)|√|√|√|
|Liquidationexpense|0.05% (charged based on thetrading amount)|√|||
|Foreign exchangepurchase expenseof HKD|It is handled in accordance withthe selling price of spot exchangeof RMB to HKD when the foreignexchange bank purchasing offoreign exchange.||||
|Charges forremittance of HKD|Charges for remittance of HKDare subject to the charges of theforeign exchange purchase bank.|||√|
|Brokerage|0.0487‰ of the tradingamount(charge the buyer andseller)|√|√|√|
|Registration andtransfer fee|0.02‰ of the tradingamount(charge the buyer andseller)||√|√|
|Supervision fee|0.02‰ of the tradingamount(charge the buyer andseller)|√|√|√|

Section V Inquiry Business
After SCPSB B-shares are converted into A-shares of Nanshan Holding, the investor may inquire about the remaining securities in the account and balance of fund in the current inquiry way relating to the securities account in the securities company where transactions of transfer registration restricted account are made.
In addition, all investors may obtain all the disclosed information relating to this stock-for-stock conversion from the website of SZSE (http://www.szse.cn/).
Section VI Change of Account Information
The information relating to the transfer registration restricted account is copied from current information ofinvestor’s B-share securities. The investor whose identity information is changed is required to contact the securities company promptly, which is required to promptly handle the information change to the B-share securities account and transfer registration restricted account to ensure consistency.
Section VII General Meeting of Shareholders
Investor may attend the General Meeting of Shareholders and make the voting on the scene in person or by proxy. With respect to the investor who intends to be present at the meeting, at the day of General Meeting of Shareholders, individual investor shall hold stock account card (the investor allocated the transfer registration restricted account may only hold the original B-share securities account card), personal ID card or other valid certificates or paper of identification that can prove the identity; representative of institutional investor shall hold the stock account card of the unit of shareholder (the investor allocated the transfer registration restricted account may only hold the original B-share securities account card) and certificate provided by the unit of shareholder when attending the General Meeting of Shareholders. Agent shall also present the power of attorney and valid personal ID.
After the custody relationship for the transfer registration restricted account has been
established, investor may make the online voting in accordance with the current voting procedures for the ordinary A-share securities account.
Section VIII Allotment of Shares
Before foreign residents can subscribe A-shares, or foreign residents sell all A-shares of Nanshan Holding held by them, Nanshan Holding will take the fact that the part of trading rights relating to the A-share securities account are restricted with extreme caution and fully consider fairness of participation right of various investors when handling relevant matters including allotment of shares.
Section IX Cancellation of Transfer Registration Restricted Account
When remaining A-shares of Nanshan Holding in the transfer registration restricted account of investor is zero, the securities company where transactions of transfer registration restricted account are made may cancel the transfer registration restricted account.
Section X Pledge, Freezing and Non-trading Transfer of Account
1. Pledge, non-trading transfer business: are handled in accordance with relevant business rules of CSDC.
2. Judicial business: is implemented with assistance provided by each securities company and CSDC.
Chapter III Foreign Investor for Non-domestic Transaction
In order to guarantee that investors can conduct transactions smoothly after SCPSB B-shares are converted into A-shares of Nanshan Holding, the foreign individual investors and foreign institutional investors for non-domestic transaction, to which this Chapter is applicable, shall fully understand and confirm the matters shown below:
1. With respect to the investor who holds the A-shares of Nanshan Holding as the shares are not sold on the last trading day of SCPSB B-shares and fails to validly declare the cash option, sale of shares in future will be liquidated by RMB and settled by HKD finally by the securities company where transactions of transfer registration restricted account are made after
purchasing foreign exchange through the foreign exchange purchase bank, and the exchange rate when purchasing foreign exchange uses the selling price of spot exchange of RMB to HKD on the day when the foreign exchange purchase bank purchasing foreign exchange;
2. With respect to the foreign individual investors and foreign institutional investors for non-domestic transaction, to which this Chapter is applicable, Nanshan Holding will apply to CSDC to allocate one transfer registration restricted account which only can makes the sell order declaration and shall not be used for other purposes, and relevant investors shall fully understand the restrictions on trading;
3. No transaction and settlement are made temporarily by securities company after CSDC allocates transfer registration restricted account to the investor. Investor is required to designate one domestic securities company as that where transactions of transfer registration restricted account are made and handle formalities for opening fund account in the business department of this securities company to achieve the normal sale of A-shares of Nanshan Holding from this transfer registration restricted account. Such investors are proposed to select CITIC Securities as the securities company where transactions of transfer registration restricted account are made; After determining the domestic securities company, investor is required to timely submit its custody unit to CITIC Securities. For the investor who fails to submit its custody unit timely, his/her shares after conversion will be held in custody in the custody unit designated by CITIC Securities. And investor may subsequently contact CITIC Securities directly to handle custody transfer or make transaction directly.
4. Investor shall confirm that he/she is the investor, to which this Chapter is applied, otherwise, potentially, relevant contents of this Operational Guidelines are not complete applicable; 5. Investors shall fully understand the differences of trading rules between B-shares and A-shares;
6. Stock code of trade declaration of A-shares of Nanshan Holding is 002314 and name of securities is “Nanshan Holding”
7. Investors shall continuously pay attention to relevant announcements issued by SCPSB and Nanshan Holding and learn the progress of this stock-for-stock merger;
8. In accordance with the Guidelines on the Registration and Settlements Service of B-share Business, the shareholders of SCPSB B-shares may appoint agent to apply to CSDC Shenzhen Branch (contact person: Ni Hao,hni@chinaclear.cn) for the share adjustment of the agent account May 30, 2018.
9. Investors may inquire of the securities company where the transfer registration restricted account is made about the specific ways of business operation relating to the account
conversion.
Section I Business-related Organizations
||||
|-|-|-|
|Full name oforganization|Abbreviation inthis Guidelines|Main relevant matters|
|Shenzhen New NanshanHolding(Group)Co., Ltd.|NanshanHolding|Information disclosure|
|Shenzhen ChiwanPetroleum Supply BaseCo., Ltd.|SCPSB,SCPSBB|Confirmation of the association relationship between A- sharesubaccount and B-share subaccount under the one passwordaccount of investors and allocation of transfer registrationrestricted account|
|Shenzhen StockExchange|SZSE|Restrictions on buy order declaration of transfer registrationrestricted account|
|CITIC Securities Co.,Ltd|CITICSecurities|Provide business consultation and handling service for theinvestor involved in this account conversion.|
|Domestic securitiescompanies|Domesticsecuritiescompanies|Handle all business applications of investors and consultation,communication and notice; assist investors in openingcommon A-shares account the transfer registration restrictionaccount in the trading system and assist investors to completethe handling formalities of third party custody meanwhile.|

Section II Determine the Custody Unit of A-shares of Nanshan Holding As SZSE implements the shares custody transfer trading system, one investor may have more than one custody unit under one securities account. Therefore, custody unit of A-shares of Nanshan Holding will be determined in accordance with the principles shown below after stock conversion:
1. Investor who would designate its custody unit by himself/herself may contact CITIC Securities and designate the future custody unit of Nanshan Holding A-shares prior to 4 June, 2018.
Manners to declare custody unit: Please complete the Declaration for the Custody Unit of B-share Investors for Non-domestic Transaction (refer to Appendix 2 for details) and the securities company of designated custody unit of A-shares shall send the following documents tosqc@citics.com;
1) Copy and paste the completed Declaration for the Custody Unit of B-share Investors for Non-domestic Transaction in the body of the message;
2) Print and seal the completed Declaration for the Custody Unit of B-share Investors for Non-domestic Transaction, and send the scanned copy as an attachment of the message. At the time of declaration, please completely declare the information on the custody unit of A-shares. In case the information would be declared for more than one times, the full
declaration information which is received last by our company will prevail.
2. To offer convenience to investors, our company entrusts CITIC Securities to provide default custody unit. In case the foreign investor for non-domestic transaction of B-sharedon’t declare his/her custody unit to CITICS Securities before June 4, 2018, the A-shares of Nanshan Holding obtained will be automatically held in custody in the custody unit of Shennan Avenue Business Department of CITIC Securities Co., Ltd. The aforesaid investor will not carry out transaction, custody transfer and other operation until he/she handles related formalities such as opening fund account in Shennan Avenue Business Department of CITIC Securities Co., Ltd. If there are any questions, please contact Shennan Avenue Business Department of CITIC Securities Co., Ltd.
Contact information relating to the consultation and business of CITIC Securities:
Contact person: Shennan Avenue Business Department of CITIC Securities Co., Ltd.
Address: 19F, Xinian Center, No. 6021, Shennan Avenue, Futian District, Shenzhen
Tel.: 86-0755-83478795(Xiong Fei)
86-0755-83477941(Shao Qicong)
Fax: 86-0755-83459951
Email:sqc@citics.com
Section III Transfer Registration Restricted Account
I. Allocation of transfer registration restricted account
With respect to all the foreign investors, to which this Chapter is applicable, Nanshan Holding will apply to the CSDC to allocate transfer registration restricted account to the aforesaid free of any charge in accordance with the information of B-share securities account after the cash option business relating to the SCPSB B-shares has been completed. As this securities account is restricted, only the sell order declaration can be made and other purposes are forbidden. As B-share securities account of investor is not opened in any domestic securities company, the investor, after knowing relevant matters concerning this account conversion, is required to designate one domestic securities company as that where future transactions of transfer registration restricted account will be made (see Section II of this Chapter for details). Investor is required to handle the formalities for opening fund account in this securities company and this securities company has opened the fund account of transfer registration restricted account of investor, then the inquiry and sell order declaration relating to the A-shares of Nanshan Holding in the transfer registration restricted account can be made.
Investor, after knowing relevant matters concerning this account conversion, is required to determine one securities company as that where future transactions of transfer registration restricted account will be made and handle formalities for opening fund account in the business department of this securities company to achieve the normal sale of A-shares of Nanshan Holding from this transfer registration restricted account. It is suggested that the aforesaid investor gives preference to the CITIC Securities as the securities company where future transactions of transfer registration restricted account will be made.
II. Way of account opening
For detailed procedures relating to the account opening formalities, investor may consult the CITIC Securities.
Investor cannot make the sell order declaration of A-shares of Nanshan Holding until the securities company where future transactions of transfer registration restricted account will be made has been determined and account has opened in this securities company.
Investor may contact CITIC Securities (entrusted by Nanshan Holding) and inquire about the information relating to the transfer registration restricted account.
Meanwhile, investor may also contact CITIC Securities and consult the business procedures relating to the account opening, subsequent operations of transfer registration restricted account, etc. involved in this account conversion, and may complete the handling of aforesaid businesses in CITIC Securities. Investor, after knowing details of relevant businesses, may also choose other domestic securities companies and handle relevant businesses. For procedures for handling businesses, investor may consult the securities company chosen by him/her.
Contact information relating to the consultation and business of CITIC Securities:
Contact person: Shennan Avenue Business Department of CITIC Securities Co., Ltd.
Address: 19F, Xinian Center, No. 6021, Shennan Avenue, Futian District, Shenzhen
Tel.: 86-0755-83478795(Xiong Fei)
86-0755-83477941(Shao Qicong)
Fax: 86-0755-83459951
Email:sqc@citics.com
III. Way of order
After the securities account where transactions of transfer registration restricted account are made has completed account opening procedures for the investor, way of sell order relating to theinvestor’s transfer registration restricted account will be declared in various ways of order that investor has applied to the business department of securities company where transactions of transfer registration restricted account are made to open; where the online trading order has been opened, investor may login in the online trading system through the fund account number and trading password set when opening account, inquire about the remaining A-shares of Nanshan Holding and fund balance of transfer registration restricted account and make sell order declaration.
IV. Real-time market situation
Investor may obtain the real-time market situation and information of and suspension and resumption of trading relating to the A-shares of Nanshan Holding through the existing market situation display channel and way of the securities company where transactions of future transfer registration restricted account are made, such as on-site self-service terminal of business department, online trading client terminal, etc.
V. Main trading rules
Stock code of sell order declaration of A-shares of Nanshan Holding is 002314, name of securities is “Nanshan Holding” and the way of sell order declaration is basically same as the operation of B-shares.
(I) Limit of change
A-shares shall not increase or decrease by10% from the closing price of last trading day within trading hours that day.
Limit of change on ST shares and the shares that split share structure reform has not been finished is5%.
(II) Rotary trading system
The T+ 1 rotary trading system is implemented for the A-shares, namely, the shares brought that day can be sold in the following day. The investor relating to the transfer registration restricted account is only allowed to make the sell order declaration, so the rotary trading is not applicable.
(III) Trading unit
For A-share bought via bidding mode, the declared quantity shall be 100 shares or its integral multiple. One-off sale declaration shall be made for the remaining shares less than 100 shares. (IV) Minimum fluctuating price
Minimum fluctuating unit of declared price of A-shares is RMB 0.01.
(V) Transaction date
Monday to Friday (excluding the national holidays and day of suspension of trading stipulated by exchange);
9:15 to 9:25 of each trading day is the stage of opening call auction, wherein:
9:15 a.m. to 9:20 a.m.: Accept the trade declaration and the cancellation
9:20 a.m. to 9:25 a.m.: Accept the trade declaration, but do not accept the declaration of cancellation
The order that is not made during the call auction will automatically enter into the continuous auction;
From 9:30 to 11:30 and from 13:00 to 14:57 of each trading day is the time of continuous auction;
14:57 to 15:00 is the stage of closing call auction
VI. Liquidation and settlement
Same rules are applied in transfer registration restricted account and ordinary A-share securities account and shares are liquidated and settled on the T+ 0 day, which means that the quantity of shares equal to the quantity of shares sold and concluded that day (T day) by the investor will be decreased in the securities account that day; the RMB fund is settled on the T+ 1 day, which means that the investor can withdraw the RMB fund obtained from the sale of shares that day (T day) in the following trading day (T+ 1 day).
With respect to the foreign investors, to which this Chapter is applicable to, the RMB fund obtained from sale of shares cannot be used, withdrawn and is required to be converted into HKD in accordance with requirements of State Administration of Foreign Exchange, namely, the securities company converts the RMB fund into HKD and make the settlement. Therefore, the RMB fund obtained from sale of shares ofinvestor’s transfer registration restricted account will be settled on the T+ 1 day; the HKD fund that can be withdrawn finally will be settled on the T+ 3 day after foreign exchange purchase bank has purchased foreign exchange, which means the investor may apply to the securities company to withdraw the HKD obtained from sale of shares on the T+ 3 day. Investor may inquire of the securities company where
transactions of transfer registration account are made about the specific ways of details. VII. Payment of fund
After inquiring that balance of HKD in the fund account opened in the securities company where transactions of transfer registration restricted account are made increases, investor may send withdrawal application to this securities company; with respect to the details of
withdrawal application procedures, formalities, final way of payment of fund and costs, investor may inquire of this securities company.
VIII. Capitalizing of common reserves, bonus shares and dividend distribution
The capitalizing of common reserves, registration of bonus shares and dividend distribution relating to the shares in the transfer registration restricted account shall be handled by reference to the existing normal A-share account.
Section IV Trading Cost
The foreign investor who opens the transfer registration restricted account is required to pay commission, stamp tax, etc. same as the current ordinary A-share securities account and the foreign exchange purchase expenses of RMB to HKD and charges for remittance of HKD. Currently, the foreign exchange purchase of HKD involves no additional expenses and the exchange rate when purchasing foreign exchange uses the selling price of spot exchange of RMB to HKD on the day when the foreign exchange purchase bank purchasing foreign exchange. Charges for remittance of HKD are subject to the charges of the foreign exchange purchase bank.
||||||
|-|-|-|-|-|
|Name of TradingCost|Rate|OrdinaryB-shareSecuritiesAccount|OrdinaryA-shareSecuritiesAccount|TransferRegistrationRestrictedAccount|
|Commission fordomestic accountopening securitiescompany|Refer to original transactioncommission of A-share or B-share|√|√|√|
|Stamp tax|0.1% (only charge the seller)|√|√|√|
|Liquidationexpense|0.05% (charged based on thetrading amount)|√|||
|Foreign exchangepurchase expenseof HKD|It is handled in accordance with theselling price of spot exchange ofRMB to HKD when the foreignexchange bank purchasing offoreign exchange.||||
|Charges forremittance of HKD|Charges for remittance of HKD aresubject to the charges of the foreignexchange purchase bank.|||√|
|Handle fee|0.0487‰ of tradingamount(charge the buyer andseller)|√|√|√|
|Registration andtransfer fee|0.02‰ of the tradingamount(charge the buyer andseller)||√|√|
|Supervision fee|0.02‰ of the tradingamount(charge the buyer andseller)|√|√|√|

Section V Inquiry Business
After SCPSB B-shares are converted into the A-shares of Nanshan Holding, the investor may inquire about the remaining securities in the account and balance of fund in the current inquiry way relating to the securities account in the securities company where transactions of transfer registration restricted account are made.
In addition, all investors may obtain all the disclosed information relating to this stock-for-stock conversion from the website of SZSE (http://www.szse.cn/).
Section VI Change of Account Information
The information relating to the transfer registration restricted account is copied from current information ofinvestor’s B-share securities. The investor whose identity information is changed is required to contact the securities company promptly, which is required to promptly handle the information change to the B-share securities account and transfer registration restricted account to ensure consistency.
Section VII General Meeting of Shareholders
Investor may attend the General Meeting of Shareholders and make the voting on the scene in person or by proxy. With respect to the investor who intends to be present at the meeting, at the day of General Meeting of Shareholders, individual investor shall hold stock account card (the investor allocated the transfer registration restricted account may only hold the original B-share securities account card), personal ID card or other valid certificates or paper of identification that can prove the identity); representative of institutional investor shall hold the stock account card of the unit of shareholder (the investor allocated the transfer registration restricted account may only hold the original B-share securities account card) and certificate provided by the unit of shareholder when attending the General Meeting of Shareholders. Agent shall also present the power of attorney and valid personal ID.
After having determined the domestic securities company where transactions of transfer registration account will be made and handled account opening procedures in this securities company, investor may make the online voting in accordance with the current voting
procedures for the ordinary A-share securities account.
Investor who has not determined the securities company where future transactions of transfer registration restricted account will be made and handled account opening procedures in this securities company is required to contact Nanshan Holding and attend the General Meeting of Shareholders and vote by himself/herself.
Contact information of Nanshan Holding:
Address: No. 1801, Zhuoyue Houhai Center, Haide No. 3 Street, Nanshan District, Shenzhen, Guangdong Province
Contact person: Shen Qimeng
Tel.: 0755-33372314
Fax: 0755-33300718
Section VIII Allotment of Shares
Before foreign residents can subscribe A-shares, or foreign residents sell all A-shares of Nanshan Holding held by them, A-shares of Nanshan Holding will take the fact that the part of trading rights relating to the A-share securities account are restricted with extreme caution and fully consider fairness of participation right of various investors when handling relevant matters including allotment of shares.
Section IX Cancellation of Transfer Registration Restricted Account
When remaining A-shares of Nanshan Holding in the transfer registration restricted account of investor is zero, the securities company where transactions of transfer registration restricted account are made may cancel the transfer registration restricted account.
Section X Pledge, Freezing and Non-trading Transfer of Account
1. Pledge, non-trading transfer business: are handled in accordance with relevant business rules of CSDC.
2. Judicial business: is implemented with assistance provided by each securities company and CSDC.
Appendix 1
Declaration Table for the Corresponding Relationship between the Custody Unit of A-shares and the Custody Unit of B-shares
||||||||||
|-|-|-|-|-|-|-|-|-|
|SerialNo.|Code ofpersonparticipatingintosettlement|Name ofshareholderof SCPSB|Shareaccountnumber ofshareholderof SCPSB|Number ofshares heldbyshareholderof SCPSB|Custody unit ofB-shares||Custody unit ofB-shares||
||||||No. ofcustodyunit|Nameofcustodyunit|No. ofcustodyunit|Nameofcustody unit|
|1|||||||||
|2|||||||||

Handler: Contact number:
Full name of person participating into settlement:
(Company’s stamp)
Date:
Appendix 2:
Declaration for the Custody Unit of B-share Investors of Non-domestic Transaction I/Our company (ID number/registration number: , Security account number of Shenzhen Stock ) is the foreign investor for non-domestic transaction of SCPSB B-shares. In accordance with the Bulletin for Foreign B-share Investors for Non-domestic Transaction to Declare Information on Custody Unit, since I/our company has determined matters of custody with the domestic securities company(name of securities company: ), I/our company herein declare that all A-shares of Nanshan Holding obtained by converting the SCPSB B-shares held by me/our company, totally___ _shares, will be held in custody in (name of securities company), whose A-share seat No. in Shenzhen Stock Exchange is .
Name of applicant:
Type of identity document of the applicant:
Number of identity document of the applicant:
Signed/stamped by the applicant:
Application date:
Handler of securities company: , Contact number:
Full name of person participating into Securities Company(company’s seal):
Date:
(This page is left for signature on Operational Guidelines for Account Conversion Investors Related to the Stock-for-stock Merger of Shenzhen Chiwan Petroleum Supply Base Co., Ltd. by Shenzhen New Nanshan Holding(Group)Co., Ltd. and Associated Transaction and the Listing of A and B-share Securities)
Shenzhen Chiwan Petroleum Supply Base Co., Ltd. Date: