Learn chinese Stock Market Trading mechanism Basics

Since December 16, 1996, an increase ceiling and decrease floor of 10% applies
to every stock during one-day trading. This practice says that the maximum stock

price during a trading day is 110% of the previous closing price; the minimum
stock price is 90% of the previous closing price.

(2) An A share applies a T+1 settlement policy
(3) For every trade of A-share stock, the minimum investment is 100 shares. The

actual number of shares purchased/sold for every trading is the integer times 100
shares. When the investment is less than Yuan 30 million, the maximum number

of shares traded is less than 100,000 shares. When the investment is more than

Yuan 30 million and less than Yuan 100 million, the maximum number of shares
traded is less than 200,000 shares. For every trade of B-share stock, the minimum

investment is 1000 shares. The actual number of shares purchased/sold for every
trading is the integer times 1000 shares. There is no maximum investment limit

for B-share stock.

(4) For A shares, the commission is smaller than or equal to 0.3% of the stock value,
and the minimum is Yuan 5. The stamp tax is 0.2% of the stock value. There is a

stock transfer fee, which is equal to 0.1% of the stock value. For B shares, the
commission is smaller than or equal to 0.3% of the stock value, and the minimum

is 1 U.S. dollar. The stamp tax is 0.2% of the stock value. There is a settlement

fee, which is equal to 0.05% of the stock value. For both A and B shares, there is
no income tax, such as a capital gains tax.