Entrustment Agreement of Shanghai Stock Exchange's Hong Kong Stock Connect

Entrustment Agreement of Shanghai Stock Exchange's Hong Kong Stock Connect

Party A: Name (or name):

Home address (or residence):

Name of legal representative (institutional client):

Personal ID number (individual customer):

Company business license number (institutional customer):

Contact information:

Party B: Business Department (Branch) of Pacific Securities Co., Ltd.

Address:

Contact information:

According to People's Republic of China (PRC) Securities Law, People's Republic of China (PRC) Contract Law, People's Republic of China (PRC) Electronic Signature Law and other relevant laws, regulations, rules, self-discipline rules, the business rules of China Depository and Clearing Co., Ltd. (hereinafter referred to as China Clearing) and the trading rules of the stock exchange, Party A and Party B have reached the following agreement on matters related to Party A's entrustment of Party B to conduct Hong Kong Stock Connect trading.

The Hong Kong Stock Connect referred to in this Agreement is the Hong Kong Stock Connect under the Shanghai-Hong Kong Stock Connect. When Party A signs this Agreement, it can only entrust Party B to buy and sell the shares of Hong Kong Stock Connect under the Shanghai-Hong Kong Stock Connect. Securities bought by Party A through Hong Kong Stock Connect under Shanghai-Hong Kong Stock Connect cannot be sold through Hong Kong Stock Connect under Shenzhen-Hong Kong Stock Connect for the time being; The securities bought by Party A through the Hong Kong Stock Connect under Shenzhen-Hong Kong Stock Connect cannot be sold through the Hong Kong Stock Connect under Shanghai-Hong Kong Stock Connect for the time being.

Chapter I Statements and Commitments of Both Parties

Article 1 Party A makes the following statements and commitments to Party B:

(1) Party A has read and fully understood the provisions of the China Securities Regulatory Commission on the interconnection mechanism between the mainland and Hong Kong stock markets, the business rules of Shanghai Stock Exchange (hereinafter referred to as Shanghai Stock Exchange) and China Securities Depository and Clearing Co., Ltd. (hereinafter referred to as China Clearing) on Hong Kong Stock Connect, and other relevant documents provided by Party B.. Party A is legally qualified to trade in Hong Kong Stock Connect, and there are no laws, administrative regulations or departmental rules.

(2) Party A guarantees that all documents and materials provided to Party B during the existence of the entrustment relationship between Party A and Party B are true, accurate, complete and legal, and the sources of funds used for the trading of Hong Kong Stock Connect are legal, and guarantees to abide by the relevant national anti-money laundering regulations;

(3) Party A has clearly understood and is willing to bear the risks related to engaging in the trading of Hong Kong Stock Connect, and has carefully read all the terms of this agreement to accurately understand its meaning, especially the exemption clauses related to Party B;

(4) Party A promises to abide by the laws, administrative regulations, departmental rules, normative documents, business rules and other provisions of the Mainland and Hong Kong on the trading of Hong Kong Stock Connect, and promises to handle business in accordance with Party B's relevant business processes;

(V) Party A promises that China Clearing will hold the securities obtained through Hong Kong Stock Connect on its behalf;

(6) Party A promises that it will follow the principle of buyer's own responsibility, and will not refuse to undertake the trading and settlement responsibilities of Hong Kong Stock Connect on the grounds that it does not meet the investor's suitability conditions;

(VII) Party A guarantees that the contents of the above statements and commitments are my true wishes, and voluntarily bears all the consequences of false statements.

Article 2 Party B represents and promises to Party A as follows:

(1) Party B or the securities company to which Party B belongs is a securities operating institution established and effectively existing in accordance with mainland laws, with corresponding securities brokerage business qualifications, and has opened the trading authority of the Hong Kong Stock Connect business;

(2) Party B promises to abide by this agreement and provide services related to the trading of Hong Kong Stock Connect for Party A according to this agreement;

(3) Party B promises to abide by relevant laws, regulations, rules, self-discipline rules, China settlement business rules and trading rules of the stock exchange.

Chapter II Entrusted Agency

Article 3 Party B accepts the entrustment of Party A and provides the following services:

(1) Accept and execute the legal and effective entrustment instruction issued by Party A in the manner agreed in this Agreement;

(2) Clearing and settlement of funds and securities.

(3) Securities purchased by Party A or obtained by other means;

(4) The securities registration and settlement institution provides nominal holder services such as dividends to Party A through Party B;

(5) Accepting Party A's inquiries about its entrustment, transactions, assets and changes in its accounts, and providing corresponding lists at the request of Party A;

(VI) Other activities that Party A can entrust to Party B as stipulated in relevant laws, administrative regulations, departmental rules, normative documents and business rules, and other entrusted matters agreed by both parties according to law;

Article 4 Before participating in the trading of Hong Kong Stock Connect, Party A shall open an account for securities trading, clearing and settlement, interest calculation, etc. Comply with laws, regulations and relevant business rules. Party B shall open a securities account on behalf of China Settlement, and abide by the relevant provisions of China Settlement.

Party A can use its opened Shanghai A-share securities account (Shanghai RMB common stock securities account) to conduct stock trading in Hong Kong.

Article 5 Where Party A newly handles or changes the designated transaction, it can only conduct the Hong Kong Stock Connect transaction from the next trading day.

Article 6 Where Party A has any trading behavior, declaration, failure to close the transaction or other circumstances stipulated by the Shanghai Stock Exchange and China Settlement Business Rules, Party A shall not cancel the designated transaction.

Article 7 Party A has known and admitted that there are differences in refresh frequency and gear display. Between the free first-class quotation obtained by Party A and the quotation obtained by payment; Party A shall only use the above market information as the end user, and shall not provide it to any institution or individual, nor shall it be used to develop indexes or other products without the consent of The Stock Exchange of Hong Kong Limited (hereinafter referred to as the "Stock Exchange"); Stock exchanges, their holding companies, subsidiaries of holding companies and other market information providers will try their best to ensure the accuracy and reliability of the above market information, but they cannot guarantee its absolute accuracy and reliability, and will not be responsible for any loss or damage caused by inaccurate or omitted information.

Article 8 The way for Party A to issue entrustment instructions to Party B shall be agreed by both parties. The ways in which Party A sends entrustment instructions to Party B include counter entrustment, self-help entrustment and other legal entrustment methods recognized by Party B. Self-help entrustment includes online entrustment, telephone entrustment and hot key entrustment. The specific entrustment method shall be subject to the actual opening.

Article 9 The contents and methods of instructions such as entrustment and revocation of entrustment issued by Party A to Party B on the trading of Hong Kong Stock Connect shall comply with the relevant provisions of the stock exchange.

Article 10 When Party B accepts Party A's entrustment instruction, if Party B fails to execute Party A's new entrustment instruction because Party A's original entrustment instruction has not been revoked, Party A shall bear the consequences, risks and losses caused thereby.

Article 11 Party B shall provide services such as inquiry and printing of transaction details to Party A through the counter system.

Article 12 Party A understands and recognizes that China Clearing has completed the settlement of securities and funds traded on Hong Kong Stock Connect with Hong Kong Clearing Company in accordance with the business rules of Hong Kong Securities Clearing Company Limited (hereinafter referred to as HKSCC). The domestic settlement of Hong Kong Stock Connect transactions is organized and completed by China Clearing in accordance with relevant business rules.

Article 13 The securities obtained by Party A through Hong Kong Stock Connect shall be deposited and settled in Hong Kong in the name of China settlement, and registered in the register of shareholders of listed companies on the Stock Exchange in the name of Hong Kong Securities Clearing (Agency) Co., Ltd. ... Unless otherwise stipulated by the China Securities Regulatory Commission, Party A shall not require the deposit or withdrawal of paper stocks.

Chapter III Liability and Exemption Clauses of Both Parties

Article 14 If Party A knows and recognizes that Hong Kong Settlement implements cash settlement for China Settlement due to the inability to deliver securities, China Settlement shall conduct corresponding business treatment with reference to the principle of Hong Kong Settlement; If special resettlement arrangements are made temporarily to settle in Hong Kong due to typhoons, black storms and other reasons, the settlement in China shall be handled according to the principle of settling in Hong Kong. Party A agrees that Party B shall handle the business in accordance with the business rules of China settlement. If Hong Kong Settlement fails to fully fulfill its settlement obligations to China Settlement due to bankruptcy, China Settlement will assist in recourse to Hong Kong Settlement, but will not bear the relevant losses arising therefrom.

Article 15 Party A agrees that for Party A's Hong Kong Stock Connect transaction, Party B or its securities company will settle with China in its own name, and Party B or its securities company will settle the Hong Kong Stock Connect transaction with Party A, but Party A will not settle with China. Disputes between Party A and Party B, and between Party A and the securities company to which Party B belongs, shall not affect the settlement, delivery and breach of contract that China Clearing is carrying out or has carried out according to the business rules.

Article 16 Party B or its affiliated securities company shall collect the securities and funds payable by Party A before centralized settlement on the settlement date. Party B or the securities company to which it belongs shall deliver securities and receivables to Party A who normally performs settlement obligations.

Article 17 Party A knows and recognizes that the time when the receivables from the Hong Kong Stock Connect transaction can be used for buying transactions in the mainland securities market should not be earlier than the corresponding trading day of the receivables related to the Hong Kong Stock Connect transaction, provided that there is no overdraft in the customer's capital account.

Article 18 Party A knows and recognizes that during the settlement and delivery process, Party B or its securities company entrusts China to settle the securities transfer between Party A and Party B or its securities company.

Article 19 If Party B or its securities company defaults in settlement in China due to the default of Party A's fund settlement, Party B or its securities company has the right to designate the securities receivable from Party A equivalent to the amount of settlement default as temporarily non-settlement securities, which will be settled by China and disposed of according to its business rules. The risks, losses and responsibilities arising therefrom shall be borne by Party A. ..

Article 20 If Party A defaults in securities delivery, Party B and its securities companies have the right to temporarily withhold the funds of Party A equivalent to the amount of securities delivery default. ..

Article 21 Under any of the following circumstances, Party A has the right to claim rights from Party B, and Party B shall bear corresponding responsibilities and compensate for losses:

(1) Party B or the securities company to which Party B belongs has not completed centralized settlement with China settlement, resulting in Party A's temporary inability to deliver or dispose of receivables or securities;

(2) Party B or the securities company to which Party B belongs defaults on the delivery of Party A, resulting in Party A being unable to obtain securities or receivables;

(3) The securities transfer instruction issued by Party B or its securities company about Party A is incorrect;

(4) Party A's interests are damaged because Party B or the securities company to which Party B belongs fails to comply with relevant business rules.

Article 22 Party A knows and recognizes that China Clearing can submit the securities sold by Party A daily to Hong Kong for settlement as settlement collateral according to the relevant business rules of Hong Kong settlement, so as to reduce the capital cost of the whole market.

Article 23 When Party A entrusts Party B to buy or sell securities, it shall ensure that there are enough funds or securities available in its account, and agree to reserve part of the funds in the account according to the standards specified by Party B or freeze the trading funds at the time of entrustment declaration according to the proportion specified by Party B, so as to ensure that it will bear the corresponding clearing and settlement responsibilities according to the trading results, otherwise Party B has the right to refuse the entrustment instruction of Party A. ..

Article 24 If Party A's funds or securities are insufficient, which leads to Party A's successful purchase or sale due to abnormal reasons, Party A shall bear the responsibility of returning overdraft funds or short selling securities, and Party B may dispose of Party A's funds and securities, including but not limited to restricting withdrawal and trading, lien, deduction and compulsory liquidation. All losses and legal consequences caused by this shall be borne by Party A, and Party B has the right to recover the losses caused by this from Party A. ..

Article 25 Where Party A entrusts Party B to buy or sell securities, it shall pay transaction fees, trading system usage fees and other fees in accordance with the market charging standards of the stock exchange, and pay stamp duty and other taxes in accordance with relevant regulations of Hong Kong.

Article 26 Party A shall pay Party B the securities portfolio fees it should bear during the unspecified trading period.

Article 27 Party A knows and recognizes that Shanghai Stock Exchange and China Clearing will not be liable for losses caused by formulating and modifying business rules and performing self-regulatory duties according to business rules; Shanghai Stock Exchange and its securities trading service companies shall not be liable for the losses caused by abnormal transactions or relevant measures taken by Shanghai Stock Exchange and its securities trading service companies. Party A shall not claim compensation or other responsibilities from SSE, SSE Securities Service Company or China Settlement for the above reasons.

What Party A needs to pay special attention to is that China Clearing does not provide services such as subscription of new shares, over-allotment and over-allotment, so Party A cannot enjoy the above services.

Chapter IV Settlement of Disputes

Article 28 Any matters or disputes involving the inheritance or ownership of Party A's property shall be handled by Party B according to the relevant business rules issued by China Clearing, or according to the notarized documents issued by the notary office or the effective judgment documents issued by the judicial organs.

Article 29 Disputes arising from the execution of this Agreement may be settled through negotiation by both parties, or they may apply to the Securities Dispute Mediation Center of China Securities Association for mediation. If negotiation or mediation fails, both parties agree to settle it in the following way: (If Party A does not make a choice, the second way will be the default).

1. Submit to the Arbitration Commission for arbitration;

2. Bring a lawsuit to the court where Party B is located.

Chapter V Entry into Force, Amendment and Termination of the Agreement

Article 30 This Agreement may be signed in electronic form or in paper form.

If this Agreement is signed by electronic means, Party A shall sign it by electronic signature; This agreement is signed in paper form, and if Party A is an individual, the entrustment agreement is signed by Party A himself; If Party A is an organization, the entrustment agreement shall be signed by the legal representative or authorized representative and stamped with the official seal. Where the securities investment product manager implements investment management, he shall sign an entrustment agreement as Party A. ..

This Agreement shall come into force on the date when the following conditions are met:

(1) If this agreement is signed in paper form, both parties have signed and sealed it; If this agreement is signed by electronic means, Party A will sign this agreement by electronic signature, and the electronic contract has the same legal effect as the paper contract.

(2) Party A and Party B have signed the Agreement on Securities Brokerage and Value-added Services, and the Agreement on Securities Brokerage and Value-added Services has come into effect.

Chapter VI Supplementary Provisions

Article 31 Where there is no agreement in this Agreement, it shall be implemented with reference to the Customer Account Opening Agreement, the Securities Brokerage Business and Value-added Services Agreement, the Designated Trading Agreement, the Online Entrustment Agreement and the Guidelines for the Behavior of Individual Investors of Shanghai Stock Exchange.

Article 32 The interpretation of terms and expressions involved in this Agreement shall be governed by laws and regulations; Where laws and regulations, China Securities Regulatory Commission, stock exchange, China Clearing, China Securities Association and other normative documents, business rules and industry practices are not explained, they shall apply.

Article 33 Before signing this agreement, Party A has carefully read this agreement and all its annexes, and has no objection to the written expression of this agreement and all its annexes.

Party A (personal signature/agent seal): Party B (signature):

Signature (signature) entrusted by Party B's agent:

(Signature of legal representative or authorized representative of the institution):

Date of signature: year month date of signature: year month day.