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Article 1

What are A shares, B shares, H shares, N shares, S shares?

The stocks of listed companies in my country include A shares, B shares, H shares, N shares and S shares. This distinction is mainly based on the listing location of the stock and the investors they face.

The official name of A-shares is RMB ordinary stock. It is issued by domestic companies and is for domestic institutions, organizations or individuals (excluding Taiwan, Hong Kong and Macao investors) to subscribe and trade in RMB. In 1990, there were only 10 A-share stocks in my country. By the end of 1997, A-share stocks increased to 720. The total A-share stock capital was 164.6 billion shares, with a total market value of RMB 1752.9 billion, and the ratio to GDP was 22.7%. In 1997, A-share annual trading volume was 447.1 billion shares, and the annual transaction amount was 302.95 billion yuan. After several years of rapid development, my country's A-share stock market has begun to take shape.

The official name of B shares is RMB special stock. It is marked with the face value in RMB, subscribed and traded in foreign currencies, and traded on domestic (SH, Shenzhen) stock exchanges. Its investors are limited to: foreign natural persons, legal persons and other organizations, natural persons, legal persons and other organizations in Hong Kong, Macao, Taiwan, and Chinese citizens who settle abroad. Other investors stipulated by the China Securities Regulatory Commission. At this stage, the investors of Japanese stocks are mainly institutional investors in the above categories. The registered place and listing place of B shares are both domestic. However, investors are overseas or in Hong Kong, Macao and Taiwan.

Since the first B-share??SH electric vacuum B-share issuance at the end of 1991, after six years of development, China's B-share market has developed from a local market to a homosexual market managed by the China Securities Regulatory Commission. By the end of 1997, there were 101 B-share stocks in my country, with a total share capital of 12.5 billion shares and a total market value of 37.5 billion yuan. The market size of the three shares is much smaller than that of the A-share market. In recent years, my country has also made some useful explorations in B-share derivative products and other aspects. For example, in 1995, Shenzhen Nanbo Company successfully issued B-share convertible bonds, Shekou China Merchants Port carried out a second pilot for listing in Singapore, and four companies in Shanghai and Shenzhen also conducted pilot projects to convert B-shares into first-level ADRs in the US counter-industry market.

H shares are foreign-invested stocks registered in the mainland and listed in Hong Kong. Hong Kong's English is HOngKOng, and the first word is taken. Foreign-invested stocks listed in Hong Kong are called H shares. And so on, the first English letter in New York is N, and the first English letter in Singapore is S New York and Singapore are called N shares and S shares respectively.

N shares refer to those foreign stocks registered in mainland China and listed in New York (NewYork). In the Chinese stock market, when the N character appears in front of the stock name, it means that the stock is a newly listed stock that day. The letter N is the abbreviation of the English New (New). When seeing a stock with the N character head, investors should not only know that it is a new stock, but also realize that the stock price of this stock is not restricted by the rise and fall in the market on the same day. The increase can be higher than 10%, and the decline can also be deeper than 10%. This makes it easier to control risks and seize investment opportunities. For example, N Beihua, N Construction Bank, N Petroleum, etc.

Since the issuance of Qingdao Beer H shares in Hong Kong in 1993, our website has selected 4 batches of 77 overseas listed pre-selected companies. These corporate departments are in a leading position in various industries to a certain extent reflect the overall development level and growth potential of the factory's economy. By the end of 1997, 42 overseas listed pre-selected companies have been reorganized and listed overseas, including SH Petrochemical, Zhenhai Chemical, Qingling Automobile, BJ Datang Electric, China Southern Airlines, etc. Among them, 31 are listed in Hong Kong, 6 are listed in Hong Kong and New York at the same time, 2 are listed in Hong Kong and London at the same time, 2 are listed in K City (N shares), and 1 is listed in Singapore at the same time. 42 overseas listed companies have raised a total of US$9.56 billion in foreign capital.

Article 2

What is a designated transaction?

The so-called designated transaction refers to the only trading point in which an investor signs an agreement with a securities operating institution and designates the institution as the only trading point for buying and selling securities by itself. There are several major benefits for designated transactions:

(1) It helps to prevent investors from being stolen and sold;

(2) Automatically receive dividends, and the securities trading system directly credits cash dividend funds to the investor's account;

(3) You can receive reconciliation services provided by securities operating institutions monthly and quarterly.

Currently, the Shanghai Stock Exchange implements a designated trading system, making the investment of Shanghai Stock Exchange investors safer and more convenient than in the past.

Article 3

What is ST, PT stock?

"T" stocks include ST stocks and PT stocks.

On April 22, 1998, the Shanghai and Shenzhen Stock Exchanges announced that it would conduct special handling of stock transactions of listed companies with abnormal financial situation and other financial situations (specialtreatment in English, abbreviated as "ST"). The abnormality mainly refers to two situations: one is that the net profit of the listed company in both audited accounting years is negative, and the other is that the audited net assets per share of the listed company in the most recent accounting year are lower than the stock face value. During the period when the stock transactions of listed companies are subject to special treatment, their stock transactions should follow the following rules: (1) The daily price fluctuation limit of stock quotations is 5%; (2) The stock name is changed to the original stock name and added "ST" before the original stock name, such as "ST Steel Pipe"; (3) The interim report of listed companies must be audited.

PT stocks are stock varieties generated based on special transfer services for stocks that have been suspended from listing and circulation (PT is the abbreviation of ParticularTransfer in English). According to the relevant provisions of the Company Law and the Securities Law, if listed companies suffer losses for three consecutive years, their stocks will be suspended from listing. From July 9, 1999, the Shanghai and Shenzhen Stock Exchanges have implemented "special transfer services" for such stocks suspended from listing. The trading prices and bidding methods of PT stocks are different from those of normal trading: (1) The trading hours are different. PT stocks are only conducted within the opening time of each Friday, and only one trading day can be bought and sold in a week. (2) The increase and fall limits are different. According to the latest

It is stipulated that PT stocks have only a 5% increase limit, no decline limit, and the risk increases accordingly. (3) The matching method is different. Normal stock trading is to conduct call bidding between 9:15 and 9:25 every trading day. For declarations that have not completed call bidding, queue up for transactions after 9:30. PT stocks are the exchange that has closed at 15:00 on Friday and matched all valid declarations on the day in a call bidding manner, generating the only transaction price. All entrusted declarations that meet the conditions are traded at this price. (4) As a special transfer service, the stocks they trade are not listed and traded in the true sense, so the stocks are not included in the index calculation, and the transfer information can only be seen in the closing price of the day.

Chapter 4

What does Viebi mean?

The quota ratio is a technical indicator for measuring the strength of selling orders on the market for a period of time. Its calculation formula is: quota ratio = (number of buyers - number of sell orders) / (number of buyers + number of sell orders on the market) × 100%. It can be seen from the formula that the value of " quota ratio" ranges from -100% to +100%. If the " quota ratio" is a positive value, it means that the buying orders on the market is stronger, and the larger the value, the stronger the buying orders. On the contrary, if the " quota ratio" is a negative value, it means that the market is weak.

The "number of purchase orders" in the above formula refers to the total number of entrusted purchases in three levels of real-time downwards, and the "number of sale orders" refers to the total number of entrusted purchase lots in three levels of real-time upwards. For example, the highest instant purchase order quotation and entrustment volume of a certain stock is 15.00 yuan, 130 lots, and the two lower levels are 14.99 yuan, 150 lots, 14.98 yuan, and 205 lots respectively; the minimum selling order quotation and entrustment volume are 15.01 yuan, 270 lots, and the two upwards are 15.02 yuan, 475 lots, 15.03 yuan, and 655 lots respectively, then the real-time commission ratio at this time is -48.54%. Obviously, the market selling pressure is very large at this time.

Through the "commended comparison" indicator, investors can promptly understand the strength of the instant trading order on the market.

The difference between the current buying volume of a certain product minus the sum of the selling volume. It reflects the power comparison between the buyer and the seller. The positive number is the stronger the buyer, and the negative number is the heavier selling pressure. The difference between the buyer = the number of buyer - the number of seller

Chapter 5

The difference between Shenzhen Composite Index and Shenzhen Composite Index

The stock price index is compiled using the index method in statistics, reflecting the overall price of the stock market or the movement and trend of a certain type of stock price. According to the range covered by the price trend reflected by the stock price index, the stock price index can be divided into a comprehensive index that reflects the overall market trend and a classified index that reflects the price trend of a certain industry or a certain type of stock.

The Shenzhen Stock Exchange Comprehensive Index is compiled by the Shenzhen Stock Exchange. It takes all stocks listed on the Shenzhen Stock Exchange as the calculation range and the weighted comprehensive stock price index with issuance volume as the weight. The index is based on April 3, 1991 and the base day index is set at 100 points. The Shenzhen Stock Exchange Comprehensive Index comprehensively reflects the stock price trends of all A-share and B-share listed stocks on the Shenzhen Stock Exchange. In addition, the Shenzhen Stock Exchange A-share Index and Shenzhen Stock Exchange B-share Index are compiled, which reflect the stock price trends of all A-share and all B-shares respectively. The Shenzhen Stock Exchange A-share Index is based on April 3, 1991 and will be released on October 4, 1992, and the base day index is set at 100 points. The Shenzhen Stock Exchange B-share Index is based on February 28, 1992 and will be released on October 6, 1992, and the base day index is set at 100 points.

The Shenzhen Stock Exchange Constituent Stock Index is a weighted stock index calculated from all listed stocks, and the circulating shares are weighted, which comprehensively reflects the stock price trends of A and B shares listed on the Shenzhen Stock Exchange. The index takes July 20, 1994 as the base day, and the base day index is set at 1,000 points. The constituent stock index began trial release on January 23, 1995.

It was officially launched on May 5, 1995. The A-shares of 40 listed companies are used to calculate the component A-share index and industry classification index. The B-shares of 40 listed companies are used to calculate the component B-share index. The Shenzhen Component Stock Index also compiles classified indexes for A-shares, including industrial classification index, commercial classification index, financial classification index, real estate classification index, utility classification index, and comprehensive enterprise classification index.

Number. The factors considered when selecting samples of the Shenzhen Component Stock Index are: 1. The length of the listing trading date; 2. The listing scale is calculated based on the average total market value of each company over a period of time and the average market value of circulating shares; 3. The degree of trading activity is calculated based on the total transaction amount of each company over a period of time. After determining the preliminary list, 40 listed companies are selected as constituent stocks based on the following factors: 1. The average price-to-earnings ratio of the company’s stocks over a period of time; 2. The company’s industry representativeness and the development prospects of the industry to which it belongs; 3. The company’s financial status, profit records, development prospects and management quality in recent years; 4. The company’s region and sector representativeness, etc. In order to ensure the representativeness of the index, the constituent stocks must be replaced according to the changes in the listed company. The Shenzhen Stock Exchange is scheduled to inspect the representativeness of the constituent stocks in January, May and September each year to discuss whether it needs to be replaced.

Chapter 6

The difference between open-end funds and closed-end funds

According to whether the fund can be redeemed, securities investment funds can be divided into open-end funds and closed-end funds. Open-end funds refer to investment funds whose fund size is not fixed, but can be issued new shares or redeemed by investors at any time according to market supply and demand. Closed-end funds are relative to open-end funds. They refer to investment funds whose fund size has been determined before issuance and whose fund size is fixed after the issuance and within the prescribed period.

The main differences between open-end funds and closed-end funds are as follows:

(1) The variability of fund size is different. Closed-end funds have clear expiration periods, and the fund units issued within this period cannot be redeemed. Although such funds can be expanded in special circumstances, the expansion should have strict statutory conditions. Therefore, under normal circumstances, the fund size is fixed. The fund units issued by open-end funds are redeemable, and investors can also arbitrarily subscribe to fund units during the expiration period of the fund, resulting in the continuous changes in the total amount of funds of the fund every day. In other words, it is always in a "open" state. This is the fundamental difference between closed-end funds and open-end funds.

(2) The buying and selling methods of fund units are different. When a closed-end fund is initiated and established, investors can subscribe to the fund management company or sales institution; when a closed-end fund is listed and traded, investors can entrust securities companies to buy and sell at the market price on the stock exchange. When investors invest in open-end funds, they can subscribe or redeem them from the fund management company or sales institution at any time.

(3) The trading prices of fund units are formed in different ways. Because closed-end funds are listed on exchanges, their trading prices are greatly affected by the market supply and demand relationship. When the market supply is less than demand, the trading price of the fund unit may be higher than the net asset value of each fund unit, and the fund assets owned by investors will increase; when the market supply is greater than demand, the fund price may be lower than the net asset value of each fund unit. The trading price of the open-end fund is calculated based on the net asset value of the fund unit, which can directly reflect the level of the net asset value of the fund unit. In terms of fund trading fees, investors, when buying and selling closed-end funds, they also have to pay a certain proportion of securities transaction tax and handling fees outside the price when buying and selling closed-end funds, as they buy and sell listed stocks; and the relevant fees (such as the first subscription fee and redemption fee) that investors of open-end funds need to pay is included in the fund price. Generally speaking, the fees for buying and selling closed-end funds are higher than those for open-end funds.

(4) The investment strategies of funds are different. Since closed-end funds cannot be redeemed at any time, all the funds raised can be used for investment, so that the fund management company can formulate long-term investment strategies and achieve long-term operating performance. Open-end funds must retain a part of the cash so that investors can redeem it at any time, and cannot be used for long-term investments. They generally invest in assets with strong monetization capabilities.

Chapter 7

What is call auction? What are the steps for call auction?

In each trading day, the bidding of any securities is divided into two parts: call bidding and continuous bidding. Call bidding refers to the centralized processing of all valid commissions. The call bidding time of Shenzhen and Shanghai stocks is from 9:15 to 9:25 am on the trading day. Call bidding is completed in four steps:

The first step: determine the valid entrustment. If there is a limit on the increase or decrease, the effective entrustment is determined as follows: calculate the maximum limit and minimum limit of the day based on the closing price of the securities on the previous trading day and the determined increase or decrease range. The effective price range is all prices between the maximum limit and minimum limit of the securities. Entrustments with limits exceeding this range are invalid entrustments, and the system automatically cancels the order.

Step 2: Select the transaction price. First, select the price within the valid price range that will generate the maximum transaction volume for all entrustments. If there are more than two such prices, select the transaction price according to the following rules:

(1) All purchase orders above the selected price and all sale orders below the selected price can be sold.

(2) The party who entrusts with the same price as the one who chooses must complete the transaction. If there are still multiple prices that meet the above conditions, select the price closest to yesterday's market price.

Step 3: Concentrately match all purchase orders in the order of high to low price limit. Those with the same price limit are arranged in the order of entry of the system; all sell orders are arranged in the order of entry of the order limit from low to high, and those with the same price limit are arranged in the order of entry of the system. The purchase orders ranked first and the sell orders are paired with the sale order in sequence, that is, the transactions are completed in sequence in the order of "price priority, time priority at the same price" until the transaction conditions are not met, that is, there is no purchase order with the limit price higher than or equal to the transaction price, or there is no selling order with the limit price lower than or equal to the transaction price. All transactions are sold at the same transaction price.

Step 4: Market Reveal

(1) If the transaction volume of the securities is zero, the transaction price will be revealed as the opening price, the latest transaction price, the highest price, the lowest price, and the transaction volume and the transaction amount will be revealed.

(2) In the remaining valid entrustment, the actual highest bid price is revealed as the call reveal price. If the highest bid price does not exist, the call reveal price is revealed as the empty price; the actual lowest bid price is revealed as the bet reveal price. If the lowest bid price does not exist, the bet reveal price is revealed as the bet reveal price. The order that cannot be traded in the call auction will automatically enter the continuous bidding.

Chapter 8

What situations are abnormal trading fluctuations that require temporary suspension?

According to the regulations of the Shanghai and Shenzhen Stock Exchanges, the following situations are abnormal trading fluctuations, and the transaction ownership temporarily suspends the stock until the relevant parties resume trading when the market opens in the afternoon of the day after the announcement is made by the relevant parties.

⒈The price of a certain stock has reached the increase limit or the decline limit for three consecutive trading days;

⒉ A certain stock has been included in "stock and fund public information" for five consecutive trading days;

⒊The amplitude of a stock price reached 15% for three consecutive trading days;

⒋ The daily trading volume of a certain stock has increased by 10 times for 5 consecutive trading days compared with the average daily trading volume last month;

⒌The exchange or other situations that the China Securities Regulatory Commission considers to be abnormal fluctuations. Special circumstances approved by the China Securities Regulatory Commission are not subject to this restriction. Funds are not subject to this restriction.

Chapter 9

Securities Dictionary

Opening: In stock exchange securities trading, the first trading that opens every day is the opening, which is divided into high opening, low opening and flat opening according to different opening prices.

Opening price: Opening refers to the first transaction of a certain securities on each business day on the stock exchange. The transaction price of the first transaction is the opening price of the day. According to the SH Stock Exchange, if there is no transaction within half an hour after the opening, the price of the previous day is the opening price of the day. Sometimes a securities have no transaction for several consecutive days, the stock exchange will provide guidance prices based on the price trend of the customer entrusted the securities trading, and prompt it to be used as the opening price after the transaction. The average price or average issue price of the securities listed on the first day is the opening price after the counter transfer on the day before the listing.

Close price: Close price refers to the transaction price of a certain securities before the end of a day trading activity on the stock exchange. If there is no transaction on the same day, the most recent transaction price is used as the closing price, because the closing price is the standard of the market on the day and the basis for the opening price of the next trading day, and the future securities market conditions can be predicted based on the market; therefore, when investors analyze the market, the closing price is generally used as the basis for calculating.

Transaction quantity: refers to the number of stocks sold on that day.

The highest price: refers to the various different prices of stock transactions on that day, which are the highest transaction prices.

Lowest price: refers to the lowest transaction price among different prices sold on the same day.

Rising: means that the opening price is much higher than the closing price of the previous day.

Opening low: means that the opening price is much lower than the closing price of the previous day.

Trading time: refers to investors not actively buying and selling, and adopting a wait-and-see attitude, so that the stock price changes on that day are very small. This situation is called trading time.

Consolidation: It means that after a sharp rise or fall, the stock price begins to fluctuate slightly and enters a stable change stage. This phenomenon is called consolidation, and consolidation is the preparation stage for the next major change.

Panjian: The stock price is rising slowly, which is called Panjian.

Floppy: The stock price is falling slowly, which is called floppy.

Gaps: refers to the stock price starting to jump sharply due to strong positive or negative news. Gaps usually appear before the start or end of a major stock price change.

Retracement: refers to the phenomenon of temporarily falling back due to excessive rise during the rise of the stock price.

Rebound: refers to the phenomenon that the stock price sometimes temporarily rebounds due to the rapid decline in the buyer's support. The rebound amplitude is smaller than the decline, and it resumes the downward trend after the rebound.

Number of transactions: refers to the number of times various stock transactions that day.

Transaction volume: refers to the total price of each stock transaction on that day.

Finally, the bid price is called: refers to the price the buyer wants to buy after the closing of the day.

The final bid is: it refers to the seller's asking price after the closing of the day.

Bulls: Those who are optimistic about the stock market in the future, buy stocks first, wait until the stock price rises to a certain price, and sell stocks to make a difference.

Short: refers to investors who have changed into stock prices that have risen to their highest point and will soon fall, or when the stock has begun to fall, it will continue to fall and sell at a high price.

Rises and falls: Compared with the daily closing price and the closing price of the previous day, we determine whether the stock price will rise or fall. Generally, the sign "+" and "-" are represented on the billboard above the trading table.

Price: refers to the unit of rising and lowering of the price. The price varies according to the market price of the stock per share. Take the SH Stock Exchange as an example: the price at the end of the market price of 100 yuan per share is 0.10 yuan; the price at the end of the market price of 100-200 yuan per share is 0.20 yuan; the price at the market price of 200-300 yuan per share is 0.30 yuan; the price at the market price of 300-400 yuan per share is 0.50 yuan; the price at the market price of 400 yuan per share is 1.00 yuan;
To be continued...