The "change of office" as mentioned in this Article means the relocation, enlargement or reduction of the former office.

Article 18 The cancellation of a representative office shall, 20 working days ahead, be reported to the CSRC, and the formalities for deregistration at the administrative organ for industry and commerce shall be handled upon the pertinent confirmation document issued by the CSRC on approval of the cancellation. The deregistration certificate shall, within five working days, be submitted to the CSRC after a representative office is deregistered.

Article 19 The Stock Exchange shall be responsible for unsettled matters when its representative office is cancelled.

Chapter IV Supervision and Administration

Article 20 A representative office shall have an independent and fixed office of its own, employ a reasonable amount of staff members, of which, the proportion of domestic residents shall not be lower than 50 percent.

The foreign staff members of a representative office shall handle the formalities for residence under the related laws upon entry.

Article 21 Any chief representative may not concurrently hold a post in the headquarter or a regional headquarter, nor may he concurrently hold a post in any other commercial institution inside the territory of China.

A chief representative shall stay in the representative office to take charge of the daily routine. Where a chief representative goes abroad for 30 consecutive days, he shall file a report with the CSRC and designate a special person to carry out the duties on his behalf.

Where a chief representative concurrently holds a post in any other institution or goes abroad for more than 30 consecutive days without reporting, the CSRC may require the stock exchange to replace the chief representative.

Article 22 Any representative office and any of its staff members may not conduct any commercial activities or do so in a disguised form, it or he may not conclude an agreement or contract with any legal person or natural person that may bring about incomes to the representative office or the stock exchange.

Article 23 Any representative office and any of its staff members may not conduct publicity in any form, it or he may not hold any market promotion activity oriented to individuals in any form.

Article 24 Where a representative office and its staff members organize and hold a large-scale market promotion activity oriented to enterprises, they shall report a related scheme to the CSRC in advance, and if the CSRC does not present any objection within 10 working days, it can hold such promotion activity.

Article 25 Any representative office and any of its staff members may not hold any false market promotion activity in any form, and it or he may not conduct unfair competition in any form or seek interests for any other institution in any form.

Article 26 A representative office shall submit a work report of the previous year to the CSRC within two months upon conclusion of each year.

Article 27 A representative office shall file the information about Chinese companies whose stocks are listed and traded in its stock exchange in the previous year as well as the information about Chinese-funded members within two months upon conclusion of each year.

Article 28 A representative office shall file the annual report on its stock exchange for the previous year within four months upon conclusion of each accounting year of its stock exchange.

Article 29 Where a foreign stock exchange gives any major punishment to any Chinese company whose stocks are listed and traded in it or any Chinese-funded member thereof, the representative office shall timely render a notice to the CSRC, and submit a written report to the CSRC within 10 working days as of the date of punishment.

Article 30 If a foreign stock exchange is under any of the following circumstances, the representative office shall, within 10 days after the event occurs, file a written report with the CSRC:

(1) Its articles of association, registered capital or registered address alters;

(2) The stock exchange is split up, consolidated or implements any other major merger;

(3) Its board chairman (governor-general) or general manger changes;

(4) It is operating at a heavy loss or with serious financial difficulties;

(5) The competent supervisory authority of the country or region where the stock exchange is located takes major supervisory measures against the stock exchange; or

(6) Other events that severely affect the foreign stock exchange's business.

Article 31 The CSRC will implement regular or irregular on-site or off-site inspections of a representative office from, but not limited to, the aspects as follows:

(1) Whether the representative office conducts commercial activities or does so in a disguised form;

(2) Whether the representative office engages in publicity or holds any market promotion activity oriented to individuals;

(3) Whether the representative office organizes and holds any large-scale market promotion activity oriented to enterprises without reporting in advance;

(4) Whether the application materials filed by the representative office are truthful or accurate;

(5) Whether the representative office goes through complete formalities for any alteration thereof;

(6) Whether the representative office goes through complete formalities for employment or alteration of any of its staff members; or

(7) Other matters to be inspected by the CSRC.

Article 32 The CSRC may take such regulatory measure as ordering its chief representative or any other person in charge to make correction, arranging a supervisory interview and issuing a letter of warning where a representative office violates these Measures. In case of serious circumstances, the CSRC may take the Measure of prohibiting its chief representative or any other person in charge from entry into the securities market.

Chapter V Legal Liabilities

Article 33 Where a foreign stock exchange, without approval, illegally establishes a representative office or conduct activities in the name of any representative office or in any other form, the CSRC shall ban such representative office or activities under law. Where the foreign stock exchange violates the criminal law, it shall assume criminal liabilities.

Article 34 Where a representative office conducts commercial activities or does so in a disguised form, the CSRC shall give it a warning, confiscate its illegal gains, or even revoke the representative office.

Article 35 Where a representative office implements publicity or holds any market promotion activity oriented to individuals, the CSRC shall give it a warning, or even revoke it.

Article 36 Where a representative office organizes and holds a large-scale market promotion activity oriented to enterprises without reporting in advance, the CSRC shall impose upon it a warning or a fine, or even revoke it.

Article 37 Where a representative office implements false publicity or unfair competition, the CSRC shall give it a warning or a fine, or even revoke it.

Chapter VI Supplementary Rules

Article 38 The establishment of a representative office within the territory of China by a stock exchange of Hong Kong Special Administrative Region, Macao Special Administrative Region or Taiwan Area shall be implemented by reference to these Measures.

Article 39 The documents as required to be submitted by an applicant under these Measures shall be in Chinese. For the articles of association, main business rules or annual reports of a foreign stock exchange, Chinese abstracts thereof may be provided together with the original texts.

Article 40 These Measures shall enter into force as of July 1, 2007.