1. Question: What types of securities can the insolvency administrator inquire about?

Answer: The insolvency administrator can inquire about the same securities types as those of the debtor. In detail, the insolvency administrator can inquire about A shares, B shares, shares in companies listed at the National Equities Exchange and Quotations, Class A and B shares in companies traded through two systems and delisted companies, preferred stocks, bonds, exchange-traded funds, warrants, target Hong Kong stocks of Hong Kong Stock Connect and other securities in the securities account of the debtor. Moreover, the insolvency administrator can inquire about stock options and other derivatives contracts held by the debtor in the derivatives contract account.

2. Question: What securities information can the insolvency administrator inquire about?

Answer: The insolvency administrator can inquire about the same securities information as that of the debtor. In detail, the insolvency administrator can inquire about securities holding balance, securities holding change, securities freezing status, securities freezing change, designated trading/securities custody, designated trading/securities custody change, derivatives contract holding, change in derivatives contract holding, position of derivatives contract portfolio strategy, change in position of derivatives contract portfolio strategy and other information of the debtor.

3. Question: What channels can the insolvency administrator use to perform the securities inquiry?

Answer: The insolvency administrator can apply for inquiry to the nearby designated trading, designated settlement or securities depository institution of the debtor, and also can apply for inquiry to any business hall of our Company in Beijing, Shanghai and Shenzhen. If the debtor has registered an online user identity with our Company and completed the identity authentication, the insolvency administrator can perform the inquiry through the on-line business hall, WeChat business hall, China Settlement APP and other online channels of the Company after taking over the debtor's online user privilege.

4. Question: Should the insolvency administrator pay a fee to perform the securities inquiry?

Answer: No, our Company doesn't collect the service fees incurred by the investors to perform the securities inquiry transactions.

5. Question: What documents should the insolvency administrator prepare to inquire about the securities held by the debtor?

Answer: The insolvency administrator shall prepare the Securities Inquiry Application (which can be completed on the site), the written verdict of the people's court on acceptance of bankruptcy application, the decision of the people's court to appoint the insolvency administrator, the letter of authorization for the responsible person of the insolvency administrator, and the valid identity certificate of the handling person.

6. Question: How to release the pledge registration of the securities assets of the debtor?

Answer: Now, our Company provides two options to release the pledge registration of the securities assets of the debtor: First, the pledgee handles  the pledge release registration procedure on its own; Second, the judicial organ handles the pledge release registration procedure in the form of enforcement assistance.

7. Question: How to release the judicial freezing of the securities assets of the debtor?

Answer: When a competent authority asks our Company to help securities inquiry, freezing and deduction, the enforcement official shall submit relevant certificate and valid legal deed, pursuant to the Circular of the Supreme People's Court, the Supreme People's Procuratorate, the Ministry of Public Security and China Securities Regulatory Commission on Issues of Inquiring about, Freezing and Deducting Securities and Securities Trading Settlement Funds (Fa Fa [2008] No. 4). In practice, when the people's court can't conduct the transaction with our Company (including branches) with the notice of enforcement assistance for working reasons, it can consign the people's court in the domicile of our Company (including branches) to handle it. The people's court freezing the securities may release the said freezing before the waiting court continue to freeze the securities, or may directly deduct and transfer the securities while releasing the securities freezing.

8. Question: In what ways can the insolvency administrator dispose of the securities assets of the debtor?

Answer: The insolvency administrator can take four ways to dispose of the securities assets of the debtor: First, sell out the securities through exchange trading according to related provisions of the securities exchange; Second, judicial enforcement assistance, meaning that the judicial organ issues a notice of enforcement assistance and other legal deeds with equivalent effect, and the enforcement official can go to our Company to handle the securities ownership transfer; Third, negotiated transfer, meaning the transferor and the transferee go to our Company to handle the ownership transfer procedure after the transfer is reviewed by the securities exchange; Fourth, if the securities assets of the bankrupt enterprise are distributed in kind in the bankruptcy liquidation procedure, our Company will handle the ownership transfer as the scenario of "loss of legal person status" in the securities ownership transfer service for non-trading reason.

9. Question: How to perform the judicial enforcement assistance business under item 8 above?

Answer: When a competent authority asks the Company to help securities inquiry, freezing and deduction, the enforcement official shall submit relevant certificate and valid legal deed, pursuant to the Circular of the Supreme People's Court, the Supreme People’s Procuratorate, the Ministry of Public Security and China Securities Regulatory Commission on Issues of Inquiring about, Freezing and Deducting Securities and Securities Trading Settlement Funds (Fa Fa [2008] No. 4). Before going to handle the enterprise bankruptcy and reorganization business, the competent authority shall prepare the work permit and enforcement permit of the enforcement official, notice of enforcement assistance, verdict approving the reorganization plan and other necessary documents. Since the bankruptcy and reorganization business involves a lot of early preparatory work, the competent authority should contact our Company in advance to confirm business details.

10. Question: What application documents should the insolvency administrator to prepare to handle the negotiated transfer business under item 8 above?

Answer: The insolvency administrator shall prepare the Application for Registration of Non-trading Securities Ownership Transfer, the letter of confirmation of share transfer issued by the securities exchange, the original of the transfer agreement, the valid identity certificates of both parties to the transfer, the approval or filing document of related authority (applicable to the scenario that the securities ownership transfer registration shall be approved or filed), the announcement on the current share transfer disclosed by the person accountable for information disclosure (subject to the information disclosure requirements of the stock exchange) and the certificate of tax payment (applicable to the scenario that the proposed ownership transfer shares  involve the payment of personal income tax).
In case of the bankrupt enterprise, the valid identity certificate stated above means: the written verdict of the people's court on acceptance of bankruptcy application, the decision of the people's court to appoint the insolvency administrator, the certificate for the responsible person of the insolvency administrator, the duplicate of the valid identity certificate of the responsible person of the insolvency administrator, the letter of authorization for the responsible person of the insolvency administrator, and the valid identity certificate of the handling person.

11. Question: What application documents should the insolvency administrator to prepare to handle the business given the "loss of legal person status" as stated in item 8 above?

Answer: The insolvency administrator shall prepare the Application for Registration of Non-trading Securities Ownership Transfer, the verdict of the people's court declaring bankruptcy, the distribution plan for bankrupt properties recognized in the verdict of the people's court indicating the distribution and attribution of the securities assets in kind, the valid identity certificates of both parties to the transfer, the approval or filing document of related authority (applicable to the scenario that the securities ownership transfer registration shall be approved or filed), the announcement on the current share ownership transfer disclosed by the person accountable for information disclosure (subject to the information disclosure requirements of the stock exchange)and the certificate of tax payment (applicable to the scenario that the proposed ownership transfer shares involve the payment of personal income tax).

In case of the bankrupt enterprise, the valid identity certificate stated above means: the written verdict of the people's court on acceptance of bankruptcy application, the decision of the people's court to appoint the insolvency administrator, the certificate for the responsible person of the insolvency administrator, the valid identity certificate of the responsible person of the insolvency administrator, the letter of authorization for the responsible person of the insolvency administrator, and the valid identity certificate of the handling person.

12. Question: Should the insolvency administrator release the restriction before handling the ownership transfer of restricted securities?

Answer: No, restricted securities can be directly handled for ownership transfer.

13. Question: Can the insolvency administrator use its own seals when handling the securities business?

Answer: Yes, the insolvency administrator can use its own seals to handle relevant securities transactions.

14. Question: How should the insolvency administrator consult relevant securities business?

Answer: Our Company opens the 4008-058-058 inquiry hotline to the public. To communicate about concrete case, the insolvency administrator can directly contact the business team of our Company on the phone to get even clearer business instructions.