China Securities Depository and Clearing Co., Ltd. was established in accordance with the "Securities Law of the People's Republic of China" and the "Company Law of the People's Republic of China". The company's total capital is RMB 1.2 billion. The Shanghai and Shenzhen Stock Exchanges are the two shareholders of the company, each holding 50% of the shares. The company is headquartered in Beijing and has two branches in Shanghai and Shenzhen. The China Securities Regulatory Commission is the company’s regulatory authority.

1. Historical evolution of the company

On March 30, 2001, in accordance with the requirements of the Securities Law on the centralized and unified operation of securities registration and settlement, with the consent of the State Council, the China Securities Regulatory Commission approved , China Clearing was established. In September of the same year, CSDC Shanghai and Shenzhen branches were formally established. Since October 1, 2001, China Clearing has taken over all the registration and clearing business formerly affiliated to the Shanghai and Shenzhen Stock Exchanges, marking that the organizational structure of a national centralized and unified securities registration and clearing system has been basically formed.

II. The purpose of the company

The purpose of the company is to establish a company that meets the requirements of standardization, marketization and internationalization, has the characteristics of openness and expansion, and effectively prevents market risks and improves Market efficiency, a centralized and unified securities registration and settlement system that can better serve the future development of China's securities market.

3. Basic functions of the company

In accordance with the relevant provisions of the Securities Law and the Measures for the Administration of Securities Registration and Settlement, CSDC performs the following functions:

● Establishment and management of securities accounts and settlement accounts;

● Custody and transfer of securities;

● Registration of securities holders’ roster and rights registration;

● Clearing, settlement and related management of securities and funds;

● Distribution of securities rights and interests as entrusted by the issuer;

● Provide inquiries and information related to securities registration and settlement business in accordance with the law , consulting and training services;

● Other businesses approved by the China Securities Regulatory Commission.