"Investor Protection-Rules, Risk Knowledge" XXIII.

-Investor Protection in the New Securities Law

Article 88When a securities company sells securities and provides services to investors, it shall fully understand the basic information, property status, financial asset status, investment knowledge and experience, professional ability and other relevant information of investors in accordance with regulations; truthfully explain the important content of securities and services, and fully Reveal investment risks; sell and provide securities and services that match the above-mentioned conditions of investors.

When purchasing securities or receiving services, investors shall provide the true information listed in the preceding paragraph in accordance with the express requirements of the securities company. If it refuses to provide or fails to provide information as required, the securities company shall inform it of the consequences and refuse to sell securities or provide services to it in accordance with the provisions.

If a securities company violates the provisions of the first paragraph and causes losses to investors, it shall bear the corresponding liability for compensation.

Article 89According to the property status, financial assets, investment knowledge and experience, professional ability and other factors, investors can be divided into ordinary investors and professional investors. The standards for professional investors shall be prescribed by the securities regulatory authority under the State Council.

In the event of a dispute between an ordinary investor and a securities company, the securities company shall prove that its actions comply with the laws, administrative regulations and the provisions of the securities regulatory authority under the State Council, and that there is no misleading or fraudulent situation. If the securities company cannot prove it, it shall bear the corresponding liability for compensation.

Article 90The board of directors of a listed company, independent directors, shareholders holding more than 1% voting shares, or investor protection institutions established in accordance with laws, administrative regulations or the provisions of the securities regulatory authority under the State Council (hereinafter referred to as investor protection institutions) may act as solicitors, On their own or entrust securities companies and securities service institutions, publicly request shareholders of listed companies to entrust them to attend the shareholders' meeting on their behalf, and exercise shareholders' rights such as proposal rights and voting rights.

Where the rights of shareholders are solicited in accordance with the provisions of the preceding paragraph, the solicitor shall disclose the solicitation documents, and the listed company shall cooperate.

Public solicitation of shareholders' rights in a paid or disguised form is prohibited.

If the public solicitation of shareholders' rights violates laws, administrative regulations or relevant provisions of the securities regulatory authority under the State Council, resulting in losses suffered by the listed company or its shareholders, it shall be liable for compensation in accordance with the law.

Article 91A listed company shall specify in its articles of association the specific arrangements and decision-making procedures for the distribution of cash dividends, and protect the shareholders' right to return on assets in accordance with the law.

If a listed company has a surplus after making up its losses and withdrawing its statutory provident fund, it shall distribute cash dividends in accordance with the provisions of the articles of association.

Article 92In the case of a public offering of corporate bonds, a bondholders' meeting shall be established, and the procedures for convening the bondholders' meeting, the rules of the meeting and other important matters shall be stated in the prospectus.

In the case of a public offering of corporate bonds, the issuer shall engage a bond trustee for the bondholders and enter into a bond trustee agreement. The trustee shall be the underwriting institution of this issue or other institutions recognized by the securities regulatory authority under the State Council, and the bondholders' meeting may decide to change the bond trustee. The bond trustee shall diligently and impartially perform his fiduciary duties and shall not harm the interests of bondholders.

If the bond issuer fails to pay the principal and interest of the bonds on time, the bond trustee may accept the entrustment of all or part of the bondholders to initiate and participate in civil proceedings or liquidation proceedings on behalf of the bondholders in its own name.

Article 93If the issuer causes losses to investors due to fraudulent issuance, false statements or other major illegal acts, the controlling shareholder, actual controller and relevant securities company of the issuer may entrust an investor protection agency to reach an agreement with the investors who have suffered losses on compensation matters and pay compensation in advance. After the first payment, it may be recovered from the issuer and other joint and several responsible persons in accordance with the law.

Article 94In the event of a dispute between an investor and an issuer, securities company, etc., both parties may apply to the investor protection agency for mediation. If an ordinary investor has a securities business dispute with a securities company and the ordinary investor makes a request for mediation, the securities company shall not refuse.

The investor protection agency may, in accordance with the law, support investors in bringing a lawsuit to the people's court for acts that harm the interests of investors.

The directors, supervisors and senior managers of the issuer violate the provisions of laws, administrative regulations or the articles of association when performing their duties, causing losses to the company, the controlling shareholders and actual controllers of the issuer infringe upon the legitimate rights and interests of the company and cause losses to the company, if the investor protection institution holds shares of the company, it may bring a lawsuit to the people's court in its own name for the interests of the company, the proportion of shareholding and the duration of shareholding are not subject to the provisions of the the People's Republic of China Companies Act.

Article 95When an investor files a civil compensation lawsuit for securities such as false statements, the subject matter of the lawsuit is the same type, and if one of the parties has a large number of people, a representative may be elected to conduct the lawsuit in accordance with the law.

In the case of a lawsuit brought in accordance with the provisions of the preceding paragraph, where there may be many other investors with the same claim, the people's court may issue a public notice stating the case of the claim and notify the investors to register with the people's court within a certain period of time. The judgments and rulings made by the people's court shall have effect on the investors participating in the registration.

The investor protection agency, entrusted by more than 50 investors, may participate in the litigation as a representative and register the rights holders confirmed by the securities registration and settlement agency with the people's court in accordance with the provisions of the preceding paragraph, except where the investors have expressly expressed their unwillingness to participate in the litigation.