Regulations Governing the Conduct of Securities Trading Margin Purchase and Short Sale Operations by Securities Firms Article 15

In conducting securities margin purchase and short sale business, the total amount of margin purchases that a securities firm provides for any given type of securities may not exceed 10% of its net worth.In conducting securities margin purchase and short sale business and conducting securities borrowing and lending business, the combined total amount of short sales and loans that a securities firm provides of any given type of securities may not exceed 5% of its net worth.If a securities firm is concurrently operated by a financial institution, the net worth referred to in the preceding two paragraphs shall be calculated based on the specially allocated operations capital.