A.Exchange Introduction

Shanghai Stamp,Coin and Card Exchange Corp. Ltd. (SHSCCE), which is a State-controlled hybrid Corp.,was approved to establish by the Shanghai Municipal People's Government in January, 2014.SHSCCE locates in the Shanghai Post Building, standing bySuZhou River and north of the Bund with beautiful scenery. Built in 1924, the Shanghai Post Building is the national key culturalrelic protection unit. The exchange enjoys the fame as “the best hall in the Far East”.

As the first authoritative state-backed Stamp,Coin and Card electronic trading service platform, the Exchange combines the traditional physical market and the modern network transactions, as well asassembling the logistics, information flow and cash flow of the industrial chain. We are committed to stabilize, prosper and lead the Stamp,Coin and Card market, and to make the Exchange an ideal of the integration of culture, finance and technology.

The establishment of SHSCCEconform toboth the guideline proposed at the Third Plenary Session of the 18th CPC Central Committee as “actively developing the mixed ownership economy which contains cross-shareholdings and integration of government capital, collectively owned capital, and private capital”, and the development idea of Shanghai’s classifying cultural creativity industry as the key pillar industry in the 12th five-year plan.In the near future, the exchange will be an important carrier and window for the government to direct and regularize the sustainable development of Stamp,Coin and Card industry.

Shareholder Background

Shanghai Post Industrial Development Corporation (affiliated to China Post Group Corporation)

China Post is a large state-owned enterprise with hundred-year history, responsible for the social public utilities and communication infrastructure in our country, whose main business involves mail services, express delivery services and financial services. The network of China Post not only connects rural and urban areas, but also covers the country and the whole world.

Beijing Xinhua Financial Information Exchange Center Co. Ltd. (an institution solely-funded by CENS, which is affiliated to the Xinhua News Agency)

Known as the most authoritative institution in collecting and releasing newsinformation, Xinhua News Agency owns various media, including news agencies, newspapers and magazines, television and cellphone broadcast, online sites, etc., and is ranked as the three biggestnews agencies in the world together with A.P. and Reuters.

Shanghai Zhen Ying Investment Co. Ltd. (a wholly-owned subsidiary of Shanghai Mingjia enterprise (Group) Co. Ltd.)

The main business of Zhen Ying Investment Co. involves industrial investment, investment management, investment consultation, financial counsel, etc. The company raises the private equity funds, joints high quality capital, captures advantage industry, andcooperates with Shanghai Equity Exchange deeply and widely.

E. Trading Pattern

The Exchange has the advantages of unique location and market conditions in Shanghai, as well as the physical network and eminent resources of information, logistics, identification, storage and other aspects from the shareholders. Relying on these superiorities, the Exchange will provide various trading patterns in order to meet the market demand of different groups, expand market participation, and impulse the development and prosperity of the Stamp,Coin and Card market.

Listing trading:

Listing trading
Mode E-commerce mode
Characteristics

● Diversified pattern & flexible mode

● Electronictransaction & transparent price

● Graded goods & guaranteed quality

● Traceable trading process & safe delivery and settlement

Function Physical trading and circulating & supply chain financing
Trading time 9:00—16:00

Bidding trading:

Bidding trading
Mode Artwork auction mode
Characteristics

● Personalized trading mode & efficient transaction

● Graded goods & guaranteed quality

● Online efficient payment

● TraceableTraceable & user-friendly trading process

Function Physical trading and circulating & value discovered
Trading time 9:00—16:00

Custody trading:

Custody trading
Mode Equity trading mode
Characteristics

● Flexibility: one-way trading & goods transferrable at the same day

● Convenience: Delivery executable at the same day

● Guarantee: seriously-graded goods

● Value discovery: full participation in the market & efficient discovery of value

● Transfer of accounts: safe and guaranteed

● Financing: convenient access for qualified clientsto get banks’ loan

Trading objective For details, refer to The catalogue for listed ordering-mode products.
Trading time 9:00—11:30,13:00-16:00

Ordering trading:

Custody trading
Mode Commodity trading mode
Characteristics

● Flexibility: two-way trading & goodstransferrable and callable at the same day

● Convenience: Goods can be picked up either at the trading day or later.

● Guarantee: seriously-graded commodities

● Value discovery: full participation in the market & efficient discovery of value

● Transfer of accounts: safe and guaranteed

● Finance: convenient access for qualified dealers to get banks’ loan

Trading objective For details, refer toThe catalogue for listed ordering-mode products.
Trading time 9:00—11:30,13:00-15:30

Account-opening procedure

Clients are enabled to open accounts in our Exchange either online or offline: online process can be completed on the internet, and offline process requires clients to take related materials to the authorized service agencies.

Clients can choose whether to go to authorized agencies with good reputation and services, or come to the Exchange to open accounts. Those who choose to be unattached to authorized service agencies will be classified as direct clients.

  1. 1. Individual clients should bring personal ID card and the bank card; Company clients should bring:

1) Original copy of business license or stamped hard copy

2) Original enterprise code certificate or stamped hardcopy

3) Valid ID card of corporate representative

Clients will fill out the application for opening accounts with the assistance of the service agency clerks, and signing the agreement for entering the market, which includes the risk disclosure statement.

  1. 2. Information in the application for opening accounts and related certificates will be uploaded to the system by service agency clerks, waiting for the rechecking of the Exchange.
  2. 3. After rechecking clients’ materials, the Exchange will allocate accounts to clients who have passed the check. The service agency will inform the clients to get accounts and assist clients to complete the attachment to banks.

(The exchange will inform the service agency to ask the client for supplementary materials if he/she fail to pass the check.)

  1. 4. The contraction of financial transfer with banks should be subordinated by specific rules of the banks. For details, refer tothe operation guide for financial transfer contraction with the bank on the official website of the Exchange.
  2. 5. After the account is successfully opened, the trading system will activate the account automatically, so clients can deposit money and start trading.