Shanghai Stock Exchange promulgated its Detailed Rules for the Implementation of Margin Financing and Securities Lending Transactions on Trial Basis on 21 August 2006, which became effective on the same day.
These rules apply to the conduct of margin financing and securities lending transactions on the Exchange.

The purpose of these Rules is, according to its preamble, to regulate the acts of margin financing and securities lending transactions, maintain the order of the securities market and protect the lawful rights and interests of investors.  These Rules, but if not provided for herein, the Trading Rules of Shanghai Stock Exchange and other relevant provisions of the Exchange shall apply.

According to these Rules, a member of the Exchange that participates in the margin financing and securities lending transactions on the Exchange should open a special securities account for securities lending, a covered securities account of client credit transactions, a securities settlement account for credit transactions, and a fund settlement account for credit transactions separately in its own name in accordance with the relevant provisions, which should be submitted to the Exchange for recordal within 3 trading days after opening such accounts. Such member that accepts the entrustment for margin financing and securities lending transactions from the client must make an application according to the format specified by the Exchange, the instructions of which application shall include the contents such as the number of the credit securities account of the client, the code of the seat, the code of the subject matter securities, the trading direction, the price, the quantity and the mark of margin financing and securities lending.

These rules specify the subject matter securities for purchase by margin financing or sale by securities lending.

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