Core Viewpoint - The article discusses the implementation of a new regulatory framework for algorithmic trading by the Shanghai and Shenzhen Stock Exchanges, which will require Northbound investors to report their algorithmic trading activities starting January 12, 2026 [1][5]. Group 1: Regulatory Framework - The new reporting guidelines for algorithmic trading are aimed at ensuring that both domestic and foreign investors adhere to the same reporting obligations, thereby enhancing the transparency of algorithmic trading activities in the Shanghai market [2][6]. - The guidelines were developed after public consultation and are designed to align with existing domestic reporting requirements while accommodating the differences between the mainland and Hong Kong markets [2][6]. Group 2: Reporting Requirements - The report will require Northbound investors to provide core information based on their unique identification code (BCAN code) [3]. - The reporting process involves Northbound investors reporting to their Hong Kong brokers, who will then relay the information to the Shanghai Stock Exchange [4]. Group 3: Information to be Reported - The report must include five main categories of information: 1. Basic information such as investor name and broker client code 2. Funding information including scale and source of funds 3. Trading information detailing trading strategies and execution methods 4. Trading software information including software name and version 5. Any other information required by the exchanges [6][7]. Group 4: Compliance and Enforcement - Investors are required to report any significant changes to the information provided, with a particular focus on high-frequency trading systems [7]. - The exchanges will conduct regular data checks to ensure consistency between reported trading strategies and actual trading behavior, with potential disciplinary actions for non-compliance [7].

Core Viewpoint - The Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) have both issued guidelines to include Northbound investors in the scope of algorithmic trading reporting, aligning with the principles of consistency between domestic and foreign investors, which aims to enhance regulatory oversight and maintain market order [1][3]. Group 1: SSE Guidelines - On July 11, 2025, SSE released the "Guidelines for Algorithmic Trading Reporting for Northbound Investors," which is a significant step in implementing relevant regulations and improving the management of algorithmic trading [1]. - The guidelines maintain consistency with domestic investor reporting requirements while adapting to the practical differences between the mainland and Hong Kong markets, allowing sufficient preparation time for the market [2]. - The reporting will be based on the Northbound Investor Identification Code (BCAN) and will require Northbound investors to report through Hong Kong brokers, with the Hong Kong Stock Exchange facilitating the submission to SSE [2]. - Non-compliance with reporting obligations may lead to regulatory actions or disciplinary measures facilitated by the Hong Kong Stock Exchange [2]. - The guidelines will take effect on January 12, 2026, with existing investors required to complete their reports within three months of implementation [2]. Group 2: SZSE Guidelines - On July 11, 2025, SZSE issued the "Guidelines for Algorithmic Trading Reporting for Northbound Investors," which similarly aligns with the principles of consistency between domestic and foreign investors [3]. - The guidelines were developed after public consultation, incorporating feedback from both domestic and foreign investors, and include adjustments to certain clauses to fit the Hong Kong market context [4]. - Reporting will also utilize the BCAN code, with the same reporting pathway as SSE, requiring Northbound investors to report through Hong Kong brokers [4]. - SZSE will also take regulatory actions against non-compliant entities, with the Hong Kong Stock Exchange assisting in enforcement [4]. - The implementation date is the same as SSE's, with a three-month compliance window for existing investors [4]. Group 3: Future Steps - Both exchanges plan to enhance cross-border regulatory cooperation with the Hong Kong Stock Exchange and will conduct training to ensure smooth implementation of the guidelines [5].

Core Viewpoint - The Shanghai and Shenzhen Stock Exchanges have released the "Guidelines for Programmatic Trading Reporting for Northbound Investors" which will be implemented on January 12, 2026, aiming to enhance the regulation of programmatic trading and ensure market fairness [1][4]. Group 1: Implementation and Regulation - The guidelines are a significant step in implementing the Securities Law and related regulations, aimed at consolidating the regulatory framework for programmatic trading [4]. - The guidelines align with existing reporting regulations while adapting to the realities of the Hong Kong market, allowing for necessary adjustments in reporting fields [6]. Group 2: Reporting Requirements - The guidelines specify the reporting content, timelines, and pathways for Northbound investors, with a focus on using the Northbound Investor Identification Code (BCAN) for reporting [8][9]. - Reports must be submitted by Northbound investors to Hong Kong brokers, who will then relay the information to the Shanghai and Shenzhen Stock Exchanges [10]. Group 3: Market Feedback and Training - Prior to the release, the exchanges solicited feedback from market participants, which was largely positive, indicating that the guidelines will promote the standardized development of programmatic trading [13]. - The exchanges plan to conduct training sessions to clarify the rules and ensure smooth implementation of the guidelines [15][16].

Core Viewpoint - The implementation of the procedural trading reporting guidelines for Shanghai and Shenzhen Stock Connect investors marks a significant step in enhancing regulatory oversight and ensuring compliance with the new Securities Law and related regulations [1][2][3] Group 1: Regulatory Framework - The newly released reporting guidelines align with existing procedural trading regulations in mainland China while adapting to the specific circumstances of the Hong Kong market [1] - The guidelines are part of the broader effort to implement the Securities Law and the procedural trading management regulations, which require investors engaging in procedural trading to report to the stock exchanges [2] - The guidelines will officially take effect on January 12, 2026, with existing investors required to complete their reports within three months of implementation [1][2] Group 2: Reporting Mechanism - The reporting will be based on the Northbound Investor Identification Code (BCAN) and will involve Northbound investors reporting to Hong Kong brokers, who will then relay the information to the Shanghai and Shenzhen Stock Exchanges [1][3] - The content and regulatory requirements for the reports will be consistent with those for domestic investors, ensuring a unified approach to procedural trading oversight [1][2] Group 3: Future Steps - The Shanghai and Shenzhen Stock Exchanges plan to enhance cross-border regulatory cooperation with the Hong Kong Stock Exchange to facilitate the smooth implementation of the reporting guidelines [3] - Ongoing efforts will include rule training and technical development to support the effective rollout of the new reporting requirements [3]

Core Viewpoint - The China Securities Association has released a standardized "Algorithmic Trading Entrustment Agreement" for securities firms to implement, which requires investors to comply with new regulations for algorithmic trading [1][5]. Group 1: Implementation of New Regulations - Securities firms are already adopting the new algorithmic trading agreement, mandating investors to sign it to engage in algorithmic trading or apply for related permissions [1][5]. - If investors do not agree to the new agreement, they must close their algorithmic trading permissions or cease algorithmic trading activities [1]. Group 2: Reporting Requirements - Investors must report various information before engaging in algorithmic trading, including account details, fund sources, trading strategies, and software information [2][3]. - Significant changes in reported information must be communicated to the securities firm within a specified timeframe [2][3]. Group 3: High-Frequency Trading (HFT) Regulations - HFT investors are required to report critical information such as server locations, system testing reports, and emergency plans in case of system failures [3][4]. - The agreement emphasizes compliance with laws and regulations, prohibiting activities like insider trading and market manipulation [4]. Group 4: Regulatory Framework - The implementation of the new algorithmic trading agreement is closely linked to the "Algorithmic Trading Management Implementation Rules" that took effect on July 7 [5]. - The rules define abnormal trading behaviors and outline measures that can be taken by exchanges in response to such behaviors, including high-frequency trading thresholds [5].

Market Performance - The Shanghai Composite Index closed at 3473.13, with a slight increase of 0.02% [2] - The Shenzhen Component Index closed at 10435.51, down by 0.70% [2] - The CSI 300 Index closed at 3965.17, decreasing by 0.43% [2] - The ChiNext Index closed at 2130.19, down by 1.21% [2] - The STAR 50 Index closed at 978.29, with a decline of 0.66% [2] - The Beijing Stock Exchange 50 Index closed at 1401.92, down by 0.93% [2] Sector Performance - The top-performing sectors included Comprehensive (+2.57%), Utilities (+1.87%), Real Estate (+1.68%), Light Industry Manufacturing (+1.52%), and Environmental Protection (+1.10%) [3] - The worst-performing sectors were Coal (-2.04%), Pharmaceutical Biology (-0.97%), Communication (-0.77%), Home Appliances (-0.70%), and Electronics (-0.67%) [3] Concept Index Performance - The leading concept indices were Shipbuilding System (+5.23%), Biomass Power Generation (+2.83%), Virtual Power Plant (+2.62%), Cross-Border Payment (+2.36%), and Pumped Storage (+2.26%) [3] - The lagging concept indices included Recombinant Protein (-1.42%), Weight Loss Drugs (-1.10%), CRO Concept (-1.07%), AI PC (-1.02%), and AI Mobile Phones (-0.99%) [3] Market Outlook - The market experienced fluctuations with the Shanghai Composite Index managing to close slightly positive while the Shenzhen Component and ChiNext indices closed lower [5] - The report suggests that as the mid-year earnings forecasts and reports are released, the impact of earnings on individual stock performance will become significant [5] - Attention is expected to shift towards domestic policies, US-China tariffs, and potential interest rate cuts by the Federal Reserve, with the upcoming Political Bureau meeting being a key observation point [5] - Recommended sectors for attention include Non-ferrous Metals, Banking, Transportation, and Utilities [5]

Core Viewpoint - The implementation of the new regulations on algorithmic trading aims to enhance market fairness and stability by reducing the excessive advantages of algorithmic trading over ordinary investors, while also mitigating market manipulation and speculation [2][4]. Group 1: Implementation Details - The new algorithmic trading management rules will officially take effect on July 7, 2025, allowing a three-month transition period for market participants to adapt and prepare [1]. - The Shanghai Stock Exchange has specified criteria for identifying high-frequency trading, including thresholds for order submission and cancellation rates [5][6]. Group 2: Regulatory Measures - Enhanced monitoring and reporting obligations will be imposed on investors engaging in high-frequency trading, requiring them to disclose server locations, system test reports, and emergency plans [6]. - Specific abnormal trading standards have been established to address the rapid order submission and cancellation characteristics of high-frequency trading [7]. - The exchange will implement stricter self-regulatory measures for abnormal trading behaviors and may require members to manage client trading activities more rigorously [8]. Group 3: Impact on Investment Firms - The new regulations will impose stricter compliance requirements on quantitative private equity funds, prompting firms to enhance their risk management systems and governance capabilities [9]. - The costs associated with high-frequency trading strategies are expected to rise significantly due to the new reporting and regulatory standards, necessitating a reassessment of profitability [9]. Group 4: Guidance for Brokers - The China Securities Association has issued a model agreement for algorithmic trading to guide brokers in standardizing their practices and clarifying the rights and responsibilities of all parties involved [10][11]. - The model agreement includes provisions on trading behavior management, high-frequency trading management, and breach of contract responsibilities [12][13].

Group 1 - The implementation of detailed regulations for algorithmic trading by the Shanghai and Shenzhen Stock Exchanges aims to promote a more standardized and efficient quantitative trading industry [1] - The new rules specify four types of abnormal trading behaviors, including rapid order submission, frequent cancellations, and large transactions within a short time frame, with high-frequency trading defined by specific thresholds [1] - Quantitative private equity firms are making significant adjustments to their trading models and risk management practices to comply with the new regulations, including real-time monitoring and strict control of trading volumes [1] Group 2 - The regulatory scrutiny on high-frequency trading has intensified, leading many large and medium-sized quantitative private equity firms to implement corrective measures, including dedicated personnel for compliance management [2] - As of mid-last year, the number of high-frequency trading accounts in the market decreased by over 20%, and behaviors triggering abnormal trading monitoring standards dropped by nearly 60% in the past three months [2] - The new regulations are seen as a means to foster healthy industry development, encouraging capable firms to thrive while reducing irrational trading behaviors and risks [2]

Core Viewpoint - The new regulations on algorithmic trading, effective from July 7, 2023, aim to enhance market stability and ensure fair practices while not stifling the growth of algorithmic trading [1][2][3] Group 1: Regulatory Framework - The "Implementation Rules" detail management of algorithmic trading reports, trading behavior, information systems, and high-frequency trading [2] - The rules specify that abnormal trading behaviors, such as excessive order submissions and cancellations, will be closely monitored, with potential penalties including trading restrictions and temporary suspensions [1][2] Group 2: Impact on Securities Firms and Quantitative Institutions - Securities firms will benefit from clearer guidelines for managing algorithmic trading clients, promoting self-regulation among quantitative trading institutions [3] - Leading quantitative traders indicate that while strong regulatory trends are evident, the actual impact on current operations will be minimal, as many firms are already adapting to these requirements [3] Group 3: Challenges for High-Frequency Traders - The new rules will significantly affect managers relying on high-frequency trading, as they will need to adjust systems to meet monitoring standards, increasing operational costs [4] - Strategies that depend on extremely high order submission and cancellation rates may face substantial adjustments or even elimination due to the new compliance requirements [4]

01 A股重磅！沪深北交易所程序化交易管理实施细则明起实施 7月7日起，沪深北交易所《程序化交易管理实施细则》正式施行。《实施细则》围绕强监管、防风险、促高质量发展主线，秉 承"趋利避害、突出公平、从严监管、规范发展"的程序化交易监管总体思路，对程序化交易报告管理、交易行为管理、信息系统 管理、高频交易管理、深股通管理、监督检查等作出细化规定。 在高频交易管理方面，《实施细则》明确高频交易标准，即单账户每秒申报、撤单笔数合计最高达到300笔以上，或者单账户全 日申报、撤单笔数合计最高达到20000笔以上。同时，《实施细则》对高频交易作出差异化监管安排，包括额外报告要求、从严 管理异常交易行为、实行差异化收费标准等。 02 央行大消息 7月4日，中国人民银行就《人民币跨境支付系统业务规则（征求意见稿）》公开征求意见。《业务规则（征求意见稿）》共六章 三十一条。对参与者和运营机构账户开立、参与者结算资金归属、参与者流动性管理等业务行为进行规范。明确参与者的业务类 型，对报文权限申请、系统登录、业务种类填写、查询查复等业务行为进行规范。 03 国资委重要 表态 7月3日，国务院国资委党委书记、主任张玉卓到中国有色矿 ...