Cross Trading (China B-Shares)
Cross trading is a transaction between a designated buyer and designated seller who negotiate a price for particular securities at particular prices and quantities through a securities company. Cross trading is generally used as a block trade of China B-Shares. The basic rules for cross trading on the SSE are as follows.
1. The quantity of cross trading is generally more than 50,000 shares.
2. Pricing of cross trading is generally between the highest and lowest price of the day. If there is just one price on a day, the cross price interval is between this price and the previous closing price. If there is no concluded transaction that day, the previous closing price is used as the cross price.
3. Cross trading orders must be placed by floor traders and can only be concluded after confirmation made by SSE floor supervisors. Cross trade could take place only 15 minutes after the opening and before the closing of trading.