（Promulgated on and effective as of 15 December 1994.）
颁布日期：19941220 　实施日期：19941220 　颁布单位：内贸部

PART ONE　GENERAL PROVISIONS

Article 1　These Procedures are formulated in order to improve the commodity wholesale market mechanism and standardise wholesale market trading so that the establishment and administration of wholesale markets can be legalised and standardised for the protection of the normal business as well as lawful rights and interests of parties to transactions.

Article 2　The term “wholesale market” in these Procedures shall refer to a site that provides and conducts commodity wholesale trading for buyers and sellers in a frequent， open and standardised manner， with the availability of associated services or functions such as information， clearing and transport.

Article 3　The term “central wholesale market” in these Procedures shall refer to a wholesale trading site that is established， upon approval or recognition by the Ministry of Domestic Trade， in central cities serving as the main production， marketing or distribution places for commodities， and that is able to branch out across neighbouring regions and the whole country.

Article 4　The term “local wholesale market” in these Procedures shall refer to a wholesale trading site that is approved by the department in charge of commodity circulation in provinces， autonomous regions， centrally-governed municipalities or municipalities with an independent development plan where such wholesale trading site is located， or by the departments designated by the People's Government at the provincial level， that a record of establishment with the Ministry of Domestic Trade.

Article 5　Wholesale markets established upon approval or recognition must use the name “wholesale market”。 The name of a central wholesale market shall be preceded by the name of the place （province or municipality） where such market is located， indicating the type of traded commodities and the words “central wholesale market”。 The name of a local wholesale market shall be preceded by the name of the city where such market is located， indicating the type of traded commodities and the words “wholesale market”。 Markets that have not been approved or recognised may not use the words “wholesale market”。

Article 6　Wholesale markets shall be legal persons or enterprise legal persons engaging in non-profit making business for the public good. Wholesale markets shall be responsible to the Board of governors （Board of directors） under the supervision and administration of management committees.

Article 7　The policy of wholesale markets shall be to provide services on the basis of the principles of open trading， fair competition and free bargaining.

Article 8　Wholesale markets shall observe and implement laws of the State and macro-economic control policies.

PART TWO　ESTABLISHMENT

Article 9　Central wholesale markets may be established only with approval by the Ministry of Domestic Trade； local wholesale markets may be established only with approval by the department in charge of commodity circulation at provincial level （including municipalities with an independent development plan） or by the departments designated by the People's Government at provincial level.

Article 10　The Ministry of Domestic Trade shall formulate plans for the construction of wholesale markets in line with the economic development of the State. The plans for the construction of wholesale markets shall include：

1. an overall plan， policy and principle for the construction of the markets；

2. the distribution， scale and type of markets；

3. objectives of market construction；

4. market administration and guidelines； and

5. other necessary matters concerning market construction.

Departments in charge of commodity circulation in provinces， autonomous regions， centrally-governed municipalities and municipalities with an independent development plan shall formulate plans for the construction of markets in their own regions according to the plan of the Ministry of Domestic Trade for wholesale market construction， and shall submit such plans to the Ministry of Domestic Trade for the record.

Article 11　The following requirements must be met for the establishment of a wholesale market：

1. availability of different means of transportation and advanced communications in cities as the main production or marketing places for the commodities traded， or in commodity distribution centres；

2. availability of a site and associated infrastructure facilities for wholesaling； and

3. conformity with State and local plans for market construction.

Article 12　Wholesale markets may be established with funds raised by a Government department or be funded or jointly established by enterprises according to relevant provisions of the PRC， Company Law （hereafter， the “Company Law”）。

Article 13　Applications for the establishment of central wholesale markets shall be filed by the work unit that wishes to establish a wholesale markets and reported to the Ministry of Domestic Trade for approval.

Applications for the establishment of local wholesale markets shall be filed by the work unit that wishes to establish a wholesale markets and reported to the departments in charge of commodity circulation in provinces， autonomous regions， centrally-governed municipalities and municipalities with an independent development where such markets are located， or to the departments designated by the People's Governments at provincial level for approval， and reported to the Ministry of Domestic Trade for the record. The Ministry of Domestic Trade shall， within one month of receiving the record， shall make an official reply in writing as to whether consent is granted or not. Matters such as opening of the market may be handled according to law only when consent is granted.

Article 14　Applications for the establishment of central wholesale markets shall be subject to authorisation by the People's Governments at provincial level （including municipalities with an independent development plan）。

Article 15　For the purposes of Article 13 of these Procedures， the term “work unit that wishes to establish a wholesale markets” shall refer to：

1. preparatory offices （groups） set up， on the basis of common objective， by the wholesale market to be established with funds raised by Government departments for such relevant Government departments and enterprises or institutions that participate in raising the funds； or

2. two or more enterprises or institutions approved by the Ministry of Domestic Trade， departments in charge of commodity circulation in provinces， autonomous regions， centrally-governed municipalities and municipalities with an independent development or the departments designated by the People's Government at provincial level， for the establishment of wholesale markets in the form of companies according to the Company Law.

Article 16　The following materials shall be submitted for the application for establishing a wholesale market：

1. an application from the work unit that wishes to establish a wholesale market；

2. a feasibility report on the establishment of the wholesale market；

3. a plan of establishment and measures for implementing such plan； and

4. the articles of association， trading rules and draft regulations for internal management.

Article 17　The feasibility report on a wholesale market shall contain the following contents：

1. the type and name of the commodities to be traded during wholesaling；

2. the productivity and consumption and circulation amounts of that type of commodities at the place where the market is located， as well as the amount and scale of the markets of the same nature；

3. the volume of trade and amount of the market and anticipated capability of branching out across neighbouring regions and the whole country；

4. details of the transport， communications and circulation facilities of the place where the market is located；

5. the area， facilities and main services and functions of the market；

6. details of the professional managerial personnel；

7. a proposal on the establishment of the wholesale market as well as short-term and long-term objectives for such establishment；

8. the amount of funds for the establishment， proposal on raising such funds and contract signed by the work unit that invest in and fund the establishment；

9. direct or indirect profit forecast for the investment；

10. advantages and disadvantages of the project as well as measures or policies in respect of such advantages or disadvantages； and

11. other items needed to be specified.

Article 18　The following contents shall be provided for in the articles of association or trading rules：

1. location and scale of the market；

2. type of commodities being traded；

3. methods of attracting investment， organisational structure， lead organisation and proposal on formation of the management organisational structure；

4. methods of trading and settlement；

5. relevant details of personnel engaged in wholesale；

6. relevant details of personnel engaged in market management；

7. charges for using facilities；

8. trading hours；

9. rules of agents and handling fee charging standards；

10. sources of daily expenses and rules of spending such expenses； and

11. other contents that shall be provided for in the articles of association or trading rules.

Article 19　The Ministry of Domestic Trade shall， within three months of receiving an application for establishing a central wholesale market and the aforesaid documents， examine and verify such application and documents， and make an official reply. Local wholesale markets shall be examined and approved by the departments in charge of commodity circulation in provinces， autonomous regions， centrally-governed municipalities and municipalities with an independent development plan or by the departments designated by the People's Government at provincial level， by reference to the methods of examining and approving central wholesale markets.

Article 20　Central wholesale markets established upon approval and local wholesale markets approved by， and filing a record with， the Ministry of Domestic Trade shall be exclusively announced to the public by the Ministry in a timely manner.

PART THREE　SUPERVISORY AND ADMINISTRATIVE ORGANISATION

Article 21　Management committees shall be set up for wholesale markets. The management committee of a central wholesale market shall comprise representatives and experts from the Ministry of Domestic Trade， superior department in charge of the work unit that wishes to establish a wholesale market and relevant department of the government of the place where such market is located. The management committee shall have one chairman and several vice-chairmen to be assigned respectively by the Ministry of Domestic Trade， People's Government at provincial level （including municipalities with an independent development plan） of the place where such committee is located and department in charge of production.

Article 22　Management committees shall be the supervisory and administrative organisations of wholesale markets， with the main duties of：

1. approving rules and regulations such as market management rules， articles of association， management rules for traders， trading rules， code of practice for personnel， etc.；

2. approving the type and method of trading （excluding trading of medium- and long-term contracts by means of price competition）；

3. co-ordinating between departments and localities and handling relevant policies involving the preparation and operation of the wholesale market；

4. examining and approving reports of the Board of governors （directors）；

5. supervising and guiding activities of the wholesale market； and

6. examining and approving other important matters concerning the wholesale market.

Article 23　A management committee shall convene a meeting at least once a year. The meeting shall be attended by more than two-thirds of the members. Resolutions at the meeting shall be effective only after being passed by more than half of the members.

Article 24　The management committees of local wholesale markets shall be set up by reference to the method of setting up management committees for central wholesale markets.

PART FOUR　ORGANISATION OF AUTHORITY

Article 25　Boards of governors shall be set up for central wholesale markets established with funds from government departments. Boards of governors shall be the organisations of authority of such markets.

A Board of governors shall comprise an odd number of no less than five people， of whom the number of governors recommended by the government department that raised funds shall not be more than two-third of the governors， with representatives elected by traders acting as the remaining governors. The Board of governors shall elect one chairman and several vice-chairmen of the Board of governors with a term of two years who may succeed in elections. The chairman of the Board of governors shall be the legal person representative of the wholesale market.

1. the Board of governors shall be responsible to the government department that raised funds and to traders， and shall have the following functions and powers：

（1） formulating and amending relevant rules and regulations of the wholesale market；

（2） deciding the business objectives and investment plans；

（3） deciding the invitation of foreign investment and method of trading （excluding trading of medium- and long-term contracts by means of price competition） of the wholesale market；

（4） approving traders to do floor trading；

（5） approving traders of doing agency or wholesale business；

（6） deciding on merger， division， dissolution and liquidation of the wholesale market；

（7） deciding on the establishment of internal organisations of the wholesale market；

（8） hiring or dismissing senior managerial personnel； and

（9） working out annual budget and final accounting of the wholesale market.

2. a wholesale market shall have one general manager （or president） who shall be hired by the Board of governors， responsible to the Board of governors and have the following duties and powers：

（1） organising the implementation of business objectives and investment plans of the wholesale market；

（2） formulating plans for the establishment of internal management structures of the wholesale market；

（3） formulating a specific management system for the wholesale market；

（4） responsible for routine work of the wholesale market； and

（5） other duties and powers assigned by the articles of association and Board of governors of the wholesale market.

General managers （presidents） shall attend meetings of the Board of governors.

Article 26　Central wholesale markets shall set up functional departments for trading， information， clearing， settlement of transactions， market development， supervision etc.， in line with their needs.

Article 27　Boards of directors shall be set up for central wholesale markets established according to the Company Law. Boards of directors shall be the organisations of authority of wholesale markets. The creation， duties and powers of a Board of directors and other organisations shall be handled according to relevant provisions of the Company Law.

Article 28　Working organisations of local wholesale markets shall be set up by the local governments in the light of the actual local condition or may be set up by reference to the method of setting up organisations for central wholesale markets.

PART FIVE　TRADERS

Article 29　For the purposes of these Procedures， the term “traders” shall refer to wholesale enterprises， brokers and approved production enterprises and users that have the capacity to trade in commodities by wholesale and may enter wholesale markets to conduct trading.

Article 30　A trader must meet the following requirements：

1. possession of independent legal person status；

2. possession of the minimum registered capital necessary for， and business facilities appropriate to， the commencement of the wholesaling of specified commodities；

3. possession of a wholesale business permit for brokers；

4. possession of a good business reputation and no criminal record； and

5. other mandatory requirements specified in the articles of association of the wholesale market.

Article 31　Wholesale markets， brokers， major production enterprises and users that meet the above requirements may apply to the markets and may conduct floor trading only upon approval of the Board of governors （directors）。

Article 32　Traders shall equally enjoy the rights granted by the articles of association of wholesale markets and carry out the obligations specified in such articles of association.

Article 33　Traders must appoint dealers with a qualification certificate to conduct floor trading. The Ministry of Domestic Trade shall be responsible for the recognition of the qualifications of wholesale market professionals. Nationwide organisations of the industry or other relevant departments may be appointed to conduct training and examination of such dealers. A practising qualification certificate shall be issued to qualified dealers upon completion of training. Personnel who have not obtained a practising qualification certificate may not participate in trading.

Article 34　Dealers shall be fully responsible， as authorised， for the trading within the market on behalf of their traders. The contracts signed by dealers shall be legally binding. Dealers may only receive instructions from their work units but may not receive instructions from other traders or clients.

Article 35：Upon approval of the Board of governors （directors）， enterprise legal person traders shall have the right to accept an appointment from clients to conduct wholesale agency business.

Article 36　When an enterprise legal person trader changes his legal person representative， he shall file a record with the wholesale market within one month following the change. A record of the change of， or increase in the number of， dealers shall be filed with the wholesale market 15 days in advance. The original dealers may step down only after having completed all procedures.

PART SIX　TRADING

Article 37　Traders shall conduct trading on wholesale markets on the basis of the principles of honest， creditability， fairness and justice.

Article 38　In line with the features of commodities， the methods of trading shall be by means of agreement or consultation， price competition and auction.

Article 39　Trading on wholesale markets approved by the markets shall be legally binding. The parties shall strictly perform the contracts. Wholesale markets shall have the powers and obligations to ensure that the parties perform the contracts.

Article 40　With respect to on the spot transactions， buyers and sellers shall be responsible for the terms and conditions of such transactions， such as the time， place， type， quantity， quality， etc. and method of delivery agreed upon by both parties. Wholesale markets shall be responsible for the supervision.

Article 41　Trading in medium- or long-term contracts by means of price competition by wholesale markets shall be strictly controlled. Wholesale markets must obtain approval from the Ministry of Domestic Trade for conducting trading in medium- or long-term contracts by means of price competition or for converting on the spot trading into trading in medium- or long-term contracts by means of price competition.

Article 42　Approval must be obtained from the Ministry of Domestic Trade where change of， or increase in the number of， the type of commodities traded in medium- or long-term contracts by means of price competition is to be made， reports of such must be sent to the Ministry of Domestic Trade for approval.

Article 43　Specific procedures for the administration of trading in medium- and long-term contracts by means of price competition shall be separately formulated by the Ministry of Domestic Trade.

Article 44　Wholesale markets that meet the requirements shall take the initiative in seeking support from the railway and transport departments.

Article 45：The types of commodities traded on wholesale markets shall meet the quality standards recognised by the State.

Article 46　Wholesale markets may hold national， provincial or municipal commodity trade fairs in line with the needs of the Ministry of Domestic Trade， departments in charge of production or regional governments.

Article 47　The following activities shall be prohibited in trading inside wholesale markets：

1. conspiring at ill will to create false supply and demand as well as price；

2. deliberately inventing or distributing false or misleading information；

3. pushing a price up or down on a continuous basis to buy or sell commodities of the same type with the purpose of manipulating the market；

4. manipulating or disrupting trading by other direct or indirect means；

5. conducting trading in medium- or long-term contracts by means of price competition without approval；

6. starting agency or wholesale business without approval； and

7. accepting remuneration other than handling charges specified in the articles of association for engaging in agency or wholesale business.

PART SEVEN　AGENCY AND WHOLESALE

Article 48　Traders must observe agency regulations and relevant rules for conducting agency or wholesale business.

Article 49　Wholesale markets shall be responsible to traders， while agents shall be responsible to principals.

Article 50：Agents may charge principals a handling fee

Article 51　Wholesale markets shall have the right to inspect and supervise the business that an agent is acting for， and protect the interests of principals.

Article 52　Principals shall have the freedom to choose agents. The terms and conditions for acting as an agent shall be determined by the parties to the agency through agreement or consultation and according to the principles of justice and legitimisation， and an agency agreement shall be signed.

PART EIGHT　PRICING

Article 53　Unless State regulations provides otherwise， wholesale market trading prices shall be allowed to fluctuate according to the market. The statutory currency for quoting prices shall be Renminbi.

Article 54　Wholesale markets shall formulate rules for the administration of prices according to relevant laws of the State.

Article 55　Transaction prices， quantities and other data of wholesale markets shall be solely responsible for collecting by a wholesale market organisation.

Article 56　A system for reporting details of wholesale markets shall be set up. At the end of each trading day， central wholesale markets shall be solely responsible for reporting transactions of types of commodities， places of origin， quantities， prices and other details to the Ministry of Domestic Trade for national announcement. At the end of each trading day， local wholesale markets shall report transaction types of commodities， places of origin， quantities， prices and other details to the departments in charge of commodity circulation at provincial level （including municipalities with an independent development plan） or the departments designated by the People's Governments at provincial level for being solely responsible for organising an announcement. Local departments in charge of commodity circulation shall report the above-mentioned details to the Ministry of Domestic Trade on a regular basis.

PART NINE　CLEARING

Article 57　Commodities transacted on the floor of wholesale markets that meet the requirements shall be subject to central clearing.

Article 58　Wholesale markets conducting trading by means of price competition may require payment of deposits. A national central clearing organisation shall be established when conditions are ripe.

Article 59　Wholesale markets shall have the power to recover compensation from， and impose penalties on， the parties in breach of contracts for the economic losses caused by such parties.

PART TEN　SUPERVISION AND ADMINISTRATION

Article 60　Wholesale markets shall actively， rigorously and efficiently serve traders. Wholesale markets shall pay compensation to traders for losses caused by dereliction of duty of the staff of the markets.

Article 61　The staff of wholesale markets shall uphold justice and be upright and honest， and may not participate in floor trading activities. Staff who show favouritism， engage in malpractice or act in violation of laws or discipline shall be subject to penalties according to relevant clauses of the code of practice for such staff. Where the cases are serious， the staff shall be dealt with by relevant departments according to the limits of their authority for the administration of cadres or staff， and relevant laws or regulations.

Article 62　Wholesale markets shall have the power to supervise trading activities of traders and penalise traders for acts in violation of rules or discipline according to relevant regulations， rules and articles of association.

Article 63： As a result of the failure of traders not to strictly perform the clauses of a commodity wholesale contract， buyers and sellers shall resolve disputes through agreement or consultation first. When both parties fail to reach a consensus， the wholesale market shall mediate according to law.

Article 64： Wholesale markets shall carry out the duties of supervision or imposition of penalties by means of：

1. hearing complaints from traders；

2. handling accusations against traders for their improper activities；

3. investigating trading and financial status of traders and inspecting accounts， documents and original records； and

4. notifying traders in writing of stopping or correcting their improper activities.

Article 65： With respect to the activities of traders and dealers in violation of rules， penalties shall be imposed on such traders and dealers according to relevant rules of wholesale markets by giving a warning or disqualifying such traders and dealers. Activities that are serious or in violation of criminal laws shall be dealt with by the judicial authorities.

Article 66： Wholesale markets shall examine the qualifications of traders and dealers on a yearly basis and report to the Ministry of Domestic Trade for the record.

Article 67： When there is an improper activity or an abnormal price in the trading on a wholesale market， the Ministry of Domestic Trade or local department in charge of commodity circulation may supervise and instruct trading on such market， and shall have the power to require such market or traders to provide business reports or information for inspection.

PART ELEVEN　SUPPLEMENTARY

Article 68： Departments in charge of circulation of commodities in provinces， autonomous regions， centrally-governed municipalities and municipalities with an independent development plan may formulate local procedures for the administration of wholesale markets according to these Procedures.

Article 69： The Ministry of Domestic Trade shall be responsible for interpretation of these Procedures.

Article 70： These Procedures shall be effective as of the date of promulgation.