On April 14, 2023, the China Securities Association released the "Proposal for Establishing a Concept of Honor and Disgrace in the Securities Industry". Based on the new requirements of the new era, starting from the actual situation of the industry, and following the general laws of the capital market, the "Proposal" proposes the "Ten Adherences" and "Ten Objections" in terms of compliance with laws and regulations, honesty and trustworthiness, professional progress, prudence and stability, long-term philosophy, diligence and responsibility, integrity and self-discipline, cherishing reputation, serving entities, and financial services for the country, aiming to guide securities practitioners to practice socialist core values, Establish a concept of honor and disgrace in the securities industry, promote the formation of noble value pursuits among industry practitioners who are clear about right and wrong, discern good and evil, know integrity and responsibility, and create a clean and upright industry environment.

The China Securities Industry Association stated that since the November 2019 Securities Fund Industry Cultural Construction Mobilization Conference, industry institutions have conscientiously fulfilled their main responsibilities for industry cultural construction, cultivated the core values of "compliance, integrity, professionalism, and stability" industry culture, continuously enhanced cultural awareness, and achieved initial results in cultural construction. In the next stage, the association will fully leverage its role as a self-discipline organization, guide industry institutions to continuously improve their political standing and overall awareness, continue to promote the deep integration of cultural construction with corporate governance, development strategies, development methods, and behavioral norms, and guide the integration of cultural construction with the requirements of party building activities, historical and cultural inheritance, professional capacity building, and comprehensive human development. Urge securities companies to deeply understand the original mission of industry development, always adhere to putting the people at the center, transform development concepts, and actively fulfill social responsibilities. By leveraging the power of role models and setting benchmarks, we aim to create an atmosphere where everyone strives to become advanced and creates value through honor. Strengthen the guiding and deterrent role of self-discipline measures in punishing illegal and irregular activities and supervising legitimate employment, catch lagging behind, impose strict punishment, continuously improve the professional ethics and integrity of securities practitioners, and form reputation constraints.

After the release of the "Proposal", Huatai Securities made arrangements and deployments as soon as possible, organizing all employees to learn. In March of this year, the company formulated the "Work Plan for Huatai Securities to Further Consolidate and Promote the Cultural Construction of the Securities Industry", which clarified the overall requirements, goals, and four main work measures for the company's cultural construction in the coming years. Next, the company will continue to take serving the national strategy as its own responsibility, deepen the "dual wheel drive" development strategy of wealth management and institutional services under the empowerment of technology, promote the development of business platformization, integration, and internationalization to a new level, enhance the "hard power" to adapt to the era of comprehensive registration, and at the same time, take cultural brand construction as the driving force, continue to strengthen party building leadership, and continue to deepen the integration and progress of cultural construction and development strategies, Actively practicing the concept of honor and disgrace in the securities industry, fully incorporating the implementation of the "Proposal" into the company's cultural construction and business management work, extensively carrying out a series of promotional activities, comprehensively sorting out relevant institutional systems in accordance with the requirements of the Proposal, focusing on strengthening the management of employees' professional behavior, effectively preventing moral risks among employees, strengthening the construction of employees' moral standards, and building a "soft power" for stable and long-term development, Promoting high-quality development has always been at the forefront of the industry.

Proposal for Establishing a Concept of Honor and Disgrace in the Securities Industry

Adhere to legal compliance and oppose violations of laws and discipline

Adhere to honesty and trustworthiness, oppose treachery

Persist in professional progress and oppose not striving for progress

Adhere to prudence and stability, oppose blind expansion

Adhere to long-term concepts and oppose hasty progress

Adhere to diligence and responsibility, and oppose dereliction of duty

Adhere to integrity and self-discipline, oppose materialism and hedonism

Persist in cherishing reputation and oppose damaging image

Adhere to serving entities and oppose shifting from reality to emptiness

Adhere to financial service for the country and oppose selfishness

Let us work together to create a clean and positive market environment, provide strong spiritual impetus for the high-quality development of the industry, and make due contributions to the construction of a modern capital market with Chinese characteristics.

China Securities Association

April 14, 2023