Clause 1This Guide is formulated with the approval of the Financial Market Department of the People’s Bank of China (PBC) to clarify the networking and account opening procedures for overseas institutional investors in the inter-bank bond market according to the requirements ofPBC Public Notice No. 3[2016].

Clause 2This Guide applies to financial institutions lawfully registered and incorporated outside the territory of the People’s Republic of China, including commercial banks, insurance companies, securities companies, fund management companies and other asset management institutions, investment products issued by the aforementioned institutions to clients in accordance with the laws and regulations, and other medium and long term institutional investors approved by PBC, such as pension funds, charity funds and endowment funds.

Clause 3When entering the inter-bank bond market, an overseas institutional investor needs to have its settlement agent submit applications for networking or account opening respectively to China Foreign Exchange Trade System and National Inter-bank Funding Center(hereinafter referred to as “CFETS”), China Central Depository & Clearing Co., Ltd. (hereinafter referred to as “CCDC”) and Shanghai Clearing House (hereinafter referred to as “SHCH”).

Clause 4Documents required for networking or account opening:

(1) Registration notice issued by the PBC Shanghai Head Office;

(2) Business application form of overseas institutional investors (see Annex);

(3) Signature page(s) of business agreement(s) required for account opening.

Standard texts of relevant business agreements on account opening are released and publicized separately on the official websites of CCDC and SHCH.

Clause 5CFETS, CCDC and SHCH will begin to process the relevant business after receiving the documents submitted by the settlement agent for networking or account opening. If the documents are correct and complete, networking or account opening procedures will be completed within three working days; otherwise, the settlement agent will be informed of all the inadequacies for one time.

Clause 6In the event of any alteration(s) of registration for the overseas institutional investor, as required by the PBC Shanghai Head Office, after the registration is completed, the settlement agent needs to submit to CFETS, CCDC and SHCH respectively the following documents:

(1) Alteration(s) of registration notice issued by the PBC Shanghai Head Office;

(2) Business application form of overseas institutional investors ;

(3) Signature page(s) of business agreement(s) required for alteration(s).

Clause 7For any alteration(s) regarding basic information of overseas institutional investors such as the reserved seal, the settlement agent needs to submit the BusinessApplication Form of Overseas Institutional Investors to CFETS, CCDC and SHCH respectively.

Clause 8CFETS, CCDC and SHCH will begin to process the relevant business after receiving the documents submitted by the settlement agent for alteration(s). If the documents are correct and complete, procedures for such alteration(s) will be completed within three working days; otherwise, the settlement agent will be informed of all the inadequacies for one time.

Clause 9To exit the inter-bank bond market, the settlement agent needs to submit the Business Application Form of Overseas Institutional Investors to CFETS, CCDC and SHCH respectively to apply for the network termination or account cancellation.

Clause 10After receiving the documents submitted by the settlement agent for network termination or account cancellation, unless documents are incorrect or incomplete, or there is balance in the account, or there are any unsettledclaimsandliabilities or unpaid fees, CFETS, CCDC and SHCH will process the network termination or account cancellation procedures within three working days; otherwise, the settlement agent will be informed of all the inadequacies for one time.

Clause 11   If anunincorporated productreaches its maturity date, CFETS, CCDC and SHCH will conduct an automated procedure of network termination or account cancellation at the end of the third working day after its maturity.

Clause 12   CFETS, CCDC and SHCH are responsible for the interpretation and amendment of this Guide.

Clause 13This Guide will take effect on the date of its release.

Annex: Business Application Form of Overseas Institutional Investors