All trading members:

For the purpose of implementing Announcement [2009] No. 4 of the People’s Bank of China (hereinafter referred to as Announcement No. 4), notice is hereby given of issues concerning the trading of and filings for financial derivatives as follows:

I. Trading members that have not concluded Master Agreements for Bond Forward Trading in the National Interbank Bond Market, Master Agreements for Financial Derivative Transactions in the China Interbank Market (2007), or Master Agreements for RMB/FX Derivatives in the National Interbank Foreign Exchange Market (2007) are not required to conclude the aforesaid corresponding agreements before conducting financial derivative transactions, but shall conclude with their counterparties Master Agreements for Financial Derivative Transactions in the China Interbank Market (hereinafter referred to as Master Agreements) promulgated by the National Association of Financial Market Institutional Investors (hereinafter referred to as the NAFMII) in Announcement [2009] No. 5 and shall report to the NAFMII for record filing. 

II. Trading members that have concluded Master Agreements for Bond Forward Trading in the National Interbank Bond Market, Master Agreements for Financial Derivative Transactions in the China Interbank Market (2007), and Master Agreements for RMB/FX Derivatives in the National Interbank Foreign Exchange Market (2007) and have obtained authorization to trade in the corresponding financial derivatives via the trading system of the China Foreign Exchange Trade System (hereinafter referred to as the CFETS) shall promptly conclude Master Agreements with their counterparties within 6 months of the release of Announcement No. 4. Members that fail to conclude Master Agreements within 6 months shall have their authorization to trade in financial derivatives suspended by the CFETS.

III. Other matters concerning transactions in financial derivatives shall continue to be implemented in accordance with relevant documents promulgated by the People’s Bank of China, the State Administration of Foreign Exchange, and the CFETS. Bond forward transactions, RMB/FX forward transactions, RMB/FX swap transactions, and RMB cross currency swap transactions shall be conducted through the trading system of the CFETS; where interest rate swap transactions or forward rate agreement transactions are not concluded through the CFETS system, financial institutions shall continue to report information on such transactions to the CFETS for record filing in accordance with existing filing measures before 12:00 on the working day following the date on which such interest rate swap transactions or forward rate agreement transactions are concluded (for the new filing form, see the attachment). All financial institutions should make record filing in light of the following requirements:

1. Where an institution cancels or modifies a filed transaction, it shall submit the original filing elements and modified filing elements for the canceled or modified transaction by faxing to the CFETS according to the format set out in the transaction filing form and, at the same time, submit an electronic document in Excel format.

2. Please fill out the reference rate according to the following format:

① The interest rate for each Shibor period shall be filled out in the format of “Shibor + underline + period (O/N, 1W, 2W, 1M, 3M, 6M, 9M, 1Y)”, for example “Shibor_O/N”;

②The Fixing Repo Rate shall be filled out in the format of “FR + period (001/007)”, for example “FR007”;

③ The interest rate for one-year RMB fixed term deposits shall be filled out as “one-year fixed deposit rate”.

3. The interest accrual benchmark shall be filled out according to the following format:

① “Actual number of days/actual days” shall be filled out in the format of “A/A”;

② “Actual number of days/365” shall be filled out in the format of “A/365”;

③ “Actual number of days/365 (fixed)” shall be filled out in the format of “A/365”;

④ “Actual number of days/360” shall be filled out in the format of “A/360”; and

⑤ “30/360” and “30E/360” shall be filled out in the same format.

4. The payment frequency shall be filled out in the format of “daily”, "weekly”, "monthly”, "quarterly”, "half-yearly”, "yearly” or “payment due”.

Attachments:

1. RMB Interest Rate Swap Transaction Filing Form (Fixed-Floating )

2. RMB Interest Rate Swap Transaction Filing Form (Floating-Floating )

3. Forward Interest Rate Agreement Transaction Filing Form

April 22, 2009