To deepen the opening-up of China’s financial market and further facilitate liquidity management for overseas institutional investors, we hereby announce matters regarding their bond repurchase business in China’s bond market as follows:

1. Overseas Institutional Investors refer to those eligible for cash bond trading in China’s bond market, including overseas central banks, international financial organizations, sovereign wealth funds, overseas financial institutions and medium-to-long-term institutional investors such as pension and charitable funds.

2. Bond Repurchase Business includes pledged repo and outright repo.

3. Overseas institutional investors must comply with Chinese laws, regulations and financial regulatory provisions, with fund flows adhering to the capital and account management rules of their corresponding cash bond investment channels. Those conducting business via QFII/RQFII channels shall follow relevant rules for QFII domestic investment, accounts and fund remittance.

4. Domestic financial market infrastructures shall formulate/revise business rules, complete regulatory filings, provide trading, custody and settlement services, and report major issues or abnormalities to regulators in a timely manner.

5. Overseas financial market infrastructures, self-regulatory organizations and industry associations providing related services must comply with Chinese laws and accept supervision.

6. Domestic self-regulatory organizations shall strengthen self-regulation of bond repurchase business.

7. Overseas institutional investors shall sign a standard master bond repurchase agreement, the standard version of which shall be filed with regulators by relevant self-regulatory and industry organizations.

8. The People’s Bank of China (PBOC), China Securities Regulatory Commission (CSRC) and State Administration of Foreign Exchange (SAFE) will enhance regulatory coordination. The PBOC exercises macro-prudential management; the PBOC and CSRC conduct supervision by respective duties; SAFE oversees related foreign exchange transactions.

9. Violations of laws, regulations or this announcement will result in regulatory measures and penalties in accordance with relevant Chinese laws.

10. Institutional investors from Hong Kong, Macao and Taiwan regions shall follow this announcement.

11. This announcement is interpreted by the PBOC, CSRC and SAFE.

12. This announcement takes effect on the date of issuance, and the Notice of the PBOC on Bond Repurchase Transactions in the Interbank Bond Market by Offshore RMB Clearing Banks and Offshore Participating Banks (Yin Fa〔2015〕No.170) is abolished simultaneously.