Commercial Banks and Subordinated Bond Issues

On June 17 2004, the People's Bank of China and the China Banking Regulatory Commission (CBRC) jointly promulgated the Administration of the Issue of Subordinated Bonds by Commercial Banks Procedures (the Procedures), which took effect on the same day. As stated in Section 1 of the Procedures, the goal is to guide commercial banks to issue subordinated bonds, protect investors' interests and improve commercial banks' capital structure and self-development.