People's Bank of China, Measures for the Administration of Interbank Negotiable Certificates of Deposit

Main contents: A Deposit-taking Financial Institution may determine at its own discretion the issue amount and term of each issue of interbank negotiable certificates of deposit within its filed issue limit for the year in question, but the amount for any single issue may not be less than Rmb50 million (Article 6).

The offer rate, offer price, etc. for interbank negotiable certificates of deposit (INCDs) will be determined by a market method. In principle, the term of a fixed-rate INCD does not exceed one year, being one month, three months, six months, nine months and one year, with pricing determined with reference to the Shanghai Interbank Offered Rate (SHIBOR) for interbank loans of the same term. Interest on variable-rate INCDs will accrue by taking SHIBOR as the benchmark for the variable interest rate, and the term of such variable INCDs is, in principle, at least one year, including one year, two years and three years (Article 8).