China Central Depository & Clearing Co., Ltd., Guidelines on Bond Business in the China (Shanghai) Pilot Free Trade Zone

(2) a domestic or foreign organization that has opened a free trade account (FTA);

(3) a foreign organization that has opened a non-resident renminbi settlement account (NRA);

Of which:

The term “domestic organization” means a domestic development financial institution, policy bank, deposit-taking financial institution, other banking financial institution, securities-type financial institution, insurance-type financial institution, non-financial institution and non-legal person product, etc.

The term “foreign organization” means a QFII, RQFII, foreign central bank/monetary authority, Hong Kong/Macao renminbi clearing bank, foreign bank participating in renminbi clearance in connection with foreign trade, other qualified foreign financial institution and the products issued by them, etc.

A domestic or foreign organization that satisfies the foregoing conditions may apply to open a bond account with the China Central Depository & Clearing Co., Ltd. and activate an FTZ dedicated sub-portfolio, and directly participate in bond business in the FTZ. Alternatively, a foreign organization may participate in bond business in the FTZ through a settlement agent or a qualified foreign securities custodian (Article 3).

Issued: September 7 2016

Effective: September 8 2016

Main contents: Investors satisfying any of the following conditions may participate in bond business in the FTZ:

(1) a domestic organization that has established an FTZ separate accounting unit that has passed the acceptance check;

(2) a domestic or foreign organization that has opened a free trade account (FTA);

(3) a foreign organization that has opened a non-resident renminbi settlement account (NRA);

Of which:

The term “domestic organization” means a domestic development financial institution, policy bank, deposit-taking financial institution, other banking financial institution, securities-type financial institution, insurance-type financial institution, non-financial institution and non-legal person product, etc.

The term “foreign organization” means a QFII, RQFII, foreign central bank/monetary authority, Hong Kong/Macao renminbi clearing bank, foreign bank participating in renminbi clearance in connection with foreign trade, other qualified foreign financial institution and the products issued by them, etc.

A domestic or foreign organization that satisfies the foregoing conditions may apply to open a bond account with the China Central Depository & Clearing Co., Ltd. and activate an FTZ dedicated sub-portfolio, and directly participate in bond business in the FTZ. Alternatively, a foreign organization may participate in bond business in the FTZ through a settlement agent or a qualified foreign securities custodian (Article 3).