To regulate the interbank certificate of deposit business, broaden the financing channel of deposit-taking banking financial institutions, and promote the development of the money market, the PBC has formulated and released the Provisional Rules on Management of Interbank Certificates of Deposit. The Rules shall become effective on December 9, 2013.

The People’s Bank of China

December 7, 2013

Provisional Rules on Management of Interbank

Certificates of Deposit

Article 1 The Rules are formulated in accordance with the Law of the People’s Republic of China on the People’s Bank of China and other relevant laws and regulations to regulate the interbank certificates of deposit business, broaden the financing channel of deposit-taking banking financial institutions, and promote the development of money market.

Article 2 In the Rules, an interbank certificate of deposit refers to a book-entry certificate of time deposit issued by a deposit-taking banking financial institution with a legal person status (hereinafter referred to as a deposit-taking financial institution) on the national interbank market. It is a money market instrument.

The above deposit-taking financial institutions refer to policy banks, commercial banks, rural cooperative financial institutions, and other financial institutions specified by the People’s Bank of China.

Article 3 In order to issue interbank certificates of deposit, a deposit-taking financial institution shall meet the following requirements:

(1) It is a member of the self-regulatory pricing mechanism for market interest rates;

(2) It has formulated internal rules for interbank certificate of deposit business; (3) Other requirements specified by the People’s Bank of China.

Article 4 Members of the National Interbank Funding Center, fund management companies, and mutual fund-type products can invest in and trade interbank certificates of deposit.

Article 5 In order to issue interbank certificates of deposit, a deposit-taking financial institution shall file annual issuance plan with the People’s Bank of China before issuing the first such product in each year.

Article 6 A deposit-taking financial institution may, within its filed line of issuance, determine the amount and maturity of each issuance, but the amount of a single issue shall be no less than 50 million yuan. The filed amount is subject to balance control, and the outstanding volume of interbank certificate of deposit of an issuer shall not exceed the filed amount at any point of time during the year.

Article 7 An interbank certificate of deposit is to be issued via electronic means through public offering or targeted offering on the national interbank market. The National Interbank Funding Center provides services for the issuing, trading and information of the interbank certificate of deposit business.

Article 8 The issue interest rate and price of an interbank certificate of deposit are to be market-determined. In principle, the maturity of a fixed-rate interbank certificate of deposit shall not exceed one year and can be 1-month, 3-month, 6-month, 9-month, or 1-year. Its issue interest rate shall be priced with reference to the Shibor rate of the same maturity. The interests of a floating rate interbank certificate of deposit shall be calculated based on the Shibor rate of the same maturity; in principle its maturity shall be more than one-year and can be 1-year, 2-year, or 3-year.

Article 9 An interbank certificate of deposit shall be registered at, deposited with, and settled through the Shanghai Clearing House.

Article 10 An interbank certificate of deposit issued through public offering can be traded on the money market and serve as the underlying asset of repo transactions.

An interbank certificate of deposit issued through targeted offering can only be traded or transferred among its original investors.

Article 11 An issuer must not subscribe to an interbank certificate of deposit it has issued directly or in any disguised form.

Article 12 A market maker system will be established for the interbank certificates of deposit market. A market maker shall be a core member of the self-regulatory pricing mechanism for market interest rates. In view of the changes and development of the interbank certificate of deposit market, the People’s Bank of China will adjust the scope of market makers where appropriate. A market maker should offer bilateral sale and purchase price quotations on a continuous basis for the interbank certificates of deposit market through the system of the National Interbank Funding Center, and trade with other market players at the offered prices.