EVENTS UPON THE TENTH ANNIVERSARY OF THE CFETS

1993

December 25 The State Council published the Notice on Further Reform of the FX Administration System, noting that an interbank FX market was to be established.

1994

February 15 People's Bank of China (PBC) issued a notice on setting up the China Foreign Exchange Trade System (CFETS), with Xiao Gang as the head.

February 18 State Administration of Foreign Exchange (SAFE) ratified the Constitution of CFETS.

March 1 Trial operation of the FX trading system.

April 4 The CFETS officially began operation. The single managed floating exchange rate of the RMB based on market demand and supply thus formed and published by the central bank.

April 5 HKD/RMB trading added in the interbank FX market.

April 18 The opening ceremony of the CFETS.

December 2 Technology Department of the PBC appraised the electronic trading system as a domestically leading systems engineering feat of rational design, advanced D[1]XV technology, functional completeness and reliable operation. The system was awarded a second place prize for national technology progress.

1995

January 14 Provisional Market Trading Rules of the China Foreign Exchange Trade System issued.

March 1 JPY/RMB trading added in the interbank FX market.

July 3 President Xiao Gang transferred to the PBC as Director-General of the Treasury Department. Pang Jiying became the new head of the CFETS.

August 24 Rules on Remote FX Trading Management in the China Foreign Exchange Trade System issued.

December 4 A conference on preparing for the national interbank funding market held in Shanghai. It was made clear that effective from January 1 1996 all interbank funding by financial institutions must be handled through the network of the national unified interbank lending market.

1996

January 3 Under the leadership of the PBC and with careful preparation, the national interbank funding market began operating through the CFETS system, forming the national unified CHIBOR.

December 2 Provisional Regulations on Interbank FX Market Management issued by the PBC, stating the organization constitution, membership management, and trading behavior of the interbank FX market.

1997

January 27 Notice on Business Management Ascription of the China Foreign Exchange Trade System and Relevant Issues issued by the PBC, stating that the CFETS and the National Interbank Funding Center (NIFC) are two names for the same institution, a sub-institution of the PBC.

June 5 The PBC issued Provisional Regulations for the Interbank Bond Repurchase Business, stipulating that the national unified interbank lending market would handle interbank bond repurchases.

June 13 The PBC stated that from June 16, 1997 the NIFC would handle treasury bond trading.

1998

March 23 The PBC allowed those foreign-funded banks in Pudong, Shanghai approved to handle RMB business to enter the national interbank lending market.

March 24 Provisional Detailed Rules on Remote FX Trading of the China Foreign Exchange Trade System issued.

April 3 The PBC issued the Notice on the Entry of Authorized Branches of Commercial Banks into the National Interbank Lending Market.

July 13 The PBC nominated Pang Jiying as President of the CFETS.

October 12 The PBC allowed insurance companies to enter the national interbank lending market to trade cash bonds.

October 25 The SAFE issued a notice terminating the FX swap business and directing the FX trading business of foreign-funded enterprises into the "FX purchase and sale with banks" system.

October 26 Following the decision of the SAFE to regulate membership of the interbank FX market, the CFETS suspended the trading of non-bank financial institution members.

November 3 The PBC responded to the Provisional Regulations on Interbank Bond Trading Settlement and the Regulations on Interbank Bond Trading.

November 16 President Pang Jiying transferred to the PBC. Ms. Lin Yuli nominated as President of the CFETS.

December 7 The CFETS adjusted the minimum trading amount and the trading unit of the interbank FX market.

December 14 The PBC allowed insurance companies to enter the national interbank lending system.

1999

January 28 The PBC allowed some rural credit unions to enter the national interbank lending market.

April 7 The PBC allowed the China Development Bank and the China Export and Import Bank to enter the national interbank lending market.

April 16 At the 12th Work Conference of Governors of the PBC, an idea on money market development agreed upon, and the development direction of the CFETS set, clearing the way for setting up a national unified electronic trading system as a market intermediary.

August 19 The PBC issued Management Regulations on the Entry of Fund Management Companies and Securities Companies into the Interbank Market.

September 1 Provisional Rules on Trading Floor Onsite Management officially put into play.

September 1 The national interbank trading information system launched.

September 9 The CFETS smoothly passed this sensitive date.

September 11 The CFETS easily passed a joint test on the Y2K issue.

October 25 The CFETS checked and accepted by the PBC for its Y2K engineering.

November 19 The CPC Committee of the PBC approved the establishment of the CPC Committee of the CFETS.

December Termination of the satellite information system.

2000

January 1 The CFETS successfully stepped into the year 2000.

January 3 The CPC Committee of the PBC approved the establishment of a Disciplinary Committee of the CFETS.

January 18 Shenzhen Rural Credit Union entered the interbank FX market as the first of its kind.

January 20 The trading hours of the RMB trading system extended from 3.5 to 4.5 hours.

March 6 The CFETS launched two-way bond quotations in the market.

May 8 The filing and quoting system for small- and medium-sized financial institutions set up based on the trading information system.

June 12 Part of the functionality of www.chinamoney.com.cn, a specialized website designed to provide information services for FX and RMB market trading put into trial operation.

June 19 The PBC approved financial companies to enter the national interbank lending and bond market.

July 24 The CFETS launched a quotation and inquiry system for bond distribution both in the interbank bond trading system and on www.chinamoney.com.cn.

August 14 The annual turnover of the national interbank RMB market exceeded a trillion for the first time, reaching 1.00193 trillion yuan.

October 24 The annual turnover of the interbank bond repo exceeded a trillion yuan.

December 4 The annual turnover of the national interbank lending and bond market exceeded two trillion for the first time, reaching 2.004042 trillion yuan.

December 18 The PBC issued the Notice on System Issues of the China Foreign Exchange Trade System, confirming that the Beijing sub-center would be merged into the Shanghai headquarters with the name of Beijiing Back-up Center.

2001

February The tenth-five-year development strategy of the CFETS completed.

March 29 The PBC issued the Notice on Regulating and Supporting Two-way Quotation Business in the Interbank Bond Market.

April 17 The State Press & Publications Administration approved the publication of CHINAMONEY, a journal sponsored by the CFETS and administrated by the PBC.

June 19 The PBC announced revocation of seventeen branches including the Heilongjiang Branch of the CFETS.

July RMB voice broking launched.

July 2 Net price trading launched both in the bond trading system and on www.chinamoney.com.cn.

August 6 The PBC responded to the "three definitions" plan of the CFETS.

September 20 The Institution Establishment Committee of the Central Government authorized the size of the CFETS as an institution.

September 28 FX2001, a new version of FX trading system, launched.

October 8 Bond yield calculation functionality launched.

October 20 CHINAMONEY first published.

October 31 The PBC announced the establishment of the Shanghai Gold Exchange as an independent system based on the CFETS.

November 2 Publication ceremony of CHINAMONEY journal held in the Great Hall of the People in Beijing.

November 28 Gold trading system put into trial operation.

December 31 Turnover of the interbank FX trading system and the national interbank lending and bond trading system scored record highs, accumulating US$75.03 billion and RMB 4.9 trillion yuan respectively.

2002

February 19 The PBC officially responded to the National Interbank Bond Market Bond Trade Rules and the National Interbank Bond Market Contingency Rules.

April 1 With the official approval of the SAFE, EUR/RMB trading added in the interbank FX market.

April To activate trading and increase market liquidity, the CFETS piloted a market-maker system for EUR/RMB and HKD/RMB trading.

April 3 The PBC announced an access-and-recording system for financial institution's national interbank bond market entry.

April 26 A new version of www.chinamoney.com.cn launched.

June 1 With approval from the SAFE, the CFETS launched a foreign currency deposit broking service for financial institutions.

June 10 The CFETS published interbank bond index.

June 27 The General Administration Department of the PBC issued the Circular on National Interbank Funding Market Entry of Urban Credit Co-operatives.

August 28 With the approval from the PBC, CHINAMONEY expanded from 64 to 72 pages.

December 31 Annual turnover of the interbank FX market broke new record with accumulated volume amounting US$97.19 billion. Turnover of the interbank lending and bond market exceeded 10 trillion yuan, reaching 11.84 trillion yuan.

2003

February 8 With the approval from the SAFE, the CFETS extended service hours for interbank FX trading to 9:30-15:30.

February Logistics reform enacted and the Shanghai Zhengyuan Business Services Center established to provide logistics services for CFETS by market means.

March 10 Daily average trading of bonds on the interbank bond market exceeded 10 billion yuan, reaching 10.22 billion yuan.

March 25 The PBC announced in its publication that bonds issued on the national interbank bond market could be traded.

March 31 The new RMB Electronic Trading System (ET03) formally put into operation, with the F-system and the new www.chinamoney.com.cn simultaneously coming into play.

April 21 The FX trading system and the payment system connected successfully.

June 30 www.chinacp.com.cn, a unified national service platform providing commercial paper (CP) quotations and inquiry functions, debuted.

July 1 Service hours for the interbank lending and bond trading extended to 9:00-12:00 and 13:30-16:30.

July Preparations made to set up a CP market department and a money broking department.

September 28 www.chinamoney.com.cn moved to Beijing Backup Center successfully.

October 1 With the approval from the SAFE, insurance companies allowed to conduct interbank FX deposit business through the CFETS.

October 8 With the approval from the SAFE, two-way trading put forward in the interbank FX market.

November 18 According to the announcement of the PBC, Hong Kong RMB business clearing banks became members of CFETS, extending CFETS services abroad.

December 11-12 Seminar on China's Forex Market Development jointly held by the SAFE and the CFETS.

December 25 The national interbank FX trading system passed the appraisal by the Technology Department of the PBC.

December 31 Annual turnover of the interbank RMB and FX markets reached new heights with accumulated FX market volume amounting to US$151.13 billion and interbank lending and bond market volume amounting to 17.2 trillion yuan.

2004

February 2 Bank of China (Hong Kong) Ltd.( BOCHK ) formally entered the interbank FX market to adjust its position, signaling the extension of the network and services of the CFETS abroad.

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