In order to further facilitate foreign institutional investors in investing in China Inter-Bank bond market, in accordance with the requirements of the People's Bank of China, the following matters relating to the extension of the settlement cycle of foreigninstitutional investors' bond trading are announced:

Foreigninstitutional investors as mentioned in this announcement, refers to all types of foreign institutional investors qualifying the requirements of the People's Bank of China NoticeNo. 3〔2016〕(Notice on Further Improving the Matters Relating to the Investment of Foreign Institutional Investors in the Inter-Bank Bond Market) , Yinfa〔2015〕No. 220 (Notice on Matters Relating to the Investment of Foreign Central Banks, International Financial Organizations and Sovereign Wealth Funds in the Inter-Bank Market), and other relevant documents.

The term ‘Settlement Cycle’ as mentioned in this notice refers to the number of working days between the trading date and the settlement date.

Threerules on extending the settlement cycle of bond trading are as follows:

(I) the settlement cycle for bond trading of foreign institutional investors maybe T + 0, T + 1, T + 2 or T + 3;

(II) trades to be covered by the extension of the settlement cycle: If either of the two parties in the settlement of a bond trading is a foreign institutional investor, the settlement cycle of T + 3 may be chosen;

(III) the scope of settlement service applicable to the extension of the settlement cycle: cash bond, pledged repo, outright repo and bondlending.

National Interbank Funding Center

China Central Depository & Clearing Co., Ltd.

Shanghai Clearing House