1.Product Overview
According to the "Notice on the Implementation of the Southbound Bond Market Connect between Mainland China and Hong Kong" and the "Notice on the Implementation of the Southbound Bond Market Connect between Mainland China and Hong Kong" issued by the People's Bank of China, the Southbound Bond Connect (hereinafter referred to as "Southbound Connect") refers to a mechanism that allows mainland investors to invest in bonds traded in the Hong Kong bond market through connectivity in bond trading, custody, and settlement between relevant mainland and Hong Kong infrastructure institutions. Mainland investors that meet the requirements set by the People's Bank of China can use the Southbound Connect to invest in all types of bonds issued overseas and traded in the Hong Kong bond market.

2.Target Clients
The target clients for the Southbound Connect include 41 bank-type financial institutions that are primary dealers in the People's Bank of China's open market operations as of 2020 (excluding non-bank financial institutions and rural financial institutions). Qualified Domestic Institutional Investors (QDII) and RMB Qualified Domestic Institutional Investors (RQDII) can also invest in overseas bonds through the Southbound Connect. Additionally, securities firms approved by the People's Bank of China may use proprietary funds to participate in Southbound Connect investments.

3.Services Provided
1.Open domestic and overseas custody accounts.
2.Safeguard client assets.
3.Complete clients' overseas investment securities delivery and fund settlement.
4.Manage accounting records for clients' investment activities.
5.Valuate clients' investment assets.
6.Provide equity information and financial market news related to clients' held securities.
7.Monitor investments based on client portfolios and regulatory requirements.
8.Convert currencies and provide foreign exchange services.
9.Track income rights in real-time to ensure timely receipt.
10.Provide regular investment and settlement reports to clients.
11.Securely store records related to fund transfers, transactions, and investments.
12.Deliver other services as required by regulatory authorities.

4.Service Advantages
ICBC is the largest custodian bank in China, consistently holding the top market share in asset custody. ICBC is deeply involved in the Southbound Connect project and is one of the first mainland custodian and clearing banks for Southbound Connect. With precise policy insights and extensive experience in cross-border custody services, ICBC offers integrated cross-border custody services for both domestic and international institutions.

5.Contact Information
For assistance with related services, please contact the Global Asset Custody Division of the Asset Custody Department at the Industrial and Commercial Bank of China (ICBC):
Contact Person: Xiaomeng Liu
Tel: +86 10 6610 5692
E-mail: xiaomeng.liu@icbc.com.cn