I. Business Description
During the RMB bond borrowing & lending business, the bond holders lend the RMB bonds they own to the licensed institutions with bond demand based on the business needs, charge a certain sum of fees, and take back the bonds upon maturity. Fees of the bond borrowing and lending transactions are determined by both parties through negotiation based on the market terms, and the bond lenders are entitled to interests receivable on the related bonds.
Underlying bonds in the RMB bond borrowing & lending business include mainly the RMB-denominated bonds that are freely circulated in the Chinese main bond markets (including the national inter-bank bond market, Shanghai Stock Exchange and Shenzhen Stock Exchange).
The bond borrowing and lending business helps the bond-lenders to vitalize their existing RMB bond assets, raise the yield of bond investment business, and optimize the income structure of investment business. For the bond borrowers, it is able to meet the business operation needs in special circumstance.

II. Target Customers
Members of the underwriting syndicates of government bonds issued by the Ministry of Finance, first-grade traders in the open market of the People’s Bank of China, members of the underwriting syndicate of bonds issued by policy banks and financial institutions that maintain a sound cooperative relation with ICBC.

III. Features
1. Both parties of the bond borrowing and lending transactions shall be financial institutions and both shall have the qualification for participation in the inter-bank market transactions.
2. The bond borrowing and lending transactions are bilateral transactions. The market participants can either lend or borrow bonds.
3. The rate of fees shall be determined based on the actual conditions of the borrowing and lending transactions in a case by case manner.
4. The term of bond borrowing and lending is flexible and shall be freely determined by both parties subject to a maximum term of no longer than 1 year.
5. Should any interests are paid to the lend bonds during the period of bond borrowing and lending, the interest income shall be owned by the bond lenders.
6. Upon maturity of the bond borrowing and lending transaction, the bond borrowers shall in principle return the bonds to the bond lenders.

IV. Features and Advantages
1. ICBC ranks the top among the domestic institutions in terms of the scale of bond assets, and has a large variety of bond types. It is able to fully meet the diverse bond borrowing needs of customers.
2. As an important participant in the Chinese bond market, ICBC has maintained active bond transactions, established a team of professional and excellent traders, and accumulated rich experiences in the bond business. It owns a leading position in the RMB bond market among the Chinese peers.

V. Price
ICBC and the customers shall negotiate the prices in a case by case manner when renewing the bond borrowing and lending transactions.
VI. Service Channel and Time
The bond borrowing and lending transactions can be completed through the transaction system of the inter-bank lending center. The transactions shall be handled during the trade time specified by the inter-bank lending center (i.e. 9:00-12:00 a.m. and 13:30-16:30 p.m., Beijing time, except on the public holidays of China) and the office hours of ICBC.

VII. Sign-up
1. The customers shall indicate their intentions of carrying out the RMB bond borrowing & lending transactions to ICBC. Upon examination and approval of ICBC, the transaction partners shall sign the Master Agreements of Industrial and Commercial Bank of China Limited for the RMB Bond Borrowing & Lending Transactions.
2. The bond borrowing and lending transactions shall be completed via the local currency transaction system of the inter-bank lending center.
VIII. Definitions
1. Inter-bank bond market: the largest bond circulation and trade market in China and an OTC market. Types of bonds circulated in the market include: treasury bonds, central bank bills, policy financial bonds, financial bonds, subordinate debts, ultra-short-term financing bonds, short-term financing bonds, MTNs and corporate bonds etc.
2. Exchange markets: is the exchange-traded market. Types of bonds circulated in the market mainly include treasury bonds, enterprise bonds and corporate bonds. The exchange markets mainly include Shanghai Stock Exchange and Shenzhen Stock Exchange.

Note: Information herein is for reference only. Please refer to announcements and regulations of local branches of ICBC for further details. ICBC retains the ultimate interpretation rights.