I. Description
This is a service for ICBC’s individual customers to purchase/sell energy via account in RMB or USD. The energy is counted by share so there is no physical energy withdrawn.

II. Target Customers
This product is applicable to personal customers who have the full capacity for civil conduct, possess adequate risk tolerance and have passed the product suitability assessment.

III. Varieties of Product
Account energy transaction varieties include account-based crude oil and account-based natural gas.
According to quotation references, two types of cruel oil can be transacted via account: North America Cruel Oil and International Cruel Oil. The North America Cruel Oil is quoted by referring to the price of light sweet crude oil futures of West Texas Intermediate (WTI) at New York Mercantile Exchange (NYMEX, which is subordinate to CME Group). However, the account-based International Cruel Oil is quoted by referring to the price of Brent cruel oil futures at NYMEX or Intercontinental Exchange (ICE).
For account-based natural gas quotation, refer to the quotation based on the natural gas futures contract at New York Mercantile Exchange (NYMEX, which is subordinate to CME Group).
ICBC may adjust transaction varieties based on business development and customers’ needs, subject to ICBC’s offering.

IV. Trading Currency and Unit
Customer-driven account energy transactions are denominated in RMB or USD, with the latter further divided into USD cash and USD spot exchange.
The quotation unit of crude oil transaction via RMB account is RMB/barrel and the settlement unit is RMB. The funds shall be accurate to the second decimal place (rounded). The quotation unit of natural gas transaction via RMB account is RMB/MBtu (accurate to the third decimal place) and the settlement unit is RMB (accurate to the second decimal place).
The quotation unit of cruel oil transaction via USD account is USD/barrel and the settlement unit is USD. The funds shall be accurate to the second decimal place (rounded). The quotation unit of natural gas transaction via USD account is USD/MBtu (accurate to the third decimal place) and the settlement unit is USD (accurate to the second decimal place).

V. Transaction Types
There are two transaction types, i.e. transactions in which purchases are made before sales and the ones in which sales are made before purchase. The two trading modes shall be independent of each other.
In the first type, the customer purchases energy and then sells it after it is credited to the account. The sale amount shall not exceed the purchase amount. The purchase of energy by this type is called “open a position”, and the sale is called “close a position”.
In the second type, the customer sells first, and then the customer buys energy in part or total of the sales amount. The purchase amount shall not exceed the sale amount. The sale of energy by this type is called “open a position”, and the purchase is called “close a position”.

VI. Transaction Modes
As for transaction means, customers can make real-time transaction or pending order transaction.
i. Real-time trading means the customer buys or sells Account-based Energy instantly at quoted prices.
ii. Pending order transaction refers to that customer places an order and purchase/sell energy at the price of the order when ICBC’s quotation meets its demands. Pending order includes take-profit order, stop-loss order and OCO order. Take-profit order means the order price is better than the real-time quotation, i.e. the customer’s buying order price is lower than ICBC’s current selling price or the customer’s selling order price is higher than ICBC’s current buying price, and the order will be executed when the quoted price reaches the customer’s order price. Stop-loss order means the order price is less favorable than the real-time quotation, i.e. the customer’s selling order price is lower than ICBC’s current buying price or the customer’s buying order price is higher than the ICBC’s current selling price, and the order will be executed when the quoted price reaches the customer’s order price. OCO order means the combination of a take-profit order and a stop-loss order. When one of the two orders is executed, the other order will be automatically canceled.
Customers may submit pending orders pursuant to transaction instructions during trading hours, and effective periods of the pending order include 24 hours, 48 hours, 72 hours, 96 hours and 120 hours. Effective period of the pending order starts from the time that the pending order is handled and doesn’t discriminate trading and non-trading hours. Pending orders that are not settled during the effective period or before continuing product adjustment time point will automatically become invalid. Customers may cancel the unsettled pending orders that remain valid during the trading or non-trading hours within the effective period of the pending orders. After transaction of the pending order is accepted, the funds or energy needed to complete the pending order transaction will be frozen. Before the pending order is executed, canceled or automatically invalidated, frozen funds or energy in the relevant account are unavailable for other purposes.

VII. Transaction Threshold and Minimum Increment
The trading threshold and the minimal increment are 0.1 barrel. Trading threshold of the Account Natural Gas transactions is 1 MBtu; and minimum increment of the transaction quantity is 1 MBtu. ICBC may adjust threshold quantities and minimum increments according to market conditions.
Customers are not subject to trading threshold or minimum increment requirements if the customer sells an account-based energy product in full in a trading sub-account for “buy first, sell later” to close the position, or buys an account-based energy products product in full in a trading sub-account for “sell first, buy later” to close the position. VIII. Product Release and Settlement
According to whether or not the transaction of cruel oil can be made continuously, two types of cruel oil products are available for transaction via account: term-specific products and continuing products. Account-based natural gas is a continuing product.
i. Term-specific products of account-based crude oil
Term-specific products of account-based crude oil are released by installment. Name of every issue adopts the combination of “trading currency” + “trading variety” + “referential contract code (two digits of the year + two digits of the month)”. ICBC publishes information about product of every issue, including the product name, starting date of transaction, ending date of transaction and settlement date through internet banking and other channels. The starting day of transaction is the first transaction day of a certain product, while the closing day is its last transaction day. The settlement day is the day when ICBC handle settlement for customers after the product becomes expiration. Customers can purchase and sell the product during transaction days from the starting day to the ending day. After the product expires (i.e. 24 hours after closing date), customers can’t make transactions any more, but products which have been set to renew upon expiration will be renewed automatically. ICBC will announce the settlement price of a product on the settlement date, and in case that the customer’s trading account still has balance of this issue of product, ICBC will handle fund settlement for the product based on the settlement price at maturity.
The settlement price of account cruel oil transacted in USD is the settlement price of cruel oil futures in the international market at the ending day. The settlement prices are the same for cruel oil transacted in USD cash and USD spot exchange, and for transactions in which purchase is made before sale or sale is made before purchase. The settlement price of North American Cruel Oil transacted via account is the settlement price of light sweet cruel oil futures (WTI) at NYMEX on the futures contract of the recent trading month at the ending day of North American Cruel Oil; while that of International Cruel Oil transacted via account is the settlement price of Brent cruel oil futures at NYMEX or ICE on the futures contract of the recent trading month at the ending day of International Cruel Oil.
The settlement prices of the same account cruel oil transacted in RMB are different due to different transaction types. The settlement price of cruel oil transaction in which purchase is made before sale is calculated according to the settlement price of account cruel oil transacted in USD; while that of cruel oil transaction in sale is made before purchase is calculated according to the bid price and ask price of spot exchange at RMB-USD exchange rate released by ICBC at 23:30 p.m. the day before settlement day.
If related exchanges fail to release the settlement price of cruel oil futures, ICBC will use the settlement price at related exchanges on the next transaction day and the settlement day will be postponed accordingly. If the related exchanges fail to release the settlement price on the next transaction day, ICBC will adopt the quotation of the cruel oil at the ending day to make settlement for customers.
ii. Continuing products of account-based crude oil
There is no expiration date for continuing account cruel oil products. The products are named by “trading currency” + “trading variety”.
When the product is valid, the cruel oil contract term at exchanges referred by the continuing product will be adjusted periodically and the shares of continuing account cruel oil product of customer will also be adjusted synchronously. However, the customer’s total assets will remain unchanged after the adjustment. ICBC will publish the adjustment date in advance through internet banking and mobile banking. At the adjustment day, ICBC will calculate the shares of product that shall be held by the customer after the adjustment and update the position according to the shares held by the customer before the adjustment and prices of shares before and after the adjustment. Meanwhile, ICBC will return the capital that is insufficient for the minimal transaction unit, or release related security deposit. The customer’s assets remain unchanged after the adjustment, and ICBC will not charge for the adjustment. During the adjustment, if the customer’s position amount before the adjustment is inadequate to open in the minimal transaction unit, the customer’s position will be closed as per the price before the adjustment, and meanwhile the fund will be returned or related security deposit will be released. Position before adjustment * price of shares before adjustment = Position after adjustment * price of shares after adjustment + capital returned (security deposit). The prices of shares before and after adjustment shall refer to the settlement price of contracts at exchanges within the day and ICBC exchange rate at the given day. Customers can inquire through internet banking and mobile banking.
In general, ICBC begins to freeze the position of continuing account cruel oil product and adjust shares at 24:00 on the adjustment day. Transactions will be resumed from 9:00 a.m. the next day.
iii. Account-based natural gas
There is no expiration date for account-based natural gas. The account-based natural gas is named by “trading currency” + “trading variety”.
When the product is valid, the natural gas contract term at exchanges referred by the natural gas will be adjusted on a regular basis, and the shares of natural gas of customer will also be adjusted synchronously. However, the customer’s total assets will remain unchanged after the adjustment. ICBC will publish the adjustment date in advance through internet banking and mobile banking. At the adjustment day, ICBC will calculate the shares of product that shall be held by the customer after the adjustment and update the position according to the shares held by the customer before the adjustment and prices of shares before and after the adjustment. Meanwhile, ICBC will return the capital that is insufficient for the minimal transaction unit, or release related security deposit. The customer’s assets remain unchanged after the adjustment and ICBC will not charge for the adjustment. Position before adjustment * price of shares before adjustment = Position after adjustment * price of shares after adjustment + capital returned (security deposit). During the adjustment, if the customer’s position amount before the adjustment is inadequate to open in the minimal transaction unit, the customer’s position will be closed as per the price before the adjustment, and meanwhile the fund will be returned or related security deposit will be released. The prices of shares before and after adjustment shall refer to the settlement price of contracts at exchanges within the day and ICBC exchange rate at the given day. Customers can inquire through internet banking and mobile banking.
In general, ICBC begins to freeze the position of account-based natural gas and adjust shares at 24:00 on the adjustment day. Transactions will be resumed from 9:00 a.m. the next day.

IX. Product roll-over
It is a service provided by ICBC for customers who hold account cruel oil products in account. The system can automatically sell products of the previous installment and purchase products of the next installment according to customer’s orders with the total assets remain unchanged. Products of the same transaction currency and transaction type can be converted from the previous installment to the next installment. The roll-over can’t be made between products of different transaction currencies and transaction types. The roll-over types include real-time roll-over, on-demand roll-over and roll-over upon maturity.
i. Real-time roll-over
Real-time roll-over refers to the transaction that the customer submits the product roll-over instruction during the product’s roll-over period, and ICBC completes the roll-over operation based on the quantity designated by the customer and the real-time roll-over price. The period from starting date of the next issue of product to the expiration date of the last issue of product is the roll-over period of real-time roll-over transactions. The customer may handle real-time roll-over during trading hours of the roll-over period. Real-time roll-over is a one-off and real-time operation, and the service can’t be booked. ICBC executes a roll-over transaction when the customer submits an instruction.
ii. On-demand roll-over
The customer shall make an appointment and select the roll-over time-point from fixed time-points provided by ICBC. ICBC will handle the roll-over according to the roll-over price and means selected by the customer at the roll-over time-point. ICBC will freeze the quantity of products of the previous installment held by the customer 25 minutes prior to the fixed time-point appointed by the customer. The products will generally be frozen for over 30 minutes until the end of roll-over. The customer can open or close on-demand roll-over at any time (including the non-transaction period before the expiration of product of the previous installment) except for the freezing period. Once the customer opens it, the on-demand roll-over will be in effect for a long term until the customer closes it.
On-demand roll-over is divided two types: roll-over with fixed amount and roll-over with fixed quantity. In the first type, all of the funds earned by selling products of the previous installment (or security deposit released) will be used to purchase products of the next installment as many as possible (the customer shall first supplement the security deposit required for transaction in which sales are made before purchase) and the funds (or security deposit) which are insufficient for 0.1 barrel will be returned to the customer’s fund account (or security deposit account). In the second type, the customer will purchase products of the next installment with the quantity equal to that of products of the previous installment. If the funds earned by selling all products of the previous installment (or security deposit released) is sufficient to purchase the same quantity of products of the next installment (the customer shall supplement the security deposit required for transaction in which sales are made before purchase), the surplus funds (or security deposit) will be returned to the customer’s fund account (or security deposit account). If the funds earned by selling all products of the previous installment (or security deposit released) and the available balance of the customer’s fund account (or security deposit account) are insufficient to purchase the same quantity of products of the next installment, the funds earned by selling all products of the previous installment (or security deposit released) will be used to purchase products of the next installment as many as possible (the customer shall supplement the security deposit required for transaction in which sales are made before purchase). The funds (or security deposit) insufficient for 0.1 barrel shall be returned to the customer’s fund account (or security deposit account).
iii. Roll-over upon maturity
The customer chooses to make roll-over upon the maturity of products of the previous installment. ICBC will conduct the roll-over, according to the settlement price of products of the previous installment and that of products of the next installment, by means selected by the customer on the next day after the products expire. ICBC will freeze the quantity of products of the previous installment held by the customer at 22:05 p.m. at the ending day. The products will generally be frozen until or after 7:05 a.m. the next day when the roll-over is finished. The customer can open or close on-demand roll-over at any time (including the non-transaction period before the maturity of products of the previous installment) except for the freezing period. Once the customer opens it, the on-demand roll-over will be in effect for a long term until the customer closes it.
Roll-over upon maturity includes roll-over with fixed amount and roll-over with fixed quantity. Specific details are identical to on-demand roll-over.

X. Product Price
ICBC will quote the customer by referring to the price of energy in the international market, RMB exchange rate in China and market liquidity. Necessary adjustments will also be made depending on market conditions.
The prices quoted include the bank’s buying rate and selling rate. ICBC’s buying price is the quoted price at which ICBC purchases energy from customers (or customers sell energy to ICBC). ICBC’s selling price is the quoted price at which ICBC sells energy to customers (or customers purchase energy from ICBC).

XI. Service Channels and Hours
Transaction hours of account energy are as follows:
i. Outlets:
Monday-Friday: trading hours published by the outlets that have launched this service.
ii. E-banking channels
Monday: from 09:00 a.m. to 24:00 p.m.
From Tuesday to Friday: from 00:00 a.m. to 04:00 a.m.; from 09:00 a.m. to 24:00 p.m.
Saturday: 00:00 a.m. to 04:00 a.m.
ICBC may suspend all or part of account energy transactions due to vocations, public holidays and non-working days adjusted according to national regulations in major international markets; or unforeseeable, unavoidable and insurmountable force majeure including natural disasters and wars; or international political and economic events; or accidents such as communication failure, system failure, power off and transaction suspension in markets; or financial crisis and the change of national policies; or the fact that the net amount of account energy has reached the upper limit or lower limit; and shall, where possible, make a prior or timely announcement to customers on its official website (http://www.icbc.com.cn) or through other channels. During suspension, real-time trading and pending orders cannot be processed, pending orders that have become effective cannot be executed, but the validity period of pending orders is not affected.

XII. Account Management
To apply for the service, the customer shall take ICBC personal multi-currency debit card as the fund account. After the customer finished application, ICBC will automatically open the account for energy transaction for the customer. When the customer makes energy transaction in which sale is made before purchase for the first time and pays for security deposit, ICBC will automatically open the security deposit account for the customer.
i. Fund account
The fund account is used to check the receipt and payment of the transaction funds for account energy. The USD cash and USD spot exchange in the fund account can’t be converted to each other by transaction. The account energy which is purchased in USD cash can only be sold in USD cash, while that purchased in USD spot exchange can only be sold in USD spot exchange. ICBC’s provisions on account management are applicable to the fund account.
ii. Trading account
Trading account is used to check the sale and purchase quantity of account energy. The customer shall establish independent sub-accounts for account energy transaction in USD cash, USD spot exchange and RMB. Account energy in the three sub-accounts don’t accumulate or offset each other The customer shall establish independent sub-accounts for energy transaction in which purchase is made before sale and for transaction in which sale is made before purchase. The quantities of account energy in the two sub-accounts don’t accumulate or offset each other.
iii. Security deposit account
Security deposit account is used for calculating receipt and disbursement of the security deposit for “sell first, buy later” as well as its profit and loss. Security deposit account is divided into RMB security deposit sub-account, USD cash security deposit sub-account and USD spot exchange security deposit sub-account. These three types of sub-accounts are mutually independent; and security deposits on these sub-accounts don’t accumulate or offset each other.
In one business area of ICBC (a branch in a municipality directly under the Central Government, the banking department of a provincial branch, a branch in a city divided into districts, autonomous prefecture or league or a branch in one of selected cities that are not divided into districts), customers shall designate one fund account only and open only one trading account and one security deposit account. But the customer may adjust the local personal multi-currency debit card corresponding to the fund account.

XIII. Interest Accrual and Charges
Funds on the customer’s fund account accrue interests based on requirements of the government regulatory departments and the demand deposit rate and interest accrual method published by ICBC; balance of account-based energy on the customer’s trading accounts does not accrue interests nor provide guarantee for other debts. Funds on the customer’s security deposit account do not accrue interests, and the customer may not directly withdraw cash from, apply for the certificate of deposits or provide guarantee for other debts with funds on the security deposit account.
ICBC does not charge customers any fee for buying or selling account-based energy at quoted prices.

XIV. Transaction Limits
Pursuant to the national regulatory requirements, ICBC sets upper and lower limits on net total balance of account-based energy transactions on RMB accounts. Net total balance refers to the balance of account-based energy, netting the positive and negative positions, on all of the accounts held by the customer handling RMB account-based energy transactions.
When net total balance reaches the upper limit, the customer will be prohibited from handling real-time buying or submitting new pending buying order in the “buy first, sell later” transactions, but the customer may continue to handle real-time liquidation of long positions or submit the pending orders for liquidation of long positions in the “sell first, buy later” transactions. When the net total balance falls below the upper limit, the customer may continue to handle real-time buying or submit new pending buying order in the “buy first, sell later” transactions.
When net total balance reaches the lower limit, the customer will be prohibited from handling real-time sell trading or submitting new pending selling orders in the “sell first, buy later” transactions, but the customer may handle real-time liquidation of short positions or submit pending orders for liquidation of short positions in the “buy first, sell later” transactions. After the net amount of transaction restores to the level within the limit, customers can resume the operation of closing a position in real-time or placing new sale orders for transaction in which sale is made before purchase.

XV. Risk Disclosure
Customers shall fully know and understand possible risks before applying for account-based energy transactions. Below are a list of main risks and objective analysis of risk factors made by ICBC according to current market conditions and characteristics of account-based energy products. It is not a complete list of risks in account-based energy transactions and none of the information below represents any market forecasts of ICBC.
i. Policy risk: account-based energy is the product designed according to relevant laws and regulations currently in force. Any changes in the state’s macro policies, laws or regulations may affect normal account-based energy trading activities of customers and discontinue the business, which will cause losses to customers.
ii. Market risk: As affected by the world’s relevant energy markets, any unfavorable movements of account-based energy transaction prices may cause losses to customers. In the circumstance that the customer first sells and then buys energy, wild fluctuation of the market prices may result in shortage of the customer’s security deposits and further trigger forced liquidation of the balance that the customer holds from the “sell first, buy later” transactions.
iii. Liquidity risk: Customers who hold account-based energy may face the risk of illiquid account-based energy when they have any demand for funding during non-trading hours; the expansion of bid-ask spread of ICBC due to market liquidity factors may put customers at a disadvantaged liquidity position.
iv. Operational risk: Customers may suffer unnecessary losses due to leakage of identity information, improper use of identity tools or operational errors.
v. Force majeure and emergency risk: Customers may suffer losses due to natural disasters, wars or any other unforeseeable, unavoidable or unconquerable events or international political, economic or other emergencies or communication interruption, system faults, power failure, market suspension or other unexpected events or financial crisis or national policy changes, which may affect normal account-based energy trading activities of customers.
vi. Other contingent risks: Due to government regulatory policies, ICBC sets upper and lower limits on the net total balance of account-based energy transactions on the RMB accounts, which may impact the normal RMB account-based energy transactions of customers.

XVI. Supplementary Rules
Unless otherwise specifically stated, times and dates herein refer to Beijing Time.
This Product introduction is formulated and revised by ICBC. ICBC will give a prior notice of any revision of this Product introduction on its official website. Any customers who disagree with such revision during the notice period may raise their queries or comments through telephone banking 95588 or cancel themselves from account-based energy transactions before the new Product introduction becomes effective. Customers failing to cancel upon expiration of the notice period or continue relevant operations after the notice period shall be deemed as acceptance of the revised Product introduction.

Note: the information provided on the page is for reference only. Specific businesses are subject to announcements and regulations of local outlets.