Indivisiual customers of Hong Kong, Macao and Taiwan with Mainland Travel Permit and Taiwan Compatriot Certificate will be able to apply for brokerage and deferred settlement of spot precious metals at the Shanghai Gold Exchange (deferred settlement of precious metals) through ICBC's internet banking, mobile banking and outlets from April 21, 2014.

On behalf of the Shanghai Gold Exchange, ICBC offers precious metal trading on a deferred settlement basis, including gold deferred settlement contract (Au (T+D)), silver deferred settlement contract (Ag (T+D)) and Mini gold deferred settlement contract (mAu (T+D)). The service introduces margin and short selling, which means more choices for the investors.

I. Introduction
The deferred transactions of precious metals are deferred settlement contracts traded in Shanghai Gold Exchange, including Au (T+D), Ag (T+D) and mAu (T+D). Deferred settlement of precious metals is traded on margin. The customers have the alternatives to settle on the trading day or at a later date. The deferred settlement service also involves a deferred compensation michanism (backwardation) to balance the supply and demand.

II. Features
1. Margin: Using the leverage of margin trading, investors will improve their fund use efficiency and receive higher investment return.
2. Two-way investment: The short selling mechanism enables investors to make profit, either "buy first, sell later" when the price is rising, or "sell first, buy later" when the price is falling.
3. Safe and convenient trading channels: Investors can open a trading account with the Shanghai Gold Exchange through ICBC's internet banking, mobile banking or outlets and directly participate in deferred settlement of precious metals through ICBC's internet banking, mobile banking, telephone banking, IPAD internet banking and high-end trading terminal.
4. Extended trading hours: The Shanghai Gold Exchange offers day session and night session. The customers can earn a bid-ask spread anytime under T+0 contracts settled on the day.
5. Transparent prices: The deferred prices of precious metals are highly linked to international precious metal prices, and the trade-matching system has made the prices highly transparent.

III. Instructions
1. Types of contract
Au (T+D), Ag(T+D), and mAu (T+D)
2. Margin ratio
ICBC determines the margin ratios as required by the Shanghai Gold Exchange and market conditions. Adjustment will be made if necessary. For further information, please logon ICBC website for tips of precious metal trading, call the 95588 telephone banking hotline or consult the local ICBC outlets.
3. Quotes
The unit of quotes for Au (T+D) contract is RMB /gram, the tick size is RMB0.01 and one lot. One lot represents a standard weight of 1kg of gold.
The unit of quotes for Au (T+D) contract is RMB /kg, the tick size is RMB1 and one lot. One lot represents a standard weight of 1kg of silver.
The unit of quotes for mAu (T+D) contract is RMB /gram, the tick size is RMB0.01 and one lot. One lot represents a standard weight of 0.1kg of mini gold.
4. Fund clearing
The deferred settlement of precious metals is conducted on a centralized basis by net amount at two levels in the principle of zero liability clearing. Customers shall timely replenish the margin when the margin balance is less than the minimum trading or mandatory liquidation margin ratio stipulated by ICBC; if the margin is not timely replenished, ICBC will make up the margin through mandatory liquidation.
5. Business handling guide
(1) Process
Open and register a new account -> sign the deferred settlement agreement -> check market prices and place order -> declare settlement -> physical delivery (only Au (T+D) contract and mAu (T+D) contract support physical delivery).
(2) Account opening
A. Customers who have not opened a brokerage account with ICBC
Customers shall register a brokerage account through internet banking, mobile banking or IPAD internet banking, sign the agreement after passing the risk assessment, and start trading two days after the trade date.
B. Customers who have opened a brokerage account with ICBC
Customers shall sign the agreement after passing the risk assessment through internet banking, mobile banking or IPAD internet banking, and start trading on the trade date.
C. Customers who have opened a brokerage account with other banks
Customers shall cancel the brokerage relation with other banks, bind their gold customer code to Money Link Card, e-Age card or Elite Club Account Card (account opening fee is not required for binding the customer code to the account.) through internet banking, mobile banking or IPAD internet banking, sign the agreement after passing the risk assessment, and start trading two days after the trade date.
(3) Trading channels
Internet banking: After login, go to "Brokerage & deferred settlement of physical precious metal" under "Online precious metal" to buy/sell gold and silver under Au (T+D), Ag (T+D) and mAu (T+D) contracts.
iPad internet banking: After login, go to "Brokerage & deferred settlement of physical precious metal" under "Precious metal" to buy/sell gold and silver under Au (T+D), Ag (T+D) and mAu (T+D) contracts.
Mobile banking: After login, go to "Brokerage & deferred settlement of physical precious metal" under "Precious metal" to buy/sell gold and silver under Au (T+D), Ag (T+D) and mAu (T+D) contracts.
High-end trading terminal: Download "high-end trading terminal" through internet banking, install the software, enter the account number and password to login the system to buy/sell gold and silver under Au (T+D), Ag (T+D) and mAu (T+D) contracts.
Telephone banking: Follow voice instructions.
6. Charges
(1) Account opening fee
Account opening fee: RMB60 per account
(Some of the branches do not charge account opening fee. Please go to the local outlets for detailed information).
(2) Trading fee
The trading fee is no more than 0.08% of the contract value and customers will have a discount according to their star level and precious metal investor club level. For detailed information, please call 95588 telephone banking hotline or consult the local outlets. The ICBC will adjust the trading fee according to the notice of the Shanghai Gold Exchange and market conditions. For detailed information, please log on ICBC website for tips on precious metal trading.
(3) Other expenses
ICBC will charge other expenses on behalf of the Shanghai Gold Exchange. The charging standard will be adjusted according to the notice of the Shanghai Gold Exchange.
7. Trading hours
The trading hours of the Shanghai Gold Exchange (Chinese Version)

IV. Risk prompt
The leverage function of deferred settlement of precious metals on margin may expose investors to the risk of losing their principal while creating generous returns. The investors are advised to carefully read the notices of the Shanghai Gold Exchange and ICBC, have a good understanding of the trading rules and become fully aware of the market price risk and the leverage risk, carefully analyze their risk tolerance, get familiar with the products, and make informed decisions before conducting the transactions.

V. Notes
1. The type of deferred settlement of precious metals, trading hours, trading unit and delivery unit shall be subject to the notice of the Shanghai Gold Exchange. The ICBC will make adjustments according to the changes in the requirements of the Shanghai Gold Exchange. (For detailed information, please log on the websites of Shanghai Gold Exchange and ICBC)
2. According to the Shanghai Gold Exchange, the physical gold taken by customers shall not be returned into the designated warehouse of the Shanghai Gold Exchange.
3. ICBC does not provide physical silver delivery to individual customers right now.