Zheng Jian Fa  [2009] No. 12

All listed commercial banks,  the  Shanghai   Stock Exchange and  the  Shenzhen Stock Exchange, China Securities Depository & Clearing Corp., Ltd.   and China Government Securities Depository Trust & Clearing Co., Ltd.,

To  implement the requirements of the relevant policies and measures for promoting the economic development by finance as  deployed  by the executive meeting of the State Council,  to  actively develop the bond market and promot e  the enterprise financing, the China  Securities  Regulatory Commission  (CSRC)   and  the China Banking Regulatory Commission  (CBRC)  hereby notif y  the following issues concerning the listed commercial banks’ participation in bond trading on stock exchanges:

1.  A commercial bank which has already been listed on a stock exchange may apply to the stock exchange for engaging in bond trading upon the approval of the CBRC.

2. During the pilot period, a commercial bank may engage in  spot  trading of such bonds as treasury bonds, enterprise bonds and corporate bonds, as well as trading  of other products  approved by the relevant regulatory  authority,  on the fixed income platform of the stock exchange.

3. To participate in bond trading on a stock exchange, a commercial bank must abide by the relevant supervisory provisions of the CBRC and  the  CSRC  as well as the  business  rules of the stock exchanges and that of relevant securities  depository and clearing   corporation , and submit such materials as statement according to requirements.

4. A stock exchange shall, in line with relevant business rules, provide special seats of bonds and corresponding technical support to relevant business banks, and provide a safe and convenient business environment for the bond trading activities of  commercial  banks on stock exchanges.  A  commercial bank can only use its own bank account for bond trading in its special seat of bonds. During the pilot period, the r egistration,  c ustody and  s ettlement  methods  of  b onds  remain unchanged.

5. A stock exchange and relevant securities depositary and clearing corporation shall, according to the requirements of the CBRC and the CSRC, provide reports on such business activities of relevant commercial banks on stock exchange as trading and settlement.

6. The CBRC and the CSRC will establish a joint regulatory system to supervise the bond trading of commercial banks on stock exchanges.

7. After gaining experience from the pilot, the CBRC and the CSRC will, based on the improvement of relevant systems, gradually add more commercial banks to participate in the bond trading on stock exchanges and expand the scope of bond business engaged by commercial banks at stock exchanges.

C hina Securities Regulatory Commission

China Bank Regulatory Commission

January 19, 2009