In an effort to promote further opening-up of the Chinese bond market, the

People’s Bank of China and the State Administration of Foreign Exchange jointly

issued a notice on improving fund management rules for panda bond issuance on

December 2, which will facilitate the financing of overseas institutions in the

Chinese bond market.

According to the Notice of the People’s Bank of China and the

State Administration of Foreign Exchange on Matters Related to Fund Management

for Bonds Issued by Overseas Institutions in China, management rules for

panda bonds, including those concerning the opening of accounts and the

registration, remittance, use and statistical monitoring of funds, will be

unified in China's interbank bond market and exchange-traded bond market. At

the same time, the process of registration and account opening will be

standardized. Panda bonds shall be registered in a relevant bank before

issuance. As for installment bonds, registration can be filed in the

first-installment issuance, and only issuance information needed to be

submitted to the bank during the following bond sales, with one special account

allowed to be used for all the installments.