With a view to broadening the investment channels available for securities firms in securities asset management, protecting the rights and interests of investors, and promoting healthy development of the bond market, pursuant to the Administrative Rules on Trading on the National Inter-bank Bond Market (PBC Decree No. 2 [2000]), Administrative Measures on the Registration, Depository and Settlement of Bonds on the Inter-bank Bond Market (PBC Decree No. 1[2009]) and other relevant rules and regulations, the following issues concerning the opening of bond accounts on the national inter-bank bond market by securities firms for the purpose of conducting securities asset management are announced below:
1. A securities firm operating securities asset management business on the national inter-bank bond market shall open a separate single-purpose bond account for each of its various asset management plans (including collective asset management plans, specific asset management plans and directed asset management plans). The name of the accounts shall be "name of the securities firm??name of the custodian??name of the asset management plan".
2. An asset management plan can trade and settle bonds directly, or through a settlement agent.
3. Where an asset management plan trades and settles bonds directly, the asset custodian shall apply with the China Central Government Securities Depository Trust & Clearing Co., Ltd (hereinafter referred to as CDC) for opening bond accounts in the name of the asset management plan, and the asset manager may apply with the National Inter-bank Funding Center (hereinafter referred to as the Funding Center) for accessing the latter s transaction platform. The following documents are required for application:
1) License for financial business of the asset manager and the asset custodian (copy), and the duplicate of the business license of the aforementioned two entities (copy);
2) Asset management certificate issued by the China Securities Regulatory Commission (copy);
3) Contract of the collective asset management plan or the specific asset management plan (copy), and the relevant agreement on asset custodianship (copy); asset management contract in case of directed asset management (copy) and the agreement on asset custodianship (copy).
4) Approval of the related asset management plan issued by the CSRC (copy) (directed asset management plan is exempt from submission);
5) Other documents required by the Funding Center and the CDC.
The asset manager and the asset custodian shall be responsible for the authenticity, accuracy and integrity of documents they submit, and make sure there is no false presentation, misleading statement or major omissions.
4. Where a management plan transacts and settles bonds through a settlement agent, the asset manager shall sign an agent agreement for bond settlement with the settlement agent, and the related businesses shall be handled mutatis mutandis according to those procedures governing financial institutions with legal person status.
A settlement agent shall apply with the CDC for opening a bond account for the asset management plan. In addition to the documents listed in Article 3 of the Announcement, the agent agreement between the asset manager and the settlement agent shall also be submitted (copy).
5. The CDC and the Funding Center shall, after reviewing the application documents, proceed with the account-opening procedure and connect the applicant with the Funding Center s transaction platform.
6. Where an asset management plan directly trades and settles bonds, the asset custodian shall report information to the People s Bank of China (PBC) Shanghai Head Office for record pursuant to relevant regulations of the PBC Shanghai Head Office Announcement No. 3 [2008]. The documents to be submitted include:
1) Documents required in (1) (2) and (4) of Article 3 of the Announcement
2) Notice on Network Connection issued by the Funding Center (if applicable)
3) Notice on Account Opening issued by the CDC
4) Other documents required by the PBC
7. Where an asset management plan trades and settles bonds through a settlement agent, the agent shall make disclosures for record in accordance with the PBC Shanghai Head Office Announcement No. 3 [2008]. Besides the documents listed in Article 6 of the Announcement, the agent agreement between the asset manager and the settlement agent should also be submitted (copy).
8. Where an asset management plan changes its asset manager, custodian or agent settlement, the parties concerned shall promptly contact the Funding Center and the CDC to go through required procedure for such a change, and, after the completion of the above procedure, report information for disclosure purpose in accordance with the relevant regulations of the PBC Shanghai Head Office Announcement No. 3 [2008].
When an asset management plan is terminated, its asset manager, custodian or settlement agent of an asset management plan shall promptly contact the Funding Center and the CDC to go through the related procedure for account closing, and, after the completion of the procedure, report information for disclosure purpose in accordance with the relevant regulations of the PBC Shanghai Head Office Announcement No. 3 [2008].
9. Except for bond distribution, bond transactions among various bond accounts managed by the same securities firm are prohibited.
10.A securities firm shall manage the single-purpose bond accounts of asset management plans separately, and shall not appropriate the bonds under such accounts it manages.
11.When investing in, trading and settling bonds, an asset manager, an asset custodian or a settlement agent shall strictly abide by the related administrative rules governing the national inter-bank bond market.
12.The Funding Center and the CDC shall formulate related operating procedures in accordance with the Announce, report to the PBC for disclosure purpose, and see to it that the single-purpose bond accounts under an asset management plan are properly opened in accordance with the Announcement.
The Funding Center and the CDC shall monitor the trading and settlement of single-purpose bond accounts under asset management plans on a daily basis, promptly handle anomalies and report such cases to the PBC.
13.The Announcement shall come into force upon the date of its release.
The People s Bank of China
July 16, 2009
