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Investment and Issuance of RMB Interbank Certificate of Deposit

I. Description
The investment of RMB interbank certificate of deposit refers to the business where ICBC invests in book-entry time deposit certificates issued by deposit-taking banking financial institution legal persons in the interbank bond market. The deposit-taking financial institutions include policy banks, commercial banks, rural cooperative financial institutions, and other financial institutions recognized by the People’s Bank of China.
The issuance of RMB interbank certificate of deposit refers to the business where ICBC issues book-entry time deposit certificates through the interbank bond market in order to enhance the liquidity management and improve the asset liability structure.

II. Functional Features
1. The issuing party of certificate of deposit (CD) is a deposit-taking banking financial institution.
2. The issuance information is open and transparent. The issuing bank of interbank CDs must disclose information to the market through public channels in accordance with regulatory requirements.
3. The product term is flexible. The term of interbank CD includes one month, three months, six months, nine months and one year. The interest can be calculated at fixed or floating rates, with reference to SHIBOR for the same term.

III. ICBC Advantages
ICBC has strong financial strength, professional trading teams, rich experience and expertise in RMB investment, advanced information system support and institutional guarantee, a system easy to realize intensive capital operation and a flexible pricing mechanism.

IV. Operation Guide
i. Investments process of interbank CD
The interbank customers negotiate with ICBC and determine the TRADING intention (including the amount, time limit, price, etc. of the proposed CDs to be issued or traded). ICBC’s transaction personnel will invest in the CDs or trade them in the secondary market on the CD issuance date after getting the approval of authorized person.
ii. Issuance process of interbank CD
1. ICBC determines the issuance time and issuance plan and makes preparations.
2. ICBC publishes the issuance documents in the interbank market according to the specific issuance plan and completes the issuance of interbank CD.
3. On the payment date, the investment institution pays the funds raised through the issuance of interbank CD to the designated bank account of ICBC. ICBC confirms the account and the custody institution completes the confirmation of the creditor’s rights and debts in a timely manner.
4. During the existence of the CD, ICBC fulfills its obligation of information disclosure in accordance with regulatory requirements. On the interest payment date and redemption date of interbank CDs, ICBC transfers the funds to the account of investment institutions.

V. Risk Prompt
The level of interest rate of CD issuance and trade is affected by many factors such as macroeconomic policies and changes in the operation of the money market. Customers should fully recognize the risks that this business may involve.

Note: The information given on this page is for reference only. See the announcements and rules of local outlets for details.

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