People's Bank of China and State Administration of Foreign Exchange

“ The foreign exchange derivative exposure shall be properly relevant to the foreign exchange risk exposure that serves as the transaction basis under domestic securities investment. The foreign exchange derivatives position held by an RMB qualified investor shall be no more than the RMB asset size corresponding to the domestic securities investment under the custody of the custodian at the end of the previous month (excluding RMB deposit assets in special deposit accounts, the same below) . ”

“ In case that an RMB qualified investor fails to effectively use the investment quota within one year following the day the quota is filed or approved, the SAFE shall have the right to recover the investment quota not yet used, in all or in part. ”

“ The special deposit account for derivatives transactions shall be opened with the futures margin depository bank, custodians or domestic financial institutions (foreign exchange derivatives business agencies) who are qualified for handling derivatives business of RMB against foreign exchange for customers (foreign exchange derivatives business) or other relevant institutions based on the investment type and relevant settlement rules. ”