The People's Bank of China (“PBC”) Shanghai Head Office; all regional branches and operations offices of the PBC; all central sub-branches of the PBC in capital cities of provinces (or autonomous regions) and sub-provincial cities; the State Administration of Foreign Exchange (“SAFE”); all branches and foreign exchange administrative offices of the SAFE in all provinces, autonomous regions and municipalities directly under the Central Government; and all branches of the SAFE in sub-provincial cities:

In accordance with the Measures for the Administration of the Foreign Exchange Settlement and Sale Services of Banks (Order No. 2 [2014], PBC), for the purpose of facilitating the foreign exchange settlement and sale services of foreign-funded banks that have not launched RMB services, you are hereby notified of the relevant issues as follows:

I. A foreign-funded bank which has not been granted approval to launch RMB services (hereinafter referred to as a “foreign-funded bank”) may, after obtaining the qualification for providing spot foreign exchange settlement and sale services with the approval of the SAFE branch or sub-branch, apply to the local PBC branch office for opening a special RMB account for foreign exchange settlement and sale based on the affirmative official reply documents, and may, as needed for its business, open a special RMB account for foreign exchange settlement and sale with a local commercial bank based on the affirmative official reply documents.

II. Where a foreign-funded bank opens a special RMB account for foreign exchange settlement and sale with both the PBC and a commercial bank, RMB funds may be transferred freely between the two accounts. RMB cash deposits and withdrawals are allowed in the special RMB account for foreign exchange settlement and sale opened at the commercial bank.

III. The scope of receipts and expenditures of a special RMB account for foreign exchange settlement and sale is as follows:

Receipts: RMB funds obtained from the sale of the bank's foreign exchange capital or working capital; RMB funds transferred in or RMB cash deposited by clients for purchase of foreign exchange; and RMB funds obtained from the sale of foreign exchange in the interbank foreign exchange market.

Expenditures: RMB funds transferred out or RMB cash withdrawn by clients after settlement of foreign exchange; RMB funds required for the purchase of foreign exchange in the interbank foreign exchange market; and RMB funds obtained from the sale of the bank's foreign exchange capital or working capital and transferred into the bank's general RMB account.

IV. Special RMB accounts for foreign exchange settlement and sale shall be subject to balance management. The account balance shall not exceed 20% of the bank's registered foreign exchange capital or working capital, and the bank may exchange RMB for a foreign currency of its own accord to the extent of the allowed balance.

V. A foreign-funded bank shall use a special RMB account for foreign exchange settlement and sale in strict accordance with relevant provisions, and manage it separately from its other RMB accounts such as daily expense accounts.

VI. After a foreign-funded bank is granted approval to launch RMB services and its synthetic position limit for foreign exchange settlement and sale is approved, it shall, based on the approval documents of the SAFE branch or sub-branch, apply in a timely manner to the local PBC branch office for closing the special RMB account for foreign exchange settlement and sale opened with the branch office, and the funds in the account shall be transferred into the RMB reserve account opened by the foreign-funded bank with the PBC.

VII. This Notice shall come into force on the date of issuance, upon which the Notice by the People's Bank of China of Issuing the Detailed Rules for the Implementation of the Foreign Exchange Settlement, Sale and Payment Services of Foreign-Funded Banks (No. 202 [1996], PBC), the Notice by the People's Bank of China of Issues Concerning Foreign-Funded Banks' Opening Special RMB Cash Accounts for Foreign Exchange Settlement and Sale (No. 180 [2003], PBC), and the Notice by the People's Bank of China of Issues Concerning the Special RMB Accounts for Foreign Exchange Settlement and Sale (No. 292 [2005], PBC) shall be repealed.

Immediately after receipt of this Notice, all SAFE branches shall forward it to foreign-funded banks within their respective jurisdictions.

The People's Bank of China

January 13, 2015