Article 3

Article 4

Article 5

Article 6deposits from the general public and policy banks.These Measures shall apply to the derivatives business conducted by aduly established financial asset management company, trust company, corporate group finance companies, financial leasingcompany, or other bankingfinancial institutions established under the approval of China Banking Regulatory Commission (“CBRC”).For the purpose of these Measures, “derivatives” means a kind of financial contract, the value of which isdetermined on the basis of one or more underlying assets or indices. The basic types of such contracts include forwards, futures, swaps(exchanges) and options. Derivative products also include hybridfinancial instruments having one or more features of forwards, futures, swaps and options.For the purpose of these Measures, derivativestrading business conducted by banking financial institutions can be classified into two types based on the purposes of the transaction:(1)“Derivative transactions for hedging purposes” are transactions initiated by a banking financial institution and conducted by it for hedging the credit, market or liquidity risks in respect of its own assets and liabilities. This type of transaction issubject to the accounting rules for hedging and managed asa banking book item. (2)“Derivative transactions for non-hedging purposes” are derivative transactions other than for hedging purposes, andinclude:transactions for clients which are initiatedby clients and provided by a banking financial institutionto meet the needs of clients, andtransactions conducted by such banking financial institution to hedge the risks in relation to the aforementionedtransactions;transactions with other market participants based on applicable pricesin the continuedprovision of bid and offer pricesby a banking financial institution in discharge of its market-making obligations; and transactions initiatedand conducted by a banking financial institution, using its own funds, relying on its judgment ofmarkettrends and for the purpose of making profit.This type of transaction is managed as a trading book item.For the purpose of these Measures, “clients” meanindividual and institutional clients other than financial institutions. Wealth managementproducts sold to clients by a banking financial institution, which have the characteristicsof derivatives, shall be subject to these Measures in relation to its product design, trading and management; client access and salesprocess shall be subject to the relevant regulations of CBRC in respect of wealth management business.Risk assessment and sales of derivativeproductsfor individuals shall be subject to the relevant regulations in respect of wealth management business for individuals.The launch of derivatives trading business by a banking financial institution

shall be subject to the prior approval as well as the supervision and

inspection of the CBRC.