CIRCULAR ON INCREASING THE REPURCHASE OPERATIONS OF OPEN MARKET BUSINESS

Circular on Increasing the Repurchase Operations of Open Market Business

[2004] No.4

All primary dealers of open market business:

As from this week, the People’s Bank of China will conduct the operation of releasing central bank bills every Tuesday and the operation
of repurchase every Thursday. The operation of releasing central bank bills shall be carried through toward all primary dealers,
and the operation of repurchase shall be carried through toward the deposit institutions among the primary dealers (including commercial
banks and rural credit cooperation associations). The bidding time of the operation of repurchase is 9￿￿0-10￿￿0 AM every Thursday.

The Operating Office of the Open Market Business of the People’s Bank of China

May 12, 2004