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Reply of the People’s Bank of China concerning the Rules for Settling Security Transactions by China Government Securities Depository
Trust & Clearing Co. Ltd.
China Government Securities Depository Trust & Clearing Co. Ltd.,
We have received your Request for Instructions on the Promulgation of the Rules for Settling Security Transactions by China Government
Securities Depository Trust & Clearing Co. Ltd. (Zhong Zhai Zi [2005] No. 64). Your Company is hereby approved to promulgate
the Rules for the Settlement of Security Transactions by China Government Securities Depository Trust & Clearing Co. Ltd in accordance
with such relevant provisions as the Measures for Administrating Security Transactions in the National Inter-Bank Securities Market
(Yin Fa [2000] No. 2) and the Circular on Such Relevant Issues on the Establishment of Proxy Security Settlement Business (Yin Fa
[2000] No. 325).
In accordance with the relevant provisions of the People’s Bank of China in respect of the inter-bank securities market, your Company
shall formulate relevant business rules and operating procedures, intensify the establishment of the internal control system, handle
the security settlement affairs strictly according to the relevant provisions, improve the internal system of the inspection and
examination for settlement business and prevent settlement risks effectively.
Your Company shall constantly improve the system and the relevant operating procedures, supply market members with convenient and
highly-effective account check services and effectively safeguard the legitimate rights and interests of the market members.
In formulating fee charging measures for the relevant business operations, your Company shall adhere to the principle of no profit
making and shall fully and publicly solicit the market members’ opinions. The charging of relevant operational fees shall be implemented
after being reported to the People’s Bank for archival.
It is hereby replied.
The People’s Bank of China
August 16, 2005
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