On 13 June 2008, the China Foreign Exchange Trading Centre and the National Inter-bank Borrowing Centre issued the Operational Rules for Renminbi Interest-rate-swap Transactions (the “Circular”), which took effect on that day.

The Circular states that transaction members of the China Foreign Exchange Trading Centre can conduct Renminbi interest-rate-swap transactions (“transaction”) via the transaction system of National Inter-bank Borrowing Centre (the “transaction system”) after they have been registered according to the Circular on Issues Related to Filing Records of Renminbi Interest-rate-swap Transactions (Zhonghuijiafa No.43 of 2008).

The transaction system provides three types of quotations: public quotations, two-way quotations and dialogue quotations. The parties concerned can make a transaction after agreeing on the major terms of transaction through the dialogue quotation. Financial institutions which are qualified to be inter-bank market makers or settlement agents can adopt the two-way quotation.

For more information, please refer to Zhonghuijiafa No. 182 of 2008 at www.chinamoney.com.cn/content/online2002/URLContent/gonggao/08_182.doc.