RMB Bonds (the Bonds) by the Ministry of Finance of the People's
Republic of China (the Issuer)
Frequently Asked Questions for Investors
Unless otherwise specified, capitalised terms used in this document have the same
meaning set out in the Selling Manual dated 9 December 2016. If investors require further
information for investing in the Bonds, they should refer to the Selling Manual and other
documents issued by the Issuer on the HKEXnews website (http://www.hkexnews.hk) and
consult a licensed securities dealer, bank manager, solicitor, certified public accountant or
other professional advisers prior to making any investment decision.
1. Am I eligible to apply for the Bonds?
You can only apply for the Bonds if you hold a valid Hong Kong identity card but you
need not be a permanent resident. You should apply in your personal capacity and as
beneficial owner rather than on behalf of any corporate or other body corporate. In
case of an application using a joint account, all holders should be individuals and only
the holder with the Hong Kong identity card can apply for the Bonds.
2. Where can I get a copy of the Selling Manual?
You can get copies of the Selling Manual from a securities broker, a placing bank or
Hong Kong Securities Clearing Company Limited (HKSCC).
The Selling Manual and other information about the Bonds is also available on the
website of Hong Kong Exchanges and Clearing Limited (HKEX).
3. How can I apply for the Bonds and what kind of account do I need?
You can apply for the Bonds through:

a securities broker – you need a stock dealing account with a securities broker.
You also need to have a Renminbi (RMB) bank account for settlement purpose so
that you can receive payments in RMB (such as sale proceeds or interest
payments) via banks. In addition, you should confirm readiness of your securities
broker to carry out RMB securities business.

a placing bank – you need to have a RMB bank account and an investment
account with a placing bank.

HKSCC directly using your Investor Participant account – you should have set up a
RMB designated bank account with Central Clearing and Settlement System
(CCASS).
4. Do I need an application form?
The securities broker or the placing bank with which you place your order will ask you
to fill in an application form and make a series of confirmations and
acknowledgements.
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A standard application form containing requisite declarations (the Applicant Profile and
Subscription Form) is provided to securities brokers and placing banks for handling
applicants’ applications. The Applicant Profile and Subscription Form should only be
used where no recommendation or solicitation is involved. The Applicant Profile and
Subscription Form is posted on the HKEX website.
Where recommendation or solicitation is involved, please ask your securities broker or
placing bank for details.
5. What fees do I need to pay when applying for the Bonds?
For applications made through a securities broker, there is a brokerage fee that you
pay securities broker for handling your application. The level of brokerage fee that you
pay is determined by your securities broker (and may be higher than or lower than
0.15%). Please consult your securities broker on how this fee is charged.
If you are applying through a placing bank, there is a handling fee that you pay your
placing bank for handling your application, calculated as 0.15% of the application
moneys of the Bonds you apply for. Your placing bank may choose to waive or
reduce the amount of the handling fee it charges.
For applications made directly through HKSCC, there is a brokerage fee that you pay
to your designated broker (if you have provided the broker number in your application)
or The Stock Exchange of Hong Kong Limited (Hong Kong Stock Exchange),
calculated as 0.15% of the application moneys of the Bonds you apply for.
The brokerage fee and handling fee are in addition to the principal amount of the
Bonds you apply for.
Some or all of the brokerage fee or handling fee, if any, you have paid will be refunded
if, among other things, your application is wholly or partly unsuccessful. Please refer
to FAQ 9.
6. Can I obtain RMB margin finance from my securities broker?
There is no specific restriction on the provision of margin financing by securities
brokers to personal customers. It will be a commercial decision of the securities
brokers whether to provide financing services or finance individual customers. Please
check with your securities broker.
See relevant question on the Investor Education Centre website:
http://www.thechinfamily.hk/web/en/financial-products/investment/rmb-products/basics/tra
ding.html
7. When is the subscription period?
The subscription period for the Bonds is from 9:00 a.m. on 9 December 2016 to 2:00
p.m. on 22 December 2016. You may only subscribe the Bonds for an amount of
RMB10,000 or integral multiples thereof.
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Applications for the Bonds must be submitted before 2:00 p.m. on the closing date of
the subscription period.
If you are applying through a securities broker, your securities broker may stipulate its
own deadline for the submission of application instructions to it. Please consult your
securities broker if in doubt.
8. What if the Bonds are over-subscribed?
The Issuer intends to allocate at least one Bond to every investor who applies. The
remaining Bonds will then be allocated to investors approximately in proportion to the
number of Bonds each investor validly applied for. If the Bonds are over-subscribed
to the extent that the Issuer cannot even allocate one Bond to each applicant, it will
choose by ballot.
9. What happens if I am owed a refund for any application moneys and/or handling
fee or brokerage fee?
Some or all of the application moneys and handling fee or brokerage fee, if any, you
have paid will be refunded if:



your application is wholly or partly unsuccessful;
the Bonds are over-subscribed and as a result you are not allocated all of the
Bonds you have applied for; and
at any time on or before the issue date, the Issuer cancels all or a portion of the
offering of the Bonds.
If you apply for the Bonds through a placing bank, your placing bank will transfer such
refund to your designated bank account with that placing bank within five business
days of the issue date.
If you apply for the Bonds through a securities broker, HKSCC will transfer such refund
to your securities broker’s designated bank account on or before the issue date. You
will have to rely on your securities broker to pass on such refund to you in a timely
manner. You should consult your securities broker for details of whether or not, and if
so how, it will refund to you any application moneys and/or brokerage or other fee in
any of the circumstances listed above.
If you apply for the Bonds through HKSCC directly, HKSCC will make a refund to you
on or before the issue date.
10. How do I sell my Bonds?
The Bonds can be sold:
 through the Hong Kong Stock Exchange; or
 over-the-counter.
If you apply for the Bonds through securities brokers:
Your securities broker will credit the Bonds allotted to your securities account with the
securities broker on the issue date of the Bonds. You can sell the Bonds through the
Hong Kong Stock Exchange upon listing of the Bonds.
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If you wish to sell any of the Bonds over-the-counter, you will need to instruct HKSCC
or your securities broker to transfer the Bonds to the counterparty. The relevant
counterparty, HKSCC and/or your securities broker may charge you fees for such
transfer.
If you apply for the Bonds through placing banks:
Your placing bank will credit the Bonds allotted to your securities or investment account
with the placing bank on the issue date of the Bonds. You can sell the Bonds
over-the-counter upon listing of the Bonds.
If you wish to sell the Bonds through the Hong Kong Stock Exchange, you will need to
instruct your placing bank to transfer the Bonds from your securities or investment
account with that placing bank to your investor account with HKSCC or your securities
or custody account with your securities broker beforehand. Your placing bank,
HKSCC and/or your securities broker may charge you fees for such transfer.
Alternatively, your placing bank may be able to transfer the Bonds to a stock account it
holds with HKSCC through the CMU and CCASS operated by HKSCC (in other words
your placing bank may be able to perform the role). Your placing bank and/or HKSCC
may charge you fees for this transfer.
If you apply for the Bonds through HKSCC directly:
HKSCC will credit the Bonds allotted to your Investor Participant account on the issue
date of the Bonds. If you wish to sell the Bonds through a securities broker or
over-the-counter, you will need to transfer the Bonds from your Investor Participant
account to a securities account with a securities broker or investment account with the
counterparty beforehand. Your securities broker, the relevant counterparty and/or
HKSCC may charge you fees for such transfer.
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