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Ministry of Finance Savings Bonds

Issued by the Ministry of Finance of the People's Republic of China (the "MOF") within the territory of China, this category of savings bonds are RMB-denominated, non-tradable debt securities. They are distributed by commercial banks to individual investors. The obligatory rights and obligations are recorded electronically only. Such bonds are registered bonds and exclusively sold to individual investors. Each customer is limited to opening only one account of this type. Additionally, there is an upper limit on the purchase amount. Finally, these bonds can be purchased in the issue period only and cannot be traded on the market. However, redemption before maturity is permissible. Investors must purchase such bonds in a minimum amount of RMB100 per purchase or in an integral multiple of RMB100 per purchase. 

1. As a kind of public debt issued by the MOF on behalf of the state, savings bonds are secured by country credit. The principal and interest are repaid by the MOF upon maturity. Therefore, these bonds have a superior and, unparalleled credit rating when compared to other investment instruments secured only by commercial credit.
2. Interest income from savings bonds is free frompersonal income taxation, providing higher returns than that of bank deposits with the same term net subject to tax. Furthermore, the face value of these bonds is stable and interest accrues until maturity. Thus, they avoid the risk of price fluctuation.
3. Electronic records are employed, making record keeping easy and readily accessible.
4. Redemption before maturity is allowed.
5. They serve as a sound financing instrument. The bonds may be used as collateral to apply for pledge loans in case of an unforeseen and urgent need for funds. 

1. Open a personal account for treasury bonds. Complete the Application Form for a Savings Bonds Account and sign the Charter of Custody Services. Present your identity certificate and debit card (or passbooks) when completing the application.
2. Purchase. Complete the Application Form for Savings Bonds Business or file an application for purchase verbally. Your debit card (or passbook) used for opening the savings bonds account must also be presented.
3. Redeem before maturity. Complete the Application Form for Savings Bonds Business, and provide your debit card (or passbook) used for opening the savings bonds account. Any redemption is subject to a partial return deduction and fee as a given percentage of the principal redeemed.
4. Automatically receive principal and interest. Upon maturity, principal and interest are automatically repaid into your debit card (or passbook) used to open your savings bonds account. You do not have to spend time or energy on any procedures to receive the return of your principal and interest income. 

Note: Please contact your local branch for detailed information about the service.

Customer Service Center : 95599


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