The Regulations are established in accordance with the stipulation under Article 9 of Central Government Bonds and Loan Act.

Unless otherwise provided in the relevant Statute of Central Government Bond, the custody, appropriation, distribution, registration, trust announcement, loss report and stoppage of payment, Cancellation, receipt and disbursement of loans, appropriation of principal and interest, and distribution and administration fee in connection with the bonds issued by the Central Government shall be stipulated under these Regulations.

The bank in charge of the distribution and administration of the Bonds shall be the Central Bank of China pursuant to applicable laws, and those who are appointed by the Central Bank to participate in the tender sale, placement sale, or commissioned sale for the bonds shall be Central Government Bond Dealers (hereinafter referred to as "Dealers").
The Dealers who are appointed to deal with the payment of principal and interest shall be bank's head offices, and all branches subordinate to and authorized by the bank's head offices to deal with the businesses referred to in this paragraph shall be bank branches.
The banks appointed by the Central Bank of China to deal with the registration of book-entry bonds, as well as their settlement shall be clearing banks.

Accounting procedures and the books format in connection with distribution and administration of the Central Government Bond shall be made and prepared in compliance with the Accounting System for the Central Government Bond; the books and accounts other than those for book-entry bonds shall be printed and issued by the Central Bank of China.

The distribution and administration fee for the issuance of central government bonds and the handling charge for the payment of principal and interest shall be made in accordance with the applicable Act, and shall be covered by the budget appropriated by the Ministry of Finance or competent authorities.
The distribution and administration fee shall be calculated and appropriated as follows:
(1) The number of bonds actually sold through tender sale, placement sale, or commissioned sale;
(2) The number of bonds certificates dealt with by the security central depository under Paragraph 1, Article 11 hereof.
The handling charge for the payment of principal and interest shall be calculated in accordance with the amount actually paid and shall be appropriated to the Central Bank of China for payment.

Where the Bonds are distributed through bidding, the bidders shall tender their bids for purchasing the Bonds; where the Bonds are fully distributed pursuant to their par value, the distribution shall be made pursuant to the amount set forth in the Bonds.
The bidding referred to in the preceding paragraph shall be classified into competitive bidding and non-competitive bidding. The competitive bidding is conducted through price or interest rate competition, whereas the non-competitive bidding is conducted in accordance with the weighted average price or interest rate quoted by the successful bidders.

When the Bonds are issued in the form of certificates, physical certificates shall be delivered to the purchasers for them to receive payment of principal and interest upon maturity. When the bonds are issued in the form of book-entry, no physical certificate will be delivered, and the Central Bank of China or the settlement bank shall enter all data in connection with bonds purchased into the machine-processed accounting data storage, shall issue bond pass books to the purchasers, and shall wire transfer the principal and interest due to the account of the bond owner upon maturity.
The form of issued bonds may be converted from certificate to book-entry, and no reversion may be made thereafter. All operational procedures shall be established by the Central Bank of China after consultation with the Ministry of Finance.

Reopen-bonds may be issued after the issuance of the original bonds, and the type, serial number, terms, and maturity date of the reopen-bonds shall be identical to the original bonds.

Prior to issuance of each session of the bonds, the Ministry of Finance shall consult with the Central Bank of China and shall make a public announcement on the type, form, serial number, method, date, amount, coupon rate, face value, and dates and methods for payment of principal and interest for the bonds to be issued. Where tender sale is adopted, the announcement shall include the qualification of the bidder, method, place, beginning and ending of time, and the place, time, and date of auction, and other relevant matters.

The Central Bank of China shall consult with the Ministry of Finance on the operation for the tender sale of the bonds and the qualifications of the bidders.

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