Release of the "Offshore Renminbi Foreign Exchange Business Guidelines" by the China Foreign Exchange Trade System

On September 1, the China Foreign Exchange Trading System released the "Guidelines for Offshore RMB Foreign Exchange Business by the China Foreign Exchange Trading System." It states that the trading hours for offshore RMB foreign exchange transactions are from 07:00 to 03:00 the next day Beijing time, and trading is closed on Saturdays, Sundays, and Chinese statutory holidays. Offshore RMB foreign exchange trading will employ bilateral clearing. Both parties in the transaction should handle relevant fund settlements based on trading elements such as value date and transaction amount as stipulated in the transaction confirmation. On the value date (settlement date), the full amount of RMB or foreign currency should be paid to the designated fund account of the counterparty. The original text is as follows: Notice on the Release of the "Guidelines for Offshore RMB Foreign Exchange Business by the China Foreign Exchange Trading System" Zhonghui Jiao Fa [2026] No. 209 To all participating institutions: In accordance with the latest policies and market development needs, the China Foreign Exchange Trading Center has revised and formed the "Guidelines for Offshore RMB Foreign Exchange Business by the China Foreign Exchange Trading System" (see attached), which is now published. These guidelines shall take effect from the date of publication, and the "Guidelines for RMB Foreign Exchange Trading Business in the Free Trade Zone by the China Foreign Exchange Trading Center" (Zhonghui Jiao Fa [2024] No. 378) shall be abolished at the same time. This is to notify you. Attachment: Guidelines for Offshore RMB Foreign Exchange Business by the China Foreign Exchange Trading System China Foreign Exchange Trading System August 31, 2026 China Foreign Exchange Trading System Guidelines for Offshore RMB Foreign Exchange Business (Amended August 2026) Chapter One General Principles Article 1 The China Foreign Exchange Trading System (hereinafter referred to as the "Trading Center") provides trading infrastructure services for offshore RMB (CNH) foreign exchange transactions and formulates these guidelines in accordance with relevant national laws and regulations. Article 2 Offshore RMB foreign exchange trading, as referred to in these guidelines, refers to transactions conducted by domestic financial institutions, free trade zone financial institutions, and overseas institutions permitted to participate in offshore RMB foreign exchange business under relevant policies, through the Trading Center platform. Article 3 Free trade zone financial institutions should strictly manage accounts and funds according to the provisions of the "People's Bank of China Opinions on Financial Support for the Construction of the China (Shanghai) Pilot Free Trade Zone" (Yin Fa [2013] No. 244), the "People's Bank of China's Shanghai Headquarters Notice on Issuing the 'Implementation Rules for the Account Segregation Services in the China (Shanghai) Pilot Free Trade Zone (Trial)' and 'Risk Prudential Management Rules for Account Segregation Services in the China (Shanghai) Pilot Free Trade Zone (Trial)' (Yin Head Office Fa [2014] No. 46), the "Notice of the People's Bank of China and the State Administration of Foreign Exchange on Issuing the 'Construction Plan for the 'Electronic Enclosure' of Hainan Free Trade Port and Hengqin Guangdong-Macao Deep Cooperation Zone'" (Yin Fa [2023] No. 119), the "Implementation Measures for Multi-functional Free Trade Account Business in Hainan Free Trade Port" (Qiong Yin Fa [2024] No. 32), and the "Implementation Measures for Multi-functional Free Trade Account Business in Hengqin Guangdong-Macao Deep Cooperation Zone" (Guangdong Yin Fa [2024] No. 24). Chapter Two Participating Institutions Article 4 Qualified domestic financial institutions, free trade zone financial institutions, and overseas institutions may apply to the Trading Center based on their business needs. Upon signing the membership agreement and completing technical preparations, the Trading Center will notify them in writing of their status as participants in offshore RMB foreign exchange trading. Article 5 Domestic financial institutions are those engaged in financial business established within the territory of the People's Republic of China, approved by the financial management departments of the State Council. Article 6 Free trade zone financial institutions refer to institutions conducting account segregation business and accepted for connection by the People's Bank of China Shanghai Headquarters or local branches as per the "People's Bank of China Opinions on Financial Support for the Construction of the China (Shanghai) Pilot Free Trade Zone" (Yin Fa [2013] No. 244) and the "Notice of the People's Bank of China and the State Administration of Foreign Exchange on Issuing the 'Construction Plan for the 'Electronic Enclosure' of Hainan Free Trade Port and Hengqin Guangdong-Macao Deep Cooperation Zone'" (Yin Fa [2023] No. 119). Article 7 Overseas institutions refer to foreign central bank-like entities, foreign financial institutions, and other qualified overseas institutional investors. Article 8 Participating institutions with relevant quoting trading experience may apply to the Trading Center to become Offshore RMB Foreign Exchange Liquidity Providers (referred to as "LP"), providing buy and sell quotes to the market. The Trading Center will evaluate and adjust based on market conditions. Chapter Three Trading Management Article 9 The trading hours for offshore RMB foreign exchange transactions by the Trading Center are from 07:00 to 03:00 the next day Beijing time. There is no trading on Saturdays, Sundays, and Chinese statutory holidays. Article 10 Prior to conducting transactions, participating institutions should establish bilateral credit relationships or set credit limits with counterparties through the Trading Center platform, and maintain clearing account information. Before engaging in derivatives trading, a master agreement for financial derivatives trading should be signed with counterparties. Article 11 Participating institutions should designate qualified traders to represent them in offshore RMB foreign exchange quoting and trading, and are responsible for the trading behavior of the traders. The Trading Center implements real-name management for traders; traders who have not completed real-name certification are not allowed to log into the Trading Center platform for relevant quoting and trading. Article 12 Traders should conduct trades within the scope authorized by participating institutions, which should promptly review and update the authorization scope for traders. If a trader resigns or changes positions, the participating institution should promptly revoke or adjust their permissions. Article 13 The transaction confirmation generated by the Trading Center platform serves as a written evidence of the offshore RMB foreign exchange transaction, which is legally binding on both parties. Article 14 Offshore RMB foreign exchange trading employs bilateral clearing. Both parties in the transaction should handle relevant fund settlements based on the trading elements stipulated in the transaction confirmation such as value date and transaction amount, and on the value date (settlement date), the full amount of RMB or foreign currency should be paid to the designated fund account of the counterparty. Article 15 Offshore RMB foreign exchange transactions conducted by the Trading Center will not be included in the market prices and transaction statistics of the domestic interbank RMB foreign exchange market. Article 16 If a participating institution is unable to use the Trading Center platform due to faults in its system or communication lines, it may apply to the Trading Center for emergency trading services. If a participating institution makes a trading error for special reasons, they may apply to the Trading Center for emergency trade cancellation services after both parties reach an agreement. The related operations performed by the Trading Center based on the emergency service application from the participating institution will have the same legal effect as those performed by the institution itself. Chapter Four Trading Types and Mechanisms Article 17 The types of offshore RMB foreign exchange transactions include spot and derivatives, with derivatives including forwards, swaps, currency swaps, and options. Article 18 Offshore RMB foreign exchange trading supports inquiry-based trading and other models. Inquiry-based trading refers to liquidity providers (LP) providing named public indicative quotes or volume-based executable quotes through the Trading Center platform, where participating institutions reach transactions with liquidity providers (LP) or other participating institutions through Request for Quotes (RFQ), click-to-trade, or order matching (ESP), and negotiated trading. Article 19 Participating institutions can conduct manual quoting and trading through the Trading Center platform, and liquidity providers (LP) can also use the automated market-making interface (LP API) provided by the Trading Center for quoting and trading. Participating institutions must comply with the business technical specifications of the Trading Center systems and interfaces. Chapter Five Trading Standards Article 20 The Trading Center conducts market monitoring and abnormal trading behavior handling for offshore RMB foreign exchange businesses in accordance with the relevant regulations of regulatory authorities. Article 21 Participating institutions must strictly adhere to anti-money laundering and anti-terrorist financing laws and regulations, effectively fulfilling the related obligations. Article 22 Participating institutions engaging in offshore RMB foreign exchange trading should refer to the "Guidelines for Market Trading Behavior," "Chinese Foreign Exchange Market Standards," "Global Foreign Exchange Market Standards," and other regulations and best practices, while establishing and improving internal management systems based on the characteristics of their businesses to enhance front, middle, and back office management. Article 23 Participating institutions should participate in trading fairly and honestly. Any actions obstructing fair market trading, disturbing price discovery, or affecting market operation order are prohibited. Article 24 The quotes and transaction prices of participating institutions should reflect valid and reasonable market prices. Article 25 For institutions that violate these guidelines, the Trading Center will take measures according to the severity of the situation, including verbal warnings, suspension or cancellation of partial or all trading rights, and other measures deemed necessary by the Trading Center. Article 26 To maintain normal trading order, if any of the following situations occur, the Trading Center may suspend all or part of the trading as appropriate: (1) Irregular or excessive fluctuations in market prices disrupt normal market operations; (2) Force majeure, unexpected events, technical malfunctions, or other sudden events lead to or may lead to the inability to conduct trading normally; (3) Other situations affecting normal trading order and market fairness. Article 27 If there are abnormal situations regarding completed transactions, which would seriously impact normal order and market fairness if settled based on transaction results, the Trading Center may cancel the transaction. Chapter Six Supplementary Provisions Article 28 The definitions of relevant products, trading models, business day rules, and value date adjustment rules for offshore RMB foreign exchange transactions by the Trading Center shall refer to relevant documents such as the "Product Guide of the China Foreign Exchange Trading Center (Foreign Exchange Market)." Article 29 Free trade zone financial institutions should report offshore RMB foreign exchange transaction information to the Trading Center in accordance with the "Notice of the Shanghai Branch of the State Administration of Foreign Exchange on Further Regulating Data Collection Requirements for Free Trade Accounts in the China (Shanghai) Pilot Free Trade Zone" (Shanghai Hui Fa [2017] No. 158). Offshore RMB foreign exchange transactions reached through the Trading Center platform will have the relevant data collected automatically by the Trading Center, and participating institutions do not need to report separately. Article 30 These guidelines are interpreted and revised by the Trading Center. Article 31 These guidelines shall take effect from the date of publication, and the original "Guidelines for RMB Foreign Exchange Trading Business in the Free Trade Zone by the China Foreign Exchange Trading Center" (Zhonghui Jiao Fa [2024] No. 378) shall be simultaneously abolished. This text is excerpted from the official website of the "China Foreign Exchange Trading Center," GMTEight Editor: Feng Qiuyi.