(6) Have the advantage for obtaining such information as the real time quotation data and transaction data provided by the National Inter-Bank Borrowing Center (hereinafter referred to as Borrowing Center).

Article 7 A market maker shall fulfill the obligations as follows:

(1) The total number of varieties of market making bonds it has decided shall be no less than six and the varieties finally decided shall cover the following three types, namely, government bonds, bonds of governmental development financial institutions and non-governmental credit bonds;

(2) The compensation terms of market making bonds shall include at least four of the five terms, namely zero-one year, one-three years, three-five years, five-seven years and more than seven years;

(3) Once a market maker decides the varieties of market making bonds, it mustn't alter them on the current day, and shall make consecutive bilateral quotations on the selected varieties, and the time gap between bilateral quotations shall not exceed 30 minutes; and

(4) The minimum volume of quotation of a single transaction shall be the par value of 1 million yuan.

In case any market maker is unable to perform any obligation as mentioned above by virtue of unusual circumstance, it shall report to the People's Bank of China in written form and explain the reasons in a timely manner.

Article 8 A market maker shall, on the basis of the actual price, make bilateral quotations, whose price gap shall fall within the reasonable scope of the market.

Article 9 A market maker shall, within 10 workdays upon the end of each quarter, present the People's Bank of China a written analysis of the bond market and its bond transaction and market making situation of this quarter.

Article 10 A market maker may not manipulate the market. If it does so and causes any loss to the investors, it shall undertake the liability for compensation in accordance with law.

Article 11 The self-discipline organization of the inter-bank market shall, through information platforms such as the website of the People's Bank of China, publicize every half year the following related market-making circumstances of market makers: the number of the varieties of market-making bonds, the total amount of market-making quotations and information about the market-making transactions, etc.

Article 12 The self-discipline organization of the inter-bank market shall evaluate the market-making business of the market makers on a regularly basis, and the evaluation results shall be circularized through such information platform as the website of the People's Bank of China.

The People's Bank of China shall adjust market makers in accordance with the evaluation results.

Article 13 In case a market maker engages in market-making business or a non-market maker tries to engage in market-making business, it shall conduct through the trading system of the Borrowing Center, which shall consummate its trading system to provide technical support for the conduct of market-making business.

Article 14 The Borrowing Center shall set down operational instruction for the market-making business according to the present Provisions, which shall be implemented after being reported to the People's Bank of China for archival filling.

The Borrowing Center and China Government Securities Depository Trust and Clearing Co. Ltd. shall set down the detailed rules on commission charge preference for the transactions of existing bonds and transactions of bond debit and credit as conducted by market makers through market making business, which shall be implemented after being reported to the People's Bank of China for archival filling.

Article 15 The market making business of market makers shall be subject to the examination and supervision of the People's Bank of China.

Article 16 In case any market maker or any other institution violates any provision of the present Provisions, the People's Bank of China shall punish it according to the provisions of Article 46 in the Law of the People's Republic of China on the People's Bank of China.

Article 17 The People's Bank of China shall be responsible for the interpretation of the present Provisions.

Article 18 The present Provisions shall go into effect as of February 1, 2007. The Circular of the People's Bank of China Concerning Matters on Regulating and Supporting the Bilateral Quotation Business in the Inter-bank Bond Market (Yin Fa [2001] No.75) and the Circular of the Monetary Policy Department of the People's Bank of China Concerning the Adjustment of the Maximum Price Gap and Minimum Amount of Quotations Made by Bilateral Quotation Makers (Yin Huo Zheng [2002] No.43) shall be concurrently repealed.

(Not the official translation. Source: www.fdi.gov.cn)