Issued: May 23 2005

Effective: as of date of issue

Interpreting authority: People's Bank of China

Applicability: The term "short-term financing bills" (Financing Bills) refers to negotiable securities that are issued on the national inter-bank bond market by enterprises and traded therein, in accordance with the conditions and procedures stipulated by the Administration of Short-term Financing Bills Procedures, and that have repayment of principal and interest within a certain time period specified (Article 2).