Date: 28 April 2020

Webinar Topic:

A Golden Era of Bond Connect - Updates & E-Filing

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House Keeping

1. All participants are on a listen only mode during the call of the webinar.

2. After the presentation, there will be a Q&A session. For any questions for the speakers, please type it in Q&A Box on the bottom right corner. Speakers will discuss in Q&A session at the end of the event.

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House Keeping

3. The webinar is being recorded. The presentation slides & play back will be available on BCCL Website later in due course.

4. If any participant requires assistance at any time, please send a message to the host through the chat box in this webinar platform.

Bond Connect Series Event

MODERATOR : MS. SHIRLEY CHIEU

Vice President, Global Market Consultant, BNY Mellon

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Shirley joined BNY Mellon in 1998. Her background is in custody services, specializing in documentationrelated to global market opening, tax and proxy. Throughout her career at BNY Mellon, Shirley has heldseveral positions in both Client Service Administration and US Client Onboarding, providing client servicesupport and global documentation support to a variety of client types, including mutual funds, exchangetraded funds (ETF), alternatives, unit investment trusts (UIT), insurance and banks.

Shirley’s knowledge of Regulatory, Risk Management and Global Market Practices have allowed her toeasily transition into her current role with the Global Market Consultants group. She acts as the liaisonbetween clients and BNY Mellon’s Global Network Management, Product and Operational teams, providingcustomized global market support to clients while specifically focusing on market and regulatory changes,sub custodian operations, new products and services. Shirley’s many years of experience enable her theability to provide clients with valuable insight on the increasing complexity of global market investments.

Shirley Chieu

Vice President, Global Market Consultant, BNY Mellon

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Zhengyi Chen joined Bond Connect Company Limited(BCCL) in 2019. Zhengyi’s background is in financialmarket infrastructure, specializing in China InterbankMarket logistics. As part of Sales & Marketing of BCCL,Zhengyi is responsible of investor education,onboarding, and an integral member of schemeenhancements initiatives such as the design and roll-out of E-Filing system.

Zhengyi has also held previous positions at bothClearing and RMB Departments in China ForeignExchange Trade System (CFETS), the interbank tradingdivision of China's central bank. Zhengyi’s exposure toboth a regulatory standpoint and a market point of viewallows him to offer valuable insight and pinpointcustomized solutions for foreign investors interested ina growing China Market.

Nina Lei joined Bond Connect Company Limited (BCCL) in2018. As part of Sales & Marketing, Nina’s key rolefocuses in bridging Bond Connect investors and onshoreregulators to ensure smooth scheme implementation andimprovement. Over the past 2 years, Nina has onboardedover 600 Bond Connect investors from all over the worldand extended the footprint of the China access schemeglobally.

Nina started her career in finance industry in 2011. Shepreviously held various positions in Global Markets inBNP Paribas to foster the firm’s onshore and cross-border businesses.

Senior Vice President

Head of Sales & Marketing

Bond Connect Company Ltd

Phoebe joined Bond Connect Company Limited (BCCL) , ajoint venture established by China Foreign Exchange TradeSystem (CFETS) and Hong Kong Exchanges and ClearingLimited (HKEX), in September 2018 as the Head of Sales &Marketing to oversee China bond market access promotionand onboarding for international investors. She has over 10years of experience in the Chinese financial markets.

Prior to joining BCCL, Phoebe was a Director, RMB BondSales at BNP Paribas, with over 8 years spent betweenShanghai and Hong Kong. She led the establishment of BNPParibas’ bond sales platform covering all official institutionsand global financial institutional investors spanning acrossQFII, RQFII, CIBM Agent and Bond Connect models in theirChina interbank bond market investments. She played a keyrole in the infrastructure setup committee of the bank’s TypeA Bond Custodian Agent Service and Bond Connect marketmaking eligibility. Phoebe has been ranked No.1 Best Salesfor onshore RMB bonds by The Asset Benchmark Researchfrom 2016-2018.

Prior to her specialisation in the China market, she was Asiacredit sales covering hedge funds and real money investors.

Phoebe Leung Nina LeiSales & Marketing

Bond Connect Company Ltd

Zhengyi ChenSales & Marketing

Bond Connect Company Ltd

7Source: BCCL as of Apr 27th, 2020

Rising Impact of Bond Connect as Major Investment Channel

BC Filing continues to gather speed74 out of Top 100 Global AM Companies Onboarded

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A Changing & Expanding Investor Base— Jurisdiction

Spanning across Investors in 32 Jurisdictions

Source: BCCL as of Apr 27th, 2020

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Accelerating Trading Activities via Bond Connect

Source: BCCL as of Apr 27th, 2020

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Jul 3 2017

LAUNCH

MilestonesNo. overseas investors approved(Filing notice)

Nov 7 2018Tax exemption clarification of CIT and VAT for interest income effective Nov 7 2018 to 6 Nov 2021

Nov 29 2018Bloomberg announced as 2nd BC trading platform

Mar 23 2018Bloomberg Barclays Index inclusion announcement, starting Apr 2019 and phased in over 20-month period, subjected to tax clarification, DVP, block trade

Architecture design of Bond Connect

Aug 2015

Jul 3 20181st Anniversary announcements of BC enhancements, e.g. Block Trade, Tax, DVP, DerivativesBC Dealers up from 24 to 34BCCL fees— 50% reduction

Aug 27 2018Real-time delivery-versus-payment (DVP) Launched

Aug 30 2018Proposal of a 3 year CIT & VAT exemption

Aug 31 2018Tradeweb Block trade function launched

Mar 2017Li Keqiang pledged bond market connect scheme in 2017

Jun 2017CFETS & HKEX announces launch of Bond Connect

Bond Connect— A Constantly Evolving Scheme

Jan 17 2019• China Bond Market Intl Forum:

Development, Reforms & Opening-up • Bloomberg BC TSOX Go-Live

Jan 31 2019Bloomberg confirms China bonds inclusion effective April 1, 2019

Feb2019Launched Primary Information Platform

Mar 2019• Irish UCITS & AIFs approved for BC• PBoC approves mandates filing

Apr 2019• NCD primary subscription service• Settlement cut off time extension

Apr 1 2019Official inclusion of China bonds in Bloomberg Barclays Index

June 2019• Block Trade allocation: 30 → 50 a/c• Backup Trading Procedures launched

Jul 3 2019Bond Connect Anniversary Summit, enhancements e.g. Adds 13 BC Market makers to 47, Price indication launched

Aug 2019• Extension of settlement cycle to T+3

for international investors

Sep 2019• JPMorgan confirms China bonds

inclusion effective Feb 28, 2020

Dec 2019• Bond Connect E-Filing Launched

JUN

1000

Feb 28 2020Official inclusion of China bonds in JPMorgan IndexGBI-EM Global Diversified (GBI-EM GD), GBI-EM Global, GBI-EM (Narrow), GBI-EM (Narrow) Diversified.Weighting capped at 10%

NOV

200MAY

300DEC

500JAN

600

Mar

1944

NOV

1500

Source: BCCL as of Apr 27th, 2020

2020

Mar

1900

2019201820172015

Jan

1700

March 2020• Extended Settlement

Cycles & Settlement Amendment available

April 2020• Addition of 9 BC

Dealers to total 56

May 1 2020 • Bond Connect E-

Filing Global Implementation. Paper submission phased out

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Financial Institutions1

Tactical investors

Sovereign Institutions3

Financial business license

Registration certification issued by financial regulator

(must submit to BCCL)

Requirement

Central banks, Sovereign wealth funds and International financial institutions.

Commercial banks, insurance companies, securities companies, etc.

Eligible Bond Connect Investors

Registered fund products, trust products, etc.

Financial products2

Mandates, SMAs

Exempted funds*

IMA

Disclaimer in brief intro(case by case review)

Supporting letter issued bygovernment or ministry

(for sovereign institutions already approved by CIBM agent model,

please contact BCCL before application)

Source: BCCL

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Investor

BCCL

CFETS

Participating CFETS Dealer

PBoC

Submits qualified application

Pre-filing

CFETS Trading A/C

Approval notification

Submit filing form

Approach a Global / Local Custodian for CMU account numbers

Contract with Recognised trading access platform(s)

Submit Filing Forms to BCCL

• BCCL will provide admission guidance, documentation review, translation service and submit completed and qualified application to CFETS & PBoC Shanghai

• Upon PBoC’s approval notification, CFETS shall generate a CFETS ID for the new investor

Perform bilateral KYC process with at least one of the participating onshore dealers

Welcome to Bond Connect

Start trading via Access Platform(s)!

Global / Local Custodian

How to Apply for Bond Connect

Source: BCCL

Trading Access Platform

The Key to Get Started in 3-4 WeeksTIPS: You can do it all concurrently!

Meanwhile in the background… don’t forget!

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Document Requirements for Filing

Application Documents

Financial Institutions

Foreign Central Bank/Sovereign

Wealth FundFor Incorporated

EntitiesFor Unincorporated

EntitiesFunds /

ProductsMandates/

SMA

Annex 2-1 CIBM Registration Application Form √ √ √

Annex 1 Registration Form of Overseas Institutional Investors in China’s Inter-Bank Bond Market (For Incorporated Entities)

√

Annex 2 Registration Form of Overseas Institutional Investors in China’s Inter-Bank Bond Market (For Unincorporated Entities)

√ √

Annex 2-4 Letter of Authorization to Registration Agent √ √ √

Annex 3 Bond Connect Investors Business Application Form/Compliance Commitment Statement for Investing in China Interbank Bond Market

√ √ √ √

Simplified

Submission

Annex 6 Undertaking to the Bond Connect Company Limited

√ √ √

Annex 7 Compliance Statement for Mandates √

Annex * Chinese Inter-Bank Market Investment Registration Form

√

Source: BCCL

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FAQs while filing for Bond Connect

Source: BCCL

⚫ Q1: Name convention

- legal full name of financial institution

- legal full name of financial institution-legal full name of fund product or legal full name of end investor

⚫ Q2: Filing languages

- English and Simplified Chinese

⚫ Q3: Brief introduction

(1) Specific "Financial Business License" (e.g. type 9 license issued by HK SFC, investment advisor registered with SEC, etc.) and explanation of the license

(2) Specific regulators

(3) Specific relevant governing laws and regulations (e.g. SFC Securities and Futures Ordinance, etc.)

(4) Business Scope (fund management, securities prop trading, investment advisory, etc.)

(5) Explanation of organizational structure including a) parent affiliates company information and b) internal structure. Written description is preferred.

However, applicants may also elect to include an organization chart with all relevant information in the Brief Introduction. If the organization chart needs to be

separately attached, please have the document signed/sealed.

(6) Introduction of the Fund/Product, including its investment scope. Please introduce whether the fund is actively or passive managed, whether track index, which index.

(7) For Mandates/SMAs/Segregated accounts: Requirement as per (6), in addition, please introduce the end investor.

⚫ Q4: Fund or Mandate ?

- Fund product : issued by financial institution and has been registered with local financial regulator.

- Mandate : a portfolio belongs exclusively to a client. An IMA is in place between the AM and the end client.

⚫ Q5: Registered fund or Exempted fund ?

- Registered fund : registration certification issued by financial regulator

- Exempted fund: exemption justified by a particular law or regulation

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Onboarding specificities for US investors: LP and LLC structure in the US

Investment Company

Company

Investment

Fund

Mutual Fund

Private Fund

Registration with SEC

Could be exempted from registration

The investment company would not make any public offering

of securities

The investment company only accepts investor who are

"qualified purchasers"

1940 Act

Governs

If satisfy the 3(c)(7) exemption section of the 1940 Act

*For other exemption structures, such as Collective Investment Trust (CIF) and Comingled Fund, please contact BCCL for further discussion

Source: BCCL

Exemption disclaimer in the brief introduction in Annex 2 form (example) :

The XXX L.P. (the Fund) is an investment company that qualifies for the 3C7 Exemption under the Investment Company Act (1940) since the Fund has

its outstanding securities owned exclusively by persons who at the time of acquisition of such securities are the qualified purchasers as defined under

S. 2(a)(51)(A) of the Act, and would not make any public offering of the securities.

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Onboarding specificities for US investors: SPC structure in Cayman Islands

Mutual Fund

Unregulated Mutual

Fund

Company

Unit Trust

Partnership

“Exempted Company” and “Segregated Portfolio Company”

“Limited Partnership” and “Exempted Limited Partnership”

Licensed Mutual Fund – less than 1%

Administrated Mutual Fund

Registered Mutual Fund - 69%

This exemption has been revoked in Feb 2020, and by Aug 2020, suchfund would also need to be registered with CIMA.

“Master Fund” – 1/3

Regulated Mutual Fund

Laws of Cayman

Islands

Cayman Islands

Monetary

Authority

Searchable from

the CIMA website

Fund Vehicles

OR

Fund Categories

Source: BCCL

*For SPC/SPV structure domiciled in other jurisdictions, please contact BCCL for further discussion

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What is the Bond Connect E-Filing System?

The official online application portal to help guide the Bond Connect onboarding process

Compared to the previous paper-based approach, E-Filing is:

✓ EasierLess fields to fill in and instructions for each field

✓ StraightforwardClear tracking and direct communication

✓ EfficientStreamlined filing for batch applications

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Bond Connect E-Filing System User Structure

• An entity as a working group: each user under the same group will have access to the same applications

• 2 types of users under each working group:

1). User Admin • 1 per entity: designate!• Manages user access to the entity

2). Users• Unlimited numbers per entity: to be approved by User Admin• Manage Bond Connect applications• A User Admin could be a User at the same time!

Users

Applicant Entity

Admin Users

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Bond Connect E-Filing System Registration Procedure

• 1). Determine who is the User Admin to manage user access

• 2). Register as User Admin

• 3). BCCL activates User Admin, the entity/working group is then created

• 4). Registers as Users

• 5). User Admin approves Users

• 6). Users can start the Bond Connect application process

Users

Applicant Entity

Admin Users

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This document and the information contained herein may not be used other than by the person to whom it is addressed or distributed to and may not be reproduced in any form or transferred to any person. The information contained in this document is for general informational purposes only and does not constitute an offer, solicitation, invitation or recommendation to buy or sell any securities or to provide any investment advice or service of any kind. This document is not directed at, and is not intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject any of Hong Kong Exchanges and Clearing Limited (“HKEX”), China Foreign Exchange Trade System & National Interbank Funding Centre (“CFETS”), Bond Connect Company Limited (“BCCL”), China Central Depository & Clearing Co., Ltd (“CCDC/ChinaBond”) or Shanghai Clearing House (“SHCH”) (together, the “Entities”, each an “Entity”), or any of their affiliates, or any of the companies that they operate, to any registration requirement within such jurisdiction or country.

No section or clause in this document may be regarded as creating any obligation on the part of any of the Entities. Rights and obligations with regard to the trading and settlement of any securities effected on the CFETS, including through the Bond Connect, shall be set out solely in the applicable rules of the Entities, as well as the applicable laws, rules and regulations of Mainland China and Hong Kong in effect from time to time.

Although the information contained in this document is obtained or compiled from sources believed to be reliable, none of the Entities guarantee the accuracy, validity, timeliness or completeness of the information or data for any particular purpose, and none of the Entities or the companies that they operate or their respective affiliates, agents, nominees, representatives, officers and employees shall accept any responsibility for, or be liable for, errors, omissions or other inaccuracies in the information or for the consequences thereof. The information set out in this document is provided on an “as is” and “as available” basis and may be amended or changed in the course of implementation of Bond Connect. It is not a substitute for professional advice which takes account of your specific circumstances and nothing in this document constitutes legal advice. If you are in any doubt about the contents of this document, you should seek independent professional advice. None of the Entities or any of the companies that they operate or their respective affiliates, agents, nominees, representatives, officers and employees shall be responsible or liable for any cost, expense, loss or damage, directly or indirectly, howsoever caused, of any kind, arising from the use of or reliance upon any information provided in this document, or in the presentation given.

Disclaimer

Bond Connect Series Event

Q&A

Bond Connect Series Event

Thank You!