The external guarantees offered by enterprises in the PFTZ shall not be subject to the restrictions on the proportion of net assets between the guarantor and the guarantee, the profitability of the guarantee, or the correlation between the two parties’ equities.

The enterprises in the PFTZ shall, when entering into external guarantee contracts, conduct the guarantee registration and the compliance verification pursuant to relevant provisions, and comply with the restrictions on the use of guarantee funds.

Article 15 The enterprises and non-bank financial institutions in the PFTZ shall pay guarantee fees to overseas parties without verification and approval, and shall directly purchase the foreign exchange at a bank with the guarantee fee payment notice.

The bank shall, when processing the payments of foreign exchange, confirm that the related guarantee business are in line with the relevant provisions of the SAFE Shanghai.

Article 16 The requirement for the overseas credit services provided by the finance leasing companies in the PFTZ to be verified and approved on a transaction-by-transaction basis shall be replaced by a registration management system.

Article 17 The integrated pilot management system has been adopted for the centralized management of foreign currency by headquarters of multi-national companies, as well as foreign currency cash pool and international trade settlement center. The domestic account of the foreign currency cash pool and the special account of the international trade settlement center opened by an enterprise in the PFTZ shall be renamed as the Domestic Foreign Exchange Funds Master Account (“Domestic Account”) and the functions thereof shall be incorporated into the Domestic Account.

The Domestic Account shall, in addition to the services as described in Article 8 and the international trade settlement center business, provide centralized management of the capital funds, foreign debts and the liquidated assets of domestic member entities.

An eligible enterprise in the PFTZ may also set up an International Foreign Exchange Funds Master Account (“International Account”) where operations require. The flow of funds between the International Account and overseas is free of foreign exchange restrictions and controls. Funds may be freely transferred between the Domestic Account and International Account of the enterprise within the specified limit.

The requirements on the administrative verification and approval of all pilot operations launched by an eligible enterprise in the PFTZ through its Domestic Account and International Account shall be replaced by a record-filing procedure.

Chapter IV Foreign Exchange Market Business

Article 18 A bank shall conduct foreign exchange settlements for the commodity derivative transactions of the enterprises in the PFTZ, in line with the following provisions:

1．The bank shall comply with the provisions of relevant departments of financial regulation, including obtaining necessary prior business permits and observing necessary registration procedures. The bank branch providing such services shall comply with the internal administrative provisions of the bank, including obtaining necessary prior authorization.