Regulations Governing Foreign Currency Bond Brokerage, Proprietary Trading, and Investment by Bills Finance Companies Article 8

Each bills finance company shall set its own upper limit on foreign currency risk within the limit of 15 percent of its net worth, and shall report it to the Central Bank for approval.The term "upper limit on foreign currency risk" in the preceding paragraph means the net position in foreign currency assets minus foreign currency liabilities, plus positions in financial derivatives.When the calculation of any limit under these Regulations involves currency conversion, the bills finance company shall calculate it using the closing foreign exchange rate posted by its designated major correspondent bank, and shall follow the consistency principle.