Regulations Governing Foreign Exchange Business of Securities Enterprises Article 13

A securities enterprise’s coverage of foreign exchange positions arising from its foreign exchange business shall be carried out by its head office through an authorized bank, an offshore banking unit or an overseas financial institution.A securities enterprise shall heed its foreign exchange risk and draft its own foreign exchange risk management rules based on the foreign exchange business conducted. After the rules have been passed by its board of directors (council members) or the head office (or regional headquarter) in the case of a foreign securities firm, all its offices shall abide by these rules and conduct audits regularly.