Code of Conduct
Article 1: General Principals
Article 2: Criteria to qualify for the Shibor Panel
Article 3: Obligations of Panel Banks
Article 4: Obligations of the Specific Publisher
Article 5: Tasks and Rights of the Shibor Working Group
Article 6: Supervision and Administration

1.1 The People's Bank of China (PBC) stipulates the rules for administrating the mechanism of formalization, announcement and supervision of benchmark for China's money market.
1.2 Shibor(Shanghai Interbank Offered Rate)is a simple, no-guarantee, wholesale interest rate calculated by arithmetically averaging all the interbank RMB lending rates offered by the price quotation group of banks with a high credit rating.
1.3 Shibor working group (hereafter the "group") of PBC decides and adjusts the members of the Panel Banks, supervises and administrates the Shibor operation, and regulates the behavior of the quoting banks and the specified publisher in accordance with the Rules.

2.1 The panel consists of commercial banks which meet the following items.
2.2 More specifically, the items will be considered:
2.2.1 Panel banks must be primary dealers in the open market or market makers in the FX market.
2.2.2 Banks can qualify for the Panel if they are active players in china's money market and if they are able to handle good transaction volume, sound transaction continuity and small price discrepancy. The transaction volume refers to the total volume of quoting banks' transaction in china's money market including the open market transaction, interbank offering, bond repo, cash bond transaction, money market derivatives transaction and so on.
2.2.3 Panel banks must be banks of first class credit.
2.2.4 Panel banks must have established internal yield curve and fund transfer pricing mechanism, and have high interest rate pricing ability.
2.2.5 Banks wishing to apply for a seat on the panel must disclose the annual report of last year audited by the certified public accountant through the group-appointed media such as
2.2.6 Panel banks must meet other criteria in favor of quotation.
2.3 Banks that are in conformity with the items above and wishing to be panel banks should submit the application and relevant materials to group before December 1st. the group decides the member list of the Panel for next year.

3.1 Panel banks must supply the bilateral quotation of borrowing and lending. The quotation rate which is a reference rate for other money market rate is a simple, no-guarantee, wholesale interest rate based on market condition. This quotation must be independent and no duplication.
3.2 Quotation must be finished on the quotation page offered by National Interbank Funding Center(NIFC) before 10:55 a.m. (Beijing time) every business day.
3.3 Panel banks must quote eight maturities (overnight, 1-week, 2-week, 1-month, 3-month, 6-month, 9-month, 1-year). The rate codes are O/N, 1W, 2W, 1M, 3M, 6M, 9M, 1Y(O/N stands for overnight, W stands for week, M stands for month, Y stands for year).
3.4 The rate is quoted on actual/360 day basis (%, T+0) with four digits behind the comma.
3.5 Panel banks must establish mechanism for emergency to ensure the quotation for all maturities every day.

4.1 NIFC is authorized as the specified publisher for Shibor.
4.2 At 11:00 AM each business day, Shibor of the eight maturities will be published at after arithmetically averaging all the quotation of each bank, with the four highest and four lowest quotation excluded. The bid and ask price of each bank will be published at the same time.
4.3 NIFC will notice the panel banks if their quotations are false. Moreover, National Interbank Funding Center will calculate the Shibor with available quotation if some banks do not quote any price and inform the group in written form.
4.4 NIFC is responsible for the maintenance of shibor system.
4.5 NIFC will establish the back-up and emergency mechanism for Shibor to ensure the daily operation and historic data storage.

5.1 The group reviews new applications for a seat on the panel and regulates and adjusts the members of the panel in accordance with article 2.
5.2 The group organizes the panel banks to quote Shibor and regulate the behavior of the specified publisher for Shibor information publication.
5.3 The group announces the Shibor operation condition and evaluates the panel banks according to their quotation quantity based on the behavior of month, season and year.

6.1 The specified publisher authorized by the group supervises and evaluates the quotation quantity of the panel banks. The specified publisher must warn and request the panel banks to correct error and inform the group in written form if panel banks do not comply with the obligations under this code. The specified publisher must record and issue the incompliance behavior and correction situation of panel banks and monthly report to the group on the Shibor operation.
6.2 The group evaluates the quotation record of each panel bank annually, decides and proclaims the new elimination scheme before the first ten working days of next year. The removed bank could not apply for a seat on the panel next year.
6.3 The group establishes the evaluation indicator system which is modified annually and proclaimed before the first ten working days of next year.
6.4 The group supervises and administrates the specified publisher and evaluates the responsibility of the specified publisher.