I. Description
ICBC Account-based Precious Metal is an investment product ICBC offers to personal customers for the trading of precious metal shares in RMB or USD through bookkeeping. Account-based gold could be converted into branded gold with physical delivery based on relevant quotation at a counter to meet customers’ needs. Physical delivery is not available for other account-based precious metals.

II. Target Customers
This product is applicable to personal customers who have the full capacity for civil conduct, possess adequate risk tolerance and have passed the product suitability assessment.

III. Varieties of Product
Account-based precious metal trading varieties include account-based gold, account-based silver, account-based platinum and account-based palladium.

IV. Trading Currency and Unit
Account-based precious metals transactions are denominated in RMB or USD, with the latter further divided into USD cash and USD spot exchange. Quotation for RMB trading account-based precious metals is expressed in “RMB/g; and funds are settled in RMB and shall be rounded up to two decimal places. For trading account-based precious metals transactions in USD, the measurement unit shall be “USD/ounce” for quotations and USD for fund settlement, rounded to two decimal places.

V. Transaction Types
By type of transaction, account-based precious metal transactions are divided into “buy first, sell later” and “sell first, buy later” transactions. The two trading modes shall be independent of each other.
“Buy first, sell later” means the customer sells existing account-based precious metals bought previously. The transaction volume of certain account-based precious metal sold by the customer shall not exceed the balance of the account-based precious metals recorded on the “buy first, sell later” account. In “buy first, sell later” mode, the transaction where customer buys account-based precious metals is called “buy to open”, while the transaction where customer sells account-based precious metals is called “sell to close”.
“Sell first, buy later” means the customer initially conducts a sale and then buys account-based precious metals in a full or partial quantity of the sale. The transaction volume of certain account-based precious metal bought by the customer shall not exceed the balance of the account-based precious metals recorded in the “sell first, buy later” account. In “sell first, buy later” mode, the transaction where customer sells account-based precious metals is called “sell to open”, while the transaction where customer buys account-based precious metals is called “buy to close”.

VI. Transaction Modes
Account-based precious metals are divided into real-time trading, pending order, conversion and automatic investment plan by the transaction mode.
i. Real-time trading means the customer buys or sells account-based precious metals instantly at quoted prices of ICBC.
ii. Pending order means the customer buys or sells account-based precious metals at the order price when the quotation meets the pending order. Pending order includes take-profit order, stop-loss order, OCO order, revolving order, one-to-many order, trigger order and supplementary order. Revolving and supplementary orders are not applicable to the “sell first, buy later” mode.
Take-profit order means the order price is better than the real-time quotation, i.e. the customer’s buying order price is lower than ICBC’s current selling price or the customer’s selling order price is higher than ICBC’s current buying price, and the order will be executed when the quoted price reaches the customer’s order price.
Stop-loss order means the order price is less favorable than the real-time quotation, i.e. the customer’s selling order price is lower than ICBC’s current buying price or the customer’s buying order price is higher than the ICBC’s current selling price, and the order will be executed when the quoted price reaches the customer’s order price.
OCO order means the combination of a take-profit order and a stop-loss order. When one of the two orders is executed, the other order will be automatically canceled.
Revolving order means the first and second orders (one is purchase order and the other is sale order) placed by the customer simultaneously that have the same variety and quantity and with buying order price lower than selling order price. When ICBC’s quoted price reaches the first order price, the first order will be executed and the second order will become valid at the same time. Afterwards, when ICBC’s quoted price reaches the second order price, the second order will be executed and the first order will become valid at the same time, and so on. The orders revolve like that and become void upon expiry or cancellation by the customers.
One-to-many order means a series (two or more, all are purchase orders or sale orders) of orders placed by the customer simultaneously that have the same currency and different varieties and arranged in the selection sequence. When ICBC’s quoted price reaches some order price, such order will be executed, and other orders will be invalidated. When the quoted price reaches multiple order prices, the front order will be executed and others will be invalidated. For the one-to-many order, six orders can be placed simultaneously at most.
Trigger order means the order which is placed by the customer and takes effect at the trigger price. When ICBC’s quoted price reaches the trigger price, the order will be validated. Afterwards, when ICBC’s quoted price reaches the trading order price, the order transaction will be concluded.
Supplementary order means the order added to the take-profit order, stop-loss order and OCO order (collectively “main order”), which could be a take-profit order, stop-loss order or OCO order. The buyer and seller of supplementary order must be opposite to those of main order. The supplementary order is a contingent order, should be placed together with the main order and won’t be validated until the main order is executed. When the main order is OCO, the customer can only choose take-profit order or stop-loss order as the supplementary order. When an OCO order is executed, only the supplementary order added in the transaction direction of the main order will take effect.
Effective periods of orders include 24 hours, 48 hours, 72 hours, 96 hours, 120 hours, within the week and 30 days. In the latter two, the invalidation time is at 4:00am on Saturday, and the 30-day effective period is 720 hours. Effective periods of take-profit, stop-loss, OCO, revolving, one-to-many and trigger orders start from order placement, and effective periods of additional orders start from main order placement, without distinction between ICBC trading and non-trading hours. If orders are not executed upon expiry, they will be invalidated automatically. The customer may cancel a non-executed order within its effective period. If there is an addition order attached to the main order, when the latter is canceled, the former will be canceled at the same time. However, when the supplementary order is canceled separately, the main order will not be affected. After validation, foreign exchange funds (for the one-to-many order, it is subject to the highest amount of funds to be frozen for one order) needed by the customer to conclude the order transaction will be frozen immediately. Before the pending order is executed, canceled or automatically invalidated, frozen funds or account-based precious metals in the relevant account are unavailable for other purposes.
iii. Conversion transaction means the customers converts the account-based precious metal of one variety held by him/her to another type of account-based precious metal or other variety of precious metal as per ICBC’s quoted price. By subject matter, it is divided into conversion between account-based precious metals, conversion of account-based precious metals into branded precious metals and conversion of account-based precious metals into accrual gold. The quantity of account-based precious metals converted by the customer shall not exceed the balance of such metals in the trading account. Conversion trading is applicable to the “buy first, sell later” mode only. Currently, the conversion trading supports conversion of account-based gold into branded gold. Other conversion trading functions are subject to ICBC rules and regulations. For conversion trading, the prices (including conversion-in and conversion-out prices) of conversion of account-based precious metals into branded precious metals and accrual gold are calculated according to relevant trading rules.
iv. Automatic investment plan (AIP) trading means the customer makes an AIP, and agrees to buy account-based precious metals at fixed frequency within a certain period of time as per planned quantity or amount. AIP is only applicable to the “buy first, sell later” mode.
AIP is based on amount or quantity. AIP by amount means the customer makes AIP at fixed amount. AIP by quantity means the customer makes AIP in fixed quantity.
AIP consists of daily and monthly AIPs. Daily AIP means the customer implements the AIP according to the plan elements every day. AIP means the customer implements the AIP according to the plan elements on a designated day of each month.
Effective periods of AIP include one year, three years, five years, eight years and non-fixed term. Upon expiry (except for non-fixed term), AIP will be terminated automatically.
The customer may make an AIP during trading or non-trading hours. Maximum number of AIPs that can be made by the customer is 30. The monthly AIP made by the customer can only be implemented on some day (1st-25th) of each month. The customer may modify the AIP during trading or non-trading hours (excluding 15:00-17:00) every day. For daily AIPs, only quantity can be modified. For monthly AIPs, only quantity and planned investment date can be modified. The AIP will be validated immediately after modification. The customer may terminate the AIP during trading or non-trading hours (excluding 15:00-17:00) every day. If the AIP made by the customer is not normally executed for three consecutive sessions, it will be terminated automatically.
For the daily AIP made by the customer before 15:00 of each day, if such 15:00 is a trading hour, then the AIP will be executed within the day. For the daily AIP made after 15:00, its execution will be postponed to the next day on which 15:00 is a trading hour. After the daily AIP is executed, it will continue to be executed on each day on which 15:00 is a trading hour. For the monthly AIP made by the customer before 15:00 of each day, if it is planned to be executed within the day on which 15:00 is a trading hour, then the AIP will be executed within the day. If it won’t be executed within the day, it will be executed on the planned execution day on which 15:00 is a trading hour. If 15:00 is a non-trading hour on the execution day, its execution will be postponed to the next day on which 15:00 is a trading hour. For the monthly AIP made by the customer after 15:00 of each day, if it is planned to be executed within the day, it will be executed on the planned execution day of next month. If 15:00 is a non-trading hour on the execution day, its execution will be postponed to the next day on which 15:00 is a trading hour. If the plan won’t be executed within the day, it will be executed on the execution day set in AIP. If 15:00 is a non-trading hour on the execution day, its execution will be postponed to the next day on which 15:00 is a trading hour

VII. Transaction Threshold and Minimum Increment
For real-time, pending order, conversion and AIP by quantity trading of RMB account-based precious metals, trading threshold is 1 g; and minimum increment is 0.1g. For AIP by amount, minimum amount is RMB100 and minimum increment is RMB100.
For real-time, pending order, conversion and AIP by quantity trading of USD account-based gold, platinum and palladium, trading threshold is 0.01 ounce and minimum increment is 0.01 ounce. For real-time, pending order and conversion trading of USD account-based silver, trading threshold is 1 ounce. For AIP by quantity, minimum amount is 0.01 ounce and minimum increment is 0.01 ounce. For AIP trading of USD account-based precious metals by amount, minimum amount is USD10 and minimum increment is USD10.
ICBC may adjust minimum quantities and minimum increments according to market conditions. The customer is not subject to trading threshold or minimum increment requirements if the customer sells an account-based precious metals product in full in a trading sub-account for “buy first, sell later” to close the position or buys an account-based precious metals product in full in a trading sub-account for “sell first, buy later” to close the position.

VIII. Transaction Quotation
ICBC offers transaction quotation to customers based on comprehensive consideration of the movements of prices in the global precious metal markets, exchanges rate of RMB and domestic market liquidity, and may adjust the transaction quotation in light of market conditions. Transaction quotation for account-based precious metals includes bank’s buying rate (the customer’s selling rate) and selling rate (the customer’s buying rate) and conversion quotation.
Bank’s buying rate refers to the quotation at which ICBC buys account-based precious metals from the customer (i.e. the customer sells account-based precious metals to ICBC).
Bank’s selling rate refers to the quotation at which ICBC sells account-based precious metals to the customer (i.e. the customer buys account-based precious metals from ICBC).
Conversion quotation of account-based precious metals refers to the quotation at which the customer conducts conversion between account-based precious metals and between account-based precious metals and branded precious metals or accrual gold. For conversion between account-based precious metals, the quotation is also known as rate, i.e., the ratio of conversion-out price of account-based precious metal to conversion-in price of account-based precious metal. The conversion-out price refers to the price at which the customer sells account-based precious metals to ICBC. The conversion-in price refers to the price at which the customer buys account-based precious metals from ICBC. For conversion of account-based precious metals into branded precious metals, the conversion-out price refers to the price at which the customer sells account-based precious metals to ICBC. The conversion-in price refers to the price at which the customer buys branded precious metals from ICBC sales channels. For conversion of account-based precious metals into accrual gold, the conversion-out price refers to the price at which the customer sells account-based precious metals to ICBC. The conversion-in price refers to the ICBC’s accrual gold selling price at which the customer buys accrual gold.

IX. Trading Hours
Trading hours for account-based precious metals shall be as follows:
i. Outlets:
Monday-Friday: actual business hours of outlets.
ii. E-banking channels
Monday: 07:00-24:00
Tuesday-Friday: 00:00-24:00
Saturday: 00:00-04:00
ICBC may suspend all or part of account-based precious metal transactions on major interpublic holidays, China’s public holidays and actual days arising from holiday adjustments or in the case of natural disasters, wars or other unpredictable, unavoidable and unconquerable events, or international political or economic events or emergencies or communications failure, system failure, power interruption, suspended market trading or other unexpected incidents or financial crisis or national policy changes, and shall, where possible, make a prior or timely announcement to customers on its official website (http://www.icbc.com.cn) or through other channels. During suspension, real-time trading and pending orders cannot be processed, pending orders that have been accepted cannot be executed, but the validity period of pending orders is not affected.

X. Account Management
For account-based precious metal transactions, the customer shall designate his or her personal multi-currency debit card or settlement account current passbook opened with ICBC as the fund account for account-based precious metal transactions. After the customer’s application is accepted, ICBC will automatically open the customer’s trading account for account-based precious metal transactions. ICBC will automatically open the customer’s security deposit account when the customer conducts the first “sell first, buy later” transaction of account-based precious metal, and transfers security deposit.
i. Fund account
Fund account is used for accounting the paying and receiving of funds in the customer’s account-based precious metal transactions. USD cash and spot exchange in the cash account shall not be converted to each other through account-based precious metal trading. Proceeds from sale of account-based precious metal bought in USD cash shall still be USD cash, and proceeds from sale of account-based precious metal bought in USD spot exchange shall still be USD spot exchange. ICBC’s provisions on account management are applicable to the fund account.
ii. Trading account
Trading account is used for accounting the paying and receiving of quantities in the customer’s account-based precious metal transactions. Account-based gold, silver, platinum and palladium shall have independent trading sub-accounts, and precious metals on these sub-accounts don’t accumulate or offset with each other. Account-based precious metals on these sub-accounts don’t accumulate or offset with each other. The “buy first, sell later” transactions and the “sell first, buy later” transactions shall have independent trading sub-accounts, and account-based precious metals on these sub-accounts don’t accumulate or offset with each other. Account-based precious metals in the “buy first, sell later” trading account can apply for pledge loans according to the pledge loan management regulations of ICBC.
iii. Security deposit account
Security deposit account is used for calculating receipt and disbursement of the security deposit for “sell first, buy later” as well as its profit and loss. Security deposit account is divided into RMB security deposit sub-account, USD cash security deposit sub-account and USD exchange security deposit sub-account. These three types of sub-accounts are mutually independent; and security deposits on these sub-accounts don’t accumulate or offset each other. Security deposits for trading of various account-based precious metals and on same-currency security deposit sub-accounts can be consolidated. Security deposits on security deposit accounts can’t be directly withdrawn or used to apply for certificates of deposits or provide guarantee to other debts.
In one business area of ICBC (a branch in a municipality directly under the Central Government, the banking department of a provincial branch, a branch in a city divided into districts, autonomous prefecture or league or a branch in one of selected cities that are not divided into districts), the customer shall designate one fund account only and open only one trading account and one security deposit account. But the customer may adjust the local personal multi-currency debit card or settlement account current passbook corresponding to the fund account.
If an account-based precious metal transaction has been conducted by the customer before the product introduction is published and different fund accounts have been designated for “buy first, sell later” and “sell first, buy later” mode in the same region, the fund account may correspond to multiple trading and security deposit accounts. However, after a trading account or a security deposit account is canceled, it cannot be opened again until all trading and security deposit accounts are canceled.

XI. Interest Accrual and Charges
Funds on the customer’s fund account accrue interests based on requirements of the government regulatory departments and the demand deposit rate and interest accrual method published by ICBC; balance of account-based precious metals on the customer’s trading accounts does not accrue interests. Funds on the customer’s security deposit account do not accrue interests.
ICBC does not charge customers any fee for buying or selling account-based precious metals at quoted prices.

XII. Risk Disclosure
The customer shall fully know and understand possible risks before applying for account-based precious metal transactions. Below are a list of main risks and objective analysis of risk factors made by ICBC according to current market conditions and characteristics of account-based precious metal products. It is not an exhaustive list of risks in account-based precious metal transactions and none of the information below represents any market forecasts by the bank.
i. Policy risk: account-based precious metals are products designed according to relevant laws and regulations currently in force. Any changes in the state’s macro policies, laws or regulations may affect normal account-based precious metal trading activities of customers and halt the business, which will cause losses to customers.
ii. Market risk: Any unfavorable movements of account-based precious metal prices in the global markets may cause losses to customers. In the circumstance that the customer first sells and then buys metals, wild fluctuation of the market prices may result in shortage of the customer’s security deposits and further trigger forced liquidation of the balance that the customer holds from the “sell first, buy later” transactions.
iii. Liquidity risk: Customers who hold account-based precious metal may face the risk of illiquid account-based precious metal when they have any demand for funding during non-trading hours; the expansion of bid-ask spread of ICBC due to market liquidity factors may put customers at a disadvantaged liquidity position.
iv. Operational risk: Customers may suffer unnecessary losses due to leakage of identity information, improper use of identity tools or operational errors.
v. Force majeure and emergency risk: Customers may suffer losses due to natural disasters, wars or any other unforeseeable, unavoidable or unconquerable events or international political, economic or other emergencies or communication interruption, system faults, power failure, market suspension or other unexpected events or financial crisis or national policy changes, which may affect normal account-based precious metal trading activities of customers.

XIII. Supplementary Rules
Unless otherwise specifically stated, time and dates herein refer to Beijing Time. This product introduction is formulated and revised by ICBC.
This product introduction is formulated and revised by ICBC that will give a prior notice of any revision to this Product introduction on its official website. Any customers who disagree with such revision during the notice period may raise their queries or comments through telephone banking 95588 or cancel their account-based precious metal transactions before the new product introduction becomes effective. Customers failing to cancel upon expiration of the notice period or continue relevant operations after the notice period shall be deemed as acceptance of the revised product introduction.

Note: The information provided on the page is for reference only. Specific businesses are subject to announcements and rules of local outlets.