1. Question: What is clean price transaction of bond?

Answer: Clean price transaction refers to transaction that quote with price excluding accrued interests of natural increasing.

2. Question: Among bonds of the Shenzhen Stock Exchange (SZSE) which bond is traded in clean price transaction?

 Answer: The treasury bonds of the SZSE have started the transaction early in 2002, and the corporate bonds, enterprises bond and convertible bonds with detachable call warrants use the transaction also. However, convertible corporate bonds and to-be-listed exchangeable bonds will still be transacted in full price because of shares swap and shares swap rights.

3. Question: Why was clean price transaction implemented?

Answer: Without accrued interest under the mode of clean price transaction, the pricing and price change can reflect the internal value, demand and supply relation and market interest rate more accurately. Besides, clean price transaction of bond is the prevailing practices internationally.

4. Question: How is the settlement price considered in clean price transaction?

Answer: Under the clean price transaction mode, clean price is used in declaring and transaction while settlement is still in full price, which is the total amount of transacted price and accrued interest.

5. Question: How to calculate accrued interest of bonds?

Answer: Accrued interest= coupon rate÷365 (days) ×interest-bearing days

Interest-bearing days are days between the starting day and ending day of treasury bonds and enterprises bonds while interest-bearing days for corporate bonds are days between starting day and the day before the settlement day.

When the coupon rate cannot be divided exactly, computer system calculates with total amount of defaulted numbers. Accrued interest of delivery order will be rounded to nearest whole number and expressed in yuan retaining two decimal.

6. Question: How does market information show under bonds clean price transaction mode?

Answer: Biding system and publicizing system of market information will show the clean price and accrued interest per 100 yuan.

Investors should note that market will fluctuate on 30 March, 2009, the first day corporate bond, enterprise bond and convertible bonds with detachable call warrants adopt clean price transaction. Bond price will be split into clean price and accrued interest per 100 yuan. There will be a gap in the K-line graph.

7. Question: Do bonds still use the clean price mode for online offering?

Answer: Bonds with clean price transaction still use full price mode for online offering through the transaction system of the SZSE, and accrued interest amount under clean price system will not be calculated.