（Edited by freelance Chinese translator li – English to Chinese translation or Chinese to English translation services- financial translation）
19. What is non-trade transfer? How to apply for non-trade transfer service?
Non-trade transfer is the ownership transfer of bond due to Court detention, insolvency liquidation, and gift or estate inheritance.
19. 什么是非交易过户？如何办理非交易过户业务？
非交易过户是指由于法院扣划、破产清偿、赠予、遗产继承等原因造成债券所有权的转移。
Three situations of non-trade transfer:
(1) Arising from Court detention, insolvency liquidation.
Concerned Justice Department should fill in Bond Account Application Form at designated ICBC Business Office, produce judicial documents and the custody account to receive the transfer. Transfer will be made after approval from Business Department.
办理非交易过户包括以下3种情况：
（1）因法院扣划、破产清偿原因造成的非交易过户：
须由相关的司法部门到指定营业网点柜台办理，提供相应的司法文件和转入的托管账户，并填写《债券账户业务申请表》，经业务主管部门批准后办理。
(2) Due to acceptance of a gift
Donor fill in Bond Account Application Form at designated ICBC Business Office, surrender Bond Trading Card, Bond Account Card and own valid ID document, custody account of the person to accept the gift. Transfer will be made after approval from Business Department.
（2）因赠予而发生的非交易过户：
由赠予人到指定营业网点柜台办理，提供债券交易卡、债券账户卡、本人有效身份证件、受赠人的托管账户，并填写《债券账户业务申请表》经业务主管部门批准办理。
(3) Owing to estate inheritance.
Applicant applies at designated ICBC Business Office Counter should surrender judicial document, Bond Trading Card, Bond Account Card，valid ID document of applicant, and custody account of the person to receive the inheritance. Transfer will be made after approval from Business Department.
（3）因遗产继承而发生的非交易过户：
由申请人到指定营业网点柜台办理，提供相应的司法文件、债券交易卡、债券账户卡、申请人有效身份证件、受赠人的托管账户，经业务主管部门批准后办理。
20. How the rule of enquiry password at China Government Securities Depository Trust & Clearing Company is specified? What happen if the password is forgotten?
Enquiry password is the last 6 digits of ID No (Individual Investor) or Organizational Institution Code Card (Institutional investor). Zeroes are inserted in front if less than 6 digits.
20. 在中央国债登记结算公司的查询密码是怎么规定的？如该密码遗忘了怎么办？
投资人在中央国债登记结算公司的查询密码为身份证件号（个人投资人）或组织机构代码证（机构投资人）的后六位数字，不足六位的在前面补零。
Should password be forgotten, investor can initialize the password (changed back to raw password) at the ICBC Business Office where this service is opened with own valid ID document.
投资人查询密码遗忘的，投资人可持有效证件到我行开办此项业务的网点进行密码初始化（即变更为原始密码）。
21. What is the difference between Net Price and Full Price?
Net price is the bond price after deducting interest accrued by nominal yield of bond. Full price is net price plus accrued interest.
21. 净价和全价有什么区别？
净价是指扣除按债券票面利率计算的应计利息后的债券价格。全价等于净价加上应计利息。
Book-entry bond is traded in net price, quoted and closed at the price excluding interest naturally grows. Trading price using net price does not include accrued interest. Formation and changes in the price can reflect more accurately T-Bond's intrinsic value, relationship of supply and demand and interest rate trend.
记账式债券交易采用净价方式报价，即以不含自然增长应计利息的价格进行报价并成交。净价交易方式中的交易价格不包含应计利息，其价格的形成及变动能够更加准确地体现国债的内在价值、供求关系及市场利率的变动趋势。
Funds used for trading bond uses full price to settle.
Full buy price = net buy price + accrued interest.
Full sell price = net sell price + accrued interest.
Accrued interest = coupon rate/365*number of accrued days *face value of bond (100).
In quotation system, accrued interest is accurate up to 19 decimal places, but quotes are displayed up to 2 decimal places.
Clearing with investors is at full price; settlement amount = (trading net price + accrued interest).
债券买卖资金采用全价法交割
买入全价=买入净价+应计利息
卖出全价=卖出净价+应计利息
应计利息=票面利率/365*已计息天数*债券面值(100)
在报价系统中，应计利息精确到小数点后19位，但报价显示只保留2位
与投资者进行资金清算时，按全价计算：结算金额=（买卖净价+应计利息）
E.g.: 020006, using July 17 as example. Value date of bond is June 6, number of holding days is one month and 11 days, or 41 days. Interest for bond denominated in 100 Yuan is 100*2%/365*41=0.22 Yuan. If net sell price is 100 Yuan, then full sell price is 100.22 Yuan. Net price trades are listed in net price. Full price is used to calculate actual payment and receipt.
如020006，以7月17日为例，债券起息日为6月6日，持有天数为1个月零11天，即41天，100元面值的债券内含利息为100*2%/365*41=0。22元，若卖出净价为100元，卖出全价即为100.22元。净价交易是以净价挂牌，按照全价计算实际的资金收付。
According to Rules, OTC bond is traded in net price in order to truly reflect the changes of bond value for investors to analyze movements. If value of bond does not change, full price will rise naturally as number of holding days increase, which will create a misconception that bond appreciates when consider solely full price. Only changes in net price can reflect changes in bond value. Net sell price of this bond is 100 Yuan since issue date till today, no value increased, yet the full price has been up to 100.22 Yuan.
根据规定，柜台债券交易实行净价交易，其意义在于净价能真实地反映债券价值的变动情况，有利于投资人分析和判断债券走势。因为在债券价值不变的情况下，随着持有天数的增加，全价自然上升，若只观察全价，则产生债券升值的错觉。只有净价变动，才表明债券价值变动。本只债券从发行日至今日的卖出净价一直为100元，没有任何升值，但全价却上升至100.22元。
22. How to choose the opportunity to buy or sell?
Under 3 situations:
(1) If net sell price of Bond does not change, there is no difference for investors when to buy. Full price increases as time goes by. It only indicates the increase of interest included on the bond. Investor has to increase payment according to full price. But the increased portion is returned to investor through the interest included in bond. Therefore, investor's cost will not rise if net price remained unchanged.
22. 如何选择买卖时机？
分三种情况：
（1） 若债券卖出净价未发生变化，投资人任何时候买入债券都没有差别。全价随时间的增加而增加，只表明债券内含的利息在增加，投资人按全价支付的资金增加了，但增加的部分通过债券内含利息返还给投资人。因此，净价不变，投资人成本没有增加。
(2) Trading involves difference in prices. Buy and sell on the same day will definitely lose, since buy price is lower than sell price in Bank, but this means buy price is higher than sell price to investors. Investor will lose if the holding period is too short. Hence, one should calculate the minimum holding days so that the yield after subtracting buy/sell spread from the implied interest during the holding period is higher than the interest income from instant-saving deducted tax. For example: net buy price of Bond 020006 denominated in 100 Yuan is 99.95 Yuan, net sell price is 100.01 Yuan, spread is 0.06 Yuan, accrued interest is 0.22 Yuan, 100*2%/365* no. of days - 0.06≥100*0.72%/365*no. of days*(1-20%). The result is no less than 15 days. This means that investor who holds bond for more than 15 days will definitely have better return from current deposit. The longer the holding days, the better the yield will be.
（2） 买卖有价差，当日买当日卖必然会亏本，因为银行的买入价低于卖出价，即相对于投资人而言，买价高于卖价，持有时间太短，投资人会亏本。因此，应计算一个不亏本的最短持有天数，即持有期间的内含利息减去买卖价差后的收益应高于存活期的税后利息收入。如，100元面值债券020006买入净价99.95元，卖出净价100.01元，价差为0.06元，应计利息0.22元，100*2%/365*天数-0.06≥100*0.72%/365*天数*（1-20%），计算结果，天数≥15天，这意味着投资人只要持有15天以上，肯定比存活期划算。时间越长，收益越多。
(3) Price of OTC bond is closely related to market changes. Sharp judgment will bring additional yield. Bond price is inversely proportional to market interest rate. Interest rate goes down will cause T-Bond price goes up, vice-versa. Investor can buy in bulk if he expects interest rate will decline. Hence, significant return will be gained to sell at a time when interest rate really falls to cause bond price soar. If investor forecasts interest rate will rise, he can sell the bond on hand to gain first. Later, he can buy when interest rate really rises to cause bond price down. Real yield of bond at this time will be higher than coupon rate.
（3） 柜台债券价格与债券市场变化密切联系，若准确判断，可获得额外的升值收益。债券价格与市场利率成反比，利率降低，债券价格上升，利率上升，则债券价格下跌。若投资人预计利率将降低，可大量买入债券，待利率真正降低导致债券价格上涨时，卖出债券即可获得高于利息的可观收益。若预计利率将上升，投资人可卖出手中债券，先获利，待利率真正上升导致债券价格下跌时，再买入债券，这时的债券实际收益率高于票面利率。
23. What are the risks involved in OTC trades?
Main risk is interest rate risk. Loss can be incurred when changes in interest rate cause variation in bond price. When interest rate jump and T-Bond price down after investor buy Bond, sell Bond at this time will cause loss (buy at high and sell at low). If investor continues to hold Bond, no actual loss since he can earn fixed nominal interest.
23. 柜台交易有何风险？
柜台债券交易的主要风险是利率风险，即利率变动导致债券价格变动而可能产生的损失。若投资人在买入债券后，遇利率上升，债券价格下跌，此时卖出债券将产生损失（高买低卖）。但如果投资人继续持有债券，则可获得固定的票面利息收入，不产生实际的损失。
If investor holds the Bond shorter than the minimum, interest income will be less than that of current deposit.
若投资人持有债券的时间少于最短持有天数，则利息收入低于活期存款的利息收入。
24. What are the advantages of OTC bond over deposit?
Again taking 020006 with the lowest coupon rate for example, the coupon rate is only 2%, a rate lower than 5-year fixed deposit. Apparently this is not attractive. However, OTC bond has higher liquidity than fixed deposit. It may be a good move so long as it is not held till maturity.
24. 柜台债券与存款比较有何优点？
仍以票面利率最低的020006为例，从票面利率看其仅为2%，低于5年期定期存款，似乎不划算。但柜台债券流动性高于定期存款，只要不是一直持有到期，就不见得不划算。
Ex. 1: A fixed deposit of RMB 10,000 for 5 years, withdrawn a year later for emergency. Bank will only pay interest at current deposit rate. Actual interest income is 10000*0.72%*（1-20%）=57.6 Yuan. In the case of buying OTC bond and selling a year later, actual interest income is 10000*2%-0.06*10000/100=194 Yuan, 136.4 Yuan more than the former, or 3.4 times yield. Hence, as long as it is possible to withdraw in advance, it is very disadvantageous to deposit as fixed deposit.
举例一：假如1万元存5年期定期存款，满1年遇急用钱时，提前支取，银行只按活期存款利率付息，实际利息收入为10000*0.72%*（1-20%）=57.6元。若买入柜台债券，满1年后卖出，实际利息收入为10000*2%-0.06*10000/100=194元，比前者多收入136.4元，相当于3.4倍的收益。因此，只要存在提前支取的可能性，存定期是非常不划算的。
Ex. 2: Interest rate of 1-year fixed deposit is 2.25%, 1.8% after deducting interest tax. Coupon rate of holding OTC bond for 1 year is 2%, but interest paid annually, higher than rollover 1-year fixed deposit.
举例二：1年期定期存款的利率为2.25%，扣除利息税后为1.8%。持有柜台债券1年，票面利率为2%，每年付息一次，高于滚动蓄存1年期定期存款。
Ex. 3: Assume in future interest rate will be driven down which mean bond price will eventually go up. Investor not only gets the nominal yield held to maturity, but also gains from bid-ask spread.
举例三：假设未来利率下调，债券价格随之上升，投资者不但可以获得持有期间票面利率的收益，还可以从买卖价差中获利。
Ex. 4: Liquidity of OTC bond is similar to time-demand deposit. For a 3-year time-demand deposit withdrawn after 3 full months, accrued interest is 60% of 1.71% (3-month rate), real yield is 0000*1.71%*60%/12*3*（1-20%）=20.52 Yuan. Yield for holding OTC bond for 3 months will be 10000*2%/12*3-0.06*10000/100=44 Yuan, with 23.48 Yuan more, or 2.1 times.
举例四：柜台债券流动性类似于银行定活两便存款，假如存3年期定活两便，满3个月支取，利率按3个月利率1.71%打6折计算，实际收益率为10000*1.71%*60%/12*3*（1-20%）=20.52元。而持有柜台债券3个月，将获得收益10000*2%/12*3-0.06*10000/100=44元，多收入23.48元，相当于2.1倍。
Conclusion: Owing to the strong liquidity of OTC bond, it can be treated as a "Current Deposit" with yield higher than fixed deposit instead of a 7-year bond. Investor can use a majority of idle daily expense to buy OTC bond without affecting the use of cash anytime, yet with handsome return.
结论：因为柜台债券有很强的流动性，我们不必把它当作7年期债券看待，而是把它看成是享受高于定期存款收益的“活期存款”。因此，投资人可以将闲置的用于日常支付的大部分钱用于购买柜台债券，不影响投资人随时用钱，收益却很可观。
