The 3rd Party Depositary

The 3rd Party Depositary refers to a service that Hua Xia Bank as an independent third party provides custody, transfer, saving and withdrawal of securities transaction settlement funds for investors who have applied such service. It capitalizes on the advanced banking network, technology system and professional services, facilitates saving, withdrawal and transfer of investment funds, and safeguards the customers’ securities transaction settlement funds.

Business Process of Bank Transfer:

I. Features
Safe and reliable 3rd Party Depositary for investment funds
Hua Xia Bank provides custody for customers’ investment capital, prevents risks of capital appropriation and safeguards customer’s money.
Convenient and efficient multi-channel money transfer
Institutional investors can transfer capital at the Bank’s counter, via Internet Banking, at the Securities brokerage counter and by online transactions.

II. How to Apply
(1) Go to the securities brokerage office and appoint Hua Xia Bank as the Custody Bank
The institutional investor opens the securities capital account at the securities brokerage office and appoints Hua Xia Bank as the Custody Bank by signing the Bank Custody Tripartite Agreement for Transaction Settlement Funds.
(2) Go to Hua Xia Bank to confirm the bank custody arrangement.
The institutional investor goes to the Hua Xia Bank branch office where it opens the settlement account and fills out the Third-party Custody Service Application with specimen seals and signature to confirm the bank custody arrangement. Required supporting materials include the Bank Custody Tripartite Agreement for Transaction Settlement Funds, valid ID document of the authorized person and of the legal representative, original business licence, original of verified copy of the corporate code certificate, power of attorney of the legal representative affixed with the company’s official seal.

III. Internet Banking Business Process:
Log on the homepage of Hua Xia Bank, click the “Bank-Securities 3rd Party Depositary” on the left hand side, enter the bank account number and password for 3rd Party Depositary and go to use the Internet banking after verification.
Internet Banking Functions:
General Enquiry: 1. securities fund account balance enquiry; 2. account balance enquiry; 3. transaction details enquiry; 4. customer details enquiry; 5 account relationship enquiry.
Online Transaction: 1. securities to bank; 2. bank to securities
Supporting Services: 1. change the password for 3rd Party Depositary; 2. change details of institutional clients
Note: The institutional investor need to apply for the internet banking first.

IV. Tips:
1. The business hours for the 3rd Party Depositary service are from 9:00 to 16:00, Monday to Friday. Please see the specific rules of your securities brokerage.
2. The type and number of the identity documents used in opening the securities account at the securities brokerage must be the same as those used in opening the fund account at the Bank.
3. Only the A share RMB service is available at the Bank.

V. List of Securities Brokerage Partners for 3rd Party Depositary Services of Hua Xia Bank( Updated on April 16)

VI. Bank-Securities 3rd Party Depositary FAQ
1. Is there a deadline for customers to go to the custody bank for confirmation after the customer has appointed a custody bank at the securities brokerage?
A: No. The procedures of appointing the custody bank is not completed until the customer’s confirm at the appointed bank. Before confirmation, the customer can not deposit or withdraw money from the bank account.

2. How can a customer who previously appointed another bank as the custody bank change to use the 3rd Party Depositary service of Hua Xia Bank?
A: First of all, the customer needs to make sure that the securities brokerage firm he/she is using is a partner of Hua Xia Bank for 3rd Party Depositary service. If so, the customer can change the 3rd Party Depositary bank at the counter of the securities brokerage. Please follow the steps described below:
(1) Initiate “securities to bank”. On Day 1, the customer initiates “securities to bank” through the securities brokerage or the bank to transfer all the money in his/her securities fund account to the bank card of the previous appointed bank, thus the balance in his/her securities fund account is 0.
(2) Cancel the 3rd Party Depositary bank. On Day 2 (the balance in his/her securities fund account is 0 and no transaction such as bank-securities transfer, dividend payment, and buying or selling shares takes place), the customer goes to the office of the securities brokerage where he/she opens the securities account with required materials and cancel the custody bank. The previous Client Agreement is terminated.
(3) Appoint Hua Xia Bank as the custody bank. After cancellation of the original custody bank, the customer can immediately appoint Hua Xia Bank as the custody bank at the office of the securities brokerage and confirm at one of Hua Xia Bank business office.
Circumstances in which customers may fail to change the custody bank include: 
1) On the day of canceling the original custody bank, there is money left in the customer’s securities account; 
2) On the day of canceling the original custody bank, there are pending collections or payments in the customer’s securities account;
3) On the day of canceling the original custody bank, there are bank-securities transfer transactions.

3. Can we choose more than one securities brokerage to apply for the third-custody services? How?
A: For some reason, investors may have accounts at more than one securities brokerage. The Hua Xia Bank 3rd Party Depositary System supports services of one single bank settlement account linked to multiple securities brokerage firms, provided that those firms that the investor has used the custody services are partners of Hua Xia Bank. The application process is similar to ordinary 3rd Party Depositary application process, except that the customer will have to go to each securities brokerage to apply for 3rd Party Depositary respectively and then confirm at the corresponding Hua Xia Bank business offices.

4. How can a signed customer terminate the 3rd Party Depositary service at Hua Xia Bank?
(1) Initiate “securities to bank”. On Day 1, the customer initiates “securities to bank” through the securities brokerage or the bank to transfer all the money in his/her securities fund account to the bank card of the previous appointed bank, thus the balance in his/her securities fund account is 0.
(2) Terminate the 3rd Party Depositary service. On Day 2 (the balance in his/her securities fund account is 0 and no transaction such as bank-securities transfer, dividend payment, and buying or selling shares takes place), the customer goes to the office of the securities brokerage where he/she opens the securities account with required materials and terminate the custody service. The previous Client Agreement is terminated.

Entrusted Collection

Agency Loan

Payroll Payment Services

Introduction 
The Payroll Payment Service refers to a service Hua Xia Bank accepts appointment of the employer to transfer wages to the current savings account or to the Hua Xia Card of employees at the organization at Hua Xia Bank in one or multiple transfers within the specified period.

Features 
Convenient and prompt, safe, and rich in variety.
1. Convenient and prompt: 
The service enables convenient, safe, and prompt services for the employer. Employees of the organization get credited of their salaries fast and efficiently with interest accrued in time.
2. Safe: 
No cash is exchanged between the entrusting institution and its staff during the salary payment process, which frees them from frustrations and risks in withdrawal and cash delivery. It also effectively avoids losses in counterfeits.
3. Rich in Variety: 
The customers using the Hua Xia Card for salary payment are also entitled for quality Hua Xia Card services featuring diverse channels and great variety.

Price 
Hua Xia Bank charges a service fee proportionate to the total payroll amount or on a flat rate. The fee rate and means of fee payment are determined under negotiation of both parties involved.
 
Target Clients
Staff and retirees of corporate and other organizations
 
Service Channel
Hua Xia Bank business offices and Internet banking
 
Service Flow 
1. Sign the Payroll Payment Service Agreement: 
The employer provides the staff payroll list and corresponding electronic documents and signs the Agreement with Hua Xia Bank. The Agreement covers the obligations of both parties, operation procedures, and agency fee.
2. Open personal accounts for employees: 
According to the employer's payroll documents, Hua Xia Bank completes the batch bankcard (passbook) account opening procedures according to Hua Xia Bank's regulations of opening personal savings accounts for employees on payroll.
3. Deposit the payroll fund: 
The employer deposits the payroll fund into the Hua Xia Bank's business offices.
4. Collect the service fee: 
The Hua Xia Bank's agency collects the service fee as specified in the agreement.
5. Transfer salaries to employees’ personal accounts: 
Hua Xia Bank transfers money to employees’ personal accounts after receiving the payroll fund from the employer. The Bank makes no advance payment.
 
Important Information 
1. The employer is responsible for the authenticity and validity of all materials provided to the Bank. 
2. After opening accounts for bankcards (passbooks) in batch, all customers shall timely change the password attached to the bankcard (passbook) and properly store the bankcard (passbook) to prevent from theft or information leakage.

Agent Collection

Introduction
The Agency Collection is a service where Hua Xia Bank collects certain payments on behalf of the trustor, pools and transfers the fund to the trustor's corporate account as specified in the Agreement with the trustor.

Agency collections mainly include those of various utility fees, administrative fees, taxes, communication fees, and other fee items.

Features
Convenient, safe and quick
1. Convenient: Customers can pay in cash or transfer through the Hua Xia Card.
2. Safe and quick: The trustor can avoid risks of carrying cash and improve work efficiency. Payments are directly pooled and transferred to the trustor's account.

Price 
Customers are not subject to service fees. The trustor pays service fees to Hua Xia Bank. The fee rate is calculated as a percentage of the total agency collection amount or at a flat rate as specified in the Agreement. The fee standard and means of payment are determined by two parties involved under negotiation.

Target Clients
Corporate and other organizations may appoint Hua Xia Bank as the collection agent dealing with individuals or other institutions.

Sales Channel
Customers may pay bills in cash, transfer money using the Hua Xia Card, signs an agreement for entrusted payment transfers, through the Customer Service Center (Telephone Banking), and via Internet Banking.

Service Flow
1. Upon consultancy and agreement, Hua Xia Bank signs with the trustor the Agency Collection Agreement.
2. Hua Xia Bank collects bill payments on behalf of the trustor at the time and in the amount specified by the trustor.
3. The customer pays bills within the billing deadline at any nearby or designated Hua Xia Bank business office upon notification of the billing institution. The customer must sign an agreement with Hua Xia Bank for entrusted payment transfers and ensure adequate balance in the designated account for agency collection deduction.

Important Information 
1. The customer shall properly store the bankcard (passbook) and the password to prevent from theft or information leakage.
2. The customer shall enquire the billing institution for any doubt and question on the billing time and amount.
3. The trustor is responsible to chase the overdue bills. Hua Xia Bank is not responsible for the debt chasing and makes no advance payment.