To all parties concerned,

In accordance with the Delivery Rules of the Shanghai International Energy Exchange, the Shanghai International Energy Exchange (hereinafter referred to as “INE”) hereby notifies that with immediate effect the following two types of Exchange of Futures for Physicals (hereinafter referred to as the “EFP”) using non-standard warrants may be conducted, subject to the approval by INE:

1. EFP with domestic buyer and domestic seller, the underlying commodity being crude oil imported by the seller, payment to be settled in CNY;

2. EFP with domestic buyer and overseas seller, the underlying commodity being crude oil imported by the buyer, payment to be settled in CNY or foreign currency in accordance with the relevant contract.

The buyer and the seller shall abide by the relevant laws and regulations, ensure the transaction is true and legitimate, and provide the import qualification, the relevant contract, the non-standard warrants and other materials as deemed necessary by INE while applying for the EFP.  The payment for the underlying commodity, the non-standard warrants and the invoices shall be transferred directly between the buyer and the seller.  Both parties shall also provide the relevant documents including proof of payment, invoices, customs declaration information for imports, etc., as required by INE within the prescribed time.  The non-bona fide EFPs shall be subject to penalties according to the Enforcement Rules of the Shanghai International Energy Exchange.

Shanghai International Energy Exchange

August 23, 2018