The National Financial Regulatory Administration has issued a notice concerning the conduct of Pudong New Area Free Trade Offshore Bond business by commercial banks.

The notice states that commercial banks registered in the Pudong New Area, or branches of commercial banks registered there, are permitted to underwrite these Free Trade Offshore Bonds.

Financial institutions must strictly adhere to all relevant regulations concerning risk management for bond underwriting activities.

For business conducted by a branch office, prior written authorization from the bank's head office is required. This authorization must define the responsibilities and decision-making mechanisms of internal departments and the branch, and clarify the scope of underwriting business, authority limits, risk exposure caps, and accountability measures.

Branches are prohibited from engaging in underwriting activities without such authorization.

Commercial banks are allowed to collaborate with qualified overseas underwriters to jointly provide underwriting services to issuers.