Measures of Determining the Pricing Terms. In order to ensure that the pricing terms of individual transactions under the Deposit Services, the Loan Services, the Entrustment Loan Services and the Other Financial Services will be made in accordance with the pricing principles as stated above, the Group and COFCO Finance shall carry out the measures below: With respect to the Group, an internal integrated assessment mechanism on the deposit and lending rates, handling fees and other services fees will be established based on fair market principle. For example, an analysis and assessment will be conducted between (1) the deposit and lending rates offered by COFCO Finance; and (2) the rates offered by the Major PRC Commercial Banks to the Group regularly. The interest rates of deposit and loan of the Major PRC Commercial Banks are determined according to the standard rate promulgated by PBC from time to time which is fairly stable and will fluctuate according to the situations of the customers. The interest rates of the deposits and loans of the Major PRC Commercial Banks are displayed in their websites, which are open for public search. Prior to placing deposits to or requesting loans from COFCO Finance, the Company will seek the interest rates quotation from the Major PRC Commercial Banks to make the strategic decisions on the deposits and loans financial services, to ensure that the interests rates offered by COFCO Finance will not be worse than the standard rates promulgated by PBC or the interest rates offered by the Major PRC Commercial Banks for the same type of deposit and loan services of the same period. In determining the handling fees of Entrustment Loan Services and the handling fees and other services fees of Other Financial Services, the Company will seek the rates quotation from the Major PRC Commercial Banks in advance in comparison with the rates charged by COFCO Finance. The internal integrated assessment will be conducted by the treasury cashiers, head of treasury, fund managers and financial managers of the finance department of the Company. The responsible personnel will conduct the pricing comparisons every fortnight and upon relevant policy adjustments being promulgated by PBC. To ensure that there is no violation of the annual caps, the finance department of the Company will check the utilised annual caps at the end of each month. In the event that (i) the interest rates on the Deposit Services to be offered by COFCO Finance to the Group are lower than the standard deposit rat...
Measures of Determining the Pricing Terms. In order to ensure that the pricing terms of individual transactions under the Deposit Services, the Loan Services, the Entrustment Loan Services and the Other Financial Services will be made in accordance with the pricing principles as stated above, the Group and COFCO Finance shall carry out the measures below: With respect to the Group, the establishment of an internal integrated assessment mechanism of the Group on the COFCO Deposit Interest Rate, COFCO Loan Interest Rate and COFCO Handling Fee will be established based on fair market principle. For example, an analysis and assessment will be conducted between the COFCO Deposit Interest Rate and the rates offered by the ten major PRC commercial banks and PBC to the Group before the Group deposits with COFCO Finance, and every fortnight or regularly during the maintenance of such deposit accounts. Prior to the engagement of the relevant financial service with COFCO Finance under the 2022 Financial Services Agreement, the Group will conduct an analysis and assessment between the COFCO Deposit Interest Rate, COFCO Loan Interest Rate or the COFCO Handling Fee (as the case maybe) with the corresponding interest rates or handling fees offered by the ten major PRC commercial banks and PBC to the Group to ensure the relevant interest rates or handling fee offered by COFCO Finance is on the best term to the Group. In the event the relevant interest rates or handling fees quoted from the ten major PRC commercial banks and PBC is better than those offered by COFCO Finance, the Group will inform COFCO Finance to adjust the same to ensure its interest rates or handling fees is the better than those offered by the ten major PRC commercial banks and PBC. In the event COFCO Finance violates its relevant obligations thereunder and actually adopted an interest rate or charged a handling fee which is not on a better term to the Group as compared to those offered by the ten major PRC commercial banks and PBC, the Group may request COFCO Finance to compensate the differences to the Group. In respect of the Deposit Services under the 2022 Financial Services Agreement, the Group will obtain the Quoted Deposit Interest Rate every fortnight or regularly during the maintenance of its demand deposit in such deposit accounts. In the event COFCO Finance had adopted a COFCO Deposit Interest Rate lower than the Quoted Deposit Interest Rate for a particular day, the Group will demand COFCO Finance to compensate the difference between...
