Laws and Regulations Database of the Central Bank of the Republic of China(Taiwan)

7.

7. Either multiple or single price or yield method may be adopted for auctioning central government bond.

Multiple price and yield bids are classified as either competitive or noncompetitive:

(1)Competitive bids will be accepted successively, starting with those at the price higher than the minimum price or lower than the maximum acceptable yield set by the Ministry of Finance. Where bid prices are equal and the remainder of the issue is insufficient to meet demand, allocations will be made pro-rata to the bid amounts. The prices for awarded bonds are calculated at the price or the yield they bid.

(2)Noncompetitive bid will be calculated as the weighted average price or yield of accepted competitive bids . Where the amount of subscription exceeds the publicly announced amount of the issue, distributions will be made pro-rata based on the subscription amount.

The awards referred to in the preceding Paragraph will be in multiples of NT$50 million.

All single-price or yield bids will be competitive; the determination and proration of awards shall be handled according to the previous two paragraphs applied mutatis mutandis. The price for awarded bonds is calculated at the lowest price or the highest yield of the accepted bids.