CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON REGULATING THE AUTHORIZATION FOR EXAMINING AND APPROVING EXTERNAL GUARANTEE PERFORMANCE

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Regulating the Authorization for Examining and Approving External Guarantee
Performance

Huifa [2000] No.84

June 28, 2000

Each branch of State Administration of Foreign Exchange (SAFE), Beijing, Chongqing Foreign Exchange Administration Department, the
branch of Dalian, Qingdao, Ningbo, Xiamen and Shenzhen SAFE:

In order to normalize the authorization for examining and approving external guarantee performance, we hereby inform you the following
principles to comply with:

1.

External guarantee performance shall be approved according to the principle of domiciled jurisdiction. The domiciled SAFE branch is
responsible for approving the performance of legal external guarantee under its jurisdiction according to relevant regulations. The
approval document shall be transmitted to SAFE headquarter for record.

2.

Performance of substantive illegal external guarantee (the external guarantee that had not been approved by SAFE before contract signed)
shall be reported to SAFE headquarter for approval after be examined by domiciled SAFE branch.

3.

Performance of procedural illegal external guarantee (the external guarantee that had been approved by SAFE before the contract signed
or the guarantee need not be approved, but has not been registered with the SAFE according to regulations) shall be approved by domiciled
SAFE branch after corresponding penalty been given to the guarantor. The result of penalty and the approval document shall be transmitted
to SAFE headquarter for record.