CIRCULAR OF CHINA SECURITIES REGULATORY COMMISSION AND THE MINISTRY OF FINANCE ON ISSUING “MEASURES FOR ADOPTING THE SYSTEM OF TEMPORARY LICENSE TO FOREIGN ACCOUNTING FIRMS FOR ENGAGING IN BUSINESS OF AUDITING FOR FINANCIAL LISTED COMPANIES”

The China Securities Regulatory Commission, the Ministry of Finance

Circular of China Securities Regulatory Commission and the Ministry of Finance on Issuing “Measures for Adopting the System of Temporary
License to Foreign Accounting Firms for Engaging in Business of Auditing for Financial Listed Companies”

January 12, 2001

Every relevant accounting firms:

With a view to fully learning from international standards, making more fair and reliable the auditing results of listed companies
of banking, securities and insurance industries, ensuring the quality of information disclosure, protecting the legitimate rights
and interests of investors, and procuring an adequate and reliable basis for supervision of companies of this kind after listed,
“Measures for Adopting the System of Temporary License to Foreign Accounting Firms for Engaging in Business of Auditing for Financial
Listed Companies” formulated jointly by China Securities Regulatory Commission and the Ministry of Finance is hereby issued for your
implementation.

Attachment:Measures for Adopting the System of Temporary License to Foreign Accounting Firms for Engaging in Business of Auditing for Financial
Listed Companies

Article 1

With a view to fully learning from international standards, making more fair and reliable the auditing results of listed companies
of banking, securities and insurance industries, ensuring the quality of information disclosure, protecting the legitimate rights
and interests of investors and procuring an adequate and reliable basis for supervision of companies of this kind after listed, these
Measures have been formulated in accordance with “Securities Law”, “Registered Accountant Law of People’s Republic of China” and
No.1,3 and 5 of “Rules for Information Compilation and Disclosure by Companies Publicly Issuing Securities” by China Securities Regulatory
Commission (hereinafter referred to as CSRC).

Article 2

Listed companies of banking, securities and insurance industries shall retain simultaneously one domestic and another foreign accounting
firms to separately render service of accounting statement auditing. CSRC and the Ministry of Finance shall adopt the system of temporary
license to accounting firms registered outside china (hereinafter referred to as foreign accounting firms) for engaging in business
of auditing for listed companies of banking, securities and insurance industries. To apply for temporary license, a foreign accounting
firm shall submit their application to CSRC and the Ministry of Finance, and may perform business only upon approval by the two said
departments.

Article 3

The temporary license for business relating to banking, securities and insurance companies shall be valid for one year.

Article 4

Before arranging business with their clients, foreign accounting firms shall submit relevant documents to CSRC and the Ministry of
Finance, which shall issue a temporary license to those who are considered qualified after being examined. Those who are not considered
qualified after being examined shall be ordered to cease their business arrangement by being given a notice.

Article 5

Foreign accounting firms applying for temporary license for business relating to banking, securities and insurance companies shall
meet the following requirements:

(1)

having auditing experience in relevant industries (from outside China);

(2)

being an international accounting firm;

(3)

being familiar with relevant industries in China.

Article 6

Foreign accounting firms applying for temporary license shall submit the following documents:

(1)

a written application for temporary license for business relating to banking, securities and insurance companies;

(2)

specifications of relevant business;

(3)

basic situation of the firm outside China;

(4)

resumes of partner(s) and senior manager(s) relating to business to be performed in China.

(5)

other documents required by CSRC and the Ministry of Finance. All documents above shall be in Chinese.

Article 7

CSRC and the Ministry of Finance may make spot-checks on the quality of service performed in China by foreign accounting firms applying
temporary license. Those whose business performance fails to meet the quality requirements by CSRC shall cease their business, and
no application from them for temporary license is to be accepted.

Article 8

Where any foreign accounting firm performs business relating to listed companies of banking, securities or insurance industry without
temporary license, CSRC and the Ministry of Finance shall order them to cease their business, confiscate their earnings and shall
not accept their application for temporary license.

Article 9

Where any foreign accounting firm obtains temporary license by fraud or other illicit means, the temporary license shall be revoked,
illegal earnings be confiscated and business be stopped with no application from them for temporary license being accepted and all
those above being announced.

Article 10

Foreign accounting firms who violate Chinese Law in performing business relating to listed companies of banking, security or insurance
industry shall be investigated for their responsibilities according to Chinese law.

Article 11

CSRC and the Ministry of Finance shall be responsible for the interpretation of these Measures.

Article 12

These Measures shall enter into force as of the date of promulgation.