PROCEDURES ON THE BOOK-ENTRY GOVERNMENT BONDS TRADING OVER THE COUNTER OF COMMERCIAL BANKS

The People’s Bank of China

Order of the People’s Bank of China

No.2

To regulate the book-entry government bonds trading over the counter of commercial banks and encourage healthy development of bond
market, the People’s Bank of China stipulated the Administration Rules on the Book-entry Government Bonds Trading over the Counter
of Commercial Banks. Now it enters into force after the passage by the Executive Meeting of the People’s Bank of China.

The People’s Bank of China

January 31, 2002

Procedures on the Book-entry Government Bonds Trading over the Counter of Commercial Banks

Chapter I General Provisions

Article 1

To regulate book-entry government bonds trading over the counter of commercial banks, facilitate investor’s trading activities and
protect their legal rights and encourage the healthy development of the bond market, the People’s Bank of China stipulated the Procedures
in accordance with relevant laws and regulations.

Article 2

The book-entry government bonds (hereinafter referred to as bonds) defined herein refer to bonds designated by the Ministry of Finance
and approved by the People’s Bank of China to be traded over the counter of commercial banks.

Article 3

Bond trading over the counter of commercial banks (hereinafter referred to as over-the-counter bond trading) defined herein refers
to trading activities conducted by commercial banks through their outlets with government bond investors, including bond custody
and settlement.

Article 4

After consulting with the Ministry of Finance, the People’s Bank of China can approve qualified commercial banks to undertake over-the-counter
bond trading.(hereinafter referred to as undertaking banks)

Article 5

Investors hereof are individuals or enterprises who trade bonds with commercial banks through commercial banks’ outlets. Financial
institutions shall not buy or sell bonds through commercial banks’ outlets.

Article 6

Over-the-counter bond trading shall follow the principle of fairness and integrity. Investors shall take the relevant risks alone.

Article 7

Over-the-counter traded bonds have a two-tier custody system: the Central Government Bond Registration and Clearing Corporation Ltd.
(Hereinafter referred to as Central Clearing Co.) is the primary custodian designated by the People’s Bank of China, while the undertaking
banks are the secondary custodian.

The bond custody account adopts the real name system.

Article 8

The Central Clearing Co. shall stipulate business standards for over-the-counter bond tradings in accordance with the Rules and regulate
the exchange of relevant data.

Article 9

The People’s Bank of China is the competent authority for the supervision of over-the-counter trading activities. Branches of the
People’s Bank of China conduct daily supervision on over-the counter trading activities of the commercial banks in their jurisdiction.

Chapter II Undertaking Banks

Article 10

A commercial bank applying to be an undertaking bank shall satisfy the following conditions:

(1)

The applicant should have unified, safe and stable computerized business processing system;

(2)

The applicant should have sound internal control system and risk prevention mechanism;

(3)

The applicant should have a special division to be responsible for over-the-counter trading activities and qualified full-time staff;

(4)

The applicant should actively participate in the inter-bank bond market and the total bond trading volume two years prior to the application
should rank higher;

(5)

The applicant should have been a member of the underwriter group of government bonds for three consecutive years before application;

(6)

The applicant should have no serious violation records two years prior to application in the inter-bank bond market; and

(7)

Other conditions required by the People’s Bank of China.

Article 11

A commercial bank that applies for being an undertaking bank shall provide the People’s Bank of China with the following materials:

(1)

An Application Letter;

(2)

A business plan for over-the-counter trading;

(3)

An organizational structure and staff arrangement plan for over-the-counter trading;

(4)

An internal control system and implementation rules worked out in accordance with the Rules;

(5)

The current situation of computer-based business processing system and a development plan of the business processing system for conducting
over-the-counter bond trading business; and

(6)

Other relevant materials required by the People’s Bank of China.

Article 12

The Provincial branches of an undertaking bank who apply for over-the-counter trading business shall get the approval by the People’s
Bank of China having consulted with the Ministry of Finance. The undertaking bank shall submit the name list of the outlets that
are to launch over-the-counter trading business to local branches of the People’s Bank of China and local fiscal agencies for record,
and shall publish the information through China Bond Information Network or other relevant media.

Article 13

An undertaking bank shall separate the over-the-counter trading business with other bond businesses in the inter-bank bond market.
Its responsible units, staffs and relevant accounts shall be managed separately.

Article 14

An undertaking bank can conduct the following businesses:

(1)

Buying and selling bonds with investors as a self-managing dealers and providing two-way quotation;

(2)

Opening custody accounts for bond investors and conducting custody, settlement and other relevant businesses;

(3)

Selling bonds and servicing bond principle and interest through their outlets; and

(4)

Handling the bond registration as collateral for investors.

Article 15

An undertaking bank has the following rights:

(1)

Requiring investors provide real and effective identification documents; and

(2)

Providing bid and offer prices with discretion within the established spreads.

Article 16

An undertaking bank’s commitments include:

(1)

Opening and maintaining accounts for investors and providing account requiring, information and consulting services;

(2)

Publishing price quotations for over-the-counter trading in accordance with the Rules;

(3)

Accurately and continuously keeping record of investor’s bonds transactions and balances, and transmitting daily over-the-counter
trading data in required forms and types to the Central Clearing Co.;

(4)

Keeping investor’s account information confidential; and

(5)

Reporting to the People’s Bank of China the information about over-the-counter trading business, serious events being reported to
both the People’s Bank of China and the Ministry of Finance.

Chapter III Trading and Settlement

Article 17

Over-the-counter trading shall be conducted through the over-the-counter trading business processing system (hereinafter referred
to as trading system) of the undertaking bank.

Article 18

Business day for over-the-counter trading is any day from Monday to Friday, except legal holidays. An undertaking bank shall not stop
over-the-counter trading without approval by the People’s Bank of China.

Article 19

Investors shall open bond custody accounts in their real names, and open or designate a corresponding capital account according to
the requirement of the undertaking bank.

Article 20

Investors shall provide the undertaking bank with written orders in buying or selling bonds. The undertaking bank shall maintain complete
record of investors’ orders in its trading system and provide investors with complete record of delivery as requested.

Article 21

The spread between the bid and offer prices made by an undertaking bank shall not be higher than the price difference set up or adjusted
jointly by the People’s Bank of China and the Ministry of Finance with consideration of market situation and discussion with the
undertaking banks.

Article 22

Within business hours, undertaking banks shall quote unified bid and offer prices and reference yield to maturity in all their outlets
undertaking over-the-counter trading business, at the same time, disclose the information to public. They shall not unquote prices
at their wills; And they have the discretion to adjust their quotations according to market conditions.

Article 23

Undertaking banks shall present the following notice prominently in all their undertaking outlets: “The prices are given according
to market changes, investors shall buy or sell bonds at their own risks.”

Article 24

Undertaking banks shall buy or sell bonds at the disclosed prices. Were there some temporary shortage of certain kind of bond, the
relevant undertaking bank may suspend selling the bond and put a report to the People’s Bank of China for record. The bank shall
replenish supply of the bond within two business days and resume its selling.

Article 25

The quotation unit of over-the-counter bond trading is in RMB hundred yuan, and so is the trading unit. The unit for settlement is
yuan with two decimals.

Article 26

Over-the-counter trading adopts the real time settlement for delivery and payment. Undertaking banks shall conduct capital and bond
settlement for investors timely, and when the trading is concluded, transfer the relevant data and settlement orders to the Central
Clearing Co. as required.

The Central Clearing Co. shall, in accordance with the data and settlement orders received, finish the bond settlement between the
undertaking banks’ own accounts and their general broker’s accounts before the start of the next business day.

Chapter IV Bond Custody and Redemption

Article 27

The Central Clearing Co. shall open dealer’s accounts and general broker’s accounts for undertaking banks, and record their own bonds
and their clients’ bonds respectively. The Central Clearing Co. shall be responsible for the authenticity, accuracy and integrity
of the first-grade custodian accounts.

Article 28

An undertaking bank shall open bond custodian account for investors to record their bonds. After the Central Clearing Corporation’s
examination and verification, the outstanding balance recorded by the undertaking bank in the second-grade custodian accounts should
be the quantity of bonds held by investors. The undertaking bank shall be responsible for the authenticity, accuracy, integrity and
safety of the second-grade custodian accounts.

Article 29

Undertaking banks and the Central Clearing Corporation may charge service fees for providing custody and other relevant services.

Article 30

Undertaking banks shall strictly separate their own bonds with their investors’ bonds, and shall not misappropriate investors’ bonds.

Article 31

Investors may make recustody of their bonds among different undertaking banks.

Article 32

Issuers shall transfer the redeemed interest or principal to the fund account designated by the Central Clearing Corporation at least
one workday before the interest-payment day or the maturity day. The Central Clearing Corporation shall after receipt transfer the
above mentioned money to the undertaking bank one business day in advance, the latter shall transfer the total amount of money to
the fund accounts of investors on the interest payment day or redemption day.

Chapter V Inquiry and Supervision

Article 33

Undertaking banks shall establish account information inquiry systems for over-the-counter bonds trading, while the Central Clearing
Corporation shall establish an account information reviewing system. An investor may inquire about the transaction volume and outstanding
balance of his or her bonds from the undertaking bank or require that the Central Clearing Corporation review his or her outstanding
balance through the reviewing system. Were there any doubts, the investor may ask the undertaking bank to explain, and even report
that to the local People’s Bank of China branch if unsolved.

Article 34

Undertaking banks shall as stipulated transfer their over-the-counter trading data to the Central Clearing Corporation, and the latter
shall check relevant accounts against the data received. The Central Clearing Corporation shall check any wrong information with
the undertaking bank concerned. If the check cannot be finished before the next business day, the Central Clearing Corporation shall
suspend part or all of transactions of the undertaking bank with the approval by the People’s Bank of China.

Article 35

The Central Clearing Corporation shall publish the quotation information provided by undertaking banks to the public through China
Bond Information web-site or the media designated by the People’s Bank of China.

Article 36

With the authorization of the People’s Bank of China, the Central Clearing Corporation may examine the second-grade custodian accounts
of an undertaking bank.

Article 37

Undertaking banks and the Central Clearing Corporation shall report periodically to the People’s Bank of China on over-the-counter
trading and subject themselves to the inspection and supervision by the People’s Bank of China.

Chapter VI Penalty Provisions

Article 38

A commercial bank that has committed any of the following offences shall, according to the seriousness of the offence, be punished
by the People’s Bank of China in the formality of circulating a notice of criticism, giving a disciplinary warning, suspending or
revoking its trading status, plus a fine of no more than RMB30,000 yuan. Both the senior manager and the directly responsible personnel
shall be given disciplinary punishment by their regulatory authorities. Offences against the People’s Bank of China management rules
governing the competence for posts on Senior Management of Financial Institutions will be punished according to the rules.

(1)

Conducting over-the-counter trading business without approval;

(2)

Not publishing two-way quotations as stipulated by the rules;

(3)

Short-selling bonds;

(4)

Conducting over-the-counter trading business out of the trading system;

(5)

Not satisfying the need of investors according to the quoted prices;

(6)

Suspending trading activities without proper causes;

(7)

Misappropriating investors’ bonds;

(8)

Fabricating bond accounts’ records;

(9)

Change Custody for investors without following the relevant rules;

(10)

Issuing false bond custody certification;

(11)

Divulging investors’ account secret information; and

(12)

Other offences against the Rules.

Article 39

The Central Clearing Corporation shall be punished by the People’s Bank of China circulating a notice of criticism or giving a disciplinary
warning plus a fine of no more than RMB30000 yuan for any of the following offences. Both the senior manager and the directly responsible
person shall be given a disciplinary punishment by their supervisory authorities.

(1)

Causing serious losses to undertaking banks or investors because of its dereliction of duty;

(2)

Publishing false information or divulging non-public information;

(3)

Inducing investors and resulting in their losses;

(4)

Facilitating the malicious manipulation of the market or various activities against the Rules by undertaking banks;

(5)

Divulging secrets of undertaking banks and investors; and

(6)

Other offences against the Rules.

Chapter VII Supplementary Provisions

Article 40

The People’s Bank of China shall be responsible for the interpretation of the Rules.

Article 41

The Rules shall enter into force as of the date of its promulgation.

The People’s Bank of China
2002-01-31

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON INFORMING THE SUPPLEMENTARY SCHEME OF THE PASSIVE QUOTA DISTRIBUTION SCHEME 2002 ON SOME CATEGORIES OF TEXTILES FOR TEXTILE-PRODUCING ENTERPRISES EXPORTING BY THEMSELVES

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation on Informing the Supplementary Scheme of the Passive Quota Distribution
Scheme 2002 on Some Categories of Textiles for Textile-producing Enterprises Exporting by Themselves

WaiJingMaoMaoHan [2002] No.204

March 18, 2002

The departments (commissions, bureaus) of foreign trade and economic cooperation in Beijing, Tianjin, Hebei, Liaoning, Shanghai, Jiangsu,
Zejiang, Ningbo, Anhui, Fujian, Shandong, Qingdao, Henan, Hubei, Hunan, Guangdong, Shenzhen, Sichuang, Shanxi, Ningxia and Xinjiang,
each enterprise directly under the Central Government, the Bureau of Quota and License Administration and the EDI Center of the Ministry:

In order to continue to support the textile-producing enterprises doing export by themselves (hereinafter referred to as manufacturing
enterprises) to expand their export, the Supplementary Scheme of the Passive Quota Distribution Scheme 2002 on Some Categories of
Textiles for the Textile-producing Enterprises Exporting by Themselves (see Attachment) is hereby distributed to you. Relevant details
are as follows:

The quota categories in this Supplementary Scheme are 3/4A, 5, 5A, 7/8A and 43 which are exported to Canada and Category 659-s for
the US market. Year 2002 agreement quota levels for these categories are provided in this Supplementary Scheme, as they are not included
in the Circular on Informing the Supplementary Scheme of the Passive Quota Distribution Scheme 2002 on Some Categories of Textiles
for the Textile-producing Enterprises Exporting by Themselves (WaiJingMaoMaoFangHan [2002] No.3).

II.

The 2002 quota level of each of the above-mentioned categories for the manufacturing enterprise is 30% respectively of the total distributable
level of each category of the same the year.

III.

The State Economic and Trade Commission is responsible for working out the 2002 list of manufacturing enterprises and the specific
quota distribution scheme.

IV.

The quota distribution scheme of each local enterprise is to be delivered by electronic means. The quota distribution scheme of enterprises
administrated by the Central Government and the distribution scheme of Changchun is to be offered in written forms. Meanwhile, the
Changchun’s scheme will be sent to the export license issuing authority by electronic means.

All local commissions (departments/bureaus) of foreign trade and economic cooperation shall transmit this Circular and the quota distribution
scheme to the relevant local manufacturing enterprises as soon as possible and issue the textile export licenses to the relevant
enterprises strictly in accordance with the distribution scheme.

VI.

All local commissions (departments/bureaus) of foreign trade and economic cooperation shall, as specific steps to seriously carry
out the strategy of “Broadly-Based Foreign Trade and Economic Cooperation”, bring manufacturing enterprises under unified passive
textile quota control, strengthen the guidance and training of them in quota utilization and timely resolve the problems in the process
of textile export so as to help and supervise these manufacturing enterprises to make better use of the textile quota.

VII.

The EDI Center of the Ministry is requested to tabulate, according to this Supplementary Scheme, the quota level of each category
distributed to the local manufacturing enterprises and send the data to all export license issuing unit for reference. In order to
reduce the data input workload, the EDI Center of the Ministry is also requested to work out and release the data of quota level
of local subsidiary enterprises provided in the Supplementary Scheme.

The Circular is hereby given for strict implementation.

Attachment: The Supplementary Scheme 2002 of the Passive Textile Quota Distribution Scheme for the Textile-producing Enterprises Exporting
by Themselves (omitted)

The Ministry of Foreign Trade and Economic Cooperation
2002-03-18

CIRCULAR OF THE PEOPLE’S BANK OF CHINA ON ADJUSTING THE POLICIES ON ADMINISTRATION OF FOREIGN CURRENCY BANKNOTES

The People’s Bank of China

Circular of the People’s Bank of China on Adjusting the Policies on Administration of Foreign Currency Banknotes

Yinfa [2002] No.283

September 9, 2002

Each branch and business administrative department of the People’s Bank of China, each central branch in the provincial capital city
and in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo; each branch and department of foreign exchange administration of the State Administration
of Foreign Exchange (SAFE) in the province, autonomous region and municipality directly under the Central Government, each branch
of SAFE in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo; and each Chinese-capital designated bank of foreign exchange:

Questions related to the adjustment of the administration of foreign currency banknotes are hereby notified as follows:

In setting the nominal rate of exchange for US dollars, the trading price of spot exchange set forth by the designated banks of foreign
exchange shall not be 0.17% higher or lower than the transaction middle price published by the People’s Bank of China; the purchasing
price of banknotes shall not be 0.75% higher or lower than the trading middle price of the corresponding spot exchange, and the selling
price of banknotes shall be equal to the that of the spot exchange.

In setting the nominal rate of exchange, the purchasing price of HK dollar banknotes set forth by the designated banks of foreign
exchange shall not be 0.75% higher or lower than the trading middle price of the corresponding spot exchange, the purchasing prices
of Euro and Japanese Yen banknotes shall not be 1% higher or lower than the trading middle prices of the corresponding spot exchange;
the selling prices of the aforesaid banknotes shall be equal to those of the corresponding spot exchange; the existing Policies on
the difference between the purchasing price and selling price of spot exchange shall remain valid. With respect to the range between
the prices of banknotes and those of spot exchange, the existing policies shall also remain valid.

The nominal rate of exchange set forth by the designated foreign exchange banks may fluctuate within the ranges determined in the
preceding paragraphs, and may be different according to the markets of different areas within the aforesaid ranges in order to provide
more competitive and high-quality services to the clients.

The branches and sub-branches of the designated banks of foreign exchange in border trade areas of Heilongjiang, Inner Mongolia, Xinjiang,
Tibet, Yunnan and Guangxi etc, may post the exchange rates of Renmingbi against the currencies of the bordering countries. The difference
between the purchasing and selling prices may be determined by the banks themselves, and the foreign currencies collected may be
disposed by themselves.

This Circular shall enter into force as of October 1, 2002. If any previous provisions conflicts with the contents of this Circular,
this Circular shall prevail. The branches of the SAFE shall, upon receiving this Circular, transmit it as soon as possible to the
sub-branches and the commercial banks (including foreign-funded banks) under their respective jurisdictions. Each bank shall report
its daily nominal rate of exchange to the SAFE before 9 am every day. If any problem is encountered in the implementation of this
Circular, please report to the SAFE in a timely manner.

Contact entity: Department of International Balance of Payments of the SAFE

Contact telephone number: (010) 68402160

The People’s Bank of China
2002-09-09

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE TAX POLICIES FOR FURTHER ENCOURAGING THE DEVELOPMENT OF SOFTWARE AND INTEGRATED CIRCUIT INDUSTRIES

The Ministry of Finance, the State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation on the Tax Policies for Further Encouraging the Development
of Software and Integrated Circuit Industries

CaiShui[2002] No.70

October 10, 2002

The finance departments (bureaus), state tax bureaus and local tax bureaus of the provinces, autonomous regions, municipalities directly
under the Central Government, municipalities separately listed on the State Plan, and the finance bureau of Xinjiang Army Corps of
Production and Construction:

In order to further encourage the development of software and integrated circuit (IC) industries, the supplementary notice on the
relevant preferential tax policies is hereby made as follows upon approval of the State Council and in accordance with the relevant
provisions of the existing tax law:

From January 1, 2002 to the end of 2010, with respect to the self-made IC products (including monocrystalline silicon wafers) sold
by value-added tax (VAT) general taxpayers, after the VAT has been collected at a 17% rate, the policy of “refund upon collection”
shall be applied to the actual VAT load that exceeds 3%, and the tax refunded shall be used by the enterprises in the expansion of
production and the study and development of IC products.

II.

With respect to the production enterprises of IC products whose product line is less than 0.8 micron (including 0.8 micron) wide,
after certification, the policy of “two-year exemption and three-year reduced payment” of enterprise income tax shall be applied
from the year when the enterprise begins to make profits from 2002, that is, for the first and second year after the enterprise begins
to make profits, the enterprise income tax shall be exempted, and from the third to fifth year, the enterprise income tax shall be
half exempted.

The enterprises with foreign investment that have already enjoyed “two-year exemption and three-year reduced payment” of enterprise
income tax from the profit-making year, according to the Law on Income Tax of Enterprises with Foreign Investment and Foreign Enterprises
and the detailed rules for implementation thereof, shall no longer implement this Article.

With regard to the enterprises with foreign investment that may enjoy exemption of enterprise income tax for two years from the profit-making
year according to the Law on Income Tax of Foreign-funded Enterprises and Foreign Enterprises and the detailed rules for implementation
thereof, if the “two-year exemption” of enterprise income tax actually enjoyed expired before 2002 (excluding 2002), then the “two-year
exemption” shall not be implemented for a second time; if the “two-year exemption” of enterprise income tax has been actually enjoyed
for less than 2 years before 2002 (excluding 2002), the remaining period of tax exemption and the “three-year reduced payment” shall
be implemented from thereon.

The domestic-funded enterprises that are exempted from enterprise income tax for two years from the year of starting production according
to the Circular on Several Preferential Tax Policies on Enterprise Income Tax (CuiShuiZi (94) No.001) of the Ministry of Finance
and the State Administration of Taxation shall implement “two-year exemption and three-year reduced payment” of enterprise income
tax from the profit-making year instead. If the enterprise made profits before 2002 (excluding 2002) and “two-year exemption” of
enterprises income tax actually enjoyed from the profit-making year expires, the “two-year exemption” shall no longer be implemented
for a second time, and the “three-year reduced payment” of enterprise income tax shall be implemented from 2002; if the enterprise
made profits before 2002 (excluding 2002), and has actually enjoyed “two-year exemption” of enterprises income tax from the profit-making
year for less than 2 years, the remaining tax exemption period and “three-year reduced payment” shall be implemented from thereon.

The IC production enterprises whose investment exceeds RMB 8 billion yuan or whose IC line is less than 0.25 micron wide shall continue
implementation of the Circular on the Relevant Tax Policy Issues of Encouraging the Development of Software and IC Industries of
the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs (CaiShui [2000] No.25).

III.

From January 1, 2002 to the end of 2010, for the investors of IC production and capsulation enterprises that increase the registered
capital of their enterprises directly with the profits after payment of enterprise income tax, or use such profits as capital to
launch other IC production or capsulation enterprises, of which the operation duration is no less than 5 years, the enterprise income
tax already paid for the part used as reinvestment shall be refunded at a 40% rate. If the enterprise withdraws the investment after
less than 5 years from the reinvestment, it shall be forced to return the enterprise income tax refunded.

From January 1, 2002 to the end of 2010, for the domestic and foreign economic organizations that invest in the western regions, with
their profits obtained within China after the payment of enterprise income tax, to launch IC production or capsulation enterprises
or software production enterprises, of which the operation duration is no less than 5 years, the enterprise income tax already paid
for the part used as reinvestment shall be refunded at an 80% rate. If the enterprise withdraws the investment after less than 5
years from the reinvestment, it shall be forced to return the enterprise income tax refunded.

The range of western regions shall comply with the Circular of the General Office of the State Council on Transmitting the Office
of Western Region Development of the State Council on Opinions on the Implementation of Several Policies and Measures for Western
Region Development (GuoBanFa [2001] No.73), that is the western regions include Chongqing Municipality, Sichuan Province, Guizhou
Province, Yunnan Province, Tibet Autonomous Region, Shannxi Province, Gansu Province, Ningxia Hui Autonomous Region, Qinghai Province,
Xijiang Uygur Autonomous Region, Xinjiang Army Corps of Production and Construction, Inner Mongolia Autonomous Region, and Guangxi
Zhuang Autonomous Region. The aforesaid policies shall be applied by analogy to the western regions in Tujia Autonomous Prefecture
of Xiangxi of Hunan Province, Tujia & Miao Autonomous Prefecture of Enshi of Hubei Province, Korean Autonomous Prefecture of Yabian
of Jilin Province.

IV.

Other policies and provisions relating to encouragement for software industry and IC industries shall comply with the Circular on
the Relevant Tax Policy Issues of Encouraging the Development Software and IC Industries (CaiShui [2000] No.25) of the Ministry of
Finance, the State Administration of Taxation and the General Administration of Customs.

If any previous policies conflict with this Circular, the latter shall prevail.

The Ministry of Finance, the State Administration of Taxation
2002-10-10

INTERIM RULES ON THE PROCEDURES FOR ADJUSTING THE RANGE OF PRODUCTS UNDER SAFEGUARDS

The Ministry of Foreign Trade and Economic Cooperation

Decree of the Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China

No. 38

Interim Rules on the Procedures for Adjusting the Range of Products under Safeguards adopted by the 12th Executive Meeting of the
Ministry of Foreign Trade and Economic Cooperation on December 13, 2002 are hereby promulgated and shall be come into force as of
the day of January 13, 2003.

Minister of the Ministry of Foreign Trade and Economic Cooperation, Shi Guangsheng

December 13, 2002

Interim Rules on the Procedures for Adjusting the Range of Products under Safeguards

Article 1

In order to guarantee the fairness, justice and openness of the safeguards work, these Rules are enacted in accordance with the Safeguards
Regulations of the People’s Republic of China.

Article 2

According to Articles 5, 15, 16, 18 and 21 of the Safeguards Regulations of the People’s Republic of China, the Ministry of Foreign
Trade and Economic Cooperation (hereinafter referred to as MOFTEC) shall determine in the safeguards case filing proclamations and
award proclamations (hereinafter referred to as safeguards proclamations) the range of products under safeguards investigation and
that of products subject to safeguards (hereinafter referred to as range of products under safeguards). The customs shall implement
the range from the date of the proclamation.

Article 3

During the implementation period of safeguards proclamations, any adjustment in the range of products under safeguards shall be determined
by MOFTEC through the relevant proclamations, and the customs shall implement the adjustment from the date of the proclamation.

Article 4

Procedures for adjusting the range of products in safeguards proclamations of the MOFTEC shall comply with these Rules.

Procedures for adjusting the range of products in safeguards proclamations include the application procedures and the procedures for
acceptance of application, investigation, decision and the relevant proclamation by the MOFTEC.

Article 5

Application procedures:

(1)

After a safeguards case filing proclamation is made, if any relevant interested party raises objections to the range of products under
investigation, it shall file an application for adjusting the range with the MOFTEC within the time period stipulated in the proclamation
or within the period extended upon the approval of the MOFTEC.

(2)

After a proclamation of safeguards preliminary award is made, if any relevant interested party raises objections to the range of products
subject to safeguards, it shall file an application for adjusting the range with the MOFTEC within the time period stipulated in
the proclamation or within the period extended upon the approval of the MOFTEC.

(3)

The interested party as used in these Rules shall refer to the applicant for safeguards, foreign manufacturer, exporter, importer
as well as other organization or individual with interest relations.

(4)

The application shall be in filed in written form.

Article 6

An application form shall include the following information:

(1)

The name and basic information of the applicant, and the product to be adjusted;

(2)

Reasons for the adjustment, detailed explanation of the reasons and the relevant evidence;

(3)

Detailed description and specification of the product to be adjusted. The product shall be described in the following order: tariff
number, physical characteristics, chemical characteristics etc, and the description shall reflect the uniqueness and exclusiveness
of that product; if the description through the aforesaid methods can not reflect the uniqueness and exclusiveness of that product,
the usage of the product shall be specified;

(4)

Detailed description and explanation of the similarities and differences, and replaceable nature between the import product to be
adjusted and the domestic product of the same kind or the directly competitive products;

(5)

The import volume and sum of the import product to be adjusted of the previous five years and the forecasted import volume of the
next three years;

(6)

The foreign manufacturer, exporter, importer and end user;

(7)

Seal or signature of the legal representative of the applicant or the person legally authorized thereby.

Article 7

Procedures for acceptance, investigation, decision and proclamation:

(1)

MOFTEC shall check the application submitted by the applicant, and accept the application if it meets the requirements of Article
6 ;

(2)

MOFTEC shall investigate and verify the authenticity of the application through questionnaire, on-spot verification and hearing etc;

(3)

MOFTEC shall investigate the rationality of the application and the interests of the interested parties concerned including the applicant
for safeguards, and verify the description and specification of the product, and may retain experts to make a demonstration when
necessary;

(4)

If the application meets the conditions for adjusting the range of products under safeguards according to the aforesaid procedures,
MOFTEC may decide to adjust the range of products under safeguards and make a proclamation;

(5)

Where MOFTEC hasn’t received an application for adjusting the product range, it may decide to adjust the product range upon the examination
of the materials submitted by the interested parties;

(6)

After the final decision on safeguards is implemented, if it is necessary to adjust the proclamation contents, a decision may be made
by referring to the aforesaid procedures and be proclaimed by MOFTEC.

Article 8

Where safeguards review is involved; the adjustment of product range shall be carried out by referring to these Rules.

Article 9

The power to interpret these Rules shall remain with MOFTEC.

Article 10

These Rules shall enter into force on the 30th day after their proclamation.

The Ministry of Foreign Trade and Economic Cooperation
2002-12-13

DECISION OF CHINA BANKING REGULATORY COMMISSION ON ADJUSTMENT OF BANKING MARKET ACCESS MANAGEMENT STYLE AND PROCEDURE

China Banking Regulatory Commission

Decree of China Banking Regulatory Commission

No.1

The Decision on Adjustment of Banking Market Access Management Style and Procedure has been adopted at the first Chairman Meeting
of CBRC on May 26. It is hereby promulgated and shall enter into force on July 1, 2003.

Liu Mingkang, Chairman of China Banking Regulatory Commission

May 29, 2003

Decision of China Banking Regulatory Commission on Adjustment of Banking Market Access Management Style and Procedure

In order to raise the efficiency of market access and promote financial innovation, China Banking Regulatory Commission decided to
adjust the management style and procedure of banking market access. To be specific, it goes as follows:

Adjust the power of approving newly established branches

(I)

Banking regulatory bureaus or branch bureaus directly under CBRC should receive and check the application materials of the policy-related
banks, the state-owned commercial banks and the joint stock commercial banks within their jurisdiction area for preparing to construct
branches and submit the materials to CBRC for approval. Banking bureaus or branch bureaus directly under CBRC should check the application
materials for opening of the agencies CBRC have approved, present the agencies licenses and make a copy for CBRC. The style and procedure
of approving newly established foreign branches have no changes.

(II)

Banking bureaus or branch bureaus directly under CBRC should receive and approve the application materials of various banks in the
same cities for preparing to construct and opening branches and present them licenses.

(III)

Branch bureaus directly under CBRC are in charge of receiving and checking the application materials of various banks in their jurisdiction
area for preparing to construct branches and submit them to banking regulatory bureaus for approval; Branch banking regulatory bureaus
should check the application materials for opening of the agencies banking regulatory bureaus have approved, present the agencies
licenses and make a copy for banking regulatory bureaus.

II.

Adjust the style of approving new business

(I)

Eliminating the approval of the following business in Chinese banks: domestic factoring, liquidation of funds from agency securities
(Bank-Security Transfer), agent insurance, investment trusteeship by securities companies, trusteeship of credit capital, pension
trusteeship by enterprises. Eliminating the records of the following business of Chinese banks: interest-paid note discount from
buyer or agreement, overdraft of accounts of legal persons and agent of payment of trust products.

(II)

Eliminating the records of the following business in foreign banks: domestic factoring, interest-paid note discount from buyer or
agreement and overdraft of accounts of legal persons.

(III)

Within 10 working days after state-owned commercial banks and holding commercial banks began the above-mentioned business, their general
banks should report to CBRC in written form. Furthermore, city commercial banks, rural commercial banks and foreign banks only need
report to banking regulatory bureaus or branch bureaus directly under CBRC or branch banking regulatory bureaus in the same place
within 10 working days after starting the above-mentioned business.

(IV)

Different banks are enpost_titled to authorize their affiliated agencies meeting the requirement to do the new business which has been
approved. The branches of various banks can start new business after authorized by upper level banks and they should submit written
reports to local banking regulatory bureaus or branches directly under CBRC or branch banking regulatory bureaus within 10 working
days after starting the business.

III.

adjust the style of checking and approving the qualification of holding posts of senior administrative personnel

(I)

In Chinese banks, solely-owned banks established by foreign investors and Sino-foreign joint venture banks, for the senior administrative
personnel who make parallel transfer, if they have obtained the approval of taking posts, the former approval is effective and does
not need checking and approving again.

(II)

The above-mentioned senior administrative personnel may submit their auditing reports for leaving posts and materials related to holding
offices to local banking regulatory bureaus or branches directly under CBRC or branch banking regulatory bureaus within 1 month after
leaving posts.

(III)

Eliminating the records of post-holding qualifications of directors of foreign-invested banks branches.

IV.

Present style and procedure of market access of urban credit cooperatives, rural credit cooperatives and postal saving agencies maintain
unchangeable.

China Banking Regulatory Commission
2003-05-29

NOTICE OF CHINA BANKING REGULATORY COMMISSION ON FURTHER STRENGTHENING FOREIGN EXCHANGE RISKS MANAGEMENT

China Banking Regulatory Commission

Notice of China Banking Regulatory Commission on Further Strengthening Foreign Exchange Risks Management

To all the banking regulatory bureaus, policy banks, state-owned commercial banks and joint-stock commercial banks,

Recently, some relevant departments have promulgated a series of reform measures regarding Renminbi exchange rate formation mechanism
and the inter-bank foreign exchange market of our country. In particular, the over-the-counter transactions and the system of market
makers were introduced into the inter-bank spot foreign exchange market on January 4, 2006, which pose new requirements and challenges
for the business operations and risk management of the banking industry. For the purpose of effectively controlling foreign exchange
risks of the banking industry and ensuring the safe and stable operation of the banking industry, a notice on the relevant matters
is made hereby as follows:

Attach much importance to and comprehensively evaluate the possible effects of the reform of Renminbi exchange rate formation mechanism
and the development of inter-bank foreign exchange market on foreign exchange businesses and foreign exchange risks of your own bank.
The board of directors and senior managerial staff of each bank (including urban and rural credit cooperatives, the same hereinafter)
shall initiatively study and actively formulate various counter-measures in order to ensure that the development strategies of foreign
exchange businesses conform to its risk management level and level of capital adequacy. All the banks shall further improve the
foreign exchange risk management system, initiatively establish foreign exchange risk management departments or functions independent
of operational foreign exchange business departments and implement the risk management in the whole process of foreign exchange businesses
in light of the new Renminbi exchange rate formation mechanism and trading mode.

II.

Accurately calculate foreign exchange risk open positions, including the single currency open positions and overall open positions
in the bank accounts and trading accounts, and effectively control the overall foreign exchange risks of banks. At the same time,
special attention shall be paid to monitoring and management of foreign exchange risks of the clients that get loans from banks.
The effects of the alteration of the level of foreign exchange risks of such clients to their ability of debt payment shall be timely
evaluated.

III.

Strengthen the quota management of foreign exchange transactions, including the position limits and stop-loss limits of transactions,
etc. All the banks shall formulate monitoring and handling procedures and establish pre-warning mechanism for predicting quota excess,
and timely handle the unapproved transactions which exceed limits according to the policies and procedures for the quota management.
A market-maker bank shall strictly control comprehensive positions of market makers.

IV.

Enhance the price management level and quotation capacity for foreign exchange transactions. All the relevant banking institutions
shall realize an effective link-up of foreign exchange prices between the banks and foreign exchange trading markets, between the
banks and the clients and between head offices and branches, and realize a uniform quotation and dynamic management within their
respective whole bank. All the banks shall give reasonable quotation of foreign exchange transactions based on costs, proceeds and
risks analysis in order to avoid malicious price-related competition in the intra-trade competition or the sales promotion to clients.

Continuously strengthen the system construction. A market-maker bank shall strengthen the construction of trading system, information
system and risk management system, and timely collect and incorporate the foreign exchange transactions of branches into the management
of the head office, and try to collectively balance transactions at the head office in light of the actual situation, and continuously
enhance the computerization level of foreign exchange transactions and foreign exchange risk management.

VI.

Formulate and improve the credit risk management mechanism of trading opponents. With the manner of over-the-counter transactions,
all the banks shall effectively manage the credit risks of trading opponents by strengthening the credit-granting management of trading
opponents, etc., and re-evaluate the credit risks of trading opponents on terms. All the banks shall incorporate the credit risks
of clients involved in foreign exchange transactions into the management system of uniform credit-granting of enterprise legal persons.

VII.

Effectively prevent operational risks in foreign exchange transactions. All the banks shall strictly distinguish and control the operational
risks in foreign exchange transactions by following such procedures as the preparations before transactions, realization and confirmation
of transactions, capital settlement, verification of current accounts and accounting and financial control. The responsibilities
for front, middle and back offices in foreign exchange transactions shall be strictly separated. The staff for transactions shall
carry out transactions in strict accordance with the business operational authorization; the staff in back offices shall carefully
and timely confirm transactions, carry out capital settlement and verification of current accounts, which exhibit their independent
and effective risk monitoring role; and independent middle offices may be set up for monitoring the risks relating to foreign exchange
transactions when necessary. All the banks shall practically strengthen the implementation of various rules and systems and effectively
control the regulation compliance risks.

VIII.

Strengthen the internal audit of foreign exchange risks. The auditing departments shall have professionals that are familiar with
foreign exchange transactions and capable of auditing foreign exchange risks; the auditing departments shall strengthen the examination
of internal audit of foreign exchange risks, timely evaluate the shortcomings of their respective banks with respect to foreign exchange
risks control and ensure the effective implementation of various risk management policies and procedures.

IX.

Strictly control the risks of foreign exchange derivatives. The banks engaging in the derivative-related transactions from the conversion
of Renminbi into foreign currencies shall establish an effective risk management system in line with their transactions of derivatives
in strict accordance with the requirements as prescribed in the Interim Measures for the Management of the Transactions of Derivatives
of Financial Institutions; and they shall actively support and cooperate the exploration and development of new derivatives with
respect to system development and accounting assessment.

Provide qualified staff for foreign exchange transactions and foreign exchange risk management. All the banks shall fully adopt market
means when hiring and selecting the staff for foreign exchange transactions and risk management, establish effective and proper incentive
mechanism and performances assessment system and retain and absorb talents with proper treatments.

All the banks shall seriously implement such supervisory regulations as the Guidelines for the Market Risk Management of Commercial
Banks, the Interim Measures for the Management of the Transactions of Derivatives of Financial Institutions, establish and improve
the risk management system, actively enhance the market risk management level including foreign exchange risks management, and prevent
the occurrence of significant losses of foreign exchange transactions. As to the further innovations in the inter-bank foreign exchange
market, all the banks shall actively communicate and coordinate with relevant departments, formulate the pre-schemes as well as possible,
and be well prepared in all aspects in advance, and shall timely report to the supervisory department in case of any significant
matter.

All the banking regulatory bureaus are required to forward this Notice to all the city commercial banks, urban credit cooperatives,
rural commercial banks, rural cooperative banks, rural credit cooperatives and foreign-funded banks within their respective jurisdiction.

China Banking Regulatory Commission

February 28, 2006

China Banking Regulatory Commission
2006-02-28

CIRCULAR OF THE STATE COUNCIL CONCERNING SEVERAL POLICIES ON CARRYING OUT THE DEVELOPMENT OF CHINA’S VAST WESTERN REGIONS

The State Council

Circular of the State Council Concerning Several Policies on Carrying out the Development of China’s Vast Western Regions

GuoFa [2000] No.33

October 26, 2000

The People’s Government of province, autonomous regions, municipalities directly under the Central Government, ministries and commissions
and institutions directly under the State Council:

Carrying out the strategy of the development of China’s vast western regions to speed up the development of the central-western regions
is an important composition of the modernization strategy of our country and is a great decision made by the central leadership of
the Party with great foresight and an overall point of view facing the new century, and it has very important economic and political
significance. In order to reflect the highlight support of the state to the western regions, the State Council has drawn up several
policies and measures for carrying out the development of China’s vast western regions. Relevant issues are hereby notified as follows:

Principles of Policy Formulation and Support Emphasis

Principles of Policy Formulation. Carrying out the development of China’s vast western regions is a grand systematic project and an
arduous historical task, the sense of urgency, and full mental preparation for lasting and tough struggle are both needed. We shall
insist on proceeding from actual conditions and working according to objective laws; be energetic and dynamic and acting according
to capabilities; focus on the present while keep the future in view; take the whole situation into account and plan accordingly,
and make scientific reasoning; carry out in steps while give prominence to the emphasis; prevent rushing headlong into mass action
and oppose extravagance and waste; never make things in chaos. Accelerate the changing of ideas, give more effort to opening to the
outside world, carry through the strategy of making the country strong through science and technology and the strategy of sustainable
development, integrate giving full play to the role of market mechanism and doing well macro-adjustment and control, combine the
self-reliance spirit of cadres and masses of people of the western regions and the support from all sides.

Key Tasks and Strategic Objectives. For the present and the years to come, the key tasks of carrying out the development of China’s
vast western regions are: speeding up the construction of infrastructure facilities; improving the protection and development of
environment; consolidating the basic status of agriculture, adjusting the structure of industry, and developing characteristic tourism;
developing undertakings of science and technology, education, culture and sanitation. To work hard for the breakthrough progress
in the construction of infrastructure facilities and environment of the western regions and to make a good beginning of the development
of the western regions in 5 to 10 years. The western regions shall be built into a new one with prosperous economy, advanced society,
stable living, united nationalities and beautiful sceneries at the middle period of the 21st century.

Key regions. The range in which policies on the development of the western are applicable includes Chongqing Municipality, Sichuan
Province, Guizhou Province, Yunnan Province, Tibet Autonomous Region, Shangxi Province, Gansu Province, Ningxia Hui Autonomous Region,
Qinghai Province, Xinjiang Uygur Autonomous Region, Inner Mongolian Autonomous Region and Guangxi Chuang Autonomous Region. Carrying
out the development of China’s vast western regions shall rely on the main arteries of traffic like the Eurasia Continental Bridge,
the Changjiang River Channel and the South-west Access to the Sea, give full play to the role of central cities, connect the units
with lines and spread the experience gained at selected units to an entire area to form characteristic interregional economic areas
of the West Longhai Lanxin Line, the Upper Reaches of the Changjiang River, and the Nan(nin)-Gui(yang)-Kun(ming)area, promote the
development of other regions and carry forward the development of China’s vast western regions step by step and with emphasis.

Policies on Increasing Financial Input

Increase Financial Input for Construction. Increase the proportion of central financial construction funds used in the western regions.
Under the condition that loans are granted according to lending principles, state policy-related bank loans and preferential loans
of international financial organizations and foreign governments shall be arranged for projects of the western regions as much as
possible. The investment in major projects of infrastructure construction of the western regions newly arranged by the state mainly
comes from central policy-related construction funds, other special construction funds, bank loans and foreign investments, no gap
of funds shall be left. The central authorities shall raise special funds for the development of the western regions by various means.
Relevant central departments shall show support to the western regions when drawing up plannings and policies of the development
of industries and arranging special funds. It is encouraged to put enterprise funds into major construction projects of the western
regions.

Give Priority to Construction Projects. Infrastructure facilities like irrigation works, traffic and energy, development and utilization
of superior resources, industrialization projects of characteristic new- and high-tech and military technologies converted to civilian
productions shall have priority in the overall layout of the western regions. Strengthen the build-up of corporate liability system,
project capital system, project bidding system, system of supervision and administration of project quality, system of supervision
and administration of project environment of the western regions, and the prophase work of construction projects.

Increase Financial Transfer Payment. Increase the scale of general transfer payment to the western regions step by step along with
the growth of central financial power. Tilt in favor of the western regions in the distribution of special aid funds for agriculture,
social security, education, science and technology, sanitation, birth control, culture and environment protection. The arrangements
of poverty-relief funds of central finance shall put stress on the western poverty-stricken areas. The central finance shall pay
most of the aid funds and cash subsidies for the food, seeds and sprouts needed for the projects of restoring forest and grassland
from cultivated land, of natural forest protection, and that of the control and treatment of sand carried out with the approval of
the state. Local financial revenue that is affected because of the implementation of projects of restoring forest and grassland from
cultivated land and natural forest protection shall get appropriate aid from central finance.

Increase Financial Credit Support. Banks shall, according to the principle of independence of commercial credit, increase credit input
to the construction of basic industries of the western regions, and put stress on supporting the construction of large and medium-sized
energy projects of railways, trunk line roads, electric power, oil and natural gas. Accelerate the evaluation and examination of
projects of loans affiliated to national debts to guarantee that the loans are in place as soon as possible according to the construction
schedule. As regard to projects of infrastructure facilities with large investment and long construction period, the term of loan
may be appropriately extended according to the project’s construction cycle and repaying ability. The State Development Bank shall
increase the proportion of newly added loans used in the western regions year by year. Expand the scope of loans granted to the projects
of infrastructure facilities, whose rights to charge or the rights to earnings are held in pledge. Increase credit support to the
development of agriculture, environment protection, superior industries, construction of small towns, technology reform of enterprises,
new- and high-tech enterprises and medium- and small-sized enterprises of the western regions. Actively provide study-assist loans
and loans for student apartments in the western regions. Loans for reconstruction of rural electric power grid and key projects of
large sums of loans for superior industries shall be specially arranged by the parent bank of agriculture banks, and direct loans
from the parent banks of various commercial banks shall also be arranged. Introduce banks of stock system to establish branch institutions
in the western regions step by step.

Policies on Improving Investment Environment

Make Efforts to Improve Soft Environment of Investment. Further the reform of state-owned enterprises of the western regions, accelerate
the establishment of the modern enterprise system, and do a good job of strategic adjustment of the state economy and reorganization
of assets of state-owned enterprises. Increase the support to state-owned enterprises of the western regions for clearing debts and
getting out of difficulty, and for reorganization and reconstruction. Strengthen the foster and build-up of commodity and element
markets of the western regions. Actively lead non-public economic sectors like individual economy and private economy of the western
regions to speed up development, and in principle, domestic enterprises of all kinds of systems of ownership are allowed to enter
all investment areas that are open to foreign businessmen according to relevant laws and regulations. Accelerate the establishment
of credit guaranty system of and service institutions for medium- and small-sized enterprises. Except the major and important projects
of the state and projects with special provisions, for all enterprises that invest equity capital or bank loans in projects of industries
encouraged and allowed by the state, the project proposals and research reports of feasibilities may be combined and submitted for
approval according to prescribed procedures, the preliminary designs and commencement reports may be free from the examination and
approval of governments, thus to simplify the procedures of the examination and approval of projects with foreign investments. Further
the conversion of governmental functions, separate governmental functions from enterprise management, reduce matters that need examination
and approval, simplify transaction procedures, intensify the sense of service, eliminate administrative monopoly, regional blockade
and protection, strengthen administration by law and protect legal rights and interests of consumers. Improve environment protection,
prevent rash and repeated construction, and close factories, mines and enterprises that produce inferior products, waste resources,
cause serious pollution and have no safe production conditions.

Implement Policies of Preferential Taxation. With regard to enterprises with domestic investment and enterprises with foreign investment
of industries encouraged by the state, which are established in the western regions, business income tax shall be levied upon at
the rate with 15% reduction during a certain period. With the approval of people’s governments of the provincial level, enterprises
of autonomous minority nationality areas may get reduction or exemption of business income tax regularly. With regard to the establishment
of enterprises of traffic, electric power, irrigation works, postal service and broadcasting in the western regions, business income
tax are exempted for the first two years, and half reduced for the third year. Income of agricultural specialties produced from forests
and grassland restored from cultivated land for the purpose of environment protection may be exempted from agricultural specialty
tax for 10 years. Land used for construction of national highways and provincial highways in the western regions may be exempted
from cultivated land occupancy tax according to land used for construction of railways and civil aviation. The people’s governments
of provinces, autonomous regions and municipalities directly under the Central Government shall decide on whether the land used for
construction of other highways may be exempted from cultivated land occupancy tax. With regard to the projects of industries encouraged
for domestic investment, industries encouraged for foreign investment and superior industries, when importing advanced technical
equipments for self-use within the total amount of investment, customs duty and value-added tax in the link of import may be exempted,
except those commodities prescribed by the state which shall not be exempted from tax.

Implement Preferential Policies on Land and Mineral Resources. With regard to planting forests and grassland on barren hills and wasteland,
and to restoring forests and grassland from cultivated land of the western regions, the policy of “who restores, plants or operates,
who has the right to the use of land and the ownership of the forests and grassland” shall be implemented. Various economic organizations
and individuals may apply to use barren hills and wasteland owned by the state and conduct environment protection construction like
restoring vegetation of trees and grasses. On the condition that construction investment and afforestation work have been in place,
the right to the use of state-owned land may be obtained by assignment, fees for assignment may be reduced or exempted, the right
to the use of land shall remain unchangeable for 50 years, the term may be extended based on application after expiration, and the
right to the use of land may be inherited and transferred with compensation. If it is necessary to take back the right to the use
of state-owned land because of state construction, compensation shall be given according to law. Ecological forests restored from
cultivated land that enjoy state ration allowance shall not be felled. Strictly protect the basic farmland, and realize the balance
between occupancy and restoration of cultivated land. Further improve the system of examination and approval of land used in construction,
simplify procedures, and promptly provide and protect land used in construction. Income from paid use of current land which is used
in construction of towns shall be used mainly in the infrastructure construction of the towns. Increase policy support to the research,
evaluation, exploration, development, protection and reasonable utilization of mineral resources of the western regions. Draw up
policies and measures to promote legal assignment and transfer of exploration right and exploitation right, and foster the mining
right market.

Adjust by the Mechanism of Price and Charge. Further the price reform, and further increase the proportion of market in the adjustment
of price. Set the price of “transmitting gas from west to east” and “transmitting electricity from west to east” reasonably, and
establish the mechanism of price forming in the manufacturing and marketing links of natural gas, electric power, oil and coal. Accelerate
the steps of water price reform, increase water price to a reasonable level step by step according to the requirements of water saving,
and perfect the collection and administration of charges for water resources. Strengthen unified administration of water resources
of drainage area, strictly implement the system of planned use of water and distribution of water, and promote reasonable utilization
and development of water resources. Charge system of city sewage and garbage disposal shall be carried out at large, and charges
collected shall be specially used in the disposal of sewage and garbage. Improve the pollution prevention and protection of water
resources of upper reaches of rivers and headwater areas. Operators may independently set the price of airplane tickets of inter-provincial,
provincial or regional branch lines in the western regions. Special freightage may apply to railways newly built in the western regions.
Improve general postal service and telegraphic service of the western regions.

Policies on Expanding the Opening to the Outside World and Internal Areas.

Further Expand Areas Opened to Foreign Investment. Encourage foreign businessmen to invest in infrastructure construction and resource
development like agriculture, irrigation works, ecology, traffic, energy, city planning, environment protection, mineral resources,
tourism, etc, and encourage the establishment of technology research and development centers. Expand service and trade areas of the
western regions opened to the outside world, extend experimental foreign investment units of banks, commercial retail enterprises
and foreign trade enterprises to municipalities directly under the Central Government, provincial capitals and capital cities of
autonomous regions, allow banks with foreign investment of the western regions to run RMB business step by step, allow foreign businessmen
to invest in the western regions in telecommunication, insurance, tourism, and to set up Sino-foreign equity joint accounting firms,
law firms, engineering design enterprises, railway and highway freight transport enterprises, municipal public enterprises and other
enterprises of areas promised to open. Experimental units of some areas that are to be opened are allowed to start in the western
regions before other places.

Further Widen Channels of Using Foreign Investment. Experimental units using foreign investment by BOT in the western regions shall
develop experimental units using foreign investment by TOT. Allow projects with foreign investment to launch project financing which
includes RMB. Support enterprises with foreign investment of the western regions that meet requirements to list in domestic and overseas
stock markets. Support enterprises of industries encouraged and allowed by the state of the western regions to attract foreign investment
by transferring managerial authority, selling stock equity, merger and reorganization. Actively explore ways of attracting foreign
investment like Sino-foreign equity joint industry funds and risk investment funds. Encourage enterprises with foreign investment
in China to reinvest in the western regions, and reinvestment projects the foreign investment of which exceeds 25% shall enjoy the
treatments of enterprises with foreign investment. With regard to foreign businessmen investing in infrastructure and superior industry
projects in the western regions, the limit of the proportion of foreign investment may be appropriately eased, and the proportion
of RMB loans for capital assets investment provided by domestic banks may be appropriately eased. Allow some projects of the western
regions to increase the proportion of foreign preferential loans in the total investment appropriately. When superior industries
and export-oriented projects of the western regions introduce in advanced foreign technologies and equipments, the state shall give
support in the arrangement of the quota of foreign commercial loans. Actively make efforts to give priority to projects of the western
regions in the arrangement of multilateral or bilateral capital donations.

Energetically Develop Foreign Economy and Trade. Further enlarge the power of enterprises to make decisions in foreign trade and operation,
encourage developing the export of superior products, foreign projects contracting and labor cooperation, investing and establishing
enterprises abroad especially in the neighboring countries, and ease the limit of personnel entry and exit. With regard to technologies
and equipments in urgent need for economic development of the western regions, proper consideration shall be given in import administration.
With regard to overseas tourists entering China in important tourism cities of the western regions, landing visa and other policies
of convenient entry visa shall be implemented according to situations. Carry out more preferential policies of border trade, ease
limits on matters like drawback, business scope of import and export commodities, import and export commodity quotas, license administration
and personnel entry and exit, promote the western regions and neighboring countries to open markets mutually, and promote healthy
development of economic and technological cooperation with neighboring countries and areas.

Promote Regional Cooperation and Mutual Support. On the condition that repeated constructions are prevented, the transfer of under-developed
technologies and environment pollution are forbidden, strong measures shall be taken in aspects like investment, finance, taxation,
credit, economy and trade, industry and commerce, labor and statistics to support enterprises of the east and middle regions to cooperate
in various forms in the western regions in investing and establishing enterprises, purchasing shares and becoming shareholders, purchase
and merger, and technology transfer. Under the guidance of central and local governments, mobilize all forces of society to strengthen
mutual support between east and west, further increase support to the western poverty-stricken areas and minority nationality areas,
continue to promote the “Prosper the Border Area and Enrich the People” Action. Develop various forms of regional economic cooperation
centering on the key areas of the western development

Policies on Attracting Qualified Personnel and Developing Science and Technology, and Education.

Attract and Wisely Use Qualified Personnel. Draw up policies in favor of the western regions to attract and retain qualified personnel,
and to encourage them to establish business. Along with the reform of the wages system, provide allowance for tough and remote areas,
and increase the wages level of personnel of departments and institutions of the western regions to be equal to or above the national
average level step by step. Relying on key tasks, major construction projects and important research topics, provide favorable work
and living conditions to attract domestic and foreign personnel with professional talent to devote themselves in the western development.
Reform the domiciliary control system, allow residents of other regions, who go to the western regions to make investments, run business
and take part in the development, to keep their registered permanent residences of original domiciles. For personnel who have legal
and fixed domicile in cities below the prefecture level (including cities of the prefecture level) and small towns of the western
regions, and have stable jobs or living incomes, permanent residence in the towns may be registered based on their own wills. Encourage
reasonable transfer of spare agriculture labor force and reasonable inter-regional population flow. Expand exchange of cadres between
the east and western regions. Relevant central departments, universities and colleges, and research institutions of the east regions
shall increase intellectual service and personnel support provided to the western regions. Increase the introduction of foreign talents
to the western regions. Relying on relevant central departments and coastal economically developed areas, strengthen the foster of
leaders and cadres, cadres of minority nationalities of the western regions and the training of civil servants, professional technological
personnel and enterprises managerial personnel.

Bring the Leading Role of Science and Technology into Full Play. Give more support tilting to the western regions in all kinds of
planned science and technology funds, and increase the amount of science and technology funds used in the western regions step by
step. Centering on the key tasks of the development of western regions, strengthen the build-up of science and technology capacity,
organize brainstorm projects of key technologies of commonness, speed up the spread and application of important technological achievements
and the pace of industrialization. Support the development of the industrialization of military technologies converted to civilian
productions. Support research institutions, colleges and universities of the western regions to strengthen characteristics application
research and basic research. Further the reform of science and technology system, accelerate the transformation of research institutions
engaged in application research to enterprises, strengthen the association of production, study and research, promote the close integration
of science and technology and economy. Allow and increase the proportion of development expenses drew from the sales amount by enterprises
of the western regions. Give more support of innovation funds for small- and medium-sized science and technology enterprises to projects,
which meet the requirements, of the western regions. Simplify the registration of industry and commerce, and increase the upper limit
of the proportion of stock equity, option and intellectual property in the total capital when science and technology personnel establish
science and technology enterprises in the western regions,

Increase Educational Input. Continue to carry out compulsory education projects in the poverty-stricken areas, give more support of
the state to compulsory education in the western regions, increase funds input and make efforts to speed up the realization of nine-year
compulsory education. Give support to the construction of universities and colleges of the western regions, and the universities
and colleges in the east and middle regions are encouraged to expand the scale of enrollment of the students from the western regions.
Strengthen the project of mutual support of schools of the east regions to schools of western poverty-stricken areas, and the project
of mutual support of schools of large and middle sized cities of the western regions to schools of rural depressed areas. Build up
long-distance education system in the western regions. Strengthen the education and training of grassroots cadres and peasants of
scientific, technological and cultural knowledge.

Strengthen the Construction of Cultural and Sanitary Establishments. State planned subsidies for construction of local cultural establishments,
investment for broadcasting and television establishments and cultural relics, shall tilt in favor of the western regions. Further
carry out economic policies for state cultural propaganda units to prosper literature creations. Carry forward “Village to Village”
construction of broadcasting and television establishments of natural villages, further expand the effective coverage of broadcasting
and television. Promote the development of cultural undertakings of border areas and minority nationality areas. Support the cultural
build-up and spiritual civilization build-up of the western regions. Give more support to the sanitary and birth control build-up
of the western regions, put stress on establishing and perfecting the primary health care system of rural areas.

The Office of the Development of Western Regions of the State Council shall, jointly with relevant departments, act promptly to study
and work out relevant detailed rules of the policies or opinions on implementation according to the above policies and measures,
and promulgate and put them into effect with the approval of the State Council. Governments of all levels of the western regions
shall implement unified policies on the development of China’s vast western regions according to the provisions of the state.

The above policies and measures mainly apply to the current time and 10 years (year 2001 to 2010) to come from now on, and will be
further perfected with the implementation of the strategy of the development of China’s vast western regions. All policies, measures
and the detailed rules of them prescribed shall come into force as of January 1, 2001.

The State Council
2000-10-26

PROVISIONS OF THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE, THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION, AND THE STATE ECONOMIC AND TRADE COMMISSION ON THE RELEVANT ISSUES CONCERNING THE EXECUTION OF THE CIRCULAR ON THE RELEVANT ISSUES FOR PYRAMID SELLING ENTERPRISES WITH FOREIGN INVESTMENT TO TRANSFORM THEIR SELLING METHODS

20051231

The Ministry of Foreign Trade and Economic Cooperation, the State Administration for Industry and Commerce, the State Economic and
Trade Commission

Provisions of the State Administration for Industry and Commerce, the Ministry of Foreign Trade and Economic Cooperation, and the
State Economic and Trade Commission on the Relevant Issues Concerning the Execution of the “Circular on the Relevant Issues for Pyramid
Selling Enterprises with Foreign Investment to Transform their Selling Methods”

GongShangGongZi [2002] No.31

February 4, 2002

The administrative bureaus for industry and commerce, the commissions of foreign trade and economic cooperation and the economic and
trade commissions (departments) of all provinces, autonomous regions and municipalities directly under the Central Government:

In order to execute the requirements in the “Circular of the General Office of the State Council on Carrying out the Special Punishment
Action of Severely Striking Pyramid Selling” (GuoBanFa [2001] No. 80), strengthen the supervision and administration of the enterprises
with foreign investment which engaged in the pyramid selling business activities but are approved to transform their selling methods
(hereinafter referred to as the transforming enterprises), the relevant issues concerning the execution of the “Circular on the Relevant
Issues for Pyramid Selling Enterprises with foreign investment to Transform Their Selling Methods” (ZiFa [1998] No.455 of the MOFTEC)
are hereby stipulated as follows:

The transforming enterprises must strictly abide by the provisions in the “Circular of the State Council on Prohibiting Pyramid Selling
Business Activities” (GuoFa [1998] No.10) and the “Circular of the General Office of the State Council on Transmitting the Opinions
of the State Administration for Industry and Commerce and Other Departments on Severely Striking the Illegal Business Activities
Such as Pyramid Selling and Covert Pyramid Selling, etc.” (GuoBanFa [2000] No.55) as well as the “Circular on the Relevant Issues
for Pyramid Selling Enterprises with foreign investment to Transform Their Selling Methods” (ZiFa [1998] No.455 of the MOFTEC), and
shall not engage in the pyramid selling or covert pyramid selling activities in any form.

II.

A transforming enterprise shall not organize the employed salesmen into a network in the name of a department, group or team, etc.
to engage in marketing activities.

III.

A transforming enterprise shall calculate the remuneration of each employed salesman only on the basis of the amount of the products
he has directly sold to the final consumers, and shall not calculate any remuneration for the salesmen by reason of recommendation
for accession or else. The sales managers of a transforming enterprise must be formal employees of the enterprise.

IV.

A transforming enterprise must not employ salesmen to sell its products until it has established stores within the jurisdiction of
the region or city (also municipality directly under the Central Government, district or county) where its branch, which is approved
to be established and to employ salesmen, is located.

A transforming enterprise’s branch at the provincial level which was approved to be established and to employ salesmen, shall establish
stores in the regions and cities within the province (autonomous region, municipality directly under the Central Government) where
it carries out its selling activities, and may not employ salesmen to engage in the selling activities until it has been approved
and registered by the administrative organ for industry and commerce.

A transforming enterprise shall conclude a contract with each employed salesman, and the contract shall state the salesman and the
store to which he belongs. Each salesman is only allowed to engage in the selling activities within the jurisdiction of the region
or city where his store is located, instead of engaging in the selling activities in different regions.

VI.

A transforming enterprise shall not employ any State civil servant, active serviceman, regular full-time student or any other person
prohibited by laws or regulations from doing concurrent business to engage in the selling activities.

A salesman employed by a transforming enterprise shall have the identification certificate or temporary residential certificate that
indicates he is at the locality of the store.

VII.

A transforming enterprise shall ensure that the consumers are able to buy from its stores all the products it has produced, and shall
not stipulate directly or in a disguised form that part of the products can only be bought through the salesmen.

VIII.

A transforming enterprise shall not set forth the premise to employ salesmen by selling them certain documents or in any other name,
nor shall it force any salesman to purchase such documents. A transforming enterprise shall neither demand the salesmen to buy up
its products it supplies by force, implication or inducement, etc., nor demand the salesmen in a disguised form to buy up its products
it supplies in the name of paying the training expenses, entry fee, suretyship bond or guaranty deposit, etc..

IX.

A salesman shall, when selling products to consumers, show the certificate indicating the transforming enterprise to which he belongs
and the store in which he works. When carrying out selling activities, a salesman may only introduce the functions, efficacy and
methods of use of the company’s products, instead of making propaganda which overstates the product’s functions or debases commodities
of the same category, taking the opportunity to recruit salesmen or develop the next level of salesmen for the transforming enterprise,
or taking the opportunity to organize training activities.

A transforming enterprise shall centrally organize the training activities of its salesmen, shall bear training expenses, and shall
accept the inspections and supervisions of relevant departments. The managers, lecturers and tutors of the training activities must
be formal employees of the transforming enterprise. No salesman is allowed to organize trainings or to engage in management. The
contents of the trainings shall be limited to the introduction of product-related knowledge, selling skills and interpretation of
the company rules and systems, and no propaganda shall be made to overstate the product’s functions or debase other commodities of
the same category. The number of the salesmen receiving training each time shall not exceed 50.

A transforming enterprise must work out the annual training plans for the salesmen (including the time, place, contents and number
of participants, etc. of trainings), shall, by the end of November of each year, submit the plans to the State Administration for
Industry and Commerce, the Ministry of Foreign Trade and Economic Cooperation, and the State Economic and Trade Commission for record,
and shall accept the inspections and supervisions of the relevant departments.

XI.

A transforming enterprise’s salesmen shall engage in selling activities in accordance with the relevant provisions, and the transforming
enterprise shall bear the liabilities for its salesmen’s acts in violation of laws or rules during their selling of the enterprise’s
products.

XII.

The validity period of the “Salesman’s Certificate” issued by the original State Bureau of Internal Trade shall expire at the end
of 2001. From the year 2002, the State economic and trade department will, jointly with the labor department, enact separate administrative
measures in accordance with the relevant provisions of the State.

A transforming enterprise shall report, every half a year, the number of the salesmen in each province and the relevant information
to the State Administration of Industry and Commerce, the Ministry of Foreign Trade and Economic Cooperation, and the State Economic
and Trade Commission.

XIII.

The transforming enterprises’ acts in violation of laws or rules shall be investigated by the administrative organ of industry and
commerce in accordance with the relevant provisions of the State.

XIV.

These Provisions shall enter into force as of April 1, 2002.

The Ministry of Foreign Trade and Economic Cooperation, the State Administration for Industry and Commerce, the State
Economic and Trade Commission
2002-02-04

CIRCULAR OF THE CHINA SECURITIES REGULATORY COMMISSION ON PUBLICIZING THE SPECIAL PROVISIONS ON THE CONTENT AND FORMAT OF DIRECTIONS OF FOREIGN-INVESTED COMPANIES BY STOCK IN RAISING CAPITAL BY FLOATING SHARES – RULE 17 ON INFORMATION DISCLOSURE BY COMPANIES PUBLICLY ISSUING SECURITIES

The China Securities Regulatory Commission Commission

Circular of the China Securities Regulatory Commission on Publicizing the Special Provisions on the Content and Format of Directions
of Foreign-invested Companies by Stock in Raising Capital by Floating Shares —Rule 17 on Information Disclosure by Companies Publicly
Issuing Securities

ZhengJianFa [2002] No.17

March 19, 2002

Foreign-invested companies by stock planning to issue securities to the public:

In order to normalize the information disclosure behavior of foreign-invested companies by stock and protect the legitimate rights
and interests of the investors, the Commission formulates the Special Provisions on the Content and Format of Directions of Foreign-invested
Companies by Stock in Raising Capital by Floating Shares —Rule 17 on Information Disclosure by Companies Publicly Issuing Securities,
which is hereby publicized for implementation.

Attachment:Special Provisions on the Content and Format of Directions of Foreign-invested Companies by Stock in Raising Capital by Floating Shares
—Rule 17 on Information Disclosure by Companies Publicly Issuing Securities

Article 1

The Provisions are formulated in line with the Corporate Law of the People’s Republic of China, the Security Law of the People’s Republic
of China among others in order to normalize the information disclosure behavior of the foreign-invested companies by stock and safeguard
the legitimate rights and interests of the investors.

Article 2

When compiling the Directions of Fund-raising by floating shares for issuing shares to the public, the stock issuers shall follow
both the general regulations of China Securities Regulatory Commission on the content and format of the directions, and the requirements
of the Special Provisions.

Article 3

The stock issuers shall disclose the following risks that may possibly exist:

(i)

The risk of depending on the foreign raw material providers, foreign clients and foreign technical services.

(ii)

The risk of possible changes in China’s laws, regulations and policies concerning tax preferences to enterprises with foreign investment.

(iii)

The risk of possible changes in the laws and regulations on investment in or technology transfer to China of the domicile countries
or regions of the foreign stockholders or the company headquarters.

(iv)

The risk of exchange rate.

Article 4

The issuer shall disclose the laws and regulations on investment in and technology transfer to China of the domicile or headquarter
countries or regions of foreign stockholders with 5% or more of the total stocks.

The issuer shall disclose such information as limitation on equity transfer by the articles of association of the company.

Article 5

The issuer shall disclose in detail information on affiliated trade with the stockholders, including but not limited to:

(i)

Whether the business and technology of the issuer depend on the foreign stockholders, and whether there are some limitations on the
use of trademark, patent, and expertise. Measures to safeguard the public investors’ interests shall be clarified, should the above
circumstances exist.

(ii)

Information on the affiliated trade with foreign stockholders in the past three years, including but not limited to supply of raw
material, product sales, collection of technology transfer fee, administration and sales expenses apportionment as well as pricing
criteria, the opinions of the accounting firms auditing the issuance on the fairness and equitability of the affiliated trade, concrete
measures to ensure the fairness and equitability of the affiliated trade. The total volume of next year’s affiliated shall be announced
in the discussions and analysis among the management. In case the issuer is a manufacturing company, sources of raw materials and
product sales channels shall also be disclosed.

(iii)

The main content and the concrete implementation of the agreement on parting market signed by the issuer and other foreign stockers.

Article 6

The stock issuer shall disclose the nationalities, rights of permanent residence overseas of the directors and senior executives as
well as their positions in other institutions both at home and abroad.

Article 7

The foreign investment companies by stock established in the mainland of China by investors from by the investors of Hong Kong, Macao
and Taiwan regions shall also comply with this provision.

Article 8

The provision shall enter into force as of the date of promulgation.

The China Securities Regulatory Commission Commission
2002-03-19

1 234...12 Page 3 of 12

Divorce

THE PROVISIONS OF THE GENERAL ADMINISTRATION OF CUSTOMS OF PEOPLE’S REPUBLIC OF CHINA ON IMPLEMENTING THE RULES OF ORIGIN...

CIRCULAR OF THE PEOPLE’S BANK OF CHINA ON RELEVANT ISSUES CONCERNING THE MARKET ACCESS OF FOREIGN-FUNDED FINANCIAL INSTITUTIONS AFTER...

PROCEDURES ON THE BOOK-ENTRY GOVERNMENT BONDS TRADING OVER THE COUNTER OF COMMERCIAL BANKS

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON INFORMING THE SUPPLEMENTARY SCHEME OF THE PASSIVE QUOTA DISTRIBUTION SCHEME 2002 ON SOME CATEGORIES OF TEXTILES FOR TEXTILE-PRODUCING ENTERPRISES EXPORTING BY THEMSELVES

CIRCULAR OF THE PEOPLE’S BANK OF CHINA ON ADJUSTING THE POLICIES ON ADMINISTRATION OF FOREIGN CURRENCY BANKNOTES

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE TAX POLICIES FOR FURTHER ENCOURAGING THE DEVELOPMENT OF SOFTWARE AND INTEGRATED CIRCUIT INDUSTRIES

INTERIM RULES ON THE PROCEDURES FOR ADJUSTING THE RANGE OF PRODUCTS UNDER SAFEGUARDS

DECISION OF CHINA BANKING REGULATORY COMMISSION ON ADJUSTMENT OF BANKING MARKET ACCESS MANAGEMENT STYLE AND PROCEDURE

NOTICE OF CHINA BANKING REGULATORY COMMISSION ON FURTHER STRENGTHENING FOREIGN EXCHANGE RISKS MANAGEMENT

CIRCULAR OF THE STATE COUNCIL CONCERNING SEVERAL POLICIES ON CARRYING OUT THE DEVELOPMENT OF CHINA’S VAST WESTERN REGIONS

CIRCULAR OF THE CHINA SECURITIES REGULATORY COMMISSION ON PUBLICIZING THE SPECIAL PROVISIONS ON THE CONTENT AND FORMAT OF DIRECTIONS OF FOREIGN-INVESTED COMPANIES BY STOCK IN RAISING CAPITAL BY FLOATING SHARES – RULE 17 ON INFORMATION DISCLOSURE BY COMPANIES PUBLICLY ISSUING SECURITIES

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7