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CIRCULAR OF CHINA INSURANCE REGULATORY COMMISSION CONCERNING REGULATING THE ADMINISTRATION ON PREMIUM RATES IN THE INSURANCE CLAUSES OF COMMERCIAL MOTOR VEHICLES

Circular of China Insurance Regulatory Commission concerning Regulating the Administration on Premium Rates in the Insurance Clauses
of Commercial Motor Vehicles

Bao Jian Fa [2006] No. 75
July 4, 2006

Each property insurance company, each insurance regulatory body and China Insurance Association,

The Regulation on Compulsory Traffic Accident Liability Insurance for Motor Vehicles (hereinafter referred to as compulsory traffic
insurance) implemented as of July 1, 2006 is conducive to promoting a faithful and sound business operation of the property insurance
sector, is conducive to promoting a healthy development of the insurance industry and is conducive to promoting the social harmony
and stability. Each insurance company shall grasp this good chance, actively promote product innovation and unremittingly improve
the product system so as to ensure a smooth transition between the commercial motor vehicle insurance and the compulsory traffic
insurance as well as a sustainable, quick and sound development of the property insurance sector. We hereby give the notice about
related matters as follows:

1.

An insurance company shall develop the commercial motor vehicle insurance products on the compulsory traffic insurance in time. The
principles of compensation for commercial motor vehicle insurance shall abide by the related provisions of the Law of the People￿￿s
Republic of China on Road Traffic Safety. Particularly, an insurance company shall develop products of the third party liability
insurance for commercial motor vehicles beyond the maximum amounts of compensation in sub-items under the compulsory traffic insurance,
whose structure of premium rates shall be basically consistent with the compulsory traffic insurance and in which the specific vehicle
types can be further sub-divided.

2.

China Insurance Association may develop the basic premium rates in insurance clauses for the sector of commercial motor vehicle insurance
(hereinafter referred to as the premium rate of the Association). An insurance company may, in accordance with the real situation,
choose the present premium rate of the Association in force or develop new ones by itself. If the premium rate of the Association
is selected, any alteration may not be made thereon and any random portfolio may not be made among different sets of premium rates
of the Association, but supplementary motor vehicle insurance products can be developed in light of the premium rates of the Association.

3.

If an insurance company or China Insurance Association makes an application for any premium rate for the insurance clause of commercial
motor vehicles, it shall satisfy the requirements of the laws and regulations as well as industrial norms. The application materials
shall be complete and accurate. Such items as data basis, actuarial method and proceeding shall be indicated in the actuarial report
so as to ensure that the premium rates are both scientific and reasonable. The setting of processing fees and any other surcharge
rates shall be reasonable and proper, and the specific standards shall be clearly indicated. The rating standards for the processing
fees may differ according to product categories and sales channels. The processing fee rate per policy for a same product category
or sales channel may not go beyond the standards described in the actuarial report.

4.

The interval period for an insurance company or China Insurance Association to make an application for adjusting the clause premium
rates shall be at least 6 months. Particularly, to adjust the premium rate of the Association, an application shall be filed by China
Insurance Association with China Insurance Regulatory Commission. An insurance company may, upon approval of China Insurance Regulatory
Commission, choose the premium rate at its own will. If an insurance company needs to continue the premium rate of the Association
before adjustment, a new application shall be filed with China Insurance Regulatory Commission as a self-developed product.

5.

Each branch and sub-branch of an insurance company shall implement the premium rates of insurance clauses of commercial motor vehicles
as approved by China Insurance Regulatory Commission and may not change it unlawfully. Since July 1st, 2006, the insurance regulatory
bodies may not accept the application of any branch or sub-branch of an insurance company for adjusting the premium rate of motor
vehicles.

6.

When issuing and distributing any insurance policy, the insurance company shall provide the related insurance clauses to the insurance
purchaser. Since October 1, 2006, where an insurance company provides any insurance clause to any insurance purchaser, the related
clause serial number as approved by China Insurance Regulatory Commission shall be indicated after the clause name.

7.

Since July 1, 2006, an insurance company shall use the new commercial motor vehicle insurance products which are related to the compulsory
traffic insurance as approved by China Insurance Regulatory Commission. It shall cease the sale of the original motor vehicle insurance
products.

8.

The present Circular shall enter into force as of the distribution date. Any matter that has not been indicated herein shall be implemented
in accordance with the Measures concerning the Administration of Insurance Clauses and Premium Rates of Property Insurance Companies
and the related provisions.



 
China Insurance Regulatory Commission
2006-07-04

 






CIRCULAR OF THE GENERAL OFFICE OF THE MINISTRY OF COMMERCE CONCERNING DOING WELL THE REFORM OF NON-TRADABLE SHARES OF FOREIGN-FUNDED LISTED COMPANIES

Circular of the General Office of the Ministry of Commerce concerning Doing Well the Reform of Non-tradable Shares of Foreign-funded
Listed Companies

Shang Ban Zi Han [2006] No. 63

The competent departments of commerce in all the provinces, autonomous regions, municipalities, cities specifically designated in
the state plan, and Xinjiang Production and Construction Corporations:

In order to do well the reform of non-tradable shares of foreign-funded listed companies, the Ministry of Commerce and the Securities
Regulatory Commission jointly issued the Circular of the Ministry of Commerce and the Securities Regulatory Commission concerning
Foreign Investment Administration relevant to the Reform of Non-tradable Shares of Listed Companies(Shang Zi Fa [2005] No.565)(hereinafter
referred to as the Circular) on October 26, 2005, which clearly prescribed such issues as the procedures and transaction time limit
of non-tradable shares for A-share listed companies(hereinafter referred to as foreign-funded listed companies) holding the warrant
of foreign investment.

In order to actively coordinate with the relevant departments to do well relevant works of foreign investment concerning the reform
of non-tradable shares and to press foreign-funded investment companies to accelerate the reform of non-tradable shares, the competent
departments of commerce in all the provinces, autonomous regions, municipalities, cities specifically designated in the state plan,
and Xinjiang Production and Construction Corporations are required to show great concerns to the progress made in the reform of non-tradable
shares of foreign-funded listed companies and to transfer the application documents to the Ministry of Commerce within two days after
the program concerning the reform of non-tradable shares carried out by foreign-funded listed companies has been voted and approved
by the relevant conference of board of directors

The Circular is hereby given.

The General Office of the Ministry of Commerce

July 4, 2006



 
General Office of the Ministry of Commerce
2006-07-04

 






DECISION OF THE STATE COUNCIL ON AMENDING THE PROMULGATION

Order of the State Council of the People’s Republic of China

No. 470

The Decision of the State Council on Revising the Regulations for the Supervision and Administration over Cotton Quality is hereby
promulgated, and shall enter into force as of the date of promulgation.
Wen Jiabao, Premier of the State Council

July 4, 2006

Decision of the State Council on Amending the promulgation

The State Council has decided to revise the promulgation as follows:

1.

Paragraph 1 of Article 3 shall be revised toas: ” When a cotton business operator intends to engage in cotton processing business,
it shall obtain its qualification certification according to the relevant provisions of the state. ”

2.

Article 24 shall be amended as: ” Where a cotton business operator, when purchasing cotton, violates Paragraph 2 or 3 of Article
7 of the present Regulations by failing to meet the national standards or technical norms to exclude foreign fibers and other noxious
substances before determining the category, grade and quantity of the purchased cotton, or by failing to conduct technical treatment
on the purchased cotton which goes beyond the national moisture standard, or by failing to classify and grade the purchased cotton
for placement, it shall be ordered by the cotton quality supervision institution to make corrections, and imposed upon a fine up
to RMB 30,000 Yuan. ”

This Decision shall enter into force as of promulgation.

The Regulations for the Supervision and Administration over Cotton Quality shall be revised accordingly pursuant to this Decision,
and shall be promulgated again.



 
The State Council
2006-07-04

 






MEASURES FOR THE EXAMINATION AND APPROVAL OF THE MEMBERSHIP OF THE GOVERNMENT BOND UNDERWRITING SYNDICATES

Order of the Ministry of Finance, People’s Bank of China and China Securities Regulatory Commission

No. 39

The Measures for the Examination and Approval of the Membership of the Government Bond Underwriting Syndicate, which have been deliberated
and adopted by the Ministry of Finance, People’s Bank of China and China Securities Regulatory Commission, are hereby promulgated
and shall come into force as of the date of promulgation.
Minister of Finance Jin Renqing

Governor of the People’s Bank of China Zhou Xiaochuan

Chairman of China Securities Regulatory Commission Shang Fulin

July 4, 2006

Measures for the Examination and Approval of the Membership of the Government Bond Underwriting Syndicates
Chapter I General Provisions

Article 1

In order to regulate the examination and approval of the membership of the government bond underwriting syndicates, safeguard the
legitimate rights and interests of the applicants and the members of the government bond underwriting syndicates and promote the
smooth issuance of government bonds as well as the stable development of the market, these Measures are formulated subject to relevant
provisions of the State Council.

Article 2

The present Measures apply to the examination and approval of the membership of the government bond underwriting syndicates.

Article 3

Government bond hereof referred to in the present Measures is the certificate bond, book-entry government bond and other government
bonds issued by the Ministry of Finance on behalf of the Central Government within the territory of China.

Article 4

Members of government bond underwriting syndicates hereof referred to in the present Measures are the commercial banks, securities
companies, insurance companies, trust investment companies and other financial institutions within the territory of China, which
comply with the particular qualifications and engage in government bond underwriting business upon approval.

Article 5

The government bond syndicates may include certificate bond underwriting syndicate, book-entry government bond underwriting syndicate
and other government bond underwriting syndicate, which are established in light of the species of the government bonds.

The members of the book-entry government bond underwriting syndicate may be divided into Class A members and Class B members.

Article 6

Commercial banks or other deposit financial institutions within the territory of China, and the China Postal Savings and Remittance
Bureau may apply for membership of a certificate bond underwriting syndicate.

Commercial banks or other deposit financial institutions within the territory of China, and securities companies, insurance companies,
trust investment companies or other non-depositing financial institutions may apply for membership of a book-entry government bond
underwriting syndicate.

Article 7

The examination and approval of the membership of the book-entry government bond underwriting syndicate shall be implemented by the
Ministry of Finance and jointly with the People’s Bank of China and China Securities Regulatory Commission (hereinafter referred
to as the CSRC), and shall solicit opinions from China Banking Regulatory Commission (hereinafter referred to as the CBRC) and China
Insurance Regulatory Commission (hereinafter referred to as the CIRC).

The examination and approval of the membership of the certificate bond underwriting syndicate shall be implemented by the Ministry
of Finance and jointly with the People’s Bank of China and shall solicit opinions from the CBRC.

Article 8

To establish a government bond underwriting syndicate shall abide by the principle of openness, fairness and impartiality, and select
the superior and eliminate the inferior on the basis of overall stability of the members. The number of members of the certificate
bond underwriting syndicate shall not be more than 40 in principle; the book-entry government bond underwriting syndicate 60, of
which the number of Class A members shall not be more than 20.

Article 9

The validity period of membership of a government bond underwriting syndicate shall be three years. After the expiration, the membership
shall be subject to a new examination and approval in accordance with the present Measures.

Chapter II Qualification Conditions

Article 10

An applicant shall meet the basic conditions as follows:

(1)

being a legal established financial institution within the territory of China;

(2)

engaging in business subject to relevant laws, having no record of serious violation in its business activities within the three recent
years and having a sound credit standing;

(3)

having sound and stable financial status; its capital adequacy ratio, solvency or net capital status and other indicators reaching
the surveillant standards; and having a fairly strong risk control capacity;

(4)

having a department which is exclusively in charge of the government bond businesses and having a sound control system for government
bond investment and risk;

(5)

its information management system has reached a fairly high level; and

(6)

being able to and being voluntary to perform all the obligations as described in Chapter VI of the present Measures.

Article 11

Where an applicant applies for the membership of the certificate bond underwriting syndicate, it shall observe the requirements as
follows:

(1)

It is in compliance with the requirements as described in Article 10 of the present Measures;

(2)

It is a deposit financial institution with not less than RMB 300 million of registered capital or with a total asset of RMB ten billion
or more; and

(3)

It has 40 or more business branches.

Article 12

Where an applicant applies for the membership of Class B of the book-entry bond underwriting syndicate, it shall meet the requirements
as follows:

(1)

It is in compliance with the requirements as provided in Article 10 of the present Measures; and

(2)

It is a deposit financial institution with registered capital no less than RMB 300 million or with total asset of RMB 10 billion or
more, or a non-deposit financial institution with registered capital of RMB 800 million.

Article 13

Where an applicant applies for the membership of Class A of the book-entry bond underwriting syndicate, it shall not only comply
with the requirements as described in Article 12 of the present Measures, but also rank among the top 25 in the comprehensive evaluation
of the book-entry bond business of the last year.

Chapter III Application, Examination and Approval

Article 14

The Ministry of Finance shall, jointly with the People’s Bank of China and CSRC, take charge of the examination and approval of the
membership of government bond underwriting syndicates. The closing date of the submission of applications for the membership of government
bond underwriting syndicates and other relevant information shall be publicized in advance in order to ensure sufficient time for
the applicants to prepare the application materials.

An applicant shall bring forward an application before the closing date and shall submit the application materials as follows:

(1)

An application form;

(2)

A brief introduction about this institution;

(3)

Copies for the legal person business license and the financial business permit;

(4)

A copy of the audit report on the final accounting of revenue and expenditure of the last year; and

(5)

Information about underwriting and transaction of the government bond in the last 2 years.

Where an applicant applies for the membership of the certificate bond underwriting syndicate, it shall respectively submit the application
materials to the Ministry of Finance and the People’s Bank of China. Where an applicant applies for the membership of the book-entry
bond underwriting syndicate, an applicant shall submit the application materials to the Ministry of Finance.

Article 15

The Ministry of Finance shall examine the application materials for the membership of book-entry underwriting syndicate, and shall,
jointly with the People’s Bank of China, examine the applications materials for the membership of certificate bond underwriting syndicate.
It shall respectively dispose the application materials pursuant to different conditions as follows:

(1)

When the application materials are incomplete or its format are not in consistent with the statutory form, the applicant shall be
notified, on the spot or within five days, of the contents to be supplemented and corrected once and for all. If it fails to do so,
it shall be deemed that the application have been accepted on the day when the application materials is received; or

(2)

When the application materials are complete and its format are in consistent with the statutory form, or if the applicant has submitted
all supplemental and correction application materials as required, the application for examination and approval shall be accepted.

Where the Ministry of Finance accepts or rejects an application for the examination and approval of the membership of a government
bond underwriting syndicate, it shall issue a certificate in written form with the special seal and an indication of the date.

Article 16

The Ministry of Finance shall solicit opinions from the CBRC and the CIRC in terms of the important business activities, financial
risk status, performances in the financial market, and whether or not there is any record of severe violation in the business activities
in recent three years.

Article 17

The Ministry of Finance shall convene meetings on the examination and approval of the membership of the certificate bond underwriting
syndicate, and perform the examination on the application materials of the applicants jointly with the People’s Bank of China.

The Ministry of Finance shall convene meetings on the examination and approval of the membership of the book-entry bond underwriting
syndicate, and perform the examination on the application materials of the applicants jointly with the People’s Bank of China and
CSRC.

Article 18

The Ministry of Finance shall, jointly with the People’s Bank of China and CSRC, select the superior of the members of the government
bond underwriting syndicates on the basis of the actually paid-up capital, asset scale, business performances, inter-industry ranking
and comprehensive ranking of government bond businesses and other relevant circumstances.

Article 19

The applicant shall be notified of the right to request for a hearing before the decision on the examination and approval of membership
of a government bond underwriting syndicate has been made by the Ministry of Finance, the People’s Bank of China and CSRC.

The hearing shall be implemented subject to the Measures for the Implementation of Hearing of Administrative Licensing by Finance
Organs (Order No. 21 of the Ministry of Finance).

Article 20

The Ministry of Finance shall, jointly with the People’ Bank of China, make a decision in written form on approval or disapproval
of the membership of the certificate bond underwriting syndicate within 45 days after the closing date for the acceptance of application
materials, or jointly with the People’s Bank of China and CSRC, make a decision in written form on approval or disapproval of the
membership of the book-entry bond underwriting syndicate.

A decision on approval of the membership of a government bond underwriting syndicate shall be promulgated to the general public after
it has been made.

If a decision on disapproval of the membership a government bond underwriting syndicate has been worked out, an explanation shall
be made and the applicant shall be notified of the right to administrative reconsideration or administrative lawsuit.

Article 21

A qualification certificate shall be issued to all the members of the certificate bond underwriting syndicate by the Ministry of
Finance and the People’s Bank of China. A qualification certificate shall be issued to all the members of the book-entry underwriting
syndicate by the Ministry of Finance, People’s Bank of China and CSRC.

Article 22

An applicant that refuses to accept the decision on rejection of its application or the decision on disapproval of the membership
of the government bond underwriting syndicate may apply for an administrative reconsideration or bring an administrative litigation
in the people’ court.

Chapter IV Withdrawal and Addition

Article 23

A member of a government bond underwriting syndicate may apply for withdrawal.

Article 24

The Ministry of Finance shall, jointly with the People’s Bank of China and/ or CSRC, work out a decision on approval or disapproval
of the applicant’s withdrawal from the government bond underwriting syndicate within 30 days after the receipt of an application
for withdrawal, and promulgate it to the general public.

The withdrawal applicant as a member of government bond underwriting syndicate shall continue its obligations and enjoy the corresponding
rights before obtaining an approval.

Article 25

If any member of a government bond underwriting syndicate commits any of the following acts, it shall withdraw from the government
bond underwriting syndicate in light of the primary agreement on the underwriting of government bonds:

(1)

A member of a government bond underwriting syndicate commits any severe violation of law, or it can not sustain the performance of
the obligations of a member of the government bond underwriting syndicate due to its bad financial status;

(2)

A member of the certificate bond underwriting syndicate fails to perform the prescribed obligation of underwriting the minimum or
higher proportion of government bonds, or it commits such acts as being reluctant to sell, selling by exceeding the plan, entrusting
any other institution to sell, or failing to actively promote and publicize the sale of the government bonds; or

(3)

If any member of the book-entry government bond underwriting syndicate fails to bid for or underwrite the government bonds at the
minimum or higher proportion as prescribed in the primary agreement on the underwriting of government bonds for 4 times in accumulation,
or makes any seriously inappropriate bid, or dominates the secondary market, etc.

Article 26

If any member withdraws from a government bond underwriting syndicate, the primary agreement on the underwriting of government bonds
shall be terminated by the Ministry of Finance.

Where any institution withdraws from a government bond underwriting syndicate, it shall return its qualification certificate.

Where any institution withdraws from a government bond underwriting syndicate, it shall not apply for participating in a government
bond underwriting syndicate within 2 years as of the withdrawal.

Article 27

When the number of members of a government bond underwriting syndicate is no more than that as prescribed in Article 8 of the present
Measures, the Ministry of Finance may, jointly with the People’s Bank of China and CSRC, make a decision on adding the members of
the government bond underwriting syndicate as required in the issuance of government bonds, and shall promulgate the said decision
to the general public timely.

Article 28

The application, examination and approval of the membership of the government bond underwriting syndicate shall be implemented as
prescribed in Chapter III of the present Measures when adding a member of a government bond underwriting syndicate.

Chapter V Rights of Members of Government Bond Underwriting Syndicates

Article 29

A member of a government bond underwriting syndicate shall have the basic rights as follows:

(1)

Negotiating with the Ministry of Finance on the terms and contents of the primary agreement on the underwriting of government bonds;

(2)

Bringing forward suggestions and advice on the issuance form and management measures for the government bonds;

(3)

Participating in the issuance of government bonds, and directly underwriting government bonds from the Ministry of Finance;

(4)

Obtaining commissions from the government bonds subject to the document on the issuance government bonds;

(5)

Obtaining timely the information on the issuance of government bonds by the prescribed channels;

(6)

Participating in the pilot innovation of government bonds; and

(7)

Taking the priority to participate in the inspection and training of government bond business.

Article 30

A member of the certificate bond underwriting syndicate shall have the rights as follows:

(1)

The rights as specified in Article 29 of the present Measures;

(2)

Participating in the meeting on the analysis of financing of certificate government bonds;

(3)

Taking the priority to obtain the membership of the book-entry bond underwriting syndicate.

Article 31

A Class B member of the book-entry bond underwriting syndicate shall have the rights as follows:

(1)

The rights as prescribed in Article 29 of the present Measures; and

(2)

Participating in the process of issuance and competitive pricing of the book-entry bonds.

Article 32

A Class A member of the book-entry bond underwriting syndicate shall have the following rights:

(1)

The rights as specified in Article 31 of the present Measures;

(2)

Participating in the quarterly meeting on the analysis of financing of the book-entry government bonds; and

(3)

Underwriting additional government bonds within the range as described for the amount of the successful bid for the government bonds
of the current period of this institution.

Chapter VI Obligations for Members of Government Bond Underwriting Syndicates

Article 33

A member of a government bond underwriting syndicate shall perform the basic obligations as follows:

(1)

Participating in the activities of issuance of government bonds continuously, and making payments in full amount to the Ministry of
Finance for the issuance of government bonds timely.

(2)

Publicizing and distributing the government bonds properly and safeguarding the credit standing of government bonds;

(3)

Submitting the information on the issuance and sale of government bonds periodically;

(4)

Paying attention in the work of redemption of government bonds in order to ensure that the investors can receive the repayments for
the principal of the government bonds, and the interests thereof in a timely manner; and

(5)

Observing the laws, regulations of the state as well as the industrial self-discipline norms, accepting the surveillance and inspection
by the government bond supervisory departments, and submitting the information on the severe violation committed by this institution
or the bad financial status of this institution timely.

Article 34

A member of the certificate bond underwriting syndicate shall perform the obligations as follows:

(1)

The obligations as specified in Article 33 of the present Measures;

(2)

The certificate bonds of each period shall be underwritten at the minimum or higher proportion as prescribed by the Ministry of Finance
and the People’s Bank of China. The specific underwriting proportions for different institutions shall be studied and determined
by the Ministry of Finance and the People’s Bank of China subject to the voluntary applications of the members of certificate bond
underwriting syndicate, the type of the institution, the balance and increase of savings deposits, and the number of business organs
of the institutions as well. Once the minimum underwriting rate is decided, it will be remained for 3 years in principle. It may
be adjusted upon approval of the Ministry of Finance and the People’s Bank of China upon special circumstances;

(3)

Performing the promotion and propaganda for the issuance of government bonds, publicizing the address and contact telephone number
of the organs for the sale of government bonds, setting up obvious marks for the sale of government bonds, preparing publicity materials
and equip on-spot consultants in the sale organs;

(4)

Establishing a credit trust system controlled uniformly by legal person and a uniform network for the sale of government bonds, realizing
that the government bonds may be bought and accepted in this institution and in any of its branches and that the sale amounts are
adjusted automatically; and

(5)

Establishing inner rewards and punishment system for the sale of government bonds.

Article 35

A class B member of the book-entry bond underwriting syndicate shall perform the obligations as follows:

(1)

The obligations as described in Article 33 of the present Measures;

(2)

Opening a communication line which is exclusively linked to the book-entry bond bid system;

(3)

Participating in the bids of book-entry bonds continuously, making rational bids within the a reasonable price band and maintaining
the regular order of issuance of government bonds;

(4)

Any bid for the government bonds shall not be made between members of a government bond underwriting syndicate. Credits of self-operating
government bonds shall be registered in the self-operating account. Credits of self-operating government bonds on a commissioned
basis shall be registered in the client account.

(5)

Participating in the bid and underwriting of government bonds of each period within the range as described in the primary agreement
on the underwriting of government bonds; and

(6)

Participating in the government bond transactions actively and safeguarding the regular order of the government bond market.

Article 36

A Class A member of a book-entry government bond underwriting syndicate shall perform the obligations as follows:

(1)

The obligations as specified in Article 35 of the present Measures; and

(2)

Submitting reports on the analysis of operation of government bond market quarterly, and bringing forward suggestions on the improvement
of issuance of government bonds and the development of government bond market.

Chapter VII Surveillance, Inspection and Punishment

Article 37

The Ministry of Finance shall, jointly with the People’s Bank of China and the CSRC, take charge of the supervision and inspection
on the applications for the membership of government bond underwriting syndicates, and other relevant activities regarding the government
bond business carried out by members of government bond underwriting syndicates.

Article 38

If any applicant applies for the membership of government bond underwriting syndicate by concealing the relevant information or by
submitting false materials, its membership of government bond underwriting syndicate shall be rejected or disapproved by the Ministry
of Finance, the People’s Bank of China and the CSRC, and a warning will be delivered.

Article 39

If any member of a government bond underwriting syndicate obtains the membership of a government bond underwriting syndicate by means
of cheating, bribery or any other illegal means, its membership shall be revoked by the Ministry of Finance, the People’s Bank of
China and the CSRC, and an administrative sanction shall be delivered subject to relevant laws.

Article 40

When any member of the government bond underwriting syndicate fails to perform the obligations as described in the present Measures
and the circumstances are not serious, it shall be ordered by the Ministry of Finance, the People’s Bank of China and the CSRC to
make a correction within a time limit.

Article 41

If a member of a government bond underwriting syndicate commits any of the circumstances referred to in Article 25 of the present
Measures, the Ministry of Finance shall, jointly with the People’s Bank of China and/or CSRC, inform it to withdraw from the government
bond underwriting syndicate in accordance with the stipulations in the primary agreement on the underwriting of government bonds.

Chapter VIII Supplementary Provisions

Article 42

The National Council for Social Security Fund and China Postal Savings and Remittance Bureau may apply for being special members
of the book-entry bond underwriting syndicate, while such members are not allowed to engage in distributing government bonds.

Article 43

When the Ministry of Finance on behalf of the Central Government issues other government bonds that are mainly geared to individuals
in underwriting form, the measures for the examination and approval of members of the government bond underwriting syndicate shall
be dealt with reference to the procedures in the present Measures for the examination and approval of members of the certificate
bond underwriting syndicate.

Article 44

The present Measures shall enter into force as of the date of promulgation. The Measures for the Administration of the People’s Republic
of China for the Primary Self-operating Underwriters of Government Bonds (Cai Guo Zhai Zi [1993] No. 100) and the Measures for the
Implementation for the Examination and Confirmation of the Qualifications for the Primary Self-operating Underwriters of Government
Bonds (Cai Guo Zhai Zi [1993] No. 100) promulgated by the Ministry of Finance, People’s Bank of China and the CSRC on December 31,
1993 shall be annulled as of the same date.



 
The Ministry of Finance￿￿People’s Bank of China￿￿China Securities Regulatory Commission
2006-07-04

 






REGULATIONS FOR THE SUPERVISION AND ADMINISTRATION OVER COTTON QUALITY

Regulations for the Supervision and Administration over Cotton Quality

July 4, 2006

(Promulgated by Order No. 314 of the State Council of the People’s Republic of China on August 3, 2001, and amended in light of the
Decision of the State Council on Amending the Regulations on the Supervision and Administration over Cotton Quality promulgated on
July 4, 2006)

Chapter I General Provisions

Article 1

With a view to strengthening the supervision and administration over cotton quality, maintaining the order of cotton market, and
protecting the lawful rights and interests of each party to cotton trading, the present Regulations are formulated.

Article 2

When cotton business operators (including cotton purchasers, processors, sellers and storage undertakers, the same hereafter) engage
in cotton business activities, the undertaking of supervision and administration over cotton quality by cotton quality supervision
institutions shall accord with the present Regulations.

Article 3

When a cotton business operator intends to engage in cotton processing business, it shall obtain its qualification certification
according to the relevant provisions of the state.

The cotton business operator shall establish an internal cotton quality management rules and improve them, strictly carry out position-based
quality norms, quality responsibilities and corresponding assessment measures.

Article 4

The competent department of quality supervision, inspection and quarantine of the State Council shall be responsible for the national
cotton quality supervision work, and its subordinate China Fiber Inspection Institute shall take charge of organizing and implementing
such work.

The quality supervision department of the people’s government of a province, autonomous region, or municipality directly under the
Central Government shall be responsible for the cotton quality supervision work within its own jurisdiction. At a place where a professional
fiber inspection institution is set up, the professional fiber inspection institution shall undertake supervision over cotton quality
within its jurisdictional division; at a place where no professional fiber inspection institution is set up, the quality supervision
department shall undertake supervision over cotton quality within its jurisdictional division (when a professional fiber inspection
institution and a local quality supervision department are coordinately used, they shall be uniformly referred to as cotton quality
supervision institutions).

Article 5

The local people’s governments at each level and the functionaries thereof may not enshield or connive the illegal acts related to
cotton quality within their respective regions, or obstruct or interfere with the cotton quality supervision institution’s lawful
investigation and shall punish the violations of the present Regulations in cotton purchase, processing, sale or storage undertaking.

Article 6

Any entity or individual shall have the right to impeach any illegal act concerning cotton quality.

Chapter II Obligations Concerning Cotton Quality

Article 7

Cotton business operators shall, when intending to purchase cotton, establish and perfect the quality inspection and acceptance rules
for the purchase of cotton, and shall have the physical standards for cotton grades and the indispensable equipment and instruments
for cotton quality inspection.

Cotton business operators shall, when purchasing cotton, determine the category, grade and quantity of the cotton purchased in light
of the national standards and technical norms after excluding the foreign fibers and other noxious materials; if the purchased cotton
goes beyond the national moisture standard, it shall be subject to technical treatment such as airing in the sun or drying with machine
and etc., so as to guarantee the cotton quality.

Cotton business operators shall place purchased cotton by category or by grade.

Article 8

Cotton business operators shall, when processing cotton, satisfy the following requirements:

(1)

It shall, in light of national standards, select and exclude the foreign fibers and other noxious substances in the cotton for processing;

(2)

It shall, in light of national standards, grade and process cotton, pack the processed cotton and attach marks compatible to the cotton
quality;

(3)

It shall, in light of national standards, pack the processed cotton and place it in batches.

Cotton business operators may not process cotton by using leather rollers, cotton ginning machine, packaging machine or other cotton
processing equipment, which are prohibited by the state through public proclamation.

Article 9

Cotton business operators shall, when selling cotton, satisfy the following requirements:

(1)

Each batch of cotton shall be attached with a quality voucher;

(2)

The cotton packages or marks shall meet national standards;

(3)

The category, grade and weight of the cotton shall be consistent with the quality voucher or mark; and

(4)

The cotton having passed the notarization inspection shall be attached with an accredited inspection certificate, or shall, if it
is state-reserved cotton, be affixed with an accredited inspection mark.

Article 10

Cotton business operators shall, when undertaking storage of state-reserved cotton, establish and perfect quality inspection and
acceptance rules on the entry of cotton into or exit from warehouse, and guarantee that the category, grade and quantity of the state-reserved
cotton entering into or exiting from the warehouse are consistent with the accredited inspection certificate and the accredited inspection
mark.

Cotton business operators shall, when undertaking storage of state-reserved cotton, maintain and repair the undertaking facilities
according to the relevant provisions of the state, so that the quality of the state-reserved cotton can be guaranteed to exempt from
any quality variance caused by human elements.

Cotton business operators may not put any cotton without passing accredited quality inspection into the warehouse as state-reserved
cotton or take it out of the warehouse as state-reserved cotton.

Government authorities or the functionaries thereof may not compel any cotton business operator to put any cotton without passing
accredited quality inspection into the warehouse as state-reserved cotton or take it out of the warehouse as state-reserved cotton.

Article 11

Cotton business operators may not, when purchasing, processing, selling or undertaking storage of cotton, forge, alter or pretend
to use any cotton quality voucher or mark, or any accredited inspection certificate or accredited inspection mark.

Article 12

Cotton business operators shall be strictly prohibited from, during their business activities such as purchase, processing, sale
or storage undertaking of cotton, adulterating any cotton, substituting any qualified cotton with inferior one or using any fake
cotton as genuine one.

Chapter III Cotton Quality Supervision

Article 13

The state shall adopt the accredited cotton quality inspection system.

The term “accredited cotton quality inspection” as mentioned in the preceding paragraph shall refer to the activities through which
a professional fiber inspection institution inspects the quality and quantity of cotton in light of national standards and technical
norms, and issues an accredited inspection certificate.

Article 14

Cotton business operators that sell cotton to cotton consuming enterprises may, before either party to the transaction makes cotton
transaction settlement, entrust a professional fiber inspection institution to make an accredited inspection of the cotton in bargain.
After the accredited inspection, the professional fiber inspection institution shall issue an accredited cotton quality inspection
certificate, which may be used as the basis of the cotton quality or quantity.

Article 15

The entry of state-reserved cotton into or the exit thereof from the warehouse shall be subject to accredited cotton quality inspection;
upon the accredited inspection, the professional fiber inspection institution shall issue an accredited cotton quality inspection
certificate, which shall be used as the basis for the state treasury to pay the expenses needed in storing the state-reserved cotton.

The state-reserved cotton having passed the accredited inspection shall be affixed by the professional fiber inspection institution
with an accredited inspection mark that is unanimously prescribed by the China Fiber Inspection Institute.

Article 16

The professional fiber inspection institution shall, when undertaking an accredited cotton quality inspection, implement the national
standards as well as its inspection methods, technical norms and time requirements, so as to guarantee the inspection to be objective,
impartial and timely. The accredited cotton quality inspection certificate issued by the professional fiber inspection institution
shall reflect the quality and quantity of the cotton truthfully and objectively.

The content of the accredited cotton quality inspection certificate shall contain the product name, the (entrusting) entity under
inspection, the batch number, the number of packages, the inspection basis, the inspection result, the inspecting entity, the inspectors
and etc.

The format of the accredited cotton quality inspection certificate shall be prescribed by the department for quality supervision,
inspection and quarantine of the State Council.

Article 17

The professional fiber inspection institution may not charge any fee when making an accredited cotton quality inspection, and the
expenses needed in the inspection shall be listed as expenditures in accordance with the related provisions of the state.

Article 18

The department for quality supervision, inspection and quarantine of the State Council shall, throughout China, arrange for the sample
supervisory inspection on the cotton having passed accredited cotton quality inspection, and the quality supervision department of
the people’s government of a province, autonomous region, or municipality directly under the Central Government shall arrange for
the sample supervisory inspection on the cotton having passed accredited cotton quality inspection within its respective jurisdiction.

The content of a sample supervisory inspection shall be: whether the accredited cotton quality inspection certificate and the accredited
inspection mark are consistent with the physical product or not; and whether the accredited cotton quality inspection made by the
professional fiber inspection institution is objective, impartial and timely or not.

The samples needed in a sample supervisory inspection shall be drawn from the reserved samples have passing the accredited inspection
at random, and an inspection conclusion shall be made within 10 days as of the day when the sample is drawn.

Article 19

The cotton quality supervision institution may, with regard to the cotton beyond the accredited cotton quality inspection, undertake
supervisory inspection of cotton purchase, processing, sale or storage undertaking on the spot.

The content of a supervisory inspection shall be: whether the quality, quantity and package of the cotton meet the national standards
or not; and whether the mark and quality voucher of the cotton accord with the physical product or not.

Article 20

The cotton quality supervision institution may, during the process of cotton quality supervisory inspection, exercise the following
powers, when investigating an act suspected to violate the present Regulations on the basis of the evidence or tip-off on any suspected
illegal act:

(1)

making an on-site inspection on the place where any business activity suspected to violate the present Regulations is conducted;

(2)

investigating the related persons of the cotton business entity to obtain information about the business activity suspected to violate
the present Regulations;

(3)

consulting and photocopying the contracts, documents, account books and other materials on the cotton business operation; and

(4)

sealing up or distraining the suspected adulterated cotton, inferior cotton used to substitute qualified one, fake cotton used as
genuine one, or any other cotton with serious quality problems, and the equipment and instruments specially used to produce the aforesaid
cotton.

Article 21

When required by a supervisory inspection, the cotton quality supervision institution may inspect the cotton quality. The samples
needed in the inspection shall be randomly drawn from the purchased, processed, for-sale or reserved cotton in light of the related
national standards. And an inspection conclusion shall be made within 3 days as of the drawing of sample for inspection.

No fee may be charged for the inspection in accordance with the preceding paragraph, and the necessary inspection expenses shall be
listed as expenditures in accordance with the related provisions of the state.

Article 22

Where a cotton business operator or a cotton consuming enterprise has any objection to the result of an accredited cotton quality
inspection or a cotton quality supervisory inspection made according to the present Regulations, it may, within 5 days as of receipt
of the inspection result, apply to the cotton quality supervision institution of the province, autonomous region, or municipality
directly under the Central Government or China Fiber Inspection Institute for re-inspection, which shall, within 7 days as of receiving
the application, make a re-inspection conclusion and notify the applicant. If the cotton business operator or the cotton consuming
enterprise still has any objection to the re-inspection conclusion, it may bring a lawsuit to the people’s court under law.

Article 23

Other fiber inspection institutions recognized by the department for quality supervision, inspection and quarantine of the State
Council may be entrusted to conduct cotton quality inspection. The specific measures shall be formulated by the department for quality
supervision, inspection and quarantine of the State Council in conjunction with other related departments of the State Council.

Chapter IV Penalty Provisions

Article 24

Where a cotton business operator, when purchasing cotton, violates Paragraph 2 or 3 of Article 7 of the present Regulations by failing
to meet the national standards or technical norms to exclude foreign fibers and other noxious substances before determining the category,
grade and quantity of the purchased cotton, or by failing to conduct technical treatment on the purchased cotton which goes beyond
the national moisture standard, or by failing to classify and grade the purchased cotton for placement, it shall be ordered by the
cotton quality supervision institution to make corrections, and imposed upon a fine up to RMB 30,000 Yuan.

Article 25

Where a cotton business operator, when processing cotton, violates Paragraph 1 of Article 8 of the present Regulations by failing
to meet the national standards to select and exclude foreign fibers and other noxious substances, or by failing to meet the national
standards to process the cotton by grade, to pack and mark the cotton, or by failing to meet the national standards to place the
cotton by batches, it shall be ordered by the cotton quality supervision institution to make corrections, and may, in light of the
severity of the circumstance, be imposed upon a fine of RMB100,000 Yuan. If the circumstances are serious, its cotton processing
qualification shall be revoked by the original accreditation organ.

Where a cotton business operator, when processing cotton, violates Paragraph 2 of Article 8 of the present Regulations by using any
cotton processing equipment of express prohibition of the state, the aforesaid prohibited cotton processing equipment shall be confiscated
by the cotton quality supervision institution and be destroyed under supervision thereof, and the operator shall be imposed upon
a fine twice up to ten times of the actual value of the illegal equipment. If the circumstances are serious, its cotton processing
qualification shall be revoked by the original accreditation organ.

Article 26

Where a cotton business operator, when selling cotton, violates Article 9 of the present Regulations due to the fact that the for-sale
cotton has no quality voucher or no package or mark meeting the national standards, the quality voucher or the mark does not accord
with the physical product, the cotton having passed the accredited inspection has no accredited inspection certificate or the state-reserved
cotton is not affixed with an accredited inspection mark, it shall be ordered by the cotton quality supervision institution to make
corrections, and may, in light of the severity of the circumstance, be imposed upon a fine up to RMB 100,000 Yuan.

Article 27

Where a cotton business operator, when undertaking the storage of state-reserved cotton, violates Paragraph 1, 2 or 3 of Article
10 of the present Regulations by failing to establish quality inspection and acceptance rules for entry of cotton into or exit thereof
from the warehouse, or due to the fact that its physical state-reserved cotton entering into or exiting from the warehouse is inconsistent
with the accredited inspection certificate or mark, or that it fails to comply with the provisions of the state to maintain or repair
the storage undertaking facilities and thus results in variance of the quality of the state-reserved cotton, or that it uses any
cotton having not passed the accredited inspection as state-reserved cotton for entry into or exit from the warehouse, it shall be
ordered by the cotton quality supervision institution to make corrections, and may be imposed upon a fine up to RMB 100,000 Yuan;
if any heavy loss is caused, the person-in-charge and other persons directly liable shall be demoted or be given a severer disciplinary
sanction; if any crime is constituted, he shall undertake criminal liabilities under law.

Article 28

Where a cotton business operator conceals, transfers or damages any article sealed up or sequestered by the cotton quality supervision
institution, it shall be fined by the cotton quality supervision institution twice up to five times of the value of the concealed,
transferred or damaged cotton; if any crime is constituted, he shall be subject to criminal liabilities under law.

Article 29

Where a cotton business operator violates Article 11 of the present Regulations by forging, altering or imitating any cotton quality
voucher or mark, any accredited inspection certificate or any accredited inspection mark, it shall be fined by the cotton quality
supervision institution at the amount of RMB 50,000 Yuan up to RMB 100,000 Yuan. If the circumstances are serious, the case shall
be transferred to the administrative department for industry and commerce for revocation of its business license; if any crime is
constituted, he shall be subject to criminal liabilities under law.

Article 30

Where a cotton business operator, when undertaking cotton business activities, violates Article 12 of the present Regulations by
adulterating cotton, substituting any qualified cotton with inferior one or using any fake cotton as genuine one, if any crime is
constituted, he shall be subject to criminal liabilities under law; if no crime is constituted, the adulterated cotton, the inferior
cotton used to substitute the qualified one, or the fake cotton used as genuine one and the illegal proceeds shall be confiscated
by the cotton quality supervision institution, a fine twice up to five times of the value of the illegal cotton shall be imposed
upon, and the case shall be transferred to the administrative department for industry and commerce for revocation of the business
license under law.

Article 31

Where a professional fiber inspection institution violates Article 16 of the present Regulation by refusing to execute the national
standards or its inspection methods, technical norms or time requirements, or by issuing an untrue accredited cotton quality inspection
certificate, it shall be ordered by the administrative department of quality supervision, inspection and quarantine of the State
Council or the local quality supervision administrative department to make corrections; the responsible person-in-charge and other
persons directly liable shall be imposed upon the administrative sanction of demotion or dismissal from post under law.

Article 32

Where a professional fiber inspection institution violates Article 17 of the present Regulations by charging any fee for accredited
inspection, it shall be ordered by the administrative department of quality supervision, inspection and quarantine of the State Council
or the local quality supervision administrative department to refund the charged fee; the responsible person-in-charge and other
persons directly liable shall be imposed upon the administrative sanction of heavy demerit record or demotion under law.

Article 33

In case a professional fiber inspection institution practices fraud by way of fabricating or issuing an accredited inspection certificate
or by affixing any accredited inspection mark before making an accredited inspection, its responsible person-in-charge and other
persons directly liable shall be imposed upon the administrative sanction of demotion or dismissal from post by the administrative
department of quality supervision, inspection and quarantine of the State Council or the local quality supervision administrative
department under law. If any crime is constituted, he shall be subject to criminal liabilities under law.

Article 34

Where a governmental office or any of its functionaries violates Paragraph 4 of Article 10 of the present Regulations by compelling
any cotton business operator to put any cotton having failed the accredited quality inspection into or take it out of the warehouse
as state-reserved cotton, the responsible person-in-charge and other persons directly liable shall be imposed upon the administrative
sanction of demotion or removal from post under law.

Article 35

Where a governmental office or any of its functionaries covers up or connives any local illegal act related to cotton quality, or
obstructs or interferes with any cotton quality supervision institution from investigating under law the acts in violation of the
present Regulations, it/he shall be imposed upon the administrative sanction of demotion or removal from post under law. If any crime
is constituted, it/he shall be subject to criminal liabilities under law.

Article 36

The value of cotton as prescribed in Article 28 and Article 30 of the present Regulations shall be computed at the listed price
of the illegally purchased, processed or sold cotton or on the basis of the settlement note; if there is no such listed price or
settlement note, the value shall be computed at the market price of the cotton of the same category.

Article 37

As to the administrative penalty of fine given according to the present Regulations, the decision on the fine shall be separated
from the collection thereof according to the related laws and administrative regulations, and the collected fines shall be fully
turned in to the state treasury.

Chapter V Supplementary Provisions

Article 38

The supervision and administration on the qualities of wool, fine hair, cocoon silk and hemp fibers shall be conducted by referring
to the present Regulations.

Article 39

The present Regulations shall enter into effect as of the date of the promulgation thereof.



 
The State Council
2006-07-04

 






ANNOUNCEMENT NO.38, 2006 OF THE GENERAL ADMINISTRATION OF CUSTOMS, THE NATIONAL DEVELOPMENT AND REFORM COMMISSION, THE MINISTRY OF FINANCE, THE MINISTRY OF COMMERCE OF THE PEOPLE’S REPUBLIC OF CHINA (ON PUTTING OFF THE IMPLEMENTATION OF THE DEFINITION STANDARD FOR IMPORT PRICE PERCENTAGE CONCERNING FEATURES OF WHOLE VEHICLES AND DISTINGUISHING STANDARD FOR CATEGORY A AND B KEY PARTS CONCERNING FEATURES OF VEHICLE SYSTEM)

Announcement No.38, 2006 of the General Administration of Customs, the National Development and Reform Commission, the Ministry of
Finance, the Ministry of Commerce of the People’s Republic of China (on Putting off the Implementation of the Definition Standard
for Import Price Percentage concerning Features of Whole Vehicles and Distinguishing Standard for Category A and B Key Parts concerning
Features of Vehicle System)

No.38 [2006]

Administrative Measures on Import of Vehicle Parts with Features of Whole Vehicles publicized the definition standard of imported
vehicle parts with features of whole vehicles and those of vehicle system.

The definition standard for import price percentage concerning features of whole vehicles and distinguishing standard for Category
A and B key parts concerning features of vehicle system, which shall be put into effect as from July 1, 2006, are postponed to July
1, 2008.

General Administration of Customs

July 5, 2006



 
General Administration of Customs
2006-07-05

 






CIRCULAR OF THE PEOPLE’S BANK OF CHINA ON THE CURRENCY BROKERAGE COMPANIES’ ACCESS TO MARKET AMONG BANKS

Circular of the People’s Bank of China on the Currency Brokerage Companies’ Access to Market among Banks

Yin Fa [2006] No. 231

The headquarters of the People’s Bank of China in Shanghai and all subsidiary banks and business management departments of the People’s
Bank of China, central sub branches of the People’s Bank of China in all provincial capital cities, central sub branches of the People’s
Bank of China in all deputy provincial capital cities, all policy banks, state-owned commercial banks, joint-stock banks, National
Funding Center among banks and China Government Securities Depository Trust & Clearing Co., Ltd.,

In order to regulate the business of currency brokerage companies, improve the fluidness of interbank bond market and interbank funding
market and propel the healthy development of the market among banks, you are hereby informed of the relevant matters concerning the
currency brokerage companies’ access to the market among banks as follows:

1.

“Currency brokerage company” herein accords with that as defined in Article 2 of the Measures for the Administration of Pilot Currency
Brokerage Companies (Decree No. 1 [2005] of the China Banking Regulatory Commission).

2.

Before a currency brokerage company takes on the brokerage business in the market among banks, it shall handle the archival filing
formalities in the People’s Bank of China and offer the following materials for archival filing:

(1)

The document of the relevant regulatory institution in respect of approval of setting up the currency brokerage company;

(2)

A photocopy of the Financial Business License (duplicate);

(3)

A photocopy of the Enterprise Legal Person Business License (duplicate);

(4)

The Enterprise Constitution;

(5)

The interior risk control system for the planned business of the company;

(6)

The work resumes and relevant qualification certification materials of the senior managers, chief persons-in-charge of the departments,
and the person-in-charge of brokerage business;

(7)

The name list of the brokers to undertake the planned business of the company; and

(8)

Other materials as requested by the People’s Bank of China.

The People’s Bank of China shall present an archival filing Circular to the qualified currency brokerage company within 20 working
days after it receives the archival materials which meet the relevant demands.

3.

The person-in-charge of the brokerage business department of a currency brokerage company shall have a working experience of 5 or
more years in the financial market and know well the related regulations and business rules concerning market among banks. A broker
shall have a working experience of 2 or more years and know well the provisions and business rules concerning market among Banks.

4.

In the market among banks, the business scope of a currency brokerage company is to offer brokerage services in transactions of bonds
at an agreed price, repurchase of bonds, discount of instruments, repurchase of instruments, bond forward transactions, RMB interest
rate swap transactions, and interbank funding, upon the entrustment of financial institutional investors (hereinafter referred to
as the entrusting parties).

5.

When offering brokerage services, a currency brokerage company shall follow the principle of impartiality, fairness, cordiality and
good faith and keeping confidential for the clients.

A currency brokerage company shall, in accordance with the principle of careful business, set forth its own business rules and set
up an effective internal risk control system and put them to the People’s Bank of China for archival purposes.

6.

To offer brokerage services, a currency brokerage company shall conclude a service protocol with the entrusting party and shall anonymously
present or ask for quotes upon entrustment of the entrusting party.

After the currency brokerage company transacts successfully, it shall deliver a written circular to both parties concerning transaction,
charge the service commissions at a price as prescribed in the service agreement, and deliver quickly the information to the National
Interbank Funding Center (hereinafter referred to as the NIFC) for archival purposes.

Where the currency brokerage company cannot bring a transaction, it shall not request the entrusting party to pay any commission,
but it may request the entrusting party to give its necessary charges for offering the brokerage service.

7.

A currency brokerage company shall keep carefully the entrustment and transaction records by methods agreed upon by it and the entrusting
party.

A currency brokerage company shall rigorously manage the transaction information. It shall not publicly issue any transaction information
to the participants of the market among banks (hereinafter referred to as the participants).

8.

In case a currency brokerage company violates the contract during the course of offering brokerage services, where there are any disagreements
over the merits of violation of contract or over the responsibilities for breach of contract, the currency brokerage company and
the entrusting party may apply for arbitration through negotiation or lodge a complaint in the people’s court. The currency brokerage
company shall, before 12 o’clock of the next working day after it receives the final result of arbitration or lawsuit, serve the
said final result on the NIFC, which shall proclaim on the same day of receipt.

9.

A currency brokerage company shall hand over to the People’s Bank of China a written report on the brokerage services in the market
among banks of the said quarter or year within 10 working days after each quarter and before March 1 of the next year. A written
quarterly report shall include but not limited to the contents in Items (1), (2), (3), (4) and (7). A written annual report shall
involve but not limited to the contents in Items (1) through (7):

(1)

The distribution characteristics of the institutions, to which this company transacts successfully;

(2)

The transaction amount of each transaction product by this company and its proportion in the same transactions of the whole market;

(3)

The differentiated descriptions between transaction price of each transaction product by this company and the average market price
of the corresponding transaction product;

(4)

The monthly changes of the brokerage business amount of this company;

(5)

The self-evaluation of the brokerage business of the previous year and the plan on the brokerage business of the present year;

(6)

The development advices of the inter-bank market or brokerage business; and

(7)

Other information as requested by the People’s Bank of China.

10.

Before April 30 of each year, a currency brokerage company shall regularly release to the market participants its previous-year financial
reports audited by and audit report issued by certified public accountants via www.chinamoney.com and www.chinabond.com.cn, covering
the audited balance sheets, profit and loss sheets, cash flow statements, notes to the financial accounting statements, as well as
the audit opinions.

In case any of the following events takes place, a currency brokerage company shall make an announcement to the participants via the
websites www.chinamoney.com and www.chinabond.com.cn and shall report it to the People’s Bank of China within 2 working days after
the occurrence of this event:

(1)

The decrease of registered capital, combination, split-up, dismiss, trusteeship, suspension of business, applying for bankruptcy;

(2)

Any significant lawsuit subject to the currency brokerage company;

(3)

Over 5% shares of the currency brokerage company are directly or indirectly possessed by the participant(s);

(4)

The currency brokerage company and its participant(s) are directly or indirectly controlled by a same parent company; or

(5)

Other important events as provided for by the People’s Bank of China.

11.

To offer brokerage services, a currency brokerage company shall rigorously comply with the relevant regulations of the inter-bank
market. Where it fails to abide by the requirements of this Circular and other regulations concerning the market among banks, it
shall be punished by the People’s Bank of China under the provisions of Article 46 of the Law of the People’s Republic of China
on the People’s Bank of China.

12.

The present Circular shall enter into force as of the promulgation date.

The People’s Bank of China

July 6, 2006



 
The People’s Bank of China
2006-07-06

 






CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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