ADMINISTRATIVE RULES FOR RMB BANK SETTLEMENT ACCOUNTS

The People’s Bank of China

Order of the People’s Bank of China

No. 5

In order to regulate the opening and use and strengthen management of RMB bank settlement accounts and to maintain financial stability,
Administrative Rules for RMB Bank Settlement Accounts enacted by the People’s Bank of China and adopted at the 34th executive meeting
of the bank president on August 21, 2002 are hereby promulgated and shall be come into force as of the day of September 1, 2003.

President of the People’s Bank of China, Zhou Xiaochuan

April 10, 2003

Administrative Rules for RMB Bank Settlement Accounts

Chapter I General Provisions

Article 1

These rules are formulated according to the “Law of the People’s Republic of China on the People’s Bank of China” and the “Commercial
Banking Law of the People’s Republic of China” so as to regulate the opening and use and strengthen management of RMB bank settlement
accounts (hereinafter referred to as “bank settlement accounts”) and safeguard economic and financial stability.

Article 2

These rules are applicable to bank settlement accounts opened by depositors with banks domiciled in China.

“Depositors” hereinafter refer to government agencies, social organizations, military units, enterprises, public institutions and
other organizations (referred as Institutions hereinafter), self-employed entities and natural persons that maintain settlement accounts
with banks in China.

Banks in these rules refer to policy banks, commercial banks (including wholly foreign-funded banks, Sino-foreign joint-equity banks
and branches of foreign banks), urban and rural credit cooperatives that are approved by the People’s Bank of China to engage in
payment and settlement business in China.

Bank settlement accounts in these rules refer to RMB demand deposit accounts opened by banks for depositors to effect payment and
settlement of funds.

Article 3

Bank settlement accounts may be classified on the basis of the nature of depositors into bank settlement accounts for institutions
and bank settlement accounts for individuals.

(1)

A bank settlement account opened by a depositor in the name of an institution is a bank settlement account for institution. Based
on their uses, bank settlement accounts for institutions may be divided into basic deposit accounts, general deposit accounts, special
deposit accounts and temporary deposit accounts.

Bank settlement accounts opened by self-employed entities with the brand of their products or the name of the owner appeared in the
business license shall be managed as bank settlement accounts for institutions.

(2)

A bank settlement account opened by a natural person depositor with his or her ID is a bank settlement account for individual.

Banking accounts opened by postal savings institutions to conduct banking card business shall be managed as bank settlement accounts
for individuals.

Article 4

A depositor opening bank settlement accounts for institutions may only keep one basic deposit account in banks.

Article 5

Depositors shall open bank settlement accounts in the place where they are registered or located, except for those allowed by these
rules to open bank settlement accounts outside their places of residence (in different provinces, cities or counties).

Article 6

Opening of basic deposit accounts, temporary deposit accounts, or opening of special deposit accounts by budget units shall be subject
to review and approval of the People’s Bank of China. With the approval, the bank that is to hold the account shall issue a registration
certificate of opening of such an account. However, temporary deposit accounts opened by depositors for the purpose of examination
of registered capital requirement compliance are exempted from such a stipulation.

Article 7

Depositors may make their own choices of banks to open bank settlement accounts. No institutions or individuals are allowed to command
depositors to open bank settlement accounts with designated banks, unless stipulated otherwise by laws, administrative regulations
or rules of the State Council.

Article 8

The opening and use of bank settlement accounts shall be conducted in accordance with laws and administrative regulations. It is not
allowed to use bank settlement accounts to evade tax and debt payment, make illegal encashment or for other criminal purposes.

Article 9

Banks shall ensure confidentiality of information about depositors’ bank settlement accounts. Banks shall have the right to decline
any inquires by institutions or individuals on deposits and other relevant information on bank settlement accounts for institutions,
unless stipulated otherwise by the laws and administrative regulations. Banks shall also have the right to decline any inquiries
by institutions or individuals on deposits and other relevant information on bank settlement accounts for individuals, unless stipulated
otherwise by the laws and administrative regulations.

Article 10

The People’s Bank of China is the supervisory authority of bank settlement accounts.

Chapter II Opening of Bank Settlement Accounts

Article 11

The basic deposit accounts are bank settlement accounts that the depositors need to open to conduct day-to-day transfer and settlement
of funds as well as receipt and payment of cash. Following depositors are eligible to open basic deposit accounts:

(1)

An enterprise that is a legal entity.

(2)

An enterprise that is not a legal entity.

(3)

Government agencies and public institutions.

(4)

Military units, armed police and detachment on separate missions that are above regiment level.

(5)

Social organizations.

(6)

Non-enterprise private organizations.

(7)

Permanent office outside its place of residence.

(8)

Resident offices of international organizations in China.

(9)

Self-employed entities.

(10)

Community agencies.

(11)

Subsidiaries of institutions that maintain independent accounts.

(12)

Other organizations.

Article 12

General deposit accounts are bank settlement accounts opened by a depositor for borrowing or other payment needs with banks other
than the bank that holds the basic deposit account.

Article 13

Special deposit accounts are bank settlement accounts opened by a depositor to separately manage and use earmarked funds in accordance
with laws, administrative rules or regulations. Depositors may apply for opening of special deposit accounts for the management and
use of following type of funds:

(1)

Funds for capital construction.

(2)

Funds for technology upgrading.

(3)

Extra budgetary funds.

(4)

Funds for procurement of grain, cotton and edible oil.

(5)

Settlement funds for securities transactions.

(6)

Margin funds for futures trading.

(7)

Trust funds.

(8)

Interbank deposits of financial institutions.

(9)

Funds for policy encouraged real estate development.

(10)

Deposit reserves for banking cards of enterprises.

(11)

Housing provident funds.

(12)

Social security funds.

(13)

Surrendered proceeds and funds for business spending.

(14)

Operational funds for offices of the Party, the Youth League and the Trade Union institutions.

(15)

Other funds that need to be separately managed and used.

Surrendered proceeds and funds business spending refer to income and expenses of non-financially independent subsidiaries detachments
affiliated with or of the depositors that own basic deposit accounts.

Special deposit accounts opened for surrendered proceeds and funds for business spending shall use the name of the parent institution.

Article 14

Temporary deposit accounts are bank settlement accounts opened by a depositor for temporary need and to be used in a limited period
of time. Depositor may apply for opening of temporary deposit accounts on the following occasions:

(1)

Establishment of temporary institutions.

(2)

Temporary operations in different places.

(3)

Examination of registered capital requirement compliance.

Article 15

Bank settlement accounts for individuals are deposit accounts opened by natural persons for investment, consumption and settlement
purpose, which may be used to carry out payment and settlement businesses. A depositor may apply for opening of bank settlement accounts
for individuals on the following occasions:

(1)

Using credit payment instruments such as checks and credit cards.

(2)

Conducting settlement business such as remittance, regular credit, regular debit and debit card business.

A natural person may either apply for opening of bank settlement accounts for individuals according to his or her own needs, or select
an existing saving account as a bank settlement account for individuals after applying to the account-holding bank and get its permission.

Article 16

A depositor may open bank settlement accounts outside its place of residence on any of the following occasions:

(1)

Places of business registration and operation are in different administrative areas (different provinces, cities, counties), which
entails the need of opening of basic deposit accounts.

(2)

Borrowing from other places or conducting other settlement, which need to open general deposit accounts.

(3)

A depositor needs to open special deposit accounts for surrendered proceeds or business spending of its non-financially independent
subsidiaries or detachments.

(4)

Conducting temporary business operation outside its place of residence that need to open temporary deposit accounts.

(5)

A natural person that needs to open bank settlement accounts for individual used outside its place of residence.

Article 17

When applying for opening basic deposit accounts, a depositor shall produce documents according to the following rules:

(1)

If the depositor is an enterprise that is a legal entity, it shall present the original copy of the business license for a legal entity.

(2)

If the depositor is an enterprise that is not a legal entity, it shall present the original copy of the business license for an enterprise.

(3)

Government agencies and public institutions that are included in the budget process shall produce approval letters or certificates
of registration issued by the personnel department or staffing quota commission of the government, and permission issued by fiscal
agencies. Public institutions that are not included in the budget process shall produce approval letters and certificates of registration
issued by the personnel department or staffing quota commission of the government.

(4)

Military units, armed police units at or above regimental level and detachments on separate missions shall present certificates of
account holding by the treasury departments in units that are above army level or in headquarters of the armed police.

(5)

Social organizations shall produce their registration certificates, while religious organizations shall produce approval letters or
certificates issued by religious affairs administration authorities as an addition.

(6)

Private non-enterprise organizations shall produce registration certificates for private non-enterprise organizations.

(7)

Resident offices outside their places of residence shall produce approval letters issued by the government of where they are located.

(8)

Resident offices in China of international organizations shall produce approval letters or certificates issued by relevant Chinese
authorities; representative offices or operational branches of foreign companies shall produce registration certificates issued by
the Chinese registration agencies.

(9)

Self-employed entities shall produce original copies of their business licenses.

(10)

Community agencies shall produce approval letters and certificates issued by relevant authorities.

(11)

Financially independent subsidiaries shall produce registration certificates for opening of basic deposit accounts and approval letters
issued to entities to which they are affiliated.

(12)

Other organizations shall produce approval letters or certificates issued by relevant authorities.

Depositors in this Article that are taxpayers and engaged in productive and commercial activities shall, in addition, produce tax
registration certificates issued by the taxation authority.

Article 18

When applying for opening general deposit accounts, a depositor shall produce relevant documents according to the following requirements,
in addition to the documents required for opening basic deposit accounts and the registration certificate of opening basic deposit
accounts:

(1)

If in need of borrowing from banks, the depositor shall produce borrowing contracts.

(2)

If for the purpose of conducting other settlement, the depositor shall produce relevant documents.

Article 19

When applying for opening special deposit accounts, a depositor shall produce relevant documents according to the following requirements,
in addition to the documents required for opening basic deposit accounts and the registration certificate of opening basic deposit
accounts:

(1)

As for depositing funds of capital construction, technology upgrading, policy encouraged real estate development, housing provident
funds and social security funds, the depositor shall produce approval documents of relevant authorities.

(2)

As for depositing extra budgetary funds, the depositor shall produce approval of fiscal agencies.

(3)

As for depositing funds for procurement of grain, cotton and edible oil, the depositor shall produce approval of relevant authorities.

(4)

As for depositing reserve funds of institutions for banking card transactions, the depositor shall produce relevant documents according
to the rules on banking card transactions approved by the People’s Bank of China.

(5)

As for depositing settlement funds for securities transactions, the depositor shall produce certificates issued by securities firms
or the securities supervisory authority.

(6)

As for depositing margin funds for futures trading, the depositor shall produce certificates issued by futures firms or the futures
supervisory authority.

(7)

As for interbank deposits of financial institutions, the depositor shall produce relevant certificates.

(8)

As for depositing surrendered proceeds and funds for business spending, the depositor shall produce relevant certificates of the depositors
holding basic deposit accounts.

(9)

As for depositing operational funds for offices of the Party, the Youth League and the Trade Union in institutions, the depositor
shall produce approval documents or certificates issued by these institutions or relevant authorities.

(10)

As for depositing other funds required to be managed or used separately, relevant copies of laws and regulations or relevant documents
of government shall be produced.

Article 20

Special RMB account and RMB fund settlement accounts opened by qualified foreign institutional investors (QFII) for the convenience
of domestic securities investment shall be managed as special deposit accounts. A QFII shall produce approval issued by the State
Administration of Foreign Exchange for opening special RMB account, and in the case of opening RMB fund settlement account, the business
license for securities investment issued by the securities authority is required.

Article 21

When applying for opening temporary deposit accounts, a depositor shall produce relevant documents to banks according to the following
rules:

(1)

As for temporary institutions, they shall produce approval for their establishments issued by relevant authorities in residence place.

(2)

As for construction or equipment installation enterprises operating outside their original registration location, they shall produce
original copies of their or their parent institutions’ business licenses, and permission issued by local construction/equipment installation
authorities or contracts of construction/equipment installation.

(3)

As for institutions engaged in temporary operations outside their original registration location, they shall produce original copies
of their business licenses and approval issued by local administration bureaus of industry & commerce.

(4)

As for funds deposited for registration and examination of capital requirement compliance, the depositor shall produce Notice of Advance
Approval of Enterprises’ Names issued by the administrative authorities of industry & commerce or approval of other relevant authorities.

Depositors that fall into section (2) and (3) shall, in addition, produce their registration certificates for opening of basic deposit
accounts.

Article 22

When applying for opening of bank settlement accounts for individuals, depositors shall produce ID cards to banks according to the
following rules:

(1)

Residents of China shall produce ID cards or temporary ID cards.

(2)

Military units servicemen shall produce their army ID cards.

(3)

Armed Police shall produce their armed police ID cards.

(4)

Residents of Hong Kong, Macau and Taiwan shall produce valid ID cards issued by the state immigration/emigration authorities.

(5)

Foreign citizens shall produce passports.

(6)

Other valid certificates stipulated by laws, regulations and relevant state documents.

When opening bank settlement accounts for individuals, banks may also require applicants to produce other valid certificates accordingly,
including certification of permanent residence registration (Hukou), driving licenses or passports.

Article 23

When a depositor needs to open bank settlement accounts for institutions outside their original registration location, relevant certificates
shall be provided according to the following rules in addition to the relevant documents required to be submitted in Article 17 ,
18, 19, 20 of these rules:

(1)

Depositors that are registered and operating outside their administrative places, when opening basic deposit accounts outside their
original registration location, shall produce certificates issued by branch office(s) of the People’s Bank of China in where they
are registered, which prove that they have not opened basic deposit accounts.

(2)

Depositors that borrow from outside their original registration location, when opening general deposit accounts outside their places
of residence, shall produce borrowing contracts proving they have got loans from that location.

(3)

Depositors to effect proceeds surrender and business spending outside their original registration location due to operational needs,
when opening special deposit accounts in that location, shall produce relevant certificates of their parent institutions.

Depositors that fall into Section (2), (3) of this Article shall, in addition, produce their registration certificates of opening
of basic deposit accounts.

Depositors that need to open bank settlement accounts for individuals outside their original registration location shall produce certificates
required by Article 21 of these rules.

Article 24

post_titles that institutions use to open bank settlement accounts shall be consistent with those they provide in their certificate documents
for application for opening of accounts. A self-employed entity with a brand name shall ensure consistence of the post_title of its bank
settlement account and the brand name recorded in its business license. post_titles of bank settlement accounts opened by self-employed
entities that have no brand name shall comprise characters of “Self-employed Entities” and “names” of the owners recorded in their
business licenses. post_titles of bank settlement accounts opened by natural persons shall be consistent with names in the valid ID certificates
provided.

Article 25

When a bank opens a general deposit account, an special deposit account or a temporary deposit account for a depositor, it shall inform
the bank that holds the basic deposit account for that depositor within 3 working days after the opening of such accounts.

Article 26

Applications for the opening of bank settlement accounts for institutions may be filed by the legal person or head of the applying
institution, or other people authorized by that institution.

If it is the legal entity or head of the institution that files the application, in addition to required certificates, he or she still
needs to produce his or her ID card. In the case of other people authorized by the institution, in addition to the required certificates,
he or she still needs to produce authorization issued by and the ID card of the legal entity or head of that institution, as well
as his or her own ID card.

Article 27

When applying for opening of bank settlement account, a depositor shall fill the application form for opening of such account. The
application form is to record relevant information required by the People’s Bank of China.

Article 28

Banks shall carefully verify the authenticity, integrity and regulatory compliance of certificate and filled-in information in the
application form.

When the application form is filled completely and meets the requirements for opening a basic deposit account, a temporary deposit
account or an special deposit account of a budget unit, the bank shall send to the local branch office of the People’s bank of China
the filled application form, the required certificates and review conclusion of the bank and go on with the opening account process
after being approved by the local branch office of the People’s Bank of China. As to applications that meet the requirements for
opening general deposit accounts, other special deposit accounts or bank settlement accounts for individuals, banks shall carry out
the opening account process right away and file the case with the local branch office of the People’s Bank of China within five working
days after the opening of such accounts.

Article 29

The People’s Bank of China shall review the regulatory compliance of the documents submitted for opening basic deposit accounts, temporary
deposit accounts and special deposit accounts of budget units within two working days. It shall approve those eligible applications,
while sign and return those ineligible application forms along with the submitted certificates back to the bank.

Article 30

When opening a bank settlement account for a depositor, the bank shall sign an agreement with the depositor on the management of that
bank settlement account, defining rights and obligations of either party. It shall also keep cards that contain the stamp or signature
of the depositor and keep files of the original copies or duplicates of the stamp or signature and required certificates.

Article 31

Registration certificates of opening accounts are the valid proof containing information on bank settlement accounts for institutions.
Depositors shall use these certificates in accordance with these rules and keep them in safe place.

Article 32

When opening general deposit accounts, special deposit accounts or temporary deposit accounts for depositors, banks shall record on
the registration certificates of basic deposit accounts names of the accounts, numbers of the accounts, nature of the accounts, banks
to hold the accounts and the opening date of the accounts and stamp on it. Temporary deposit accounts that are opened by temporary
institutions or in need of registration and examination of capital requirement compliance are exempted from this requirement.

Chapter III Use of Bank Settlement Accounts

Article 33

Basic deposit account is the principal account for a depositor. Funds receipt and payment in depositors’ day-to-day operations, as
well as withdrawal of salary, bonus or cash, shall all be conducted through this account.

Article 34

General deposit account is to be used for depositing borrowing proceeds, repaying debt and other settlements. Such an account may
be used to surrender cash, but is prohibited from being used to withdraw cash.

Article 35

Special deposit account is to be used for receipt and payment of various earmarked funds.

Funds deposited in enterprise banking card accounts shall only be transferred from the basic deposit accounts and are not allowed
to be used for cash receipt and payment.

Cash withdrawal is not allowed from special deposit accounts for extra budgetary funds, settlement funds of securities transactions,
margin funds for futures trading and trust funds.

If depositors need to withdraw cash from accounts set for depositing funds of capital construction, technology upgrading, policy encouraged
real estate development or interbank deposits of financial institutions, they shall apply for approval of the local branch office
of the People’s Bank of China when applying for opening such accounts. The local branch office of the People’s Bank of China shall
review and approve the applications according to rules on cash management.

Cash withdrawal from special deposit accounts for depositing social security funds, housing provident funds and funds for procurement
of grain, cotton and edible oil shall be carried out in accordance with rules on cash management.

Accounts set for depositing proceeds surrender are not allowed to conduct payment transactions except for transferring funds to the
basic deposit accounts or special deposit accounts for extra budgetary funds. No cash withdrawal is allowed. Accounts for effecting
business spending are not allowed to receive funds except for funds transferred from the basic deposit accounts. Cash withdrawal
from such accounts shall be conducted in line with rules on cash management.

Banks shall reinforce surveillance according to these rules and rules on management and use of funds for procurement of grain, cotton
and edible oil. Banks shall not conduct funds receipt and payment and cash withdrawal that are in violation of relevant rules and
regulations. However, banks are not responsible for supervising the use of other earmarked funds.

Article 36

Temporary deposit accounts are to be used for funds receipt and payment resulted from temporary operations by temporary institutions
or depositors.

The validity period of temporary deposit accounts shall be determined according to the validity period defined in the relevant certificate
for opening of such accounts, as well as the need of the depositors. If depositors need to extend the validity period while using
such accounts, they shall apply to the bank that holds the account during the validity period. Then the bank shall submit such applications
to the local branch office(s) of the People’s Bank of China and make the extension upon approval. Validity period of temporary deposit
accounts shall not be longer than two years.

Cash withdrawal from the temporary deposit accounts shall be conducted in accordance with relevant rules on cash management.

Article 37

Temporary deposit account opened for depositing funds for registration and examination of capital requirement compliance may only
be used to receive funds (not to disburse funds) during the examination period. The name of the person who provides such funds shall
be the same as that of the investor.

Article 38

In the case of depositors opening bank settlement accounts for institutions, such accounts may only be used to conduct payment transactions
three working days after their opening. However, conversion of a temporary deposit account for registration and examination of capital
requirement compliance into a basic deposit account, as well as a general deposit account opened to deposit borrowing proceeds, are
exempted from this restriction.

Article 39

Bank settlement accounts for individuals are to be used to conduct individuals’ receipt and disbursement of fund transfers, as well
as cash deposit and withdrawal. Following funds are allowed to be transferred to bank settlement accounts for individuals:

(1)

Income of salary and bonus.

(2)

Author’s remuneration and performance remuneration of actors.

(3)

Principle and returns of investment such as bonds, futures and trust.

(4)

Gains from transfer of personal debt or ownership.

(5)

Deposits of retail loan proceeds.

(6)

Settlement funds for securities transactions and margin funds for futures trading.

(7)

Inherited or granted funds.

(8)

Insurance compensation and returned premium.

(9)

Tax rebate.

(10)

Sales income of agricultural and mineral products.

(11)

Other legitimate proceeds.

Article 40

When an institution disburses funds from its bank settlement account to a bank settlement account for individuals, it shall produce
to the bank that holds its account the following warrants to effect the disbursement if the disbursement is over RMB 50 thousand
Yuan:

(1)

Agreement on entrusted salary payment and the name list of recipients.

(2)

Certificates of rewards.

(3)

Contracts signed between recipients and the publishing houses or sponsors of the show performance, or certificates of disbursement
to individuals

(4)

Certificates of disbursement or rebate of funds to natural persons by securities firms, futures firms, trust and investment companies
and lottery issuers or underwriters.

(5)

Agreement of debt or ownership transfer.

(6)

Borrowing contract.

(7)

Warrant of insurance company.

(8)

Warrant of taxation authorities.

(9)

Purchase and sale contracts of agricultural and mineral products.

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