Circular of China Banking Regulatory Commission concerning Wholly foreign-funded Banks and Chinese-foreign Equity Joint Banks to Conduct
the Bank Card Business

Yin Jian Fa [2007] No. 49

All branches of China Banking Regulatory Commission,

In order to regulate the administration of bank card business of wholly foreign-funded banks and Chinese-foreign equity joint banks
and prevent the risks of bank card business, pursuant to the Regulations of the People’s Republic of China on the Administration
of Foreign-funded Banks, the Detailed Rules on the Implementation of the Regulations of the People’s Republic of China on the Administration
of Foreign-funded Banks and Measures for the Administration of the Bank Card Business, you’re hereby notified of the following issues
on wholly foreign-funded banks and Chinese-foreign equity joint banks to conduct the bank card business:

1.

Wholly foreign-funded banks and Chinese-foreign equity joint banks may apply for conducting the bank card business as of the day when
the present Circular is printed and distributed.

2.

The term “bank cards” as mentioned in the present Circular is classified into RMB cards and foreign currency cards as per different
currencies, including debit cards, quasi-credit cards and credit cards.

Quasi-credit cards and credit cards are referred to as credit cards in general.

3.

Wholly foreign-funded banks and Chinese-foreign equity joint banks may, upon approval of China Banking Regulatory Commission (hereinafter
referred to as the CBRC), conduct the bank card business within the scope of its clients. An applicant shall satisfy the following
requirements:

(1)

Its capital adequacy ratio, asset quality and other main supervisory indicators are in conformity with the related provisions of the
CBRC;

(2)

It has management rules and risk management measures commensurate with its needs of conduction of bank card business;

(3)

It has established a computer system in conformity with the related business and technical standards and has the technical capability
to ensure the safety of the banking information within the territory of China;

(4)

It has technicians, managerial personnel and corresponding management institutions which can satisfying the needs of conduction of
bank card business; and

(5)

Other prudent conditions as requested by the CBRC.

If a wholly foreign-funded bank or Chinese-foreign equity joint bank plans to issue foreign currency cards, it shall have the qualifications
as approved by the foreign exchange administrative department of the State Council for conducting settlement of foreign exchange
and sale of foreign currencies.

4.

A wholly foreign-funded bank or Chinese-foreign equity joint bank which plans to issue bank cards shall abide by the bank card business
and technical standards as formulated by the People’s Bank of China and meet the general requirements for the network of bank cards.

5.

A wholly foreign-funded bank or Chinese-foreign equity joint bank which plans to conduct the bank card business shall apply to the
branch of the CBRC of the place where its headquarters is located by analogy to the application materials as stipulated in the Measures
for the Administration of Bank Card Business.

6.

The branch of the CBRC of the place where the headquarters of the wholly foreign-funded bank or Chinese-foreign equity joint bank
is located shall submit the application materials together with the examination opinions to the CBRC within 20 days as of the date
of receiving a complete set of application materials.

The CBRC shall, within 3 months after receiving the compete set of application materials submitted by the wholly foreign-funded bank
or Chinese-foreign equity joint bank to conduct bank card business, make a decision of approval or disapproval. In case it makes
a decision of disapproval, it shall give a written notification to the applicant and make an explanation.

7.

If a wholly foreign-funded bank or Chinese-foreign equity joint bank, after getting the approval to conduct the bank card business,
needs to conduct the business of such new types of bank cards as quasi-credit cards or credit cards, it shall make application for
approval under the present Circular.

8.

A wholly foreign-funded bank or Chinese-foreign equity joint bank shall, after getting the approval to conduct the bank card business,
report to the local institution dispatched by the CBRC the types of bank cards which it plans to conduct.

If a branch of a wholly foreign-funded bank or Chinese-foreign equity joint bank plans to conduct the bank card business upon authorization
of its headquarters, it shall, before conducting such business, report to the local institution dispatched by the CBRC the types
of bank cards which it plans to conduct upon the strength of the pertinent approval documents and the authorization of its headquarters.

9.

The supervision and administration over the bank card business of wholly foreign-funded banks and Chinese-foreign equity joint banks
shall be subject to the related provisions on the administration of bank card business.

All related branches of the CBRC should promptly transmit the present Circular to your sub-branches and the foreign-funded institutions
of foreign-funded banks under your respective jurisdiction.

China Banking Regulatory Commission

June 6, 2007