Facebook
Home Murder

Murder

MEASURES FOR THE ADMINISTRATION OF ANNUAL PLANS ON THE UTILIZATION OF LAND (2004 REVISED EDITION)

the Ministry of Land and Resources

Order of the Ministry of Land and Resources of the People’s Republic of China

No. 26

The “Measures for the Administration of Annual Plans on the utilization of Land” were revised and adopted at the 9th ministerial meeting
of the Ministry of Land and Resources on October 29, 2004. The revised “Measures for the Administration of Annual Plans on the utilization
of Land” are hereby promulgated, and shall come into force on December 1, 2004.

Minister of the Ministry of Land and Resources Sun Wensheng

November 1, 2004

Measures for the Administration of Annual Plans on the Utilization of Land (2004 revised edition)

Article 1

These Measures are formulated in accordance with the Land Administration Law of the People’s Republic of China, the Regulation on
the Implementation of the Land Administration Law of the People’s Republic of China and the Decision of the State Council on Deepening
the Reform and Strictly Enforcing Land Administration in order to strengthen land administration, implement the overall planning
on land utilization, control the total amount of land for construction use, guide intensive use of land, earnestly protect cultivated
land, and guarantee sustainable economic and social development.

Article 2

The compilation, submission for approval, implementation of and supervision over the annual plans on the utilization of land shall
be governed by these Measures.

The annual plan on the utilization of land as mentioned in these Measures shall mean the specific arrangements by the State in each
planned year of the amount of land for agricultural use to be converted into that for other uses, the amount of cultivated land supplemented
by land development and rehabilitation, and the amount of reserved cultivated land.

Article 3

The annual plans on the utilization of land shall be administered in compliance with the following principles:

(1)

Strictly complying with the overall planning on land utilization, controlling the total amount of land for construction use, and protecting
cultivated land;

(2)

Guiding demands for land on the basis of land supply, as well as rationally and effectively utilizing land;

(3)

Giving priority to ensuring the land for the State’s key construction projects and infrastructure projects;

(4)

Balancing the occupation and supplement of cultivated land;

(5)

Increasing land use in urban areas while reducing land use in rural areas for construction purposes; and

(6)

The ecological environment shall be protected and improved, and the sustainable utilization of land shall be guaranteed.

Article 4

The annual plan indexes of land utilization shall include:

(1)

the planned index on land conversion from agricultural use into construction use, which may be divided into the index of land for
agricultural use occupied for urban and rural construction, and the index of land for agricultural use occupied for key construction
projects of energy, traffic and water conservancy, etc., whose localities are independently selected.

(2)

the planned index of land development and rehabilitation, which may be divided into the index of supplementing cultivated land by
land development and the index of supplementing cultivated land by land rehabilitation and reclaiming. And

(3)

the planned index of the amount of reserved cultivated land.

The land administration departments in all regions may, in light of the actual needs, add the controlling index on the basis of the
above classification.

Article 5

In the annual plan on the utilization of land, the planned index on land use conversion from agricultural purposes into construction
purposes shall be determined pursuant to the plan on national economic and social development, the overall planning on land utilization,
the policies of the state on land supply, and the actual situation on land utilization.

The planned index of land development and rehabilitation shall be determined on the basis of the overall planning on land utilization,
the planning on land development and rehabilitation, and the facts on reduction of cultivated land due to construction, etc.

The planned index of the amount of reserved cultivated land shall be determined on the basis of the assessment targets on protection
of cultivated land, which are released by the State Council to all provinces, autonomous regions, and municipalities directly under
the Central Government.

Article 6

Where any land is to be used within the planned year for a key construction project which needs to be approved and ratified by the
State Council or the national development and reform institution, etc., involving land use conversion from agricultural purposes
into construction purposes, the competent authority of the said industry shall, prior to September 25 of the last year, provide its
suggestions on the plan to the Ministry of Land and Resources according to the project, and at the same time submit the copies to
the administrative department of land and resources and the development and reform department of the province, autonomous region,
or municipality directly under the Central Government where the land to be used for the project is located.

Article 7

The administrative department of land and resources of a local people’s government at the county level or above shall, jointly with
other relevant departments, and pursuant to the uniform arrangement of the state, propose its suggestions on the annual plan on the
utilization of local land, and shall, upon examination by the people’s government at the same level, report to the administrative
department of land and resources of the people’s government at the higher level.

The suggestions of all provinces, autonomous regions, and municipalities directly under the Central Government on the annual plan
on the utilization of land shall be submitted to the Ministry of Land and Resources prior to October 10 of each year, and copies
thereof shall meanwhile be submitted to the National Development and Reform Commission. The suggestions of a city directly under
state planning or of Xinjiang Production and Construction Group on the annual plan on the utilization of land shall be separately
stated in the plan proposals of the relevant province or autonomous region.

Article 8

The Ministry of Land and Resources shall, jointly with the National Development and Reform Commission, and on the basis of the suggestions
proposed from all regions and by the relevant institution under the State Council on the annual plan on the utilization of land,
compile a draft of the national annual plan on the utilization of land, which shall be included into the draft of the annual plan
on national economy and social development.

Article 9

The Ministry of Land and Resources shall, jointly with the National Development and Reform Commission, submit the draft of the annual
plan on the utilization of land to the State Council. The said annual plan shall, after verification by the State Council, be released
to all places and used as a reference for implementation. After the National People’s Congress has examined and adopted the draft
of the plan on national economic and social development, the plan approved by the National People’s Congress shall come into force.

Article 10

The national annual plan on the utilization of land shall be released to all provinces, autonomous regions, municipalities directly
under the Central Government, cities directly under state planning, and Xinjiang Production and Construction Group.

With respect to the planned index on land use conversion from agricultural purposes into construction purposes, only the planned index
of the land for agricultural use which is occupied by the projects for urban and rural (including independent industrial and mining
areas) construction and the planned index of land use conversion from agricultural purposes into construction purposes, which is
approved by the provincial authority, are required to be released. The planned index on the land for agricultural use which is occupied
for any key construction project shall not be released to specific regions if the conversion of the land for agricultural use into
that for construction use is to be approved and ratified by the State Council or by the national development and reform institution,
etc. and be examined by the State Council for approval, however, such index may be used when the land used for a construction project
is examined for approval.

Article 11

The administrative department of land and resources under a local people’s government may divide the planned index of land utilization
released by the superior authority, and release the divided index after approval of the people’s government at the same level.

The administrative department of land and resources under a people’s government at the provincial level shall, when dividing and releasing
the plans, independently list the planned index on land use conversion from agricultural purposes into construction purposes concerning
the cities in the overall planning on land utilization, which has been approved by the State Council, and shall report the said index
to the Ministry of Land and Resources for archival purposes.

Article 12

When any land for agricultural use is to be occupied by an unforeseeable key project in urgent need in respect of energy, traffic,
water conservancy, etc., whose locality is independently selected, a flexible index of a small amount of land may be reserved.

Article 13

The planned index on land use conversion from agricultural purposes into construction purposes shall be subject to mandatory administration,
which may not be broken. If no planned index on land use conversion from agricultural purposes into construction purposes is held,
the competent authority may not approve the conversion of the land for agricultural use. In the plan on land use conversion from
agricultural purposes into construction purposes, the index of the land for agricultural use, which is occupied for urban and rural
construction, may not be mixed with the index of the land for agricultural use, which is occupied by key construction projects of
energy, traffic, water conservancy, etc., whose localities are independently selected. If no planned index on land use conversion
from agricultural purposes into construction purposes is held, but the competent authority discretionarily approves the conversion
of the land for agricultural use into that for construction use, it shall be subject to liabilities for illegally approving the use
of land.

The supplement of cultivated land by land development and rehabilitation shall conform to the index determined in the land development
and rehabilitation plan.

The planned index of the amount of reserved cultivated land may be used for the inspection and assessment of the targets on protection
of cultivated land. The amount of reserved cultivated land in the assessment year may not be lower than the planned index on the
amount of reserved cultivated land.

Article 14

Once an annual plan on the utilization of land is approved to be released, it must be strictly implemented.

If, when implementing the annual plan on the utilization of land, the competent authority of a province, autonomous region, or municipality
directly under the Central Government indeed needs to raise the planned index on land use conversion from agricultural purposes into
construction purposes due to an unforeseeable key construction project, it may file an application to the Ministry of Land and Resources.

Where it is necessary to add the plan on land use conversion from agricultural purposes into construction purposes in a national annual
plan on the utilization of land due to a particular circumstance, it shall be submitted to the State Council pursuant to the prescribed
procedures for determination.

Article 15

The administrative department of land and resources of a local people’s government at the county level or above shall apply desk-account
management to the annual plan on the utilization of land, and make registration and statistics on the implementation of the said
plan.

The implementation of the annual plan on the utilization of land shall be included into the comprehensive statistics on land and resources,
and shall be reported to the superior authority at regular intervals.

Article 16

A superior administrative department of land and resources shall make assessment on the implementation by inferior ones of the annual
plan on the utilization of land.

The assessment shall be made in combination with the comprehensive statistics on land and resources, the approval and archiving of
land for construction use, the modification and survey of land utilization, dynamic monitoring of land utilization, and so on.

The assessment year of an annual plan on the utilization of land shall commence on January 1 and end on December 31 of each year.

Article 17

The results from assessment of the implementation of the annual plan on the utilization of land shall be considered as the basis for
compiling the plan for the next year.

In case of unauthorized approval of use of land beyond the plan, if there have been two years since the land was requisitioned but
no land is supplied, or if the task of balancing the occupation and supplement of cultivated land has not been fulfilled, the planned
index of the next year on land use conversion from agricultural purposes into construction purposes shall be reduced accordingly.

Article 18

The surplus of land whose use to be converted from agricultural purposes into construction purposes of each province, autonomous region,
municipality directly under the Central Government and city directly under state planning, and of Xinjiang Production and Construction
Group may be, after ratification by the Ministry of Land and Resources, carried forward for use within the planning period.

Article 19

These Measures shall come into force on December 1, 2004.



 
the Ministry of Land and Resources
2004-11-01

 






NOTICE OF THE MINISTRY OF COMMERCE AND THE STATE ADMINISTRATION OF TAXATION ON RELEVANT ISSUES CONCERNING UNDERTAKING FINANCING LEASE BUSINESS

the Ministry of Commerce, the State Administration of Taxation

Notice of the Ministry of Commerce and the State Administration of Taxation on Relevant Issues concerning Undertaking Financing Lease
Business

Shang Jian Fa [2004] No.560

The competent departments of commerce of all the provinces, autonomous regions, municipalities directly under the Central Government
and cities directly under state planning, the state administration of taxation and the local administrations of taxation,

For the purpose of further bringing into play the role of leasing industry in the expansion of domestic demand and promotion of economic
development, and supporting the rapid and healthy development of leasing industry, the following notice are formulated hereby on
the relevant issues concerning the carrying out of financing lease business:

I.

According to the provisions of the Ministry of Commerce on the “Three Fixings” (fixing the function, fixing the institution and fixing
the size of staff) issued by the General Office of the State Council, the relevant functions of the former State Economic and Trade
Commission and the former Ministry of Foreign Trade and Economic Cooperation on administering leasing industry and foreign-funded
leasing companies shall come under the administration of the Ministry of Commerce. In the future, all the administrative functions
of the former State Economic and Trade Commission and the Ministry of Foreign Trade and Economic Cooperation referred to in the Notice
of the Ministry of Finance and the State Administration of Taxation on Several Policy Issues on Business Tax, shall be burdened by
the Ministry of Commerce.

II.

The relevant provisions of the Ministry of Commerce shall be continuously followed for the work of market access of and industry supervision
over foreign-funded leasing companies.

III.

The Ministry of Commerce will carry out the experimental work for undertaking financing lease business in Chinese-funded leasing enterprises.
The competent departments of commerce of all the provinces, autonomous regions, municipalities directly under the Central Government
and cities directly under state planning may recommend one or two enterprises which undertake the leasing business of various advanced
or applicable equipments used in production, communications, medical treatment, environmental protection, scientific and research
and etc., and engineering machinery and traffic conveyances (including airplane, steamships, automobiles and etc.) to take part in
the experimental work in the light of the actuality of development of leasing industry in their own regions. The recommended enterprises
shall be brought into the scope of financing lease experiment after being confirmed jointly by the Ministry of Commerce and the State
Administration of Taxation.

IV.

A pilot enterprise which undertakes financing lease business (hereinafter referred to as the financing lease pilot enterprise) shall
have the following qualifications concurrently:

1.

The minimum registered capital of any Chinese-funded leasing enterprise that was established before or on August 31st, 2001 shall
reach RMB 40 million Yuan. The minimum registered capital of any Chinese-funded leasing enterprise that was established during the
period of September 1st, 2001 to December 31st, 2003 shall reach RMB 170 million Yuan;

2.

It has a perfect internal management system and a perfect risk control system;

3.

It has corresponding professionals in aspects of finance, trade, law, accounting and etc.; and the senior managers shall have experiences
in leasing industry for not less than three years;

4.

It has good business achievements in the past two years and has no records of violation of laws and regulations;

5.

It has the industry background relating to its undertaking of financing lease product; and

6.

Other qualifications as prescribed by laws and regulations.

V.

Besides the recommendation letter, the financing lease pilot enterprise recommended by the competent department of commerce at the
provincial level shall submit the following documents:

1.

the application of the enterprise for undertaking financing lease business and the feasibility study report;

2.

the duplicate (or photocopy) of the business license;

3.

articles of association of the company, documents of internal management system and risk control system of the enterprise;

4.

financial statements in the past three years issued by a qualified accountant firm;

5.

certificate proving that it has no records of violation of laws and regulation in the past two years; and

6.

the name list and qualification certificates of senior management personnel.

VI.

The financing lease companies as listed in Articles 2 and 3 of the present Notice (that is the Chinese-funded financing lease pilot
enterprises, the foreign-funded financing lease companies) may enjoy the business tax policies on financing lease business in accordance
with the provisions of the Notice of the Ministry of Finance and the State Administration of Taxation on Several Policy Issues concerning
Business Tax (No. 16 [2003] of the Ministry of Finance).

VII.

A financing lease company shall pay all kinds of taxes in time strictly according to the relevant provisions of the state. If it violates
the tax laws and regulations of the state or evades tax money, the tax organ shall give it a punishment according to the Law of the
People’s Republic of China on the Administration of Tax Collection and the relevant provisions of tax laws and regulations, and shall
cancel the financing lease tax policy implemented to the enterprise at the same time.

When any financing lease company purchases any equipment from its affiliated production enterprises, the settlement price of the relevant
equipment shall be not lower than the price sold to any third party (or the price of the same batch of equipment) by the production
enterprise.

VIII.

Any financing lease pilot enterprise shall strictly conform with the relevant laws and regulations of the state, and may not undertake
the following businesses:

1.

absorbing deposits or depositing in disguised form;

2.

providing loans of circulating fund and other loans under the leasing item to the tenant;

3.

securities investment or equity investment of financial institutions;

4.

Inter-bank borrowing or lending business; or

5.

Other financial businesses not being approved by the China Banking Regulatory Commission.

IX.

The risk assets (including balance of guaranty) of any financing lease pilot enterprise may not exceed 10 times of the total capital.

X.

A financing lease pilot enterprise shall report the business conditions in the previous quarter to the provincial competent department
of commerce before the 15th day each quarter and send a copy to the Ministry of Commerce. The Ministry of Commerce and the State
Administration of Taxation shall make spot check on the business conditions of the pilot enterprise periodically or aperiodically.
For any enterprise that violates the relevant laws and regulations and the aforesaid provisions, the Ministry of Commerce shall cancel
its qualification as a financing lease pilot enterprise.

XI.

The competent department of commerce and the competent department of taxation of each region shall strengthen supervision over the
financing lease pilot enterprises, make research on the problems existing in the experimental work, and report to the Ministry of
Commerce and the State Administration of Taxation once any major issue is discovered. Meanwhile, they shall summarize experiment
experiences continuously and take effective measures to promote the healthy development of leasing industry.

The Ministry of Commerce

The State Administration of Taxation

October 22nd, 2004



 
the Ministry of Commerce, the State Administration of Taxation
2004-10-22

 






INTERIM MEASURES FOR THE ADMINISTRATION OF STOCK INVESTMENT OF INSURANCE INSTITUTIONAL INVESTORS

China Insurance Regulatory Commission, China Securities Regulatory Commission

Order of China Insurance Regulatory Commission and China Securities Regulatory Commission

No. 12

Interim Measures for the Administration of Stock Investment of Insurance Institutional Investors enacted by China Insurance Regulatory
Commission together with China Securities Regulatory Commission, are hereby promulgated and shall come into force as of the day of
promulgation.

President of China Insurance Regulatory Commission, Wu Dingfu

President of China Securities Regulatory Commission, Shang Fulin

December 24, 2004

Interim Measures for the Administration of Stock Investment of Insurance Institutional Investors

Chapter I General Provisions

Article 1

The present Measures are formulated according to the “Insurance Law of the People’s Republic of China”, the “Securities Law of the
People’s Republic of China” and other laws and administrative regulations for the purpose of strengthening the administration of
stock investment business by insurance institutional investors, regulating investment activities, preventing investment risks and
guaranteeing the interests of insurants.

Article 2

Insurance institutional investors mentioned in the present Measures shall mean insurance companies or insurance asset management companies
that meet the conditions prescribed by China Insurance Regulatory Commission (hereinafter referred to as CIRC) and engage in stock
investment. Insurance group companies and insurance holding companies engaging in stock investment shall be governed by the present
Measures.

Stock investment mentioned in the present Measures shall mean the activity that an insurance institutional investor engages in or
entrusts a qualified institution to engage in the trading of stocks, bonds of convertible companies and other stock market products.

Stock asset trusteeship mentioned in the present Measures shall mean the activity that an insurance company concludes, according to
the relevant provisions of CIRC, a trusteeship agreement with a commercial bank or other professional financial institution, who
is entrusted by the insurance company to keep in custody of the stocks and the funds for investment in stocks, to be responsible
for the settlement and transaction, valuation of assets, investment supervision and etc.

Article 3

When investing in stocks, An insurance institutional investor shall set up an independent trusteeship mechanism, follow the principles
of prudence, safety and value increase, as well as independently operate the business and bear the risks, profits and losses by itself.

Article 4

The CIRC and China Securities Regulatory Commission (hereinafter referred to as CSRC) shall, according to their respective duties,
conduct supervision and administration over the stock investment activities carried out by insurance institutional investors.

Chapter II Qualification Requirements

Article 5

An insurance asset management company shall, if it accepts the entrust to engage in stock investment, meet the following conditions:

(1)

Its internal management system and risk control system accord with the “Guide to Risk Control on Utilization of Insurance Funds”;

(2)

It has found an independent trading department;

(3)

Its relevant senior managers and major operating personnel meet the requirements prescribed in the present Measures;

(4)

It has professional investment analysis system and risk control system; and

(5)

Other conditions prescribed by the CIRC.

Article 6

An insurance company meeting the following conditions may, with approval of the CIRC, entrust a relevant insurance asset management
company which meets the conditions prescribed in Article 5 of the present Measures to engage in stock investment:

(1)

Its solvency accords with the relevant provisions of the CIRC;

(2)

Its internal management system and risk control system accord with the “Guide to Risk Control on Utilization of Insurance Funds”;

(3)

It has found a special department responsible for entrustment of insurance funds;

(4)

The relevant senior managers and major operating personnel meet the requirements prescribed in the present Measures;

(5)

It has set up a mechanism for stock asset trusteeship;

(6)

It has no investment records that severely violate laws or rules during the last three years; and

(7)

Other conditions prescribed by the CIRC.

Article 7

An insurance company meeting the following conditions may, with approval of the CIRC, directly engage in stock investment:

(1)

Its solvency accords with the relevant provisions of the CIRC;

(2)

Its internal management system and risk control system accord with the “Guide to Risk Control on Utilization of Insurance Funds”;

(3)

It has found a professional fund utilization department;

(4)

It has found an independent trading department;

(5)

It has set up a mechanism for stock asset trusteeship;

(6)

The relevant senior managers and major operating personnel meet the requirements prescribed in the present Measures;

(7)

It has professional investment analysis system and risk control system;

(8)

It has no investment records that severely violate laws or rules during the last three years; and

(9)

Other conditions prescribed by the CIRC.

Article 8

An insurance company that applies for directly engaging in or entrusting an insurance asset management company to engage in stock
investment shall submit the following documents and materials to the CIRC in triplicate:

(1)

The application letter;

(2)

The board resolution on stock investment;

(3)

Its internal management system, risk control system and the condition on the setup of its internal frameworks;

(4)

Relevant materials on stock asset trustees and the draft of the trusteeship agreement;

(5)

The list and resumes of the relevant senior managers and major operating personnel;

(6)

The financial statements of the company of the latest three years which have been audited by an accounting firm;

(7)

The existing trading seats, securities accounts and fund accounts;

(8)

Its stock investment strategies, which shall at least state the idea of stock investment, investment targets and the direction of
investment combination; and

(9)

Other documents and materials prescribed by the CIRC to be provided.

In case an insurance company applies for directly engaging in stock investment, it shall submit the statement on the investment analysis
system and risk control system in addition.

Article 9

When examining the application of an insurance company for directly engaging in or entrusting an insurance asset management company
to engage in stock investment, the CIRC shall make a decision on whether or not to approve the application within 20 days as of receipt
of the complete application documents and materials. If the CIRC decides not to approve the application, it shall notify the applicant
in written form and state the reason thereof.

When considering it necessary, the CIRC may conduct expert appraisal on the application proceedings of the insurance company and shall
notify the insurance company in written form of the time needed by the expert appraisal.

Article 10

Where an insurance company directly engages in stock investment, it shall, within 10 days after completing the relevant procedures
for stock investment, submit to the CIRC the formal trusteeship agreement, the benchmark for evaluating investment performance, as
well as the relevant materials on trading seats, securities account and fund account.

Where an insurance company entrusts an insurance asset management company to engage in stock investment, it shall, within 10 days
after completing the relevant procedures for stock investment, submit to the CIRC the entrustment agreement, the formal trusteeship
agreement, the guide on investment, the benchmark for evaluating investment performance, as well as the relevant materials on trading
seats, securities account and fund account.

In case that the contents prescribed in the preceding two paragraphs are modified, the insurance company shall report it to the CIRC
within 5 days after completing the modification procedures.

The insurance company shall submit copies of the relevant materials on trading seats, securities account and fund account to the CSRC
simultaneously.

Chapter III Investment Scope and Proportions

Article 11

The stock investment of an insurance institutional investor shall be limited to the following varieties:

(1)

Ordinary RMB stocks;

(2)

Convertible company bonds; and

(3)

Other investment varieties prescribed by the CIRC.

Ordinary RMB stocks mentioned in Item (1) of the preceding paragraph shall mean the stocks that are issued publicly in territory of
China and circulate on the market, and subscribed and traded in RMB.

Article 12

The stock investment of an insurance institutional investor may be conducted by the following means:

(1)

To be subscribed on primary market, including distribution based on market value, subscription either on or off the network, participation
in distribution in the identity of a strategic investor, and etc.;

(2)

To be traded on secondary market.

Article 13

The stocks of one listed company which are held by an insurance institutional investor shall be less than 30% of the ordinary RMB
stocks of the listed company.

The concrete proportion of the investment stocks held by an insurance institutional investor shall be separately prescribed by the
CIRC.

An insurance asset management company may not use its own funds in stock investment.

Article 14

An insurance institutional investor may not invest in ordinary RMB stocks of the following types:

(1)

Those which are under “special penalty” or “warnings on special penalty due to risks on termination of the listing” imposed by the
stock exchange, or have been terminated by the stock exchange to be on listing;

(2)

The rise of price of the stocks during the past 12 months exceeds 100%;

(3)

The stocks are suspected of being manipulated by others;

(4)

Its listed company has been has issued with opinions on refusal to comment or reservation opinions on the financial statements of
the listed company by an accounting company in the latest year;

(5)

Its listed company has disclosed that its performance has gone down by a big margin, and it is in heavy loss or will be in heavy loss
in the future;

(6)

Its listed company has disclosed that it is investigated by the supervisory department or has been severely punished by the supervisory
department within the latest year; or

(7)

Other types of stocks prescribed by the CIRC.

Article 15

The balance of the investment by an insurance institutional investor in convertible company bonds shall be calculated into the investment
balance of the enterprise bonds, and shall accord with the relevant provisions of the “Interim Measures for the Administration for
Insurance Companies to Invest in Enterprise Bonds”.

Where an insurance company converts the convertible company bonds held by it into stocks, such bonds shall be calculated into the
investment balance of the ordinary RMB stocks at cost price, and shall accord with the relevant provisions of the CIRC on the proportion
of stock investment.

Article 16

In an investment account set up by an insurance institutional investor for investment-linked insurance, the proportion of investment
stocks may be 100%.

In an investment account set up by an insurance institutional investor for omnipotent life insurance, the proportion of investment
stocks may not exceed 80%.

In an independent account set up by an insurance institutional investor for other insurance products, the proportion of investment
stocks may not exceed the relevant rate prescribed by the CIRC.

In an independent account set up by an insurance institutional investor for the insurance products mentioned above, the proportion
of investment stocks may not exceed the promissory proportion in the insurance clauses.

Chapter IV Trusteeship of Assets

Article 17

To select a stock asset trustee; an insurance company shall select a commercial bank or other professional financial institution which
meets the conditions prescribed in the “Guide to Stock Asset Trusteeship for Insurance Companies”.

Article 18

The stock asset trustee of an insurance company shall perform the following obligations:

(1)

Safely keeping custody of the insurance company’s funds and stock assets;

(2)

Handling matters of settlement and transaction in time in accordance of the orders of the insurance company or the insurance asset
management company;

(3)

Supervising the investment operation of the insurance company or the insurance asset management company;

(4)

Valuating the stock assets entrusted by the insurance company;

(5)

Periodically providing reports on stock asset trusteeship to the insurance company or the insurance asset management company;

(6)

Upon the supervisory requirements of the CIRC, submitting to the CIRC the relevant data on the stock assets and providing periodically
or a periodically intervals reports on risk evaluation and performance evaluation of the stock assets, etc.;

(7)

Keeping completely the records, account books, statements on stock asset trusteeship as well as other relevant documents. The relevant
important documents such as vouchers, trading records, contracts, etc. on custody of the stock assets shall be kept for not less
than 15 years; and

(8)

Other obligations prescribed by the CIRC.

Article 19

The stock asset trustee of an insurance company must strictly separate its own assets from the stock assets under its management upon
entrustment, and must set up relevant accounts for different insurance companies for the sake of separate management.

Article 20

The stock asset trustee of an insurance company may not have the following acts:

(1)

Mixing its own assets with the stock assets entrusted by the insurance company to manage;

(2)

Mixing other assets under its trusteeship with the stock assets entrusted by the insurance company to manage;

(3)

Mixing stock assets of different insurance companies under its trusteeship to manage;

(4)

Peculating stock assets entrusted by the insurance company;

(5)

Taking advantage of stock assets entrusted by the insurance company and other relevant information to seek benefits for itself or
for a third person;

(6)

Violating laws, administrative regulations, relevant provisions of the state or the trusteeship agreement; or

(7)

Other acts prohibited by the CIRC.

Article 21

An insurance company shall conclude a trusteeship agreement with the stock asset trustee. The trusteeship agreement must set forth
the following content:

(1)

Obligations of the stock asset trustee as prescribed in Article 18 , Article 19 and Article 20 of the present Measures;

(2)

Where the stock asset trustee violates the obligations in Item (1) of the Article and the CIRC requires the insurance company to change
the stock asset trustee, the insurance company shall have the right to terminate the trusteeship agreement in advance.

Article 22

Where a stock asset trustee is lawfully disbanded, revoked, or runs into bankruptcy, the stock assets of the insurance company entrusted
to it shall not be listed as assets for liquidation.

Chapter V Prohibited Acts of Insurance Institutional Investors

Article 23

The scope and the proportion of stock investments of insurance institutional investors may not exceed the relevant provisions of the
CIRC.

Article 24

In respect of decision-making, research, trading and settlement concerning stock investments, none of the management staff and other
relevant persons of an insurance institutional investor may engage in insider trading.

Insider trading mentioned in the preceding paragraph shall be cognized according to “Securities Law of the People’s Republic of China”
and “Interim Measures for Prohibiting Securities Frauds”.

Article 25

An insurance institutional investor engaging in stock investment may not commit any of the following acts:

(1)

Transferring profits between securities accounts for insurance funds of different natures;

(2)

Buying stocks through financing by illegal means; or

(3)

Other acts prescribed by the CIRC.

Article 26

The insurance institutional investor may not obtain inappropriate benefits or transfer risks by the following means:

(1)

Centralizing advantages of funds or share holding either alone or by conspiracy, or utilizing information advantage to trade united
or continuously, so as to manipulate securities trading prices;

(2)

Colluding with others to trade in securities pursuant to the time, price and method agreed upon in advance, or to trade in securities
held by neither of them, so as to affect the securities trading price or the securities trading amount;

(3)

Trading with itself without transferring the ownership, so as to affect the securities trading price or securities trading amount;
or

(4)

Manipulating securities trading prices in other methods.

Article 27

Where a listed company holds either directly or indirectly not less than 10% of the shares of an insurance institutional investor,
the insurance institutional investor may not invest in the stocks of the listed company or any of its associated companies.

Article 28

No insurance institutional investors, stock asset trustees, securities operation institutions or other securities intermediary institutions
may fabricate false trading records, financial information or other materials.

Article 29

An insurance company investing in stocks may not entrust any institution other than insurance asset management companies except ones
prescribed by the CIRC.

Chapter VI Risk Control

Article 30

An insurance institutional investor shall have the ideology of long-term investment and value investment, optimize the allocation
of assets and disperse the risks of investment.

Article 31

The insurance institutional investor shall, in accordance with the “Guide to Risk Control on Utilization of Insurance Funds”, found
a well developed risk control system of stock investment.

Article 32

The risk control system of stock investment of an insurance institutional investor shall at least include the following content:

(1)

The process of investment decision making;

(2)

The system of investment authorization;

(3)

The study report system;

(4)

The system of stock scope selection;

(5)

Index systems of risk assessment and performance appraisal;

(6)

The criteria on vocational ethics; and

(7)

The mechanism for dealing with major incidents.

Where an insurance company entrusts an insurance asset management company to engage in stock investment, its risk control system of
stock investment shall at least include the stock trusteeship system in addition.

Where an insurance company directly engages in stock investment, its risk control system of stock investment shall at least include
the stock trusteeship system, the stock trading management system and the information management system in addition.

The risk control system of stock investment of an insurance asset management company shall at least include the stock trading management
system and the information management system in addition.

Article 33

When investing in stocks, an insurance institutional investor must work out a written study report before making the following important
decisions:

(1)

A single-item – investment fund is to exceed the amount determined by the insurance institutional investor;

(2)

Not less than 5% of the investable stock assets are to be involved;

(3)

The investment portfolio or investment direction needs to be adjusted greatly;

(4)

The standard for selecting the scope of stocks needs to be adjusted greatly; or

(5)

The degree of stock investment risk tolerance needs to be adjusted greatly.

Article 34

When determining the scope of investable stocks, an insurance institutional investor shall consider various indexes of the listed
company such as governance structure, earning capacity, information transparency, stock liquidity and etc.

The insurance institutional investor must invest in stocks within the scope of investable stocks.

Article 35

Before investment, an insurance institutional investor shall determine the benchmark for evaluating stock investment performance by
taking the indexes of excellent-performance stocks, blue chips and shares of high liquidity into account for reference.

The benchmark for evaluating stock investment performance of the insurance industry shall be separately prescribed by the CIRC.

Article 36

When making use of the following funds, an insurance institutional investor shall separately open a securities account and a fund
account for separate accounting:

(1)

Funds for traditional insurance products;

(2)

Funds for participating insurance products;

(3)

Funds for universal insurance products;

(4)

Funds for investment-linked insurance products; or

(5)

Funds for insurance products required by the CIRC to be accounted independently.

Article 37

The insurance asset management companies and the insurance companies directly engaging in stock investment shall trade in stocks through
independent seats. The administrative measures for independent seats of stock trading shall be separately formulated.

Article 38

The stock investment trading orders of either an insurance asset management company or an insurance company directly engaging in stock
investment shall be carried out responsibly by the independent trading department and full-time trading staff.

Article 39

The insurance asset management companies and the insurance companies directly engaging in stock investment shall establish information
management systems on firewall, on-post duties, access, security and prevention, etc.

Article 40

The insurance asset management companies and the insurance companies directly engaging in stock investment shall regulate the operating
programs of stock trading systems such as computer room establishments, communication equipments, computer equipments, operating
system software, database software, etc.

Article 41

Where an insurance institutional investor selects the seat of a securities operation institution to trade in stock, this securities
operation institution shall meet the following conditions:

(1)

It is in good financial condition and steady business operation, and its net capital is not less than 1 billion Yuan;

(2)

It has well developed internal control system;

(3)

The settlement funds of client trading are fully deposited in a commercial bank with the qualification for engaging in deposition
and custody of securities trading settlement funds;

(4)

It has set up two separate accounts in China Securities Depository Clearing Co., Ltd., one for self-operation settlement of reserve
account, the other for client settlement of reserve account;

(5)

It sets up seats separately for self-operated business and non-self-operated business in the stock exchanges of Shanghai and Shenzhen;

(6)

The communication conditions and trading facilities are high efficient and secure, which can meet the requirements of stock trading,
and the information service is all-sided;

(7)

It has the capability for securities market research and is able to provide consulting service in time;

(8)

In the latest 3 years, it has no records on major violation of laws or rules. And it has not been punished by the CSRC or is not in
the process of investigation under a case filed;

(9)

It has no ill records on honesty and credibility, and has no actions of occupying or peculating the guarantee money and securities
of client in the latest year;

(10)

It has promised in written form to accept the inspection of CIRC on the stock trading of the insurance institutional investor and
truthfully provides the CIRC with various stock trading information of the insurance institutional investor;

(11)

Its local business departments has normative management, good operation and complete service functions; and

(12)

Other conditions prescribed by the CIRC.

Article 42

Where an insurance institutional investor selects the seat of a business department of a securities operation institution to trade
in stock investment, it shall conclude a relevant agreement with the head office. The agreement shall set forth the obligations of
the securities operation institution as prescribed in Item (10) of Article 41 of the present Measures. If the securities operation
institution violates the said obligations and the CIRC requires the insurance institutional investor to change the securities operation
institution, the insurance institutional investor shall have right to terminate the agreement in advance. The insurance institutional
investor shall submit a copy of the agreement to the CIRC within 5 days as of concluding the agreement prescribed in the preceding
paragraph.

Article 43

Before the opening of each day, the insurance asset management companies and the insurance companies directly engaging in stock investment
shall check the balance of securities and that of funds with the stock asset trustees so as to guarantee the said balances to be
enough for settlement.

Article 44

Where the stocks held by an insurance institutional investor are under any of the circumstances prescribed in Article 14 of the present
Measures, the insurance institutional investor shall formulate idiographic solutions.

Article 45

Where the operational situation of an insurance company is changed and no longer meets the conditions prescribed in the present Measures,
the insurance company shall not add stocks and shall lower the stock investment proportion according to the time limit, methods and
other requirements prescribed by the CIRC.

Article 46

An insurance institutional investor shall reveal the situation of stock investment risks by adopting risk value and other risk measurement
indexes.

Article 47

The transfer of funds and the payment of expense between an insurance company and an insurance asset management company; a stock asset
trustee or a securities operation institution must be in a method of transfer between accounts.

Article 48

The senior manager of an insurance institutional investor, who is in charge of stock investment, shall meet the following conditions:

(1)

He has the academic qualification of university graduate or above;

(2)

He has worked and experienced not less than 5 years in the field of securities or finance;

(3)

He knows well the operation of securities investment and has necessary financial and legal knowledge; and

(4)

Other conditions prescribed by the CIRC.

Article 49

The senior manager of an insurance institutional investor must, when making decisions on stock investment, strictly comply with the
purview of power prescribed in the company’s internal management system and risk control system. It is strictly prohibited to make
investment or make decisions outside the purview of power.

Article 50

The operating personnel in an insurance institutional investor, who engages in stock investment, shall meet the following conditions:

(1)

He has the academic qualification of university graduate or above;

(2)

He has worked and experienced not less than 3 years in the field of securities or finance;

(3)

He knows well the securities business rules and operational procedures; and

(4)

Other conditions prescribed by the CIRC.

The operating personnel mentioned in the preceding paragraph shall refer to the director and the persons who operate the stock investment
business.

Article 51

In an insurance asset management company or in an insurance company directly engaging in stock investment, the number of operating
personnel engaging in stock investment shall fit in with the scale of stock investment, and the company concerned shall have a suitable
number of researchers in the fields of macro-economics, industrial analysis, financial engineering and etc.

In case the stock assets in use amount to 100 million Yuan or more in an insurance asset management company or in an insurance company
directly engaging in stock investment, there shall not be less than 5 major operating personnel engaging in stock investment.

Article 52

A person under any of the following circumstances may not act as a senior manager in charge of stock investment business or major
operating personnel in an insurance institutional investor:

(1)

He has been sentenced to criminal punishments due to the crime of embezzlement, bribery, malicious occupation of properties, misappropriation
of properties, or destruction of socialist economic order, etc.;

(2)

He has been imposed upon administrative penalties or sentenced to criminal punishments due to such illegal actions as gambling, taking
drugs, visiting prostitutes,

ORGANIC LAW OF THE LOCAL PEOPLE’S CONGRESSES AND LOCAL PEOPLE’S GOVERNMENTS OF THE PEOPLE’S REPUBLIC OF CHINA

Organic Law of the Local People’s Congresses and Local People’s Governments of the People’s Republic of China






(Adopted at the Second Session of the Fifth National People’s Congress on July 1, 1979, promulgated by Order No.1
of the Chairman of the Standing Committee of the National People’s Congress on July 4, 1979 and effective as of January 1, 1980;
amended for the first time in accordance with the Resolution on Revising Certain Provisions of the Organic Law of the Local People’s
Congresses and Local People’s Governments of the People’s Republic of China, adopted at the Fifth Session of the Fifth National People’s
Congress on December 10, 1982; amended for the second time in accordance with the Decision on Revising the Organic Law of the Local
People’s Congresses and Local People’s Governments of the People’s Republic of China, adopted at the 18th Meeting of the Standing
Committee of the Sixth National People’s Congress on December 2, 1986; amended for the third time in accordance with the Decision
on Revising the Organic Law of the Local People’s Congresses and Local People’s Governments of the People’s Republic of China, adopted
at the 12th Meeting of the Standing Committee of the Eighth National People’s Congress on February 28,1995; and amended for the fourth
time in accordance with the Decision on Amending the Organic Law of the Local People’s Congresses and Local People’s Governments
of the People’s Republic of China adopted at 12th Meeting of the Standing Committee of the Tenth National People’s Congress on October
27, 2004) 

Contents 

Chapter I   General Provisions 

Chapter II  Local People’s Congresses at Various Levels 

Chapter III The Standing Committees of Local People’s Congresses at and Above the County Level  

Chapter IV  Local People’s Governments at Various Levels  

Chapter V   Supplementary Provisions 

Chapter I 

General Provisions 

Article 1  People’s congresses and people’s governments shall be established in provinces, autonomous regions, municipalities
directly under the Central Government, autonomous prefectures, counties, autonomous counties, cities, municipal districts, townships,
nationality townships, and towns. 

Article 2  Standing committees shall be established by local people’s congresses at and above the county level. 

Article 3  The organs of self-government of autonomous regions, autonomous prefectures and autonomous counties shall, in addition
to exercising the functions and powers specified in this Law, exercise the power of autonomy within the limits of their authority
as prescribed by the Constitution, the Law on Regional National Autonomy and other laws. 

 

Chapter II 

Local People’s Congresses at Various Levels 

Article 4  Local people’s congresses at various levels shall be local organs of State power. 

Article 5  Deputies to the people’s congresses of provinces, autonomous regions, municipalities directly under the Central Government,
autonomous prefectures and cities divided into districts shall be elected by the people’s congresses at the next lower level; deputies
to the people’s congresses of counties, autonomous counties, cities not divided into districts, municipal districts, townships, nationality
townships, and towns shall be elected directly by their constituencies. 

The number of deputies to the local people’s congresses at various levels and the manner of their election shall be prescribed by
the electoral law. There shall be an appropriate number of deputies elected from the minority nationalities in each administrative
area. 

Article 6  The term of office of the local people’s congresses at various levels shall be five years.      

Article 7  The people’s congresses of provinces, autonomous regions, and municipalities directly under the Central Government
may, in the light of the specific conditions and actual needs of their respective administrative areas, formulate and promulgate
local regulations, which must not contravene the Constitution and other laws, as well as administrative regulations; they shall report
such local regulations to the Standing Committee of the National People’s Congress and the State Council for the record. 

The people’s congresses of cities where provincial and autonomous regional people’s governments are located and the people’s congresses
of relatively large cities with the approval of the State Council may, in the light of the specific conditions and actual needs of
their respective cities, formulate local regulations, which must not contravene the Constitution and other laws, administrative regulations,
and the local regulations of their respective provinces and autonomous regions; they shall report such local regulations to the standing
committees of the people’s congresses of the respective provinces and autonomous regions for approval before implementation and for
submission to the Standing Committee of the National People’s Congress and the State Council for the record. 

Article 8  Local people’s congresses at and above the county level shall exercise the following functions and powers:  

(1) to ensure the observance and execution, in their respective administrative areas, of the Constitution and other laws, administrative
regulations and the resolutions of the people’s congresses and their standing committees at higher levels, and to ensure the implementation
of the State plan and the State budget; 

(2) to examine and approve the plans for national economic and social development and budgets of their respective administrative
areas and the reports on the implementation of such plans and budgets;  

(3) to discuss and decide on major issues in political, economic, educational, scientific and cultural affairs, public health, protection
of the environment and natural resources, and civil and nationality affairs, in their respective administrative areas; 

(4) to elect the members of their respective standing committees; 

(5) to elect governors and deputy governors, chairmen and vice-chairmen of autonomous regions, mayors and deputy mayors, prefects
and deputy prefects, and heads and deputy heads of counties and districts; 

(6) to elect the presidents of the people’s courts and the chief procurators of the people’s procuratorates at the corresponding
levels; the election of the chief procurator of a people’s procuratorate shall be reported to the chief procurator of the people’s
procuratorate at the next higher level, who shall submit it to the standing committee of the people’s congress at that same level
for approval; 

(7) to elect deputies to the people’s congresses at the next higher level; 

(8) to hear and examine reports on the work of the standing committees of the people’s congresses at the corresponding levels; 

(9) to hear and examine reports on the work of the people’s governments, the people’s courts and the people’s procuratorates at the
corresponding levels; 

(10) to alter or annul inappropriate resolutions of the standing committees of the people’s congresses at the corresponding levels; 

(11) to annul inappropriate decisions and orders of the people’s governments at the corresponding levels; 

(12) to protect the socialist property owned by the whole people, property owned collectively by working people and citizens’ legitimate
private property, maintain public order and safeguard citizens’ rights of the person and their democratic and other rights; 

(13) to protect the legitimate rights and interests of various economic organizations; 

(14) to safeguard the rights of minority nationalities; and  

(15) to safeguard women’s rights as endowed by the Constitution and other laws, such as equality with men, equal pay for equal work
and freedom of marriage. 

Article 9  The people’s congresses of townships, nationality townships, and towns shall exercise the following functions and
powers: 

(1) to ensure the observance and execution, in their respective administrative areas, of the Constitution, other law, administrative
regulations, and the resolutions of the people’s congresses and their standing committees at higher levels; 

(2) to adopt and promulgate resolutions within the scope of their functions and powers;  

(3) to decide, in accordance with State plans, on plans for the development of the economy, cultural affairs and public services
in their respective administrative areas; 

(4) to examine and approve the budgets of their respective administrative areas as well as the reports on the implementation of the
budgets; 

(5) to decide on plans for civil affairs in their respective administrative areas; 

(6) to elect the chairman and vice-chairmen of the people’s congress at the corresponding level; 

(7) to elect heads and deputy heads of townships and towns; 

(8) to hear and examine reports on the work of the people’s governments of townships, nationality townships, and towns; 

(9) to annul inappropriate decisions and orders of the people’s governments of townships, nationality townships, and towns; 

(10) to protect the socialist property owned by the whole people, property owned collectively by working people and citizens’ legitimate
private property, to maintain public order and safeguard citizens’ rights of the person and their democratic and other rights; 

(11) to protect the legitimate rights and interests of various economic organizations; 

(12) to safeguard the rights of minority nationalities; and 

(13) to safeguard women’s rights as endowed by the Constitution and other laws, such as equality with men, equal pay for equal work
and freedom of marriage. 

In exercising their functions and powers, the people’s congresses of townships, nationality townships, and towns in which minority
nationalities live in concentrated communities shall adopt specific measures appropriate to the characteristics of the nationalities
concerned. 

Article 10  Local people’s congresses at various levels shall have the power to remove from office members of the people’s governments
at the corresponding levels. Local people’s congresses at or above the county level shall have the power to remove from office members
of their standing committees and the presidents of the people’s courts and the chief procurators of the people’s procuratorates elected
by those standing committees. The removal of the chief procurator of a people’s procuratorate shall be reported to the chief procurator
of the people’s procuratorate at the next higher level, who shall submit the matter to the standing committee of the people’s congress
at that same level for approval. 

Article 11  Local people’s congresses at various levels shall meet in session at least once a year. 

A session of a local people’s congress may be convened at any time upon the proposal of one-fifth of its deputies. 

Article 12  Sessions of local people’s congresses at or above the county level shall be convened by their standing committees. 

Article 13  A preliminary meeting shall be held for each session of a local people’s congress at or above the county level to
elect the presidium and secretary-general of that session, adopt the agenda for the session and decide on other preparations. 

The preliminary meeting shall be presided over by the standing committee of the people’s congress. The preliminary meeting for the
first session of a people’s congress shall be presided over by the standing committee of the preceding people’s congress at the corresponding
level. 

When a local people’s congress at or above the county level meets, its session shall be conducted by the presidium. 

When a local people’s congress at or above the county level meets, it shall propose a number of deputy secretaries-general; the choice
of deputy secretaries-general shall be decided by the presidium. 

Article 14  The people’s congress of a township, nationality township or town shall have a chairman, and may have one or two
vice-chairmen. The chairman and vice-chairmen shall be elected from among the deputies to the people’s congress at the corresponding
level, and their term of office shall be the same as that of each people’s congress at that level. 

The chairman or vice-chairmen of the people’s congress of a township, nationality township or town shall not concurrently hold office
in an administrative organ of the State; if they hold office in an administrative organ of the State, they must resign from the post
of the chairman or vice-chairman of the people’s congress at that level. 

The chairman or vice-chairmen of the people’s congress of a township, nationality township or town shall, during the period when
the people’s congress at the corresponding level is not in session, be responsible for keeping in touch with the deputies to the
people’s congress at that level, organizing the deputies to conduct activities, and conveying the suggestions, criticisms and opinions
of the deputies and the masses regarding the work of the people’s government at the same level. 

Article 15  When the people’s congress of a township, nationality township, or town holds a session, it shall elect a presidium,
which shall preside over the session and be responsible for convening the next session of that people’s congress. The chairman and
vice-chairmen of the people’s congress of a township, nationality township or town shall be the members of the presidium. The chairman
and vice-chairmen of the people’s congress of a township, nationality township or town shall be the members of the presidium. 

Article 16  The first session of each local people’s congress at any level shall be convened, within two months after the election
of its deputies, by the standing committee of the preceding people’s congress at the corresponding level or by the presidium of the
preceding session of the people’s congress of the township, nationality township, or town.  

Article 17  Members of the local people’s governments at or above the county level, the presidents of the people’s courts, the
chief procurators of the people’s procuratorates, and the leading persons of the people’s governments at the township level shall
attend sessions of the people’s congresses at the corresponding levels as nonvoting delegates; leading members of the other relevant
government departments and public organizations at or above the county level may, by decision of the standing committees of the people’s
congresses at the corresponding levels, attend sessions of the people’s congresses at the corresponding levels as nonvoting delegates. 

Article 18  When a local people’s congress holds its sessions, its presidium, standing committee and special committees and
the people’s government at the corresponding level may submit bills and proposals to that people’s congress within the scope of its
functions and powers. The presidium shall decide to refer such bills and proposals to a session of the people’s congress for deliberation,
or to simultaneously refer them to relevant special committees for deliberation and reports before the presidium decides, upon examination
of such reports, to submit them to the people’s congress for a vote. 

Ten or more deputies to a local people’s congress at or above the county level, or five or more deputies to the people’s congress
of a township, nationality township, or town may jointly submit a bill or proposal to the people’s congress at the corresponding
level within the scope of its functions and powers. The presidium shall decide whether to place the bill or proposal on the agenda
of the people’s congress or to first refer it to a relevant special committee for deliberation and a recommendation on whether to
place it on the agenda before the presidium makes such a decision. 

With agreement of the presidium, deliberation shall be terminated on a bill or proposal placed on the agenda of a session, if the
party that submitted the bill or proposal requests its withdrawal before it is referred to the congress for a vote. 

Article 19  Suggestions, criticisms and complaints on any aspect of work put forward by deputies to a local people’s congress
at or above the county level to that people’s congress and its standing committee shall be referred by the administrative office
of the standing committee to the departments and organizations concerned for consideration, disposition and reply. 

Suggestions, criticisms and complaints on any aspect of work put forward by deputies to the people’s congress of a township, nationality
township, or town to that people’s congress shall be referred by its presidium to the departments and organizations concerned for
consideration, disposition and reply. 

Article 20  When a local people’s congress conducts an election or adopts a resolution, a majority vote of all the deputies
shall be required. 

Article 21  Members of the standing committee of local people’s congresses at or above the county level, choices for chairmen
and vice-chairmen of the people’s congresses of townships, nationality townships or towns, governors and deputy governors, chairmen
and vice-chairmen of autonomous regions, mayors and deputy mayors, heads and deputy heads of prefectures, heads and deputy heads
of counties, districts, townships and towns, presidents of the people’s courts and chief procurators of the eople’s procuratorates
shall be nominated by the presidiums of the people’s congresses at the corresponding levels or jointly nominated by deputies in accordance
with the provisions of this Law. 

Thirty or more deputies to the people’s congress of a province, autonomous regions, or a municipality directly under the Central
Government, or twenty or more deputies to the people’s congress of a city divided into districts or of an autonomous prefecture,
or ten or more deputies to the people’s congress at the county level may nominate, with joint signatures, the candidates for members
of the standing committee of the people’s congress at the corresponding level, leading persons of the people’s government, the president
of the people’s court and the chief procurator of the people’s procuratorate at the same level. Ten or more deputies to the people’s
congress of a township, nationality township or town may nominate, with joint signatures, candidates for the chairman and vice-chairmen
of the people’s congress at the corresponding level and leading persons of the people’s government at the same level. Deputies elected
from different electoral districts or electoral units may deliberate on and jointly nominate candidates. 

The number of candidates nominated by a presidium or jointly nominated by each deputy together with other deputies shall not exceed
the number of persons to be elected. 

Nominators shall make a trustful introduction of their nominees. 

Article 22  In elections for chairmen and secretaries-general of the standing committees of the people’s congresses, chairmen
of the people’s congresses of townships, nationality townships or towns, heads of people’s governments, presidents of the people’s
courts and chief procurators of the people’s procuratorates, there shall generally be one more candidate than the number of persons
to be elected, and a competitive election shall be conducted. If only one candidate is nominated, a non-competitive election may
be conducted. In elections for vice-chairmen of the standing committees of the people’s congresses, deputy chairmen of the people’s
congresses of townships, nationality townships or towns, and deputy heads of the people’s governments, there shall be one to three
more candidates than the number of persons to be elected; in elections for members of the standing committees of the people’s congresses,
there shall be one-tenth to one-fifth more candidates than the number of persons to be elected. The specific differential number
shall be prescribed by the people’s congresses at the corresponding levels in the electoral measures on the basis of the number of
persons to be elected. And the competitive election shall be conducted. If the number of candidates nominated is the same as the
differential number prescribed in the electoral measures, the presidium of a people’s congress shall submit the list of candidates
to the deputies for deliberation and discussion, before election is conducted. If the number of candidates nominated exceeds the
differential number prescribed in the electoral measures, a preliminary election shall be conducted after the deputies deliberate
and discuss the list of candidates submitted by the presidium, and an official list of candidates shall, in accordance with the differential
number prescribed in the electoral measures, be determined by order of the votes that the candidates obtain in the preliminary election,
and then election shall be conducted. 

When leading persons of State organs at the corresponding levels are to be elected by local people’s congresses at or above the county
level, the time for nomination and consideration of candidates shall be not less than two days. 

Article 23  Elections shall be conducted by secret ballot. The deputies may vote for or against any of the candidates that have
been determined, or may instead elect any other deputies or voters or abstain from voting. 

Article 24  In elections for leading persons of State organs conducted by local people’s congresses at the corresponding levels,
when the number of candidates who obtain more than half of the votes exceeds the number of leading persons to be elected, those who
obtain more votes shall be elected. If the number of votes for some candidates is tied, thus making it impossible to determine the
elected, another balloting shall be conducted for those candidates to resolve the tie, and those who obtain more votes shall be elected. 

If the number of the elected persons who obtain more than half of the votes is less than the number of persons needed to be elected,
another election shall be held to make up the difference, the candidates for another election may be determined by order of the votes
they obtain in the first balloting, or may be nominated and determined in accordance with the procedures provided by this Law. Another
election for making up the difference may be held at the current session or the next session of the people’s congress upon decision
by the people’s congress at the corresponding level. 

When another election is held to elect the vice-chairmen and members of the standing committee of a people’s congress, the vice-chairmen
of the people’s congress of a township, nationality township or town, and the deputy heads of a people’s government, competitive
election shall be conducted after the differential number is determined in accordance with the provisions in the first paragraph
of Article 22 of this Law. 

Article 25  When by-elections are held by the local people’s congresses at various levels for chairmen, vice-chairmen, secretaries-general
and members of their standing committees, chairmen, and vice-chairmen of the people’s congresses of townships, nationality townships
or towns, governors, deputy governors, chairmen and vice-chairmen of autonomous regions, mayors, deputy mayors, prefects, deputy
prefects, heads and deputy heads of counties, districts, townships and towns, presidents of people’s courts, and chief procurators
of people’s procuratorates, the number of candidates may exceed or equal the number of vacancies, and the election procedures and
methods shall be decided by the people’s congresses at the corresponding levels. 

Article 26  When a local people’s congress at or above the county level is in session, its presidium, its standing committee,
or a joint group of at least one tenth of its deputies may submit a proposal to remove from office members of its standing committee
or members of the people’s government, the president of the people’s court or the chief procurator of the people’s procuratorate
at the corresponding level; the presidium shall refer such proposals to the congress for deliberation. 

When the people’s congress of a township, nationality township or town is in session, the presidium or a group of at least one-fifth
of the deputies may submit a proposal to remove from office the chairman or vice-chairmen of the people’s congress, the head or deputy
heads of the township or town; the presidium shall refer the proposal to the congress for deliberation. 

In a proposal for removal from office, reasons for the removal shall clearly be stated. 

Persons proposed to be removed from office shall have the right to defend themselves at a meeting of the presidium or at the plenary
meeting of a session, or to submit their written defence. The defence made at the meeting of the presidium or the written defence
shall be printed and distributed to participants of the session by the presidium. 

The proposal for removal from office submitted to a local people’s congress at or above the county level shall, after being distributed
by the presidium to the participants for deliberation , be submitted to the plenary meeting of the session for voting; or the presidium
shall, subject to decision of the plenary meeting of the session, propose to organize an investigation committee, and the proposal
for removal from office shall be deliberated and decided at the next session of the people’s congress at the corresponding level
on the basis of the report prepared by the investigation committee. 

Article 27  A component member of the standing committee of a local people’s congress at or above the county level, a leading
person of a local people’s government, the president of a people’s court or the chief procurator of a people’s procuratorate at or
above the county level may submit the resignation to the people’s congress at the corresponding level, which shall decide whether
or not to accept the resignation; if the people’s congress is not in session, such resignations may be submitted to its standing
committee, which shall decide whether or not to accept the resignations. If the standing committee decides to accept a resignation,
it shall report it to its people’s congress for the record. A resignation of the chief procurator of a people’s procuratorate must
be reported to the chief procurator of the people’s procuratorate at the next higher level, who shall refer it to the standing committee
of the people’s congress at the corresponding level for approval. 

The chairman or vice-chairman of the people’s congress of a township, nationality township or town, the head or deputy head of a
township or town may submit his resignation to the people’s congress at the corresponding level, which shall decide whether or not
to accept the resignation.” 

Article 28  When a local people’s congress at any level is in session, a group of at least ten of the deputies may submit a
written proposal for addressing questions to the people’s government or any of its departments, the people’s court or the people’s
procuratorate at the corresponding level. In the proposal shall clearly be stated to whom the questions are addressed and the specific
questions themselves. 

The presidium shall decide whether to refer the proposal to the organ addressed for an oral reply at the meeting of the presidium,
or at the plenary meeting of a session, or at the meeting of a relevant special committee, or for a written reply. Where a reply
is made at a meeting of the presidium or of the special committee, the deputies who submit the proposal shall have the right to attend
the meeting as nonvoting delegates and express their opinions; when the presidium considers it necessary, it may have the report
on the reply printed and distributed to the session. 

If the reply is to be made orally, the leading person of the organ addressed shall be present at the meeting to give the reply; if
the reply is to be made in writing, it shall be signed by the leading person of the organ addressed, and the presidium shall have
it printed and distributed to the session or to the deputies who address the questions. 

Article 29  When a local people’s congress at any level examines a bill or proposal, its deputies may address questions to the
local state organs concerned, which shall send their personnel to the congress to give explanations. 

Article 30  The people’s congresses of provinces, autonomous regions, municipalities directly under the Central Government,
autonomous prefectures and cities divided into districts may, where necessary, establish special committees such as legislative (political
and law) committees, finance and economic committees, and education, science, culture and public health committees. The special committees
shall work under the direction of the respective people’s congresses; when the people’s congresses are not in session, they shall
work under the direction of the standing committees of the people’s congresses. 

Nominations for the chairman, vice-chairmen and members of a special committee shall be made by the presidium from among the deputies
and approved by the people’s congress. When the people’s congress is not in session, its standing committee may appoint and remove
individual vice-chairmen and some members of the special committee through nomination by its council of chairmen and approval by
a meeting of the standing committee. 

The special committees shall discuss, examine and draw up relevant bills and draft resolutions under the direction of the people’s
congresses and their standing committees at the corresponding levels; they shall make investigations and studies of, and put forward
proposals on, matters related to those committees and within the scope of functions and powers of the respective people’s congresses
and their standing committees. 

Article 31  A local people’s congress at or above the county level may appoint an investigation committee on specific questions. 

The presidium or a group of at least one-tenth of the deputies may submit to the session of the people’s congress a proposal for
organizing an investigation committee on specific questions, which shall be submitted by the presidium to the plenary meeting for
decision. 

An investigation committee shall be composed of a chairman, vice-chairmen and m

NOTICE OF THE PEOPLE’S BANK OF CHINA ON PRINTING AND DISTRIBUTING THE PROVISIONS ON THE MANAGEMENT OF FOREIGN EXCHANGE DEPOSIT RESERVE OF FINANCIAL INSTITUTIONS

the People’s Bank of China

Notice of the People’s Bank of China on Printing and Distributing the Provisions on the Management of Foreign Exchange Deposit Reserve
of Financial Institutions

No.252 [2004] of the People’s Bank of China

All the branches and business management departments of the People’s Bank of China, the central sub-branches of the People’s Bank
of China in the capital cities of all the provinces, the solely state-owned commercial banks, and the joint stock commercial banks:

For the purpose of strengthening the management on foreign exchange deposit reserve, bringing into full play the role of it and promoting
the stable management of financial institutions, the People’s Bank of China has formulated the Provisions on the Management of Foreign
Exchange Deposit Reserve of Financial Institutions (hereinafter referred to as the Provisions) according to Law of the People’s Bank
of China of the People’s Republic of China , the Law of the Commercial Bank of the People’s Republic of China and other laws and
regulations. The Provisions are hereby printed and distributed to you. Please implement them accordingly and relevant issues are
noticed as follows:

I.

The rate of deposit reserve

The rates of foreign exchange deposit reserve of financial institutions shall be 3% uniformly after adjustment as of the date of January
15, 2005.

II.

Ways of Deposit

1.

The Deposit Voucher of Foreign Exchange Deposit Reserve (For the format, please read Annex 2) shall be submitted to the business management
department of the People’s Bank of China by the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank
of China, the Construction Bank of China, the CITIC Industrial Bank, China Everbright Bank, Huaxia Bank, and China Minsheng Banking
Corp. Ltd.. In case the Voucher is up to the standard after being examined by the business management department of the People’s
Bank of China, the aforesaid banks shall go through formalities for transferring money to the business management department of the
People’s Bank of China.

2.

The Deposit Voucher of Foreign Exchange Deposit Reserve shall be submitted to the branches and sub-branches of the People’s Bank of
China at the locality of their juridical persons by the Bank of Communications, Guangdong Development Bank, Shenzhen Development
Bank Co., Ltd., China Merchants Bank, Shanghai Pudong Development Bank, Industrial Bank Co., Ltd., Evergrowing Bank and China Zheshang
Bank Co., Ltd.. In case the Voucher is up to the standard after being examined by the branches and sub-branches of the People’s Bank
of China at their localities, the aforesaid banks shall go through formalities for transferring money to the business management
department of the People’s Bank of China.

3.

The Deposit Voucher of Foreign Exchange Deposit Reserve shall be submitted to the branches and sub-branches of the People’s Bank of
China by their juridical person institutions (or each branch and sub-branch of the foreign banks) at the locality of the urban commercial
banks, rural commercial (cooperative) banks, urban credit cooperatives, rural credit cooperatives, financial companies of an enterprise
group, and foreign-funded financial institutions at the capital cities of the provinces (including municipalities directly under
the Central Government, hereinafter referred to as the provincial capital cities) and at Shenzhen city. In case the Voucher is up
to the standard after being examined by the business departments of the branches and sub-branches of the People’s Bank of China,
the aforesaid financial institutions shall go through formalities for transferring money to the branches and sub-branches of the
People’s Bank of China at their localities.

4.

The Deposit Voucher of Foreign Exchange Deposit Reserve shall be submitted to the sub-branches of the People’s Bank of China by their
juridical person institutions (or each branch and sub-branch of the foreign banks) at the localities of the urban commercial banks,
rural commercial (cooperative) banks, urban credit cooperatives, rural credit cooperatives, financial companies of an enterprise
group and the foreign-funded financial institutions of the non-provincial capital cities. In case the Voucher is up to the standard
after being examined by the business departments of the sub-branches of the People’s Bank of China, the aforesaid financial institutions
shall go through formalities for transferring money to the branches of the People’s Bank of China (business management departments
or central sub-branches of the provincial capital cities) at their provinces, autonomous regions and municipalities directly under
the Central Government.

5.

The business management department of the People’s Bank of China shall be responsible for handling the foreign exchange reserve deposit
of state-owned commercial banks, joint stock commercial banks and the foreign-funded financial institutions, urban commercial banks,
rural cooperative banks, urban credit cooperatives, rural credit cooperatives and financial companies in Beijing, and be responsible
for the work of reallocating or increasing (or decreasing) the foreign exchange reserve deposit collected by the branches of the
People’s Bank of China (the business management department of Chongqing city, or the central sub-branch banks of provincial capital
cities and Shenzhen city). The branches of the People’s Bank of China (the business management department of Chongqing city, or central
sub-branch banks of provincial capital cities and Shenzhen city) shall be responsible for handling the reallocation or increase (or
decrease) of the foreign exchange reserve deposit of foreign-funded financial institutions, urban commercial banks, rural cooperative
banks, urban credit cooperatives and rural credit cooperatives within their own jurisdictions. And

6.

The branches of the People’s Bank of China (the business management department of Chongqing city or central sub-branch banks of provincial
capital cities and Shenzhen city) shall open special accounts for foreign exchange reserve deposit in the Bank of China in their
localities.

The branches of the People’s Bank of China (the business management department of Chongqing city, or central sub-branch banks of provincial
capital cities and Shenzhen city) shall transfer the foreign exchange reserve deposit they have collected into the special account
for foreign exchange reserve deposit opened in the Bank of China by the business management department of the People’s Bank of China
before the date of 20 each month.

If there is any return of the reserve, the business management department of the People’s Bank of China shall transfer the foreign
exchange reserve deposit into the special account for foreign exchange reserve deposit opened in the Bank of China by the branches
of the People’s Bank of China (the business management department of Chongqing city, or central sub-branch banks in provincial capital
cities and Shenzhen city) before the 10th the current month (in the case of long holidays, two workdays shall be added).

III.

Supervision and Management

The currency credit department of the People’s Bank of China shall be responsible for organizing the work for the management, supervision
and punishment on foreign exchange deposit reserve. The accounting department of the People’s Bank of China shall be responsible
for the work of examination and approval of the accounting items within the purview of deposit of the foreign exchange reserve. And
the business department shall be responsible for the work of checkup on the statements of foreign exchange deposit reserve, capital
collection and routine examination. The relevant departments shall strengthen the information communication, cooperate closely with
each other and well manage the foreign exchange deposit reserve.

IV.

Others

The present Provisions shall come into force as of January 1st, 2005. The relevant financial institutions shall, pursuant to the requirements,
have the foreign exchange deposit reserve transferred into the special account of foreign exchange reserve deposit opened by the
People’s Bank of China in the Bank of China before the date of January 15, 2005. The date in the present Notice and its Annex shall
refer to the date in Gregorian calendar and in the case of festivals or holidays it shall be postponed to the first workday after
the festival or holiday .

With the view of unifying the management on foreign exchange deposit reserve, the foreign-funded financial institution, who fails
to submit the accounting items and the statement on the items to the local branches or sub-branches of the People’s Bank of China,
shall report the accounting items and the statement on the items to the branches or sub-branches of the People’s Bank of China for
archival purpose. So that the scope of deposit of the reserve can be determined.

A separate notice shall be issued on the relevant business accounting measures for foreign exchange deposit reserve.

Every branch and business management department of the People’s Bank and every central sub-branch of the bank in the provincial capital
cities shall transmit the present Notice to the urban commercial banks, rural commercial (cooperative) banks, urban credit cooperatives,
rural credit cooperatives, financial companies of an enterprise group and foreign-funded financial institutions within their own
jurisdictions.

Attachments:

1. Provisions on the Management of Foreign Exchange Deposit Reserve of Financial Institutions

2. Deposit Voucher of Foreign Exchange Deposit Reserve (Omitted)

People’s Bank of China

October 29, 2004 Attachment 1:Provisions on the Management of Foreign Exchange Deposit Reserve of Financial Institutions

Chapter I General Provisions

Article 1

For the purpose of strengthening the management on foreign exchange deposit reserve, bringing into full play the role of foreign exchange
deposit reserve and promoting the stable management of financial institutions, the present Provisions are formulated according to
the Law of the People’s Republic of China on the People’s Bank of China and the Law of the People’s Republic of China on Commercial
Banks and other laws and regulations.

Article 2

The present Provisions shall be applied to the financial institutions that absorb foreign exchange deposit within the territory of
the People’s Republic of China, including: solely state-owned commercial banks, joint stock commercial banks, urban commercial banks,
rural commercial (cooperative) banks, urban credit cooperatives, rural credit cooperatives, financial companies of enterprise groups,
solely foreign-funded banks, Sino-foreign joint venture banks, solely foreign-funded financial companies, Sino-foreign joint venture
financial companies and branches of foreign banks as well as other financial institutions that absorb foreign exchange deposit.

Article 3

The foreign exchange deposit reserve shall refer to a proportion of foreign exchange deposit absorbed by a financial institution and
deposited into the People’s Bank of China pursuant to a certain percentage.

The rate of foreign exchange deposit reserve shall refer to the ratio of the foreign exchange deposit reserve deposited into the People’s
Bank of China by a financial institution to the whole foreign exchange deposit absorbed by it.

Article 4

The People’s Bank of China shall be responsible for determining and adjusting the rate of foreign exchange reserve, and for inspecting
and supervising the acts of financial institutions for their implementation of provisions on the management of foreign exchange deposit
reserve.

Article 5

The People’s Bank of China will not compute and pay interests for the foreign exchange deposit reserve deposited by financial institutions.

Chapter II Deposit

Article 6

The purview of foreign exchange deposit, for which a financial institution shall deposit foreign exchange deposit reserve, includes:

1.

The individual foreign exchange savings deposit and entity foreign exchange deposit that are absorbed by a financial institution,
the reserve deposit for issuance of foreign currency credit cards and other foreign exchange deposits or obligations checked and
ratified by the People’s Bank of China. And

2.

The credit balance after reducing the assets items and the liabilities items of foreign exchange business under the entrustment or
agency of any financial institution . Where it is a debit balance after such reduction, the balance of liabilities items that shall
be deposited will be regarded as zero. No one may deduct or reduce other balance of foreign exchange liabilities items that shall
be deposited with certain debit balance.

Article 7

The People’s Bank of China shall, according to the requirements for adjustment and control of currency policies, prescribe and adjust
the purview of foreign exchange deposit for which a financial institution shall deposit foreign exchange deposit reserve.

Article 8

The accounting items matched with the purview of foreign exchange deposit for which a financial institution shall deposit foreign
exchange deposit reserve shall be determined by the People’s Bank of China or its authorized branches and sub-branches.

1.

The accounting items matched with the purview of foreign exchange deposit for which foreign exchange deposit reserve shall be deposited
by any solely state-owned commercial bank, joint stock commercial bank, city commercial bank, rural commercial (cooperative) bank,
urban credit cooperative, rural credit cooperative and financial company of an enterprise group shall be determined by the head office
of the People’s Bank of China. And

2.

The accounting items matched with the purview of foreign exchange deposit for which foreign exchange deposit reserve shall be deposited
by any wholly foreign-funded bank, Sino-foreign joint venture bank, solely foreign-funded financial company, Sino-foreign joint venture
financial company or branch of any foreign bank (hereinafter called by a joint name of foreign-funded financial institutions) shall
be determined by the branches or sub-branches of the People’s Bank of China at the localities of their juridical person institutions
(or branches of foreign banks) pursuant to the principles as prescribed by the head office, and shall be put on records at the head
office.

Article 9

The foreign exchange deposit reserve of any financial institution shall be deposited into the special foreign exchange reserve deposit
account opened by the People’s Bank of China in a Chinese-funded commercial bank within the territory of China.

1.

The foreign exchange deposit reserve of solely state-owned commercial banks or joint stock commercial banks shall be deposited uniformly
by their head offices into the special foreign exchange reserve deposit account opened by the business management department of the
People’s Bank of China in a Chinese-funded commercial bank.

2.

The foreign exchange deposit reserve of any urban commercial bank, rural commercial (cooperative) bank, urban credit cooperative,
rural credit cooperative and financial company of any enterprise group shall be deposited by their juridical person institutions
into the special foreign exchange reserve deposit account opened by the branches of the People’s Bank of China (the business management
departments or central sub-branches of provincial capital cities) of their provinces (autonomous regions and municipalities directly
under the Central Government)in a Chinese-funded commercial bank within the territory of China. And

3.

The foreign exchange deposit reserve of any foreign-funded financial institution with juridical person status shall be deposited by
its juridical person institution into the special foreign exchange reserve deposit account opened in a Chinese-funded commercial
bank within the territory of China by the branches and business management departments of the People’s Bank of China in the provinces
(autonomous regions, and municipalities directly under the Central Government) or the central sub-branches of the capital cities
of the provinces (hereinafter referred to as the provincial capital cities). The foreign exchange deposit reserve of branches of
foreign banks shall be deposited respectively by each branch of any foreign bank into the special foreign exchange reserve deposit
account opened in a Chinese-funded commercial bank within the territory of China by the branch and business management department
of the People’s Bank of China or the central sub-branch of provincial capital cities in the provinces (autonomous region, and municipality
directly under the Central Government).

Article 10

As for the deposit of US dollars or Hongkong dollars, the foreign exchange deposit reserve shall be deposited in pursuant to computation
according to the original type of currency. The foreign exchange deposit of other types of currencies shall be deposited by converting
them into dollars. The conversion rate between two of the various types of currencies shall be computed according to the Conversion
Rate of Various Types of Currencies to Dollars as promulgated by the State Administration of Foreign Exchange every month.

Chapter III Checkup and Adjustment

Article 11

The People’s Bank of China shall check the foreign exchange deposit reserve of financial institutions by month. The financial institutions
shall transfer the reserve deposit into the account designated by the People’s Bank of China before the 15th each month. From the
15th of the current month to the 14th of the next month the proportion of the balance of foreign exchange reserve deposit of any
financial institution in the current month to that of the end of last month shall be not lower than the rate of foreign exchange
deposit reserve without the approval of the People’s Bank of China.

Article 12

The financial institution shall submit the collected deposit vouchers, monthly accounting statements and the balance of foreign exchange
deposit at the end of the month to the People’s Bank of China at the locality of its juridical person institution (or the branch
of a foreign bank) before the 5th each month.

Article 13

The People’s Bank of China shall be responsible for auditing on the relevant data submitted by any financial institution.

Article 14

The financial institution shall compute the foreign exchange deposit reserve that shall be deposited in the current month pursuant
to the balance of foreign exchange deposit and the rate of foreign exchange deposit reserve at the end of last month. The formula
for computation shall be as follows:

The balance of foreign exchange reserve deposit of the current month = the balance of the foreign exchange deposit at the end of last
month￿￿the rate of foreign exchange deposit reserve

Article 15

Where the foreign exchange reserve deposit of any financial institution in the People’s Bank of China is larger than the foreign exchange
deposit reserve that it should deposit in the current month, the People’s Bank of China shall transfer the extra capital into the
account of the financial institution before the 15th of the current month.

Chapter IV Dissaving

Article 16

Where serious difficulties in payment occurs in any financial institution and it applies for using the foreign exchange deposit reserve,
the financial institution shall report for the approval of the People’s Bank of China or the branch or sub-branch authorized by the
People’s Bank of China.

Article 17

For any financial institution that may use the foreign exchange deposit reserve upon the approval of the People’s Bank of China, the
approved amount of foreign exchange deposit reserve that may be used shall be deducted from the foreign exchange deposit reserve
it has deposited within the time limit of approval. And the formula for computation is as follows:

The balance of foreign exchange reserve deposit of the current month = the balance of the foreign exchange deposit at the end of last
month ￿￿the rate of foreign exchange deposit reserve-the approved amount of foreign exchange deposit reserve that can be used

Article 18

The People’s Bank of China shall manage the foreign exchange deposit reserve that can be used by a financial institution in a special
account and assign a special person to take charge of it.

Article 19

The foreign exchange deposit reserve used by a financial institution shall be used according to provisions and shall not be appropriated.

Chapter V Legal Liability

Article 20

Where any Chinese-funded commercial bank fails to deposit the foreign exchange deposit reserve according to the proportion as prescribed
by the People’s Bank of China, it shall be subject to the punishment as prescribed in Article 77 of the Law of the People’s Republic
of China on Commercial Banks. Where it violates the provisions of Article 12 of the present Provisions, it shall be subject to the
punishment as prescribed in Article 80 of the Law of the People’s Republic of China on Commercial Banks. Where any Chinese-funded
financial company fails to deliver the foreign exchange deposit reserve according to the proportion as prescribed by the People’s
Bank of China and violates the provisions of Article 12 of the present Provisions, it shall be subject to the punishment as prescribed
in Article 46 of the Law of the People’s Republic of China on the People’s Bank of China. Where any foreign-funded financial institution
fails to deliver the foreign exchange deposit reserve according to the proportion as prescribed by the People’s Bank of China, it
shall be subject to the punishment as prescribed in Article 45 of the Regulation of the People’s Republic of China on the Management
of Foreign-funded Financial Institutions. Where it violates Article 12 of the present Provisions, it shall be subject to the punishment
as prescribed in Article 47 of the Regulation of the People’s Republic of China on the Management of Foreign-funded Financial Institutions.

Any financial institution that has corrected the aforesaid illegal acts in time and on its own initiative shall be given a lighter
punishment or under the mitigation of punishment below the minimum statutory prescript according to the provisions of Articles 5
and 27 of the Administrative Punishment Law of the People’s Republic of China.

Article 21

Where the People’s Bank of China has any of the following acts, the leader in charge directly responsible and the personnel directly
liable shall be subject to the administrative punishment according to the relevant laws and regulations in light of their circumstances:

1.

Failing to take correction and punishment measures in time when discovering any act of any financial institution violating the regulations
of the present Provisions;

2.

Embezzling the foreign exchange deposit reserve of any financial institution without permission;

3.

Approving any financial institution to use foreign exchange deposit reserve without permission by exceeding the purview of examination
and approval; or

4.

Not well supervising the use of foreign exchange deposit reserve by any financial institution.

Chapter VI Supplementary Provisions

Article 22

The power to interpret and amend the present Provisions shall remain with the People’s Bank of China.

Article 23

The present Provisions shall come into force as of January 1st, 2005. The Measures for the Management of Payment and Deposit of Deposit
Reserve by Foreign-funded Financial Institutions promulgated by the People’s Bank of China on May 40, 1996 and the Provisions on
Foreign Exchange Deposit Reserve Management promulgated on December 1st, 1996 shall be repealed simultaneously.

 
the People’s Bank of China
2004-10-29

 



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

Disclaimer: There is no confidential attorney-client relationship formed by using Laws.com website and information provided on this site is not legal advice. For legal advice, please contact your attorney. Attorneys listed on this website are not referred or endorsed by this website. By using Laws.com you agree to Laws.com Terms Of Use.
Facebook
© LAWS.COM NETWORK 2023-2024