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(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
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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
monththe 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.
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