ANNOUNCEMENT OF NO.134, 2006 OF THE STATE ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE ON PROMULGATING THE INSTITUTION LIST ACQUIRING THE QUALIFICATION FOR INSPECTION AND APPRAISAL OF IMPORT AND EXPORT COMMODITIES

Announcement of No.134, 2006 of the State Administration of Quality Supervision, Inspection and Quarantine on Promulgating the Institution
List Acquiring the Qualification for Inspection and Appraisal of Import and Export Commodities

[2006] No.134

In accordance with Law of the People’s Republic of China on Import and Export Commodity Inspection, Measures for the Administration
of Import and Export Commodity Inspection and Authentication Institutions (Decree of the State Administration of Quality Supervision,
Inspection and Quarantine 2003, No.58) and the Announcement of the State Administration of Quality Supervision, Inspection and Quarantine
2003, No. 122, with the permission of the State Administration of Quality Supervision, Inspection and Quarantine after examining,
and an announcement is hereby given on the list of inspection and appraisal institutions acquiring the qualification for engaging
in inspection and appraisal of import and export commodities as follows:

Dongwan Inspection and Testing Co., Ltd.

Shanghai Specialized Technology Resources Co., Ltd.

Shanghai Befake Inspection Co., Ltd.

Hangzhou Ruike Textile Co., Ltd.

Nanjing Jin’ao Inspection Co., Ltd.

Shanghai Intertek Group Plc.

Beijing Branch, Qingdao Branch, Xuhui Branch and Kunming Branch

Nanjing Jinli Inspection Co., Ltd.

SGS Group Plc.

Changzhou BranchSuzhou Branch, Fuzhou Branch, Zhuhai Branch, Quanzhou Branch and Dongwan Branch

Shanghai Lingxiang Inspection Technology Co., Ltd.

10.

Nanjing Jinjian Inspection Co., Ltd.

11.

Zhejiang Zhongheng Commodity Inspection Co., Ltd.

12.

Yangzhou Import and Export Toy Inspection Institute of PRC.

13.

Shenzhen Pengcheng Import and Export Commodities Inspection and Appraisal Institute Co., Ltd. , Shanghai Branch

14.

Zhejiang Jiuliang Commodity Inspection and Identification Co., Ltd.

15.

Bejing Tianyi International Inspection and Appraisal Co., Ltd.

16.

Shanghai Highlevels Surveying Co., Ltd.

17.

China Certification and Inspection (Group) Co., Ltd.

Jilin Co., Ltd. ,Henan Co., Ltd.

18.

Shanghai Xiangcheng Commodity Inspection Technology Service Co., Ltd.

The State Administration of Quality Supervision, Inspection and Quarantine

September13, 2006

The State Administration of Quality Supervision, Inspection and Quarantine
2006-09-13

THE TECHNICAL POLICY FOR THE RECOVERY AND UTILIZATION OF AUTOMOBILE PRODUCTS

National Development and Reform Commission, Ministry of Science and Technology, State Environmental Protection Administration

Announcement of the National Development and Reform Commission, the Ministry of Science and Technology and the State Environmental
Protection Administration

No.9

For the purpose of promoting the construction and development of the system of circular economy in China, protecting the environment,
enhancing the efficiency of resource utilization, fulfilling the scientific development concept, and realizing the sustainable development
of society and economy, the National Development and Reform Commission, the Ministry of Science and Technology and the State Environmental
Protection Administration jointly formulated the Technical Policy for the Recovery and Utilization of Automobile Products (hereinafter
referred to as this Technical Policy).

This Technical Policy is a guiding document on pushing forward the establishment of the system of discarding and recovery of automobile
products in China. It aims at guiding the production and sale of automobiles, initiation of relevant enterprises, carrying out and
promoting the design, manufacture, discarding, recovery, and recycling of automobile products, etc. The state will, in good time,
establish the relevant systems as mentioned in the Technical Policy and will start to promulgate and implement such systems in a
successive manner prior to the year of 2010.

National Development and Reform Commission

Ministry of Science and Technology

State Environmental Protection Administration

February 6, 2006

The Technical Policy for the Recovery and Utilization of Automobile Products

Chapter I General Principles

Article 1

This Technical Policy is formulated for the purposes of protecting the environment, enhancing the resource utilization efficiency,
fulfilling the scientific development concept and realizing the sustainable development of society and economy.

This Technical Policy is a guiding document on pushing forward the establishment of the system of discarding and recovery of automobile
products in China. It aims at guiding the production and sale of automobiles, and initiation of relevant enterprises, and carrying
out and promoting the discarding and recovery of automobile products. The state will, in good time, establish the relevant systems
as mentioned in this Technical Policy and will start to promulgate and implement such systems in a successive manner prior to the
year of 2010.

Article 2

The term “automobile” as mentioned in this Technical Policy refers to the Classes M and N motor vehicles as prescribed in the Classification
of Motor Vehicles and Trailers (National Standards of the People’s Republic of China GB/T15089-2001).

Article 3

This Technical Policy shall apply to the scope including design and production of new types of vehicles to be sold and registered
within the territory of China, and the repair, maintenance, discarding, dismantlement and recycling of automobiles in using , as
well as other links.

Article 4

The recycling of materials in the production, maintenance and dismantlement of automobile products shall be taken into consideration
synthetically. It is encouraged to use renewable materials in the manufacture procedure of automobiles, to use recycled component
parts in the repair of automobiles, to enhance the recycling rate of materials, to save the resources and utilize the resources
efficiently, and give an impetus to the development of circular economy.

Article 5

The rate of recovery and utilization of automobiles refers to the rate of the reutilize of discarded automobile component parts and
materials with regenerated energy, which is usually measured on the basis of the percentage of the recoverable and utilizable materials
to the complete vehicle kerb mass.

For the recoverable and utilizable rate of automobiles, please refer to the Methods for the Computation of Recyclability and Recoverability
of Road Vehicles (GB/T195152004/ISO22628: 2002) and other relevant standards.

Article 6

The state shall gradually integrate the indicator of recoverable and utilizable rate of automobiles into the licensing management
system for the market access of automobile products.

Article 7

The management of the responsibilities of automobile producers shall be intensified. A sound management system led by the automobile
manufacturing enterprises shall be established in the sectors of production, use, discarding and recovery of automobiles.

Article 8

The competent department of the government shall, in good time, formulate and amend the matching policies and standards, strengthen
the guidance and supervision management, and direct the automobile industry of China to formulate a scientific and efficient development
plan under the scientific development concept so as to promote the highly efficient utilization of materials and decrease the consumption
of energy.

A system shall be established for the classified collection and separated selection of the materials and substances of discarded automobiles,
to promote the full and reasonable utilization and innocuous disposal of automobile wastes so as to decrease until eliminate the
harm of such wastes, and incessantly to perfect the recovery, treatment and utilization system of renewable resources. By the end
of 2012, it shall establish relatively perfect systems of laws and regulations, policy support system, technological innovation system,
as well as a effective incentive and restraint mechanism for the recovery and utilization of discarded automobiles, shall establish
a system of economic evaluation indicators for the recovery and utilization and shall set forth medium and long term strategic goals
and multi-stage promotion plans.

Article 9

The state shall adopt a ratification system for the enterprises to engage in the treatment of discarded automobiles. Any entity to
engage in the collection, dismantlement, utilization and disposal of discarded automobiles shall apply for a licence. It is forbidden
to engage in the collection, dismantlement, utilization and disposal of discarded automobiles without licence.

Article 10

The development, application of new technologies and new equipment in each link of the chain of automobile industry shall be intensified
according to the “reduction-based, reuse, and resource-based” principles. An economic growth mode, of which the main features are
low consumption, low discharge and high efficiency and which is in line with the sustainable development concept, shall be carried
out so as to make the recoverability rate of the production and sale of complete vehicle products in China reach the international
advanced level.

The goal of the first stage: from 2010, the recoverable and utilizable rate of all home-made and imported vehicles in Classes M2,
M3, N2 and N3 shall reach 85% or so, of which the recyclability rate of materials shall not be less than 80%. The recoverable and
utilizable rate of all home-made and imported automobiles in Classes M1 and N2 shall reach 80%, of which the recyclability rate of
materials shall not be less than 75%. At the same time, except the lead-bearing alloys, storage batteries, lead plating, chromeplating,
additives (stabilisers), and mercury for lamps, the use of lead, mercury, cadmium and hexavalent chromium shall be controlled.

From 2008, the automobile manufacturing or distribution enterprises shall start to undertake the register and archival filing for
the recoverable and utilizable rate of automobiles, and make preparations for carrying out the multi-stage tasks.

The goal of the second stage: from 2012, the recoverable and utilizable rate of all home-made and imported automobiles shall reach
90% or so, of which the recyclability rate of materials shall not be less than 80%.

The goal of the third stage, from 2017, the recoverable and utilizable rate of all home-made and imported automobiles shall reach
95% or so, of which the recyclability rate of materials shall not be less than 85%.

The low-speed cargo automobiles, three-wheel automobiles, motorcycles and trailers shall also be governed by the provisions on motor
vehicles in the Classes M and N, but the specific goal and implementation date shall be determined separately.

Attentions shall be paid to the protection of environment in the links of production, use and discarding of automobiles. The treatment
and disposal of the wastes generated from each link shall meet the national environmental protection standards as well as the relevant
policy and regulatory requirements, and shall try to diminish and even eliminate the harm of the wastes to the living environment
of the mankind.

Chapter II Design and Production of Automobiles

Article 11

In the design and production of any automobile product to be sold in China, the dismantlability and easiness of dismantlement after
the discarding of the product shall be taken into full consideration, and the principle of being easy to sort out different kinds
of materials shall be followed. Priority shall be given to the adoption of technologies and techniques that can utilize the resources
in a highly efficient manner, produce little pollutants, and are conducive to the recovery and utilize of the product after discarding,
so as to enhance the level of technologies for the design and production of automobile products.

Article 12

A relevant enterprise shall try its best to adopt small-sized or light weight and renewable component parts or materials, shall try
its best to choose recyclable materials as the production materials, and shall incessantly reduce the varieties of materials so as
to facilitate the recovery and utilize of materials.

The recoverability rate and recyclability rate of all plastic materials of automobile products shall be raised continuously.

It is forbidden to utilize any materials that will emit toxic substances and do harm to the environment. The relevant enterprises
shall reduce and finally stop the use of non-renewable materials, or materials disadvantageous to the environmental protection.

The utilization of lead, mercury, hexavalent chromium and other heavy metals shall be controlled. The aforesaid heavy metals are allowed
to be used only in some particular circumstances according to a checklist, which is reviewed regularly.

An enterprise shall attach marks and codes to the component parts containing harmful substances.

Article 13

A supporting enterprise of automobile component parts shall provide the automobile production enterprises with the composition, structural
design or dismantlement guide, content and nature of the harmful substances, methods for the disposal of wastes, and other information
relevant to the component parts it supplies so as to help the complete automobile production enterprises calculate the recoverable
and utilizable rate of their respective products.

Article 14

Where conditions are ripe, the state will encourage the automobile production enterprises or the general agents of imported automobiles
to choose distributors and special repair shops of their respective brand to carry out revamp or re-manufacture business relating
to the used component parts. The quality of the revamped or re-manufactured component parts shall satisfy the corresponding quality
requirements, and such component parts shall be given an indication that they are revamped or re-manufactured.

Article 15

From 2010, an automobile production enterprise or general agent of imported automobiles shall be responsible for the recovery and
treatment of the automobile products it sells and their packing articles, or may entrust the relevant institutions or enterprises
to be responsible for the recovery and treatment of the automobile products that it produced or sold and their packing articles.

The design and production of packing articles for automobile products shall be in line with the provisions of the state on clean production
and shall meet the relevant standards and requirements.

An electric automobiles production enterprise (including hybrid-powered automobiles, etc.) shall be responsible for the recovery and
treatment of the storage batteries of the electric automobiles it sells.

Article 16

An automobile production enterprises or general agent of imported automobiles shall be responsible for the recovery of its products,
and treatment or disposal of its products according to the requirements for environmental protection and recovery and utilization,
or pay the relevant recovery and treatment fees.

The recovery and treatment fees for different type of automobiles shall be decided and adjusted by the relevant departments on the
basis of the technological level of recovery and treatment of discarded automobiles, recycling ability, price, entrusted treatment
business and other factors of our country during different periods of time. If the automobile price is changed due to bearing the
recovery and treatment fees, the increased part of price shall not exceed the prescribed amount or rate.

The management, incomes, expenses and purposes of the recovery and treatment fees shall be in line with the principle of openness,
impartiality and fairness and shall be subject to the supervision of the government, enterprises and the public.

Article 17

An automobile production enterprise shall, on its own initiative, cooperate with the downstream enterprises, provide the recovery,
dismantlement and breaking enterprises with a Guiding Brochure for Automobile Dismantlement, relevant technical information and relevant
technical training so as to jointly promote the incessant rise of the recoverable and utilizable rate of discarded automobiles.

Article 18

The automobile production enterprises shall closely cooperate with the enterprises engaging in the production or re-manufacturing
of component parts, recovery and dismantlement of discarded automobile, and renewal of materials, share the relevant information,
track the international advanced technologies and make concerted efforts to tackle the key problems so as to jointly enhance the
recyclability rate and recoverable and utilizable rate of automobile products.

The automobile production enterprises or general agents of imported automobiles shall actively support the governmental departments
to carry out topic research, policy formulation and other relevant tasks, shall actively carry out tackling key problems on scientific
research, technological innovation, equipment renovation and other tasks for the enhancement of the recoverable and utilizable rate
of automobile products.

Chapter III Automobile Decoration, Repair and Maintenance

Article 19

During the courses of automobile decoration, repair and maintenance, the relevant enterprises shall choose and use products with a
high recoverable and utilizable rate, safety and environment protection as the courses of automobile production..

Article 20

The disassembled and discarded component parts shall be classified into different categories and be properly kept. Where policy permits,
it is encouraged to make qualified component parts diverted from the automobiles to re-enter circulation sector as component parts
for the repair of automobiles.

The enterprises meeting the requirements for technologies, equipment and testing are encouraged to re-manufacture component parts
for the repair of automobiles by making use of the component parts diverted from the discarded automobiles as well as the used component
parts replaced in the repair.

The disassembled or discarded accessories and parts, which have lost the originally designed functions and are of no remanufacturing
value, shall be respectively delivered to the corresponding materials recycling and treatment enterprises for recycling and shall
not be disposed by dumping, spilling, burying or any other way whereby the environment will be harmed.

Article 21

The storage batteries, catalytic converter, waste oil, waste liquid, waste rubber (including tyres) and plastic items generated in
the courses of care or maintain of the automobiles shall be recovered, preserved and transported according to different categories,
and shall be delivered to the relevant enterprises for treatment, disposal, changing the purpose, or being used for energy renewal.

Article 22

The items containing any toxic substance or any substance harmful to the environment or human body, such as storage batteries, airbags,
catalyzer and refrigerants, shall be delivered to qualified enterprises for treatment.

The collection, storage, transport and treatment of hazardous wastes shall be in compliance with the Standards on the Control of Pollution
in the Storage of Hazardous Wastes, the Standards on the Control of Pollution When Burying Hazardous Wastes, the Standards on the
Control of Pollution When Burning Hazardous Wastes and other safety and environmental protection requirements.

Article 23

The enterprises engaging in the treatment of polluting wastes and toxic substances shall be subject to strict access management. The
supervision and inspection over such enterprises shall be intensified so as to diminish and avoid harm to the environment and human
health.

No entity may engage in the collection, utilization, storage, transport, treatment or any other business relating to hazardous waste
unless it has obtained a business permit from the environmental protection department.

Chapter IV Import of Used Automobiles and Their Component Parts

Article 24

Except that it is permitted to import auto generator, starter and micro-motors for remanufacturing for automobile repair, it is prohibited
to directly import any discarded or used automobile component parts for remanufacturing for automobile assembling production or repair.

The import of used motors shall meet the requirements in the Environmental Protection Control Standards on the Import of Solid Wastes
as Raw Materials- Discarded Motors (GB16487.8-2005).

Article 25

On the precondition that it does not violate the relevant environmental protection requirements, a materials production enterprise
may, according to the relevant provisions, import discarded automobiles (which have already become chipping) and component parts
as raw materials of production, but it is prohibited to assemble such imported items into vehicles and to let them enter the circulation
link.

It is prohibited to use any component parts which are diverted from any imported discarded or used automobiles, directly or upon re-manufacture,
in the assembly production or repair of automobiles.

Article 26

It is prohibited to import or process any automobile materials with high energy consumption, low efficiency, severe pollution or high
cost, or which are toxic and harmful to the environment.

Article 27

In the international trade relating to the development of resource renewal industry, the import of automobile wastes and other wastes
shall be strictly controlled.

On the precondition that the import of automobile wastes and other toxic and harmful wastes is strictly controlled, two markets,
two kinds of resources shall be fully used, and the international trade relating to the resource renewal industry shall be developed
actively.

Chapter V Recovery and Recycling of Automobiles

Article 28

During the courses of recovery, dismantlement and recycling, the relevant enterprises shall, in accordance with the principles of
scientific procedures, work-related environmental protection, highly efficient renewal, low consumption, enhance the renewal quality,
expand the renewal scope and decrease the quantities of wastes.

The relevant enterprises shall scientifically carry out the pretreatment, dismantlement, cutting, breaking, treatment of non-metal
items (substances which have been confirmed to be used for recycling, or may be used for energy renewal in the future), and shall
increase the reuse, recycling and recovery and utilization rates of the component parts and various substances of discarded automobiles.

Article 29

The enterprises manufacturing automobile materials and substances shall actively develop new materials which are recyclable and will
do no harm to the environment, especially intensify the development and application of technologies of renewable materials and substitutes,
expand the renewable fields of recovered materials, enhance the quality of renewable products and promote the rapid and sound development
of circular economy.

The recovery and dismantlement, renewal of materials, and other recovery and utilization enterprises shall incessantly enhance their
technologies and management levels and shall, jointly with the enterprises manufacturing automobile products, make concerted efforts
to realize the multi-stage goals of our country on the recovery and utilization rate to ensure the social and economic benefits.

Article 30

The discarded automobile recovery and dismantlement, and recovery and recycling enterprises shall meet the requirements of Chapter
III concerning the dismantlement of component parts, waste oil, noble metal materials and solid wastes. At the same time, the operating
rules formulated by such enterprises shall be in line with the requirements of the laws, regulations, and technical standards and
regulations of the state.

Article 31

The recovery and dismantlement enterprises shall have necessary professional technicians and shall have special equipment and places
that can meet the needs of their respective treatment capacity.

The recovery and dismantlement and renewal enterprises shall, through structural adjustment, optimization of industry, technological
renovation, and other measures, establish necessary conditions, enhance the awareness of economization and environmental protection,
improve the treatment facilities, promote the treatment capacity and gradually form professional and mass operations.

Article 32

For the purposes of preventing environmental pollution, and realizing the commitments of automobile production enterprises or general
agents of imported automobiles regarding the recovery and utilization rate, the enterprises of recovery and dismantlement of discarded
automobiles shall sign agreements with the automobile production enterprises or general agents of imported automobiles for enhancing
the ability to dismantle or reuse the discarded or used automobile products.

Where a recovery or dismantlement enterprise does not meet or no longer meets the conditions as stipulated in the recovery and treatment
agreement, the corresponding automobile production enterprise or general import agent may abolish this agreement.

Chapter VI Promotion Measures

Article 33

For the purposes of effectively realizing the recovery and utilization of discarded automobile products, the enterprises whose recovery
and utilization rate of products has reached or exceeded the current limit as provided for by the current policy in advance, or which
has utilized a certain volume of renewable materials in the production, or which has developed and adopted recovery technologies
and equipment, or which has introduced any specialized treatment technology and equipment and has developed such technology and equipment
domestically shall be given necessary preferential policies by state so as to encourage the automobile product production, and recovery
enterprises to increase the recovery and utilization rate of automobile products and to utilize renewable materials actively. ,.

Article 34

The relevant enterprises are encouraged to digest and absorb overseas advanced technologies of product design, production of new materials,
dismantlement of discarded automobiles, re-manufacture of used accessories and parts, and of materials recovery and renewal, to develop
and apply the advanced monitoring and testing devices and equipment, to establish a new and highly efficient production technology
system, and to improve their international competitive ability relating to the automobile recovery and utilization technologies and
equipment through the measures of joint venture, cooperation, technology introduction and etc..

Article 35

The competent department of the government shall organize the research, development and popularization of the production techniques
and equipment that may reduce the quantities of industrial solid wastes and shall publicize the list of backward production techniques
and equipment which bring industrial solid wastes and seriously pollute the environment and which should be eliminated within a time
limit,.

The producers, distributors, importers or users shall, within the time limit as prescribed by the comprehensive administrative department
of economy under the State Council jointly with other relevant departments of the State Council, stop using, selling, importing or
using the equipment included in the list as mentioned in the preceding paragraph. The enterprises shall stop adopting the production
techniques included in the list as mentioned in the preceding paragraph. The equipment washed out under the provisions of the preceding
paragraph shall not be transferred to others for use.

Article 36

The competent department of the government shall timely set forth a timetable for the automobile materials limited for use and direct
the enterprises to actively adopt materials, which will not do harm to the environment and are favorable for recovery.

Where any automobile production enterprise or importer fails to satisfy the requirements for recovery and utilization rate within
a certain time limit, it shall be given a corresponding punishment and be surcharged a sum of environmental protection and treatment
fee.

Article 37

The state advocates the living styles and consumption forms that are favorable to saving resources and protecting the environment,
and encourage the use of green products, such as products with environmental marks, and products with energy-efficiency marks, etc.

When the government purchases automobile products, it shall give top priority to the products with a high recovery and utilization
rate.

The discarded automobile owners and recovery and dismantlement enterprises shall, in strict compliance with the Measures for the Management
of the Recovery of Discarded Automobiles (No. 307) promulgated by the State Council in 2001 and other relevant policies and regulations,
to deliver, dismantle and dispose the discarded automobiles.

Article 38

The relevant enterprises are encouraged to remanufacture automobile engines and other discarded or used electro-mechanical products
and establish a garbage classification and selection system so as to incessantly improve the system of resource recycling, treatment
and utilization.

Article 39

The competent departments of automobile production, industry and commerce, environmental protections, etc. shall intensify the supervision
and control according to law so as to effectively enhance the actual recovery and utilization rate of automobile products of our
country.

Article 40

The recovery and utilization network of discarded automobiles shall be improved, the recovery and treatment of technical route shall
be clarified, and various regulations, policies and measures shall be formulated to promote recoverability and recyclability of discarded
automobiles.

The relevant governmental departments shall, according to the situation of recovery and utilization of automobile products in China,
organize the relevant institutions and enterprises to do deep research into the pertinent policies and regulations, formulate and
improve various supporting policies, try to realize the multi-stage goals of the recovery and utilization rate of automobile products
of our country.

Appendix:Terms and Definitions

For the terms and definitions as mentioned in this technical policy and work guide, please consult the Road Vehicles Recyclability
and Recoverability Calculation Method (GB/T19515- 2004/ISO22628: 2002)

Vehicles mass

The complete vehicle kerb mass as prescribed in GB/T 3730.2-1996

Reuse refers to the act of using the component parts of discarded vehicles on the basis of any of the designed purposes.

Recycling refers to the act of making the discarded materials satisfy the original utilization requirements or be used for other purposes
by way of re-processing, excluding the processing course to make such materials generate energy.

Recovery and utilization refers to the act of making the discarded materials satisfy the original utilization requirements or be used
for other purposes by way of re-processing, including the processing course to make such materials generate energy.

Dismantlability refers to the ability to dismantle the component parts from the vehicles.

Reusability refers to the ability of the component parts to be diverted from vehicles and to be re-utilized.

Recyclability refers to the ability of the component parts/ or materials to be diverted from vehicles and to be re-utilized.

Recyclability rate refers to the percentage (mass percentage) by mass of a new vehicle, potentially able to be reused and recycled.

Recoverability refers to the potential for recovery of component parts or materials diverted from a discarded vehicle.

10.

Recovery and utilization rate refers to the percentage by mass of a new vehicle, potentially able to be reused and recovered (mass
percentage).

11.

Hazardous wastes refer to the wastes included in National Catalogue of Hazardous Wastes or those determined as hazardous wastes under
the national standards on the identification standards and approaches.

12.

Treatment refers to the act of decomposing, cleaning, combining, processing, remanufacturing or regenerating discarded or used articles
or substances through physical, chemical and other methods so as to make such discarded or used articles and substances satisfy the
requirements for reuse, innocuity or harm diminishment and environmental protection.

13.

Disposal refers to burning solid waste and other methods that change the physical, chemical or biological characteristics of the waste
in order to reduce its volume, make its cubage shrink, reduce or eliminate its hazardous components, or refers to the final deposition
of solid wastes into the places or facilities as required by the environmental protection provisions, and never taking them back.

14.

Automobile products include the complete vehicles, component parts and other substances available for automobiles. An automobile refers
to a complete automobile.

15.

The automobile production enterprises refer to enterprises manufacturing (including refitting) complete automobiles. Enterprises manufacturing
automobile products include enterprises manufacturing complete automobiles, component parts and other substances available for automobiles.

National Development and Reform Commission, Ministry of Science and Technology, State Environmental Protection Administration
2006-02-06

LETTER OF CHINA BANKING REGULATORY COMMISSION CONCERNING THE APPROVAL TO JAPAN MICHINOKU BANK LTD. TO CLOSE UP ITS WUHAN REPRESENTATIVE OFFICE

Letter of China Banking Regulatory Commission concerning the Approval to Japan Michinoku Bank Ltd. to Close up Its Wuhan Representative
Office

Michinoku Bank, Ltd. Japan,

The letter which was signed by Kazuo Harada, president of your bank, and was addressed to this Commission on December 15, 2006 has
been received by this Commission.

You are hereby approved to close up your Wuhan Representative Office according to the Measures on the Administration of Foreign-funded
Financial Institutions’ Representative Offices in China (Order No. 8, 2002 of the People’s Bank of China),. Please carry out the
related cancellation formalities according to the related provisions.

China Banking Regulatory Commission

February 14, 2006

China Banking Regulatory Commission
2006-02-14

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 19 – FOREIGN CURRENCY TRANSLATION

the Ministry of Finance

Accounting Standards for Enterprises No. 19 – Foreign Currency Translation

Cai Kuai [2006] No. 3

February 15, 2006

Chapter I General Provisions

Article 1

With a view to regulating the accounting treatment for the foreign currency transactions, conversion of foreign currency financial
statements and disclosure of relevant information, the present Standards are formulated according to the Accounting Standards for
Enterprises – Basic Standards.

Article 2

The “foreign currency transaction” refers to transactions which are valuated and settled in foreign currency. The “foreign currency”
refers to a currency other than the functional currency of an enterprise. The foreign currency transactions include:

(1)

the purchase or sale of goods or services valuated in foreign currency;

(2)

foreign currency funds that are borrowed or lent; and

(3)

other transactions which are valuated or settled in foreign currency.

Article 3

The following items shall be subjected to other relevant accounting standards:

(1)

The balance of exchange arising from foreign currency borrowings for the purchase and construction or production of qualified assets
shall be subject to the Accounting Standards for Business Enterprises No. 17 – Borrowing Costs;

(2)

The hedge of foreign currency items shall be subject to the Accounting Standards for Enterprise No. 24 – Hedging; and

(3)

The translation of foreign currency in the cash flow statement shall be subject to the Accounting Standards for Business Enterprises
No. 31- Cash Flow Statement.

Chapter II Determination of Functional Currency

Article 4

The “functional currency” refers to the currency of the primary economic environment in which the enterprise is operated.

An enterprise shall, in general, choose RMB as its functional currency. For an enterprise of which the incomes and expenses are mainly
valuated in the currency other than RMB, it may choose a currency as its functional currency according to Article 5 of the present
Standards. However, the financial statements shall be translated into the ones RMB.

Article 5

When an enterprise chooses a functional currency, it shall take account of the following factors:

(1)

This currency mainly affects the selling prices of goods and services, and generally the goods and services are valuated and settled
in this currency;

(2)

This currency mainly affects the labor, materials and other costs for the goods and services, and generally the goods and services
are valuated and settled in this currency; and

(3)

The currency acquired in financing activities as well as the currency utilized to preserve the money charged in the business operation.

Article 6

When an enterprise chooses the functional currency for its overseas business, it shall taking account of the following factors as
well:

(1)

Whether or not the overseas businesses are quite independent from the activities in which it is engaged;

(2)

Whether or not the transactions with the enterprise in overseas business operations account for a relatively large proportion in oversea
business operations;

(3)

Whether or not the cash flow incurred in overseas business operations directly affect the cash flow of the enterprise, and whether
or not the cash may be remitted back at any time;

(4)

Whether or not the cash flow incurred in overseas business operations is sufficient to settle its current liabilities and predictable
liabilities.

Article 7

The “overseas business operation” refers to the enterprise’ overseas subsidiary companies, joint ventures, associated enterprises
and branches.

Where the domestic subsidiary company, joint enterprise, associated enterprise or branch of an enterprise adopts a functional currency
which is difference from that of the enterprise, it shall be deemed as overseas business.

Article 8

Once the functional currency of an enterprise is determined, it shall not be modified at will, unless the main economic environment
in which the enterprise is operated has greatly changed.

Where it is really necessary to modify the functional currency because the primary economic environment in which the enterprise is
operated has greatly changed, the enterprise shall translate all items into the post-change functional currency at the spot exchange
rate of the current date of the change.

Chapter III Accounting Treatment for Foreign Currency Transactions

Article 9

As for a foreign currency transaction, the enterprise shall translate the amount in a foreign currency into amount in its functional
currency.

Article 10

At the time of initial recognition of a foreign currency transaction, the amount in the foreign currency shall be translated into
the amount in the functional currency at the spot exchange rate of the transaction date, or at an exchange rate which is determined
through a systematic and reasonable method and is approximate to the spot exchange rate of the transaction date.

Article 11

An enterprise shall, on the balance sheet date, treat the foreign currency monetary items and foreign currency non-monetary items
in accordance with the following provisions:

(1)

The foreign currency monetary items shall be translated at the spot exchange rate on the balance sheet date. The balance of exchange
arising from the difference between the spot exchange rate on the balance sheet date and the spot exchange rate at the time of initial
recognition or prior to the balance sheet date shall be recorded into the profits and losses at the current period.

(2)

The foreign currency non-monetary items measured at the historical cost shall still be translated at the spot exchange rate on the
transaction date, of which the amount of functional currency shall not be changed.

The “monetary item” shall refer to the money held by an enterprise and the assets and liabilities to be received or paid in fixed
or determinable amounts of money.

The “non-monetary item” shall refer to the items other than the monetary ones.

Chapter IV Translation of Foreign Currency Financial Statements

Article 12

When translating the financial statements on the overseas businesses, an enterprise shall comply with the following provisions:

(1)

The asset and liability items in the balance sheets shall be translated at a spot exchange rate on the balance sheet date. Among the
owner’s equity items, except the ones as “undistributed profits”, others shall be translated at the spot exchange rate at the time
when they are incurred.

(2)

The income and expense items in the profit statements shall be translated at the spot exchange rate of the transaction date, or at
a spot exchange rate which is determined through a systematic and reasonable method and is approximate to the spot exchange rate
of the transaction date.

The balance arisen from the translation of foreign currency financial statements in compliance with the aforesaid Items (1) and (2)
shall be presented separately under the owner’s equity item of the balance sheets.

The translation of comparable financial statements shall be subject to the aforesaid provisions.

Article 13

An enterprise shall translate the financial statements of overseas business as situated in a hyperinflationary economy in accordance
with the following provisions:

It shall restate the balance sheet items by adopting the general price index, restate the items of the profit statement by adopting
the changes of the general price index, and then translate them at the spot exchange rate on the recent balance sheet date.

If an overseas business is no longer situated in the hyperinflationary economy, it shall stop the restatement, and shall translate
the restated financial statements at the price of the cessation date.

Article 14

When disposing an overseas business, an enterprise shall shift the balance, which is presented under the items of the owner’s equities
in the balance sheet and arises from the translation of foreign currency financial statements related to this oversea business, into
the disposal profits and losses of the current period. If the overseas business is disposed of partially, the enterprise shall calculate
the balance arising from the translation of foreign currency statements of the part of disposal based on the disposal rate and shall
shift them into the profits and losses of the current period.

Article 15

Where an enterprise does not choose RMB as its functional currency, it shall translate its financial statements into RMB financial
statements according to Article 12 of the present Standard.

Chapter V Disclosure

Article 16

An enterprise shall, in its notes, disclose the following information related to the translation of foreign currencies:

(1)

The functional currency chosen by an enterprise and its overseas businesses and the reasons for such choice; if the functional currency
is changed, the grounds for the change shall be given;

(2)

If an approximate exchange rate is adopted, the method for the determination of the approximate exchange rate shall be given;

(3)

The balance of exchange which shall be recorded into the profits and losses of the current period; and

(4)

The effects of disposal of any overseas business on the balance arising from the translation of foreign currency financial statements.

the Ministry of Finance
2006-02-15

NOTICE OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON SOME ISSUES CONCERNING LAND VALUE-ADDED TAXES

Notice of the Ministry of Finance and the State Administration of Taxation on Some Issues concerning Land Value-added Taxes

Cai Shui [2006] No. 21
March 2, 2006

The public finance departments or bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly
under the Central Government and cities specifically designed in the state plan, and the finance bureau of Xinjiang Production and
Construction Corps.:

In pursuance of the spirit as embodied in the Interim Regulations of the People’s Republic of China on Land Value-added Taxes (hereinafter
referred to as the Regulations) and the detailed rules for the implementation thereof as well as relevant provisions, we hereby clarify
the relevant issues concerning land value-added taxes as follows:

As for issues concerning the tax collection and exemption in the sale of residential houses of ordinary standard as built by taxpayers
as well as in the transfer of ordinary residential houses by individual residents

The “residential houses of ordinary standard” as mentioned in Article 8 of the Regulations and the “ordinary residential houses”
as mentioned in Article 3 of the Notice of the Ministry of Finance and the State Administration of Taxation on Adjusting the Tax
Policies for the Real Estate Market (Cai Shui Zi [1999] No. 210) shall be recognized all according to the standards for the “small
or medium-sized ordinary residential houses at moderate and low prices” as formulated and publicized to the general public by the
people’s governments of each province, autonomous region or municipality directly under the Central Government in accordance with
the Notice of the General Office of the State Council transmitting the Opinions on Doing a Good Job in Stabilizing the Real Estate
Price of the Ministry of Construction and Other Departments (Guo Ban Fa [2005] No. 26). Where any taxpayer builds ordinary residential
houses as well as other commercial houses, the amount of land added values shall be verified respectively.

As for ordinary standard residential houses, for which, before the day when this document is publicized, an application for tax exemption
has been filed to the tax authority at the locality of the real estate and has been given the treatment of exemption from land value-added
taxes upon examination in accordance with the standards for ordinary standard residential houses as determined by the people’s governments
of a province, autonomous region or municipality directly under the Central Government, adjustment shall be retroactively made to
the exempted land value-added taxes.

II.

As for Issues concerning the Calculation under the Item of Deduction in the Transfer of Old Houses

Where any taxpayer transfers any old house or building, if he fails to obtain the assessed price but is able to provide the house
purchase invoice, the amount under the item of deduction as provided for in items (1) and (3) of Article 6 of the Regulations may,
upon the recognition of the local tax authority, be calculated in light of an increased interest rate of 5% on an annual basis of
the amount held on it for a term spanning from the year of purchase to the year of transfer. As for the deed tax by a taxpayer when
purchasing a house, if the relevant deed tax payment certificate can be presented, it may be deducted as “tax relating to the transfer
of real estate” and shall not be included into the base corresponding to the interest rate of 5%.

As to the transfer of any old house or building, in the case of no relevant assessed price or house purchase invoice, the local tax
authority may conduct tax collection upon verification in accordance with the provisions of Article 35 of the Law of the People’s
Republic of China on Tax Collection and Administration (hereinafter referred to as the Tax Collection and Administration Law).

III.

As for issues concerning the advance collection of land value-added taxes as well as the settlement thereof

All regions shall further improve the measures on the advance collection of land value-added taxes, and decide the advance collection
rate in a scientific and reasonable manner and adjust it at a proper time in light of the value addition level of the real estate
as well as the market development condition within the respective regions and on the basis of the different house categories such
as ordinary houses, non-ordinary houses and commercial houses. After a project is completed, the relevant settlement shall be made
in a timely manner, with any overpayment refunded or any underpayment supplemented.

In case any tax fails to be paid in advance during the advance collection term, the late fees shall be collected additionally as of
the day next to the expiration of the prescribed advance collection term in accordance with the relevant provisions of the Tax Collection
and Administration Law as well as the detailed rules for its implementation.

As for any real estate project that has been finished and has gone through the check and acceptance, where the building area of the
real estate as transferred makes up 85% or more of the salable building area, the tax authority may require the relevant taxpayer
to conduct settlement of land value-added taxes on the transferred real estate in light of the matching principles regarding the
proportion between the income as generated from the transfer of real estate and the amount under the item of deduction. The specific
settlement methods shall be provided for by the local tax authority of a province, autonomous region, municipality directly under
the Central Government and city specifically designed in the state plan.

IV.

As for issues concerning the tax collection and exemption for the real estate as transferred by a taxpayer himself due to the relocation
as required for the implementation of urban planning and state construction

In Paragraph 4 of Article 11 of the Detailed Rules for Implementing the Interim Regulations of the People’s Republic of China on
Land Value-added Taxes, it prescribes that the relocation due to “the implementation of urban planning” refers to the relocation
since that the reconstruction of an old city or enterprise pollution or disturbing the residents (producing so excessive waste gases,
waste water, waste residues and noises, that the life of urban residents is affected to a certain degree) and thus the government
or the relevant administrative departments of the government decides and thereafter carries out the relocation in light of the urban
planning that has been examined and approved; the “relocation as required by state construction” refers to a situation under which
relocation is required for the purpose of implementing any construction project that has been approved by the State Council, a provincial
people’s government, or the relevant ministry or commission of the State Council.

As for Issues concerning the tax collection and exemption for the investment or joint management with real estate

As for any investment or association by using land (real estate) as payment for the purchase of shares, where an enterprise involved
in the investment or joint management engages in the real estate development or where any other real estate development enterprise
makes investment or conducts joint management with the commercial houses built by itself, it shall not be subject to Article 1 of
the Notice of the Ministry of Finance and the State Administration of Taxation on the Provisions on Some Specific Issues regarding
Land Value-added Taxes (Cai Shui Zi [1995] No. 048) on the interim exemption of land value-added taxes.

VI.

The present Notice shall go into effect as of March 2, 2006.

Ministry of Finance, State Administration of Taxation
2006-03-02

CIRCULAR OF THE MINISTRY OF FINANCE ON THE RELEVANT ISSUES CONCERNING ENTERPRISE ACCOUNTING TREATMENTS AFTER THE EFFECT OF THE COMPANY LAW

Ministry of Finance

Circular of the Ministry of Finance on the Relevant Issues concerning Enterprise Accounting Treatments after the effect of the Company
Law

No. 67 [2006] of the Ministry of Finance

March 15, 2006

To the departments (bureaus) of finance of all provinces, autonomous regions, municipalities directly under the Central Government
and cities under separate state planning, and the bureau of finance of Xinjiang Production and Construction Corp., all the relevant
ministries and commissions of and the relevant institutions directly under the State Council, and all the enterprises directly under
the Central Government,

The Company Law of our country amended and adopted for the third time has come into force as of January 1, 2006, and we hereby circulate
a notice on the enterprise accounting treatments as follows:

On the Appraisal of Capital Contributions in the form of In-kind Capital

According to Article 27 of the Company Law, where an enterprise establishes a company by the capital contributions of substance,
intellectual property right, land use right or other non monetary assets, the aforesaid capital contributions shall be subject to
appraisal and pricing to verify the assets. Where a state-owned or state holding enterprise makes capital contributions in non monetary
assets or accepts the capital contributions in non monetary assets from other enterprises, it shall entrust a qualified asset appraisal
institution for asset appraisal in accordance with the relevant state provisions on asset appraisal; and the appraisal of capital
contributions in other non monetary assets shall be conducted by referring to the aforesaid provisions.

II.

On the Disposal of the Balance of Public Welfare Funds

An enterprise established according to the Company Law shall not draw public welfare funds when it distributes profits according to
Article 167 of the Company Law after January 1, 2006. At the same time, the State-owned enterprises and other enterprises shall
abolish the system of public welfare funds simultaneously in order to keep the coherence between the accounting policies of the enterprises.
With respect to the balance of public welfare funds before December 31, 2005, the enterprise shall put it under the management and
use of the surplus reserves; the deficit of public welfare funds shall be made up by the surplus reserves, capital reserves and the
undistributed profits of the previous year in sequence, and it shall be carried forward to the account of undistributed profits and
be made up by the after-tax profits realized in the later years where there still remains deficits.

Where an enterprise carries out the reform of housing system upon approval, it shall abide by the Notice on the Relevant Accounting
Treatments in the Reform of Enterprise Housing System (Cai Qi [2000] No.295) and the Supplementary Notice on the Relevant Accounting
Treatments in the Reform of Enterprise Housing System (Cai Qi [2000] No. 878) in the process of implementation. An enterprise shall
not purchase or build houses for its employees any more and shall not arrange the relevant expenses in surplus reserves after carrying
out the housing monetization reform according to the uniform State provisions.

With respect to the expenses for purchasing fixed assets necessary for the staff canteen, infirmary, nursery and other welfare institutions
originally operated by the public welfare funds, an enterprise that has not peeled the social functions from itself or has not implemented
the segmentation between main and supplementary businesses and restructuring of the latter shall be subject to examination and approval
in strict accordance with the procedures and privilege prescribed in the internal accounting system of the enterprise, and shall
implement the relevant management system regarding the production and operational assets of the enterprise.

After an enterprise abolishes the system of public welfare funds, if the board of directors of a foreign-funded enterprise decides
to continuously draw the staff bonus and welfare fund, it shall be subject to the liability management, with the purposes, conditions
and procedures for the use thereof being specified.

III.

On the Issue of Accounting Treatments After a Joint-stock Limited Company Purchase its Own Stocks

Where a joint-stock limited company repurchases its own stocks in light of Article 143 of the Company Law, it shall carry out the
accounting treatments according to the following requirements:

The stocks repurchased by a company shall be subject to the management of treasury stocks before cancellation or transfer, and all
the expenses in the stock repurchase shall be transferred into the cost of treasury stocks. However, in case of the stock repurchase
resulted from the merger with any other company that holds its stocks, the cost of treasury bonds shall be determined on the basis
of the book value of the relevant investments of its stocks held by the other company provided that both participants of the merger
are ultimately controlled by a same shareholder both before and after the merger; and if they are not ultimately controlled by a
same shareholder, the cost of treasury stocks shall be determined on the basis of the fair value of the relevant investments of its
stocks held by the other company.

When the treasury stocks are cancelled, the capital stocks shall be correspondingly reduced on the basis of the amount of the stocks
that are cancelled, and the surplus of the cost of treasury stocks over the corresponding capital stocks shall be used to write off
the capital reserves, surplus reserves and the undistributed profits of the previous year in sequence; and the capital reserves shall
be increased for the deficit of the cost of treasury stocks over the corresponding capital stocks.

When the treasury stocks are transferred, the surplus of incomes incurred from the transfer over the cost of treasury stocks shall
be used to increase the capital reserves; and the deficit over the cost of treasury stocks shall be used to write off the capital
reserves, surplus reserves and the undistributed profits of the previous year in sequence.

ii.

With respect to the stocks repurchased due to the implementation of employee equity incentive plans, the stocks to be repurchased
shall not be more than 5% of the total amount of the stocks the company issues, and the required capital shall be within the amount
of profits that can be distributed to the investors in the current term.

Where the date when the general assembly of shareholders adopts the employee equity incentive plans and the date of stock repurchase
do not fall in the same year, the company shall preserve the expense for the planned repurchase in the profits that can be distributed
to the investors in the current term, and the preserved profits shall not be distributed any more when the employee equity incentive
plans are adopted.

When the company repurchases the stocks, it shall transfer all the expenses for stock repurchase into the cost of treasury stocks,
and simultaneously transfer the profits to be distributed to investors into the capital reserves in light of the amount of expenses
for the repurchase.

iii.

The treasury stocks shall not be used in the profit distribution of the company, and a joint-stock limited company shall reflect it
as the deduction item of ownership rights and interests.

IV.

This Notice shall come into force as of April 1, 2006. In case of any problem encountered in the implementation thereof, please timely
report it to this Ministry.

Ministry of Finance
2006-03-15

ANNOUNCEMENT NO.44, 2006 OF THE GENERAL ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE OF THE PEOPLE’S REPUBLIC OF CHINA, ON ADJUSTING THE EXAMINING AND APPROVING OF THE LABEL SYSTEM ON IMPORT AND EXPORT FOODSTUFF AND COSMETICS

General Administration of Quality Supervision, Inspection and Quarantine

Announcement No.44, 2006 of the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic
of China, on Adjusting the Examining and Approving of the Label System on Import and Export Foodstuff and Cosmetics

[2006] No. 44

March 24, 2006

Announcement on Adjusting the Examining and Approving of the Label System on Import and Export Foodstuff and Cosmetics In order to
act in the spirit of the State Council of reforming administrative examination and approval, simplify procedures, make things convenient
for import and export, after studying, it is decided to adjust the examining and approving of label system on import and export foodstuff
and cosmetics and it is hereby announced:

The label for import foodstuff and cosmetics must accord with the provisions of Chinese laws regulations and coercive standards
(corresponding laws regulations and standards may be downloaded from www.aqsiq.gov.cn /safety of import & export foodstuff and
cosmetics /label management of foodstuff and cosmetics). The label of export foodstuff and cosmetics must meet the requirements of
the import country /region.

As of April 1, 2006, the label of import and export foodstuff and cosmetics will be examined and approved together with the inspection
and quarantine of import and export foodstuff and cosmetics and will not be applied for pre-examination and approval. The authorities
concerned at all levels will not accept and handle the application for pre-examination and approval of the label of import and export
foodstuff and cosmetics. The exit and entry inspection and quarantine authority shall not ask for the application for coercive inspection
by Label Examination and Approval Certificate of Import and Export Foodstuff and Cosmetics.

Local exit and entry inspection and quarantine authorities shall, while carrying out inspection and quarantine of import and export
foodstuff and cosmetics, examine whether the content of the label meet the requirements of laws, regulations and standards and examine
the truthfulness and accuracy of the content relating to quality. To the label passing the examination, “Label Passing the Examination”
shall be indicated in the inspection certificate provided according to rules.

The label of import foodstuff and cosmetics that does not accord with the provisions of national laws, regulations and coercive standards
before October 1, 2006 may be altered under the supervision of exit and entry inspection and quarantine authority and shall be granted
clearance according to rules.

As of October 1, 2006, any label of import foodstuff and cosmetics that does not accord with the provisions of relative laws, regulations
and standards of our country shall be handled according to the provision of Article 19 of Implementation Regulations of Inspection
Law for Import and Export Goods of the People’s Republic of China, and any label of export foodstuff and cosmetics that does not
accord with the regulations of import country/ region shall be handled according to the provision of Article 27 of Implementation
Regulations of Inspection Law for Import and Export Goods of the People’s Republic of China.

The Label Approval Certificate for Import (Export) Foodstuff and Cosmetics that has already been obtained is still valid. The label
of import and export foodstuff may be exempted from label examination if the content of it accords with the content indicated in
the approval certificate.

If it needs to change a new certificate because of the changes of new requirements in General Standard for Label of Prepackaged Food
of the People’s Republic of China (GB7718-2004), General Standard for Label of Prepackaged Special Foods of the People’s Republic
of China (GB13432-2004) and other new standards, the certificate shall be changed in accordance with the provisions of the Announcement
of Examining and Changing the Label Approval Certificate for Import Foodstuff. The closing date for changing the certificate is May
1, 2006. Hereafter, any certificate that does not accord with new requirements due to the changes of the requirements of laws, regulations
or standards shall become invalid automatically.

The inspection and quarantine authorities shall, while inspecting and quarantining import and export foodstuff and cosmetics, including
label examination and approving, testing and checking, collect the charges uniformly according to the standard for inspection and
quarantine charges, shall not collect any charges for label examination.

General Administration of Quality Supervision, Inspection and Quarantine

March 24, 2006

General Administration of Quality Supervision, Inspection and Quarantine
2006-03-24

NOTIFICATION NO.8, 2006 OF FOREIGN ASSISTANCE PROJECT BID BOARD OF THE MINISTRY OF COMMERCE

Notification No.8, 2006 of Foreign Assistance Project Bid Board of the Ministry of Commerce

Tong Gao [2006] No.8

Foreign Assistance Project Bid Board of the Ministry of Commerce held the 8th regular meeting on April 13, 2006. Matters of concern
and resolution are notified as follows:

The internal total contract price for the follow-up tasks for Indonesia Movable House assistance project was examined and approved

The implementation mode of Turkmenistan Velour Factory assistance project was discussed. Because the silk velvet technical is un-normative;
the equipments are un-standard and the workers are finite, it is difficult to determine the implementation enterprise by tender mode
owing to specific reasons Because of the urgency of the project, the Bid Board decided to have tender discussion with Shanxi Zhongxu
International Trade and Industry Co., Ltd. which has been in Turkmenistan for a long time and has good performance in the country.

The tender mode of Mongolia Tractor and Irrigation Quipment assistance project was discussed. The Bid Board adopted limited invitation
tender mode, and 9 enterprises Suntime International Techno-Economic Cooperation (Group) Co., Ltd., Tianjin Machinery Import &
Export Corporation, China Machine Building International Corporation, Suzhou Hengrun Import & Export Corp., Ltd., China National
Machinery Imp. & Exp. Corp., China National Pharmaceutical Foreign Trade Corporation, China Xinjiang Tacheng Sanbao Import &
Export Company, Northern International Group Co., Ltd. and China National Automotive Industry Imp. & Exp. Corporation will be
invited to participate in the bid. Specific matters of concern shall be notified later.

The follow-up implementation mode of The Republic of Congo Bouenza Hydropower Station Maintenance assistance Project was discussed.
Because of the continuity and urgency of the project, the Bid Board decided that:

(1)

The materials supply, equipment installation and follow-up civil engineering construction tasks, which are not qualified with tender
conditions, of the project shall be determined by tender discussion with NUCTECH Company Limited.

(2)

The supplier of equipments and materials, which are qualified with tender conditions, shall be determined by tender mode.

Foreign Assistance Project Bid Board of the Ministry of Commerce

April 19, 2006

Foreign Assistance Project Bid Board of the Ministry of Commerce
2006-04-19

REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON THE ADMINISTRATION OF THE IMPORT AND EXPORT OF ENDANGERED WILD ANIMALS AND PLANTS

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

No. 465

The Regulations of the People’s Republic of China on the Administration of the Import and Export of Endangered Wild Animals and Plants,
which were adopted at the 131st executive meeting of the State Council on April 12, 2006, is hereby promulgated and shall enter into
effect as of September 1, 2006.
Wen Jiabao, Premier of the State Council,

April 29, 2006

Regulations of the People’s Republic of China on the Administration of the Import and Export of Endangered Wild Animals and Plants

Article 1

The present Regulations is formulated for the purpose of intensifying administration on the import and export of endangered wild
animals and plants as well as the products thereof, protecting and reasonably utilizing the resources of wild animals and plants
and performing the Convention on the International Trade of Endangered Species of Wild Animals and Plants (hereinafter referred to
as the Convention).

Article 2

The import or export of the endangered animals and plants as well as the products which are restricted by Convention, shall be subject
to the present Regulations.

As to the export of the endangered animals and plants as well as the products thereof under the special protection of sour country
exporting , the relevant provisions of the present Regulations on the export of endangered animals and plants as well as the products
thereof shall be applied.

Article 3

The competent departments of forestry and agriculture (fishery) of the State Council (hereinafter referred to as the competent departments
of endangered animals and plants under the State Council) shall, in light of their duties and work division, take charge of the administration
of the import and export of endangered animals and plants as well as the products thereof throughout the country and well do the
relevant work related to the performance of the Convention.

Other relevant departments of the State Council shall, according to the provisions of relevant laws and administrative regulations,
well do the relevant work within their respective functions and duties.

Article 4

The state administrative organs in charge of the import and export of endangered species shall perform the Convention on behalf of
the Chinese Government, and shall, according to the provisions of the present Regulations, issue upon verification Import/Export
Permission Certificates for the wild animals and plants as well as the products thereof under the special protection of the state,
whose export has been approved by the competent departments of endangered animals and plants under the State Council, as well as
the endangered wild animals and plants and the products thereof, whose import or export has been restricted by the Convention yet
approved by the competent departments of endangered animals and plants under the State Council.

Article 5

The state scientific institutions for the import and export of endangered species shall, according to the present Regulations, organize
the relevant experts in terrestrial wild animals, aquatic wild animals and wild plants to engage in the science consultation on the
import and export of endangered wild animals and plants as well as the products thereof.

Article 6

It is prohibited to import or export any endangered wild animals and plants as well as the product thereof, whose import or export
is prohibited by the Convention for any purpose of commercial trade. Where any import or export is required for such special reasons
as scientific research, domestication and propagation, artificial cultivation and cultural exchange, it shall be subject to the approval
of the competent departments of endangered animals and plants under the State Council. In the case of any matter subject to the approval
of the State Council according to relevant provisions, it shall be reported to the State Council for approval.

It is prohibited to export any wild animals and plants and products there of with a great values, whose name is yet to be decided
or which is newly found , and any wild animal and plant and the product thereof whose export has been prohibited by the State Council
or the competent departments of endangered animals and plants under the State Council.

Article 7

The import or export of endangered animals and plants as well as the products thereof, which are restricted by the Convention to
be imported and exported, and the export of wild animals and plants as well as the products thereof that have been restricted by
the State Council or the competent departments of endangered animals and plants under the State Council, shall be subject to approval
of the competent departments of endangered wild animals and plants under the State Council.

Article 8

The import of endangered wild animals and plants as well as the products thereof shall meet the requirements as follows:

(1)

The utilization of endangered wild animals and plants as well as the products thereof meets the relevant provisions of the State;

(2)

Having effective control measures and meeting the requirements for ecological security;

(3)

The materials as provided by the relevant applicant are authentic and effective; and

(4)

Meeting any other requirement as publicized by the competent departments of endangered animals and plants under the State Council.

Article 9

The export of endangered wild animals and plants as well as the products thereof shall meet the requirements as follows:

(1)

Meeting the requirements for ecological security as well as public benefits;

(2)

The origins are legal;

(3)

The materials as provided by the relevant applicant are authentic and effective;

(4)

Not falling within the prohibited categories of export as prescribed by the State Council or the competent departments of endangered
animals and plants under the State Council; and

(5)

Meeting any other requirement as publicized by the competent departments of endangered animals and plants under the State Council.

Article 10

When importing or exporting any endangered wild animals and plants as well as the product thereof, an applicant shall file an application
with the competent departments of wild animals and plants of the province, autonomous region or municipality directly under the Central
Government where he is located, and submit the following materials as well:

(1)

The Import/Export Contract;

(2)

The names, varieties, quantities and purposes of use of endangered wild animals and plants as well as the products thereof;

(3)

Instruction of materials on the facilities for loading and transporting live endangered wild animals and plants as well as the products
thereof; and

(4)

Other materials that shall be submitted, as are publicized by the competent departments of endangered animals and plants under the
State Council.

The relevant competent departments of wild animals and plants of the province, autonomous region or municipality directly under the
Central Government shall, within 10 workdays as of receiving the applications, subscribe the materials with there opinions and transfer
all the application materials to the competent departments of endangered animals and plants under the State Council.

Article 11

The competent departments of endangered animals and plants under the State Council shall make a decision on approval or disapproval
and notify the relevant applicant in written form, within 20 workdays as of receiving the application. If the competent departments
fail to make a decision within 20 workdays, the term may, upon the approval of the principal thereof, be extended for 10 workdays,
and the extended term and relevant explanations thereon shall be noticed to the relevant applicant.

Article 12

Where an applicant has obtained the relevant approval documents for the import or export from the competent departments of endangered
animals and plants under the State Council, he shall, within the effective time limit as prescribed in the approval documents, apply
to the state competent organs in charge of the import and export of endangered wild animals and plants for verifying and issuing
an Import/Export Permission Certificate.

The following materials shall be submitted when applying for verifying and issuing an Import/Export Permission Certificate:

(1)

An Application Form for the Import/Export Permission Certificate;

(2)

The Approval Documents for Import or Export; and

(3)

The Import / Export Contract.

In the case of import of any endangered wild animals and plants or any of product thereof, whose import or export is restricted by
the Convention, an applicant shall additionally submit the relevant certification materials on export permission as verified and
issued by the competent departments of endangered wild animals and plants of the export country (region). In the case of export of
any endangered wild animals and plants or any of product there of, whose import or export is restricted by the Convention for any
purpose of commercial trade, an applicant shall additionally submit the relevant certification materials on import permission as
verified and issued by the competent departments of endangered wild animals and plants of the import country (region). In the case
of any re-export of endangered wild animals and plants as well as the products thereof, which have been imported, an applicant shall
additionally submit the relevant declaration form of imported goods as subscribed by the customs as well as the import permission
certificates as signed by the customs.

Article 13

The administrative organ in charge of the import and export of endangered wild animals and plants shall, within 20 workdays as of
receiving the application, make a decision on examination. Where the application materials are complete and meet the provisions of
the present Regulations as well as the requirements of the Convention, an Import/Export Permission Certificates shall be issued upon
verification. In the case of disapproval for issuing an Import/Export Permission Certificates upon verification, the disapproval
shall be noticed to the applicant and the competent departments of endangered animals and plants under the State Council in written
form, and the relevant explanations shall be given. Where a decision cannot be made within 20 workdays, the term may, upon the approval
of the principal of the administrative organ in charge of the import and export of endangered wild animals and plants, be extended
for 10 workdays, and the extended term and the relevant explanations thereon shall be noticed to the relevant applicant.

In case the administrative organ in charge of the import and export of endangered wild animals and plants finds any application material
failing to meet the relevant requirements when carrying out an examination, it shall inform the applicant in a one-off manner of
all the contents that shall be supplemented and corrected.

Article 14

Where the state administrative organ in charge of the import and export of endangered wild animals and plants needs, during the process
of verifying and issuing an Import/Export Permission Certificates, to consult the opinions of the state scientific institution for
the import and export of endangered wild animals and plants or needs to confirm the relevant contents of the certification materials
on import/export permission with the relevant overseas institutions, it shall transfer the relevant materials to the state scientific
institution for the import and export of endangered wild animals and plants for consulting or to the relevant overseas institutions
for confirming the relevant contents within 5 workdays as of receiving the application. The time for consulting opinions and confirming
contents shall not be calculated into the workdays for the verification and issuance of the Import/Export Permission Certificates.

Article 15

The competent department of endangered animals and plants under the State Council, the competent departments of wild animals and
plants of provinces, autonomous regions and municipalities directly under the Central Government as well as the state administrative
organ in charge of the import and export of endangered wild animals and plants shall, when conducting the examination and approval
of endangered wild animals and plants as well as the products thereof, not charge any fee other than the fees as provided for by
the state.

Article 16

Where any import or export of endangered wild animals and plants or any of its products has led to or may lead to any serious injury
or negative impact on the resources of wild animals and plants or ecological security, the competent departments of endangered animals
and plants under the State Council shall bring forward the relevant measures for temporarily prohibiting or restricting the import/export
of endangered wild animals and plants as well as the products thereof, and carry them out after reporting them to the State Council
for approval.

Article 17

As to any endangered wild animals and plants or any of products thereof, which are obtained from a sea area not falling within the
jurisdiction of any country, and enters into the territory of China, they shall be subject to the relevant provisions of the present
Regulations.

Article 18

Where any import of endangered wild animals and plants as well as the products thereof relates to the administration of foreign species,
or any export thereof relates to the management of seed resources, it shall be subject to the relevant provisions of the state.

Article 19

The import or export of endangered wild animals and plants as well as the products thereof shall be carried out at the ports, which
are appointed by the competent department of endangered animals and plants under the State Council in coordination with the General
Administration of Customs and the State Administration of Quality Supervision, Inspection and Quarantine, and are approved by the
State Council.

Article 20

The import or export of endangered wild animals and plants as well as the products thereof shall be conducted in light of the varieties,
quantity, port and time limit as prescribed on the Import/Export Permission Certificate.

Article 21

As to any import or export of endangered wild animals and plants as well as the products thereof, the relevant importer or exporter
shall submit to the customs the Import/Export Permission Certificate, be subject to the customs supervision, and shall, within 30
days as of customs release, submit to the state administrative organ in charge of the import and export of endangered species a duplicate
copy of the Import/Export Permission Certificate that has been verified by the customs for archival filing.

Any departure from the territory, transfer or transshipment of endangered wild animals and plants as well as the products thereof
shall be subject to the customs supervision throughout the period from the time of arrival into the territory to the time of departure
from the territory.

Any endangered wild animals and plants or any of its products, which goes into or out of specific customs surveillance zones or bonded
places such as the bonded zones and export processing zones, shall be subject to the customs supervision and shall go through the
relevant formalities for import or export in light of the provisions of the General Administration of Customs as well as the state
administrative organ in charge of the import and export of endangered species.

Any import or export of endangered wild animals and plants as well as the products thereof shall be declared to the entry and exit
inspection and quarantine organ on the strength of the relevant Import/Export Permission Certificate and shall be subject to its
inspection and quarantine.

Article 22

The state administrative organ in charge of the import and export of endangered species shall in time report the relevant materials,
based on which an Import/Export Permission Certificate is verified and issued, as well as the annual import/export summary of endangered
wild animals and plants as well as the products thereof to the competent department of endangered animals and plants under the State
Council as well as other competent departments.

Article 23

The approval documents for import or export shall be printed and formulated uniformly under the organization of the competent department
of endangered animals and plants under the State Council. The Import/Export Permission Certificates and the Application Forms thereof
shall be printed and formulated uniformly under the organization of the state administrative organ in charge of the import and export
of endangered species.

Article 24

Where any functionary of the competent department of endangered wild animals and plants or the state administrative organ in charge
of the import and export of endangered species takes advantage of his duties and functions to collect any other’s property or enlists
any other interest, or approve the relevant import or export or verify and issue the Import/Export Permission Certificate not according
to the provisions of the present Regulations, in case the circumstance is serious and a crime is constituted, he shall be subject
to criminal liabilities according to law. Where a crime is not constituted, he shall be imposed upon a sanction according to law.

Article 25

Where any functionary of the state scientific institution for the import or export of endangered species takes advantage of his functions
and duties to collect any other’s property or enlists any other interest, or produces any false opinion, in case the circumstance
is serious and a crime is constituted, he shall be subject to the criminal liabilities according to law. If a crime is not constituted,
he shall be imposed upon a sanction according to law.

Article 26

Where any endangered wild animals and plants or any of its products is illegally imported or exported or smuggled in any other way,
the violator shall punished according to the relevant provisions of the Customs Law. In case the circumstance is serious and a crime
is constituted, he shall be subject to criminal liabilities according to law.

The articles as fined and confiscated shall be transferred to the competent departments of wild animals and plants for legal disposal.
If any fined and confiscated article shall be subject to quarantine according to law, it shall be disposed of after passing the quarantine.
If any fined and confiscated article shall be returned to its original export country (region), it shall be transferred by the competent
department of wild animals and plants to the state administrative organ in charge of the import and export of endangered species
for disposal according to the relevant provisions of the Convention.

Article 27

Where any approval document for import or export or any Import/Export Permission Certificate is forged, sold for profits or transferred,
the competent department of wild animals and plants or the competent department for industry and commerce shall punish the violators
in light of their functions and work division according to law. If the circumstance is serious and a crime is constituted, the violators
shall be subject to criminal liabilities according to law.

Article 28

The present Regulations shall enter into effect as of September 1, 2006.

The State Council
2006-04-29

TRANSACTION REGULATIONS OF SHANGHAI STOCK EXCHANGE

Circular of Shanghai Stock Exchange on Promulgating the Transaction Regulations of Shanghai Stock Exchange

All the member entities:

The Transaction Regulations of Shanghai Stock Exchange upon approval of China Securities Regulatory Commission (CSRC) is herby promulgated
and shall go into effect as of July 1, 2006, and the related detailed regulations for business operations shall be separately promulgated.

Shanghai Stock Exchange

May 15, 2006

Transaction Regulations of Shanghai Stock Exchange
Chapter I General Provisions

1.1

In order to regulate the transactions in the securities market, maintain the order of the securities market, and protect the lawful
rights and interests of investors, this Regulations is instituted in accordance with the Securities Law of the People’s Republic
of China and other laws, administrative regulations, ministerial regulations and the Articles of Association of Shanghai Stock Exchange.

1.2

The transactions in respect of the listed securities and their derivatives (hereinafter referred to as securities uniformly) of Shanghai
Stock Exchange (hereinafter referred to as this Exchange) shall be governed by these Regulations. Any matter that has not been prescribed
by these Regulations shall be governed by other related provisions of this Exchange.

1.3

The securities transactions shall follow the principles of openness, fairness and equity.

1.4

The securities transactions shall comply with the laws, administrative regulations, ministerial regulations and the related business
operational regulations of this Exchange, and the principles of free will, compensation and good faith.

1.5

The securities transactions shall employ the paperless centralized transactions and other methods upon the approval of CSRC.

Chapter II Trading Market

Section 1 Trading Places

2.1.1

This Exchange will offer trading places and facilities for the securities transactions, such as the exchange server, trading hall,
trading seats, offering system and related communications systems.

2.1.2

This Exchange sets up the trading hall. The members of this Exchange (hereinafter referred to as the member) may make declarations
by the traders assigned by them to the trading hall.

Except the special approval of this Exchange, those who allowed to enter into the trading hall shall be limited to the persons as
follows:

(1)

The registered traders; and

(2)

The personnel in the hall for supervision.

Section 2 Trading Participants and Trading Rights.

2.2.1

If a member or institution upon approval of this Exchange wants to enter into the market of this Exchange for the securities trading,
he/it shall hand in an application to this Exchange for getting a related seat or trading rights and becoming a trading participant
of this Exchange.

A trading participant shall do the securities trading through the Participant Business Unit opened upon application in this Exchange.

2.2.2

The “Participant Business Unit” refers to such a basic unit that a trading participant can take part in the securities trading of
this Exchange, enjoy and perform the related trading rights and accept the related business management of this Exchange.

2.2.3

The detailed Regulations for the management of Participant Business Unit and the limits of trading rights shall be respectively instituted
by this Exchange, and go into effect after being reported to and approved by the CSRC.

Section 3 Trading Varieties

2.3.1

The securities as follows may be listed in this Exchange:

(1)

Stocks;

(2)

Funds;

(3)

Bonds;

(4)

Treasury bonds repurchase (T-bond repurchase) ;

(5)

Warrants; and

(6)

Other trading varieties upon approval of the CSRC.

Section 4 Trading Hours

2.4.1

The trading days of this Exchange are from Monday to Friday every week.

On State legal holidays and the rest days announced by this Exchange this Exchange will rest.

2.4.2

Where the securities are traded by means of competitive bidding, 9:15 to 9:25 in every trading day shall be the time for the aggregate
auction of opening quotation; 9:30 to 11:30 and 13:00 to 15:00 shall be the time for continuous auction, except for the securities
to which the suspending trading and then the resumption of trading are implemented during the course of opening.

As approved by the CSRC and in accordance with the demands of the market development, the trading hours may be modulated by this Exchange.

2.4.3

In case the trading is suspended because of some reason within the trading hours, the trading hours will not be put off.

Chapter III Purchase and Sales of Securities

Section 1 General Provisions

3.1.1

Accepting the entrustment of purchase and sales from an investor, any member shall make declaration to this Exchange in accordance
with the entrustment, and be responsible for the related liabilities of trading and delivery.

If any member accepts the entrustment of purchase and sales from an investor and the transaction is completed, the investor shall
deliver the member with the securities it/he entrusts the member to sell out or the money by which it/he entrusts the member to buy
securities, as well as the member shall deliver the investor with the money gotten from the sales of securities or the securities
as purchased.

3.1.2

A member shall send out declaration orders of purchase or sales to the exchange server of this Exchange by the Participant Business
Unit it owns or other related sending means, and make conclusion of the transactions in accordance with this Regulations, and the
trading results and other trading records shall be sent to the member by this Exchange.

3.1.3

The entrustment and declaration records shall be properly kept by a member in accordance with the related provisions.

3.1.4

The securities purchased by any investor shall not be sold out before the delivery thereof, except that a turnaround transaction
is carried out.

The “securities turnaround transaction” refers to the securities which are purchased by an investor and will be totally or partly
sold out before the delivery upon the confirmation of the transaction.

3.1.5

Same-day turnaround transactions will be carried out for the bonds and warrants repurchase, and the next-trading-day turnaround transactions
will be carried out for B-shares.

3.1.6

This Exchange may carry out the system of primary dealers in accordance with the demands of the market, and the concrete measures
there for shall be respectively instituted by this Exchange and shall go into effect after being reported to and approved by the
CSRC.

Section 2 Designated Transactions

3.2.1

A system of all-around designated transactions shall be carried out for the securities trading in the market of this Exchange, except
for the foreign investors engaging in the B-share trading.

3.2.2

The “all-around designated transactions” means that an investor taking part in the securities sales in the market of this Exchange
shall designate a member ahead of time as its/his trustee of securities sales, and take part in purchasing or selling the securities
in the market of this Exchange through this member.

3.2.3

An agreement on designated transactions shall be reached between the member of designated transactions and an investor and in which
the rights, obligations and duties of both parties shall be made sure. Once the agreement on designated transactions is reached,
the member can hand in an application to the exchange server of this Exchange for dealing with the formalities for designated transactions
with the strength of the application of the investor.

3.2.4

This Exchange will accept the declaration orders for designated transactions during the period of opening, and these orders will
become valid immediately after being accepted by the exchange server.

3.2.5

If changing any designated transaction, an investor shall apply for cancellation to the designated member, and the member will make
declaration to cancel the order. As to the applications in line with the requirements for canceling the designation, no member may
limit, prevent or delay the formalities for dealing with the designation cancellation.

3.2.6

A new declaration for designated transactions may be made after the designated transactions are cancelled.

3.2.7

Other matters concerning designated transactions shall be carried out in accordance with the related provisions of this Exchange.

Section 3 Entrustment

3.3.1

When an investor buys or sells the securities, a securities account and a capital account shall be opened, and an entrustment agreement
on securities transactions shall be signed with a member. After the agreement goes into effect, the investor will become the client
of brokerage business of this member (hereinafter referred to as the client).

Investors shall deal with the opening of securities accounts in accordance with the provisions of the registration and clearing institutions
designated by this Exchange.

3.3.2

A client may entrust a member to buy or sell the securities by the self-help entrustment methods such as letters, phone calls, self-help
terminals, internet. The entrustment by phone calls, self-help terminals, internet and other self-help methods shall be dealt with
in accordance with the related provisions.

3.3.3

If a client taking part in the purchase or sales of securities by any self-help entrustment method, the member shall sign a self-help
entrustment agreement with the client.

3.3.4

Except otherwise herein provided for by this Exchange, an entrustment instruction of any client shall consist of:

(1)

The number of the securities account;

(2)

The code of the securities;

(3)

The direction of the deal;

(4)

The entrustment quantity;

(5)

The entrustment price; and

(6)

Other contents required by this Exchange and the member.

3.3.5

A member may be entrusted by a client to purchase or sell the securities by means of limit price order or market price order.

The “limit order” means that a member shall be entrusted by the client to buy or sell the securities at the prescribed price, and
a declaration shall be made by the member for purchasing the securities at the prescribed price or at a lower price and a declaration
shall be made for selling out the securities at the prescribed price or at a higher price.

The “market order” means that a member is entrusted by the client to buy or sell the securities at the market price.

3.3.6

Upon entrustment, a client may cancel the unconcluded transaction.

3.3.7

As to the entrustment cancelled or invalidated, upon confirmation, a member shall return the related capital or securities to the
client in time.

3.3.8

A member providing the securities financing services through the securities sales for its clients shall act in accordance with the
related provisions.

Section 4 Declaration

3.4.1

This Exchange will accept the declarations of competitive bidding of the members at 95 to 95, 90 to 110 and 130 to
150 every trading day.

The exchange server of this Exchange will not accept the declarations for the cancellation of orders at 9:20 to 9:25 of the aggregate
auction of opening quotation every trading day, and the transactions that haven’t been completed can be cancelled at any other time
for accepting declarations. And a declaration for cancellation will not become valid without confirmation of the exchange server
of this Exchange.

If it is considered to be necessary, this Exchange can make modulation on the time for accepting the declarations of the members.

3.4.2

Declarations shall be made in time by a member to this Exchange in accordance with the order by which it accepts the entrustments
of its clients.

3.4.3

This Exchange will accept the limit orders and market orders of the members.

3.4.4

In accordance with the demands of the market, this Exchange may accept the market orders of the types as follows:

(1)

The declaration of the conclusion of transactions at the best five prices and in real time and the cancellation of remaining orders,
namely, the transactions shall be completed in turn by taking the price of the counterpart as the transaction price within the best
five prices in real time of the counterpart, and the part of transactions that have not been completed shall be automatically cancelled;

(2)

The declaration of the conclusion of transactions at the best five prices and in real time and the change of the remaining transactions
into limit orders, namely, the transactions shall be completed in turn by taking the price of the counterpart as the transaction
price within the best five prices in real time of the counterpart, and the part of transactions that have not been completed shall
be changed into limit orders in accordance with the latest transaction price declared by this side; if no transaction in this declaration
is completed, the transactions shall be changed into limit orders in accordance with the best quotation of this side; and if there
is no declaration of this side, the declaration shall be cancelled;

(3)

Other types formulated by this Exchange.

3.4.5

The market orders shall only apply to the transactions of the securities with price limit during the course of continuous auction,
except otherwise herein provided for by this Exchange.

3.4.6

A limit order shall consist of the number of the securities account, the code of the seat, the code of the securities, the direction
of the deal, the quantity, the price, and etc.

A market order shall consist of the type of the declaration, the number of the securities account, the code of the seat, the code
of the securities, the direction of the deal the quantity, and etc.

A declaration order shall be transferred in the form prescribed by this Exchange. If it is considered to be necessary, this Exchange
may make modulation on the contents or methods of declaration.

3.4.7

As to the purchase of stocks, funds or warrants by means of competitive bidding, the declared quantity shall be 100 shares (units)
or the integral number of times thereof.

When selling the stocks, funds or warrants, the sales of the part less than 100 shares (units) shall be declared once and for all.

3.4.8

In the competitive bidding, the quantity upon declaration of the bonds transactions shall be one lot or the integral number of times
thereof, the quantity upon declaration of pledge-type repurchase of bonds shall be 100 lots or the integral number of times thereof,
as well as the quantity upon declaration of buy-out repurchase of bonds shall be 1,000 lots or the integral number of times thereof.

The 1,000 Yuan of par value of bonds in the bonds transactions or the buy-out repurchase of bonds shall be one lot, and the 1,000
Yuan of standard coupons in the pledge-type repurchase of bonds shall be one lot.

3.4.9

The largest amount in a single declaration of stock, fund or warrant transactions shall be less than one million shares (units),
the largest amount in a single declaration of transactions of bonds or pledge-type repurchase of bonds shall be less than 10,000
lots, as well as the largest amount in a single declaration of transactions of buy-out repurchase of bonds shall be less than 50,000
lots.

In accordance with the demands of the market, this Exchange may make modulation on the largest amount in a single securities declaration.

3.4.10

Different units of account shall be employed for the trading of different securities: the “price per share” for the stocks, the “price
per unit of funds” for the funds, the “price per unit of warrants” for the warrants, the “price per 100 Yuan of par value of bonds”
for the bonds, the “due annual proceeds per 100 Yuan of capital” for the pledge-type repurchase of bonds and the “due repurchase
price per 100 Yuan of par value of bonds” for the buy-out repurchase of bonds.

3.4.11

The minimum price variance unit for the transaction of A-shares, bonds or buy-out repurchase of bonds shall be 0.01 Yuan, 0.001 Yuan
for the transactions of funds or warrants, the 0.001 US Dollars for the transactions of B-shares, and 0.005 Yuan for the transactions
of pledge-type repurchase.

3.4.12

In accordance with the demands of the market, this Exchange may make modulation on the minimum price variance unit of the price upon
declaration and the declared quantity of a single transaction concerning each kind of securities.

3.4.13

The price limit to the transactions of stocks and funds shall be carried out by this Exchange, and the fluctuating proportion shall
be 10%, of which the fluctuating proportion of ST or *ST shares shall be 5%.

The formula for the fluctuating price of the shares and funds shall be as follows: Fluctuating Price = Previous Closing Price (1luctuating
Proportion).

The calculation result shall be the minimum price variance unit in accordance with the principle of rounding (to the nearest whole
number).

If it meets any of the circumstances as follows, the price limit shall not be carried out on the first listing day of stocks:

(1)

The initial public offering of stocks or close-end funds;

(2)

The issuance of additional listed shares;

(3)

The resumption of trading after the suspending of trading; or

(4)

Other circumstances recognized by this Exchange .

As approved by the CSRC, this Exchange may make modulation on the fluctuating proportion of the securities.

3.4.14

When buying or selling the securities with the price limit, the declaration during the price limit shall be valid, otherwise it shall
be an invalid declaration.

3.4.15

When buying or selling the securities without the price limit, the valid declared price at the stage of aggregate auction shall be
governed by the provisions as follows:

(1)

The declared price of stock transactions is between 200% and 50% of the previous closing price; and

(2)

The declared price for the fund or bond transactions is between 150% and 70% of the previous closing price.

There is no price limit for the T-bond repurchase transactions at the stage of aggregate auction.

3.4.16

When buying or selling the securities without the price limit, the valid price upon declaration at the stage of continuous auction
shall be governed by the provisions as follows:

(1)

The declared price is lower than 110% of the lowest selling price revealed in real time and higher than 90% of the highest buying
price revealed in real time; and simultaneously, lower than 130% of the average of the highest price upon declaration and the lowest
price upon declaration and higher than 70% of the aforesaid average;

(2)

In case there is no declared buying price revealed in real time, the lower one of the lowest selling price and the latest transaction
price revealed in real time shall be considered as the highest buying price mentioned in the preceding item; and

(3)

In case there is no declared selling price revealed in real time, the higher one of the highest buying price and the latest transaction
price revealed in real time shall be considered as the lowest selling price mentioned in the preceding item.

In case there is no transaction completed on the current day, the previous closing price shall be the latest transaction price.

In accordance with the demands of the market, this Exchange may make modulation on the provisions on the declared price limit.

3.4.17

A declaration shall be valid on the current day. If each competitive transaction declared can not be completed once and for all,
the art that has not been completed may continuously take part in the auction on the current day, except otherwise herein provided
for by this Measures.

Section 5 Auctions

3.5.1

The ways of aggregate auction and continuous auction shall be employed for the competitive securities transactions.

The “aggregate auction” refers to such a competitive method that the sales declarations as accepted during a certain period shall
be collectively matched once and for all.

The “continuous auction” refers to such a competitive method that the sales declarations shall be continuously matched item by item.

3.5.2

The sales declarations that are not completed during the period for the aggregate auction shall automatically carry out the continuous
auction.

Section 6 Conclusion of Transactions

3.6.1

The securities competitive bidding shall be matched by the principle of price and time priority as follows.

The principle of price priority at the time of transaction conclusion shall be: the declaration for the purchase at a higher price
shall take precedence over the declaration for the purchase at a lower price, and the declaration for the sales at a lower price
shall take precedence over the declaration for the sales at a higher price.

The principle of time priority at the time of transaction conclusion shall be: if the direction of the deal and the price are the
same, the former declarer shall have priority to the later declarer. The sequence of declarations shall be due to the time when the
exchange server accepts the declarations.

3.6.2

As to aggregate auction, the principle of determination of the transaction price shall be:

(1)

The price at which the maximum trading volume can be realized;

(2)

The price at which the declarations for the purchase at the price higher than the aforesaid price and the declarations for the sales
at the price lower than the aforesaid price shall all be transacted; and

(3)

The price at which all the transactions of either the buyer or the seller with the price identical with the aforesaid one shall all
be completed.

In case there are more than two prices upon declaration meeting the aforesaid conditions, the price upon declaration that makes the
smallest uncompleted transaction volume shall be the transaction price; and if there are still more than two prices upon declaration
that make the smallest uncompleted transaction volume meet the aforesaid conditions, their middle price shall be the transaction
price.

All the transactions under aggregate auction shall be completed at the same price.

3.6.3

As to continuous auction, the principle of determination of the transaction price shall be:

(1)

In case the highest price upon declaration for the purchase is the same as the lowest price upon declaration for the sales, the aforesaid
price shall be the transaction price;

(2)

In case the price upon declaration for the purchase is higher than the lowest price upon declaration for the sales revealed in real
time, the latter shall be the transaction price; and

(3)

in case the price upon declaration for the sales is lower than the highest price upon declaration for the purchase revealed in real
time, the latter shall be the transaction price.

3.6.4

In case the price reached in accordance with the principle of concluded transactions is not under the scope of minimum price variance
unit, the related minimum price variance unit shall be gotten in accordance with the principle of rounding (to the nearest whole
number).

3.6.5

After the sales declarations are matched by the exchange server, the transactions are completed. A transaction goes into effect when
the transaction is completed in accordance with the provisions in these Regulations, and both parties to the transaction shall accept
the trading result and undertake the obligation of liquidation and delivery.

In case a transaction is seriously affected by the force majeure, accident or illegal invasion into the trading system, this Exchange
may employ proper measures or consider the transaction to be invalid.

As confirmed by this Exchange and approved by the council thereof, proper measures may be employed for the clearly unfair transactions,
as well as a report shall be handed in to the CSRC.

As to the transactions that are against these Regulations and will seriously destroy the normal operation of the securities market,
this Exchange has the right to make announcement about the cancellation of the transactions. And the traders in violation of the
Regulations shall be responsible for the losses incurring there from.

3.6.6

As to the transactions completed in accordance with these Regulations, the trading results shall be determined based on the trading
data recorded in the exchange server of this Exchange.

3.6.7

The liquidation and delivery concerning the securities transactions shall be conducted by the registration and clearing institution
designated by this Exchange.

Section 7 Block Trades

3.7.1

The method of block trades may be employed for the securities sales implemented in this Exchange and meeting the conditions as follows:

(1)

The declared quantity of A-shares in a single transaction thereof is more than 500,000 shares, or the trading amount is more than
3 million Yuan;

(2)

The declared quantity of B-shares in a single transaction thereof is more than 500,000 shares, or the trading amount is more than
300,000 US Dollars;

(3)

The declared quantity of funds in a single block transaction is more than 3 million shares, or the trading amount is more than 3 million
Yuan;

(4)

The declared quantity of government bonds or the T-bond repurchase in a single block transaction thereof is more than 10,000 lots,
or the trading amount is more than 10 million Yuan;

(5)

The declared quantity of other bonds in a single transaction thereof is more than 1,000 lots, or the trading amount is more than 1
million Yuan.

In accordance with the demands in the market, this Exchange may make modulation on the minimum quota of block trades.

3.7.2

This Exchange will accept the declarations for block trades at 9:30 to 11:30 and 13:00 to 15:30 every trading day.

3.7.3

The declarations for block trades shall consist of the declarations of intent and the declarations of transaction that has been completed.

A declaration of intent shall consist of the number of the securities account, the code of the securities and the direction of the
deal and etc.

A declaration of transaction that has been completed shall consist of the number of the securities account, the code of the securities,
the direction of the deal, the price and quantity of the completed transaction and etc.

3.7.4

A declaration of intent shall be true and valid. If the price of the declaring party is unclear, it shall be considered that it is
willing to buy at the prescribed lowest price or sell out at the highest price at least; and if the quantity is unclear, it shall
be considered that it is willing to complete the transactions with the minimum declared quantity for a single block trade at least.

3.7.5

When the members accepting a declaration of intent (including the circumstance that any other member gives a more favorable price
than the declared one), the declaring party shall make the declaration of transaction that has been completed at least with one member
that has accepted the declaration of intent.

3.7.6

The transaction price of the block trade of securities with the price limit shall be determined by both parties to the transaction
under the scope of price limit on the current day.

The transaction price of the block trade of securities without the price limit shall be determined through the consultation of both
parties to the transaction based on up and down 30% of the previous closing price or between the highest and lowest prices of transactions
that have been completed on the current day.

3.7.7

Both parties to the transaction shall, after signing an agreement, make a declaration of transaction that has been completed to the
exchange server of this Exchange, and the transaction price of the declaration of transaction that has been completed shall agree
with the transaction quantity.

A declaration of transaction that has been completed shall not be changed or cancelled once it is confirmed by this Exchange, and
both parties to the transaction shall accept the transaction result.

3.7.8

A member shall make sure that the participants in block trades actually own the securities or capital related to the declaration
of intent or the declaration of transaction that has been completed.

3.7.9

The system of primary traders shall be carried out for the block trades of this Exchange concerning bonds.

A member upon approval of this Exchange may act as a primary trader, and carry out the business of bonds bilateral quotation by the
system of block trades of this Exchange.

3.7.10

A block trade shall not be calculated into the calculation of real-time market information and indices of this Exchange, as well
as the trading volume shall be calculated into the total securities trading volume after the block trade is closed.

3.7.11

As concluded of block trades every trading day, for block trades concerning stock or funds, this Exchange will publish the names
of the securities, the transaction price, the trading volume, the name of the business department of the member where both the buyer
and the seller make their transaction; for block trades concerning bonds or T-bond repurchase, this Exchange will publish the names
of the securities, the trading volume and the transaction price, etc.

Section 8 Transactions of T-bond Repurchase

3.8.1

The methods of buy-out repurchase and pledge-type repurchase, etc. may be employed for the transactions of T-bond repurchase.

3.8.2

The “buy-out repurchase of bonds” refers to such a kind of transaction in which both parties to the transaction stipulate that the
seller will buy back the same kind and amount of bonds from the buyer at the stipulated price on some day in the future, as the holder
of bonds sells the bonds to the purchaser.

The “pledge-type repurchase of bonds” refers to such a kind of transaction in which both parties to the transaction stipulate to return
the capital and remove the pledge after the expiration of the repurchasing period, as the holder of bonds pledges the bonds and obtains
the pledge financing from the trading counterpart by taking the quantity of standard coupons calculated at the rate of conversion
of standard coupons as the financial quota.

3.8

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Probate

CIRCULAR CONCERNING THE MEASURES TO CONTROL THE EXPORT OF PRODUCTS OF HIGH ENERGY CONSUMPTION, HIGH POLLUTION AND RESOURCE

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON PERTINENT TAX POLICIES FOR EXPORT OF PRODUCTS WITH GOLD INGREDIENTS

ANNOUNCEMENT OF NO.134, 2006 OF THE STATE ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE ON PROMULGATING THE INSTITUTION LIST ACQUIRING THE QUALIFICATION FOR INSPECTION AND APPRAISAL OF IMPORT AND EXPORT COMMODITIES

THE TECHNICAL POLICY FOR THE RECOVERY AND UTILIZATION OF AUTOMOBILE PRODUCTS

LETTER OF CHINA BANKING REGULATORY COMMISSION CONCERNING THE APPROVAL TO JAPAN MICHINOKU BANK LTD. TO CLOSE UP ITS WUHAN REPRESENTATIVE OFFICE

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 19 – FOREIGN CURRENCY TRANSLATION

NOTICE OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON SOME ISSUES CONCERNING LAND VALUE-ADDED TAXES

CIRCULAR OF THE MINISTRY OF FINANCE ON THE RELEVANT ISSUES CONCERNING ENTERPRISE ACCOUNTING TREATMENTS AFTER THE EFFECT OF THE COMPANY LAW

ANNOUNCEMENT NO.44, 2006 OF THE GENERAL ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE OF THE PEOPLE’S REPUBLIC OF CHINA, ON ADJUSTING THE EXAMINING AND APPROVING OF THE LABEL SYSTEM ON IMPORT AND EXPORT FOODSTUFF AND COSMETICS

NOTIFICATION NO.8, 2006 OF FOREIGN ASSISTANCE PROJECT BID BOARD OF THE MINISTRY OF COMMERCE

REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON THE ADMINISTRATION OF THE IMPORT AND EXPORT OF ENDANGERED WILD ANIMALS AND PLANTS

TRANSACTION REGULATIONS OF SHANGHAI STOCK EXCHANGE

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7