INTERIM MEASURES FOR THE ADMINISTRATION OF FUTURES INVESTOR SAFEGUARD FUNDS

No.38

The Interim Measures for the Administration of Futures Investor Safeguard Funds have been deliberated and adopted by China Securities
Regulatory Commission and the Ministry of Finance. They are hereby promulgated and shall enter into force as of August 1, 2007.

Chairman of China Securities Regulatory Commission Shang Fulin

Minister of Ministry of Finance of the People’s Republic of China Jin Renqing

April 19, 2007

Interim Measures for the Administration of Futures Investor Safeguard Funds
Chapter I General Rules

Article 1

In accordance with the Regulation on the Administration of Futures Trading, the present measures are formulated in order to protect
the legitimate rights and interests of futures investors.

Article 2

Futures investor safeguard fund (hereinafter referred to as safeguard fund) is a fund that is exclusively used for compensating investors’
losses of guaranty money when futures companies are in serious violation of related laws or rules, or fail to do well in risk control,
which may lead to a shortfall of guaranty money and severely endangers social stability and the safety of the futures market.

Article 3

Performing futures trading activities shall observe the principles of openness, fairness, justice and that investors shall make investment
decisions independently and assume responsibility for investment risks on their own.

In case any investor suffers losses from the fluctuation of the futures market or the change of the value of the product he/it invests
in, he shall assume the losses independently.

Article 4

Safeguard funds shall be raised according to the principle of taking from the market and being used for the market.

Article 5

Safeguard funds shall be uniformly managed and planned as a whole by China Securities Regulatory Commission.

Article 6

Management and operation of safeguard funds shall be implemented observing the principles of openness, reasonableness and effectiveness.

Article 7

The use of safeguard funds shall be performed observing the principles of ensuring the legitimate rights and interests of investors,
fair aid and making compensations on a pro ratio basis.

Chapter II Raise of Safeguard Funds

Article 8

The administrative organ of safeguard funds shall set up an exclusive account in the name of safeguard fund, and this account shall
be exclusively used for depositing safeguard funds.

Article 9

The start-up capital of safeguard funds shall be formed by a futures exchange with 15 percent of the total amount of risk reserves
as accumulated up to December 31st, 2006. The follow-up capital of a safeguard fund shall include:

(1)

Payment of 3 percent of the transaction commission charges as collected by the futures exchange against the futures company members;

(2)

Payment of 0.0005 percent to 0.0010 percent of the vicegerent trading volume made by futures companies out of their transaction commission
charges;

(3)

Other legal property recovered or accepted by the administrative organ of safeguard funds.

As for a futures company that has higher risks because of the deterioration of financial condition thereof or its failure to do well
in risk control, it shall pay the safeguard funds at a proportion whichever is higher, and the specific payment proportion of each
futures company shall be determined by China Securities Regulatory Commission according to the risk status of the company respectively.
All futures exchanges or futures companies shall list the safeguard funds as paid by themselves under its business cost.

Article 10

A futures exchange shall transfer the start-up capital that it shall pay into the exclusive account of safeguard funds within one
month as of the implementation of the present measures.

Futures exchanges and futures companies shall pay follow-up capital on quarterly manner. A futures exchange shall pay its due safeguard
funds of the previous season within 15 workdays as of the end of each season, and withhold and remit the safeguard funds that shall
be paid by futures companies at the proportion as prescribed of Article 9 in the present measures.

Article 11

In the case of any of the following circumstances, futures exchanges or futures companies may temporarily suspend the payment of
safeguard funds upon the approval of China Securities Regulatory Commission and the Ministry of Finance:

(1)

The total amount of safeguard funds reaches RMB 800 million;

(2)

It is suffering from a gross unexpected market risk or force majeure.

The scale, payment proportion and payment mode of safeguard funds shall be determined and adjusted by China Securities Regulatory
Commission according to the status of the futures market development and the market risk level, etc.

Article 12

Sources of safeguard funds may be diversified. Safeguard funds may accept private donations or any other legal property. The interests
as incurred from the safeguard funds and various kinds of incomes gained from operations thereof as well as other fruits incurred
shall fall into the safeguard fund.

Chapter III Management and Supervision of Safeguard Funds

Article 13

China Securities Regulatory Commission and the Ministry of Finance may designate a related organ to serve as the administrative organ
of safeguard funds, which manage safeguard funds on their behalf.

Article 14

The management of safeguard funds shall be performed in light of the principles of safety, stability and soundness to ensure the
safety of safeguard funds.

Safeguard funds may only be used for bank deposit, purchasing national bonds, bonds of the central bank (including instruments of
the central bank) and financial bonds as issued by central banking institutions, and in any other method as approved by China Securities
Regulatory Commission and the Ministry of Finance.

Article 15

Safeguard funds shall be used under independent management and separate accounts and be effectively isolated from other assets that
are under the management of the administrative organ of safeguard funds.

The administrative organ of safeguard fund shall prepare reports relating to the raising, management and use of safeguard funds on
regular manner, and shall submit the said reports to China Securities Regulatory Commission and the Ministry of Finance after audited
by an accounting firm.

Article 16

The administrative organ of safeguard funds, futures exchanges and futures companies shall appropriately keep the accounting vouchers,
account books, financial statements and other materials concerning the safeguard funds and ensure the integrity and genuineness of
the related accounting records and files.

Article 17

The Ministry of Finance shall take the responsibility of surveilling the financial affairs of safeguard funds. The annual revenue
and expenditure plan and final settlement of the account of safeguard funds shall be reported to the Ministry of Finance for approval.

Article 18

China Securities Regulatory Commission shall take the responsibility of surveilling the business operations of safeguard funds, and
shall make examination and inspection concerning the raising, management and use of safeguard funds regularly. China Securities Regulatory
Commission shall regularly report the general risk status of futures companies to the administrative organ of safeguard funds. A
futures company with moderately high risks shall submit its financial surveillance statements to the administrative organ of safeguard
funds on a monthly basis.

Chapter IV Use of Safeguard Funds

Article 19

In case a futures company is in serious violation of related laws and rules or fails to do well in risk control leading to shortfall
of any guarantee money, China Securities Regulatory Commission may make a decision on using the safeguard funds thereof to compensate
for the undischarged losses of guarantee money suffered by the investor in accordance with the present measures.

Article 20

With respect to the losses of guarantee money as suffered by a futures investor, it shall be compensated with the safeguard funds
thereof subject to the principles as follows:

(1)

As for the losses suffered by an individual investor, the part below RMB 100,000(including RMB 100,000) shall be compensated in full
amount, while the part exceeding RMB 100,000 shall be compensated at the rate of 90 percent;

(2)

As for the losses suffered by an institutional investor, the part below RMB 100,000 shall be compensated in full amount, while the
part exceeding RMB 100,000 shall be compensated at the rate of 80 percent.

If the current safeguard fund is not enough to make the compensation, the follow-up capital of safeguard funds shall be used to make
the compensation.

Article 21

China Securities Regulatory Commission and the administrative organ of safeguard funds shall surveil the related futures company
to verify the investors’ rights and interests and losses of guarantee money, actively liquidate its assets and convert them into
cash, and shall make up the shortfall of guarantee money firstly with its self-owned capital and the cash as converted from assets
liquidation before using any safeguard fund. It may make a decision of using the safeguard funds only when its own capital is not
enough to make up the shortfall or in the case of any emergency.

Article 22

As for the losses of guarantee money as suffered by an investor for his/its participation in illegal futures trading, it may not
be compensated with safeguard funds. In the case of any participation of an institutional investor in futures trading in the name
of an individual, the losses it suffered shall be compensated in accordance with the rules relating to compensation for institutional
investors.

Article 23

The administrative organ of safeguard fund shall acquire the right to be compensated accordingly after any safeguard fund is used
for compensating the losses of guarantee money as suffered by a futures investor, and may participate in the liquidation of futures
companies in accordance with related laws.

Article 24

The administrative organ of safeguard fund shall timely report the circumstances concerning the use, compensation and recovery of
safeguard funds to China Securities Regulatory Commission and the Ministry of Finance.

Chapter V Penalty Rules

Article 25

In case any futures company is in serious violation of related laws or fails to do well in risk control leading to any shortfall
of guarantee money, China Securities Regulatory Commission shall impose a punishment on it and revoke its futures business license
in accordance with Articles 70 and 71 of the Regulation on the Administration of Futures Trading. If it is suspected of being involved
in any crime, it shall be transferred to the judicial authorities.

Article 26

In case any futures exchange or futures company is in violation of the present measures by way of deferring the payment or refusing
to make payment of its safeguard funds or failing to keep and file the related information and materials as requested, it shall be
punished by China Securities Regulatory Commission in accordance with Articles 68 and 70 of the Regulation on the Administration
of Futures Trading.

Article 27

As for any individual or entity committing misappropriating, encroaching or defrauding safeguard funds or any other illegal behavior,
it shall be subject to liabilities accordingly, the related personnel neglecting their duties shall be subject to legal liabilities
in accordance with related laws, and anyone as suspected of being involved in any crime shall be transferred to the judicial authorities.

Chapter VI Supplementary Rules

Article 28

The present measures shall enter into force as of August 1, 2007.