ADMINISTRATIVE RULES FOR THE REPORTING BY FINANCIAL INSTITUTIONS OF LARGE-VALUE AND SUSPICIOUS FOREIGN EXCHANGE TRANSACTIONS

Decree of the People’s Bank of China

No.3

In accordance with the Law of the People’s Republic of China on the People’s Bank of China and other laws and regulations, the Administrative
Rules for the Reporting by Financial Institutions of Large-Value and Suspicious Foreign Exchange Transactions has been adopted at
the 7th executive meeting on September 17, 2002, and is hereby promulgated for implementation as of March 1, 2003.
President of the People’s Bank of China Zhou Xiaochuang

January 3, 2003

Administrative Rules for the Reporting by Financial Institutions of Large-Value and Suspicious Foreign Exchange Transactions

Article 1

These Rules are formulated in accordance with Regulations of the People’s Republic of China on Foreign Exchange Administration and
other regulations in order to monitor large-value and suspicious foreign exchange transactions.

Article 2

Financial institutions located in the territory of China that run foreign exchange business (hereinafter referred to as financial
institutions) shall report, in accordance with these Rules, to foreign exchange administration authorities large-value and suspicious
foreign exchange transactions.

Large-value foreign exchange transaction refers to foreign exchange transactions above a specified amount made by transactions parties
in any form of settlement through financial institutions.

Suspicious foreign exchange transaction refers to foreign exchange transaction with abnormal amount, frequency, source, direction,
use or any other such nature.

Article 3

State Administration of Foreign Exchange and its branches (hereinafter referred to as SAFE) are responsible for supervising and administering
the reporting of large-value and suspicious foreign exchange transactions.

Article 4

When opening foreign exchange accounts for customers, financial institutions shall abide by Rules on Using Real Name for Opening
Individual Deposit Account and Rules on Administration of Foreign Exchange Account within the Territory of People’s Republic of China
and shall not open anonymous foreign exchange accounts or accounts in obviously fictitious names for their customers.

When processing foreign exchange transactions for customers, financial institutions shall verify information about the customer’s
real identity, including the name of work unit, name of the legal representative or person-in-charge, ID and its number, supporting
documents for account opening, organization registration code, address, registered capital, business scope, size of business operation,
average daily transaction volume of the account and in the case of an individual customer, name of the depositor, ID and its number,
address, occupation, household income and other information about the customer’s family.

Article 5

Financial institutions shall record all large-value and suspicious foreign exchange fund transactions and keep the record for a minimum
of five years as of the day of transaction.

Article 6

Financial institutions shall establish and improve internal anti-money laundering post responsibility system, formulate internal
anti-money laundering procedure and, have specified staff record, analyze and report large-value and suspicious foreign exchange
transactions.

Article 7

Financial institutions shall not disclose to any agency or individual information about large-value and suspicious foreign exchange
transactions, unless otherwise provided for by laws.

Article 8

The following foreign exchange transactions constitute large-value foreign exchange transactions:

(1)

Any single deposit, withdrawal, purchase or sale of foreign exchange cash above US$10,000 or its equivalent, or the accumulated amount
of multiple deposit, withdrawal, purchase or sale transactions of foreign exchange within one day above US$10,000 or its equivalent;

(2)

Foreign exchange non-cash receipt and payment transactions made through transfer, bills, bank card, telephone-banking, internet banking
or other electronic transactions or other new financial instruments in which a single transaction volume or accumulated transaction
volume within one day exceeding US$100,000 or its equivalent by individual customers, and in the case of corporate customers, a single
transaction volume or accumulated transaction volume within one day exceeding US$500,000 or its equivalent.

Article 9

The following foreign exchange transactions constitute suspicious foreign exchange cash transactions:

(1)

Frequent deposit and/or withdrawal of large amount of foreign exchange cash from an individual bankcard or individual deposit account
that are apparently not commensurate with the identity of or use of fund by the cardholder or account owner;

(2)

An individual resident transferring to or withdrawing cash in large amount in a foreign country after depositing large amount of foreign
exchange cash in a bankcard in China;

(3)

Frequent depositing, withdrawal or sale of foreign exchange through an individual foreign exchange cash account below the SAFE validated
threshold;

(4)

Non-resident individual requiring banks to open traveler’s check or draft to convert large amount of foreign exchange cash he/she
has brought into China in order to take the fund out of China;

(5)

Frequently depositing large amount of foreign exchange cash in a bankcard held by non-resident individual;

(6)

Frequent and large-amount fund movement through a corporate foreign exchange account not commensurate with the business activities
of the account owner;

(7)

Regular and large-amount cash deposit into a corporate foreign exchange account without withdrawal of large amount of cash from the
said account;

(8)

An enterprise frequently receiving export proceeds in cash that is apparently not commensurate with the range and size of its business;

(9)

The RMB fund that an enterprise uses to buy foreign exchange for overseas investment is mostly in cash or has been transferred from
a bank account not belonging to the said enterprise;

(10)

The RMB fund that a foreign-funded enterprise uses to buy foreign exchange for repatriation of profit is mostly in cash or has been
transferred from a bank account not belonging to the said enterprise;

(11)

A foreign-funded enterprise making investment in foreign exchange cash.

Article 10

The following foreign exchange transactions constitute suspicious foreign exchange non-cash transactions:

(1)

Foreign exchange account of an individual resident frequently receiving fund from domestic accounts that are not under the same name;

(2)

An individual resident frequently receiving large amount of foreign exchange remittance from abroad before remitting the total amount
out in the original denomination, or frequently remitting foreign exchange fund of the same denomination that is transferred from
abroad in large amount;

(3)

Non-resident individual frequently receiving remittance in large amount from abroad, especially from countries (regions) with serious
problems of narcotics production and trafficking;

(4)

Foreign exchange account of a resident or non-resident individual with a regular pattern of receiving large amount of fund which is
withdrawn in several transactions the next day, and then receiving large amount of fund again which is withdrawn in several transactions
the next day;

(5)

An enterprise making frequent and large advance payment for import and commission under trade account below the SAFE validated threshold
through its foreign exchange account;

(6)

An enterprise frequently receiving, through its foreign exchange account, export payment in bills (such as check, draft and promissory
note) in large amount;

(7)

Dormant foreign exchange accounts or foreign exchange accounts usually with no large fund movement suddenly receiving abnormal foreign
exchange fund inflow, and the inflow gradually becoming larger in a short period of time;

(8)

An enterprise having frequent and large amount fund transactions through its foreign exchange account not commensurate with the nature
and size of its business operation;

(9)

The foreign exchange account of an enterprise becoming inactive abruptly following frequent and large amount inflow and outflow of
fund;

(10)

Frequent fund movement through the foreign exchange account of an enterprise in amounts divisible by thousand;

(11)

Rapid inflow and outflow of fund through the foreign exchange account of an enterprise, the amount of which is big within one day
but the outstanding balance of the account is very small or nil;

(12)

The foreign exchange account of an enterprise remitting abroad the bulk of balance received in multiple small amount electronic transfers,
check or draft deposits;

(13)

A domestic enterprise opening an offshore account in the name of an overseas legal person or natural person, and the said offshore
account experiencing regular fund movement;

(14)

An enterprise remitting fund to many domestic residents through an offshore account and surrendering foreign exchange to banks in
the name of donation, the transfer of fund and foreign exchange sales all done by one person or few persons;

(15)

The annual expatriation of profit by a foreign-funded enterprise exceeding the amount of originally invested equity by a large margin
and obviously not commensurate with its business operation;

(16)

A foreign-funded enterprise rapidly moving the fund abroad in a short period of time after receiving the investment, which is not
commensurate with the payment demand of its business operation;

(17)

Offsetting deposit and loan transactions with affiliates or connected companies of financial institutions located in regions with
serious smuggling, drug trafficking or terrorist activities or other crimes;

(18)

Securities institutions ordering banks to transfer foreign exchange fund not for the purpose of securities dealing or settlement;

(19)

Securities institutions that engages in B share trading business frequently borrowing large amount of foreign exchange fund through
banks; and

(20)

Insurance institutions frequently making compensation payment in large amount to or discharging insurance in large amount for the
same overseas policy holder through banks.

Article 11

Financial institutions shall report the large-value or suspicious foreign exchange fund transactions as defined by Articles 8, 9
and 10 monthly in hard copy as well as in electronic copy.

Article 12

Financial institutions shall examine the following foreign exchange cash transactions and report promptly any discovery of suspected
money laundering in hard copy with relevant documents attached.

(1)

Amount of expenditure of foreign exchange account roughly tallying with the amount of deposit in the previous day;

(2)

Depositing foreign exchange or renminbi cash in many transactions in the foreign exchange deposit accounts of other individuals and
receiving at the same time renminbi or foreign exchange of equivalent amount;

(3)

An enterprise frequently purchasing foreign exchange with renminbi cash.

Article 13

Financial institutions shall conduct verification over the following non-cash foreign exchange transactions, and shall promptly report
any discovering of suspected money laundering activity and attach related files to the superior authorities:

(1)

An individual resident frequently switching from one denomination to another when conducting foreign exchange transactions apparently
with no profit-seeking purpose;

(2)

An individual resident asking a bank to issue traveler’s check or draft after frequently receiving foreign exchange remittance from
abroad;

(3)

A non-resident individual frequently ordering traveler’s check or cashing traveler’s check or draft in large amount through foreign
exchange account;

(4)

When opening foreign exchange account, an enterprise declining to provide supporting documents or general information on different
occasions;

(5)

An enterprise group making internal foreign exchange fund transfer exceeding the volume of actual business operation;

(6)

An enterprise providing incomplete documents when surrendering to or purchasing foreign exchange from a bank, or the amount of buying
or selling suddenly expanding, selling and buying becoming more frequent, or the amount of foreign exchange sold to the bank apparently
exceeding the normal level of its business operation;

(7)

When entering an item of export revenue into an account in a bank, an enterprise failing to provide valid documents but frequently
collecting foreign exchange sales statement (for verification purpose), or rejecting to provide valid documents but frequently collecting
foreign exchange sales statement (for verification purpose);

(8)

An enterprise frequently receiving foreign exchange, making foreign exchange payment or frequently selling foreign exchange to banks,
all in large amount, for the purpose of donation, advertising, sponsoring conference or exhibition, which is apparently not commensurate
with its range of business;

(9)

An enterprise frequently receiving foreign exchange, making foreign exchange payment, or frequently selling foreign exchange to banks,
all in large amount, for the purchase of buying or selling technology or trade mark right or other intangible assets, which is apparently
not commensurate with its range of business;

(10)

Freight, premium and commission paid by an enterprise apparently not commensurate with its import and export trade;

(11)

An enterprise often depositing traveler’s check or foreign exchange draft, especially those issued abroad and not commensurate with
its business operation;

(12)

An enterprise suddenly paying its overdue foreign exchange loan in full with fund whose source is unspecified or not commensurate
with the background of the said enterprise;

(13)

An enterprise applying for a loan guaranteed by assets or credit belonging to itself or a third party, the source of which is unspecified
or not commensurate with the background of the customer;

(14)

Raising fund abroad through letter of credit with no foreign trade background or other means;

(15)

An enterprise knowingly conducting loss-making sales or purchase of foreign exchange;

(16)

An enterprise seeking to conduct a swap between the local currency and foreign currency for a fund whose source and use is unspecified;

(17)

The capital invested by the foreign partner of a foreign-funded enterprise exceeding the approved amount or direct external borrowing
of a foreign-funded enterprise being remitted from a third country where there is no connected enterprise;

(18)

Local currency fund converted from capital invested by the foreign partner of a foreign-funded enterprise or external borrowing being
diverted to bank accounts for securities and other investment, which is not commensurate with its business operation;

(19)

Fund movement in and out of the foreign exchange cash account of an financial institution apparently not commensurate with the size
of the deposit in the account, or the fluctuation of fund movement apparently exceeding the change in the size of deposit;

(20)

Fund movement of the internal foreign exchange transaction accounts of a financial institution apparently not commensurate with its
daily business operation;

(21)

Fund movement of the inter-bank foreign exchange transaction account, onshore and offshore business transaction account, or account
for transactions with overseas affiliates apparently not commensurate with the daily business operation of the financial institution;

(22)

Foreign exchange credit or settlement between a financial institution and its connected enterprises fluctuating by a large margin
within a short period of time;

(23)

A financial institution buying an insurance policy with large value foreign currency cash; and

(24)

Any foreign exchange fund transaction being suspected with proper reasons by the staff of a bank or other financial institutions as
money laundering.

Article 14

Tier-one branches located in provincial capital, capital of autonomous region and municipality directly under the central government
of a financial institution shall act as the major reporting unit and the head office of the financial institution shall designate
a major reporting unit if there is no such branch in these places.

Sub-branches and offices of a financial institution shall report, within the first five work days of every month, large-value and
suspicious foreign exchange fund transactions of the preceding month through their superior office to the major reporting unit and
at the same time to the local branch office of SAFE.

Each major reporting unit shall summarize large-value and suspicious foreign exchange fund transactions that take place in the province,
autonomous region or municipality directly under Central Government in the preceding month and report, within the first 15 work days
of every month, to the local branch office of SAFE.

The head office of each financial institution shall report, within the first five days of every month, large-value and suspicious
foreign exchange fund transactions that take place within the head office in the preceding month to the local branch office of SAFE.

Article 15

When a financial institution discovers suspected crime during the examination and analysis of large-value and suspicious foreign
exchange fund transactions, it shall report to the local public security authority and local SAFE office within three work days as
of the day of discovery.

Article 16

SAFE branch offices in every province, autonomous region, and municipality directly under the central government shall summarize
large-value and suspicious foreign exchange fund transactions reported by financial institutes and report to SAFE head office within
the first 20 work days of every month; when a foreign exchange transaction is suspected as crime, the case shall be transferred promptly
to local public security authority and to the SAFE head office.

Article 17

In the case of any of the following misconduct by a financial institution, the SAFE shall issue a warning, order the financial institution
to take remedial action, and impose a fine between RMB10,000 yuan to RMB30,000 yuan.

(1)

Failing to report, according to relevant rules and regulations, large-value or suspicious foreign exchange fund transactions;

(2)

Failing to keep large-value or suspicious foreign exchange transactions in record as stipulated by relevant rules and regulations;

(3)

Disclosing large-value or suspicious foreign exchange fund transactions in violation of relevant rules and regulations; and

(4)

Opening foreign exchange account without examining account-opening document.

Article 18

When a financial institution opens a foreign exchange account for an individual customer without examining account-opening documents,
the SAFE shall issue a warning, order it to take remedial action and may impose a fine between RMB1,000 yuan and RMB5,000 yuan.

Article 19

When a financial institution brings about grave loss as a result of its serious violation of these Rules, the SAFE may cease or revoke
its approval for foreign exchange purchase and sales business in part or in full.

Article 20

Disciplinary penalty shall be imposed on the staff of a financial institution who provides assistance to money-laundering activities;
when the misconduct constitutes a violation of the criminal law, the case shall be transferred to judiciary authorities.

Article 21

“Frequent” in these Rules means foreign exchange fund transactions occurring at least three times each day or occurring daily for
at least five days in a row.

“Large amount” in these Rules refers to amount close to the threshold amount for reporting as a large-value foreign exchange transaction.

“A short period of time” in these Rules means within 10 business days.

When “above”, “between” and “up to” are used to indicate a threshold number, a floor or a ceiling, the number that ensues any of them
is also included.

Article 22

These Rules shall enter into force as of March 1, 2003.

The People’s Republic of China
2003-01-03

ADMINISTRATIVE RULES FOR THE REPORTING OF LARGE-VALUE AND SUSPICIOUS RMB PAYMENT TRANSACTIONS

Order of the People’s Bank of China

No.2

In accordance with the Law of the People’s Republic of China on the People’s Bank of China and other laws and regulations , the Administrative
Rules for the Reporting of Large-Value and Suspicious RMB Payment Transactions has been adopted at the 7th executive meeting on September
17, 2002, and is hereby promulgated for implementation as of March 1, 2003.
President of the People’s Bank of China Zhou Xiaochuang

January 3, 2003

Administrative Rules for the Reporting of Large-Value and Suspicious RMB Payment Transactions

Article 1

These Rules are formulated in accordance with Law of the People’s Republic of China on the People’s Bank of China and other laws
and regulations in order to strengthen supervision over RMB payment transactions, regulate RMB payment transaction reporting activities
and prevent bank payment and settlement from being misused for money laundering and other law-violating and criminal activities.

Article 2

RMB payment transactions referred to in these Rules are RMB-denominated monetary payment made by institutions and individuals through
bills, bank cards, remittance, entrusted collection, custodian acceptance, online payment and cash and its clearing transactions.

Large-value payment transactions refer to any RMB payment transaction whose value is above the specified threshold.

Suspicious payment transactions refer to those RMB payment transactions with abnormality in amount, frequency, direction, use or nature.

Article 3

Policy banks, commercial banks, urban and rural credit cooperatives and their unions, postal savings institutions (hereinafter referred
to as financial institutions) licensed by the People’s Bank of China and established within the territory of the People’s Republic
of China shall abide by these Rules when handling payment transactions.

Article 4

The People’s Bank of China and its branch offices shall be charged with supervising and administering reporting of payment transactions.

Article 5

The People’s Bank of China shall establish a payment transaction monitoring system.

Article 6

Financial institutions shall create specialized anti-money laundering posts in their operational offices, specify their responsibilities,
and have specified staff record, analyze and report large-value payment transactions and suspicious payment transactions.

Article 7

The following transaction payments constitute large-value transaction payments:

(1)

Any single credit transfer above RMB one million yuan between legal persons, other organizations and firms created by self-employed
persons (hereinafter referred to as institutions);

(2)

Any single cash transaction above RMB 200,000 yuan, including cash deposit, cash withdrawal, cash remittance, cash draft, cash promissory
note payment.

(3)

Fund transfer above RMB200,000 yuan among individual bank settlement accounts, and between individual bank settlement account and
corporate bank settlement account.

Article 8

The following payment transactions constitute suspicious payment transactions:

(1)

Fund being moved out in large quantities after coming into a financial institution in small amounts and in many batches within a short
period of time or vice versa;

(2)

The frequency and amount of fund movement apparently not commensurate with the magnitude of an enterprise’s business operation;

(3)

Direction of fund movement apparently not commensurate with the range of business operation of an enterprise;

(4)

Current fund movement apparently not commensurate with the features of an enterprise’s business operation;

(5)

Regular occurrence of frequent fund movement apparently not commensurate with the nature and business operation of an enterprise;

(6)

Frequent fund movement within a short period of time between the same receiving party and the same paying party;

(7)

Sudden and frequent fund movement in and out of an account that has been dormant for a long time;

(8)

An enterprise frequently receiving individual remittance that is obviously unrelated to its range of business within a short period
of time;

(9)

Cash deposit and withdrawal whose amount, frequency and use are apparently different from the normal fund movement of a customer;

(10)

The accumulated cash movement through an individual bank settlement account exceeding RMB one million yuan within a short period of
time;

(11)

Frequent fund transfer within a short period of time to and from customers located in regions with serious drug-trafficking, smuggling
and terrorist activities;

(12)

Accounts being opened and closed frequently, and experiencing large fund movement before being closed;

(13)

Breaking large-value fund movement up into small amounts deliberately in order to escape large-value payment transaction monitoring;

(14)

Other suspicious payment transaction defined by the People’s Bank of China; or

(15)

Other suspicious payment transaction identified by a financial institution.

“A short period of time” referred to in thisArticle is 10 or less than 10 business days.

Article 9

When a depositor applies for opening a bank settlement account, the financial institution should examine the authenticity, completeness
and legality of the documents submitted by the depositor.

Article 10

A financial institution shall create depositor’s database to record information of holders of bank settlement accounts, including,
in the case of a corporate customer, the post_title of the institution, name of legal representative or person-in-charge and name and
number of his/her valid ID, supporting documents for opening the account, organization registration code, address, registered capital,
range of business, major parties of fund movement, average size of daily fund movement of the account, and in the case of an individual
customer, the name of the customer, name and number of his/her ID, address and other information.

Article 11

When a financial institution discovers from its customer any occurrence as listed inArticle 8 in the processing of payment and settlement
business, it shall record, analyze the suspicious payment transaction, and fill in the Suspicious Payment Transaction Reporting Form
before reporting the case.

Article 12

When a financial institution finds it necessary to further verify a case of suspicious payment transaction, it shall report to the
People’s Bank of China in a timely manner. When the People’s Bank of China inquires about a case of suspicious payment transaction,
the inquired financial institution shall find out the truth, reply promptly and record the case in the file.

Article 13

A financial institution shall keep the record of payment transactions in accordance with the regulations on bank accounting files.

Article 14

A financial institution shall formulate internal rules and operational procedures for payment transaction reporting in line with
these Rules, and report the rules and procedures to the People’s Bank of China.

A financial institution shall supervise and examine the implementation of these rules and procedures by its branch offices.

Article 15

Large-value fund transfer from accounts shall be reported by the financial institution through connecting its system with the payment
transaction monitoring system.

Large-value cash transfer shall be reported by the financial institution through its business processing system or by writing.

Suspicious payment transaction shall be examined by the financial institution at the counter and reported in writing or other forms.

Article 16

When a financial institution processes a large-value fund transfer, it shall report to the head office of the People’s Bank of China
within the next business day after the day of the transaction’s occurrence.

When a financial institution processes a large-value cash transfer, the financial institution shall report within the next business
day after the day of the transaction’s occurrence to the local branch office of the People’s Bank of China, who shall in turn report
to head office of the People’s Bank of China.

Article 17

When an operational office of a policy bank, a wholly state-owned commercial bank, or a joint-stock commercial bank discovers a suspicious
payment transaction, it shall fill in the Suspicious Payment Transaction Reporting Form and report to the tier-one branch of the
bank, who shall report, within the next business day after receiving the Form, to the regional branch, operations office and provincial
capital sub-branch of the People’s Bank of China, and at the same time report to its superior branch.

When an operational office of a city commercial bank, a rural commercial bank, a rural or urban credit cooperative or its union, a
wholly foreign-funded bank, a Chinese-foreign equity joint bank or a foreign bank’s branch discovers a suspicious payment transaction,
it shall fill in a Suspicious Payment Transaction Reporting Form and report to the local branch office, operations office, provincial
capital sub-branch or prefecture sub-branch of the People’s Bank of China. When a prefecture sub-branch of the People’s Bank of China
receives such a report, it shall report, within the next business day after receipt, to the branch, operations office or provincial
capital sub-branch of the People’s Bank of China.

Article 18

When an operational office of a financial institution finds, after analyzing a case of RMB payment transaction, the need for immediate
criminal investigation against the suspect, it shall report to the local public security authority immediately and its superior branch
at the same time.

Article 19

Branches, operation offices and provincial capital sub-branches of the People’s Bank of China shall analyze the Suspicious Payment
Transaction Reporting Forms submitted by financial institutions. When it is necessary for the reporting financial institution to
provide additional material or further explanation, the said financial institution shall be informed immediately.

Article 20

Each branch, operation office and provincial capital sub-branch of the People’s Bank of China shall make a weekly summary of the
Suspicious Payment Transaction Reporting Forms submitted by financial institutions and report to the head office of the People’s
Bank of China on the first business day of every week. The payment transaction shall be reported to the head office of the People’s
Bank of China immediately after its discovery if the case is serious.

Article 21

The People’s Bank of China and financial institutions shall not disclose to any institution or individual information about suspicious
payment transactions, unless otherwise stipulated by laws.

Article 22

When a financial institution fails to examine the document submitted for opening accounts in accordance with relevant regulations
and opens a settlement account for an individual, the People’s Bank of China shall issue a warning and concurrently impose on it
a fine between RMB1,000 yuan and RMB5,000 yuan. In a serious case, its senior executives directly responsible for such misconduct
shall be banned from taking any senior position in the financial industry.

Article 23

In the case of any of the following misconduct by a financial institution, the People’s Bank of China shall issue a warning and order
the financial institution to take remedial action within a specified period of time, and if the financial institution fails to do
so within the specified time limit, a fine up to RMB30,000 yuan may be imposed.

(1)

Opening account without examining the submitted materials according to relevant regulations that leads to the opening of a falsified
institutional bank settlement account;

(2)

Failing to create depositor’s databank or having incomplete depositor’s information;

(3)

Failing to keep customer transactions record as stipulated;

(4)

Failing to examine and report payment transactions in accordance with these Rules;

(5)

Failing to report any known suspicious payment transaction or a suspicious payment transaction that should have been reported;

(6)

Disclosing suspicious payment transaction information in violation ofArticle 21 .

Article 24

Disciplinary penalty shall be imposed on the staff of a financial institution who is/are involved in falsifying account-opening materials
to open bank settlement account(s) for individual(s) and facilitate money-laundering activities; when the misconduct constitutes
a violation of the criminal law, the case shall be transferred to judiciary authorities.

Article 25

When a financial institution seriously violates these Rules, the People’s Bank of China shall cease its approval for the institution
to open basic deposit account, suspend or terminate part or all of its payment and settlement business and ban the senior executives
directly responsible for such violations from taking any senior management position in the industry.

Article 26

Staff of the People’s Bank of China shall be imposed an administrative penalty in accordance with laws for any violation ofArticle
21 of these Rules.

Article 27

When “above”, “between” and “up to” are used to indicate a threshold number, a floor or a ceiling, the number that ensues any of
them is also included.

Article 28

These Rules shall enter into force as of March 1, 2003.

The People’s Bank of China
2003-01-03

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON DISTRIBUTING THE SYSTEM OF THE INDIRECT DECLARATION AND VERIFICATION OF INTERNATIONAL REVENUE AND EXPENDITURE STATISTICS (FOR TRIAL IMPLEMENTATION)

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Distributing the System of the Indirect Declaration and Verification of
International Revenue and Expenditure Statistics (for Trial Implementation)

HuiFa [2003] No.1

January 3, 2003

The branches and foreign exchange administration departments of the State Administration of Foreign Exchange (“SAFE”) in all provinces,
autonomous regions, and municipalities directly under the Central Government, the branches in Shenzhen, Dalian, Qingdao, Xiamen,
and Ningbo:

With a view to promoting the orderliness and effectiveness of the indirect declaration and verification of international revenue and
expenditure statistics, promoting the regularization and standardization of the verification work, the SAFE has formulated System
for the Indirect declaration and Verification of International Revenue and Expenditure Statistics (for Trial Implementation), and
hereby distributes them to you for implementation.

It is desired that you, after receiving the present Circular, will forward it to the sub-branches and the banks (including foreign-funded
banks) within your respective jurisdictions in good time. In case any problem arises in the implementation of the present Circular,
please contact the Department of International Revenue and Expenditure of the SAFE.

Tel: (010) 68402374; 68402146.

Attachment:System for the Indirect Declaration and Verification of International Revenue and Expenditure Statistics (for Trial Implementation)

Chapter I General Provisions

Article 1

The present System have been formulated on the basis of the Measures for the Declaration of International Revenue and Expenditure
Statistics and the Rules for the Implementation thereof as well as the relevant provisions of the Operational Rules for the Statistical
Declaration of International Revenue and Expenditure through Financial Institutions and by taking the practice of work into consideration
for the purpose of ensuring the quality of the data of international revenues and expenditures indirectly reported.

Article 2

Statistical personnel of international revenue and expenditure shall take a true-to-the-fact, serious and responsible attitude in
the work of verification of indirect declaration of international revenue and expenditure (hereinafter referred to as “verification”)
so as to ensure the timeliness, accuracy and comprehensiveness of the data reported. If they find any errors or omissions in their
verification work, they shall demand the entity under verification to put right.

Article 3

Verifications are classified into the non-on-the-spot verification of indirect statistical declaration of international revenue and
expenditure and on-the-spot verification of indirect statistical declaration of international revenue and expenditure.

Non-on-the-spot verification of indirect statistical declaration of international revenue and expenditure (hereinafter referred to
as “non-on-the-spot verification”) refers to that the administrative departments of statistical declaration of international revenue
and expenditure do not have to go to the banks to consult the original documents of transaction, instead, they make verifications
according to the connections and logical relationship between the relevant information reported by the banks.

On-the-spot verification of indirect statistical declaration of international revenue and expenditure (hereinafter referred to as
“on-the-spot verification”) refers to that the administrative departments of statistical declaration of international revenue and
expenditure go to the site of the banks or reporters of statistics to consult the original documents of transaction and other relevant
documents and verify the reported information.

Article 4

The principles for the verification of indirect statistical declaration of international revenue and expenditure are:

The foreign exchange administrations on various levels shall verify the indirect statistical declaration of international revenue
and expenditure submitted by the banks or other reporters within their jurisdictions;

The foreign exchange administrations on various levels are responsible for making irregular sample tests over the business of indirect
statistical declaration of international revenue and expenditure of the foreign exchange administrations on lower levels;

The verification work shall be combined with the specific positions of the staff members.

Article 5

Foreign exchange administrations shall establish archivist files of verification, properly keep the relevant verification materials
incurred from non-on-the-spot and on-the-spot verifications.

Chapter II Non-on-the-spot Verification

Article 6

Non-on-the-spot verifications mainly include the verification of the electronic data in the foreign exchange administration version
of the monitoring system of international revenue and expenditure statistics (hereafter “foreign exchange administration version”)
and the check between the electronic data and the hardcopy declaration documents (hereafter “the sheet preserved by the foreign exchange
administration”).

Article 7

The verification of the electronic data in the monitoring system of international revenue and expenditure statistics mainly include
the verification of the precision of the electronic data in the foreign-related revenue and expenditure declaration documents, the
check between foreign-related revenue declaration documents and foreign-related revenue statistic reports, the check between the
daily settlement books of foreign-related payments and the declaration documents of foreign payments, the verification of the timeliness
of the input and transmission of electronic data of the banks, the check of consistency between the basic data and summarized data
on the same level, the verification of the implementation of the rule of “declare first, then make payment”, and the verification
of the forms of basic information of the entities, etc.

Article 8

Foreign exchange administrations shall make a sum-by-sum check of the electronic data declared by the banks within their respective
jurisdictions every ten days, and make irregular sample tests of the electronic data declared by the foreign exchanges on the next
lower level. Foreign exchange administrations shall note down or print all the problems disclosed in the verifications, and inform
the verified entity of the result of verification. The verified entities shall feed back their opinions within the prescribed time
limit.

Article 9

Foreign exchange administrations shall determine the scope of verification of the electronic data of foreign-related revenue declarations.

Select the types of declaration documents from the basic system of the monitoring system of international revenue and expenditure
statistics that need to be verified, and then enter into the interface of declaration documents;

Key in such factors as the area code, bank code, and the time period of inward and outward remittances into the interface of the declaration
documents, and then choose the “search” key;

After entering into the search interface, select the factors of verification for search, and after the results of search are displayed,
select the “print” key, and then you’ll enter into the printing interface. Select the “output” key, and select the document type
of EXCEL, key in the file name, and then select the “save” key. Thus, the data is changed into the EXCEL format.

Article 10

Foreign exchange administrations shall verify the precision of the electronic data in the foreign-related revenue and expenditure
declarations according to the following requirements:

Verifying whether the elements of declaration are complete and standard, including the declaration numbers, currency and amount of
revenue and expenditure, name of the payers and payees within the territory, (domestic) codes of the payers and payees, the country
(region) and the code thereof, domestic accounts for payment and receipt, amount of spot foreign exchange or settled (or purchased)
foreign exchange, other amounts, ways of settlement, transaction codes, transaction remarks, etc. in particular, verifying the declaration
information whose country displayed is “China”.

Verifying whether logical relationship exists between the (overseas) payers and payees and the country (region) and the codes thereof,
between the accounts of receipt and payment and the ways of spot foreign exchange or settlement (purchase) of foreign exchange, between
currencies and the corresponding countries, between the code of transaction and the transaction remarks, etc.

Verifying the precision of the selection of the types of declaration documents according to the contents of declaration.

Checking whether the statistical reports of foreign payment within the quotas (except those under the item of writing-off for import)
have been completed in accordance with the relevant operational rules.

The wrong or doubtful data found in the process of verifications shall be registered (see annexed form).

Article 11

Foreign exchange administrations shall check the foreign-related revenue declaration documents against the foreign-related revenue
statistical reports.

The check shall be done in the “search” functions of the basic system within the monitoring system of international revenue and expenditure
statistics. The search shall include three inconsistencies: the foreign-related revenue declaration documents inconsistent with revenue
statistical reports, the statistical reports that want foreign-related revenue declaration documents, and the declaration documents
that want foreign-related revenue statistical reports. The inconsistent declaration information shall be printed for keeping purposes,
and shall be informed to the banks so as to find out the why they have happened.

Article 12

Foreign exchange administrations shall make checks between daily settlement books of foreign payments and the declaration documents
of foreign payments.

The foreign payment declaration documents include forms of writing off foreign exchange paid for imports (to be used as declaration
documents), declaration documents of foreign payment for non-trade (including capital) (to entities), declaration documents of foreign
payments (to individuals), foreign payments within quota (to entities) and foreign payments within quota (to individuals). The data
are taken from the summarization system of the monitoring system of international revenue and expenditure statistics (foreign exchange
administration version). The data in the daily settlement books of foreign payments are taken from the basic system of the monitoring
system of international revenue and expenditure statistics (foreign exchange administration version).

The check shall mainly cover:

a. whether the subject of declaration has filled in the declaration documents of foreign payments truthfully, timely, and completely;

b. whether the banks that handled the foreign payment businesses have made the daily settlement books of foreign payments according
to the operational rules.

The logical relationship between the declaration documents of foreign payments and the data in the daily settlement books of foreign
payments shall meet the following requirements:

[amount in the forms of writing off foreign exchange paid for imports (to be used as declaration documents) + the amount in the declaration
documents of foreign payments for non-trade (including capital) + the amount in the declaration documents of foreign payments (to
individuals)] / [amount in the daily settlement books of foreign payments ?C amount of foreign payments within quota (to entities)
?C amount of foreign payments within quota (to individuals) 100%

Article 13

Foreign exchange administrations shall verify whether the electronic data of the banks have been input and transmitted in a timely
way.

The types of declaration documents to be verified include statistical reports of foreign-related revenues, forms of writing off foreign
exchange paid for imports (to be used as declaration documents), declaration documents of foreign payment for non-trade (including
capital) (to entities), declaration documents of foreign payments (to individuals), and statistical reports of foreign payments within
quota.

The verifications shall be made by using the searching functions in the above-mentioned declaration documents in the basic system
of the monitoring system of international revenue and expenditure statistics. When a date is determined for verifications, the number
of declarations and the amounts of the verification day as mentioned above shall be searched within the subsequent workdays. If neither
the number of declarations nor the amounts searched during the subsequent days are consistent, it would mean that the electronic
data of the banks have not been input and transmitted in a timely way.

Article 14

Foreign exchange administrations shall verify the consistency between the basic data in the monitoring system of international revenue
and expenditure statistics and the summarized data.

It shall be verified whether the number of declarations and amounts of the various declaration documents in the basic system are consistent
with those in the summarized system so that the differences and errors that may exist between the basic data of the various declaration
documents and the summarized data can be found out.

The verification shall be made by means of the Verification Forms of Indirect Declarations of International Revenue and Expenditure
Statistics.

The total of the number of declarations and the total amounts in the basic system of the forms of writing off foreign exchange paid
for imports (to be used as declaration documents) shall be identical to the total number of declarations and the total amounts in
the summarized data and the payments made to the special economic zones (bonded areas, export processing zones, etc.)

Article 15

Foreign exchange administrations shall verify the implementation of the rule of “declare first, then make payments”.

The verifications shall be done through the search functions within the statistical reports of foreign-related revenues in the basic
system of the monitoring system of international revenue and expenditure statistics. On the search interface of the statistical reports
of foreign-related revenues, key in the code of the payee (in the case of entities) or the name of the payee (in the case of individuals)
as specified in the public announcements of “declare first, then make payment”, and at the same time, limit the time for inward payment
to three months, starting on the day when the public announcement becomes effective. What should be noted is that this search is
targeted at all the banks within jurisdiction, and thus the code of financial institution shall be “%”.

Article 16

Foreign exchange administrations shall verify the precision and integrity of all the elements of the electronic information in the
forms of basic information of the entities within the basic system of the monitoring system of international revenue and expenditure
statistics.

The precision of the organizational and institutional codes (codes of the entities) according to the standard codes provided by the
National Organizational and Institutional Code Management Center or the local technical supervision administration. At the same time,
it shall be verified whether there are different names for a same code or different codes for a same name;

The integrity and precision of the contact telephone numbers and the names of the entities shall be verified;

Whether the enterprise attributes and industry attributes have been precisely filled in shall be verified through the function “inconsistency
between the enterprise attributes and industry attributes” in the basic system of the monitoring system of international revenue
and expenditure statistics;

The preciseness of the currency codes and accounts shall be verified through the accounts provided by the enterprises when they make
declarations for receiving and making payments.

Article 17

Foreign exchange administrations shall check whether the electronic data in the monitoring system of international revenue and expenditure
statistics and data in the hardcopy declaration documents (the sheet to be kept by the foreign exchange administrations), including
whether the data are in consistency with each other, whether there exists any omission of items or falsely filled items, and whether
there are no electronic data for the hardcopy declaration documents. Foreign exchange administrations shall, within 15 workdays after
each month ends, have taken random samples from the hardcopy declaration documents of the previous month, and the number of the declaration
documents taken shall not be no less than 5% of the total declaration documents (they shall be randomly taken from all the banks).

The problems found in the verifications shall be recorded down one by one, and the banks concerned shall be informed of the reasons
so as to correct the problems. The verified hardcopy declaration documents shall be marked in a conspicuous way for archivist purposes.

Chapter III On-the-spot Verification

Article 18

Foreign exchange administrations shall arrange for on-the-spot verifications according to the requirements and described below. The
verifications shall be made in accordance with the relevant procedures as provided in the “Procedures of the State Administration
of Foreign Exchange for the Verification and Punishments of International Revenue and Expenditure Statistical Declaration.

The foreign exchange administrations on all levels shall make on-the-spot verifications to at least one bank within their respective
jurisdictions, and accomplish on-the-spot verifications to all the banks within their respective jurisdictions. The verification
of a bank may be done by verifying either one or more branches. It is encouraged that a general verification be done to all the branches
of all banks.

The foreign exchange administrations on all levels may conduct on-the-spot verifications irregularly to the relevant banks and subjects
of declarations (entities) according to the demand of the non-on-the-spot verifications.

The foreign exchange administrations on all levels shall, according to their overall situation and plans of declarations, organize
irregularly on-the-spot verifications to the administrations on lower levels and cross-verifications among the administrations on
lower levels.

Article 19

The object of on-the-spot verifications shall include banks and subjects of declaration (entities), and the content of the verifications
shall cover the data in foreign-related revenue and expenditure declaration documents, the daily account books of foreign payments,
the forms of the basic information of the entities, hardcopy declaration documents (the sheet to be kept by the banks), the making
and execution of system for the internal control of the indirect statistical declaration of international revenue and expenditure
of the banks.

Article 20

The verification of the data in the foreign-related revenue reported by banks may be done by sum-to-sum ticking of the data of declaration
in the monitoring system of international revenue and expenditure statistics and the running accounts of the relevant accounting
items provided by the banks.

Verifying the comprehensiveness and timeliness of the data in foreign-related revenue and expenditure declaration.

(1)

Verifying the types and constituent elements of declaration documents. The types of declaration documents include: foreign-related
revenue statistical reports, forms of writing off foreign exchange for payment of imports (to be used as declaration forms), declaration
documents for non-trade (including capital) foreign payments (to entities), declaration documents of foreign payment (to individuals),
and statistical reports for foreign payment within quota. The constituent elements of declaration to be verified include: the numbers
of the declaration documents, the amount and currency of the payments made and received, the names of the inland payers and payees,
terms of settlement, name of country, etc.

(2)

Ticking the checklist for verification on the item-by-item basis:

a. Whether the numbers of the declarations of foreign-related revenue and expenditure have been formulated in good time according
to the operational rules;

b. Whether there are declaration data for which there are no data in accounting books;

c. Whether there are data in accounting books for which there are no declaration data;

d. Whether statistical reports for foreign payment within quota have been filled in for foreign payments within quota (except payment
of foreign exchange for imports).

(3)

The unticked data shall be verified by consulting the accounting vouchers. If they have been wrongly reported, omitted, repeated,
etc., a list of such data shall be recorded down, and at the same time, photocopies of the corresponding accounting vouchers shall
be kept, and the relevant personnel of the banks under verification shall be required to fix their signatures, and the relevant departments
shall be required to affix their seals for confirmation.

Verifying the preciseness of the data in foreign-related payment declaration documents

(1)

The types of the declaration documents to be verified include foreign-related revenue declaration documents (to entities), foreign-related
revenue declaration documents (to individuals), declaration documents for non-trade (including capital) foreign payments (to entities),
forms of writing off foreign exchange paid for imports (to be used as declaration forms), declaration documents of foreign payments,
etc.

(2)

The contents of verification include the transaction codes and transaction remarks for the declaration data, the country name of the
oversea payers and payees, terms of settlement;

Ways of verification

(1) The verification of the foreign-related revenue declaration documents under the item of money remittance shall be done by consulting
the running accounts or other materials under the item of inward money remittance;

(2) The verification of the foreign-related revenue declaration documents under the item of letters of credit and collection via banks
shall be done by consulting the relevant letters of credit and agreements of collection via banks;

(3) The verification of foreign payments shall be done by consulting the relevant application documents of foreign payment businesses.

Article 21

Foreign exchange administrations shall make verifications to the daily account books of foreign payments made by banks. Daily account
books of foreign payments shall be made on the daily basis for all the foreign payments according to the practical situations. The
basis of verification shall be the subsidiary ledgers of payment of the banks.

Article 22

Foreign exchange administrations shall make verifications to the forms of basic information of the entities established by banks.
Whether the forms of basic information the entities have been filled in completely and precisely shall verified by checking the information
included in the forms of basic information of the entities obtained from the monitoring system of international revenue and expenditure
statistical declaration against the materials of the entities for opening accounts in the designated banks. The contents to be verified
include the organizational and institutional codes (entity codes), names of the entities, enterprise attributes, industry attributes,
and the opening of accounts, etc.

Article 23

Foreign exchange administrations shall make verifications to the hardcopy declaration documents kept by the banks. The verifications
shall be made by way of taking random samples from the declaration documents in the current month and past months.

The verification of the declaration documents taken randomly from past months shall cover:

(1)

Whether the declaration documents have been bound into books on the basis of month and types and have been properly kept;

(2)

Whether the declaration documents have been kept for 24 months;

(3)

Whether the declaration documents have been filled in precisely, completely and properly;

(4)

Whether any declaration documents have been wrongly used.

The verification of the declaration documents of taken randomly from the current month shall be done by checking the hardcopy declaration
documents of the current month (kept by banks) against the corresponding data reported in the monitoring system of international
revenue and expenditure statistical declaration (bank version) to see if any of the declaration documents have not been input in
good time.

Article 24

Foreign exchange administrations shall make verifications to the system of the banks for the internal regulation of the indirect statistical
declaration of international revenue and expenditure.

Where any direct report of international revenue and expenditure has been made on behalf of any other party, it shall be determined
according to whether agreement has been concluded for making reports on behalf of another party, and whether the agreements have
been properly kept.

whether rules have been formulated for the internal operations of indirect report of international revenue and expenditure, whether
the internal operation rules have met the requirements of the Operational Rules for the Statistical Report of International Revenue
and Expenditure through Financial Institutions, and how they have been carried out;

Other systems of work, administration, and job-related responsibilities that are connected with the work of international revenue
and expenditure.

Article 25

Foreign exchange administrations shall make verifications to the subjects of declaration (entities). They shall make on-the-spot verifications
to the subjects of declaration (entities) by combining the non-on-the-spot verification and on-the-spot verification of banks. The
focus shall be laid on the preciseness of the data declared.

Ways of verification. The verifications shall be based on the declaration data of foreign-related revenue and expenditure of the relevant
entities in the monitoring system of international revenue and expenditure statistics and shall be done by consulting the relevant
accounting post_titles and corresponding contracts of the entities under verification. Special attention shall be paid to the consistency
between the amount of revenue and expenditure as specified in the accounting post_titles of the entities and the check sheets issued by
the banks.

The verifications shall cover the amount and currency of the transactions, the nature of transactions, the name and country of overseas
payers and payees;

The questionable data found in the process of verification shall be verified by consulting corresponding hardcopy declaration documents
so as to decide who is be held liable, and detailed records shall be made for the verifications.

Chapter IV Supplementary Provisions

Article 26

The foreign exchange administrations on all levels shall, within 15 workdays after each quarter ends, report the verifications to
the next higher foreign exchange administration in written form, and the verification reports shall cover the contents of verification,
the problems found in the verifications, the corresponding results of handling, and shall reflect the problems that exist in the
routine operations, the large sums reflected in the reported data, and the abnormal changes of revenue and expenditure, etc.

Article 27

In case any violations of the Measures for the Declaration of International Revenue and Expenditure Statistics and other relevant
provisions are found through the verifications, they shall be punishable according to the Measures for the Punishment of Financial
Violations of Law, the Rules of Implementation for the Measures for Declaration of International Revenue and Expenditure Statistics,
and other relevant provisions.

Article 28

The present System shall enter into force as of March 1, 2003, and the power to interpret the present System shall remain with the
SAFE.

The State Administration of Foreign Exchange
2003-01-03

RULES FOR ANTI-MONEY LAUNDERING BY FINANCIAL INSTITUTIONS

Decree of the People’s Bank of China

No.1

In accordance with the Law of the People’s Republic of China on the People’s Bank of China and other laws and regulations , the Rules
for Anti-money Laundering by Financial Institutions has been adopted at the 7th executive meeting on September 17, 2002, and is hereby
promulgated for implementation as of March 1, 2003.
President of the People’s Bank of China Zhou Xiaochuan

January 3, 2003

Rules for Anti-money Laundering by Financial Institutions

Article 1

These rules are formulated in line with the Law of the People’s Republic of China on the People’s Bank of China and other relevant
laws, administrative rules and regulations to combat money laundering by criminals so as to safeguard the healthy operation of the
financial industry.

Article 2

These rules are applicable to all financial institutions involved in combating money laundering. Financial institutions hereunder
refer to institutions legally established and engaged in financial business within the territory of the People’s Republic of China,
including policy banks, commercial banks, credit cooperatives, postal savings institutions, finance companies, trust and investment
companies, financial leasing companies and foreign-funded financial institutions etc.

Article 3

Money laundering in these rules refers to any action that legalize the ill-gotten income and yields generated from criminal activities
like drug trafficking, gang violence, terrorist act, smuggling or other crimes through various means in which the source and origin
of such income and yields are disguised.

Article 4

Financial institutions and their employees shall abide by these rules to fulfill their due obligation to combat money laundering
activities in real earnest and identify suspicious transactions on a prudent basis, and shall not engage in any unfair competition
that may run counter to their anti-money laundering obligations.

Article 5

Financial institutions and their employees shall abide by relevant rules and regulations to and refrain from disclosing any information
on anti-money laundering activities to their customers and/or other personnel.

Article 6

Financial institutions shall assist the judiciary and/or law enforcement departments including the customs and taxation authorities
in combating money laundering in accordance to relevant laws and regulations through making inquiry of, freezing or suspending the
transfer of suspicious customers’ deposits. Overseas branch offices of the Chinese financial institutions shall abide by anti-money
laundering laws and regulations of their host countries or regions and provide assistance to departments involved in anti-money laundering
operation in these countries or regions.

Article 7

The People’s Bank of China is the supervisory authority for anti-money laundering operation by financial institutions.

The People’s Bank of China shall establish a leading group supervising the work of anti-money laundering by the financial institutions,
which shall perform the following responsibilities:

(1)

Supervising and coordinating anti-money laundering activities of financial institutions;

(2)

Conducting research and formulating strategies, working plans and policies on anti-money laundering for financial institutions, establishing
working mechanisms for anti-money laundering operation and reporting system for large-value and/or suspicious renminbi fund transactions;

(3)

Establishing a monitoring system to scrutinize payment transactions;

(4)

Working out proper solutions to major difficulties encountered by financial institutions in combating money laundering;

(5)

Participating in international anti-money laundering cooperation and providing guidance for international exchange in the areas of
anti-money laundering by financial institutions; and

(6)

Other anti-money laundering functions of the People’s Bank of China.

The Sate Administration of Foreign Exchange is responsible for supervising reporting of large-value and/or suspicious foreign exchange
transactions and shall establish a reporting arrangement to monitor such transactions.

Article 8

Financial institutions shall establish and improve their internal anti-money laundering mechanisms and report such mechanisms to
the People’s Bank of China for record as required by the People’s Bank of China.

Article 9

Financial institutions shall establish or designate relevant internal departments to specialize in anti-money laundering efforts
and equip these departments with managers and working staff as needed.

Pursuant to concrete needs, financial institutions shall establish relevant departments or designate certain personnel in their branch
offices to specialize in anti-money laundering activities, and shall conduct supervision over implementation of these rules and establishment
of internal anti-money laundering mechanisms in their branch offices. Effective anti-money laundering measures shall be made when
new financial institutions are incorporated or financial institutions set up new branch offices.

Article 10

Financial institutions shall establish a customers’ identity registry system to verify the identities of customers who process financial
business including deposits and settlement with them.

Financial institutions shall not be allowed to open anonymous accounts or accounts in obviously fictitious names for their customers,
and/or provide financial services including deposits and settlement for customers whose identities are yet to be clarified.

Article 11

When opening deposit accounts or providing settlement service for individual customers, financial institutions shall verify the customers’
IDs and record the names and ID numbers. If a customer is represented by another person to open personal deposit account with a financial
institution, the financial institution shall verify both the representative’s and principal’s IDs and record the names and ID numbers
thereof.

Financial institutions shall not open deposit accounts for customers who decline to show IDs or do not use names appeared in their
IDs.

Article 12

When opening accounts or providing financial services including deposits and settlement for institutional customers, financial institutions
shall abide by relevant rules of the People’s Bank of China and ask the customers to show valid documents for verification and recording.

Financial institutions shall not provide financial services including deposits and settlement for institutional customers who fail
to show valid documents as required by relevant rules.

Article 13

Financial institutions shall abide by relevant rules and report to the People’s Bank of China and/or the State Administration of
Foreign Exchange of any large-value transactions detected in the process of providing financial services to customers.

Classification of large-value transactions shall be determined in line with relevant rules made by the People’s Bank of China and
the State Administration of Foreign Exchange on reporting of fund transactions.

Article 14

Financial institutions shall abide by relevant rules and report to the People’s Bank of China and/or the State Administration of
Foreign Exchange of any suspicious transactions detected in the process of providing financial services to customers.

Reporting of suspicious transactions shall be determined in line with relevant rules made by the People’s Bank of China and the State
Administration of Foreign Exchange on reporting of fund transactions.

Article 15

Branch offices of financial institutions shall report large-value and/or suspicious transactions to the local branch offices of the
People’s Bank of China or the State Administration of Foreign Exchange in line with relevant rules made by the People’s Bank of China
and the State Administration of Foreign Exchange on procedures of reporting of fund transactions, and at the same time keep their
superior units informed of such transactions.

Article 16

Financial institutions shall carry out examination and analysis on large-value and/or suspicious transactions, and shall report to
the local public security departments if criminal activities are detected.

Article 17

Financial institutions shall keep records on account information and transaction records of the customers in accordance with the
following prescription:

(1)

Records of account information shall be kept for five years at minimum from the date of closing the account;

(2)

Transaction records shall be kept for five years at minimum from the date of booking the transaction.

Transaction records in item (2) include information on the ownership of the account, amount of deposit or withdrawal effected through
the account, time of transaction, source and destination of funds and the means of fund transfer etc. Account information and transaction
records shall be kept in line with relevant state rules on management of accounting files.

Article 18

The People’s Bank of China or the State Administration of Foreign Exchange shall hand over the report and other related materials
on large-value and/or suspicious transactions submitted by financial institutions to the judiciary departments in accordance with
procedures laid by the Rules for Administrative Departments in Transferring Suspected Criminal Cases if criminal activities are suspected
after conducting review of such report and related materials, and shall not disclose contents of the report to the customers of the
financial institutions and other people.

Article 19

The People’s Bank of China shall provide guidance and organize training activities on the subject of anti-money laundering for financial
institutions.

Financial institutions shall launch anti-money laundering publicity among their customers and provide training for their staff on
anti-money laundering so as to familiarize them with laws, administrative rule and regulations on anti-money laundering and strengthen
their competence in combating money laundering activities.

Article 20

The People’s Bank of China shall issue a warning to and order a financial institution committing any of the following irregularities
in violation of these rules to take remedial actions within a specified period of time, and if the financial institution fails to
make corrections within the specified period of time, a fine of no more than RMB30,000 yuan may be imposed and its senior executives
immediately accountable for such misconduct may be disqualified from holding any positions in the financial industry if the circumstances
are serious:

(1)

failing to establish an internal anti-money laundering mechanism as required;

(2)

failing to establish or designate relevant departments to specialize in anti-money laundering efforts as required;

(3)

failing to ask institutional customers to show valid documents and other related materials for verification and recording as required;

(4)

failing to keep account information and transaction records of customers as required;

(5)

leaking anti-money laundering information to customers and other people in violation of rules; or

(6)

failing to report to the authorities of large-value and/or suspicious transactions as required.

Article 21

When a financial institution engaged in foreign exchange operation fails to report on a timely basis to authorities of abnormal foreign
exchange transactions such as purchase of foreign exchange in large value and/or high frequency and move of large amount of foreign
currency cash in and out of account, it shall be penalized in line with Article 25 of the Rules on Penalizing Financial Irregularities.

Article 22

Where a financial institution, in violation of relevant laws and administrative rules and regulations, engages in unfair competition
which hampers the fulfillment of its anti-money laundering obligation, it shall be penalized in line with relevant provisions of
the Rules on Penalizing Financial Irregularities. A disciplinary warning shall be issued for its staff held immediately accountable
for such misconduct and the senior executives directly responsible for the misconduct shall be disqualified from holding any positions
in the financial industry if the circumstances are serious.

Article 23

Where a financial institution opens accounts for customers who have declined to show their personal IDs or use the names appeared
in the personal IDs in opening bank accounts, the People’s Bank of China shall give it a warning and impose concurrently a fine of
not less than RMB1000 yuan but not more than RMB5000 yuan. If the circumstances are serious, its senior executives held immediately
accountable for such misconduct shall be disqualified from holding any positions in the financial industry.

Article 24

The China’s Association of Banks, China’s Association of Finance Companies and other self-regulatory organizations in the financial
industry may formulate their own anti-money laundering work guidance in line with these rules.

Article 25

These rules shall enter into force on March 1, 2003.

The People’s Bank of China
2003-01-03

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE RELEVANT ISSUES CONCERNING THE TAX PAYMENT BY ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES ENGAGING IN THE BUSINESS OF FINANCIAL ASSET DISPOSITION

The State Administration of Taxation

Circular of the State Administration of Taxation on the Relevant Issues Concerning the Tax Payment by Enterprises with Foreign Investment
and Foreign Enterprises Engaging in the Business of Financial Asset Disposition

GuoShuiFa [2003] No.3

January 7, 2003

The state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central
Government and municipalities separately listed on the State plan:

We hereby give our notice on the relevant issues concerning the tax payment by enterprises with foreign investment and foreign enterprises
engaging in the business of financial asset disposition as follows in accordance with the Income Tax Law of the People’s Republic
of China for Enterprises with Foreign Investment and Foreign Enterprises and the detailed rules for its implementation, as well as
the Interim Regulation of the People’s Republic of China on Business Tax and the detailed rules for its implementation:

Enterprises with foreign investment and foreign enterprises (hereinafter referred to as enterprises) shall, regarding their income
obtained in China from the business of financial asset disposition, file tax returns and pay value-added tax, business tax and enterprise
income tax in accordance with the tax laws and the present circular.

II.

The business of financial asset disposition shall mean that an enterprise obtains by means of purchase or holding shares through absorption,
etc. from a financial asset management corporation inside the territory of China the share rights, creditor’s rights and physical
assets of other enterprises inside the territory of China or the entire assets composed of the above said assets (hereinafter referred
to as replacement assets), and then dispose the above said replacement assets by means of transfer, retractation, exchange and sale,
etc., and obtain the corresponding returns.An enterprise may dispose of the financial assets by the following means:

(a)

retracting or transferring the creditor’s rights;

(b)

converting the creditor’s rights it holds into share rights;

(c)

disposing of the physical assets it has right to control;

(d)

selling or transferring the share rights it holds;

(e)

returning its replacement assets;

(f)

disposing of the replacement assets by other means.

III.

An enterprise shall, when obtaining replacement assets, regard the price when the assets were actually purchased or when it held the
shares through absorption as the original price. The classification of replacement assets shall be based on the pricing object when
the said assets are obtained, which may be one share right of an enterprise of sole pricing, or the single item of asset in the form
of creditor’s right or physical asset, or the combined assets uniformly priced with several items of assets being bound.For the re-classification
and re-combination of all or part of the replacement assets obtained by an enterprise, the original price of the single item of or
the combined replacement assets may be determined after the re-classification and re-combination, provided that the original price
of the replacement assets after the re-classification and re-combination shall not exceed the original price at the time when the
enterprise obtained the replacement assets.

IV.

An enterprise shall, when disposing of the replacement assets, be exempted from the business tax and value-added tax in accordance
with the following provisions:

(a)

no business tax shall be levied on an enterprise that disposes of replacement assets of creditor’s right;

(b)

no business tax shall be levied on an enterprise for the income which it obtains from disposition of replacement assets of share right
(including disposition by means of debt to equity);

(c)

business tax shall be levied on an enterprise for the income which it obtains from disposition of its own physical replacement assets
if such assets are real estates; while if such assets are goods, value-added tax shall be levied in accordance with the regulations
on value-added tax and the relevant provisions.

With respect to the income obtained by an enterprise from its disposition of replacement assets, enterprise income tax shall be calculated
and paid on the basis of the net proceeds after the original price, expenses and losses of the relevant assets are deducted.Where
an enterprise disposes of its replacement assets by stages or by installments, the part exceeding the original price shall, when
the income from its disposition of assets exceeds the original price of replacement assets in the form of single item of or combined
assets, be calculated into the present taxable income of the enterprise, and then enterprise income tax shall be calculated and levied.The
losses occurred due to an enterprise’s disposition of a single item of or combined replacement assets, may be deducted from the present
taxable income of the enterprise. For the combined assets, the losses shall be calculated after the disposition of combined assets
has been totally finalized.

VI.

A foreign enterprise that has not set up an office or a site inside the territory of China shall, either by itself or by authorizing
its agent inside the territory of China, file tax returns and pay its payable tax amount. Its payable enterprise income tax may be
paid at the locality of the enterprise to which one item of the replacement assets belongs; while the place for the payment of its
payable business tax or value-added tax shall be determined in accordance with the relevant provisions.

The State Administration of Taxation
2003-01-07

LETTER OF THE MINISTRY OF COMMERCE ABOUT REINFORCING THE PROTECTION OF INTELLECTUAL PROPERTY WHEN ATTENDING OR ORGANIZING OVERSEAS EXHIBITIONS

Letter of the Ministry of Commerce about Reinforcing the Protection of Intellectual Property When Attending or Organizing Overseas
Exhibitions

Shang Fa Han [2007] No.16

The people’s governments of all provinces, autonomous regions, municipalities directly under the Central Government, the cities specifically
designated in the state plan and Xinjiang Production and Construction Corporations.:

During these years, the Chinese enterprises have been involved in more and more disputes on intellectual property when attended overseas
exhibitions. On CPHL Worldwide 2006 which was held in France, the Chinese enterprise exhibitors were suspected of infringement on
intellectual property, which leaded to ill consequences, for example, some related personnel were detained and some exhibits were
confiscated. The same thing happened in March 2007 on CeBIT, which was held in Hanoverian, Germany. The repetitive occurrence of
such incidents shows that some Chinese enterprises are short of the awareness of protecting intellectual property and fail to place
enough emphasis on the protection of intellectual property when preparing to go abroad to attend exhibitions. Such incidents have
not only impaired China’s overseas good image in the facet of protection of intellectual property, but also resulted in great damage
to the reputation and interests of those enterprise exhibitors themselves and even endangered the personal safety of some individuals.

To respect and protect intellectual property is not only a requirement for the development of enterprises themselves, a requirement
for the development of national economy and science and technology, but also a requirement for promoting the sound development of
Chinese-foreign trade and economic relations. Therefore we should make continuous efforts to enhance enterprises’ understanding of
protecting intellectual property. For the purpose of guiding enterprises going abroad to attend exhibitions to do well the protection
of intellectual property, we hereby inform the related issues as follows:

Great emphasis shall be laid on the protection of intellectual property in attending overseas exhibitions. More efforts in guiding
and supervising the related local functional management shall be made. And an effective work mechanism to avoid the occurrence of
infringements in overseas exhibitions shall be set up.

The circumstances about the protection of intellectual property in the process of attending overseas exhibitions by local enterprises
shall be sorted out and analyzed. The administration of enterprises attending overseas exhibitions and entities organizing overseas
exhibitions shall be further reinforced. The examination and verification of the protection of intellectual property shall be taken
as an importance task.

A responsibility system for infringements on intellectual property shall be set up. Those domestic enterprises that attend overseas
exhibitions or entities organizing overseas exhibitions which lead to serious consequences because of their infringement upon intellectual
property shall be imposed upon necessary punishment according to the actual circumstances.

Enterprises attending overseas exhibitions or entities organizing overseas exhibitions shall be trained in terms of intellectual property
to improve their awareness of protecting intellectual property. They shall not only protect their own intellectual property but respect
others’ legitimate rights and interests.

All regions shall actively conduct China’s business councils in foreign countries to hear the related suggestions when organizing
overseas exhibitions.

Each region shall contact the Department of Treaty and Law of the Ministry of Commerce in the case of any complaint or suggestion
in conducting the related work.

Contact person: Yang Hanhui, Chen Fuli

Tel: 65198154/8761

Ministry of Commerce

April 30, 2007

Ministry of Commerce
2007-04-30

MEASURES FOR THE ADMINISTRATION OF INFORMATION DISCLOSURE OF COMMERCIAL FRANCHISES

Decree No.16 of the Ministry of Commerce of the People’s Republic of China No.16

Measures for the Administration of Information Disclosure of Commercial Franchises have been discussed and adopted at the 6th executive
meeting of the Ministry of Commerce on April 6 2007. They are hereby promulgated and shall come into effect as of May 1, 2007. Minister Bo Xilai April 30, 2007 Measures for the Administration of Information Disclosure of Commercial Franchises Article 1 For the purpose of safeguarding the legitimate rights and interests of franchisers and franchisees, these Measure are formulated under
the Regulations for the Administration of Commercial Franchises (hereinafter referred to as the Regulations) Article 2 These Measures apply to commercial franchise activities within the territory of the People’s Republic of China. Article 3 The associated company herein refers to the parent company of the franchiser, subsidiary company which the franchiser owns directly
or indirectly all or the controlling interest thereof, company which the same owner owns all or the controlling interest with the
franchiser directly or indirectly. Article 4 The franchiser shall disclose the information as stipulated in Article Five in writing to the franchisee within at least 30 days before
the day the franchise contract is signed based on the requirement of the Regulations, and provide the franchise contract. Article 5 The information disclosed by the franchiser shall include the following: 1. The basic information on the franchiser and franchise activities (1) Franchiser’s name, address, contact details, legal representative, general manager, registered capital, scope of business, and the
number of regular chains as well as their addresses and phone numbers. (2) A brief introduction to the commercial franchise activities of the franchiser. (3) Basic information on archival filing of the franchiser. (4) If the franchiser’s associated company provides products and services to the franchisee, the associated company’s basic information
shall be disclosed. (5) Information on the bankruptcy and application for bankruptcy of the franchiser or of its associated company in the latest five years. 2. The basic information on the business resources of the franchiser (1) Provide the franchisee with the information on business resources available such as registered trademark, enterprise symbol, patent,
proprietary technology, and business mode, etc. (2) If the owner of the above-mentioned business resources is the associated company of the franchiser, then the basic information of
the associated company shall be disclosed, and the franchiser shall also explain how to handle the franchise system once the concession
contract is rescind. (3) The information about business resources of the franchiser (or its associated company) involving in litigation or arbitration, such
as the registered trademark, enterprise symbol, patent, and proprietary technology, etc. 3. Basic information on the franchise expenditure (1) If the types, amount, criteria and payment mode of the fees collected by the franchiser or on behalf of the third party cannot be
disclosed, then the franchiser shall explain the reason; if the standards to collect fees are not consistent, then the franchiser
shall disclose the maximum and minimum standards, and explain the reason. (2) The collection, return conditions, return time, and return mode of the margin. (3) If the franchisee is required to pay the fee before the franchise contract is made, then the franchiser shall explain in writing to
the franchisee the use of the fee and the conditions and mode to return the fee. 4. Information on prices and conditions of the products, services and equipment provide for the franchisee. (1) Whether the franchisee must purchase products, services or equipment from the franchiser (or its associated company), as well as the
prices and conditions. (2) Whether the franchisee must purchase products, services or equipment from the suppliers appointed or approved by the franchiser. (3) Whether the franchisee can choose other suppliers and the conditions that the suppliers must be equipped with. 5. Information on providing continuous services to the franchisee. (1) Detailed content, way of provision and implementation plans for professional training, including the location, approach and length
of the training. (2) Detailed content of the technical support, the catalogue of operation manual of franchise, and the number of pages. 6. The methods and content of guidance and supervision over the franchise activities of the franchisee. (1) The franchiser’s methods and content of guidance and supervision over the franchise activities of the franchisee, the franchisee’s
obligations, and the consequences of failure to fulfill them. (2) Whether the franchiser shall shoulder joint liability for the complaints and compensations of the consumers, and how to take the liability. 7. Information on investment budget of the franchise network (1) Expenditure on the investment budget may include the following: initial fee; training fee; real estate and decoration fee, procurement
fee of equipment, office supplies, furniture, etc; initial inventory; water, electricity and gas fees; fees needed to obtain license
and other government approvals; and working capital. (2) The statistical source and basis for estimation of the above-mentioned fees 8. Information on the franchisee within the territory of China. (1) Information on the present and estimated number of franchisees, geographical distribution, scope of license, whether or not having
exclusive license region (if yes, the estimated detailed scope shall be explained) (2) Information on the evaluation of performance of the franchisee, the franchiser shall disclose information on the actual or estimated
average sales volume, cost, gross profit, and net profit of the franchisee, and shall explain the source of the above-mentioned information,
length and franchise network involved, if the information is estimated, then the franchiser shall explain the basis for estimation,
and point out that the actual performance of the franchisee may be different from the estimation. 9. Abstracts of the franchiser’s financial and accounting reports and of the audit reports in the last two years audited by the accounting
firms or auditing firms. 10. Information on major litigation and arbitration concerning franchises of the franchiser in the latest five years. (1) Major litigation and arbitration refer to litigation and arbitration involving litigation fare of more than RMB 500, 000 (2) The basic information, location of the litigation and the results shall be disclosed. 11. Information on the record of major illegal operation of the franchiser and its legal representative, records of major illegal operation. (1) Where the fine imposed by the competent administrative law enforcement department is not less than 300, 000 but more than 500, 000. (2) Where the franchiser and its legal representative have been sentenced to criminal responsibility. 12. Franchise Contract (1) Sample franchise contract (2) If the franchiser requires franchisee to sign with the franchiser (or the associated company) other franchise contracts, this type
of sample contract shall be provided at the same time. Article 6 The franchiser may not have any cheating and misleading practices in the promotion activities, and the advertisement may not include
the content about the individual franchisee’s profit from the franchise activities. Article 7 Before the franchiser discloses information to the franchisee, the former has the right to require the latter to sign Non-Disclosure
Agreement. Article 8 After the franchiser discloses information to the franchisee, the franchisee shall provide the franchiser with a return receipt in
duplicate, after the franchisee signs the receipt, each party retains one copy. Article 9 If the franchiser hides the information that shall be disclosed or discloses false information, the franchisee may rescind the franchise
contract. Article 10 If the franchiser violates these Measures, the franchisee has the right to report to the commerce authority, if the case is confirmed
after investigation, the commerce authority shall order the franchiser to make rectification, and impose a fine no less than RMB
10, 000 but no more than RMB 50,000; if the circumstances are serious, the fine shall be no less than RMB 50, 000 but no more than
RMB 10, 000, and a public announcement shall be made. Article 11 The power to interpret these Measures shall remain with the Ministry of Commerce. Article 12 These Measures shall come into effect as of May 1 2007.

The Ministry of Commerce
2007-04-30

CIRCULAR OF THE GENERAL OFFICE OF CHINA BANKING REGULATORY COMMISSION ON REGULATING THE OVERSEAS INVESTMENT SCOPE FOR COMMERCIAL BANKS TO PROVIDE OVERSEAS FINANCIAL MANAGEMENT SERVICES ON BEHALF OF CLIENTS

Circular of the General Office of China Banking Regulatory Commission on Regulating the Overseas Investment Scope for Commercial Banks
to Provide Overseas Financial Management Services on Behalf of Clients

Yin Jian Ban Fa [2007] No. 114

All banking regulatory administrations, all state-owned commercial banks and joint-stock commercial banks,

Since the promulgation of the Circular on the Related Issues for Commercial Banks to Provide Overseas Financial Management Services
on Behalf of Clients (Yin Jian Ban Fa [2006] No. 164, hereinafter referred to as the Circular), related business procedures for commercial
banks to provide overseas financial management services on behalf of clients have been sorted out fundamentally, and related investment
experience has been accumulated. On the premise that commercial banks make overseas investment by rigidly differentiating self-owned
funds from clients’ funds and sell products in light of the types of clients, the overseas investment scope is hereby regulated and
the related requirements are hereby brought forward as follows, so as to further diversify the investment varieties of overseas financial
management services on behalf of clients and promote the stable development of such business.

The provision of “not directly investing in stocks, their structured products, commodity derivatives or securities below the grade
of BBB” in paragraph 4 of Article 6 of the Circular shall be regulated as “not investing in commodity derivatives, hedge funds or
securities below the grade of BBB as granted by internationally recognized grading agencies”.

The following requirements shall be met, when a commercial bank issues overseas financial management products on behalf of clients,
which are used to invest in overseas stocks:

(1)

The stocks to be invested in shall be those listed in overseas stock exchanges;

(2)

The funds used to invest in such stocks may not exceed 50% of the total net assets of a single financial management product; the funds
used to invest in a single stock may not exceed 5% of the total net assets of a single financial management product. The commercial
bank shall timely regulate the investment portfolio within the period of investment so as to ensure the continued compliance with
these requirements;

(3)

The minimum sales amount for a single client shall be more than 300,000 Yuan (or the foreign currency with an equivalent value);

(4)

The clients shall have related experiences in stock investment. The commercial bank shall formulate specific evaluation standards
and procedures, evaluate the experiences of clients in stock investment, and ask clients to sign for the confirmation of related
evaluation results;

(5)

The verse as investment manager shall be an institution approved or ratified by the overseas supervisory department which has concluded
the memorandum of understanding on supervisory cooperation concerning the overseas financial management products on behalf of clients
with China Banking Regulatory Commission (hereinafter referred to as the CBRC). The commercial bank shall conduct fidelity examination
on the overseas investment managers it selects, and ensure that the manager continuously holds the corresponding qualification; and

(6)

The commercial bank shall choose the stocks in the stock exchanges under the supervision of the overseas supervisory department which
has concluded the memorandum of understanding on supervisory cooperation concerning the overseas financial management services on
behalf of clients with the CBRC for investment.

A commercial bank shall, when providing overseas financial management products on behalf of clients, which are used to invest in overseas
fund products, select those as approved, registered or ratified by the overseas supervisory department which has concluded the memorandum
of understanding on supervisory cooperation concerning the overseas financial management services on behalf of clients with the CBRC.

A commercial bank shall, when issuing overseas financial management products on behalf of clients, which are used to invest in overseas
structured products, select those as provided by the financial institutions with the grade of A or higher as granted by internationally
recognized grading agencies.

A commercial bank shall, when providing overseas financial management services on behalf of clients, accord to the principles of prudence
and diversification of assets, fully take into account the market situation, its resources, its risk management capabilities and
investors’ risk tolerating ability, etc., carry out the development of products and the design of investment portfolio from the aspect
of asset allocation, avoid concentration risks with respect to investment areas, types of assets and investment objective.

A commercial bank shall, when providing overseas financial management services on behalf of clients, formulate related rules for investment
management, explicitly prescribe the principles, norms and procedures for selecting overseas investment managers and various investment
products, and the related staff members shall own corresponding qualities and qualifications.

A commercial bank shall, when providing overseas financial management services on behalf of clients, make investments strictly according
to the investment objective, investment scope, investment portfolio and investment restrictions as stipulated with its clients.

A commercial bank shall, when providing overseas financial management services on behalf of clients, use swaps, forwards and other
derivative financial instruments circulated in the financial market just for the purpose of avoiding risks, not for speculation or
large transactions.

A commercial bank shall, when providing overseas financial management services on behalf of clients, set up a client suitability evaluation
mechanism in light of the principle of “knowing about your clients”, and shall, based on the financial status, investment objectives,
investment experiences, risk preferences, investment expectations and etc. of its clients, evaluate the risk affordability of its
clients, determine the risk rating of its clients, provide its clients with the products in line with their appropriate risk levels,
and avoid wrongful or improper sales of its financial management personnel.

10.

A commercial bank shall, when providing overseas financial management services on behalf of clients, rigidly manage its financial
management personnel, pay great attention to the training of the marketing staff for financial management business, make them know
the features and risks of financial management products they sold and inform their clients of all these features and risks in a proper
manner during the selling process, and ensure the regulation compliance of their sales.

11.

A commercial bank shall, when providing overseas financial management services on behalf of clients, completely separate the raised
clients’ funds from its self-owned funds and the funds of relevant persons in charge, and open a separate account in the name of
financial management products. Commercial banks and their related persons in charge shall be strictly prohibited from misappropriating
the clients’ funds.

12.

A commercial bank may not, when providing overseas financial management services on behalf of clients, transfer the interests with
any related person in charge.

13.

When providing overseas financial management services on behalf of clients, a commercial bank shall, with the assistance of relevant
persons in charge and strictly according to the Interim Measures for the Administration of Commercial Banks’Personal Financial Management
Services and the Interim Measures for the Administration of Commercial Banks’ Financial Management Services on Behalf of Clients,
regularly disclose the related information to its clients for their investment decisions, and timely disclose unexpected incidents,
which will result in serious affect on the interests or yields of investors to its clients, and perform the obligation of information
disclosure dutifully.

14.

A commercial bank shall, when providing overseas financial management services on behalf of clients, set up and properly implement
procedures for the disposal of complaints the clients inside, properly accept, investigate and handle the complaints of clients.

15.

A commercial bank shall, when providing overseas financial management services on behalf of clients, set up a related risk management
system, formulate and continuously improve risk management rules, practically prevent market risks, credit risks, operational risks,
legal risks, reputation risks and etc., and ensure the legitimate rights and interests of investors.

16.

The clauses other than those that have been regulated in this Circular remain applicable.

All banking regulatory administrations shall forward this Circular to urban commercial banks, foreign-funded banks and other banking
financial institutions within their respective jurisdictions.

General Office of China Banking Regulatory Commission

May 10, 2007

General Office of China Banking Regulatory Commission
2007-05-10

REGULATIONS ON EXPORT CONTROL OF MISSILES AND MISSILE-RELATED ITEMS AND TECHNOLOGIES

Regulations of the People’s Republic of China on Export Control of Missiles and Missile-related Items and Technologies

Article 1 These Regulations are formulated for the purposes of strengthening export control of missiles and missile-related items
and technologies, and safeguarding the State security and social and public interests.

Article 2 The export of missiles and missile-related items and technologies referred to in these Regulations means the export for trade of
missiles and missile-related equipment, materials and technologies listed in “The Missiles and Missile-related Items and Technologies
Export Control List” (hereinafter referred to as the Control List) attached to these Regulations, and the gift to, exhibition in,
scientific and technological cooperation with, assistance to, provision of service for as such and other forms of technological transfer
thereof to foreign countries and regions.

Article 3 The State shall exercise strict control on the export of missiles and missile-related items and technologies so as to prevent the
proliferation of missiles and other delivering systems listed in the Control List that can be used to deliver weapons of mass destruction.

Article 4 The State shall practice a licensing system for the export of missiles and missile-related items and technologies. Without being
licensed, no unit or individual shall export missiles and missile-related items and technologies.

Article 5 The export of items and technologies listed in Part I of the Control List shall be subject to the Regulations of the People’s Republic
of China on Administration of Arms Export and other relevant provisions.

To export items and technologies listed in Part II of the Control List (hereinafter referred to as missile-related items and technologies),
the exporter shall follow the examination and approval procedures provided for in Articles 7 to 13 of these Regulations; however,
the export of missile-related items and technologies for military purpose shall be subject to the provisions of the preceding paragraph.

Article 6 The receiving party of missile-related items and technologies shall guarantee not to use missile-related items and technologies supplied
by China for purposes other than the declared end-use, nor to transfer missile-related items and technologies supplied by China to
any third party other than the declared end-user without the consent of the Chinese Government.

Article 7 Exporters of missile-related items and technologies shall register themselves with the competent department in charge of foreign
economic relations and trade of the State Council (hereinafter referred to as the competent foreign economic and trade department
of the State Council). Without such registration, no unit or individual shall export missile-related items and technologies. The
specific measures for such registration shall be formulated by the competent foreign economic and trade department of the State Council.

Article 8 Anyone who intends to export missile-related items and technologies shall apply to the competent foreign economic and trade department
of the State Council, fill in the export application form for missile-related items and technologies (hereinafter referred to as
the export application form), and submit the following documents:

(1) identification of the applicant’s legal representative, chief managers and the persons handling the deal;

(2) duplicates of the contract or agreement;

(3) technical specifications of the missile-related items and technologies;

(4) certificates of the end-user and end-use;

(5) documents of guarantee as defined in Article 6;

(6) other documents as may be required by the competent foreign economic and trade department of the State Council.

Article 9 An applicant shall truthfully fill in the export application form.

Export application forms shall be uniformly produced by the competent foreign economic and trade department of the State Council.

Article 10 The competent foreign economic and trade department of the State Council shall, from the date of receiving the export application
form and the documents set forth in Article 8 of these Regulations, examine the application, or examine the application jointly with
other relevant departments of the State Council and relevant departments of the Central Military Commission, and make a decision
of approval or denial within 45 working days.

Article 11Where the export of missile-related items and technologies entails significant impact on the State security, social and public interests,
the competent foreign economic and trade department of the State Council shall, jointly with relevant departments, submit the case
to the State Council and the Central Military Commission for approval.

Where the export of missile-related items and technologies is submitted to the State Council and the Central Military Commission for
approval, the timing restriction set forth in Article 10 of these Regulations shall not be applied.

Article 12 Where an application for the export of missile-related items and technologies is examined and approved, the competent foreign economic
and trade department of the State Council shall issue a licence for the export of missile-related items and technologies (hereinafter
referred to as an export licence), and notify the Customs in writing.

Article 13 An export licence holder who intends to change the missile-related items and technologies originally applied for export shall return
the original export licence and file a new application to obtain a new export licence according to relevant provisions of these Regulations.

Article 14 While exporting missile-related items and technologies, the exporter shall present the export licence to the Customs, complete the
customs procedures and accept supervision and control of the Customs in accordance with the provisions of the Customs Law.

Article 15 Where the receiving party contravenes the guarantees made according to the provisions of Article 6 of these Regulations or there
is a risk of proliferation of missiles and other delivering systems listed in the Control List that can be used to deliver weapons
of mass destruction, the competent foreign economic and trade department of the State Council shall suspend or revoke the export
licence granted and notify the Customs in writing.

Article 16 Where the exporter knows or should know that the missile-related items and technologies to be exported will be used by the receiving
party directly in its program for developing missiles and other delivering systems listed in the Control List that can be used to
deliver weapons of mass destruction, the export shall be subject to the provisions of these Regulations even if the items or technologies
are not listed in the Control List.

Article 17 Upon approval by the State Council and the Central Military Commission, the competent foreign economic and trade department of the
State Council may, jointly with relevant departments, temporarily decide to exercise export control on specific items and technologies
other than those listed in the Control List in accordance with the provisions of these Regulations.

Article 18 Those who export missile-related items and technologies without being licensed, or export missile-related items and technologies
beyond the scope of the export licence without authorization, shall be investigated for criminal liability in accordance with the
provisions of the criminal law on the crime of smuggling, the crime of illegal business operations, the crime of divulging State
secrets or other crimes; if such acts are not serious enough for criminal punishment, by distinguishing different circumstances,
they shall be punished in accordance with relevant provisions of the Customs Law, or be given a warning, confiscated of their illegal
income, and fined not less than one time but not more than five times the illegal income by the competent foreign economic and trade
department of the State Council; the competent foreign economic and trade department of the State Council may concurrently suspend
or even revoke the licensing for their foreign trade operations.

Article 19 Those who forge, alter, buy or sell the licence for the export of missile-related items and technologies shall be investigated for
criminal liability in accordance with the provisions of the criminal law on the crime of illegal business operations or the crime
of forging, altering, buying or selling official documents, certificates or seals of a State organ; if such acts are not serious
enough for criminal punishment, they shall be punished in accordance with relevant provisions of the Customs Law, and the competent
foreign economic and trade department of the State Council may concurrently revoke the licensing for their foreign trade operations.

Article 20 Where a license for the export of missile-related items and technologies is obtained by fraud or other illegal means, the competent
foreign economic and trade department of the State Council shall revoke such an export license, confiscate the illegal income, impose
a fine of not more than the illegal income, and suspend or even revoke the licensing for their foreign trade operations.

Article 21 Where, in violation of Article 7 of these Regulations, the export of missile-related items and technologies is operated without registration,
the competent foreign economic and trade department of the State Council shall ban such illegal activities according to law, and
relevant competent departments of the State shall impose punishment thereon in accordance with relevant laws and administrative regulations.

Article 22 Where the State functionaries in charge of control on the export of missile-related items and technologies abuse their powers, neglect
their duties or extort or accept money or properties from others by taking advantage of their positions, they shall be investigated
for criminal liability in accordance with the provisions of the criminal law on the crime of abuse of power, the crime of neglect
of duties, the crime of accepting bribes and other crimes; if such acts are not serious enough for criminal punishment, they shall
be given administrative sanctions according to law.

Article 23 In light of actual situations, the competent foreign economic and trade department of the State Council may, jointly with relevant
departments, amend the Control List and submit it to the State Council and the Central Military Commission for approval before implementation.

Article 24 These Regulations shall be effective as of the date of promulgation.

ANNEX

THE MISSILES AND MISSILE-RELATED ITEMS AND TECHNOLOGIES EXPORT CONTROL LIST

1. INTRODUCTION

(1) Part 1 of this List includes missiles and other delivery systems (including ballistic missiles, cruise missiles, rockets and unmanned
air vehicles) as well as their specially designed items and technologies. Part 2 includes items and technologies related to Item
1 of Part 1.

(2) If a Part 1 item is included in a system, that system will also be considered as a Part 1 item, except when the incorporated item
cannot be separated, removed or duplicated and the system is designed for civilian uses, where the item will be considered as a Part
2 item.

(3) All items listed in this List include their directly related technologies.

2. DEFINITIONS

For the purpose of this List, the following definitions apply:

(1) “Technology” means specific information which is required for the “development”, “production” or “use” of a product. The information
may take the form of “technical data” or “technical assistance”. But “technology” does not include technology “in the public domain”
nor “basic scientific research”.

(a) “In the public domain” as it applies to this List means technology which has been made available without restrictions upon its
further dissemination. (Copyright restrictions do not remove technology from being “in the public domain”.)

(b) “Basic scientific research” means experimental or theoretical work undertaken principally to acquire new knowledge of the fundamental
principles of phenomena and observable facts, not primarily directed towards a specific practical aim or objective.

(2) “Development” is related to all phases prior to “production” such as:

(a) Design

(b) Design research

(d) Design concepts

(e) Assembly and testing of prototypes

(f) Pilot production schemes

(g) Design data

(h) Process of transforming design data into a product

(i) Configuration design

(j) Integration system design

(k) Layouts

(3) “Production” means all production phases such as:

(a) Production engineering

(b) Manufacture

(d) Assembly

(e) Inspection

(f) Testing

(g) Quality assurance

(4) “Use” means:

(a) Operation

(b) Installation (including on-site installation)

(d) Repair

(e) Overhaul

(f) Refurbishing

(5) “Technical data” may take forms such as:

(a) Blueprints

(b) Plans

(d) Models

(e) Formulae

(f) Engineering designs and specifications

(g) Manuals and instructions written or recorded on other media or devices such as disk, tape, read-only memories.

(6) “Technical assistance” may take forms such as:

(a) Instruction

(b) Skills

(d) Working knowledge

(e) Consulting services

(7) “Production facilities” means equipment and specially designed software therefor integrated into installations for “development”
or for one or more phases of “production”.

(8) “Production equipment” means tooling, templates, jigs, mandrels, moulds, dies, fixtures, alignment mechanisms, test equipment,
other machinery and components therefor, limited to those specially designed or modified for “development” or for one or more phases
of “production”.

PART I

1. Complete ballistic missiles, space launch vehicles, sounding rockets, cruise missile and unmanned air vehicles that can be used
to deliver at least a 500 kg payload to a range of at least 300 km as well as the specially designed production facilities therefor.

2. The following items usable in the systems in Item 1:

(1) Individual stages of a ballistic missile;

(2) Individual stages of a rocket;

(3) Reentry vehicles of missiles;

(4) Heat shields and components fabricated of ceramic materials used in Subitem (3);

(5) Heat shields and components fabricated of ablative materials used in Subitem (3);

(6) Heat sinks and components fabricated of light-weight, high heat capacity materials used in Subitem (3);

(7) Electronic equipment specially designed for Subitem (3);

(8) Storable liquid propellant rocket engines, having a thrust force of 90 kN or greater;

(9) Solid propellant rocket engines, having a total impulse capacity of 1100 kN s or greater;

(10) Guidance sets capable of achieving system accuracy of 10 km or less (CEP) for ballistic missiles with a range of 300 km;

(11) Thrust vector control sub-systems;

(12) Warhead safing, arming, fuzing, and firing mechanisms;

(13) Production facilities and equipments designed for Subitems (1) to (12).

3. Interstage mechanisms for space launch vehicles and the specially designed production equipment therefor.

4. Rocket motor cases and the specially designed production equipment therefor.

5. Hydraulic, mechanical, electro-optical, or electro-mechanical flight control systems specially designed or modified for the systems
in Item 1 of Part I.

6. Attitude control equipment specially designed or modified for the systems in Item 1 of Part I.

7. Design technology for integration of air vehicle fuselage, propulsion system and lifting control surfaces to optimize aerodynamic
performance throughout the flight regime of an unmanned air vehicle.

8. Design technology for integration of the guidance, flight control, and propulsion data into a flight management system for optimization
of trajectory of ballistic missiles or space launch vehicles.

9. Passive interferometer equipment usable in the systems in Item 1.

10. Apparatus and devices designed or modified for the handling, control, activation and launching of the systems in Item 1.

11. Vehicles designed or modified for the transport, handling, control, activation and launching of the systems in Item 1.

12. Gravity meters, gravity gradiometers, and specially designed components therefor, for airborne or marine use, and having a static
or operational accuracy of one milligal or better, with a time to steady-state registration of two minutes or less;

13. Precision tracking systems:

(1) Tracking systems which use a translator installed on the rocket system or unmanned air vehicle in conjunction with either surface
or airborne references or navigation satellite systems to provide real-time measurements of in-flight position and velocity;

(2) Software which processes post-flight, recorded data, enabling determination of vehicle position throughout its flight path.

14. Structure specially designed for reduced radar reflectivity.

15. Structural material specially designed for reduced radar reflectivity.

16. Coatings specially designed for reduced radar reflectivity.

17. Coatings specially designed for reduced optical reflectivity or emissivity.

18. Production equipment, technology and specially designed software usable in Items 14 to 17 above.

19. Technology and specially designed software for reduced radar reflectivity, ultraviolet/infrared signatures or acoustic signatures.

PART II

1. Reentry Vehicle Components and Technology Thereof

(1) Design and manufacturing technology for ceramic heat shields;

(2) Design and manufacturing technology for ablative heat shields;

(3) Design and manufacturing technology for heat sinks and components thereof;

(4) Structure for protection against electromagnetic pulse (EMP) and X-rays and shock wave and combined blast and thermal effects:

(a) Radiation-hardened microcircuits and detectors;

(b) Hardened radome structure designed to withstand a combined thermal shock greater than 418 J/cm2 accompanied by a peak over pressure
of greater than 50 kPa.

(5) Design technology for radiation hardenning;

(6) Design technology for hardened structure.

2. Propulsion Components and Technology Thereof

(1) Lightweight turbojet engines that are small and fuel efficient;

(2) Lightweight turbofan engines that are small and fuel efficient;

(3) Lightweight turbocompound engines that are small and fuel efficient;

(4) Ramjet engines;

(5) Scramjet engines;

(6) Pulse jet engines;

(7) Combined cycle engines;

(8) Devices to regulate combustion for the above Subitems (4) to (7);

(9) Liquid and slurry propellant control systems, and specially designed components thereof, designed or modified to operate in vibration
environments of more than 10 g (RMS) between 20 Hz and 2,000 Hz:

(a) Servo valves designed for flow rates of 24 liters per minute or greater, at an absolute pressure of 7,000 kPa or greater, that
have an actuator response time of less than 100 microseconds;

(b) Pumps, for liquid propellants, with shaft speeds equal to or greater than 8,000 RPM or with discharge pressures equal to or greater
than 7,000 kPa.

(10) Production facilities specially designed for the above Subitems (1) to (9).

3. Liquid Propellants

(1) Hydrazine with a concentration of more than 70 percent;

(2) Unsymmetric dimethylhydrazine (UDMH);

(3) Monomethylhydrazine (MMH);

(4) Mixed amine;

(5) Dinitrogen tetroxide;

(6) Red Fuming Nitric Acid.

4. Solid Propellant and Propellant Constituents

(1) Metal fuels with particle sizes less than 500 mm, whether spherical, atomized, spheroidal, flaked or ground, consisting of 97
percent by weight or greater of any of the following metal and alloys of these:

(a) Zirconium;

(b) Boron;

(d) Titanium;

(e) Uranium;

(f) Tungsten;

(g) Zinc;

(h) Cerium.

(2) Ammonium perchlorate with particle sizes less than 500 mm;

(3) Spherical aluminum powder meeting the following requirements:

(a) With particle of uniform diameter;

(b) With aluminum content of 97 percent or greater;

(4) Boron Slurry, having an energy density of more than 40 x 106 J/kg;

(5) Nitro-amines:

(a) Cyclotetramethylene-tetranitramene (HMX);

(b) Cyclotrimethylene-trinitramine (RDX).

(6) Composite Propellants:

(a) Molded colloid propellants;

(b) Propellant including nitrate bonding agents and with an aluminum (particle) content of 5 percent or greater.

(7) Polymeric substances:

(a) Carboxl-terminated polybutadiene (CTPB);

(b) Hydroxy-terminated polybutadiene (HTPB).

(8) Triethylamine as an igniting agent.

5. Guidance and Control Set, Components and Related Technologies

(1) Gyro-astro compasses and other devices which derive position or orientation by means of automatically tracking celestrial bodies
or satellites;

(2) Flight control software and related test software;

(3) Gyro stability platform;

(4) Automatic pilots for UAV;

(5) Gyros with a rated drift rate stability of less than 0.5 degree per hour;

(6) Test table for inertial platform (including high-accuracy centrifuges and rotating table);

(7) Inertial Measurement Unit (IMU) tester;

(8) Inertial Measurement Unit (IMU) stable element handling fixture;

(9) Inertial Measurement Unit (IMU) platform balance fixture;

(10) Tester for gyro tuning;

(11) Tester for gyro dynamic balance;

(12) Gyro run-in/motor test station;

(13) Gyro evacuation and filling station;

(14) Centrifuge fixture for gyro bearings;

(15) Rectangular scatterometer for ring laser gyro production;

(16) Polarity scatterometer for ring laser gyro production;

(17) Reflectometer for ring laser gyro production;

(18) Surface profilometer for ring laser gyro production;

(19) Accelerometers with a proportional error of 0.25 percent or less;

(20) Accelerometer test station;

(21) Accelerometer axis align station;

(22) Specially designed test, calibration, and alignment equipment for gyro or accelerometer.

6. Target Detection System and Related Electronics

(1) Radar systems;

(2) Altimeters;

(3) Terrain contour mapping equipment;

(4) Scene mapping and correlation (both digital and analog) equipment;

(5) Imaging sensor equipment;

(6) Processors and software specially designed for processing navigation information;

(7) Electronic devices and components removed of conductive heat;

(8) Radiation-hardened electronic devices and components;

(9) Electronic assemblies and components operating at temperatures in excess of 125 C for a short period of time;

(10)Electronic devices and components with specially designed integrated support;

(11) Telemetry equipment and related technologies;

(12) Telemetering and telecontrol ground equipment;

(13) Analogue computers and digital computers having either of the following characteristics:

(a) Rated for continuous operation at temperatures from below minus 45 C to above plus 55 C;

(b) Designed as ruggedized or radiation hardened.

(14) Analogue-to-digital converter having one of the following characteristics:

(a) Rated for operation at temperatures from below minus 54 C to above plus 125 C, and

(b) Designed to meet military specifications for ruggedized equipment; or

(c) Designed or modified for military use or designed as radiation hardened, and having one of the following characteristics:

Converting at a rate of over 200000 times (complete conversion) per second under rated accuracy;

With accuracy exceeding 1/10000 of the whole range in the rated temperature scope;

With quality factor of over 1 108 (complete conversion times per second divided by accuracy);

The inbuilt microcircuits having the following characteristics:

(A) The maximum converting time is less than 20 microseconds under maximum resolution, and

(B) The rated nonlinearity is better than 0.025 percent of the range in rated temperature scope.

(15) Design technology for protection of avionics and electrical subsystems against electromagnetic pulse and electromagnetic interference
hazards from external sources:

(a) Design technology for shielding systems;

(b) Design technology for the configuration of hardened electrical circuits and subsystems;

7. Material

(1) Structural composites, including composite structures, laminates, and manufactures thereof, and resin impregnated fibre prepregs
and metal coated fibre preforms therefor, made with either organic matrix or metal matrix utilizing fibrous or filamentary reinforcements
having a specific tensile strength greater than 7.62 x 104 m and a specific modulus greater than 3.18 x 106 m:

(a) Polyimide composite;

(b) Polyamide composite;

(d) Quartz-fibre-reinforced composite;

(e) Carbon-fibre-reinforced composite;

(f) Boron-fibre-reinforced composite;

(g) Magnesium matrix composite;

(h) Titanium matrix composite.

(2) Ceramic composite materials with dielectric constant less than 6 at frequencies from 100 Hz to 10,000 MHz;

(3) Fine grain bulk artificial graphites having the following features measured at 20 C:

(a) With a bulk density of at least 1.72 g/cm3;

(b) With a tension rupture strain of at least 0.7 percent;

(4) Resaturated pyrolized carbon-carbon materials;

(5) Special Steel:

Titanium-stabilized duplex stainless steel (Ti-DSS) having the following characteristics:

(a) Containing 17.0 to 26.5 weight percent chromium and 4.5 to 7.0 weight percent nickel;

(b) Having a ferritic-austenitic microstructure (also referred to as a two-phase microstructure) of which at least 10 percent is austenite
by volume;

Ingots or bars having a size of 100 mm or more in each dimension;

Sheets having a width of 600 mm or more and a thickness of 3 mm or less;

Tubes having an outer diameter of 600 mm or more and a wall thickness of 3 mm or less.

(6) Ceramic heat shielding material;

(7) Ablative heat shielding material.

8. Design and Test Equipment and Technologies Related to Ballistic Missiles and Rockets

(1) Specially designed software, or analogue and digital computers thereof, for modeling, simulation, or design integration of the
systems;

(2) Vibration test systems capable of providing a force of 100kN or more and incorporating a digital controller, as well as specially
designed vibration test auxiliaries and software;

(3) Wind-tunnel for supersonic (Mach 1.4 to 5) or hypersonic (Mach 5 to 15) speeds except those specially designed for teaching and
those with the test area dimensions smaller than 25 cm (measured internally);

(4) Test benches which have the capacity to handle solid or liquid propellant rocket motors of more than 90 kN of thrust, or which
are capable of simultaneously measuring the three axial thrust components.

9. Production Equipment and Production Technology

(1) Equipment for production of solid propellants listed in Item 4 of Part II:

(a) Batch mixers having:

A total volumetric capacity of 110 litres or more; and

At least one mixing/kneading shaft mounted off centre.

(b) Continuous mixers having:

Two or more mixing/kneading shafts; and

Capability to open the mixing chamber.

(d) Fluid energy mills;

(e) Handling equipment for production of solid propellant;

(f) Curing equipment for production of solid propellant;

(g) Casting equipment for production of solid propellant;

(h) Pressing equipment for production of solid propellant;

(i) Acceptance testing equipment for production of solid propellant;

(j) Machining equipment for production of solid propellant;

(k) Extruding equipment for production of solid propellant.

(2) Equipment for producing liquid propellant in Item 3 of Part II:

(a) Handling equipment for production of liquid propellant;

(b) Production equipment for liquid propellant;

(3) Pyrolytic deposition and densification equipment and technology

(a) Technology for producing pyrolytically derived materials formed on a mould, mandrel or other substrate from precursor gases which
decompose at temperatures from 1,300 C to 2,900 C and at pressures of 130 Pa to 20 kPa, including technology for the composition
of precursor gases, flow-rates and process control schedules and parameters;

(b) Specially designed nozzles for the above processes;

Maximum working pressure of 69 MPa or greater;

Designed to achieve and maintain a controlled thermal environment of 600 C or greater, and

Possessing a chamber cavity with an inside diameter of 254 mm or greater.

(d) Chemical vapor deposition furnaces for the densification of carbon-carbon composites;

(e) Pyrolytic deposition and densification process controls equipment and specially designed software therefor.

(4) Equipment and technology for production of composite component:

(a) Filament winding machines coordinated and programmed in three or more axes, and specially designed computers and software thereof;

(b) Tape-laying machines coordinated and programmed in two or more axes, and specially designed software thereof;

(d) Technical data and procedures for the regulation of temperature, pressures or atmosphere in autoclaves or hydroclaves;

(e) Equipment for converting polymeric fibres (such as polyacrylonitrile, rayon or polycarbosilane) including special provision to
strain the fibre during heating;

(f) Equipment for the vapor deposition of elements or compounds on heated filament substrates;

(g) Equipment for the wet-spinning of refractory ceramics (such as aluminium oxide);

(h) Equipment for special fibre surface treatment;

(i) Equipment for producing prepregs and preforms;

(j) Moulds, mandrels, dies, fixtures and tooling for the preform pressing, curing, casting, sintering or bonding of composite structures,
laminates and manufactures thereof.

Source:MOFTEC

REGULATIONS ON MANAGEMENT OF INTERNATIONAL FREIGHT FORWARDERS

Regulations of the PRC on Management of International Freight Forwarders

CHAPTER I GENERAL PROVISIONS CHAPTER II CONDITIONS FOR THE ESTABLISHMENT CHAPTER III PROCEDURES OF EXAMINATION AND APPROVAL CHAPTER
IV BUSINESS SCOPE CHAPTER V PENALTIES CHAPTER VI SUPPLEMENTARY PROVISIONS

Article 1 These regulations are formulated to govern behaviors of international freight forwarders to safeguard the lawful rights and benefits
of consignors and consignees of exports and imports, and international freight forwarders and to promote the development of foreign
trade.

Article 2 The international freight forwarders referred to in the regulations mean those trades entrusted by consignors and consignees of exports
and imports conduct international freight forward and related businesses for their clients and collect enumerations for their services
in their own names or in the name of their consignors.

Article 3 International freight forwarders must obtain the status of a legal body as an enterprise of the People’s Republic of China according
to law.

Article 4 The Competent Departments of foreign trade and economic cooperation under the State Council are responsible for supervision and management
of international freight forwarders throughout the country.

The competent departments of trade and economic relations with other countries of people’s governments of various provinces, autonomous
regions and municipalities as well as special economic zones (shortened below as local competent departments of trade and economic
relations with other countries) are responsible for supervision and management of international freight forwarders in their administrative
areas in accordance with the regulations and with in the scope of power authorized by the competent departments of foreign trade
and economic cooperation under the State Council.

Article 5 The supervision and management of international freight forwarders should abide by the following principles:

1. To meet the demands of development of foreign trade and promote the rational distribution of international freight forwarding agencies.

2. To protect fair competition and promote the improvement of services of international freight forwarders.

Article 6 Enterprises engaged in international freight forwarding should observe the laws and administrative rules and regulations of the People’s
Republic of China and be subject to the supervision and management carried out by related competent institutions of their trade in
keeping with relevant laws and administrative rules and regulations.

CHAPTER II CONDITIONS FOR THE ESTABLISHMENT

Article 7 According to the characteristics of the trade the establishment of an international freight forwarder must acquire the following
conditions:

1. It has competent professional to engage in international freight forwarding.

2. It has a fixed site for business and necessary facilities.

3. It has stable sources of and markets for exports and imports.

Article 8 The minimum amount of registered capital of an international freight forwarder must meet the following demands:

1. The minimum amount of registered capital of an international freight forwarder by sea should be 5 million yuan.

2. The minimum amount of registered capital of an international freight forwarder by air should 3 million yuan.

3. The minimum amount of registered capital of an international freight forwarder by land or and international express deliverer should
be 2 million yuan.

For an enterprise engaged in two or more than two items of businesses mentioned above its minimum amount of registered capital should
be that of the item with the highest amount of registered capital.

In sitting up a branch an international freight forwarder should add a registered capital of 500,000 yuan.

CHAPTER III PROCEDURES OF EXAMINATION AND APPROVAL

Article 9 To apply for the establishment of an international freight forwarding agency the applicant should submit an application to the competent
department of trade and economic relations with other countries of the locality when the agency is to be set up and, with opinions
put forward by the department, should forward the applications to the competent department of foreign trade and economic cooperation
under the State Council for approval and ratification.

Article 10 To apply for the establishment of an international freight forwarding agency. The following documents should be submitted.

1. Application.

2. Draft Constitution of the enterprise.

3. The names, posts and identification paper of leading members and chief staff members.

4. Certificates of credit standing and conditions of operational facilities.

5. Other documents as stipulated by the competent departments of foreign trade and economic s/cooperation under the State Council.

Article 11 The local competent department of trade and economic relations with other countries should put forward its opinions within 45 days
farm the day it receives the application and other documents and then forwards them to the competent department of foreign trade
and economic cooperation under the State Council.

The competent department of foreign trade and economic cooperation under the State Council should decide on approval or disapproval
within 45 days from the day it receives the application for the establishment of an international freight forwarding agency and other
documents, and should issue a certificate of ratification to the approved international freight forwarding agency.

Article 12 With the certificate of ratification issued by the competent department of trade and economic corporation with other countries the
he international freight forwarding agency should go through the procedures of enterprise and taxation registration according to
relevant stipulations of laws, administrative rules and regulations.

Article 13 The competent department of trade and economic cooperation under the State Council should cancel the certificate of ratification
if the applicant does not open business without proper reasons within 180 days from the day it receives the certificate of ratification.

Article 14 The certificate of ratification is valid for 3 years.

When the certificate of ratification expires and the agency wants to continue its business the international freight forwarding agency
should apply to the competent department of foreign trade and economic cooperation under the State Council for another certificate
of ratification 30 days before the expire.

If the international freight forwarding agency does not apply for another certificate of ratification according to stipulations in
the previous clause, it will automatically lose its qualification to engage in international freight forwarder.

Article 15 When the international freight forwarding agency terminates its business it should report to the local competent department of trade
and economic relations with other countries or to the competent department of foreign trade and economic cooperation under the State
Council according to the procedures of application for its establishment as stipulated in Article 9 and hand in its ratification
certificate for cancellation.

Article 16 To apply for setting up a branch the international freight forwarding agency should go through the necessary procedures stipulated
in the regulations.

Article 17 An international freight forwarding agency may accept a commission to operate part or all of the following business:

1. To book ship’s holds and warehouses.

2. Supervision of freight loading and unloading and assembling and dismantling of containers.

3. Multi-forms of international through transportation.

4. International express delivery excluding private letters.

5. To make customs declaration, undergo customs quarantine and inspection and to insure,

6. To prepare related bills and certificates, pay transport charges, settle accounts and pay miscellaneous fees.

7. Other businesses of international forwarder.

An international freight forwarding agency should conduct its business within the ratified scope. To engage in above-mentioned businesses
an international freight forwarding agency should register with relevant competent departments as required by related laws and administrative
rules and regulations.

International freight forwarding agencies can be mutually entrusted to conduct business stipulated in this articles.

Article 18 International freight forwarding agencies should pursue and operational policy of safety, high speed, accuracy, economy and convenience
in serving consignors and consignees of exports and imports.

Article 19 An international freight forwarding agency must set the standards of charges to be collected according to relevant state stipulations
and publicize them at the business site.

Article 20 An international freight forwarding agency must use invoices checked and approved by taxation departments in its business,

Article 21 An international freight forwarding agency should hand in a report on its business performance of the previous year to the competent
department of trade and economic relations with other countries of its locality before the end of March every year.

Article 22 An international freight forwarding agency is not allowed to do the following things:

1.To conduct its business through using unfair competition method.

2. To lend, lease or transfer to others its certificate of ratification and other papers concerning international freight forwarder.

Article 23 When and international freight forwarding agency violates the stipulations of Articles 19 and 21 of the regulations, the competent
department of foreign trade and economic operation under the State Council should serve if a warning and order it to amend with a
time limit. If not, the department should cancel its certificate of ratification.

Article 24 When an international freight forwarding agency violates the 2nd stipulation of Article 17 and stipulations of Articles 20 and 22,
the competent department of foreign trade and economic cooperation under the State Council should serve it a warning and order it
to suspend business for rectification up to canceling its certificate of ratification. Related competent departments of industrial
and commercial administration, customs and taxation should give punishments according to relevant laws and administrative rules and
regulations.

Article 25 To engage in international freight forwarder as prescribed in Article 17 without authorization in violation of the stipulations of
the regulations the competent departments of foreign trade and economic cooperation under the State Council should be these illegal
business activities and the administration institutions of industry and commerce should give punishments according to laws, and administrative
rules and regulations.

Article 26 If violations of the regulations constitute a crime the violator should be given criminal sanctions according to law.

CHAPTER VI SUPPLEMENTARY PROVISIONS

Article 27 International freight forwarders may set up an association of international freight forwarders which can give guidance and provide
services to its members according to its charter.

12 Page 1 of 2

Retirement

SPECIAL PROVISIONS OF THE STATE COUNCIL CONCERNING THE FLOATATION AND LISTING ABROAD OF STOCKS BY LIMITED STOCK COMPANIES

THE GOVERNMENT PROCUREMENT LAW

ADMINISTRATIVE RULES FOR THE REPORTING BY FINANCIAL INSTITUTIONS OF LARGE-VALUE AND SUSPICIOUS FOREIGN EXCHANGE TRANSACTIONS

ADMINISTRATIVE RULES FOR THE REPORTING OF LARGE-VALUE AND SUSPICIOUS RMB PAYMENT TRANSACTIONS

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON DISTRIBUTING THE SYSTEM OF THE INDIRECT DECLARATION AND VERIFICATION OF INTERNATIONAL REVENUE AND EXPENDITURE STATISTICS (FOR TRIAL IMPLEMENTATION)

RULES FOR ANTI-MONEY LAUNDERING BY FINANCIAL INSTITUTIONS

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE RELEVANT ISSUES CONCERNING THE TAX PAYMENT BY ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES ENGAGING IN THE BUSINESS OF FINANCIAL ASSET DISPOSITION

LETTER OF THE MINISTRY OF COMMERCE ABOUT REINFORCING THE PROTECTION OF INTELLECTUAL PROPERTY WHEN ATTENDING OR ORGANIZING OVERSEAS EXHIBITIONS

MEASURES FOR THE ADMINISTRATION OF INFORMATION DISCLOSURE OF COMMERCIAL FRANCHISES

CIRCULAR OF THE GENERAL OFFICE OF CHINA BANKING REGULATORY COMMISSION ON REGULATING THE OVERSEAS INVESTMENT SCOPE FOR COMMERCIAL BANKS TO PROVIDE OVERSEAS FINANCIAL MANAGEMENT SERVICES ON BEHALF OF CLIENTS

REGULATIONS ON EXPORT CONTROL OF MISSILES AND MISSILE-RELATED ITEMS AND TECHNOLOGIES

REGULATIONS ON MANAGEMENT OF INTERNATIONAL FREIGHT FORWARDERS

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