ANNOUNCEMENT NO.74, 2006 OF THE GENERAL ADMINISTRATION OF CUSTOMS ON ADOPTING THE ANNOTATIONS ON THE HARMONIZED COMMODITY DESCRIPTION AND CODING SYSTEM (2007 EDITION) FOR NOTING IMPORT-EXPORT TARIFF COMMODITIES AND ITEMS THEREOF

Announcement No.74, 2006 of the General Administration of Customs on Adopting the Annotations on the Harmonized Commodity Description
and Coding System (2007 Edition) for Noting Import-export Tariff Commodities and Items thereof

[2006] No. 74

In accordance with the related provisions on rights and obligations of the contracting states in the Convention of the Harmonized
Commodity Description and Coding System, we hereby proclaim as follows:

As from January 1,2007, an import-export tariff, as based on the Harmonized Commodity Description and Coding System (2007 Edition)
(hereinafter referred to as the Harmonized System) of the World Customs Organization was adopted. With a view to guaranteeing the
uniform understanding and implementation of the Harmonized System by each contracting state, the World Customs Organization has formulated
the Annotations on the Harmonized Commodity Description and Coding System, which are the statutory annotations on the scope and descriptions
of commodities under the items of the Harmonized System. The General Administration of Customs has organized the print of the Annotations
on the Harmonized Commodity Description and Coding System, which is one of the legal bases for the Chinese costumes to classify import-export
tariff commodities.

The General Administration of Customs

December 27, 2006

The General Administration of Customs
2006-12-27

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE RELATED MATTERS CONCERNING THE SETTLEMENT MANAGEMENT OF LAND VALUE-ADDED TAX ON REAL ESTATE ENTERPRISES

Circular of the State Administration of Taxation on the Related Matters Concerning the Settlement Management of Land Value-added Tax
on Real Estate Enterprises

Cai Shui Fa [2006] No.187

The local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically
designated in the state plan, the state taxation bureaus of Tibet Autonomous Region and Ningxia Autonomous Region:

In order to further enhance the settlement management of land value-added tax on real estate enterprises, in light of the Law of the
People’s Republic of China on the Administration of Tax Collection, the Provisional Regulations of the People’s Republic of China
on Land Value-added Tax and the related provisions, related issues are hereby notified as follows:

Settlement unit for land value-added tax

The land value-added tax shall be settled for each real estate development project examined and approved by related authorities of
the state; if any project is developed by stages, it shall be settled for each stage of the project.

In case a development project comprises both ordinary housing and non-ordinary housing, the added value shall be respectively calculated.

Settlement requirements for land value-added tax

(1)

In case of any of the following circumstances, the taxpayer shall perform the settlement of its land value-added tax:

(a)

a real estate development project has been finished and sold out;

(b)

a real estate development project that has not been finished and is subject to final accounts is transferred as a whole;

(c)

the land use right is transferred directly.

(2)

In case of any of the following circumstances, the competent tax authority may require the taxpayer to carry out the settlement of
its land value-added tax:

(a)

As regards a real estate development project that has been finished and accepted, the proportion of the building area that is already
transferred to the whole project area is more than 85 percent; or while this proportion is lower than 85 percent, the residuary salable
building area has been leased or used for self-purpose;

(b)

The sale is not yet finished upon the expiration of three years as of the day when the sale ( advance sale) license is obtained;

(c)

The taxpayer has filed an application for writing-off tax registration but has not handled the formalities for settling the land value-added
tax yet;

(d)

Other circumstances as prescribed by the tax authorities at the provincial level.

Determination of the revenues generated from the real estate used for non-direct sales and self-use

(1)

Where the development products of a real estate enterprise are used by this enterprise as the welfare of its workers, reward, foreign
investment, distributions to the shareholders or investors, compensation for debts, substitution for the non-monetary assets of any
other entity or individual, etc., in case the ownership is transferred, it shall be deemed as the sale of real estate, and its revenues
shall be determined under the methods and sequence as follows:

(a)

the revenues shall be determined subject to the average price of the same kind of real estate that was sold by this enterprise at
the same district and in the same year;

(b)

the revenues shall be determined by the competent tax authority with reference to the market price or appraised value of the same
kind of real estate that was sold at the same district and in the same year.

(2)

Where a real estate enterprise changes the use of some real estate it develops to self-use, lease or for any other commercial purpose,
in case of no transfer of property ownership, it shall be exempted from the land value-added tax, the revenue therefrom may not be
listed in the settlement of tax payment, and the costs and expenses may not be deducted accordingly.

Deductible items of land value-added tax

(1)

A real estate enterprise shall calculate the amount under the deductible items concerning the settlement items pursuant to the provisions
of Article 6 of the Interim Regulations of Land Value-added Tax and Article 7 of the rules for the implementation thereof when
handling the land value-added tax settlement. It shall provide the legal and effective vouchers when deducting the part paid for
obtaining land use right, real estate development costs, expenses and the related taxes paid for the transfer of real estate; otherwise,
no aforesaid expenses may be deducted, unless it is prescribed otherwise.

(2)

In case the vouchers or materials on prophase construction costs, building and installation engineering costs, infrastructural costs
and development overheads, the deduction of which is granted to a real estate enterprise when it performs the settlement of land
value-added tax, fail to satisfy the settlement requirements or are fallacious, the local tax authority may check and ratify the
standards for calculating the unit area amount of the aforesaid four development costs with reference to the materials on construction
costs and ratings published by the local administrative department of construction cost and integrating the building structure, purpose
and location and other related factors into consideration, and make corresponding calculations and deductions. The tax authorities
at the provincial level shall be responsible for the determination of the specific measures for check and ratification.

(3)

As regards any public facilities as neighborhood committee or police station, chamber, parking lot (garage), premise for realty management,
transformer substation, thermal station, water plant, premise for cultural and sports activities, school, kindergarten, nursery,
hospital, facility for postal and communications, which is developed and built by a real estate enterprise and is auxiliary to the
settlement items, it shall be disposed subject to the principles as follows:

(a)

if its property right is owned by all proprietors after it has been finished, its costs and expenses may be deducted;

(b)

if it is gratuitously transferred to the government or any public utility entity for non-profitable social public service after it
has been finished, its costs and expenses may be deducted;

(c)

if it is transferred with compensation after it has been finished, the revenues therefrom shall be calculated and the costs and expenses
may be deducted upon approval.

(4)

As regards any decorated premise sold by a real estate enterprise, the decoration fees may be incorporated into the real estate development
cost.

The expenses drawn by a real estate enterprise in advance may not be deducted except it is prescribed otherwise.

(5)

The deductible amount under the settlement items of the common costs or expenses cost by more than one real estate projects shall
be calculated and determined subject to the proportion of the salable building area under the settlement items to the total building
area of all the projects concerned or in any other reasonable means.

Materials to be submitted for the settlement of land value-added tax

A taxpayer that satisfies the provision of Subparagraph (1) of Article 2 of this Circular shall handle the formalities for settlement
at the competent tax authority within 90 days as of the data when it meets the settlement requirements; a taxpayer that satisfies
the provision of Subparagraph (2) of Article 2 of this Circular shall handle the formalities for settlement within the time limit
prescribed by the competent tax authority.

When performing the settlement of land value-added tax, a taxpayer shall submit the materials as follows:

(1)

application in written form for the settlement of land value-added tax and land value-added tax returns;

(2)

statements on the final accounts of finished projects, vouchers regarding the payment of land price for obtaining land use right,
contracts about the transfer of state-owned land use right, requisitions on the settlement of bank loan interests, settlement bills
of project construction contracts, statistical statements on the contracts for sales of commercial housing and other evidential documents
concerning the revenues, costs and expenses of transferring real estate;

(3)

other evidential documents concerning the settlement of land value-added tax as required to be submitted by the competent tax authority.

With respect to a settlement account checked and verified by an intermediary entrusted by the taxpayer, it shall also submit the Verification
Report on the Settlement of Land Value-added Taxes issued by the intermediary.

Check and verification of the settlement items of land value-added tax

An intermediary of taxation shall issue authentication report in light of the format prescribed by the tax authority when checking
and verifying the settlement items upon entrustment. The tax authority may adopt an authentication report that satisfies the related
requirements.

The tax authorities shall suggest explicit requirements on access conditions, work process, content to be verified, legal responsibilities,
etc., for the intermediaries of taxation embarking on the settlement and verification work of land value-added tax, and make sure
the work on leading and managing these organs.

Collection of land value-added tax upon verification

In case of any of the following circumstances occurs to a real estate enterprise, the tax authority may, collect land value-added
tax against it upon verification on the basis of the levying rate that is no less than the advance levying rate with reference to
the tax burdens of the local enterprises similar to it in terms of development scale and income level:

(1)

it fails to establish accounting books as it should do so in light of the provisions of laws and administrative regulations;

(2)

it destroys the accounting books without permission or refuses to offer the data of tax payments;

(3)

it has set up accounting books, nevertheless, the accounting items are perplexing, or its cost data, revenue vouchers and expense
vouchers are mutilated and incomplete and the transfer income or amount under the deductible items is difficult to be determined;

(4)

it complies with the settlement conditions of land value-added tax, but it fails to handle the formalities for settlement within the
prescribed time limit, and it is ordered to perform settlement within a certain time limit by the tax authority but still fails to
do so in case of the expiration;

(5)

the taxable basis declared is clearly on the low side and no justifiable reason exits.

Handling of transferring real estate after settlement

Where any real estate fails to be transferred when conducting the settlement of land value-added tax but is sold or transferred with
compensation after the settlement, the taxpayer shall file the land value-added tax returns pursuant to related provisions. The amount
under the deductible items shall be calculated by multiplying the cost for unit building area with the areas sold or transferred.

the cost for unit building area = the amount under the deductible items of the settlement total building area of the settlement

This Circular shall come into force as of February 1, 2007. All provincial tax authorities shall formulate specific administrative
measures for settlement subject to the provisions of this Circular and upon the actual situation of each province.

The State Administration of Taxation

December 28, 2006

The State Administration of Taxation
2006-12-28

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING THE DETERMINATION OF THE BASIS FOR THE CALCULATION OF VEHICLE PURCHASE TAX

Circular of the State Administration of Taxation concerning the determination of the Basis for the Calculation of Vehicle Purchase
Tax

Guo Shui Han [2006] No. 1139

The state taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government, and cities
specifically designated in the state plan:

After the Notice of the State Administration of Taxation concerning Related Matters on Using the New Version of Uniform Invoice for
Motor Vehicle Sale (Guo Shui Han [2006] No. 479, referred to as the Notice hereinafter) was distributed, the State Administration
of Taxation made some modifications to the specimen of the new version of the Uniform Invoice for Motor Vehicle Sale, and some regions
asked for the State Administration of Taxation to clarify the calculation method of the prices of vehicles without VAT. Our circular
regarding relevant issues are given as follows:

According to the related provisions of the Interim Regulations of the People’s Republic of China on Value-added Tax and the detailed
rules for the implementation thereof, the formula for calculating the taxpayer’s sales amount with VAT unpaid shall be:

Sales Amount = Sales Amount with Duty (1 + Tax Rate or Levying Rate of VAT)

When the competent taxation authority determines the basis for calculating and collecting the vehicle purchase tax, the method of
calculating the vehicle’s price with VAT unpaid shall be as same as that of calculating VAT, namely,

Price with Duty Unpaid= (Total Price + Off-price Fees) (1 + Tax Rate or Levying Rate of VAT)

The notes of Paragraph (1) of Article 12 of Appendix 1i.e Form on Vehicle Purchase Tax Return of the Measures for the Administration
of Vehicle Purchase Tax Collection” (Order No. 15 of the State Administration of Taxation), shall be revised as: “As for vehicles
purchased within the territory of China, the form shall be filled out in accordance with the uniform invoice for motor vehicle sale
(the column of price with duty unpaid)”; and Paragraph (3) shall be revised as: “As for vehicles which are produced, donated, awarded
or obtained by any other means and for self-use, the form shall be filled out in accordance with the uniform invoice for motor vehicle
sale (the column of price with duty unpaid)”.

These Provisions shall come into effect as of December 1, 2006.

The State Administration of Taxation

November 30, 2006

The State Administration of Taxation
2006-11-30

GUIDELINES FOR FINANCIAL INNOVATION OF COMMERCIAL BANKS

Guidelines for Financial Innovation of Commercial Banks

December 6, 2006
Chapter I General Provisions

Article 1

In order to encourage commercial banks to accelerate financial innovation, regulate financial innovation activities, and promote
continuous and healthy development of financial innovations in the banking industry, these Guidelines are formulated in accordance
with the “Banking Supervision Law of the People’s Republic of China”, the “Commercial Bank Law of the People’s Republic of China”
as well as other related laws and regulations.

Article 2

These Guidelines apply to all the Chinese-invested commercial banks, solely foreign-invested banks and Chinese-foreign equity joint
banks which are set up within the territory of the People’s Republic of China.

The policy banks, rural cooperative banks, urban credit cooperatives, rural credit cooperatives, and branches of foreign banks, which
are set up within the territory of the People’s Republic of China, shall refer to these Guidelines when making financial innovations.

The financial asset management companies, trust and investment corporations, financial lease companies, financial companies of business
groups, auto financing companies, currency brokerage companies, and other non-bank financial institutions, which are supervised by
China Banking Regulatory Commission and set up within the territory of the People’s Republic of China, shall refer to these Guidelines
when making financial innovations.

Article 3

The term “financial innovations” refers to the various innovative activities in respect of strategic decision making, system arranging,
institutional setting, personnel preparing, mode of management, business flow and financial products and so on, which are carried
out by commercial banks through bringing in new technologies, applying new methods, expanding new markets and establishing new organizations
in order to adapt to the development of economics, and which are finally embodied into continuous improvement of the risk management
capacities of banks, and the creations and updating of service products and service methods offered to customers.

Article 4

Financial innovation places the interests of the consumers at the core, and follows basic market principles in approach. Through
financial innovation, commercial banks raise their competitive strengths, improve their risk management skills, and better satisfy
the needs of their customers and market requirements. Financial innovation is one of the most important elements of the commercial
banks’ sustainable growth strategy.

Article 5

Commercial banks shall be fully aware that financial innovations and risk management are two sides of the same coin. A pre-condition
of financial innovation is proper risk management. Commercial banks must identify, measure, monitor and control new risks on a timely
basis.

Article 6

Commercial banks shall guarantee the existence of various necessary resources such as staff, funds, information technologies, internal
control resource and risk management resource and so on to carry out financial innovation activities.

Article 7

The China Banking Regulatory Commission (hereinafter referred to as The CBRC) shall take the promotion of financial stability and
the advancement of financial innovation as the prime criteria of sound supervision, insist in taking the principle of paying equal
attention to both encouragement and regulation and attaching importance to both cultivation and risk prevention, and supervise and
administer financial innovation activities of commercial banks subject to the related laws, regulations and these Guidelines.

Article 8

The CBRC will actively create an system and legal environment which is propitious for financial innovations, timely amend related
provisions which are not suitable for financial innovations, and follow up and appraise the supervision rules and policies at regular
intervals and update them timely on the basis of fully considering the market changes and the public needs, so as to continuously
enhance the supervision validity.

Article 9

THE CBRC shall actively drive the construction of a market environment that is suitable for financial innovations, promote the formation
of fair trading rules for financial innovation activities, create a market environment for fair competition, and establish a good
order for financial competition.

Chapter II Basic Principles

Article 10

Commercial banks shall insist on the principle of legality and compliance, abide by laws, administrative regulations, and rules in
the process of financial innovation. No commercial bank shall be allowed to violate any laws and regulations or evade supervision
in any disguised form under the name of financial innovation.

Article 11

Commercial banks shall insist on the principle of fair competition, other than make low-price dumping, vicious competition or other
kinds of unfair competitive behaviors for the purpose of squeezing out competition counter-parties in the process of financial innovation.

Article 12

Commercial banks shall fully respect others’ intellectual property rights other than infringe upon the intellectual property rights
or commercial secrets of others in the process of financial innovation. Commercial banks shall make effective strategies to protect
intellectual property and protect independently innovated financial products and services.

Article 13

Commercial banks shall insist on the principles that the costs can be calculated, the risks can be controlled and the information
shall be fully disclosed in the process of financial innovation.

Article 14

Commercial banks shall “know its own business” in the process of financial innovation. The board of directors and the senior management
shall guarantee themselves to have a good understanding of the bank’s financial innovation business, operation, and market situation
with certain effective methods.

Article 15

Commercial banks shall “know its own risks” in the process of financial innovation. The board of directors and the senior management
shall have an adequate knowledge of the risks in financial innovation activities, appraise, examine and approve the policies concerning
financial innovation activities and the risk limitation of different kinds of new products at regular intervals, so as to limit the
risks of financial innovation activities within a controllable scope.

Article 16

Commercial banks shall “know its own customers” in the process of financial innovation. Commercial banks shall define the target
customer groups, fully investigate the customer’s risk preference, risk recognition capacity and risk tolerance, appraise customers
with the need of business, and provide different financial products and services in the light of different target customer groups.
No commercial bank shall be allowed to provide products and services which are incompatible with the customers’ true needs and risk
tolerance to its customers.

Article 17

Commercial banks shall “know its own counter-parties” in the process of financial innovation. When the commercial banks carries out
business concerning with investment or trading, it shall make a careful analysis and research on its counter party’s credit risks,
market risks and legal risks, make a good management of the counter party’s risks, closely follow up the status of the counter party’s
risks and take effective counter-measures especially when the market circumstance changed greatly.

Article 18

Commercial banks shall comply with code of professional ethics and code of conduct, completely accomplish the duty obligation, and
fully ensure the interests of financial consumers and investors in the process of financial innovation.

Chapter III Operation Mechanism

Article 19

The board of directors of a commercial bank shall be responsible for making financial innovation development strategies and corresponding
risk management policies, and supervise the implementation of the strategies and policies. The board of directors shall make sure
that the senior management staff have adequate funds and qualified professional talented people in order to effectively carry out
the strategies and manage the risks brought about in the process of innovation. The board of directors shall make sure that the development
strategies and risk management policies of financial innovations are in accordance with the overall strategies and risk management
policies of the whole bank.

The senior management shall be responsible for carrying out the development strategies and risk management policies of financial innovations
formulated by the board of directors. The senior management shall set up systems of risk management, internal control, documents
management, audit flow management and institutions concerning trainings and information feedback, which can be applied for effectively
managing innovation activities.

Article 20

Commercial banks shall optimize the internal institutional structure and the business flow, form a business implementation framework
with sound functions of marketing services in the foreground, rigorous risk control in the middle ground, and powerful guaranty and
support in the background, and in light of its real situation, simplify the management levels, gradually reconstruct the existing
“departmental bank”, establish a “flow bank” suitable for financial innovations to realize the separation of foreground, middle ground
and background from each other and their effective coordination and cooperation.

Article 21

Commercial banks shall formulate and improve the internal management procedures concerning products and services of financial innovations,
and the procedures shall at least contain such stages as demand initiation, project initiation, design, development, test, risk evaluation,
examination and approval, commissioning, trainings, sales, post evaluation, and regular renewing; the commercial bank shall analyze
the market demand, target customer and cost-income detailedly, make scientific risk evaluation and risk pricing, accurately measure
the benefits after risk adjustment.

Article 22

Commercial banks shall make bylaws in advance before introducing financial innovation products and services, and formulate operation
provisions, institution of internal management, and reminding contents for customers in accordance with each type of business, and
that whose conditions are mature shall formulate a product manual.

Article 23

Commercial banks shall enhance the input of the information of science and technology for financial innovations, set up an effective
technology support system and management information system for innovation business, guarantee the integrity and safety of data information,
as well as the continuously carrying out operating plans and business flow, and improve the advanced technology of financial innovations.

Article 24

Commercial banks shall establish and improve a customer relationship management system which is considered customer as center regarding
its reality, effectively integrate the information of customers, and provide customers with more innovative products and services
through data analysis and mining, continuously improve the service level for customers, and enhance customer satisfaction.

Article 25

Commercial banks shall gradually set up a performance evaluation and appraisal mechanism suitable for financial innovation activities
so as to form an effective incentive mechanism and enterprise culture atmosphere which can promote financial innovations.

Article 26

Commercial banks shall gradually formulate salary bylaws, training plans and human resource strategies suitable for financial innovation
activities in order to continuously attract professional people with rich experiences, and enhance the professional capacity of financial
innovation.

Article 27

Commercial banks shall organize training activities for financial innovation with different kinds, so as to ensure its staff to have
an intimate knowledge of the features and the work flow of innovative products and services, establish and improve the mechanism
of qualification confirmation and evaluation of the jobholders of related business, and make sure its staff who are engaged in the
innovation business have necessary professional qualifications and practical work experiences.

Chapter IV Protection of Customers’ Interests

Article 28

Commercial banks shall comply with the standard of behavior in its industry and the business conduct for employees of banks, provide
customers with accurate, fair information without misleading, and fully reveal the rights, obligations and risks related to the innovative
products and services in the process of financial innovation.

Article 29

Commercial banks shall comply with the requirements of laws and regulations, as well as the agreements with customers, and perform
necessary confidentiality obligations.

Article 30

Commercial banks shall provide customers with professional, objective and fair suggestions, and especially attach great importance
to and faithfully perform the obligations and duties to customers in accordance with requirements of the related laws in the process
of financial innovation. .

Article 31

Commercial banks shall be competent to identify and appropriately handle different kinds of interest conflicts arising out of financial
innovations, and fairly deal with the interest conflicts between the bank and the customers, or between the bank and the third-party
service provider.

Article 32

Commercial banks shall strictly define bank assets and customer’s assets and separate them, make effective risk separation management,
and make an adequate protection of customer’s assets.

Article 33

Commercial banks shall establish corresponding records about customer information fitting for the requirements of innovation services,
do a good job in the evaluation of customers’ suitability to the innovative products and services, and induct customers to invest
and consume rationally.

Article 34

Commercial banks shall, in the process of financial innovation, establish channels to effectively take up the complaints and suggestions
from customers, timely, efficiently, and responsibly deal with the customers’ complaints, summarize and analyze the information from
customers’ complaints at regular intervals, report the customers’ complaints and the corresponding settlement to the related persons
and departments at regular intervals, study and handle customers’ potential requirements and improvement suggestions regarding financial
innovations, and continuously improve the service quality and service level of financial innovations.

Chapter V Risk Management

Article 35

The risk management of financial innovation activities shall be involved into the uniform risk management system of the whole bank
by a commercial bank’s board of directors and the senior management.

The risk management committee under the board of directors shall implement unified management on the risks in financial innovation
activities and other traditional business, formulate proper procedures of risk management and measures of risk control, and clearly
define the detailed duties of each business line and related departments.

Article 36

Commercial banks shall formulate perfect risk management policies, procedures and risk limitations, and make sure that the different
kinds of financial innovation activities are in accordance with its management capacity and professional level.

Article 37

Commercial banks shall establish and improve a framework for risk management by the way of effective management information system,
fully identify, measure, monitor and control the risks brought from financial innovation activities.

Article 38

Commercial banks shall establish perfect internal control bylaws fitting for the nature and scale of the different kinds of financial
innovation business, and examine the establishment and implementation of the internal control institutions through independent internal
audit and external audit.

Article 39

Commercial banks shall make rigid compliance examination to the financial innovation activities to be carried out, accurately define
the different kinds of juridical relationships involved in thereof, clarify the laws and policies which might be concerned, study
and formulate corresponding settlement measures, and earnestly prevent compliance risks.

Article 40

Commercial banks shall verify and modify the critical models, assumed conditions and model parameters at regular intervals in the
light of the policy adjustments and market environment changes, and regarding the features of financial innovation activities, and
formulate risk forewarning and pre-arranged for risk disposal. The board of directors and the senior management shall be responsible
for making plans responded to business emergency and continuity plans.

Chapter VI Supervision and Administration

Article 41

The CBRC encourages commercial banks with following conditions to make financial innovations:

(1)

Its capital adequacy ratio is up to the standards;

(2)

It has good corporate governance structure;

(3)

It has rigorous internal control;

(4)

Its core index of risk supervision is in accordance with the prudence requirements of the regulatory authorities; and

(5)

There is no significant behavior to offend against the law or break the rule in the latest three years.

Article 42

As regards the financial innovation activities, the CBRC will simplify the procedures of examination and approval, change the way
of supervision, formulate the standards for prudent supervision and procedures for operating supervision for different kinds of new
business, intensify persistency supervision, pay more attention to the whole course risk control of risk management, internal audit,
pricing mechanism, information disclosure and other procedures concerning innovation activities, and warn the risks in time.

Article 43

The CBRC encourages commercial banks to make business communications with the CBRC in advance, and exchange opinions in light of
the focused risks and the risk control measures in order to improve the efficiency of examination and approval.

Article 44

The CBRC encourages commercial banks to establish more open and more cooperative relationship between the regulating department and
the regulated departments in the activities of financial innovation, timely report the risk incidents or significant changes in the
market environment to the regulatory authority with responsibility.

Article 45

The CBRC, commercial banks and the banking association shall have responsibility to jointly enhance the promulgation and education
of financial knowledge to the public, promote the public’s knowledge of financial innovations and recognition of the principle that
the buyer is to be responsible for one’s own action, enhance the public’s comprehension to the modern financial knowledge, and continuously
strengthen the public’s risk prevention consciousness and risk tolerance.

Article 46

If a commercial bank violates these Guidelines, the CBRC shall penalize it by related laws and regulations, and by taking other corresponding
supervisory measures.

Chapter VII Supplementary Provisions

Article 47

The CBRC shall be responsible for the interpretation of these Guidelines.

Article 48

These Guidelines shall enter into force as of December 11, 2006.

The China Banking Regulatory Commission
2006-12-06

ANNOUNCEMENT OF GENERAL ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE ON CANCELING THE REGISTRATION QUALIFICATIONS AS OVERSEAS WASTE MATERIALS SUPPLIERS OF 18 ENTERPRISES FROM AUSTRALIA, CANADA, FRANCE, JAPAN, USA

Announcement of General Administration of Quality Supervision, Inspection and Quarantine on Canceling the Registration Qualifications
as Overseas Waste Materials Suppliers of 18 Enterprises from Australia, Canada, France, Japan, USA

[2006] No.179

Recently, in the on-the-spot inspections of the follow-up supervision and administration implemented on the overseas imported waste
materials suppliers of Australia, Canada, France, Japan, USA etc., the General Administration of Quality Supervision, Inspection
and Quarantine found that the registration materials of the following 18 enterprises seriously fall short of the actual status, thus
they fail to meet the basic conditions for acquiring the registration qualifications. In order to protect the environment of China,
prevent the poisonous and deleterious waste from transferring from abroad to China, maintain the trading order of imported waste
materials, in accordance with the provisions of Article 53 of the Implementing Regulations for the Law of the People’s Republic
of China on Inspection of Import and Export Commodity and Announcement No.48, 2004 of the General Administration of Quality Supervision,
Inspection and Quarantine, an announcement is hereby made as follows:

As of the date of promulgation of the present Announcement, the registration qualifications as overseas imported waste materials suppliers
of the following enterprises shall be cancelled.

ҳ 1

	Name of the Enterprise	Country	Registration Number
1	VANEDA PTY. LTD.	Australia	A036040017
2	K.E.S. METALS	Australia	A036042072
3	BENISON INTERNATIONAL TRADE LTD.	Canada	A124040108
4	KANA ALUMINUM INC.	Canada	A124040109
5	ALPHA ALEX METAL CO., LTD	Canada	A124040111
6	JIAHE INTERNATIONAL LTD	Canada	A124040121
7	GOLDEN FIELD TRADING INC.	Canada	A124040139
8	REACH APEX ENTERPRISES (CANADA)INC.	Canada	A124042141
9	BOJUN INTERNATIONAL ENTERPRISES LTD	Canada	A124042147
10	HUA FA CANADA INC.	Canada	A124042149
11	A.HUO ENTERPRISES INC.	Canada	A124050039
12	BAOLUO INTERNATIONAL IMP & EXP CO., LTD	Canada	A124050147
13	EUROPEENNE DES METAUX	France	A250040279
14	NS CO-PROSPERITY LTD	Japan	A392040888
15	MEINING ENTERPRISE CO. LTD	USA	A840041803
16	WANG’S TRADING CO.	USA	A840041836
17	PRIME RECYCLING CENTERS, INC.	USA	A840041940
18	W&K TRADING INC.	USA	A840042994

II. Each local inspection and quarantine
institution shall hold the pass strictly, and refuse to accept the applications
for
inspection on the waste materials supplied by the enterprises listed above
whose registration qualifications have been cancelled.

The General Administration of Quality
Supervision, Inspection and Quarantine
December 8, 2006

ANNOUNCEMENT OF THE GENERAL ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE ON SUSPENDING THE REGISTRATION QUALIFICATIONS AS OVERSEAS WASTE MATERIALS SUPPLIERS OF 3 ENTERPRISES FROM JAPAN AND USA

Announcement of the General Administration of Quality Supervision, Inspection and Quarantine on Suspending the Registration Qualifications
as Overseas Waste Materials Suppliers of 3 Enterprises from Japan and USA

[2006] No.181

Recently, in the on-the-spot inspections of the follow-up supervision and administration implemented on the overseas imported waste
materials suppliers of Japan and USA, the General Administration of Quality Supervision, Inspection and Quarantine found that the
registration materials of 3 enterprises fall short of the actual status, and they need to improve their conditions for the registration
qualifications through rectifications. In order to protect the environment of China, prevent the poisonous and deleterious waste
from transferring from abroad to China, maintain the trading order of imported waste materials, in accordance with the provisions
of Article 53 of the Implementing Regulations for the Law of the People’s Republic of China on Inspection of Import and Export Commodity
and Announcement No.48, 2004 of the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic
of China, an announcement is hereby made as follows:

As of the date of promulgation of the present Announcement, the registration qualifications as overseas imported waste materials suppliers
of the following enterprises shall be cancelled.

Name of Enterprise Country Regis

	Name of Enterprise	Country	Registration Number
1	NITTO CORPORATION (OVERSEAS)	Japan	A392042373
2	NATIONWIDE MEGAZINE RECYCLING, INC.	USA	A840041961
3	YING WEI ENTERPRISES USA	USA	A840042971

General Administration of Quality
Supervision, Inspection and Quarantine

December 8, 2006

PRELIMINARY RESULTS OF WINNING OF BID OF THE FIRST NEGOTIATED BIDDING OF TEXTILES EXPORTED TO EU & THE USA OF 2007

Preliminary Results of Winning of Bid of the First Negotiated Bidding of Textiles Exported to EU & the USA of 2007

According to the relevant provisions of the Announcement of Ministry of Commerce on the First Negotiated Bidding of Textiles Exported
to EU & the USA of 2007, this Office hereby promulgates the Preliminary Results for Winning of Bid of the First Negotiated Bidding
of Textiles Exported to EU & the USA of 2007. If an enterprise has any question on the results of winning of bid, it may file
a written application with the Bidding Office within two days; overdue applications will not be accepted.

Tel of Committee for the Invitation for Bid for Export Commodity Quotas: 010-67739327, 67739213, 67739208

Fax: 010-67719297

Appendix: Preliminary Results of Winning of Bid of the First Negotiated Bidding of Textiles Exported to EU & the USA of 2007

Committee for the Invitation for Bid for Export Commodity Quotas

December 8, 2006

Committee for the Invitation for Bid for Export Commodity Quotas
2006-12-08

RULES FOR THE COMPILATION OF INFORMATION DISCLOSURES BY THE COMPANIES OFFERING SECURITIES TO THE PUBLIC (NO. 3) — SPECIAL PROVISIONS ON THE CONTENTS AND FORMATS OF PROSPECTUSES OF INSURANCE COMPANIES (AMENDED IN 2006)

Circular of the China Securities Regulatory Commission concerning the Promulgation of the Rules for the Compilation of Information
Disclosures by the Companies Offering Securities to the Public (No. 3) — Special Provisions on the Contents and Formats of Prospectuses
of Insurance Companies

Zheng Jian Fa Xing Zi [2006] No. 151

Each insurance company and recommendation institution:

The Rules for the Compilation of Information Disclosures by the Companies Offering Securities to the Public (No. 3) — Special Provisions
on the Contents and Formats of Prospectuses of Insurance Companies are hereby promulgated for the purpose of regulating the information
disclosure of the insurance companies offering securities to the public, and shall be implemented as of the promulgation date .

The China Securities Regulatory Commission

December 8, 2006

Rules for the Compilation of Information Disclosures by the Companies Offering Securities to the Public (No. 3) — Special Provisions
on the Contents and Formats of Prospectuses of Insurance Companies (Amended in 2006)

Article 1

In accordance with the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic of China, the Insurance
Law of the People’s Republic of China, as well as the relevant provisions formulated by the China Securities Regulatory Commission
(hereinafter referred to as the CSRC) and the China Insurance Regulatory Commission (hereinafter referred to as the CIRC), the present
Provisions are formulated to regulate the information disclosure of the insurance companies that offer securities to the public (hereinafter
referred to as “insurance companies”) and protect the legitimate rights and interests of investors

Article 2

When an insurance company formulates the prospectus for the initial public offering it shall follow the requirements as prescribed
in the present Provisions in addition to the general provisions on prospectuses and financial statements as prescribed by the CSRC.

Article 3

An insurance company shall at least disclose the risk factors as follows:

(1)

risks in the change of interest rates;

(2)

risks in the insufficiencies of price fixing and reserves that may be caused by the such premises as preconcerted interest rates,
preconcerted loss ratio, preconcerted additional rates, preconcerted return on investment adopted by the insurance company for determining
the premium rates of insurance products or various reserves;

(3)

operational risks, that is, the risks caused by imperfect or ineffective internal control or uncontrollable external conditions, for
instance: related risks in the loss of insurance agency institutions or marketing staff, risks in the abnormal surrender, risks in
the reputation loss of the insurance company resulted from that its staff or agents damage the interests of the insured, risks in
catastrophes, and risks in the reinsurance business and so on.;

(4)

risks in insurance frauds, that is, the risks resulted from that the policy holders, the insured, insurance agents, brokers or assessors
make false statements or hide important facts to the insurance company without following the principle of utmost good faith and violating
statutory duties;

(5)

risks of investment, that is, the risks resulted because the asset value of the investment portfolio of the insurance company reduces
or its investment portfolio fails to produce the expected profits;

(6)

risks in the non-matching of assets and debts, that are, the risks resulted from unfavorable influences to its solvency caused by
the non-matching of assets and debts of the insurance company ;

(7)

risks in the information system, that is , the losses to the insurance company or the unfavorable influences to its operational performances
owing to the failure of the information system to conduct normal business processing or data loss because the information system
can not operate normally or is not perfect;

(8)

policy risks, that is, the risks from the alteration of national policies, laws or regulations, for instance, the risks resulted from
the alteration of such policies as taxation or government supervision, etc.; and

(9)

other risks, namely, the risks faced by the insurance company besides those mentioned above.

Article 4

As for the disclosure of the basic conditions about the insurance industry of China, an insurance company shall, at least disclose
the following contents:

(1)

the overview about China’s insurance industry;

(2)

the characteristics and trends of developments of the insurance industry; and

(3)

the regulatory system and main laws and regulations of insurance industry.

Article 5

An insurance company shall at least disclose the following contents in accordance with its own conditions:

(1)

the market share of each primary insurance business conducted by the issuer;

(2)

primary advantages and disadvantages of the issuer in the market competition;

(3)

the development system, marketing personnel and network, and insurance agency conditions of the issuer and so on; and

(4)

the conditions on study and development of insurance products, and the main new products lately promoted, etc.

Article 6

An insurance company shall set up and disclose its internal control systems, which includes the control of businesses in sales, underwriting,
compensation granting, and reinsurance and so on; the control of budgets, expenditure management and financial statements and other
financial controls; the control of capital transfer, investment decisions, investment risk management and other capital control,
and the control of information technology and information safety management and other information technology control.

Article 7

An insurance company shall disclose its main insurance business categories and its development plans, and the principles and methods
for determining premium rates in accordance with the characteristics of its own business. For the individual insurance business,
the quantity of policyholders shall also be disclosed.

An insurance company shall disclose the composition of its premium incomes for the recent three years and the latest period in light
of different regions and main insurance business categories, and analyze the increase or decrease of premium incomes for different
regions and main insurance business categories, and the reasons for such changes.

An insurance company shall disclose the composition of compensations and commissions in light of main insurance business categories
and analyze the increase and decrease thereof and the reasons for such changes.

Article 8

By considering the characteristics of its own business, an insurance company shall disclose the types of reserves, principles and
methods for calculation of reserves, and shall, disclose the balance of various reserves for the recent three years and the latest
period in light of main insurance business categories, and analyze the changes thereof and the reasons for such changes. An insurance
company shall explain whether the reserves are sufficient by considering the characteristics of various reserves.

Article 9

In accordance with the relevant provisions of the CIRC, an insurance company shall, disclose the conditions about the solvency at
the end of each period for the recent three years and the latest period. The conditions about the solvency shall include but not
be limited to the actual amount of solvency, minimum amount of solvency and adequacy ratio of solvency.

In case the solvency amount and the monitoring indices of an insurance company for the recent three years and the latest period exceed
the normal scope, and for which any objection has been put forward by the insurance regulatory organ, the insurance company shall
disclose them and make corresponding explanations.

Article 10

An insurance company shall disclose related policies and its main business partners about the reinsurance business.

An insurance company shall disclose the amount of outward and inward payment of premiums, reinsurance reserves, and the reasons for
their changes for the recent three years and the latest period in light of main reinsurance companies, and disclose related conditions
about the major reinsurance matters still within the valid term And a separate disclosure shall be made in the case of any non-proportional
reinsurance contract including reinsurance of an excess of loss.

A reinsurance company shall disclose the reinsurance premium incomes and the ceded insurance premiums in light of main insurance business
categories.

A property insurance company shall disclose the policies for which it undertakes the major insurance liability at the end of the latest
period, and its reinsurance plans.

Article 11

An insurance company shall make disclosure of the main contents and accounting methods of financial reinsurance contracts for the
recent three years and the latest period, and their influences on the profits of the current period.

Article 12

By considering the provisions of the insurance regulatory organ, an insurance company shall disclose its investment policies, strategies,
portfolio composition and return on investment for the recent three years and the latest period, and their changes and trends shall
be analyzed.

In light of investment targets and investment purposes, an insurance company shall separately disclose its investment portfolio composition
for the recent three years and the latest period. The investments can be divided into bank deposits, government bonds, financial
bonds, corporate bonds, funds, stocks and other methods for using the capital if sorted according to the types of targets; and the
investments can be divided into financial assets, held-to-maturity investments, and financial assets available for sale, etc which
are measured at their fair value and of which the changes are recorded in the profits and losses of the current period if sorted
according to the types of purposes..

Article 13

For the initial public offering of securities, a life insurance company, health insurance company or pension insurance company shall
disclose the information about embedded value; and a financial or insurance group company that possesses any life insurance company,
health insurance company or pension insurance company shall disclose the information about embedded value for the related business.

An insurance company shall employ an external actuarial agency or actuaries to compile a report on embedded value in accordance with
the related provisions of the CIRC, and take the said report as the archival documents of the prospectus. The following statement
shall be made by the external actuarial agency or actuaries after the full text of the prospectus:

“This agency and our actuaries for signature have read the prospectus and its summery, and make sure that there is no conflict between
the prospectus and its summery and the report on embedded value issued by this agency. This agency and our actuaries for signature
have no objection to the contents of the report on embedded value quoted in the prospectus and its digest by the issuer, and guaranteed
that no false record, misleading statement or major omission may be resulted from the aforesaid contents in the prospectus, and shall
bear corresponding legal liabilities for the authenticity, accuracy and integrity of such contents.” The said statement shall be
affixed with the signatures of the actuaries for signature and the person in-charge of the actuarial agency and the seal of the actuarial
agency.

When disclosing the relevant information about the embedded value in the prospectus, an insurance company shall state that: “the embedded
value is the economic value based on a group of assumptions of future experiences and estimated in accordance with actuarial methods,
however, various assumptions as the basis of embedded value are uncertain, so the investors, when making investment decisions, shall
prudently use them. The information about embedded value shall include but not be limited to the following contents:

(1)

the embedded value at the end of the latest year and the results of the new businesses’ value of one year;

(2)

return ratio and risk discount ratio for calculation of embedded value and other main assumptions at the end of the latest year;

(3)

sensitive analysis results on the embedded value at the end of the latest year and the new businesses’ value of one year; and

(4)

the analysis of the change of embedded value at the end of the latest year.

Article 14

An insurance company shall disclose main accounting policies and accounting estimates as adopted within the reporting period by considering
the characteristics of insurance business, of which, the matters with direct relation to the insurance business shall at least include
the contents as follows:

(1)

detailed methods for confirming and calculating the premium incomes (reinsurance premium incomes are included) for main insurance
business categories;

(2)

accounting methods for outstanding loss reserves;

(3)

accounting methods for the undue insurance liabilities reserves;

(4)

accounting methods for the life insurance liabilities reserves;

(5)

accounting methods for the reserves for long-term health insurance liabilities; and

(6)

accounting methods for the whole reserves.

A reinsurance company shall pay more attention to the disclosure of the accounting methods for various reinsurance reserves.

Article 15

An insurance company shall disclose the information about its branches in accordance with the provisions.

If any branch is established abroad, an insurance company shall separately disclose the business operation situation of the overseas
branch.

Article 16

An insurance company shall disclose the composition of premiums receivable at the end of the latest year and the latest period in
light of the age of accounts. In case there are the arrears of any shareholder holding more than 5%(including5%) the shares of the
issuer in the premiums receivable, the explanations therefor shall be made.

Article 17

An insurance company shall disclose the amount of reinsurance debts receivable and payable at the end of the latest year and the
latest period in light of the classification of main reinsurance companies. In case there are the arrears of any shareholder holding
more than 5%(including5%) the shares of the issuer in the reinsurance debts receivable, the explanations therefor shall be made

Article 18

An insurance company shall separately disclose the long-term equity investment at the end of the latest year and the latest period
in light of the cost method and the equity method, and as for an important investment project, it shall disclose such information
as the starting date of investment, amount of initial investment, amount of final investment, proportion of its equity investment
to the equity of the invested party, and so on.

Article 19

An insurance company shall analyze and explain the alterations of commissions payable within the reporting period.

Article 20

An insurance company shall disclose the amount and interest rate of policy-pledged loans at the end of the latest year and the latest
period.

Article 21

An insurance company shall disclose the book balance of and the depreciation reserves for pending materials insolvent at the end
of the latest year and the latest period, and the recyclability thereof shall be analyzed.

Article 22

An insurance company shall disclose the calculating basis and amount of the reserves for capital bonds and insurance protection funds.

Article 23

An insurance company shall disclose such financial indices of the recent three years and the latest period as liquidity ratio, debt-to-asset
ratio, return on net assets, earnings per share, growth rate of retained premium, ratio of composite costs (for property insurance),
loss rate (for property insurance), and surrender rate (for life insurance).

An insurance company shall make explanations for the changes of the indices mentioned above for the recent three years and the latest
period, reasons for such changes and other related information.

Article 24

An insurance company shall, if it plans to use the raised capital for the establishment of a branch, disclose the amount of capital
required and the proposed location, etc. for the branch; and the specific investment direction may not be explained in case the raised
capital is used only to increase the principal; and the specific investment direction of the raised capital shall be disclosed in
detail in case the raised capital is used to upgrade the equipment, merger, acquisition or for any other purpose.

Article 25

An accounting firm that has professional actuaries, the experiences for audit of insurance companies, and the qualification to engage
in the securities and futures-related business shall be hired by an insurance company to audit its statutory financial statements
formulated pursuant to the rules and system of China for accounts and information disclosure in accordance with independent auditing
standers; and contents for audit shall also be added, and an international accounting firm that is specially accredited by the CSRC
and the Ministry of Finance shall be hired to audit its supplementary financial statements under the internationally universal rules
for accounts and information disclosure.

The main contents that need attention to be paid for supplementary audit include: the reserves for losses, and disposition of non-performing
assets significant off-balance-sheet items and their influences to the financial status and operational results; the asset quality,
profitability and operating risks of different clients, operating projects and operating areas; and the main differences between
statutory and supplementary financial statements.

The financial materials in the formal text of the prospectus shall be digested from statutory financial statements. Supplementary
financial statements shall be disclosed as the appendix of the prospectus so that the investors can refer to them for their judgment
of the financial status and investment risks of the insurance company.

Article 26

The present Provisions shall come into effect as of the promulgation date. The Rules for the Compilation of Information Disclosures
by the Companies Offering Securities to the Public (No. 3 and No. 4) – Special Provisions on the Contents and Formats of Prospectuses
of Insurance Companies (Zheng Jian Fa [2000] No. 76) and the Special Provisions on the Annotations to the Financial Statements of
Insurance Companies (Zheng Jian Fa [2000]No. 76) shall be abolished at the same time.

The China Securities Regulatory Commission
2006-12-08

ANNOUNCEMENT NO.113, 2006 OF MINISTRY OF COMMERCE AND GENERAL ADMINISTRATION OF CUSTOMS ON PROMULGATING CATALOG OF COMMODITIES SUBJECT TO AUTOMATIC IMPORT LICENSES ADMINISTRATION IN 2007 (CATALOG I, II AND III)

Announcement No.113, 2006 of Ministry of Commerce and General Administration of Customs on Promulgating Catalog of Commodities Subject
to Automatic Import Licenses Administration in 2007 (Catalog I, II and III)

[2006] No.113

In accordance with the Measures for the Administration of Automatic Import License of Goods, the Ministry of Commerce adjusted the
Catalog of Commodities Subject to Automatic Import Licenses Administration in 2007 (Catalog I, II and III). They are hereby announced
and shall enter into force as of January 1, 2007.

Appendix: Catalog of Commodities Subject to Automatic Import Licenses Administration in 2007 (Catalog I, II and III) (Omitted)

The Ministry of Commerce

The State Administration of Taxation

December 10, 2006

The Ministry of Commerce, the State Administration of taxation
2006-12-10

ANNOUNCEMENT OF THE FIRST OPEN BID-INVITING FOR EXPORT LIGHT AND DEAD-BURNED MAGNESIA QUOTA OF 2007

Announcement of the First Open Bid-inviting for Export Light and Dead-burned Magnesia Quota of 2007

The first open bid-inviting for export dead-burned magnesia quota of 2007 will start on December 12, 2006, and will conduct by two
parts. In accordance with related provisions in the Measures of the Bid-inviting for Export Commodity Quotas (hereinafter referred
to as the Measures) and the Implementation Rules of the Bid-inviting for Export Industrial Goods Quotas (Wai Jing Mao Mao Fa[2001]No.626,
hereinafter referred to as the Implementation Rules), related matters are hereby publicized as follows:

Part 1

Name and scope of bid-inviting commodities

The name and custom code is as follows:

naturai magnesium carbonate(magnesite): 25191000

fused magnesia(electromagnesium, including spray supplement material):25199010

dead-burned magnesia(burned magnesiaincluding spray supplement material):25199020

alkali- burned magnesia(light-burned magnesia):25199030

waste magnesia brick: 25309090.10

Bid-inviting amount

The open bid-inviting amount of light and dead-burned magnesia for this time is 738,000tones.

Bid-inviting time

Biding time: December 15 to 18, 2006

Terminal time of bid-inviting: 160, December 18, 2006

Open time of bids: 100, December 19, 2006

Biding mode

Biding shall be conducted employing the Chinese International Electronic Commerce Web. The enterprise can submit only one piece of
electronic tender document before the terminal time of the bids, and where two or more are submitted, the tender document of the
enterprise is considered as invalid.

The Chinese International Electronic Commerce Center (EDI) shall be in charge of the technical safeguard for the electronic biding
and be responsible for interpretation of the specific operation problems.

Telephone010-67870108(customer service center), 010-67800472678003346780036567800045

Fax010-67800343

Biding amount

(1)

The minimum biding amount shall be 100tones, and the maximum shall be classified according to the average annual export and supply
amount of goods from 2003 to 2005, and the specific classification measures are as follows:

Where the average annual export and supply amount of goods is 3,000 tones and more, the maximum biding amount is 55% of the average
amount aforesaid;

Where the average annual export and supply amount of goods is less than 3,000 tones, the maximum is 1,200tones.

(2)

Annual export and supply amount of goods=Actual amount of average annual export.9 + Actual sum of average annual export Single
price of national average export .1

(3)

Any tender document with biding amount above the maximum or below the minimum shall be treated as invalid.

Minimum biding price

The minimum biding price has been determined, and enterprises may directly accept the minimum price determined by the Biding Committee
in its tender document. Any tender document, of which the biding price is lower than the minimum, shall be abolished.

P rice and amount of winning bid

The biding prices of all the biding enterprises shall be arranged sequentially from high to low, and the biding amount will be accumulated
in light of the sequence. Where the accumulating biding amount is equal to the bid-inviting amount, enterprises reckoned in the total
accumulating biding amount (namely the total bid=inviting amount) shall be the bid-wining ones, and the biding amount be the bid-winning
amount. Where the total biding amount of the enterprises with the minimum bid-winning price exceeds the remained quota, these enterprises
shall obtain quotas in accordance with their biding amount proportions. Where the bid-winning amount is below the minimum bid-inviting
amount, it is handled as failing to win bids.

The biding price is the bid-winning price.

Inquiry of the result of winning bid

This bid shall be opened at 10:00of December 19, 2006, and the preliminary result of winning bid will be promulgated on www.ec.com.cn
on December 20. In case any enterprise with any objection, it may submit to the Bidding Office before 1500 of December 22. Any
bidding enterprise may inquire about its status of winning bid examined and officially publicized by the Biding Committee via www.ec.com.cn
as of December 25. The Bidding Office will not issue a written Notice for Winning Bid to enterprises.

Deposit for winning bid

The deposit for winning bid (bid-winning price id-wining amount 0%) for this bid is 10 percent of the bid-winning amount and
shall be remitted to the designated account before the February 28, 2007 by the bid-wining enterprise.

Unit name: China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters

Bank for opening the account: Beijing Wanda Square Branch of China CITIC Bank;

Account number: 7112410182600001325

The Biding Committee shall, in accordance with related provisions in the Measures and the Implementation Rules, deal with enterprises
that fail to remit the deposit for winning bid and waste quota.

10.

The Bidding Office of Export Light and Dead-burned Magnesia Quotas

Address: 17/F, Fanli Building, No.22 of Chaowai Street, Chaoyang District, Bejing;

Post code: 100020

Telephone : 010-65882501-172117301732

Fax : 010-65882509

Part 2

Name and scope of bid-inviting commodities

Other minerals with more than 70%(including 70%) magnesium oxide under custom code 25199099.10.

Bid-inviting amount

The open bid-inviting amount of other minerals with more than 70%(including 70%) magnesium oxide for this time is 58,200tones.

Bid-inviting time

Biding time: December 15 to 18, 2006

Terminal time of bid-inviting: 160, December 18, 2006

Open time of bids: 100, December 19, 2006

Biding mode

Telephone010-67870108(customer service center), 010-67800472678003346780036567800045

Fax010-67800343

Biding amount

(1)

The minimum biding amount shall be 500tones, and the maximum shall be classified according to the average annual export and supply
amount of goods from 2003 to 2005, and the specific classification measures are as follows:

Where the average annual export and supply amount of goods is 2,500 tones and more, the maximum biding amount is 21% of the average
amount aforesaid;

Where the average annual export and supply amount of goods is less than 2,500 tones, the maximum is 500tones.

(2)

Annual export and supply amount of goods=Actual amount of average annual export

(3)

Any tender document with biding amount above the maximum or below the minimum shall be treated as invalid.

Minimum biding price

The minimum biding price has been determined, and enterprises may directly accept the minimum price determined by the Biding Committee
in its tender document.

Any tender document, of which the biding price is lower than the minimum, shall be abolished.

P rice and amount of winning bid

The biding price is the bid-winning price.

Inquiry of the result of winning bid

Deposit for winning bid

Unit name: China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters

Bank for opening the account: Beijing Wanda Square Branch of China CITIC Bank;

Account number: 7112410182600001325

The Biding Committee shall, in accordance with related provisions in the Measures and the Implementation Rules, punish enterprises
that fail to remit the deposit for winning bid and waste quota.

10.

The Bidding Office of Export Light and Dead-burned Magnesia Quotas

Address: 17/F, Fanli Building, No.22 of Chaowai Street, Chaoyang District, Bejing;

Post code: 100020

Telephone : 010-65882501-172117301732

Fax : 010-65882509

The Committee of Bid-inviting for Export Commodity Quotas

December 11, 2006

The Committee of Bid-inviting for Export Commodity Quotas
2006-12-11

12 Page 1 of 2

The Internal Revenue Service

DECISION OF THE MINISTRY OF JUSTICE CONCERNING THE AMENDMENT OF THE MEASURES FOR ADMINISTERING THE REPRESENTATIVE OFFICES OF THE...

NOTIFICATION NO.35, 2006 OF THE TENDERING BOARD FOR FOREIGN ASSISTANCE PROJECTS OF THE MINISTRY OF COMMERCE OF THE PEOPLE’S...

ANNOUNCEMENT NO.74, 2006 OF THE GENERAL ADMINISTRATION OF CUSTOMS ON ADOPTING THE ANNOTATIONS ON THE HARMONIZED COMMODITY DESCRIPTION AND CODING SYSTEM (2007 EDITION) FOR NOTING IMPORT-EXPORT TARIFF COMMODITIES AND ITEMS THEREOF

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE RELATED MATTERS CONCERNING THE SETTLEMENT MANAGEMENT OF LAND VALUE-ADDED TAX ON REAL ESTATE ENTERPRISES

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING THE DETERMINATION OF THE BASIS FOR THE CALCULATION OF VEHICLE PURCHASE TAX

GUIDELINES FOR FINANCIAL INNOVATION OF COMMERCIAL BANKS

ANNOUNCEMENT OF GENERAL ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE ON CANCELING THE REGISTRATION QUALIFICATIONS AS OVERSEAS WASTE MATERIALS SUPPLIERS OF 18 ENTERPRISES FROM AUSTRALIA, CANADA, FRANCE, JAPAN, USA

ANNOUNCEMENT OF THE GENERAL ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE ON SUSPENDING THE REGISTRATION QUALIFICATIONS AS OVERSEAS WASTE MATERIALS SUPPLIERS OF 3 ENTERPRISES FROM JAPAN AND USA

PRELIMINARY RESULTS OF WINNING OF BID OF THE FIRST NEGOTIATED BIDDING OF TEXTILES EXPORTED TO EU & THE USA OF 2007

RULES FOR THE COMPILATION OF INFORMATION DISCLOSURES BY THE COMPANIES OFFERING SECURITIES TO THE PUBLIC (NO. 3) — SPECIAL PROVISIONS ON THE CONTENTS AND FORMATS OF PROSPECTUSES OF INSURANCE COMPANIES (AMENDED IN 2006)

ANNOUNCEMENT NO.113, 2006 OF MINISTRY OF COMMERCE AND GENERAL ADMINISTRATION OF CUSTOMS ON PROMULGATING CATALOG OF COMMODITIES SUBJECT TO AUTOMATIC IMPORT LICENSES ADMINISTRATION IN 2007 (CATALOG I, II AND III)

ANNOUNCEMENT OF THE FIRST OPEN BID-INVITING FOR EXPORT LIGHT AND DEAD-BURNED MAGNESIA QUOTA OF 2007

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