Notice of China Banking Regulatory Commission on Relevant Issues concerning the Scope of Derivative Product Transactions Made by Chinese-funded
Commercial Banks

Yin Jian Ban Tong [2005] No. 22
December 2, 2005

The Industrial and Commercial Bank, Bank of Agriculture, Bank of China, Bank of Construction, Bank of Communications, CITIC Industrial
Bank, Everbright Bank, Huaxia Bank, Shenzhen Development Bank, China Merchants Bank, Shanghai Pudong Development Bank, Industrial
Bank Co., Ltd., China Minsheng Banking Corp. Ltd., Beijing Bank, Shanghai Bank and Shenzhen Commercial Bank:

For the purpose of safeguarding a fair competition order in the banking sector and promoting the development of derivative product
transaction in Chinese-funded commercial banks in a steady way, the relevant issues are notified as follows in accordance with related
laws and regulations such as the Banking Supervision Law of the People’s Republic of China, and the Interim Measures for the Administration
of Derivative Product Dealing of Financial Institutions (Order [2004] No. 1 of China Banking Regulatory Commission):

1.

The requirements in the relevant replies on Chinese-funded banks’ engaging in derivative product transactions that any derivative
product transaction on stocks or commodities be forbidden should not be implemented any more.

2.

Before engaging in any transaction of derivative products concerning stocks or commodities, any of the above-mentioned banks shall
communicate with the relevant regulatory bodies as to the definition of relevant products, structures, operating procedures as well
as the risk management techniques and methods and shall hand in such materials as the feasibility analysis report and marketing plan.

3.

If engaging in any transaction of derivative products concerning stocks or commodities or any derivative product transaction within
an exchange, any of the above-mentioned banks shall comply with the state administration of foreign exchange as well as any other
relevant provisions.