TITLE I. FUNDAMENTAL PRINCIPLES – 1988 Constitution

TITLE I. FUNDAMENTAL PRINCIPLES

Article 1. The Federative Republic of Brazil, formed by the indissoluble union of the states and municipalities and of the Federal District, is a legal democratic state and is founded on:

1. sovereignty;
2. citizenship;
3. the dignity of the human person;
4. the social values of labour and of the free enterprise;
5. political pluralism.

Sole paragraph – All power emanates from the people, who exercise it by means of elected representatives or directly, as provided by this Constitution.

Article 2. The Legislative, the Executive and the Judicial, independent and harmonious among themselves, are the powers of the Union.

Article 3. The fundamental objectives of the Federative Republic of Brazil are:

1. to build a free, just and solidary society;
2. to guarantee national development;
3. to eradicate poverty and substandard living conditions and to reduce social and regional inequalities;
4. to promote the well-being of all, without prejudice as to origin, race, sex, colour, age and any other forms of discrimination.

Article 4. The international relations of the Federative Republic of Brazil are governed by the following principles:

1. national independence;
2. prevalence of human rights;
3. self-determination of the peoples;
4. non-intervention;
5. equality among the states;
6. defense of peace;
7. peaceful settlement of conflicts;
8. repudiation of terrorism and racism;
9. cooperation among peoples for the progress of mankind;
10. granting of political asylum.

Sole paragraph – The Federative Republic of Brazil shall seek the economic, political, social and cultural integration of the peoples of Latin America, viewing the formation of a Latin-American community of nations.

1988 Constitution, with 1996 reforms – PREAMBLE

PREAMBLE

We the representatives of the Brazilian People, convened in the National Constituent Assembly to institute a democratic state for the purpose of ensuring the exercise of social and individual rights, liberty, security, well-being, development, equality and justice as supreme values of a fraternal, pluralist and unprejudiced society, founded on social harmony and committed, in the internal and international orders, to the peaceful settlement of disputes, promulgate, under the protection of God, this CONSTITUTION OF THE FEDERATIVE REPUBLIC OF BRAZIL.

NOTICE OF THE STATE ADMINISTRATION OF TAXATION ON DEALING WITH TAX ISSUES IN RESPECT OF BAD DEBT LOSSES INCURRED BY FOREIGN-FUNDED ENTERPRISES ENGAGING IN TELECOMMUNICATION SERVICES

State Administration of Taxation

Notice of the State Administration of Taxation on Dealing with Tax Issues in Respect of Bad Debt Losses Incurred by Foreign-funded
Enterprises Engaging in Telecommunication Services

GuoShuiHan [2004] No.90

January 17, 2004

The administrations of state taxation of the provinces, autonomous regions, municipalities directly under the Central Government,
and cities directly under State Planning, and the Administration of Local Taxation of Shenzhen Municipality:

According to the information we receive, as a result of the fierce competition of the telecommunication industry and the lack of effective
measures for the control and recovery of defaulted fees, the foreign-funded enterprises engaging in telecommunication services have
incurred relatively large amounts of fees defaulted by the customers, and the defaulted sums are increasing every year. We hereby
notify as follows the relevant issues concerning dealing with the income tax in respect of the abovementioned fees defaulted by customers,
which can not be recovered:

As of January 1, 2004, where a foreign-funded enterprise engaging in telecommunication industry is unable to recover the fees defaulted
by customers, whether previously or newly incurred, after one year as of the date of default, such defaulted sums may be dealt with
as the loss of bad debt, but payment for such loss shall be specified in the report form.

Where the localities draw the provision for bad debt for telecommunication enterprises in accordance with Paragraph 1 of Article 9
of the Notice of the State Administration of Taxation on Several Operational Issues concerning the Implementation of the Law on
Income Tax of Foreign-funded Enterprises and Foreign Enterprises (GuoShuiFa [1991] No.165), such practice shall be stopped as of
January 1, 2004. The balance of the provision for bad debts drawn in the previous year shall be first used to set off the loss of
bad debts incurred in 2003. If there is any balance left after the set-off, such balance shall be included into the taxable income
of the current year.

State Administration of Taxation
2004-01-17

INTERIM MEASURES FOR THE MANAGEMENT OF THE DEALINGS OF DERIVATIVE PRODUCTS OF FINANCIAL INSTITUTIONS

China Banking Regulatory Commission

Order of the China Banking Regulatory Commission

No. 1

Interim Measures for the Management of the Dealings of Derivative Products of Financial Institutions have been adopted at the chairman
meeting of China Banking Regulatory Commission and are hereby promulgated. The present Measures shall come into effect as of March
1, 2004.

Liu Mingkang, Chairman of the China Banking Regulatory Commission

February 4, 2004

Interim Measures for the Management of the Dealings of Derivative Products of Financial Institutions

Chapter I General Provisions

Article 1

With a view to regulating the dealings of derivative products of banking institutions, effectively controlling the risk of banking
institutions in the transaction of derivative products, the present Measures are formulated in accordance with Banking Supervision
Law of People’s Republic of China and Commercial Bank Law of People’s Republic of China and other relevant laws and regulations.

Article 2

The term of financial institutions as mentioned in the present Measures refers to the banks, trust and investment companies, finance
companies, financial leasing companies, legal person of auto financing companies and branches of foreign banks established within
the territory of People’s Republic of China (hereinafter referred to as branches of foreign banks).

Article 3

The term of derivative products as mentioned in the present Measures refers to a certain type of financing contract the value of which
subjects to one or more than one basic assets or index. Basic types of these contracts are futures, transaction at usance, swap transaction
and futures rights. Derivative products also including structural financial tools that have one or more characteristic of futures,
transaction at usance, swap transaction and futures rights.

Article 4

The dealings of derivation products of financial institutions referred to in the present Measures can be divided into two categories
as followed:

(1)

The derivative product transactions for the purpose of making profit or avoiding risk of their own capital and debt. The financial
institutions are regarded as the final customer of derivative product.

(2)

Financial institutions provide the derivative product transactions to clients (including financial institutions). Financial institutions
are regarded as the broker of the derivative product transactions and those brokers who provide quoting service and negotiable service
to other brokers and clients are regarded as the market manipulators of derivative products.

Article 5

China Banking Regulating Commission (hereinafter referred as to CBRC) shall be responsible for supervision over the derivative product
transactions of financial institutions. Financial institutions shall pass the examination and approval of CBRC and accept the supervising
and administration of CBRC in operating the derivative product transactions.

Any non-financial entity shall not provide the dealing services of derivative product to the clients.

Article 6

Financial institutions shall observe the provisions on foreign exchange and other relevant provisions in operating the derivative
product transactions related with the foreign exchange, stocks and commodities and derivative product transactions on exchange.

Chapter II Administration of Market Access

Article 7

Financial institutions that apply for the operation of the derivative product transactions shall meet the following requirements

(1)

Having a perfect risk control system and internal controlling system of the derivative product transactions;

(2)

Having a operating system of auto-connection of the derivative product transactions and real-time risk control system;

(3)

Operating staff of the derivative product transactions shall has an experience of directly operating the derivative product transactions
and risk control for more than 5 years, and shall not have any defective record;

(4)

Having at least 2 operating staff that has over 2 years experience of the derivative product transactions and related derivative product
transactions and over half a year experience of special training of operating skill of the derivative product transactions, 1 executive
of risk control, 1 staff for risk model research or analyses. The mentioned staff shall be sole duty person and shall not hold a
concurrent post or have any defective record;

(5)

Having appropriate trading floor and equipment;

(6)

If the branches of foreign banks plan to run the derivative product transactions, the registered country shall have a legal system
of supervising and regulating the derivative product transactions and the competent authority of the country shall have the capability
of supervising and regulating;

(7)

Other requirements of CBRC.

The branches of foreign banks plans to run the derivative product transactions that can not meet the requirements of Item 1 to Item
5 shall conforms with Item 6, Item 7 of the preceding Paragraph and following requirements:

(1)

Having formal authorization concerning type and quota of the derivative product transactions and other matters from its headquarter,

(2)

Except definite provisions of its headquarter, all the derivative product transactions of the branches shall be operated through the
real-time system of the authorized headquarter, and the inventory adjusting, risk exposure operation and risk control shall be operated
by the headquarter.

Article 8

The Policy banks, Chinese-funded commercial banks (except the city commercial banks, rural commercial banks and rural cooperative
banks), trust and investment banks, finance companies, finance leasing companies, auto-financing companies shall, if they operate
transactions of derivative products, apply for certificate from CBRC by their legal representatives and be examined and approved
by CBRC.

City commercial banks, rural commercial banks and rural cooperative banks shall, if they operate transactions of derivative products,
submit the application materials to the local Banking Regulatory Bureau by their legal representatives and shall be examined and
approved by CBRC after the approval of local departments.

Foreign-funded financial institutions shall, if they operate the transactions of derivative products, submit application materials
signed by the authorized signer to the local Banking Regulatory Bureau and shall be examined and approved by CBRC after the approval
of local departments. Foreign-funded bank institutions that plan to operate the derivative product transactions in more than two
branches in the territory of China may submit the application materials to the local Banking Regulatory Bureau by their headquarters
or the main reporting bank of the foreign bank and shall be examined and approved by CBRC after the approval of local departments.

Article 9

Where financial institutions apply for the operation of the derivative product transactions, they shall submit the following documents
and materials in triplicate to CBRC or its agencies,

(1)

Application report, feasibility report, operation program or the derivative product transactions acquisition plan;

(2)

Internal executive regulation of the derivative product transactions;

(3)

Accounting system of the derivative product transactions;

(4)

List and resume of the governor and main derivative product transactions staff;

(5)

Authorized administrative system of risk exposure qualification or limitation;

(6)

Security testing report of trading floor, equipment and system;

(7)

Other documents and materials required by CBRC.

Branches of foreign banks operating the derivative product transactions that do not satisfy criteria listed in Item 1 to Item 5 of
Article 7 shall submit following documents to the local Banking Regulatory Bureau at the time of application,

(1)

Documents of formal written authorization from the headquarter to the branches of operating the derivative product transactions,

(2)

Promising letter from the headquarter of insuring the real-time derivative product transactions of all the derivative product transactions
of its branches through the system of the headquarters and taking charge of inventory adjusting, risk exposure operation and risk
control.

Article 10

Internal executive regulations of the financial institutions that operate the derivative product transactions shall essentially involve
following contents,

(1)

Rudder, operational procedure that shall reflect the principle of separation of pre-phase, middle-phase and after-phase, emergency
solution of the derivative product transactions;

(2)

Risk model index and qualification operation index;

(3)

Type of derivative product transactions and correspondent risk control system;

(4)

Risk report and internal audit system;

(5)

Executive and evaluation system of research and development of the derivative product transactions;

(6)

Rules of brokers;

(7)

Job responsibility system of derivative product transactions governors and questioning mechanism and prompting and restricting mechanism
of the governor at all level and traders;

(8)

Training program for the persons-in-charge and workers;

(9)

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON INTENSIFYING THE ADMINISTRATION OF COLLECTION OF INDIVIDUAL INCOME TAX OF FOREIGN EMPLOYEES

the State Administration of Taxation

Circular of the State Administration of Taxation on Intensifying the Administration of Collection of Individual Income Tax of Foreign
Employees

Guo Shui Fa No. 27 [2004]

March 5, 2004

aus of state taxation and those of local taxation of all provinces, autonomous regions, municipalities directly under the Central
Government and cities directly under state planning, and all the entities of the Administration,

With the economic globalization and the continuous advance of the opening to the outside world, more and more foreign employees work
in our country or engage in business activities. Due to the great mobility of foreign employees, the individual income tax policies
involved become more complicated, which has brought about some difficulties for foreign employees to make accurate judgment on their
tax paying obligations and for taxation authorities to supervise tax resources. And there frequently occurs the under-declaration
and underpayment of individual income tax. With a view to intensifying the administration on individual income tax of foreign employees
and on tax payment services, and further improving the quality and efficiency of the administration of tax collection, the relevant
issues are hereby notified as follows:

Enhanrstanding and perfecting administration mechanismThe individual income tax of foreign employees is strongly policy-related, which
relates to not only the issues on the determination and division of the international taxation jurisdiction, but also the specific
policies and procedures for computing the taxable income and the tax payable and is the important content of international taxation
administration. Therefore, it has to do with not only the guarantee of the state revenue, but also the maintenance of tax sovereignty
of the state to intensify the administration of the collection of individual income tax of foreign employees and to make them to
properly perform their obligations of tax payment. All the localities shall sharpen the awareness of the importance of the administration
work for collecting individual income tax of foreign employees, set up and perfect the system of post and responsibility for the
international taxation administration, enrich professionals, and improve and regulate the procedures for administration, so as to
provide safeguards for the administration of individual income tax of foreign employees.

II.

Standardizing the law enforcement to ensure the fulfillment of the policiesThe policies applicable to the individual income tax of
foreign employees include the tax laws and regulations of China, tax agreements signed between the Chinese government and the foreign
governments. All the localities shall strengthen the self-capability training, improve the vocational skills of tax staff members
and accurately grasp the relevant policies. The law enforcement acts shall be further standardized to make strict the tax laws and
disciplines and rectify the procedures for the administration of tax collection so as to ensure the fulfillment of the policies concerning
the individual income tax of foreign employees and provide an open, fair and just taxation environments for foreign employees.

III.

Improving services to facilitate foreign employees to pay taxes according to law It is the function and duty of tax authorities to
intensify the administration of collection of individual income tax of foreign employees and to provide high-quality tax payment
services. All the localities shall take effective measures to earnestly solve difficulties and problems encountered by foreign employees
in their declaration of tax payment. Tax policies shall be propagated through internet, newspapers and periodicals, televisions,
broadcast and other media. Tutorships shall be made especially to foreign employees and their withholding agents, and smooth consultation
channels shall be provided for them, so as to help them understand the relevant tax laws and regulations of China, be familiar with
the procedures for the administration of tax collection and improve their observance of tax laws. The inter-department cooperation
shall be strengthened, and smooth information communication channels shall be established by strengthening the cooperation between
the departments of entry and exit administration, industry and commerce, customs, foreign trade and economy, education, culture,
physical education, science and technology and etc., as so to timely grasp the information on employment and flow of foreign employees
and to lay a good foundation for supervision of tax resources.

IV.

Intensifying the administration of tax collection and doing a good job for recovering the overdue taxesAll the localities shall carry
out a recovery of overdue taxes before the end of 2004, which is mainly designed to encourage taxpayers to make self-examination
and corrections. And the specific requirements are as follows:

Where a foreign employee or a withholding agent declares the unpaid tax of the previous years on his/its own initiative before the
end of June 2004, he/it shall, in addition to making up the unpaid taxes according to law, pay a surcharge for overdue payment at
0.5 percent of the overdue tax for each day in arrears; but he/it may not be punished;

Where a foreign employee still fails to make up the taxes on his/her own initiative within the above-mentioned time limit, if he/she
has disguised the relevant facts, or falsely report or failed to report the taxable income for a long time, he/she shall be ordered
to pay the overdue taxes and a surcharge for overdue payment according to the provisions of the Law of the People’s Republic of China
on the Administration of Tax Collection, and shall be imposed a fine as well.

This Circular shall be referred to in the administration of collection of individual income tax of compatriots from Hong Kong, Macao,
Taiwan and oversea Chinese.

the State Administration of Taxation
2004-03-05

THE OFFICIAL REPLY OF THE MINISTRY OF COMMERCE ON RELEVANT ISSUES CONCERNING THE OVERSEAS (COUNTRY/REGION) ENTERPRISE’S ENTRUSTED OPERATION AND MANAGEMENT OF THE DOMESTIC-FUNDED ENTERPRISE

Ministry of Commerce

The Official Reply of the Ministry of Commerce on Relevant Issues concerning the Overseas (Country/Region) Enterprise’s Entrusted
Operation and Management of the Domestic-funded Enterprise

Shang Zi Han [2004] No.19

Beijing Municipal Bureau of Commerce:

We have acknowledged the receipt of your letter Asking for Instruction on the Issues concerning the Examination and Approval of the
Overseas (Country/Region) Enterprise’s Entrusted Operation and Management of the Domestic-funded Enterprise, a document of your Bureau
coded Jing Shang Zi Zi [2003] No.184. After study with the State Administration for Industry and Commerce, we hereby give an official
reply as follows:

In principle, the provincial commerce authorities in charge are allowed to handle the examination and approval of the overseas (country/region)
enterprise’s entrusted operation and management of the domestic-funded enterprise. Your Bureau is required to handle the examination
and approval of the overseas (country/region) enterprise’s entrusted operation and management of the domestic-funded enterprise in
accordance with the Provisions on Guiding Foreign Investment Direction and with reference to Circular of the State Administration
for Industry and Commerce and the Ministry of Foreign Trade and Economic Cooperation on the Issues concerning the Examination and
Approval and Registration of the Entrusted Overseas (Country/Region) Enterprise for Operation and Management in the Joint Venture
(Gong Shang Qi Zi [1988] No.98). Wherein, the overseas (country/region) enterprise shall not be entrusted for the operation and management
of the domestic-funded enterprise whose engaged industry is subject to the banned category in the Catalogue for the Guidance of Foreign
Investment Industries; where the engaged industry of the domestic-funded enterprise is subject to the permitted category in the Catalogue
for the Guidance of Foreign Investment Industries, and the establishment of the foreign-funded enterprise, in accordance with the
relevant provisions, is subject to the examination and approval of the Ministry of Commerce, the entrustment of the overseas (country/region)
enterprise for the operation and management of the domestic-funded enterprise shall be subject to the examination and approval of
the Ministry of Commerce after the examination of the first instance conducted by the provincial commerce authorities in charge.

This Official Reply is hereby given.

Ministry of Commerce of the People’s Republic of China

March 22, 2004

Ministry of Commerce
2004-03-22

ANNOUNCEMENT NO.4, 2004 OF OPEN MARKET BUSINESS

Announcement No.4, 2004 of Open Market Business

[2004] No.4

Circular concerning Increasing the Repurchase Operations of Open Market Business

Each primary trader of open market business:

The People’s Bank of China will implement the operation of issuing central bank bills every Tuesday and the operation of repurchases
every Thursday as from this week. The operation of issuing central bank bills shall be implemented toward each primary dealer, and
the operation of repurchases shall be implemented toward the deposit institutions among the primary dealers (including commercial
banks and rural credit cooperation associations). The bidding time of the operation of repurchases is at 9:00-10:00am every Thursday.

The Operating Office of the Open Market Business of the People’s Bank of China

May 12, 2004

The People’s Bank of China
2004-05-12

CIRCULAR OF THE MINISTRY OF COMMERCE ON PUBLICIZING THE LIST OF THE ORGANS FOR ARCHIVAL-FILLING AND REGISTRATION ENTRUSTED BY THE MINISTRY OF COMMERCE IN THE MEASURES FOR ARCHIVAL-FILLING AND REGISTRATION OF FOREIGN TRADE OPERATOR

Department of Foreign Trade of the Ministry of Commerce

Circular of the Ministry of Commerce on Publicizing the List of the Organs for Archival-filling and Registration Entrusted by the
Ministry of Commerce in the Measures for Archival-filling and Registration of Foreign Trade Operator

Department of Foreign Trade of the Ministry of Commerce

June 30, 2004

In accordance with the Measures for Archival-filling and Registration of Foreign Trade Operator promulgated by the Ministry of Commerce
by Decree 14 of 2004, the List of the Organs for Archival-filling and Registration Entrusted by the Ministry of Commerce is hereby
publicized as follows: htm/e03502.htm1

1	Beijing Municipality Bureau of Commerce
2	Tianjin Commission of Commerce
3	Hebei Department of Commerce
4	The Commerce Bureau of Shanxi Province
5	Depart of Commerce of Inner Mongolia Autonomous Region
6	Liaoning Provincial Bureau of Foreign Trade and Economic Cooperation
7	Dalian Foreign Trade and Economic Cooperation Bureau
8	Department of Commerce of Jilin Province
9	Department of Commerce Heilongjiang Province
10	Shanghai Foreign Economy Relation & Trade Commission
11	Department of Foreign Trade and Economic Cooperation, Jiangsu Provincial Government
12	Zhejiang Foreign Trade and Economic Cooperation Bureau
13	Ningbo Foreign Trade and Economic Cooperation Bureau
14	The Bureau of Commerce of Anhui Province
15	Fujian Provincial Department of Foreign Trade & Economic Cooperation
16	Xiamen Municipal Trade Development Bureau
17	Department of Foreign Trade and Economic Cooperation of Jiangxi Province
18	Department of Foreign Trade & Economic Cooperation of Shandong Province
19	Qingdao Municipal Bureau of Foreign Trade and Economic Cooperation
20	Department of Commerce of Henan Province
21	Department of Commerce, Hubei Province
22	Hunan Provincial Department of Commerce
23	Department of Foreign Trade and Economic Cooperation of Guangdong Province
24	Business of Trade and Industry of Shenzhen Municipality
25	Department of Commerce of Guangxi Zhuang Autonomous Region

26	Department of Commerce of Hainan Province
27	Chongqing Foreign Trade & Economic Relations Commission
28	Department of Commerce of Sichuan Province
29	Department of Commerce of Guizhou Province
30	Department of Commerce of Yunnan Province
31	Department of Commerce of Tibet Autonomous Region
32	Department of Commerce of Shaaxi Province
33	Department of Commerce of Gansu Province
34	Department of Commerce of Qinghai Province
35	Department of Commerce of Ningxia Hui Autonomous Region
36	Xinjiang Foreign Trade & Economy
37	Bureau of Commerce of Xinjiang Production and Construction Corps
38	Wuhan Municipal Bureau of Foreign Trade and Economic Cooperation
39	Shenyang Municipal Bureau of Foreign Trade and Economic Cooperation
40	Guangzhou Municipal Bureau of Foreign Trade and Economic Cooperation
41	Harbin Municipal Bureau of Foreign Trade and Economic Cooperation
42	Xian Municipal Bureau of Foreign Trade and Economic Cooperation
43	Chengdu Municipal Bureau of Foreign Trade and Economic Cooperation
44	Changchun Municipal Bureau of Foreign Trade and Economic Cooperation
45	Nanjing Municipal Bureau of Foreign Trade and Economic Cooperation
46	Zhuhai Municipal Bureau of Foreign Trade and Economic Cooperation
47	Shantou Municipal Bureau of Foreign Trade and Economic Cooperation
48	Economic & Trade Development Bureau of Suzhou Industry Park

INTERIM MEASURES FOR THE CONTROL OF OVERSEAS USE OF INSURANCE-RELATED FOREIGN EXCHANGE FUNDS

China Insurance Regulatory Commission

Order of China Insurance Regulatory Commission

No.9

The Interim Measures for the Control of Overseas Use of Insurance-related Foreign Exchange Funds as formulated jointly by China Insurance
Regulatory Commission and the People’s Bank of China are hereby promulgated and shall be implemented as of the date of promulgation.

Wu Dingfu, Chairman of China Insurance Regulatory Commission

Zhou Xiaochuan, President of the People’s Bank of China

August 9th, 2004

Interim Measures for the Control of Overseas Use of Insurance-related Foreign Exchange Funds

Chapter I General Provisions

Article 1

With a view to strengthening the control of overseas use of insurance-related funds, preventing risks and safeguarding the interests
of the insured, these Measures are formulated in conformity with the Insurance Law of the People’s Republic of China, Regulations
of the People’s Republic of China on Foreign Exchange Control and other pertinent laws and regulations.

Article 2

An insurance company mentioned in the present Measures refers to a Chinese capital insurance company, foreign capital insurance company,
Chinese-foreign joint venture insurance company or a branch of any foreign insurance company, set up with the approval of China Insurance
Regulatory Commission (hereinafter referred to as CIRC) and registered according to the law in the People’s Republic of China.

The insurance-related foreign exchange fund as mentioned in the present Measures refers to the sum of capital, public reserve fund,
undistributed profits, various reserves and guarantee deposits received in foreign currencies of an insurance company.

Article 3

In the overseas use of its foreign exchange fund, the insurance company shall follow the principles of security, liquidity and profitability
and be prudent in making investment and shall operate independently at its own risk.

Article 4

In the overseas use of its foreign exchange fund, the insurance company shall accord with the present Measures and other laws and
regulations concerning insurance and foreign exchange control, as well as the pertinent foreign laws and regulations.

Article 5

CIRC and the State Administration of Foreign Exchange (hereinafter referred to as SAFE) shall carry out supervision over and control
of the overseas use of insurance-related foreign exchange funds.

Chapter II Qualification Requirements

Article 6

An insurance company engaging in overseas use of its foreign exchange fund shall fulfill the following requirements:

(1)

possessing a license for engaging in foreign exchange;

(2)

its total assets at the end of the previous year being not less than RMB5 billion yuan;

(3)

its foreign exchange fund at the end of the previous year being not less than US$15 million or its equivalent in other freely convertible
currencies;

(4)

its solvency margin conforming to the pertinent provisions of CIRC;

(5)

possessing a professional fund use department or a pertinent insurance asset management company;

(6)

its internal management system and risk control system conforming to the provisions of the Guidelines for Risk Control in the Use
of Insurance Funds;

(7)

the number of its professional and managerial personnel with at least two years of experience in overseas investment conforming to
the pertinent provisions; and

(8)

other requirements as may be provided by CIRC and SAFE.

Article 7

In terms of the overseas use of its foreign exchange fund, the insurance company shall, within the amount of its foreign exchange
balance at the previous yearend, apply to SAFE for foreign exchange remittance and payment for investment outside China by submitting
the following documents and materials in triplicate:

(1)

a written application containing at least the background of the applicant, the amount of foreign exchange applied for to be paid for
investment and the investment plan;

(2)

its financial statements and balance sheet in foreign currencies at the previous yearend as audited by an accounting firm;

(3)

reports on its solvency positions at the end of last year and at the end of last quarter as audited by an accounting firm and notes
to such reports;

(4)

a brief of its internal professional fund use department or of pertinent insurance asset management company;

(5)

its internal management system and risk control system;

(6)

resumes of its professionals engaging in overseas investment;

(7)

materials concerning its domestic custodian and the draft custody agreement;

(8)

materials concerning its external trustee and the draft asset management entrustment agreement, if it has an external trustee; and

(9)

other materials as prescribed by CIRC and SAFE.The SAFE shall make a decision as whether or not to approve the application within
20 days as of the receipt of all necessary application documents. In the case of approval, the amount of foreign exchange payment
for investment as approved shall be notified in writing to the applicant; in the case of disapproval, such disapproval shall be notified
in writing to the applicant with reasons stated. A copy of such decision for either approval or disapproval shall also be sent to
CIRC.

Article 8

When its foreign exchange fund increases due to its capital increase or shares expansion or overseas listing, the insurance company
may apply to the SAFE for an increase of the specified amount of foreign exchange payment for investment for the current year by
submitting to the SAFE the pertinent documents and materials.The SAFE shall make a decision in conformity with Article 7 of the
present Measures.

Chapter III Investment Scope and Proportion

Article 9

The overseas use of insurance-related foreign exchange funds shall be limited to the following investment types and instruments:

(1)

bank deposits;

(2)

bonds of a foreign government, international financial organization or foreign company;

(3)

bonds issued outside China by the Chinese government or a Chinese enterprise;

(4)

money market derivatives, such as bank’s bills and large negotiable certificates of deposit; and

(5)

other investment types and instruments within the scope specified by the State Council.

The bank as referred to in item (1) of the preceding paragraph means either an external branch of a Chinese capital commercial
bank or a foreign bank with at least grade A or its equivalent of long-term credit as assessed by an internationally accepted rating
agency for the past three years.

The bond as referred to in item (2) of the preceding paragraph means that of at least grade A or its equivalent as assessed by
an internationally accepted rating agency.

The money market derivatives as referred to in item (4) of the preceding paragraph mean money market fixed income derivatives
of at least grade AAA or its equivalent as assessed by an internationally accepted rating agency.

Article 10

Any overseas use of insurance-related foreign exchange fund shall accord with the proportions as follows:

(1)

the total amount of the insurance company that may be used in investment may not be more than 80% of its foreign exchange balance
at the end of last year or, in the case of any circumstances under Article 8 herein, it may not be more than 80% of the sum of its
foreign exchange balance at the end of last year and the increased fund;

(2)

the actual total amount of investment of the insurance company may not be more than the amount of foreign exchange payment for investment
as approved by the SAFE;

(3)

the insurance company’s deposit in one bank may not be more than 30% of the amount of foreign exchange payment for investment as approved
by the SAFE, however, the balance in the account for settlement of overseas use of foreign exchange fund shall not be subject to
this limit;

(4)

the balance of all bonds of grade A of credit that the insurance company invested in, apart from those issued overseas by the Chinese
government or a Chinese enterprise, as calculated at their cost prices, may not be more than 30% of the amount of foreign exchange
payment for investment as approved by the SAFE;

(5)

the balance of all bonds below grade AA of credit that the insurance company invested in, apart from those issued overseas by the
Chinese government or a Chinese enterprise, as calculated at their cost prices, may not be more than 70% of the amount of foreign
exchange payment for investment as approved by the SAFE;

(6)

the balance of bonds issued by one company or enterprise, which the insurance company invested in, as calculated at their cost prices,
may not be more than 10% of the amount of foreign exchange payment for investment as approved by the SAFE; and

(7)

the balance of bonds issued overseas by the Chinese government or Chinese enterprises, which the insurance company invested in, as
calculated at their cost prices, may not be more than the amount of foreign exchange payment for investment as approved by the SAFE.

Chapter IV Investment Management

Article 11

In terms of overseas use of its insurance-related foreign exchange fund, the head office of the insurance company shall carry out
a unified strategic allocation of assets, and the internal professional fund use department or the pertinent insurance asset management
company shall be in charge of the operation and management.

No branch of an insurance company may undertake any overseas use of foreign exchange fund.

Article 12

Any overseas use of insurance-related foreign exchange fund must be made in conformity with the Guideline for Risk Control in the
Use of Insurance Funds and under a well-established risk control system.

The risk control system shall at least contain the investment decision-making procedure, investment authorization system, research
and reporting system, and risk assessment and performance appraisal index systems.

Article 13

In the overseas use of its foreign exchange fund, an insurance company may entrust the investment management to an external professional
investment institution satisfying the requirements prescribed in Article 14 herein.

Article 14

The external professional investment institution to which an insurance company entrust its investment management must fulfill the
following requirements:

(1)

being allowed to engage in asset management business according to the law of the country or district concerned;

(2)

its risk control index conforming to the pertinent provisions of the regulatory authority of the country or district concerned;

(3)

both its paid-in capital and net assets being not less than US$60 million respectively or its equivalent in other freely convertible
currencies, and the assets under its management being not less than US$50 billion or its equivalent in other freely convertible currencies;

(4)

possessing a sound corporate governance structure and well-established internal management system and risk control mechanism, and
having no record of any major illegal or irregular act in the country or district concerned in the past three years;

(5)

having at least ten years of experience in international asset management business, and having professional investment personnel of
a corresponding number;

(6)

committing in writing to a promise that, if necessary, it shall, at the request of CIRC, provide the exact state of transactions relating
to the overseas use of insurance-related foreign exchange fund;

(7)

the country or district concerned having a well-defined financial regulatory system, and there being a memorandum of understanding
concerning regulatory cooperation and effective regulatory cooperation relations between financial regulatory authority of the country
or district concerned and the Chinese financial regulatory authority; and

(8)

other requirements for prudence as prescribed by CIRC.The provisions concerning professional investment institutions established overseas
by domestic financial institutions, to which the management of insurance-related foreign exchange fund is entrusted, shall be separately
formulated by CIRC.

Article 15

When an insurance company entrusts its investment management to an external trustee, its internal professional fund use department
or related insurance asset management company shall be in charge of the delegation matters, and appraise the risk level of the trusted
assets, investment performance and management ability of the external trustee.

When selecting an external trustee for the management of insurance-related foreign exchange fund, the risk of management shall be
fully taken into consideration, and the foreign exchange fund under trusteeship management shall be decentralized properly.

Article 16

In the overseas use of its insurance-related foreign exchange fund, an insurance company shall lay stress on that the use matches
its liabilities in foreign exchange in terms of term structures and currency structures.

When undertaking overseas use of its insurance-related foreign exchange fund, the insurance company shall give priority to the bonds
issued overseas by the Chinese government and Chinese enterprises.

Chapter V Asset Custody

Article 17

In the overseas use of its foreign exchange fund, an insurance company shall entrust the custody of all its assets used overseas to
a domestic commercial bank.

The commercial bank as in the preceding paragraph means any Chinese capital bank, branch of a foreign bank, Chinese-foreign joint
venture bank or foreign capital bank in the territory of China.

Article 18

A commercial bank to be a domestic custodian of an insurance company shall fulfill the following requirements:

(1)

having been a designated foreign exchange bank for more than three years;

(2)

its paid-in capital being not less than RMB8 billion yuan, of which, there must be foreign exchange capital in freely convertible
currencies at the value of RMB1 billion yuan for a Chinese capital bank; the paid-in capital of the branch of a foreign bank shall
be calculated in light of its head office;

(3)

having obtained qualifications for domestic securities investment fund custody business;

(4)

having a sound corporate governance structure and well-established internal management system and risk control system;

(5)

having a special custody department and personnel of corresponding number who are familiar with global custody business;

(6)

having a safe and efficient clearing and settlement system and emergency mechanism;

(7)

having no record of any major illegal or irregular act, and neither the head office nor the branch having been heavily punished by
the regulatory authority of the country or district concerned, in the past three years; and

(8)

other requirements as prescribed by CIRC and SAFE.

The branch of a foreign bank shall not be subject to item (3) of the preceding paragraph, on condition that its head office has a
custody scale of at least US$100 billion.

Article 19

The domestic custodian of an insurance company shall perform the following obligations:

(1)

to manage the foreign exchange fund and securities entrusted by the insurance company;

(2)

to open a domestic custody account, external foreign exchange use settlement account and securities custody account in respect of
insurance-related foreign exchange fund;

(3)

to conduct outward and inward remittance of foreign exchange fund and the pertinent exchange formalities;

(4)

to supervise the overseas investment operation by the insurance company, insurance asset management company and external trustee,
jointly with the external custody agent;

(5)

to promptly notify the insurance company of any illegal or irregular investment directions whenever they find any;

(6)

to supervise the external custody agent and make sure that the insurance-related foreign exchange fund is in safe custody;

(7)

to keep for at least 15 years the records, vouchers and other pertinent materials of inward and outward remittance and transactions
of foreign exchange fund and transactions of securities;

(8)

to conduct the declarations for statistics of the international balance of payment in conformity with such provisions as the Measures
for Declarations for Statistics of International Balance of Payment, Operation Rules for Financial Institutions’ Handling Declarations
for Statistics of International Balance of Payment, and Operation Rules for Financial Institutions’ Handling Declarations of External
Asset Balance and Profit and Loss;

(9)

to assist CIRC and SAFE in inspecting the overseas use of insurance-related foreign exchange funds; and

(10)

other obligations as prescribed by CIRC and SAFE.

Article 20

The domestic custodian of an insurance company shall submit the pertinent reports pursuant to the following provisions:

(1)

a report on the opening of the insurance company’s domestic custody account, external foreign exchange use settlement account and
securities custody account shall be made to CIRC and SAFE within five days as of the day when they are opened;

(2)

a report on the insurance company’s outward remittance of principal and inward remittance of principal and earnings shall be made
to SAFE with a copy thereof to CIRC within two days as of the day of remittance;

(3)

a report on the receipt and payment in the domestic custody account of the insurance company shall be made to CIRC and SAFE within
five days from the end of each month;

(4)

a statement of the overseas use of insurance-related foreign exchange fund shall be submitted to CIRC and SAFE within ten days as
of the end of each quarter;

(5)

a statement of the overseas use of foreign exchange fund of the insurance company for the last year shall be submitted to CIRC and
SAFE within one month as of the end of each fiscal year;

(6)

it shall promptly report to CIRC and SAFE any illegal or irregular investment directions of the insurance company, insurance asset
management company or external trustee whenever it finds them; and

(7)

it shall report other matters to CIRC and SAFE as prescribed by them.

Article 21

After receiving the approval document from SAFE for the amount of foreign exchange payment for investment, an insurance company shall
conclude a custody agreement with the domestic custodian by producing such approval document, and open a domestic custody account.

Article 22

The insurance company shall submit the following documents to CIRC and SAFE within five days as of the opening of its domestic custody
account:

(1)

a copy of the custody agreement; and

(2)

a written commitment of the domestic custodian that it shall, pursuant to the pertinent provisions, supervise the use by the insurance
company of its domestic custody account, external foreign exchange use settlement account and securities custody account.

The custody agreement must state the obligations of the domestic custodian as prescribed in Articles 19 and 20 herein. The insurance
company is enpost_titled to terminate the agreement earlier if, in the case of any violation by the domestic custodian of the said obligations,
CIRC or SAFE requires the insurance company to replace the domestic custodian with another one.

Article 23

The following funds fall with the receipts of the domestic custody account of an insurance company:

(1)

foreign exchange fund transferred to the account by the insurance company;

(2)

insurance-related foreign exchange fund remitted to the account from overseas;

(3)

bank deposit principal and interest income;

(4)

interest income from bonds and revenue from sale of bonds;

(5)

interest income from money market derivatives and revenue from the sale thereof; and

(6)

other receipts.

Article 24

The following expenditures fall within the payment of the domestic custody account of an insurance company:

(1)

fund transferred to the external foreign exchange use settlement account;

(2)

insurance-related foreign exchange fund remitted back to the insurance company;

(3)

bank deposit;

(4)

cost paid for the purchase of bonds, including tax payment, such as stamp tax and capital gains tax;

(5)

currency exchange fee, custody fee and asset management fee;

(6)

various service charges; and

(7)

other expenditures.

Article 25

Any overseas commercial bank chosen by a domestic custodian to be its external custody agent shall fulfill the requirements concluded
in the custody agreement.

The domestic custodian shall open an external foreign exchange use settlement account and a securities custody account in respect
of the insurance-related foreign exchange fund with its external custody agent for fund settlement and securities custody business.

Article 26

The domestic custodian shall choose an overseas commercial bank satisfying the following requirements as its external custody agent:

(1)

its paid-in capital being not less than US$2.5 billion or its equivalent in other freely convertible currencies;

(2)

having been of at least grade A or its equivalent of long-term credit as assessed by an internationally accepted rating agency for
the past three years;

(3)

being qualified for a custodian as determined by the regulatory authority of the country or district concerned, or having cooperative
relations with the domestic custodian;

(4)

having a sound corporate governance structure and well-established internal management system and risk control mechanism;

(5)

having a special custody department and personnel of corresponding number who are familiar with the custody business in the country
or district concerned;

(6)

having a safe and efficient clearing and settlement system and emergency mechanism;

(7)

having no record of any heavy punishment in the country or district concerned in the past three years;

(8)

the country or district concerned having a well-defined financial regulatory system, and there being a memorandum of understanding
regarding regulatory cooperation and effective regulatory cooperation relations between the financial regulatory authority of the
country or district concerned and the Chinese financial regulatory authority; and

(9)

other requirements for prudence as prescribed by CIRC and SAFE.

Article 27

The insurance company’s domestic custodian and its external custody agent shall strictly separate their own assets from those under
trust, and set up accounts respectively for, and make separate management of, the overseas use of foreign exchange fund of each insurance
company.

Chapter VI Supervision and Management

Article 28

SAFE may adjust the approved amount of overseas use of insurance-related foreign exchange fund for investment in light of the overall
state of international balance of payment.

Article 29

Any overseas use of foreign exchange fund by an insurance company shall be limited to the provisions of Articles 9 and 10 herein,
and the insurance company may not commit any of the following acts:

(1)

granting a loan to or providing guarantee for others;

(2)

money laundering;

(3)

conspiring with its external trustee, domestic custodian and external custody agent to obtain illegal gains; or

(4)

other acts as prohibited by the pertinent laws or provisions of China or any other country or district concerned.

Article 30

When concluding a pertinent agreement respectively with its external trustee and domestic custodian, an insurance company shall expressly
require the external trustee and domestic custodian to promptly provide the related statements and relevant materials to CIRC and
SAFE.

Article 31

CIRC and SAFE may require the insurance company and its domestic custodian to provide the materials concerning the overseas use of
insurance-related foreign exchange fund and, if necessary, conduct on- site inspection on the insurance company or entrust such inspection
to a professional agency.

Article 32

No overseas commercial bank entrusted with the management of insurance-related foreign exchange fund may concurrently be the domestic
custodian or external custody agent.

Article 33

If any of the following circumstances occurs, the insurance company shall report it to SAFE within five days as of the occurrence:

(1)

any change of its external trustee, domestic custodian or external custody agent;

(2)

any significant change in its registered capital and shareholding structure;

(3)

being involved in any major litigation, subject to any heavy punishment or any other serious matters; and

(4)

other circumstances as prescribed by SAFE.

The insurance company shall also report the occurrence of circumstances under items (1) and (3) of the preceding paragraph to CIRC.

Article 34

If any of the following circumstances occurs, the insurance company’s domestic custodian shall report it to CIRC and SAFE within five
days as of the occurrence:

(1)

any significant change in its registered capital and shareholding structure;

(2)

being involved in any major litigation or subject to any heavy punishment; and

(3)

other matters as prescribed by CIRC and SAFE.

Article 35

Any insurance company and its domestic custodian in violation of the present Measures or any other provisions concerning insurance
and foreign exchange control shall be given by the pertinent regulatory authorities administrative penalties according to their respective
authorities and regulatory functions.

In the case of any gross violation by an insurance company of the present Measures, CIRC may limit the company’s scope of business,
order the company to cease accepting new business or revoke the company’s license for insurance business.

In the case of any gross violation by the domestic custodian of the present Measures, CIRC may order the insurance company to replace
the domestic custodian.

Article 36

If the external trustee entrusted with the management of insurance-related foreign exchange fund breached the pertinent provisions,
CIRC and SAFE may require the insurance company to replace such external trustee.

Chapter VII Supplementary Provisions

Article 37

For the materials submitted to CIRC and SAFE under the present Measures, those in Chinese shall be regarded as the authentic ones.

Article 38

The use by an insurance company of foreign exchange fund in Hong Kong Special Administrative Region and Macao Special Administrative
Region shall be carried out by following the pertinent provisions of the present Measures.

Article 39

The overseas use of foreign exchange fund by an insurance management company shall be carried out by following the present Measures.

Article 40

In the present Measures, day means a working day not including any festival or holiday.

Article 41

The power of interpretation of the present Measures shall be vested in CIRC and the People’s Bank of China.

Article 42

The present Measures shall be implemented as of the date of promulgation.

China Insurance Regulatory Commission
2004-08-09

MEASURES FOR THE ADMINISTRATION OF EXAMINATION AND APPROVAL OF RADIO STATIONS AND TELEVISION STATIONS

the State Administration of Radio, Film and Television

Order of the State Administration of Radio, Film and Television

No. 37

The Measures for the Administration of Examination and Approval of Radio Stations and Television Stations, which have been adopted
at the executive meeting of the State Administration of Radio, Film and Television on June 15, 2004, are promulgated hereby and shall
go into effect as of September 20, 2004.

Director of the State Administration of Radio, Film and Television Xu Guangchun

August 18, 2004

Measures for the Administration of Examination and Approval of Radio Stations and Television Stations

Article 1

For the purposes of regulating the administration of radio stations and television stations and safeguarding the sound development
of the radio and television undertaking and industry, the present Measures are formulated in accordance with the Regulation on the
Administration of Radio and Television.

Article 2

The “radio and television stations” as referred to in the present Measures are the radio and television broadcasting institutions
(include the radio stations and television stations, the educational television stations, the enterprise groups of radio, film and
television, the chief stations, the branches of the radio and television stations with independent legal personality) which gather
and edit, produce and broadcast radio and television programs to the general public through the wired, the wireless, the satellites
transmission or other means.

Article 3

The State Administration of Radio, Film and Television (hereinafter referred to as the SARFT) shall be responsible for formulating
the plans for the establishment of radio stations and television stations of the whole country, determining the total amount, overall
arrangement and structure of the radio and television stations, and examining and approving the establishment and supervising and
administrating the radio and television stations of the whole country. The administrative departments of radio, film and television
of the local people’s governments at the county level or above shall be responsible for the administration of the radio and television
stations within their own administrative divisions.

Article 4

The State prohibits the establishment of radio and television stations in the form of foreign-funded venture, Chinese-foreign equity
joint venture or Chinese-foreign contractual joint venture.

Article 5

In principle, the radio and television stations shall be established by the administrative departments of radio, film and television
at the level of county or city undivided into districts or by the authorized enterprise groups of radio, film and television (the
chief station).The educational television stations, however, may be set up by the educational administrative departments at the level
of city divided into districts or autonomous prefecture level or above.

Article 6

To establish and merge a radio or television station, the following requirements shall be met:

(1)

It shall be in conformity with the development plan of the national radio and television undertaking and industry and the related
national and trade standards;

(2)

It shall have the professional staff of radio and television, shall have technical equipments and the place utility prescribed by
the State;

(3)

It shall have the necessary funds for capital construction and stable capital guarantee;

(4)

It shall have the definite channel orientation and certain transmission coverage; and

(5)

The means of transmission and technical parameters shall conform to the layout of transmission coverage network of the national radio
and television.

Article 7

The establishment, merger and alteration of the related matters of radio and television stations at the central level shall be directly
reported to the SARFT for examination and approval. The establishment and alteration of the local radio stations and television stations
shall be applied to the superior administrative department of radio, film and television by their corresponding administrative departments
of radio, film and television, and reported to the SARFT for examination and approval after the level-by-level examination and approval.

The establishment, merger and alteration of the related matters of the educational television stations shall be applied to the superior
educational administrative departments by the educational administrative departments at the level of city divided into districts
or autonomous prefecture level or above upon the approval of their corresponding administrative department of the radio and television,
and reported to the SARFT for examination and approval after the level-by-level examination and approval and the examination and
approval of the educational administrative department of the State Council.

Article 8

To apply for the establishment and merger of the radio and television stations, one shall submit the following application materials:

(1)

a written application; and

(2)

a feasibility report, which shall include the following contents:

human resources;

capital guarantee and sources;

place, equipments;

plan for the launching of channels and programs (including the orientation of the channels and the column designing);

transmission coverage, means and technical parameters; and

operation plans.

(3)

the station name, and logo and the call letters to be used, attached with the colored sample design of the station logo, brief description
of the originality and electronic manuscript;

(4)

the approval documents of the people’s government at the same level for granting the establishment and merger; and

(5)

preparatory plans.

Article 9

To apply for adjusting the established number of programs and the range of the programs, one shall submit the following application
materials:

(1)

a written application; and

(2)

a feasibility report, which shall include the following contents:

the reasons for adjusting the number of programs and the range of the programs;

human resources;

capital guarantee and sources;

place, equipment;

plan for the launching of channels and programs (including the orientation of channels and the column designing);

transmission coverage, means and technical parameters; and

operation plans.

(3)

preparatory plans.

Article 10

The names and the call letters of the radio and television stations shall, in principal, be in conformity with the names of the administrative
divisions determined by the State Council.

The station logo may be composed of the design, Chinese characters, numbers and letters of an alphabet, and shall be distinct from
the logos used by other radio stations, television stations and other institutions and be marked out on the top left corner of the
screen when broadcasting. The logo of the program channels owned by the radio and television stations shall be composed of, station
logo, as the principal part, and the channel names or their short form and the serial numbers.

Article 11

In case of applying for the alteration of the station name, logo or call letters, a radio and television station shall submit the
following application materials:

(1)

a written application; and

(2)

the station name, and logo and the call letters to be altered, as well as the colored sample design, brief description of the originality
and electronic manuscript. If the alteration is due to the alteration of the administrative divisions, the duplicate of the approval
documents concerning the alteration of the administrative divisions shall be submitted to the State Council.

If the alteration of station name and call letters is due to other reasons, the reasons for the alteration shall be fully expounded
in the written application.

Article 12

In case of applying for the alteration of the transmission coverage, means and technical parameters, a radio or television station
shall submit the following application materials to the administrative departments of radio and television of their own level:

(1)

a written application; and

(2)

the use suggestions of the technical parameters, the necessary design documents or technical assessment reports.

The reasons shall be given in the written application for the alteration of the transmission coverage, means and technical parameters
and the compacts on the transmission coverage network.

Article 13

The radio and television stations, established by the radio and television administrative departments at the level of the sub-provincial
cities or above or by the authorized groups of radio, film and television (the chief station), may transmit the radio and television
programs of their own stations by satellite in accordance with the development plan of construction and technology for the undertaking
and industry of the national radio and television.

To transmit the radio and television programs of their own stations by satellite, the stations shall apply to the administrative department
of radio and television at the same level, and it shall be reported level-by-level and be subject to examination and approval by
the SARFT after the administrative department of radio and television at the same level report to the people’s governments at the
same level for approval.

Article 14

In case of applying for transmitting the radio and television programs of their own stations by satellites, a radio and television
station shall submit the following application materials:

(1)

a written application; and

(2)

a feasibility report, which shall include the following contents:

the reasons for transmitting the radio and television programs by satellite;

human resources;

capital guarantee and sources;

place, equipments;

plan for the launching of channels and programs (including the orientation of the channels and the column designing); and

an operation plan.

(3)

the censorship of the programs and the administrative systems;

(4)

the safe transmission and broadcasting schemes, technical proposals; and

(5)

the approval documents of the people’s government at the same level; and

(6)

the preparatory plans.

Article 15

The radio and television stations, established by the administrative departments of radio and television at the level of the sub-provincial
cities or above or by the authorized enterprise groups of radio, film and television (the chief station), may apply to the administrative
department of radio and television at the same level for establishing the substations within their own administrative divisions,
and it shall be subject to the examination and approval of the SARFT after level-by-level examinations.

To establish the substations, the radio and television stations shall submit the following application materials:

(1)

a written application; and

(2)

a feasibility report, which shall include the following contents:

human resources;

capital sources;

place, equipments;

plan for the launching of channels and programs (including the orientation of the channels and the column designing); and

transmission coverage, means and technical parameters.

(3)

the station name and logo and the call letters, attached with the colored sample design of the station logo, a brief description of
the originality and electronic manuscript.

Article 16

The substations, established by the radio station and the television station, shall be put on record with the administrative departments
of radio and television at the locality of the stations prior to the beginning of broadcasting, and be subject to the territory administration
of the administrative departments of radio and television at the locality of the stations.

Article 17

All application materials submitted by the applicant shall be done in quintuplicate. The administrative departments of radio and television
in charge of acceptance shall perform the responsibility of acceptance and examination and approval in accordance with the time limit
and the limit of authority prescribed in the Administrative License Law. The SARFT shall conduct the final examination and approval
of the application materials. If the application of the applicant is in accordance with the statutory standards, a written decision
for granting the administrative license shall be made. In case the decision of disqualification of the administrative license is
made, the applicant shall be given a written notice and the reasons therefore.

Article 18

The SARFT shall issue Permit of the Radio and Television Broadcasting Institutions to the radio and television stations established
upon authorization, and simultaneously issue a Permit of the Radio and Television Channels to each set of the radio and television
programs launched upon authorization.

The term of validity of the permit shall be three years commencing from the date of issuance. If it needs to continue its operations
when the term expires, the application shall be filed in accordance with the prescriptions of Articles 6, 7, and 8 of the Present
Measures 180 days before of the expiration of the term of validity, and the permit shall be reissued for a new term upon the level-by-level
examination and approval.

Permit of the Radio and Television Broadcasting Institutions and Permit of the Radio and Television Channels shall be uniformly printed
and issued by the SARFT.

Article 19

In case a radio and television station is terminated, it shall fully expound the reasons, and be reported level-by-level to the SARFT
for examination and approval in accordance with the former establishment examination and approval procedures, and the Permit of Radio
and Television Broadcasting Institution and Permit of the Radio and Television Channels thereof shall be taken back by the SARFT.

Article 20

The radio and television stations shall produce and broadcast the programs according to the setup subjects, the station names, the
call letters, the station logos, the range of programs, the established number of programs, the transmission coverage and means,
and technical parameters.

Article 21

If a radio and television station temporarily suspends its broadcasting due to special reasons, it shall be subject to approval by
the administrative department of radio and television at the provincial level or above. If the radio and television station suspends
broadcasting for more than consecutively 30 days without permission or fails to resume broadcasting for more than 180 days commencing
from the date of approval by the SARFT, it shall be regarded as being terminated.

Article 22

The channels of the radio or television stations may be divided into the public ones and commercial ones. It is allowed for the two
types of channels to be properly separated in structural establishment, and adopt the corresponding organization and management ways
and operation means in light of their respective features and aims. The special administrative measures shall be formulated separately.

Article 23

The radio and television stations can trans-regionally and jointly run the radio and television channels or programs launched upon
permission.

Article 24

In case a radio and television channel or program is run jointly, the radio and television station thereof shall apply to the administrative
departments of radio and television at the same level, and it shall be subject to the examination and approval by the SARFT after
the level-by-level examination and approval.

To run the radio and television channels or program jointly, the radio and television stations shall submit the following application
materials:

(1)

a written application; and

(2)

a feasibility report, which shall include the following contents:

the reasons for the joint operation of the radio and television channels or program;

human resources;

capital guarantee and sources;

place, equipments;

resources of the programs and a plan for the programs;

transmission coverage, means and technical parameters; and

an operational plan.

(3)

a cooperative contract.

Article 25

No radio station or television station at the county level may launch any television channel by itself. However, the local news and
the special topics of economy, science and technology, legality, agriculture, and important activities, programs of entertainment
with local color, and advertisements produced by them may be broadcasted in the reserved time intervals of the public channels within
the administrative divisions of its own province, autonomous region, and municipality directly under the Central Government.

Article 26

The administration of the examination and approval of pay channels of the radio and television stations shall be carried out in accordance
with the pertinent regulations of the SARFT.

Article 27

The technical schemes, safe transmission and broadcasting schemes, transmission coverage, means and technical parameters declared
by the radio station or the television station shall be in conformity with the pertinent regulations of the SARFT.

Article 28

Punishment shall be imposed on any violation of the present Measures pursuant to Regulation on the Administration of the Radio and
Television.

Article 29

The present Measures shall go into effect as of September 20, 2004. The Measures for the Administration of Examination and Approval
of Establishing Radio and Television Stations (Order No.19 of the Ministry of Radio, Film and Television) of the Ministry of Radio,
Film and Television shall be abolished simultaneously.

the State Administration of Radio, Film and Television
2004-08-18

123...29 Page 2 of 29

Brazilian Laws

CONSTITUTIONAL AMENDMENTS part 4 – 1988 Constitution

CONSTITUTIONAL AMENDMENTS part 3 – 1988 Constitution

TITLE I. FUNDAMENTAL PRINCIPLES – 1988 Constitution