PROVISIONS OF THE BEIJING MUNICIPAL PEOPLE’S GOVERNMENT FOR THE DEVELOPMENT AND MANAGEMENT OF REAL ESTATE BY FOREIGN INVESTORS

   Article 1. The provisions are formulated in accordance with the relevant State laws and regulations and in line with the actual conditions of
the city with a view to importing foreign capital for developing real estate, accelerating municipal construction and promoting economic
development in the city.

   Article 2. All foreign enterprises, other organizations and individual investors (hereinafter referred to as “investors”) may engage in the
development and management of real estate in the administrative districts of the city according to the provision in areas of:

1. Science and technology, industry, agriculture and communications;

2. Tourism, commerce, banking, recreation and sports;

3. High-grade residential and office buildings.

The provisions also apply to enterprises, other organizations and individuals from Hong Kong, Macao and Taiwan and overseas Chinese.

   Article 3. The term “real estate” used here means State owned land, of which the right of use it (hereinafter referred to as “land use right”),
structures on it and other attachments have been granted.

The term “management of real estate” means transferring, leasing and mortgaging of the land use right and buying, selling, leasing
and mortgaging of housing and other structures and attachments on the land.

   Article 4. In developing and managing real estate, investors must abide by the Chinese laws, regulations and rules. The development enterprises
they invest in have the right to carry out their operations freely within the limit covered by the law and the contracts.

The legitimate rights and interests of investors shall be protected by law.

   Article 5. In developing and managing real estate, investors shall enter into joint equity or cooperative ventures or establish their own enterprises
(all referred to as “development enterprises” below) in compliance with the “Law of the People’s Republic of China on Sino-Foreign
Joint Equity Ventures”, the “Law of the People’s Republic of China Concerning Sino-Foreign Cooperative Ventures” and the “Law of
the People’s Republic of China on wholly Foreign Owned Enterprises”.

Enterprises and other organizations within the jurisdiction of the city, who intend to enter into development enterprises with investors,
must have the necessary qualifications for developing and managing real estate.

If a wholly foreign owned development enterprise wants to develop land by large tracts and if a joint equity or cooperative venture
or a wholly owned enterprise engages in commercial and trading activities by using the real estate, it shall be subject to examination
by the Beijing Municipal People’s Government and approval by the department in charge of the State Council.

   Article 6. In developing and managing real estate, development enterprises shall acquire the land use right according to the “Provisional Regulations
of the People’s Republic of China Concerning the Leasing and Transferring of the Right to Use State Owned Land in Urban Areas” (referred
to as “Regulations” below) and the “Procedures of the Beijing Municipality for Implementing the Provisional Regulations of the People’s
Republic of China Concerning the Leasing and Transferring of the Right to Use State Owned Land in Urban Areas” (referred to as “Procedures”
below).

The lease-out of a tract of land for development must be approved by the municipal people’s government, publicly noticed by the Land
Management Bureau or the Real Estate Management Bureau, and the corresponding information of which must be provided to the projected
lessees in accordance with the provisions of Article 14 of the Procedures.

   Article 7. Development enterprises may sell and lease the right of the real estate to other Chinese and foreign enterprises, organizations and
individuals. But approval of the municipal people’s government must be sought whenever houses are sold to Chinese individuals (excepting
those from Hong Kong, Macao and Taiwan).

In selling and leasing of real estate, the parties concerned shall sign contracts and go through the registration and transfer procedures
concerning the house property right and the land use right according to the relevant provisions of the Regulations and Procedures.
In selling high-grade houses, it is necessary to formulate agreements on the use, management and servicing of the houses, submitted
to the Real Estate Management Bureau for examination and approval.

   Article 8. A building may be sold in its entity or in floors or in units. In the case of selling floors or units, clear provisions shall be
made with regard to the proportion of land use right and remaining years of property of the houses in the contract. The time limit
for renting houses shall be in keeping with the time limit for the leasing of the land use right.

The prices for selling houses or buildings shall be fixed by the development enterprises themselves.

   Article 9. The following requirements shall be met in selling houses and buildings in advance after the approval of the municipal real estate
management bureau: 1. The payment for the land use right is made (including the municipal construction fees, resettlement compensation
fees and fees for leasing the land use right, the same below) and certificates for using the land are obtained;

2. The blueprints for construction have been approved and licenses for project plans have been obtained;

3. More than 25 percent of the total investment for the engineering construction have been paid up;

4. The work schedule and the date for project delivery have been fixed.

After the housing sold in advance is put into use, the buyers shall go through the property right and land use right registration
procedures.

   Article 10. The selling and leasing of real estate may be conducted at home or abroad. If it is conducted abroad, the Chinese law shall apply.

In selling and leasing real estate, the procedure for notarization and authentication shall be completed according to provisions.

   Article 11. Development enterprises may mortgage their real estate to Chinese and foreign banks or other financial institutions and sign contracts
according to the Regulations and Procedures and go through the registration procedures.

If the pledger uses the rented houses as the pledge, it shall notify the lessees in writing and the original leasing contract continue
to be valid.

   Article 12. In developing and managing real estate, development enterprises shall pay taxes and fees according to law.

Development enterprises may refuse to pay fees other than those provided for by the State and the municipal people’s government.

   Article 13. Development enterprises shall keep their own balance in foreign exchange payment. The part of profits in Renminbi derived from the
development and management by investors shall be disposed of and used according to the relevant regulations of the State.

   Article 14. If enterprises and other organizations within the jurisdiction of the city use the land use right and structures on the ground and
other attachments allocated to them by the State as their share of investment to enter into joint equity or cooperative venture with
investors, they must apply for examination and approval according to the provisions of the Regulations and Procedures and make good
in payment of the land.

The provisions above apply to enterprises, other organizations and individuals which use the land and structures and attachments on
it to cooperate with other domestic enterprises, organizations and individuals (not including those from Hong Kong, Macao and Taiwan)
in engaging in joint equity or cooperative venture.

   Article 15. The people’s government shall set up a leading group and an office in charge of real estate development and authorize them to coordinate
and make policy decisions concerning work on the real estate development and management. The right of interpreting the provisions
rests with the municipal real estate development office.

   Article 16. The provisions shall come into effect on November 20, 1992.