REGULATIONS OF THE PEOPLE’S BANK OF CHINA ON WORKING CAPITAL OF THE BRANCH OFFICES OF FOREIGN-CAPITAL INSURANCE CORPORATIONS

The People’s Bank of China

Regulations of the People’s Bank of China on Working Capital of the Branch Offices of Foreign-capital Insurance Corporations

YinFa [1998] No.337

July 21, 1998

Branches in Shanghai, Guangdong, Hainan, Shenzhen economic zone of the People’s Bank of China:

In order to ensure the normal operation and reduce the risk of operation for the branches of foreign insurance enterprises in our
country, according to the Insurance Law of the People’s Republic of China, now the regulation about the working capital of the branch
office of foreign-capital insurance corporations is made as follows:

I.

The branch offices of the foreign insurance enterprises should be appropriated working capital of no less than 0.1billion RMB or the
equivalence convertible currency by their headquarters. The branch offices of the foreign insurance enterprises should withdraw the
guaranteed security by 40% of their working capital.

II.

The branch offices of the foreign insurance enterprises set up with approval previously of which the guaranteed security cannot meet
the provisions should make up the balance by the end of 1998.