CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON RELEVANT ISSUES CONCERNING BROADENING THE RESERVATION OF FOREIGN EXCHANGE EARNINGS UNDER CURRENT ACCOUNT FOR DOMESTIC INSTITUTIONS

State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Relevant Issues concerning Broadening the Reservation of Foreign Exchange
Earnings under Current Account for Domestic Institutions

Hui Fa [2005] No.58

August 2, 2005

Branches and Exchange Administration Offices of the State Administration of Foreign Exchange in all provinces, autonomous regions,
municipalities directly under the Central Government, Branches in the Cities of Shenzhen, Dalian, Qingdao, Xiamen and Ningbo:

In order to facilitate the domestic institution’s use of foreign exchange and the trade, the State Administration of Foreign Exchange
decided to re-raise the reservation percentage of foreign exchange under the current account of domestic institutions. And this Circular
is hereby given as follows:

Where the domestic institution’s last-year foreign exchange disbursement under current account takes a part of less than 80% of its
foreign exchange earnings under current account, its reservation percentage of foreign exchange under current account shall be readjusted
from 30% of its last-year foreign exchange earnings under current account to 50%.

II.

Where the domestic institution’s last-year foreign exchange disbursement under current account takes a part of more than 80% (included)
of its foreign exchange earnings under current account, its reservation percentage of foreign exchange under current account shall
be readjusted from 50% of its last-year foreign exchange earnings under current account to 50%.

III.

The initial limitation amount for the newly-established current account of the domestic institution that has no foreign exchange earnings
under current account in last year shall be readjusted from the previous no more than $100 thousand USD equivalent to no more than
$200 thousand USD equivalent.

IV.

With regard to the foreign exchange current account for temporarily receiving donations, aid, international postal remittances and
internationally-contracted projects etc., the limitation amount may be he limitation amount may be fixed at 100% of the foreign exchange
earnings, and the concrete measures for this shall be subject to Circular of the State Administration of Foreign Exchange on Relevant
Issues concerning Further Readjusting the Policies for the Administration of Foreign Exchange Current Accounts (Hui Fa [2002] No.87),
and Circular of the State Administration of Foreign Exchange on Relevant Issues concerning Readjusting the Policies for the Administration
of Foreign Exchange Current Accounts under such Items as Internationally-Contracted Projects etc. (Hui Fa [2003] No.90).

The limitation amount of foreign exchange current account for such import/export enterprise and productive enterprise as have actual
business need, with the authorization of the branches of the State Administration of Foreign Exchange, may be fixed at 100% of its
foreign exchange earnings, and the concrete measures for this shall be subject to Circular of the State Administration of Foreign
Exchange on Readjusting the Administration Measures for the Limitation Amount of Foreign Exchange Current Accounts (Hui Fa [2005]
No.7).

VI.

All the branches of the State Administration of Foreign Exchange shall earnestly organize and do well the work of readjusting the
limitation amount of foreign exchange current account, and strengthen the statistical analysis, supervision and administration of
the foreign exchange accounts.

VII.

This Circular shall enter into force as of the date of promulgation. And this Circular shall prevail in case that any conflict occurs
between it and the previous provisions.

State Administration of Foreign Exchange
2005-08-02

REPLY OF THE GENERAL OFFICE OF THE PEOPLE’S BANK OF CHINA ON THE MATTERS CONCERNING THE NETWORK NAME AND INTER-BANK BORROWING LIMIT OF CREDIT AGRICOLE INDOSUEZ SHANGHAI BRANCH

Reply of the General Office of the People’s Bank of China on the Matters concerning the Network Name and Inter-bank Borrowing Limit
of Credit Agricole Indosuez Shanghai Branch

Yin Ban Han [2005] No. 8
January 10, 2005

The Shanghai Branch of the People’s Bank of China,

We have received your Request for Instruction on Modifying the Network Name of Credit Agricole Indosuez Shanghai Branch for Renminbi
Inter-bank Borrowing and on Adjusting the Limit (Shang Hai Yin Fa [2004] No. 328) and related application materials. And a reply
is hereby rendered as follows,

It is approved that the membership of the former Credit Agricole Indosuez Shanghai Branch in the Nationwide Inter-bank Borrowing Market
is cancelled, and the membership of the former Credit Lyonnais SA Shanghai Branch is reserved and has its name modified. The name
for the merged bank to be connected with the network of the National Inter-bank Funding Center shall be modified into Credit Agricole
Indosuez Shanghai Branch. Please inform Credit Agricole Indosuez Shanghai Branch to contact the National Inter-bank Funding Center,
and complete the related work on modification of the name.

It is approved that the maximum balance of the inter-bank Renminbi capital borrowed and capital lent by Credit Agricole Indosuez Shanghai
Branch is respectively increased up to RMB 300 million Yuan.

The longest time limit of the capital borrowed by Credit Agricole Indosuez Shanghai Branch shall be 4 months, and the time limit of
capital lent by it may not exceed the longest term of the capital borrowed by the counterpart as provided for by the People’s Bank
of China. The inter-bank borrowing may not be renewed after expiry.

The General Office of the People’s Bank of China
2005-01-10

SUPPLEMENTARY CIRCULAR OF THE PEOPLE’S BANK OF CHINA ON RELEVANT ISSUES CONCERNING THE OPERATION OF RENMINBI BUSINESS BY MAINLAND BANKS AND HONG KONG BANKS

the People’s Bank of China

Supplementary Circular of the People’s Bank of China on Relevant Issues Concerning the Operation of Renminbi Business by Mainland
Banks and Hong Kong Banks

Yin Fa [2005] No. 359

The People’s Bank of China Shanghai Head Office, all branches and business departments, the central sub-branches of the capital cities
of all provinces (autonomous regions), the central sub-branches in the cities of Dalian, Qingdao, Ningbo, Xiamen and Shenzhen; the
branches (foreign exchange administrative departments) of the State Administration of Foreign Exchange of all provinces, autonomous
regions, and municipalities directly under the Central Government, and the branches of the State Administration of Foreign Exchange
in the cities of Shenzhen, Dalian, Qingdao, Xiamen and Ningbo; all policy banks, wholly state-owned commercial banks, and joint-stock
commercial banks; China UnionPay Co., Ltd:

According to Announcement [2005] No. 26 of the People’s Bank of China (hereinafter referred to as the “Announcement”) and other relevant
legal provisions, the relevant issues on enlarging the scope for Mainland banks and Hong Kong banks to operate Renminbi business
are hereby notifies as follows:

For the money remitted via clearing banks by individuals holding a resident identity card of Hong Kong into the Mainland banks, with
the remitters as payees, the maximum remittance for each remitter per day shall be raised from RMB 50,000 Yuan to RMB 80,000 Yuan.
If the amount in Renminbi remitted from Hong Kong by the same remitter on the same day is more than 80,000 Yuan, the Mainland bank
shall return the excessive part of the amount via the original clearing bank to the remitting bank in Hong Kong, and may not make
the payment to the payee.

II.

The restriction on line of credit in Renminbi of the individual Renminbi bank card issued by a licensed Hong Kong bank or its subsidiaries
may not be more than 100,000 Yuan, is abolished. Each card-issuing bank itself may decide the line of credit in Renminbi.

III.

A Mainland resident may use an individual Renminbi bank card issued by a Mainland commercial bank to make payments in respect of tourism
and consumption in Hong Kong for shopping, catering, accommodation, traffic, communications, medical treatment, education, etc.,
provided that he does not use it to pay for capital or financial account transactions other than tourism or consumption, such as
operative transactions, securities investments, and real estate, etc., or for such transactions as gambling prohibited by the Mainland
laws and regulations. China UnionPay, the card-issuing bank and the acquiring bank shall, according to the “Announcement” and the
relevant administrative provisions of the People’s Bank of China, limit the codes of merchants and transactions.

IV.

An individual resident from Hong Kong may issue Renminbi checks within a limit of RMB 80,000 Yuan in each account per day to pay for
consumptive expenditures inside Guangdong Province. Such Renminbi checks may not be assigned. The time for Hong Kong residents to
issue Renminbi checks will be notified separately after completion of the work on relevant administrative measures and technical
equipment.

The present Circular shall go into effect as of the date of promulgation. Other relevant matters in respect of operation of Renminbi
business by the Mainland banks and the Hong Kong banks shall still be governed by the “Circular of the People’s Bank of China on
the Relevant Issues Concerning the Operation of Renminbi Business by Mainland Banks and the Banks of Hong Kong and Macao” (Yin Fa
[2004] No. 254 ). All branches and business departments of the People’s Bank of China, and the central sub-branches of the capital
cities of all provinces (autonomous regions) are requested to transmit the present Circular to the urban commercial banks, rural
commercial banks, rural cooperative banks, urban and rural credit cooperatives, foreign banks within their respective jurisdictions.

People’s Bank of China

December 4, 2005

the People’s Bank of China
2005-12-04

REGULATION OF THE PEOPLE’S REPUBLIC OF CHINA FOR THE ADMINISTRATION ON PRODUCTION LICENSE OF INDUSTRIAL PRODUCTS

State Council

Decree of the State Council of People’s Republic of China

No.440

The Regulation of the People’s Republic of China for the Administration on Production License of Industrial Products adopted at the
97th executive meeting of the State Council on June 29, 2005, is hereby promulgated and shall enter into effect as of the day of
September 1, 2005.

Premier, Wen Jiabao

July 9, 2005

Regulation of the People’s Republic of China for the Administration on Production License of Industrial Products

Chapter I General Provisions

Article 1

In order to ensure the quality safety of the major industrial products that straightly concern the public safety, physical health,
and safety of life and property, carrying out the state industrial policy, and promoting the healthy and harmonious development
of socialist market economy, this Regulation is formulated.

Article 2

The system of production license for the enterprises, which produce of the important industrial products as follows, shall be implemented:

dairy produce, meat produce, beverages, rice, flour, edible oil, alcohol and other foods, which directly relate to physical health;

electric carpet, pressure cooker, gas-fired water heater, and other products, which may endanger the safety of personal and property;

fiscal cash registers, money detectors, ground receiving facilities of satellite television broadcast, wireless radio and television
transmission equipment and other products concerning the financial safety and the safety and quality of communications;

safety net, safety helmet, construction fastener and other products, which may ensure labor safety;

electric power iron tower, bridge abutment, railway industrial products, water engineering metal structure, hazardous chemicals and
their wrap pages and containers, and other products, which may affect production safety and public security; and

other products subject to the administration of production license required by laws and administrative regulations in the light of
the provisions of this Regulation.

Article 3

The Catalogue of Industrial Products (hereinafter refers to as the Catalogue) subjected to the system of production license by the
state shall be formulated by the competent department of production license for industrial products of the State Council together
with the relevant departments of the State Council, and be promulgated to the public on the basis of the approval of the State Council
after soliciting the opinions of consumers associations and industrial associations of the relevant products.

The system of production license shall not be applicable to the industrial products, which the quality can be effectively ensured
through self-judgment of consumers, self-discipline of enterprises and market competition.

The system of production license shall not be applicable to the industrial products, which the safety of quality can be effectively
ensured through the system of certification and authentication.

The competent department of production license for industrial products of the State Council together with the relevant departments
of the State Council shall timely make evaluation, adjustment and curtailment step by step to the Catalogue , and be announced to
the public after reporting to and being approved by the State Council.

Article 4

This Regulation shall be abided by for the production, sale or, during the business activity, use of the products listed in the Catalogue
within the territory of the People’s Republic of China.

The administration on the import and export of the products that are listed in the Catalogue shall be implemented according to the
laws, administrative regulations and the relevant state provisions.

Article 5

Any enterprise that fails to obtain the production license shall not produce the products listed in the Catalogue. Any entity or individual
may not sell or, during the business activity, use any product of failing to obtain the production license listed in the Catalogue
.

Article 6

The competent department of production license for industrial products of the State Council shall be responsible for the unified administration
on the production license of industrial products nation wide in accordance with this Regulation. The local competent department
for production license of industrial products at or above the county level shall be responsible for the administration on production
license of industrial products within their own administrative districts.

The industrial products subjected to the system of production license for industrial products, shall be administrated by the state
in the unified form of the Catalogue, the examination requirements, the certificate symbols and the supervision and administration.

Article 7

The principle of science and justness, openness and transparency, legitimacy in the procedures and convenient for the public with
high efficiency shall be followed for the administration on production license of industrial products.

Article 8

The competent departments for production license of industrial products at or above the county level and their staff members, inspection
institution and inspectors shall have the obligation to keep confidential for the national secrets and business secrets as they known.

Chapter II Application and Acceptance

Article 9

An enterprise shall meet conditions for obtaining a production license as follows:

the business license have obtained;

the professional technicians qualifies for the products it produces;

the production conditions and means of inspection and quarantine are suitable for the products it produces;

the technical documents and technique documents match the products it produces;

sound and effective quality control system and responsibility system have established;

the products comply with the relevant national standards, industrial standards and requirements for ensuring personal health and safety
of personal and property; and

complying with the provisions of state industrial policy, and having no such circumstance as backward technique, high energy cost,
polluting of environment, or waste of resources, and etc. that are washed out by public proclamation and prohibited from being invested
and constructed by the state.

If there are otherwise provisions by any law or administrative regulation, such provisions shall also be followed with.

Article 10

In accordance with the conditions prescribed in Article 9 of this Regulation, and in light of the different characteristics of industrial
products, the competent department of production license for industrial products of the State Council shall formulate and issue specific
requirements for obtaining the production licenses of the products listed in the Catalogue; if special provisions are necessarily
made for the specific requirements for the production licenses of the products listed in the Catalogue, such provisions shall be
formulated and issued together with the relevant departments of the State Council.

The opinions of the consumers associations and the industrial associations of the relevant products shall be asked for the formulation
of the concrete requirements for the production license of the products listed in the Catalogue.

Article 11

When producing any product that is listed in the Catalogue, the enterprise shall apply for obtaining the production license to the
competent department of production license for industrial products at the local province, autonomous region, and municipality directly
under the Central Government.

If the product, which is being produced by an enterprise, is listed in the Catalogue, the enterprise shall apply for obtaining the
production license within the time as prescribed by the competent department of production license for industrial products of the
State Council.

The application of the enterprise may be brought forward through letter, telegraph, telex, fax, electronic data exchange, email, and
other ways.

Article 12

After receiving the application of an enterprise, the competent department of production license for industrial products at a province,
autonomous region, and municipality directly under the Central Government shall deal with in accordance with the relevant provisions
of the Administrative License Law of the People’s Republic of China.

Article 13

Any condition shall not be appended by the competent department of production license for industrial products at a province, autonomous
region, and municipality directly under the Central Government and any other entity to restrict any enterprise from applying for
the production license.

Chapter III Examination and Decision

Article 14

After accepting the application of an enterprise, the competent department of production license for industrial products at a province,
autonomous region, and municipality directly under the Central Government shall organize to make examination on the enterprise. In
the light of the concrete requirements of the production license for any product listed in the Catalogue, the examination on the
enterprise shall be organized by the competent department of production license for industrial products of the State Council, the
competent department of production license for industrial products at a province, autonomous region, and municipality directly under
the Central Government shall report all the application documents to the competent department of production license for industrial
products of the State Council, within 5 days from the day of accepting the application of the enterprise.

The examination on an enterprise shall be included on-site checking on the enterprise and inspection on the products.

Article 15

Two to four checkers shall be appointed by the competent department of production license for industrial products of the State Council
and the competent department of production license for industrial products at a province, autonomous region, and municipality directly
under the Central Government to make on-site checking on an enterprise, and the enterprise shall cooperate with them.

Article 16

After having passed the examinations organized by the competent department of the State Council in charge of production license for
industrial products of the State Council and obtained the certificate of checkers, the checkers may take charge of the corresponding
checking work.

Article 17

The checkers shall make on-site checking on an enterprise in the light of the conditions as prescribed in Article 9 of this Regulation
and the specific requirements for production license of the products listed in the Catalogue.

When making on-site checking on enterprise, the checkers shall not create difficulties for the enterprise, or seek for or accept property
of the enterprise or figure for other improper benefits.

Article 18

The competent department of production license for industrial products of the State Council and the competent department of production
license for industrial products at a province, autonomous region, and municipality directly under the Central Government shall notify
the result of the on-site checking to the enterprise in written form within 30 days from the day of accepting the application of
an enterprise. If the enterprise does not pass the checking, the reasons shall be explained.

Article 19

If the enterprise has passed on-site checking, the product shall be made inspection in time. If it is necessity to send samples
for inspection, the enterprise shall be notified to send the samples, which are sealed up by the checkers, to the inspection institution
that has the corresponding qualification within 7 days. If it is necessity to make the spot inspection, the checkers shall notify
the inspection institution to make the spot inspection.

Article 20

The inspection institution shall make inspection on products in the light of the relevant national standard and requirements, and
complete the inspection work within the prescribed time.

The inspection institution and inspectors shall remove inspection reports objectively, justly and timely. After being signed by the
inspectors, the inspection report shall be signed by the person who is in charge of the inspection institution. The inspection institution
and the inspectors shall be responsible for the inspection report.

Article 21

When making inspection on product, the inspection institution and the inspectors shall keep to the principle of good faith and convenience
for enterprises to provide reliable and convenient inspection service for enterprises, and shall not delay or create difficulties
for enterprises.

Article 22

Inspection institutions or inspectors may not engage in production and sales activities, which relate to the product listed in the
Catalogue under their inspection, or recommend or supervise the manufacture or the sale of any product listed in the Catalogue under
their inspection in their name.

Article 23

If the examination on an enterprise is under the control of the competent department of production license for industrial products
at a province, autonomous region, and municipality directly under the Central Government, the said department shall submit the examination
opinions and all the application documents to the competent department of production license for industrial products of the State
Council after completing the examination,.

Article 24

The competent department of production license for industrial products of the State Council shall make a decision on whether to grant
license or not within 60 days from the day of accepting the application of an enterprise. If a decision is made on granting a license,
the Certificate of Production License for Industrial Products (hereinafter refers to as the License Certificate) shall be promulgated
to the enterprise within 10 days from the day of making the decision; if a decision is made on that no license is been granting,
the enterprise shall be notified in written forms and given an explanation for the reasons.

The time needed for conducting inspection on product by an inspection institution shall not be calculated into the time limit as prescribed
in the preceding item.

The decision made by The competent department of production license for industrial products of the State Council, which the license
to the relevant products shall be granted, shall be reported to the department of development and reform of the State Council, the
competent department of public health of the State Council, the administrative department for industry and commerce of the State
Council and other relevant departments.

Article 25

The period of validity of a production license is five years, but the period of validity of the production license for food processing
enterprises is three years. If the enterprise continues to produce at the expiry of the period of validity of a production license,
, the enterprise shall apply for changing the license to the competent department of production license for industrial products at
the local province, autonomous region, and municipality directly under the Central Government six months before the expiration of
the period of the validity of the production license. The competent department of production license for industrial products of the
State Council or the competent department of production license for industrial products at the province, autonomous region, and municipality
directly under the Central Government shall make examination on the enterprise in the light of the procedures as prescribed by this
Regulation.

Article 26

If there occurs any change in the relevant standards and requirements for the product in the period of validity of a production license,
the competent department of production license for industrial products of the State Council or the competent department of production
license for industrial products at a province, autonomous region, and municipality directly under the Central Government may organize
the checking and inspection once again in accordance with the provisions of this Regulation.

Within the period of validity of a production license, there is change in the production conditions, inspection means, production
technology or technique of the enterprise, an application shall be filed by the enterprise to the competent department of production
license for industrial products at the local province, autonomous region, and municipality directly under the Central Government,
the competent department of production license for industrial products of the State Council or the competent department of production
license for industrial products at the province, autonomous region, and municipality directly under the Central Government shall
organize the checking and inspection once again in the light of the provisions of this Regulation.

Article 27

The competent department of production license for industrial products of the State Council shall, for any major licensing matter
concerning public interests that needs a hearing, announce to the public and hold a hearing.

The competent department of production license for industrial products of the State Council shall announce to the public the decision
on granting the license.

The relevant materials on handling production license shall be filed by the competent department of production license for industrial
products of the State Council and the competent department of production license for industrial products at a province, autonomous
region, and municipality directly under the Central Government in time, and the public shall have the right to consult.

Chapter IV Certificate and Symbols

Article 28

The License Certificate shall include an original and a duplicate copy, specifying the name and domicile of the enterprise, production
address, and name of the product, serial number of the Certificate, date of issuance of the Certificate, period of validity, and
other relevant contents.

The format of the License Certificate shall be followed the provisions of the competent department of production license for industrial
products of the State Council.

Article 29

If the name of an enterprise changes , the enterprise shall apply for to the competent department of production license for industrial
products at the local province, autonomous region, and municipality directly under the Central Government in time, and transact alteration
formalities.

Article 30

The License Certificate shall be taken care of by an enterprise, if the License Certificate is lost or damaged, the enterprise shall
apply for an replacement, and the competent department of production license for industrial products at the local province, autonomous
region, and municipality directly under the Central Government shall accept the application in time and handle the formalities for
an replacement.

Article 31

If enterprise does not engage in the production of product listed in the Catalogue anymore within the period of validity of the production
license, the formalities for revoking the production license shall be transacted. If the enterprise does not transact the formalities
for revoking the production license, the competent department of production license for industrial products of the State Council
shall revoke its production license and issue an announcement to the public.

Article 32

The symbols and format of a production license shall be formulated and promulgated by the competent department of production license
for industrial products of the State Council.

Article 33

An enterprise shall label the symbol and serial number of the production license on its product or the packaging and specifications.

For the food without package and other non-packed products, which are difficult to label symbols in accordance with the characteristics
of the product, the symbol and serial number of the production license may not be labeled.

Article 34

The symbol and serial number of the production license for the product shall be checked by the enterprise, which sells or during the
business activity uses any product listed in the Catalogue.

Article 35

Any entity or individual may not forge or alter License Certificate or symbol and serial number of the production license. The enterprise
that has obtained the production license shall not lease, lend or transfer in other forms the License Certificate and the symbol
of the production license.

Chapter V Supervision and Inspection

Article 36

The competent department of production license for industrial products of the State Council and the local competent department of
production license for industrial products at or above the county level shall be taken the charge of making supervision and inspection
on the enterprises engaging in the production of the products listed in the Catalogue and the checkers, inspection institution and
the relevant activities of the inspectors in the light of the provisions of this Regulation.

The competent department of production license for industrial products of the State Council shall conduct supervision the local competent
department of production license for industrial products at or above the county level on their management work of production license

Article 37

In accordance with the proof of illegal suspicion having been obtained or the offense report, the local competent department of production
license for industrial products at or above the county level shall make investigation and punishment on acts being suspected of violating
this Regulation and perform the authority functions as follows:

inquiring of the entity involving in the production, sale and during the business activity use the products listed in the Catalogue
, and the legal person, person in charge of the inspection institution and other relevant personnel about the relevant circumstances
on acts suspected of violating this Regulation;

consulting or photocopying the relevant contracts, invoices, account books and other relevant materials of the entity that produce
, sale or during business activities use the products listed in the Catalogue and of the inspection institution; and

Sealing up or detaining the products listed in the Catalogue which are produced , sale or during business activities used in violation
of this Regulation as indicated by proof.

The administrative department of industry and commerce at or above the county level may also use the functions as prescribed in the
preceding items when making investigation into act suspected of breaking the provisions of this Regulation according to law.

Article 38

The stability and conformity of the product quality shall be ensured and reports shall be submitted periodically to the local competent
department of production license for industrial products at a province, autonomous region, and municipality directly under the Central
Government. The enterprise shall be responsible for the authenticity of the reports.

Article 39

The competent department of production license for industrial products of the State Council and the local competent department of
production license for industrial products at or above the county level shall make supervision and inspection on enterprises periodically
or aperiodically. If there is necessity to make inspection on the products, it shall carry out the inspection in the light of the
relevant provisions of the Product Quality Law of the People’s Republic of China.

When conducting supervision and inspection or making inspection on any product, two or more staff members shall take part in and show
their effective certificates.

Article 40

When conducting supervision and inspection on any enterprise, the competent department of production license for industrial products
of the State Council and the local competent department of production license for industrial products at or above the county level
shall not obstruct the ordinary production and management activities of the enterprise, or seek for or receive any property of the
enterprise or figure for other benefits.

Article 41

The competent department of production license for industrial products of the State Council and the local competent department of
production license for industrial products at or above the county level shall, when conducting supervision and inspection on any
enterprise in accordance with law, record the conditions of supervision and inspection and the handling result, and put them on archives
after having them signed by the supervisors and inspectors. The general public shall have the right to consult the supervision and
inspection record.

Article 42

The competent department of production license for industrial products of the State Council shall, by ways of consulting the inspection
report, inspection conclusions and comparison, and etc., conduct supervision and inspection on the inspection process and report
of an inspection institution whether they are made objectively, justly and timely.

Article 43

In case any checker, inspection institution and any of its inspectors creates any difficulty for any enterprise, the enterprise shall
have the right to complain to the competent department of production license for industrial products of the State Council and the
local competent department of production license for industrial products at or above the county level. The competent department of
production license for industrial products of the State Council and the local competent department of production license for industrial
products at or above the county level shall make investigation and handling in time after receiving the complaint.

Article 44

Any entity or individual shall, for any act in violation of this Regulation, have the right to report to the competent department
of production license for industrial products of the State Council and the local competent department of production license for industrial
products at or above the county level. The said departments shall make investigation and handling in time after receiving the report
and keep secrets for the person making the report.

Chapter VI Legal Liabilities

Article 45

In case any enterprise produces any product listed in the Catalogue without applying for obtaining the production license in the light
of this Regulation, the competent department of production license for industrial products shall order it to stop production, confiscate
the illegally produced products, and impose a fine equal to the amount of and less than three times the value of the illegally produced
products; and the illegal gains shall be confiscated, if any; if a crime is constituted, it shall be subject to criminal liabilities
in accordance with law.

Article 46

In case there is any change in the production conditions, inspection means, production technology or technique of any enterprise that
has obtained production license, if the enterprise fails to go through formalities for reexamination in the light of the provisions
of this Regulation, it shall be ordered to stop production and sale, be confiscated of the products illegally produced or sold, and
go through the relevant formalities within a prescribed time limit; if the enterprise still fails to go through the formalities within
the time limit, a fine of less than three times the amount of the goods value of the products illegally produced or sold (including
the products having been sold and the unsold products, the same hereinafter) shall be imposed; and the illegal gains shall be confiscated,
if any; if a crime is constituted, the enterprise shall be subject to criminal liabilities in accordance with law.

In case there is any change in the name of an enterprise that has obtained production license, and the enterprise fails to go through
the alteration formalities in accordance with the provisions of this Regulation, it shall be ordered to go through the relevant formalities
within a prescribed time limit; if it still fails to go through the formalities within the time limit, it shall be ordered to stop
production and sale, be confiscated of the products illegally produced or sold, and imposed upon a fine less than or equal to the
amount of value of the goods illegally produced and sold; and the illegal gains shall be confiscated, if any.

Article 47

In case any enterprise that has obtained the production license fails to label the symbol and serial number of production license
on the product, its packaging or specifications in the light of the provisions of this Regulation, it shall be ordered to correct
within a prescribed time limit; if it still fails to correct within the time limit, it shall be imposed upon a fine of less than
30% of the amount of the value of the products illegally produced or sold; and the illegal gains shall be confiscated, if any; if
the circumstance is serious, the production license shall be revoked.

Article 48

In case any enterprise sells or during the business activity uses any products of not obtaining production license listed in the Catalogue,
it shall be ordered to correct, and be imposed upon a fine ranging from RMB 50, 000 to 200, 000 Yuan; and the illegal gains shall
be confiscated, if any; if a crime is constituted, it shall be subject to criminal liabilities in accordance with law.

Article 49

In case any enterprise that has obtained the production license leases, lends or transfers its License Certificate, symbol and serial
number of production license, it shall be ordered to correct within a prescribed time limit, and imposed upon a fine of less than
RMB 200, 000 Yuan; if the circumstance is serious, its production license shall be revoked. In case any enterprise illegally accepts
and uses the License Certificate and the symbol and serial number of the production license provided by others, it shall be ordered
to stop production and sale, confiscated of the illegally produced or sold products, and imposed upon a fine equal to but less than
three times the value of products illegally produced or sold; and the illegal gains shall be confiscated, if any; if a crime is constituted,
it shall be subject to criminal liabilities in accordance with law.

Article 50

In case any one puts to use, exchanges, transfers or damages any property being sealed up and detained, it shall be ordered to correct
and imposed upon a fine of more than 5%, less than 20% of the value of the property being put to use, exchanged, transferred or damaged;
if it refuses to correct, it shall be imposed upon a fine of one time up to three times of the value of the property being put to
use, exchanged, transferred or damaged.

Article 51

In case any enterprise forges or alters the License Certificate or the symbol or serial number of the production license, it shall
be ordered to correct, confiscated of the illegally produced or sold products, and imposed upon a fine equal to but less than 3 times
the value of the products illegally produced or sold; and the illegal gains shall be confiscated, if any; if a crime is constituted,
it shall be subject to criminal liabilities in accordance with law.

Article 52

In case any enterprise obtains any production license by cheating or bribery or other illicit means, the competent department of production
license for industrial products shall impose upon it a fine less than RMB 200,000 Yuan, and make handling in accordance with the
relevant provisions of the Administrative License Law of the People’s Republic of China.

Article 53

In case any enterprise that has obtained production license fails to

MEASURES FOR THE ADMINISTRATION OF QUARANTINE AND TREATMENT OF WOOD PACKAGING FOR OUTWARD CARGOES

General Administration of Quality Supervision, Inspection and Quarantine

Decree of the General Administration of Quality Supervision, Inspection and Quarantine

No. 69

Measures for the Administration of Quarantine and Treatment of Wood Packaging for Outward Cargoes, deliberated and adopted at the
working meeting of the General Administration of Quality Supervision, Inspection and Quarantine on December 24, 2004, are hereby
promulgated, and shall be implemented as of March 1, 2005.

Director-General of the General Administration of Quality Supervision, Inspection and Quarantine, Li Changjiang

January 10, 2005

Measures for the Administration of Quarantine and Treatment of Wood Packaging for Outward Cargoes

Article 1

With the view of regulating the quarantine supervision and administration of wood packaging, and guaranteeing the wood packaging used
for outward cargoes to meet the quarantine requirements of the importing countries or regions, the present Measures are formulated
in accordance with the “Law of the People’s Republic of China on Inward and Outward Animal and Plant Quarantine” and the Regulation
for the Implementation thereof, and with reference to the International Standards of Phytosanitary Measures No. 15, i.e., the “Guidelines
for Regulating Wood Packaging Material In International Trade” (hereinafter referred to as International Standards No. 15).

Article 2

For the purpose the present Measures, wood packaging refers to the wood materials used for carrying, packing, underlaying, supporting
or fastening cargoes, such as wood board boxes, wood bar boxes, wood pallets, wood frames, wood casks, wood shafts, wood wedges,
underlaying wood, crossties and padding wood, etc.

The artificial wood packaging and the wood packaging that are deeply processed by heating or pressing, etc. (such as veneer sheets,
fiberboards, etc.) shall be excluded. The revolved cut cores from wood sheets, scobs, wood-wools, wood shavings, and the wood materials
equal to or less than 6mm thick or shall also be excluded.

Article 3

The General Administration of Quality Supervision, Inspection and Quarantine (hereinafter referred to as the GAQSIQ) shall administer
in a centralized way the quarantine, supervision and administration of wood packaging for outward cargoes throughout the country.
The entry and exit inspection and quarantine institutions dispatched by the GAQSIQ in all such places (hereinafter referred to as
the inspection and quarantine institutions) shall be responsible for quarantine, supervision and administration of wood packaging
for outward cargoes in their respective jurisdiction.

Article 4

The wood packaging for outward cargoes shall be dealt with in a way of quarantine inactivation of harmful organism as listed in Appendix
1 of the present Measures, and a special mark shall be imprinted according to the requirements in Appendix 2.

Article 5

An enterprise engaging in inactivation of harmful organism for and imprinting the mark on wood packaging (hereinafter referred to
as mark-printing enterprise) shall file an application to the local inspection and quarantine institution for the qualification of
imprinting the mark of inactivation of harmful organism, and shall supply the documents as follows:

(1)

the “Application Form for Assessment on Imprinting the Mark of Inactivation of Harmful Organism to the Wood Packaging for Outward
Cargoes” (Appendix 3);

(2)

a counterpart of the industrial and commercial business license and of the approval certificate issued by relevant department;

(3)

an ichnography of the plant area, which shall cover the warehouse (site) of raw materials, the workshop, the place for inactivation
of harmful organism, and the warehouse of finished products;

(4)

the facilities for inactivation of harmful organism such as heat treatment or fumigation treatment, etc., and data on the relevant
technicians and management personnel;

(5)

documents on epidemic prevention and quality control system of the wood packaging production; and

(6)

other documents as required by the inspection and quarantine institution.

Article 6

An directly subordinate inspection and quarantine institution shall assess the mark-imprinting enterprises’ facilities for heat treatment
or fumigation treatment, their personnel and their relevant quality management system, etc., and in the case of eligibility (Appendix
4), it shall issue the qualification certificates for imprinting the mark of inactivation of harmful organism (Appendix 5). The name
list of such mark-imprinting enterprises shall be publicized and meanwhile be reported to the GAQSIQ for archival purposes. The duration
of validity of each mark imprinting qualification is three years; the applicant enterprises that are not qualified shall not be issued
a qualification certificate, and shall be concurrently informed in writing by the directly subordinate inspection and quarantine
institution of the reason for not issuing the qualification certificate (Appendix 6). An enterprise having not obtained the qualification
certificate shall not imprint the mark for inactivation of harmful organism without authorization.

Article 7

Where a mark-imprinting enterprise is subjects to any of the following circumstances, it shall re-apply to the inspection and quarantine
institution for the mark imprinting qualification.

(1)

the facilities for heat treatment or fumigation treatment are rebuilt or expanded;

(2)

the warehouse of finished wood packaging are rebuilt or expanded;

(3)

the enterprise is moved; or

(4)

any other major modification.

Where the enterprise fails to re-apply for the mark imprinting qualification, the inspection and quarantine institution may suspend
or even revoke its mark imprinting qualification.

Article 8

A mark-imprinting enterprise shall declare its plan on inactivation of harmful organism for wood packaging to the local inspection
and quarantine institution prior to the inactivation, and the inspection and quarantine institution shall conduct supervision over
the process of inactivation of harmful organism and the imprinting of the mark.

Article 9

After the end of inactivation of harmful organism, a mark-imprinting enterprise shall issue a report list on the result thereof (see
Appendix 7 and Appendix 8). Where the inspection and quarantine institution has ascertained the inactivation of harmful organism
to be qualified, the mark-imprinting enterprise shall imprint the mark in accordance with the provisions.

The recycled, reprocessed or repaired wood packaging shall be re-verified and the mark shall be re-imprinted to make sure that all
the composition parts of the wood packaging materials can be treated.

Article 10

A mark-imprinting enterprise shall separately store the mark-imprinted wood packaging, and take necessary epidemic prevention measures
to prevent harmful organism from encroaching again, set up records on sale and use of wood packaging, and write off them as required
by the inspection and quarantine institution.

Article 11

Where an enterprise without the mark imprinting qualification intends to use wood packaging, it may purchase the wood packaging from
an mark-imprinting enterprise publicized by the inspection and quarantine institution, and require the mark-imprinting enterprise
to provide the document testifying that the wood packaging for outward cargoes are qualified from inactivation of harmful organism
(Appendix 9).

An inspection and quarantine institution shall conduct quarantine over the wood packaging used for outward cargoes by spot-check.

Article 12

An inspection and quarantine institution shall conduct daily supervision and inspection on the mark-imprinting enterprises.

Article 13

Where a mark-imprinting enterprise is subject to any of the following circumstances, the inspection and quarantine institution shall
order it to make rectification, and during the period of rectification, its mark imprinting qualification shall be suspended.

(1)

The facilities for heat treatment/fumigation treatment or its testing equipment fails to meet the requirements;

(2)

The inactivation of harmful organism fails to reach the prescribed technical indexes in terms of temperature, dosage and time, etc.

(3)

The warehouse of finished wood packaging which is qualified from inactivation of harmful organism is not properly managed, and is
vulnerable to be re-encroached by harmful organism;

(4)

The mark is not imprinted on the wood packaging in a proper way as required;

(5)

The information on inactivation of harmful organism, sale, or other information of the wood packaging is not clear;

(6)

The relevant quality management system fails to work normally, or the quality records are not well kept;

(7)

It fails to declare its plan on inactivation of harmful organism with the inspection and quarantine institution in accordance with
the provisions; or

(8)

Other circumstances which affect the quality of quarantine over the wood packaging.

Article 14

Where any of the following circumstances occurs due to the mark-imprinting enterprise, the inspection and quarantine institution shall
suspend or revoke the enterprise’s mark imprinting qualification, and publicize such suspension or revocation.

(1)

Due to the circumstances as prescribed in Article 13 , the enterprise is required abroad to conduct inactivation of harmful organism,
destroy the wood packaging, or return the wood packaging back to China;

(2)

The enterprise imprints the mark before carrying out effective inactivation of harmful organism;

(3)

The enterprise speculates, misappropriates the mark or commits other frauds;

(4)

In the enterprise takes place any heavy quality or safety accident; or

(5)

Other circumstances that seriously affect the quarantine quality of the wood packaging.

Article 15

Anyone who forges, alters or usurps a mark shall be penalized in accordance with relevant provisions of the “Law of the People’s Republic
of China on Inward and Outward Animal and Plant Quarantine” and the Regulation for the Implementation thereof.

Article 16

In case the importing country or region has otherwise special quarantine requirements on wood packaging, the provisions thereof shall
prevail.

Article 17

The power to interpret the present Measures shall be vested with the GAQSIQ.

Article 18

These Measures shall be implemented on March 1, 2005.

Appendixes: (Omitted)

General Administration of Quality Supervision, Inspection and Quarantine
2005-01-10

A CIRCULAR ABOUT QUESTIONS ARISING FROM USING THE ELECTRONIC-PAID DOCUMENT AFTER CARRYING OUT THE MEASURE OF ELECTRONIC-PAID TAXATION DELIVERED BY STATE ADMINISTRATION OF TAXATIONAND THE PEOPLE’S BANK OF CHINA

State Administration of Taxation, People’s Bank of China

A Circular about questions arising from using the Electronic-Paid Document after carrying out the measure of Electronic-Paid Taxation
delivered by State Administration of Taxationand the People’s Bank of China

[2005] No. 193 of SAT

The offices of State Administration of Taxation (SAT) and Bureaus of Local Taxation in each province, Autonomous Region and Municipality
directly under the Central Government, each branch of the People’s Bank of China (PBC), the Departments managing business of the
PBC and the Central Sub-branches in the Provincial Capital Cities and other Sub-branches in the cities of Dalian, Qingdao, Ningbo,
Xiamen, and Shenzhen, the Policy-Bank, the Wholly Sate-owned Commercial Bank, the Stock Commercial Bank and Foreign Invested Bank:

The environments of paying the taxation and the efficiency of the levying and administrating of the taxation have been improved by
the measure of EPT’s carrying out. The measure is based on the construction of crosswise netting in many forms which are taken by
some areas according their particular circumstances in the nearly few years. In 2004, Ministry of Finance People’s Republic of China
(MFPRC), State Administration of Taxation (SAT) and the People’s Bank of China (PBC) decide to put the Electronic-paid Taxation (EPT)
into practice in a systematic integrity formed by the crosswise network including the finance, taxation, treasury and bank after
making a conclusion of the experiences of areas, for stimulating the practice of the Electronic-payment of taxation. The action will
follow requirements of unifying the plan of network, the business standard, the regulation of link accession and the research and
improvement of software and the requirement of allocating and saving the recourses reasonably. Complying with the law of levying
and administrating the taxation in the People’s Republic of China and the electronic signature law of the People’s Republic of China
and the Regulation about the National Treasury of the People’s Republic of China, some questions relating to the Electronic-payment
Document (EPD) after putting into practice of the Electronic-Payment of the Taxation (EPT) are stated as follow:

the Conditions of Using the EPD

The EPT means the behaviors conducting the businesses of collecting the taxation into the treasury by the taxing treasury bank, a
unit in network, through the system of crosswise network in the electronic form. With respect to the electronic-payment conforming
to the conditions hereof, each unit can use the EPD to pay by transferring instead of the paper one between each other.

Such conditions are:

(1)

The security, dependability, stability of the network system;

(2)

The transmission of the electronic information are carried out under confidential in whole process and the measures of confirming
the identity is taken into effect; the transmission can meet the requirement of the information and confidentiality relating with
concerned business and can warrant the integrity with no distortion and no denying of the information;

(3)

The information in the network is initially created by the bureaus of the taxation and collected by the national treasury and then
delivered to the commercial banks and the credit cooperatives after being checked;

(4)

The information in the network can be copied and filed immediately and possess the function to be transferred and observed in order
to realize sharing;

(5)

The network possess the function of checking the accounts in electronic immediately and keep the detailed results of the accounts’
checking;

(6)

Every unit of the network have formulated complete regulations and operating process to clarify the responsibility of each party and
have instituted mechanism of communication and coordination to resolve the problems arising from the daily work in no time;

(7)

For the practice of transferring the taxation atomically from the taxpayer’s accounts, the bureau and the opening bank of the taxpayer
have contemplated a proxy agreement with him to pay the taxation with legal effect beforehand.

Some areas have established the special communicating network between the Bureau of Tax, the National Treasury and the Commercial
Bank, which make it possible to transfer the information of the EPT directly to the Commercial Bank linking with the crosswise network,
through which the payment of the taxation in the form of electronic is realized. Therefore, the paying document in the form of paper
can be instead by the EPD in the areas which have established the special network between the Bureau of Tax, the National Treasury
and the Commercial Bank to realize the EPT, if conforming to the conditions stated hereof except Article One, section (3). But these
areas should tally with the requirement stated in the Circular about Printing and Distributing the Demands concerning with the Business
of the Tax and National Treasury Crosswise Network by the People’s Bank of China and State Administration of Taxation (BANK DELIVED2005252)
to finish the transition to the target model.

the Certification of the Electronic-Payment of Taxation

The key element contained in the certificate should satisfy the needs of tax affair, national treasury and business accounting and
management of the bank. The forms of the certificates include the EPD, the paid-certification of the EPT and The Detailed List for
putting the EPT into the Treasury used in the payment.

(1)

Electronic-Paid Document (EPD)

EPD is the electronic form of the paying document in the form of paper with the same legal effect created by the Tax Bureau. The fundamental
elements of the document include: the levying bureau, the serial number of the paying document, the serial number of the transaction
and the date of producing; the name of the paying unit’s account, the number of bank account and the account bank; the national treasury
collecting the money, the rank and order of the budget, the allocating proportion, the budget subject, the number of money, the taxpayer’s
name, the identified number of the taxpayer, the fiscal period the payment belong to and the limitation of the period etc.

(2)

The Paid-Certification of the EPT

The Paid-Certification of the EPT is the special certification for settling account from transferring the sections and items from
the taxpayer’s account, which is filled in by the National Bureau’s Department who receive and deal with the EPD in lien with it.
The fundamental elements of the certification include: the name and number of the certification and the date of the transfer; the
name of the paying unit’s account, the number of the bank account and the account bank; the national treasury collecting the money,
the name of levying bureau, the amount of money written down in both capital and ordinary forms, the type name of the tax or fee,
the fiscal period the tax or fee belong to, the paying document’s serial number of transaction and the dates of charging, checking
and mimeograph of an account etc. Each paid-certification of the EPT is composed of two copies. The first copy plays as taxpayer’s
proof of the account kept in his account bank; the second copy performs as the receipt of payment to the taxpayer who takes it as
a certification for accounting checking whether having been paid the tax or fee. The paid-certification of the electronic-payment
comes into effect only when sealed with the bank’s received stamp.

(3)

The Detailed List for putting the EPT into the Treasury

The Detailed List for putting the EPT into the Treasury is a printed detailed list of tax revenue being put into the treasury produced
by the national treasury according to the elements of the electronic-payment document. The detailed list is the basis for the national
treasury to keep account. The fundamental elements of the list include: the date of the list’s produce; the paying document’s serial
number of transaction and the date of its produce; the name of the paying unit’s account and its account bank; the collecting national
treasury, the amount money, the levying bureau, the name of the taxpayer, the rank and order of the budget, the allocating proportion
and the budget subject etc. The detailed list should be established separately in lien with the requirement of the national treasury
and the rank and order of the budget.

The Requirements for Processing the Withdrawal from the Treasury and Correcting the Operation after the Use of EPD

(1)

In the process of dealing with the withdrawal business, the tax bureau should mark the income refund document with the serial number
of transaction or other related information from the original EPD; after checking the marks from the tax bureau, the treasury should
mark the original electronic document with the date and sum of the withdrawal.

(2)

In the process of doing the correcting operation, the Tax Bureau should mark the correction inform document with the serial number
transaction or other related information from the original EPD; after checking the marks from the tax bureau, the treasury should
mark the original electronic document with the date and sum of correction.

The Tax-Paid Document

After the network units of taxing treasury bank no longer using the paper payment document, if the taxpayers need the tax bureau to
write out the tax-paid document, the tax bureau should write out the paper tax-paid document according to the EPT from the Taxation
Administration Information System. As to the taxpayers who should pass on the second copyreceipt IIof tax payment document (special
for export goods) to the buying enterprise, the tax bureau must write out the tax payment document (special for export goods) to
them in time after the EPT. The first copy (receipt I) and the second copy (receipt II) should be delivered to the taxpayers; the
fifth copy and the sixth copy should be kept as subsistence for examination by the tax bureau who wrote it out; the third copy and
the fourth copy should be kept as subsistence and destroyed regularly by the tax bureau who wrote it out.

Other Requirements

(1)

Each networking unit should take its duty and responsibility respectively, enhance the administration and avoid the risk; so as to
make sure the EPT’s process being normally and well organized. As the initiator of EPD, the tax bureau is regarded to be responsible
for the authenticity, integrality and validity of the EPD; the treasury should receive and process every network information and
be responsible for the authenticity, integrality and validity of its processed network information; the account bank of the taxpayer
should receive and transmit the EPT information, and make sure the due tax paid timely and sufficiently transferred to the national
treasury and be responsible for the authenticity, integrality and validity of its transmitted EPT information and the Paid-Certification
of the EPT.

(2)

In the process of EPT operation, each networking unit should take measures to ensure the security and secrecy of the relevant operation
information, in case of the loss of data or the exposure of secret.

(3)

The tax bureau and treasury, where the EPT has been put into practice to substitute the paper payment document, should report and
deliver materials including the scope of the EPD’s application and the approach of network implementation and operation regulation
to State Administration of Taxation (Plan and Statistic Bureau) and the People’s Bank of China (National Treasury Bureau) for filing.

(4)

Each branch of the People’s Bank of China, the Operation Managing Department, the Central Sub-branches in the Provincial Capital Cities
and other Sub-branches in the cities of Dalian, Qingdao, Ningbo, Xiamen, and Shenzhen, within its administered area, should transmit
this Circular to the Urban Commercial Bank, Rural Commercial Bank, Rural Cooperative Bank and the Credit Cooperatives in both Urban
and Rural areas.

(5)

The circular shall go into force and be implemented as of the date of its promulgation, and the problems encountered during the course
of implementation should be reported to the superior in time.

The circular is hereby specially issued.

Annex: ****Bank (Credit Cooperatives) Paid-Certification of the EPT (Omitted)

State Administration of Taxation

The People’s Bank of China

December 3rd, 2005

State Administration of Taxation, People’s Bank of China
2005-12-03

POLICIES FOR DEVELOPMENT OF IRON AND STEEL INDUSTRY

National Development and Reform Commission

Order of the National Development and Reform Commission

No. 35

The Policies for Development of Iron and Steel Industry, which were adopted at the executive meeting of the State Council, are hereby
promulgated upon the consent of the State Council and shall come into force as of the date of promulgation.

Director of the National Development and Reform Commission: Ma Kai

July 8, 2005

Policies for Development of Iron and Steel Industry

The iron and steel industry is an important basic industry of the national economy, a supporting industry for realizing the industrialization
and an intensive industry in technologies, capital, resources and energy, and its development requires a comprehensive balancing
of all kinds of external conditions. China is a big developing country with a comparatively big demand of iron and steel in the economic
development for a long time to go. China’s production capacity of iron and steel has ranked the first place in the world for many
years. However, there is a large gap in terms of the technological level and material consumption of the iron and steel industry
compared with the international advanced level, so the focus of development for the future shall be put on technical upgrading and
structural adjustment. In order to enhance the whole technical level of the iron and steel industry, promote the structural adjustment,
improve the industrial layout, develop a recycling economy, lower the consumption of materials and energy, pay attention to the environmental
protection, raise the comprehensive competitive capacity of enterprises, realize the industrial upgrading, and develop the iron
and steel industry into an industry with international competitive capacity that may basically satisfy the demand of the national
economy and social development in terms of quantity, quality and varieties, we have formulated the policies for development of the
iron and steel industry according to the relevant laws and regulations and the domestic and international situations that the iron
and steel industry faces so as to guide the sound development of the iron and steel industry.

Chapter I Aim of the Policy

Article 1

According to the requirement of our country’s economic and social development and the situation of resources, energy and environmental
protection, the production capacity of iron and steel shall maintain at a reasonable scale, which may be specifically resolved in
the relevant planning. The comprehensive competitive capacity of iron and steel industry may reach to the international advanced
level so that China may become a large country in iron and steel production and a great power country in world-wide competitive.

Article 2

By the year 2010, through the means of structural adjustment of products, the proportion of good iron and steel products shall be
elevated considerably, the majority of products shall be basically satisfied the development requirements of most industries in
the national economy such as construction, machinery, chemical industry, auto-mobiles, household appliances, vessels, traffic, railway,
military industry and new industries.

Article 3

We may elevate the industrial concentration by means of organizational and structural adjustment of the iron and steel industry,
and expand the scale of those backbone enterprise groups with comparative advantages by means of amalgamate and reorganization .
By 2010, the number of iron and steel smelting enterprises shall be considerably reduced and the production capacity of the iron
and the output of steel enterprise groups that rank top 10 in the domestic market shall be reached to 50 % and above of the national
total production capacity; by 2020, the proportion shall be reached to 70% and above.

Article 4

By means of layout adjustment of the iron and steel industry, by 2010, the unreasonable layout shall be improved; by 2020, a comparatively
reasonable industrial layout that complies with the supply of resources and energy, allocation of traffic and transportation, supply
and demand of the market and environmental capacity shall be formed.

Article 5

According to the concept of sustainable development and recycling economy, we should elevate the comprehensive level of environmental
protection and resource utilization, and should save energy and lower consumption. We should elevate the comprehensive utilization
capacity of waste gases, water and rubbishes to the largest possible extent, strive for the goal of realizing “zero discharge” and
establish iron and steel factories of the recycling type. The iron and steel enterprises

must develop the business of generating power by using reclaimed heat and energy. An iron and steel associated enterprise with the
production scale of more than 5 million tons shall strive for the goal of having more than enough power to support itself and providing
the surplus to outsiders. By 2005, the comprehensive energy consumption for each ton of steel shall be lowered to 0.76 ton of standard
coal, the comparable energy consumption for each ton of iron shall be lowered to 0.70 ton of standard coal and the water consumption
for each ton of steel shall be lowered to less than 12 tons in the whole industry; by 2010, the corresponding index shall be lowered
to 0.73 ton of standard coal, 0. 685 ton of standard coal and less than 8 tons of water, respectively; by 2020, the corresponding
index shall be lowered to 0.7 ton of standard coal, 0.64 ton of standard coal and less than 6 tons of water, respectively. That
is, in the coming 10 years, the iron and steel industry shall, on the precondition that the total consumption of water resources
decreases and the total energy consumption increases by a small margin, and realize a proper development in total quantity.

Article 6

Before the end of 2005, all the wastes as discharged by iron and steel enterprises shall have been met the standards of the state
and local provisions, and the total discharge volume of major wastes shall have been met the controlling index as verified by the
local environmental department.

Chapter II Industrial Development Planning

Article 7

The state shall guide the iron and steel industry to develop in a sound, sustainable and harmonious manner through the development
policies and the mid- and long-term development planning of the iron and steel industry. The mid- and long-term development planning
of the iron and steel industry shall be formulated by the National Development and Reform Commission (hereinafter referred to the
NDRC) in collaboration with other relevant departments.

Article 8

An enterprise group with a production capacity of more than 5 million tons in 2003 may, according to the state mid- and long-term
development planning of the iron and steel industry and the overall planning of the city where it is located, formulate the planning
of its own, which shall be implemented upon the approval of the State Council or the NDRC after making necessary cohesion and balancing
efforts. The specific construction projects of the planning shall not be required to be subject to the examination and approval
or verification of the NDRC, but shall be organized and implemented by the enterprise itself after such formalities for examination
and approval of land, environmental protection, security and credit have been handled, and shall be reported to the NDRC for archival
filing according to the relevant provisions.

Article 9

The development of any other iron and steel enterprise shall also meet the requirements of the development policies and mid- and long-term
development planning of the iron and steel industry.

Chapter III Adjustment of Industrial Layout

Article 10

For the adjustment of industrial layout, we should take such conditions as mineral resources, energy, water resources, traffic and
transportation, environmental capacity, market allocation and overseas resources into account in a comprehensive manner. For the
layout adjustment of the iron and steel industry, we shall not establish any new iron and steel associated enterprise alone, independent
iron-smelting or steel-smelting factory as a general principle. It’s not encouraged to establish any independent steel-rolling factory.
We should, on the basis of those established enterprises that meet relevant conditions and in combination with merger and relocation,
carry out reform and expansion in those regions with such comparative advantages as water resources, raw materials, transportation
and market consumption. We should combine new increase of production capacity with elimination of backward production capacity and
shall not, as a general rule, substantially expand the production capacity.

In the important regions of environmental protection, the regions in serious short of water, the urban district of big cities, the
iron and steel smelting and production capacity shall not be expanded any more. Those enterprises established within the districts
shall, in combination of the adjustment of organizational structure, equipment structure and product structure, cut production and
move to other places so as to meet the requirements of environmental protection and resource economization.

Article 11

Thinking over the bulk ores, energy, resources, water resources, transportation condition and the domestic and overseas market the
large-scale iron and steel enterprises shall be mainly located along the coastal areas. The iron and steel enterprises in inland
regions shall, in combination with the local market and bulk ore resources, determine their production according to the mines available,
and shall regard the sustainable production as the main factor for consideration other than strive for any expansion of production
scale.

There are abundant resources of iron mines in the Anshan-Benxi region in north-east China, which is near the production bases of coal
and has a certain condition of water resources. According to the development strategy of vitalizing the old north-east industrial
base, the iron and steel enterprises in this region shall, according to the requirements of associated reorganization and establishing
a top-quality production base, eliminate the backward production capacity so as to build up a large enterprise group with international
competitive capacity. .

As the region of North China is in short of water resources and the production capacity and level thereof is low and excessive, we
should, according to the ecological requirements of environmental protection, put the focus on structural adjustment, carry out merger
and reorganization, strictly control the continuous over-increase of production factories and expansion of production capacity. We
should relocate the Capital Steel Corporation and the reorganize it with the iron and steel industry of Hebei Province.

The steel material market in North China has a big potential. However, the layout of iron and steel enterprises thereof are over-intensified
and thus, the large backbone enterprises with comparative advantages within this region may, in combination of the adjustment of
organizational structure and product structure, elevate their production concentration and international competitive capacity .

As the central-southern region has abundant water resources and

convenient water transportation, the south-east coastal regions shall make full use of the advantage of deep waters and good harbors
to build up large iron and steel associated enterprises in combination with the industrial reorganization and the relocation of urban
steel factories.

There are abundant water resources in the west-south regions, and in the Panzhihua-Xichang area has a large storage capacity of iron
mines and coal resources but with inconvenient transportation. The key backbone enterprises existed shall improve their equipments
level, adjust the variety structure, develop high-value-added products, determine the production capacity according to the sustainable
supplying capacity of bulk ores rather than blindly pursue the increase of quantity.

As the west-north region is in short of bulk iron ores and water resources, the backbone enterprises existed shall put the focus on
satisfying the requirement of local regional economic development other than pursue the expansion of production scale, and shall
make good use of the mineral resources in neighboring countries actively.

Chapter IV Industrial Technical Policies

Article 12

In order to guarantee the industrial upgrading of the iron and steel industry, realize the sustainable development and prevent any
low-level repetitive construction, we hereby prescribe the conditions to access into the iron and steel industry on the equipment
level and the technical and economic indexes as follows, which the enterprises existed shall make efforts to reach the standard
by way of technical innovation:

The building areas for agglomeration machines shall be 180 sq meters or above; the height of coke-oven carbonization rooms shall be
6 meters or above; the available volume of blast furnaces shall be 1,000 cubic meters or above; the nominal volume of converters
shall be 120 tons or above; and the nominal volume of electronic furnaces shall be 70 tons or above.

For the iron and steel projects as constructed in deep water harbors along the coast, the available volume of blast furnaces shall
be more than 3, 000 cubic meters; the nominal volume of converters shall be more than 200 tons, and the production scale of steel
shall be 8 million tons or above. The technical and economic indexes for iron and steel associated enterprises shall be: the comprehensive
energy consumption for each ton of steel in the procedure of blast furnaces shall be less than 0.7 ton of standard coal and that
in the procedure of electronic furnaces shall be less than 0.4 ton of standard coal; the new water consumption for each ton of steel
in the procedure of blast furnaces shall be less than 6 tons, and that in the procedure of electronic furnaces shall be less than
3 tons, the recycling utilization rate of water shall be 95% or above. The other iron and steel enterprises shall reach the average
level of key large/medium-sized iron and steel enterprises in respect of energy consumption in working procedures.

For any iron and steel construction project, we should economize our use of land and strictly carry out the administration of land.
The relevant departments shall make efforts to accomplish the revision work of land use indexes for iron and steel factories and
the standard of building coefficient.

Article 13

All production enterprises shall reach the local and state standards of waste discharge. The controlling index of total discharging
volume of major wastes from construction projects shall be strictly implemented according to the provisions of the Appraisal Report
Document (Form) of Environmental Influence as approved. Any enterprise, which exceeds the scope as prescribed by the waste discharging
index and the total volume as verified, shall be stopped from carrying out its operations.

For those projects that are newly initiated, the blast furnaces shall be synchronously equipped with pressure recovery turbine (TRT)
devices and coal injection devices; the coke oven shall be synchronously equipped with coke dry quenching devices and with filtering
devices as well as gas desulfurizing devices for the coke ovens. The coke ovens, blast furnaces and converters shall be synchronously
equipped with gas recovering devices. The electronic furnaces shall be equipped with smoke and dust recovering devices.

Enterprises shall, according to the requirements of developing a recycling economy, establish a comprehensive treatment system for
waste water and residue, adopt the technologies of drying quenching cokes, technologies for the recovery and utilization of gas from
coke ovens, blast furnaces and converters, power generation by jointly using gas and steam, TRT of blaster furnaces, evaporative
cooling, technologies for the recovery and re-utilization of such energy and resources as smoke, dust and waste residue, so as to
elevate the utilization efficiency of energy and the recovery and utilization rate of resources and to improve the environment.

Article 14

We should accelerate the cultivation of independent innovation capacity of the iron and steel industry, support enterprises to establish
the institutions for development and scientific research of products and techniques. We should enhance the capacity of development
and innovation, develop the working techniques, equipment techniques and products with the independent intellectual property right.
We should support enterprises to follow up, research, develop and adopt such frontier techniques in the production procedures of
iron and steel as continuous strip casting and melting reduction and etc..

Article 15

Enterprises shall actively adopt such advanced techniques and equipment as feeding concentrated materials into furnaces, oxygen-enriched
coal spraying, iron pretreatment, large-sized blaster furnaces, converters and electronic furnaces with superpower, ex-furnace refining,
continuous casting, continuous rolling and controlling rolling and controlling cooling.

Article 16

We should support and organize the implementation of equipment localization of the iron and steel industry, enhance the research and
development as well as designing and manufacture levels of major technical equipment of our iron and steel industry. For a major
iron and steel project that is based on home-made equipment as newly developed, the state shall grant policy supports in such aspects
as taxation, interest subsidy and scientific research funds.

Article 17

We should accelerate the elimination and prohibition of such backward working techniques and equipment as newly-built sintering with
indigenous method, indigenous carbonization (including improved carbonization), melting iron and refining steel, hot agglomeration
mines, blaster furnaces with a volume of 300 cubic meters or below (except for the special factories of iron pipe casting), converters
with the nominal capacity of 20 tons or below, electronic furnaces with the nominal capacity of 20 tons or below (except for the
mechanic casting or the production of high-alloy steel), tight rolling sheet mills, roughing mill for ordinary steel, blank medium-sized
rolling mills, three-roller Lotus medium plate rolling mills, double due wire mills, row small-sized millers, hot narrow strip rolling
mills, assembling units of hot rolling seamless pipes with diameter below 76 centimeters and intermediate frequency furnaces.

Enterprises in the iron and steel industry shall strictly abide the Catalog of Repetitive Construction as Prohibited in the Field
of Industry and Commerce and the Catalog of Backward Production Capacity, Working Techniques and Products to Be Eliminated as amended
by the state at the opportune moment, or eliminate backward working techniques, products and techniques according to the requirements
of the provisions on environmental protection.

Article 18

The policies of imported technologies and equipment: enterprises are encouraged to use home-made equipment and technologies and reduce
export. For any equipment or technology that cannot be produced domestically or fails to meet the demand and, thus, must be introduced
from abroad, the introduced equipment or technology shall be advanced and practical. For the equipment in large amount and big scope,
we should organize and implement the localized production thereof from now on.

Enterprises are prohibited from adopting any second-handed backward production equipment of iron and steel from home or abroad that
has been eliminated.

Article 19

Enterprises of special steel shall make an effort to develop towards conglomerated and specialized direction. They are encouraged
to adopt the techniques with short workflow that use waste steel as raw materials. Enterprises of special steel are discouraged to
adopt any technictechnical procedure of small blast furnace that use of s electronic furnaces with high consumption and serious
pollution. Enterprises of special steel shall be encouraged to carry out research, develop and produce special steel for the use
of the military industry, bearing, gears, models, heat resistance, cold resistance and corrosion resistance, etc. so as to enhance
the product quality and technical level.

Chapter V Adjustment of the Organizational Structure of Enterprises

Article 20

The iron and steel enterprises are encouraged to develop into groups and carry out strategic reorganization by way of alliance between
mighty enterprises, merger and reorganization, mutual shareholding, etc. so as to reduce the number of iron and steel production
enterprises and realize the organization structural adjustment, optimization and industrial upgrading of the iron and steel industry.

Where possible, large-scale enterprise groups are supported and encouraged to carry out trans-regional alliance and reorganization.
By 2010, the oversized enterprise group possessing international competitive capacities shall be formed by two enterprise groups
with the production capacity of 300 million tons and several particularly large enterprise groups with the production capacity of
several hundred million tons.

All the large iron and steel enterprises shall carry out stock reforms and are supported to get listed in the stock market. All kinds
of social capital including private capital are encouraged to participate in the reorganization of the iron and steel enterprises
as existed by means of stock purchase and merger and acquisition so as to promote the adjustment of capital structure and mechanism
innovation thereof.

Article 21

The state supports large iron and steel associated enterprises with good conditions and that have been formed by alliance and reorganization
to expand the production scale in a proper manner by way of structural adjustment and industrial upgrading and to enhance the production
intensification. Such enterprises will be given policy support in such aspects as segmentation of the major and minor, resettlement
of personnel and social security.

Chapter VI Investment Management

Article 22

The state shall carry out the necessary administration on the economic activities by investors of all kinds of economic types in
the domestic iron and steel industry and the investment activities by domestic enterprises in the iron and steel field outside the
territory. The investment in any iron and steel project shall be subject to the examination and approval or verification of the NDRC
according to the relevant provisions.

Article 23

For the construction of such projects as iron smelting, steel smelting and steel rolling, the proportion of self-owned capital of
enterprises shall reach 40% or above.

To start an iron and steel project, an enterprise shall, apart from meeting the requirements of such laws and regulations of the state
on environmental protection and safety production, have comparably strong capital strength, advanced technologies and management
capability as well as stable, reliable external conditions such as perfect marketing networks, water resources, raw materials of
bulk ores, coal, and power energy, and transportation, etc. which shall have been basically carried into effect.

Where an iron and steel enterprise invests in the construction of any cross-region iron and steel associated enterprise project, if
it is an enterprise of common steel, the steel production thereof in the previous year shall reach 5 million tons or more; thief
it is an enterprise of special steel, the production thereof shall reach 0.5 million or more. Where a non-iron-and-steel enterprise
invests in any iron and steel associated enterprise project, it shall have the capital strength and comparatively high public creditworthiness.
An asset assessment shall be carried out to the enterprise’s registered capital. the bank concerned shall provide a credit certification,
and the relevant accounting firm shall provide a performance report. Where possible, the form of bidding invitation shall be adopted
to choose the project owner.

Any iron and steel enterprise outside the territory that invests in the iron and steel industry of China shall have intellectual property
right and techniques of its own and its production of common steel in the previous year shall reach 10 million tons or above or the
production of special high-alloy steel shall reach 1 million tons. An non-iron-and-steel enterprise outside the territory that invests
in the iron and steel industry of China shall have a strong capital strength and comparatively high public creditworthiness, and
shall provide an asset assessment report as issued by a bank and an enterprise performance certification as issued by an accounting
firm. Where an enterprise outside the territory invests in the domestic iron and steel industry, it shall implement the investment
in combination with the reform and relocation of domestic iron and steel enterprises and shall not establish any new business site.
For any foreign investment in the iron and steel industry of China, foreign investors are not allowed to have a controlling share,
as is the general principle.

Article 24

For any project that fails to comply with the development policies for the iron and steel industry and hasn’t been subject to examination
and approval or where the examination and approval thereof fails to comply with the relevant provisions, the department of state
land and resources shall not handle the formalities for land use and the department of industry and commerce shall not accepts its
registration, the administrative department of commerce shall not approve its contract and constitution, the financial institution
shall not provide any loan or give credit support in any other form, the customs shall not handle the formalities for tax refund
of imported equipment, the department of quality supervision shall not issue any production permit, and the department of environmental
protection shall not examine or approve the appraisal document of environmental influence on the project or issue any license of
waste discharge.

Article 25

To grant mid- and long-term loans for the fixed-asset investment to the projects of iron smelting, steel smelting and steel rolling,
a financial institution shall comply with the development policies for the iron and steel industry, and strengthen their risk management.
For any fix-asset investment loan granted to any project of iron smelting, steel smelting and steel rolling with newly increased
production capacity, the relevant reply, verification or archival documents as issued by the NDRC shall be required to be provided.

Article 26

Where an enterprise makes an initial public offering of stocks or seeks any financing in the securities market, wants to invest the
raised funds to the iron and steel industry it shall comply with the development policies for the iron and steel industry and
provide the investment document for the raised funds as issued by the NDRC to the administrative department of securities.

Article 27

The state encourages the enterprises that engage in the production of iron and steel and equipment manufacture to export the technologies
and set equipment of metallurgy with domestic advantages by way of integrating processing with trade or integrating techniques with
trade and shall grant supports in aspect of export credit, etc..

Chapter VII Policy of Raw Materials

Article 28

The mineral resources shall belong to the state. The state encourages large-scale iron and steel enterprises to carry out the exploration
and development of such resources as iron mines. For the exploration of mines, a mining license shall be legally obtained. A mining
construction project of iron resources with a storage capacity of 50 million tons or more shall be subject to the verification or
examination and approval of the NDRC. At the same time, we should do a good job in such environmental protection work as the planning
of mines, safety production and re-claiming of land, conservation of water and top soil, and the filing of underground coal mines.
Any unauthorized collection or unrestrained digging is prohibited. As for any unauthorized collection or unrestrained digging that
hasn’t gone through the legal procedures of examination and approval, the department of state land and resources shall revoke the
mining right and stop the illegal mining.

Article 29

According to the practical situation that China has few rich mines but many poor mines, the state encourages enterprises to develop
the selection technologies of low-grade mines and make full use of domestic poor mineral resources. The department of state land
and resources shall intensify the exploration of mineral resources, protect mineral resources and give necessary punishments to and
carry out rectification on any unauthorized collection or unrestrained digging.

Article 30

We should, according to the principles of making their advantages complement each other and achieving the win-win situation, intensify
the international cooperation regarding overseas mineral resources. We should support those large backbone enterprise groups to establish
overseas production and supplying bases of iron mines, chrome ore mines, manganese mines, nickel ore mines, waste steel and coking
coal, etc. by way of setting up solely-funded enterprises, joint-equity enterprises, contractual enterprises and purchase of mineral
resources. For such important raw materials and auxiliary materials as bulk ores and coke as needed by the enterprises in coastal
areas, the state encourages them to solve it by way of overseas market.

The iron and steel industrial association shall do a good job in the industrial self-discipline and coordination and stabilize the
raw material market both at home and abroad. Where two or more domestic enterprises are engaged in vicious competition for overseas
resources, the state may adopt administrative coordination to hold alliance or select one of them to make investment so as to avoid
vicious competition. The relevant enterprises shall be subject to the administrative coordination of the state.

The export of such preliminarily processed products as coke, iron alloy, pig iron, waste steel and steel base (ingot) with high energy-consumption
and serious pollution shall be restricted and the tax refund for export of these products shall be decreased or canceled.

Chapter VIII Economical Use of Steel

Article 31

The whole society shall set up the consciousness of using steel in an economical and scientific manner. It is encouraged to use renewable
materials as a substitution and to recover wasted steel so as to reduce the quantity of steel as used.

Article 32

The departments of construction shall organize the revision and improvement of the designing norms and standards for the use of construction
steel so as to reduce the coefficient of steel use under the precondition of ensuring safety. The departments of design shall, according
to the designing norms and standards, carry out their designs and incorporate the economical and thrifty products as developed and
researched into the standardized design in a timely manner.

Article 33

It is encouraged to research, develop and use new materials of good performance, low costs and low consumption to substitute steel.

Article 34

The iron and steel enterprises are encouraged to produce high-strength steel and corrosion resisting steel, elevate the strength and
service term of steel and lower the quantity of steel as used.

We should lower the steel consumption by means of popularizing such steel varieties as hot rolling strip reinforcing bar at or above
Grade III400mpa, the high-strength steel plates for all kinds of purposes, and h-steel, etc.

We should elevate the corrosion resistance and service term of steel by means of applying the oil well pipes and pipeline steel plates
capable of resisting the corrosion of hydrothion and carbon dioxide, steel plates and structural steel capable of resisting the corrosion
of atmosphere, and fire-r

MINISTRY OF COMMERCE CIRCULAR ON COMMERCIAL PRODUCTS EXPORT QUOTA LICENCE AMOUNT OF FOREIGN FUNDED ENTERPRISES IN 2005

Ministry of Commerce

Ministry of Commerce Circular on Commercial Products Export Quota Licence Amount of Foreign Funded Enterprises in 2005

ShangZiHan [2004] No.202

Competent commercial administrations and foreign investments committees (offices) of all provinces, autonomous regions and municipalities:

In accordance with regulations of Foreign Funded Enterprises Quota Licence Management, Commercial Products Export Quota Licence Amount
of Foreign Funded Enterprises Quota Licence Management in 2005 is hereby distributed to you, and this is released by Foreign Funded
Enterprises Import and Export Management System network simultaneously. Export quota on Coke shall be announced later after checking
and rectifying the enterprises according to relevant regulations. Please carefully organize and implement the task of the commercial
products export quota of local foreign funded enterprises, meanwhile, offer feedback to Department of Foreign Investment Administration
of Ministry of Commerce.

Appendix: Commercial Products Export Quota Licence Amount of Foreign Funded Enterprises Quota Licence Management in 2005(omitted)

Ministry of Commerce
2005-01-07

MEASURES FOR THE ADMINISTRATION OF INSURANCE CLAUSES AND INSURANCE RATES OF PROPERTY INSURANCE COMPANIES

China Insurance Regulatory Commission

Order of China Insurance Regulatory Commission

No. 4

The Measures for the Administration of Insurance Clauses and Insurance Rates of Property Insurance Companies, which were adopted upon
deliberation at the chairman’s working meeting of China Insurance Regulatory Commission on November 3, 2005, are hereby promulgated
and shall go into effect as of January 1, 2006.

Chairman of China Insurance Regulatory Commission Wu Dingfu

November 10, 2005

Measures for the Administration of Insurance Clauses and Insurance Rates of Property Insurance Companies

Chapter I General Provisions

Article 1

With a view to improving and strengthening the administration of insurance clauses and insurance rates of property insurance companies,
and encouraging property insurance companies to make innovations, the present Measures are formulated in accordance with the Insurance
Law of the People’s Republic of China.

Article 2

For the purposes of the present Measures, the term “insurance company” shall refer to a property insurance company that is established
upon the approval of the insurance regulatory institution and is lawfully registered.For the purposes of the present Measures, the
term “branch of an insurance company” shall refer to a branch company directly managed by a property insurance company.For the purposes
of the present Measures, the term “Insurance institutions” shall include the insurance companies and the branches thereof as referred
to in the two preceding paragraphs.

Article 3

China Insurance Regulatory Commission (hereinafter referred to as CIRC) shall regulate the insurance clauses and insurance rates of
insurance institutions according to law.

The local offices of CIRC (hereinafter referred to as the local offices) shall exercise their powers within the scope authorized by
CIRC.

Article 4

An insurance institution shall submit its insurance clauses and insurance rates in accordance with the present Measures to CIRC or
the local office for examination and approval or for record keeping.

Article 5

The regulation of insurance clauses and insurance rates shall be based on the principles of maintaining public interests and preventing
unfair competition.

Article 6

The insurance clauses and insurance rates drafted by an insurance institution shall satisfy the following requirements:

(1)

The text thereof is clear in structure, accurate in wording, precise in expression, and easy to understand;

(2)

Complete in elements, being fair and not likely to infringe upon the legitimate rights and interests of the insured or damage public
interests;

(3)

Conforming to laws, administrative regulations and relevant provisions of CIRC;

(4)

The insurance rates are rated in a reasonable way, and not likely to endanger the insurance company’s solvency or impede fair market
competition; and

(5)

Other requirements as prescribed by CIRC.

Article 7

An insurance company that has drafted insurance clauses and insurance rates shall strengthen their management and guard against risks.

An insurance company shall actively advance the popularization and standardization of its insurance clauses and insurance rates.

Chapter II Examination and Approval

Article 8

An insurance company shall submit to CIRC the insurance clauses and insurance rates of the following insurance products for examination
and approval:

(1)

The insurance products which is mandatory under the law; and

(2)

Other insurance products which CIRC believes to involve public interests.

CIRC shall lawfully determine the scope of examining and approving insurance products, and may make adjustments according to the actual
situation.

Article 9

An insurance company shall submit the following materials when applying for examination and approval of the insurance clauses and
insurance rates:

(1)

The application documents;

(2)

The approval form in duplicate;

(3)

A text of the insurance clauses and insurance rates;

(4)

The explanatory materials on the insurance clauses and insurance rates, including the main features of the insurance clauses and insurance
rates, and the analysis of market risks and operational risks;

(5)

The insurance rate actuarial report signed by the responsible actuary, which includes the actuarial hypothesis, methods, formulas
and estimation process;

(6)

Responsible actuary’s statement;

(7)

Legally responsible person’s statement;

(8)

Electronic versions of all the submitted materials; and

(9)

Other materials as prescribed by CIRC.

Article 10

Where an insurance company plans to amend the approved insurance clauses or insurance rates, it shall submit the amended ones in accordance
with the present Measures for examination and approval.

Where an insurance company reports the amended insurance clauses or insurance rates, it shall submit the reasons for the amendment
and a comparative explanation on the original contents and the amended ones, in addition to the materials as prescribed in Article
9 of the present Measures.

Article 11

A branch of an insurance company may, within the scope as prescribed by CIRC, adjust the insurance rates that has been reported to
CIRC by its parent company and approved by CIRC, provided that it gets the consent of the parent company before reporting the said
insurance rates to the local office for approval.

Where a branch of an insurance company adjusts in excess of the scope as prescribed by CIRC the insurance rates that has been reported
to CIRC by its parent company and approved by CIRC, the adjustment shall be reported by the parent company to CIRC for examination
and approval.

Article 12

Where a branch of an insurance company report to the local office the insurance rates as prescribed in Paragraph 1 of the preceding
article for examination and approval, it shall submit the formal documents approved by its parent company, in addition to the materials
as prescribed in Article 9 of the present Measures.

Article 13

An insurance institution’s insurance clauses and insurance rates which are subject to examination and approval may not be put into
business operation until they have been examined and approved by CIRC or the competent local office.

Chapter III Record Keeping

Article 14

In case an insurance institution drafts insurance clauses and insurance rates for the insurance products other than those as prescribed
in Article 8 of the present Measures, it shall, within 10 working days after putting them into business operation and use, report
them to CIRC or the competent local office for the record.

Article 15

An insurance company shall report to CIRC its insurance clauses and insurance rates for the record, and submit the following materials
for this purpose:

(1)

The record keeping form in duplicate;

(2)

The text of the insurance clauses and insurance rates;

(3)

Legally responsible person’s statement;

(4)

Responsible actuary’s statement;

(5)

Electronic versions of all the submitted materials; and

(6)

Other materials as prescribed by CIRC.

The branch of a foreign property insurance company shall submit its insurance clauses and insurance rates to the local office for
the record.

Article 16

A branch of an insurance company may draft insurance clauses and insurance rates for the insurance products other than those as prescribed
in Article 8 of the present Measures, or amend the insurance clauses and insurance rates which have been reported by its parent
company for the record, but it must get the consent of the parent company and report the amended ones to the local office for the
record.

Article 17

The branch of an insurance company shall, when reporting the insurance clauses and insurance rates to the local office for the record,
submit the formal documents approved by its parent company in addition to the materials as prescribed in Article 15 .

Article 18

CIRC or the local office shall, within 20 working days as of the date of receipt of the materials reported for the record, deal with
the matter in light of the following circumstances:

(1)

If the materials reported for the record are incomplete, it shall notify the insurance institution of the necessary materials to be
supplemented within 10 working days;

(2)

If the materials reported for the record are complete or the insurance institution has supplemented all the necessary materials, CIRC
or the local office shall number the record keeping form with its seal affix thereon. One copy of the record keeping form shall be
kept in the archives, and the other copy shall be returned to the insurance institution.

Chapter IV Administration of Multiple Line Insurance Clauses and Insurance Rates

Article 19

An insurance institution may operate and use the approved or archived insurance clauses and insurance rates on a multiple line basis,
and need not submit them for examination and approval or for the record.

Where an insurance institution put multiple line insurance clauses and insurance rates, into operation and makes amendments to the
approved or archived insurance clauses and insurance rates, it shall re-submit them in accordance with the present Measures for examination
and approval or for the record.

Where an insurance institution reports the multiple line insurance clauses and insurance rates for examination and approval or for
the record, it shall, in addition to submitting the materials prescribed in the present Measures, report the names of the multiple
line insurance clauses and insurance rates, and the specimens of the insurance policies.

Article 20

An insurance institution shall, if operating and using multiple line insurance clauses and insurance rates, separately list the insurance
premiums, the amount insured or the limit of liability corresponding to each insurance clause.

Chapter V Legally Responsible Person and Responsible Actuaries

Article 21

An insurance company shall appoint a legally responsible person and a responsible actuary to respectively take charge of the legal
and actuarial affairs concerning insurance clauses and insurance rates.

An insurance company shall provide the legally responsible person and the responsible actuary with information necessary for them
to perform their work duties, and shall fully respect the legally responsible person’s and the responsible actuary’s professional
opinions.

Article 22

The legally responsible person and responsible actuary appointed by an insurance company shall be subject to ratification by CIRC.
If the legally responsible person or the responsible actuary is not ratified, CIRC or its local office shall not recognize the statement
issued by him or any other relevant report signed thereby.

Where an insurance company rescinds the employment or entrustment relationship with the legally responsible person or the responsible
actuary, the qualification of the legally responsible person or the responsible actuary shall be automatically invalidated.

Article 23

The legally responsible person as appointed by an insurance company shall satisfy the following requirements:

(1)

Having a domicile in China;

(2)

Having received the undergraduate education or above in law or having a Lawyer’s Qualification Certificate or a Legal Profession Qualification
Certificate;

(3)

Having the experiences in practicing domestic insurance or law for no less than three years;

(4)

Having no record of being imposed administrative sanction due to illegal practice within the past two years;

(5)

Having no record of criminal penalty; and;

(6)

Other conditions as prescribed by CIRC.

Article 24

Where an insurance company applies for ratification of the legally responsible person, it shall submit to CIRC the following materials:

(1)

The application form for verification of the qualification;

(2)

Photocopies of the identity certificate and domicile attestation of the candidate;

(3)

Photocopies of the educational certificate and professional qualification certificate of the candidate; and

(4)

Other materials as prescribed by CIRC.

Article 25

The conditions which the responsible actuary of an insurance company ought to meet, and the materials which an insurance company ought
to submit to CIRC when applying for ratification of the responsible actuary shall be separately formulated by CIRC.

Article 26

The legally responsible person shall be responsible for issuing the statement on legal affairs, and assume the following responsibilities
for the insurance clauses:

(1)

Ensuring that the insurance clauses comply with the Insurance Law of the People’s Republic of China, other laws and administrative
regulations, and the relevant provisions of CIRC;

(2)

Ensuring that the insurance clauses will not damage public interests or infringe upon the legitimate rights and interests of the policy
holders, the insured or the beneficiaries;

(3)

Ensuring that the elements of the contract are complete, the wording is accurate, the language is intelligible, and the expression
is precise; and

(4)

Other responsibilities as prescribed by CIRC.

Article 27

The responsible actuary shall be responsible for signing the actuarial report and issuing the responsible actuary’s statement,, and
shall assume the following responsibilities:

(1)

Ensuring that the contents of the actuarial report are complete;

(2)

Ensuring that the actuarial hypothesis and the actuarial method conform to the general actuarial principle and the relevant provisions
of the CIRC;

(3)

Ensuring that the interest estimation method for the products that have interest demonstration conform to the general actuarial principle
and the relevant provisions of the CIRC;

(4)

Ensuring that the insurance rates be rated in a reasonable way, and the result satisfy the principles of adequacy, suitability and
fairness; and

(5)

Other responsibilities in actuarial respect as prescribed by the CIRC.

Chapter VI Regulation

Article 28

Where the approved or archived insurance clauses and insurance rates need to be amended, the insurance institution shall re-submit
them for examination and approval or for the record in accordance with the present Measures.

Where a branch of an insurance company uses the parent company’s insurance clauses and insurance rates that have been approved or
archived by CIRC, it need not submit them for examination and approval or for the record.

Article 29

Where an insurance institution uses an insurance agreement to accept insurance, it shall submit the said agreement for examination
and approval or for the record in accordance with the relevant provisions of the present Measures.

Article 30

Where an insurance company dissolves the employment or entrustment relationship with the legally responsible person or the responsible
actuary, it shall report to CIRC in writing within 10 working days from the day when the employment or entrustment relationship is
dissolved,.

Article 31

Where an insurance institution’s archived insurance clauses or insurance rates are found in violation of Article 6 of the present
Measures, the insurance institution shall be ordered by CIRC or the local office to make corrections or to stop operating or using
them.

Chapter VII Legal Liabilities

Article 32

Where an insurance institution fails to submit for examination and approval, as required, the insurance clauses and insurance rates
of an insurance product which ought to be submitted for examination and approval, it shall be ordered by CIRC or the local office
to make corrections, and be imposed a fine of not less than 50,000 Yuan but not more than 300,000 Yuan; if the circumstances are
serious, CIRC or the local office may restrict the insurance institution’s business scope, order it to stop accepting new business,
or revoke its insurance business license.

Article 33

Where an insurance institution commits any of the following acts, it shall be ordered by CIRC or the local office to make corrections,
and shall, if failing to make corrections within a time limit, be imposed a fine of not less than 10,000 Yuan but not more than 100,000
Yuan:

(1)

It fails to submit for the record, as required, the insurance clauses and insurance rates of an insurance product which ought to be
put on records;

(2)

It fails to submit the relevant reports, statements, documents or information as required.

Article 34

Where an insurance institution intentionally conceals relevant facts, provides false information, or refuses to provide truthful information
when submitting the insurance clauses and insurance rates for examination and approval or for the record, or when submitting for
ratification the information of the legally responsible person or the responsible actuary, it shall be ordered by CIRC or the local
office to make corrections, and be imposed a fine of not less than 100,000 Yuan but not more than 500,000 Yuan; if the circumstances
are serious, CIRC or the local office may restrict the said institution’s business scope, order it to stop accepting new business,
or revoke its insurance business license; if a crime is constituted, it shall be investigated for criminal liabilities according
to law.

Article 35

The senior manager, legally responsible person or responsible actuary of an insurance institution who is held directly liable for
any of the following acts, or other person held directly liable, shall be admonished by CIRC or the local office in light of the
actual situation, be ordered to be dismissed or replaced, and be imposed a fine of not less than 20,000 Yuan but not more than 100,000
Yuan; if a crime is constituted, he shall be investigated for criminal liabilities according to law:

(1)

He fails to submit for examination and approval, as required, the insurance clauses and insurance rates of an insurance product which
ought to be submitted for examination and approval;

(2)

He fails to submit for the record, as required, the insurance clauses and insurance rates of an insurance product which ought to be
put on records;

(3)

He fails to submit the relevant reports, statements, documents or information as required;

(4)

He intentionally conceals relevant facts, provides false information, or refuses to provide truthful information when submitting the
insurance clauses and insurance rates for examination and approval or for the record, or when submitting for ratification the information
of the legally responsible person or the responsible actuary.

Article 36

Where an insurance institution’s archived insurance clauses or insurance rates are found in violation of Article 6 of the present
Measures, and the insurance institution fails to make corrections within a time limit or to stop operating or using them after being
ordered by CIRC or the local office to do so, the insurance institution shall be imposed a fine of not less than 100,000 Yuan but
not more than 500,000 Yuan; if the circumstances are serious, CIRC or the local office may restrict the said institution’s business
scope, order it to stop accepting new business, or revoke its permit for operating insurance business; any of the insurance institution’s
senior managers held directly liable and other persons held directly liable shall be admonished by CIRC or the local office in light
of the actual situation, and be imposed a fine of not less than 20,000 Yuan but not more than 100,000 Yuan.

Article 37

Where a legally responsible person violates the provisions of Article 26 , or a responsible actuary violates the provisions of Article
27 , he shall be ordered by the CIRC to make corrections and be required to submit a written self-criticism; if he violates the abovementioned
provisions for twice within two years, he may be admonished by CIRC in light of the actual situation, and be impose a fine of not
less than 5000 Yuan; if he violates the abovementioned provisions for three times within two years, the insurance institution concerned
shall be ordered by CIRC to dismiss him from the position or to replace him, and shall not ratify the qualification for the legally
responsible person or the responsible actuary to him within 2 years as of finding his violation of the provisions.

Chapter VIII Supplementary Provisions

Article 38

CIRC and its local offices shall, in accordance with the procedures and time limit as prescribed in the Administrative Licensing Law
of the People’s Republic of China and the Measures of China Insurance Regulatory Commission for the Implementation of Administrative
Licensing”, accept, examine and make decisions on the applications filed by insurance institutions for administrative license on
insurance clauses and insurance rates, the legally responsible person and the responsible actuary.

Article 39

The insurance clauses and insurance rates which were approved or archived prior to the implementation of the present Measures may
continue to be used.Where the insurance institution intends to modify the insurance clauses and insurance rates as prescribed in
the preceding paragraph, it shall re-submit them in accordance with the present Measures for examination and approval or for the
record.

Article 40

The qualifications of the legally responsible persons and those of the responsible actuaries which were examined and recognized by
CIRC prior to the implementation of the present Measures, shall continue to be effective.

Article 41

The administration of insurance clauses and insurance rates of the branches of foreign property insurance companies shall be governed
by the provisions of the present Measures applicable to parent companies of property insurance companies.

The administration of policy-related export credit insurance clauses and insurance rates shall be governed by other relevant provisions
of the state.

Article 42

The branches of property insurance companies established in China by insurance companies from Hong Kong, Macao or Taiwan shall be
administered by making reference to the branches of foreign property insurance companies.

Article 43

The power and responsibility to interpret the present Measures shall remain with CIRC.

Article 44

The present Measures shall go into effect as of January 1, 2006. In case any of the relevant provisions promulgated by CIRC prior
to the said date conflicts with the present Measures, the present Measures shall prevail; while for matters that are not covered
in the present Measures, the previous provisions shall apply.

The Interim Provisions on the Administration of Property Insurance Clauses and Rates (Bao Jian Fa [2000] No. 149 ), the Circular on
Record Keeping Administration of Property Insurance Clauses and Rates (Bao Jian Fa[2001] No. 120), the Circular on the Issue of Extending
the Opening Area of Property Insurance Clauses (Bao Jian Fa [2002] No. 93), and the Circular on Relevant Issues on Adopting the Afterward
Record Keeping System for Property Insurance Companies (Bao Jian Fa [2004] No. 34) shall be abolished simultaneously.

China Insurance Regulatory Commission
2005-11-10

REGULATION FOR THE ADMINISTRATION OF COMMERCIAL PERFORMANCES

State Council

Order of the State Council of People’s Republic of China

No. 439

The Regulation for the Administration of Commercial Performances was adopted at the 84th executive meeting of the State Council on
March 23, 2005., which is hereby promulgated and shall come into force as of September 1, 2005.

Premier Wen Jiabao

July 7, 2005

Regulation for the Administration of Commercial Performances

Chapter I General Provisions

Article 1

This Regulation is formulated for the purpose of strengthening the management of commercial performances, promoting the development
of cultural industry, flourishing the socialist art cause, meeting with the needs of cultural life of the people and promoting the
construction of socialist spiritual civilization.

Article 2

The “commercial performances” as mentioned in this Regulation refer to the art performances activities on site hold for the general
public for commercial profit purposes.

Article 3

The commercial performances shall adhere to the direction of serving the people and the socialism, give priority to the social benefits,
realize the uniform of the social and economic benefits, and enrich the cultural life of the people.

Article 4

The state encourages the artistic performance groups, creation of performers to produce and perform the excellent programs that unify
the cultural and the spirits and reflect the good national cultural tradition and are popular welcomed by people, and encourages
the performances that are gratuitously or preferentially offered to rural areas, industrial and mining enterprises, as well as the
children.

Article 5

The competent department of culture of the State Council shall be responsible for the supervision and management of the commercial
performances throughout the country. The department of public security and the administrative department of industry and commerce
of the State Council shall, according to their respective functions, be responsible for the supervision and management of the commercial
performances.

The competent departments of culture of the local people’s governments at or above the county level shall be responsible for the supervision
and management of the commercial performances within their respective administrative area. The departments of public security and
the administrative departments of industry and commerce of the local people’s governments at or above the county level shall, according
to their respective functions, be responsible for the supervision and management of commercial performances.

Chapter II Establishment of Business Subject of Commercial Performances

Article 6

For establishing a cultural and artistic performance organization, the applicant shall have full-time performers and equipment that
can meet the needs of its business of performances.

For establishing a performance brokerage institution, the applicant shall have 3 or more full-time performance brokers and fund that
can meet the needs of its business.

Article 7

For establishing a cultural and artistic performance organization , the applicant shall file an application to the competent department
of culture of the people’s government at the county level. For establishing a performance brokerage institution, the applicant shall
file an application to the competent department of culture of the people’s government of the province, autonomous region or municipality
directly under the Central Government. The competent department of culture shall make a decision within 20 days as of it accepts
the application. If it approves the application, it shall issue the applicant a commercial performance license; if it disapproves
the application, it shall notify the applicant in written form and make an explanation.

After the applicant obtains the commercial performance license, it shall, upon strength of the license, go through the registration
formalities in the administrative department of industry and commerce to get a business license.

Article 8

For establishing a business entity of commercial performance place, the applicant shall go through the registration formalities in
the administrative department of industry and commerce, get a business license, and go through the examination and approval formalities
in accordance with the relevant laws and administrative regulations on fire protection, sanitation, etc.

The business entity of commercial performance place shall, within 20 days from the day when it obtains the business license, go through
the archival filing formalities in the competent department of culture of the people’s government at the county level at the place
where it is located.

Article 9

Where a cultural and artistic performance organization or performance brokerage institution intends to change its name, domicile,
legal person or major person-in-charge, or business items of commercial performances, it shall file an application to the original
license issuing organ for changing its commercial performance license and go through the formalities for modifying the registration
in the administrative department of industry and commerce according to law.

Where a business entity of commercial performance place intends to change its name, domicile, legal person or major person-in-charge,
it shall go through the formalities for modifying the registration in the administrative department of industry and commerce and
shall, once again, go through the archival filing formalities in the original archival filing organ.

Article 10

The self-employed performers engaged in commercial performances (hereinafter referred to as the self-employed performers) and the
self-employed performance brokers engaged in the activities such as intermediary and agency for commercial performances (hereinafter
referred to as the self-employed performance brokers) shall each go through the registration formalities in the administrative department
of industry and commerce to get a business license according to law.

A self-employed performer or self-employed performance broker shall, within 20 days from the day when it obtains a business license,
go through the archival filing formalities in the local competent department of culture of the people’s government at the county
level where it lived.

Article 11

Foreign investors may, jointly with Chinese investors, establish Sino-foreign equity joint and Sino-foreign contractual performance
brokerage institutions and business entities of performance place. No any Sino-foreign equity joint, Sino-foreign contractual or
solely foreign-funded cultural and artistic performance organizations are permitted to be established, and no any solely foreign-funded
performance brokerage institution or business entity of performance place are permitted to be established.

When establishing a Sino-foreign equity joint performance brokerage institution or business entity of performance place, the investment
proportion of the Chinese party shall not be less than 51%. When establishing a Sino-foreign contractual performance brokerage institution
or business entity of performance place, the Chinese party shall have the business dominant power.

When establishing a Sino-foreign equity joint or Sino-foreign contractual performance brokerage institution or business entity of
performance place, the applicant shall, via the competent department of culture of the people’s government of the relevant province,
autonomous region or municipality directly under the Central Government, file an application to the competent department of culture
of the State Council. The competent department of culture of the people’s government of the relevant province, autonomous region
or municipality directly under the Central Government shall, within 20 days as of it receives the application, issue and submit its
examination opinions to the competent department of culture of the State Council for examination and approval. The competent department
of culture of the State Council shall make a decision within 20 days from the day when it receives the examination opinions of the
competent department of culture of the people’s government of the relevant province, autonomous region or municipality directly under
the Central Government. If it approves the application, it shall issue the applicant a commercial performance license; if it disapproves
the application, it shall notify the applicant in written form and make an explanation. After the applicant obtains the commercial
performance license, it shall go through the examination and approval formalities in accordance with the relevant laws and regulations
on foreign investment.

Article 12

The investors from Hong Kong Special Administrative Region and Macao Special Administrative Region may establish equity joint, contractual
and solely funded business entities of performance place, as well as equity joint and contractual performance brokerage institutions
in the mainland. The performance brokerage institutions of Hong Kong Special Administrative Region and Macao Special Administrative
Region may set up branches in the mainland.

The investors from Taiwan region may establish equity joint and contractual performance brokerage institutions and business entities
of performance place in the mainland. However, the investment proportion of the mainland party shall not be less than 51% and the
mainland party shall have the business dominant power. No any equity joint, contractual or solely-funded cultural and artistic performance
organization, and solely-funded performance brokerage institution or business entity of performance place are permitted to be established.

The examination and approval formalities as prescribed in this Article shall be handled in accordance with the third paragraph of
Article 11 of this Regulation.

Chapter III Norms on Commercial Performances

Article 13

A cultural and artistic performance organization or self-employed performer may hold commercial performances independently, and may
participate in any cooperative commercial performances.

The cooperative commercial performances shall be hold by a performance brokerage institution, but a business entity of performance
place may hold cooperative commercial performances at its own performance place.

A performance brokerage institution may be engaged in the activities such as intermediary, agency and brokerage for commercial performances;
a self-employed performance broker may only act as a middleman or agent for commercial performances.

Article 14

When holding the commercial performances, the applicant shall file an application to the e competent department of culture of the
people’s government at the county level at the place where the performances are held. The competent department of culture of the
people’s government at the county level shall make a decision within 3 days from the day when it accepts the application. If the
application meets the requirements as prescribed in Article 26 of this Regulation, it shall issue the applicant an approval document;
if the application does not, it shall make a decision of disapproval and shall notify the applicant in written form and make an explanation.

Article 15

With the exceptions of performance brokerage institutions, any other entity or individual shall not be permitted to hold the commercial
performances participated in by cultural and artistic performance organizations or individuals of foreign or Hong Kong or Macao
Special Administration Region or Taiwan region. . However, when a cultural and artistic performance organization holds commercial
performances by itself, it may invite cultural and artistic performance organizations and individuals of foreign, or Hong Kong or
Macao Special Administration Region or Taiwan region. to participate in the commercial performances.

When holding commercial performances with participants of cultural and artistic performance organization and individuals of foreign,
Hong Kong and Macao Special Administration Region or Taiwan region , the hosting party shall meet the following requirements:

(1)

Having the fund that can meet the relevant needs of the commercial performances;

(2)

Having 2-year or more experience of hosting commercial performances; and

(3)

Having no record of violating this Regulation within 2years prior to the to-be-hosted commercial performances.

Article 16

If the commercial performances with participants of foreign cultural and artistic performance organizations and individuals are not
held in a singing and dancing entertainment place, the hosting entity shall file an application to the competent department of culture
of the State Council; if they are held in a singing and dancing entertainment place, the hosting entity shall file an application
to the competent department of culture of the people’s government of the province, autonomous region or municipality directly under
the Central Government at the place where the commercial performances are held.

With regard to the commercial performances with participants of cultural and artistic performance organizations and individuals of
Hong Kong and Macao Special Administration Region, the hosting entity shall file an application to the competent department of culture
of the people’s government of the province, autonomous region or municipality directly under the Central Government at the place
where the commercial performances are held. With regard to the commercial performances with participants of Taiwan cultural and artistic
performance organization and individuals, the hosting entity shall file an application to the competent department of culture of
the State Council jointly with the examination and approval organ as designated by the relevant departments of the State Council.

The competent department of culture of the State Council, or the competent department of culture of the people’s government of the
province, autonomous region or municipality directly under the Central Government shall make a decision within 20 days from the
day when it accepts an application. If the application meets the requirements as specified in Article 26 of this Regulation, it
shall issue the applicant an approval document; if it does not, it shall disapprove it and shall notify the applicant in written
form and make an explanation.

Article 17

The application materials for holding commercial performances shall include the following items:

(1)

The name of the performance, hosting entity and participants of cultural and artistic performance organization and actors of the
performances;

(2)

The date, place and total number of performances; and

(3)

The programs and the relevant visual and audio materials;

When applying for holding cooperative commercial performances, the applicant shall, in addition to submitting the above-mentioned
materials, submit the performers’ written letters about their promises to participate in the performances.

Where it is necessary to change any of the items as listed in the application materials of the commercial performances, the applicant
shall, for a second time, go through formalities for examination and approval respectively in accordance with Articles 14 and 16
of this Regulation.

Article 18

When providing a performance place, the business entity of performance place shall verify the approval document obtained by the hosting
entity of performances. It shall not provide its performance place for any unapproved commercial performances.

Article 19

A business entity of performance place shall ensure that the building and facilities of the performance place conform to the national
safety standards and fire protection and safety norms, shall regularly check the status of the fire protection and safety facilities
and shall maintain and renew these facilities in time.

The business entity of performance place shall set forth a plan on security protection and a plan on fire control and emergency evacuation.

When a hosting entity of performances intends to hold commercial performances in a performance place, it shall verify the records
of the checks over fire protection and safety facilities, the security protection plan as well as the fire control and emergency
evacuation plan of the business entity of performance place, and shall sign a safety responsibility agreement with the business entity
of performance place regarding the prevention and handling of emergent safety accidents during the performances.

Article 20

When hosting commercial performances in a pubic place, the hosting entity shall go through the examination and approval formalities
in accordance with the laws, administrative regulations and provisions of the state on safety and fire prevention and shall set forth
a security protection plan as well as a fire control and emergency evacuation plan. The performance place shall be equipped with
emergency broadcasting and lighting devices, shall set up obvious marks at the safe entries and exits and shall ensure the smoothness
of the safe entries and exits. If it is necessary to put up a temporary stage or stand, the hosting entity shall comply with the
relevant national safety standards so as to ensure the safety.

Article 21

When examining the commercial performances that need to put up a temporary stage or stand, the competent department of culture shall
examine the following documents of the hosting entity:

(1)

The conformity certification for the performance place upon check and acceptance according to law;

(2)

The security protection plan and emergency evacuation plan; and

(3)

The lawfully obtained safety and fire protection approval documents;

Article 22

The audience capacity of a performance place shall be subject to the examination and approval of the public security department. The
audience area and the buffer area shall be demarcated by the public security department and the buffer area shall have a conspicuous
mark.

The hosting entity shall print, produce and sell tickets according to the number of audience approved and the audience area demarcated
by the public security department.

When checking the tickets, if the hosting entity finds that the number of audience who have entered the performance place has reached
the audience number as examined and approved by the public security department but there are still audience waiting for entering
the performance place, it shall immediately stop checking tickets and shall simultaneously report the information to the public security
department at the county level at the place where the performances are held. If it finds any audience holding tickets beyond the
audience area or false tickets, it shall refuse them to enter the performance place and shall report to the public security department
at the county level at the place where the performances are held .

Article 23

No one may carry any infectious disease pathogen, and explosive, flammable, radioactive, corrosive or any other dangerous substances,
or illegally carry any gun, ammunition or controlled tool into the spot of the commercial performances.

The business entity of performance place shall, according to the requirements of the public security department, be equipped with
security check facilities and shall conduct necessary security check over the audience entering the spot of the performance place.
If any audience refuses the security check or commits any of the forbidden acts as mentioned in the preceding paragraph, the business
entity of performance place may refuse his entering the spot of performance place.

Article 24

The hosting entity of performances shall organize persons to carry out the safety and fire prevention measures during the commercial
performances and maintain the order of the spot of commercial performances.

If the hosting entity of performances and the business entity of performance place find that the order at spot of commercial performances
is in confusion, they shall immediately take measures and simultaneously report to the public security department at the county level
at the place where the performances are held .

Article 25

A hosting entity of performances shall not hold any commercial performances in the name of government or any government department.

No commercial performances may be post_titled with words such as “China (Zhongguo)”, “Chinese (Zhonghua)”, “National (Quanguo)”, “International”
(Guoji), etc.

The advertisements of commercial performances shall be genuine and lawful, and shall not mislead or cheat the general public.

Article 26

No commercial performance may

(1)

oppose the basic principles determined by the Constitution;

(2)

endanger the unity, sovereigntyterritorial integrity and security of the state, or jeopardize the honor or interests of the state;

(3)

stir up hatred or discrimination among ethnic groups, undermine the solidarity among ethnic groups, disrespect ethnic customs or practices,
or violate the religious policies;

(4)

disrupt social order and harm social stability;

(5)

harm the social morality or the excellent national culture and tradition;

(6)

advocate pornography, cult, superstition or violence;

(7)

insult or defame others, and infringe upon others’ legitimate rights and interests;

(8)

be cruel and harmful to performers both physically and mentally;

(9)

solicit audience by making use of the physical deformities or by showing physical variation of the performers; or

(10)

commit any acts that are prohibited by any law or administrative regulation.

Article 27

Where a business entity of performance place or hosting entity of performances finds that the commercial performances fall within
any of circumstances as mentioned in Article 26 of this Regulation, it shall immediately take measures to stop it and simultaneously
report to the public security department and competent department of culture of the people’s government at the county level at the
place where the performances are held.

Article 28

Where the cultural and artistic performance organization, main performer or principal program of commercial performances is changed,
the hosting entity shall timely inform the audience and make an explanation. The audience may have the right to return their tickets.

During the course of performances, the hosting entity shall not suspend or terminate the performances and no actor may withdraw from
the performances except that the performances are unable to proceed due to any force majeure.

Article 29

No performer may cheat the audience by lip synching. No hosting entity may organize the performers to conduct lip synching. No entity
or individual may provide any conditions for lip synching.

The hosting entity of commercial performances shall assign special persons to supervise the performances so as to prevent the lip
synching acts.

Article 30

A business subject of commercial performances shall make tax payments for its incomes from commercial performances according to law.

When a hosting entity of performances pays the performers and its staff performance remuneration, it shall fulfill the tax withholding
obligation according to law.

Article 31

The income from charity and no benefit performances shall, excluding the necessary costs, be entirely given to the donee entity. No
hosting entity, participant of cultural and artistic performance organization or performer or staff member may obtain benefit from
charity and no benefit performances.

Article 32

No entity or individual may counterfeit, alter, rent, lend, buy or sell any commercial performance license, approval document or business
license. No entity or individual may counterfeit or alter any commercial performance tickets or buy in any counterfeited or altered
commercial performance tickets and sell them at a profit.

Chapter IV Supervision and Management

Article 33

The competent departments of culture may, in pursuance of the relevant provisions of the state, give subsidies to the performances
that reflect the ethnic features and national level, except that, the people’s governments and government departments at all levels
shall not financially support or sponsor commercial performances or do so in any disguised form, or use public funds to purchase
tickets of commercial performances for personal consumption.

Article 34

The competent departments of culture shall strengthen the supervision and management over commercial performances.

With regard to the commercial performances with participants of cultural and artistic performance organization and individuals of
foreign, Hong Kong and Macao Special Administration Region or Taiwan region, and the commercial performances for which a temporary
stage or stand need to be put up, the competent department of culture of the people’s government at the county level at the place
where the performances are held shall conduct an on-the-spot inspection; as to other types of commercial performances, it shall conduct
on-the-spot selective checks.

Article 35

The competent departments of culture of the people’s governments at the county level or above shall give full play to the roles of
the culture law enforcement institutions and may invite society volunteer supervisors to supervise commercial performances.

Any entity or individual may, by telephone or mobile phone short message, tip off any act in violation of this Regulation. The competent
departments of culture of the people’s government at the county level or above shall publish the tip-off telephone number and shall
ensure that the phone calls will be answered at any time.

After the competent department of culture of the people’s government at the county level or above receives the report of a society
volunteer supervisor or any tip-off from the public, it shall make records, shall immediately go to the spot to investigate and handle
it, and shall publish the handling result within 7 days after it finishes the handling.

The competent department of culture of the people’s governments at the county level or above shall commend the society volunteer supervisors
who have made outstanding contributions, and shall reward the informants whose tip-off is confirmed upon investigation.

Article 36

After the public security department approves any commercial performances in accordance with the relevant laws, administrative regulations
and provisions of the state, it shall conduct an on-the-spot check over the safety status of the spot of the commercial performances
before the performances are held. If it finds any hidden danger of safety, it shall not allow the commercial performances to start
until the hidden danger of safety is eliminated.

The public security department may conduct a necessary safety check over the audience entering the spot of the commercial performances;
if it finds any audience commits any of the acts prohibited in the first paragraph of Article 23 of this Regulation, it shall not
allow him to enter the spot of commercial performances until the hidden danger of safety is eliminated.

The public security department may organize the police force to help the hosting entity of performances to maintain the order of the
spot of commercial performances.

Article 37

The public security department shall take measures immediately to eliminate the hidden danger of safety as soon as it receives a report
that the number of audience has reached the approved number thereof and there are still people waiting for entering the performance
place, or that the spot of the commercial performances is in confusion.

Article 38

The personnel of public security department and the competent department of culture who undertake the spot management and inspection
tasks shall show their duty certificates when entering the spot of commercial performances.

Article 39

When the competent department of culture conducts supervision and inspection over commercial performances in accordance with the law,
it shall record the supervision and inspection information as well as handling results and shall keep the relevant records as files
after they are signed by the supervisors and inspectors. The general public shall be enpost_titled to consult the supervision and inspection
records.

Article 40

A competent department of culture , public security department or any other relevant department, or any of its staff members shall
not ask any hosting entity of performances or business entity of performance place for tickets of performances.

Article 41

The competent department of culture of the State Council and the competent departments of culture of all provinces, autonomous regions
and municipalities directly under the Central Government shall commend and shall adopt various measures to publicize the cultural
and artistic performance organizations and performers who have made distinctive contributions to hold performances in the rural areas,
industrial and mining enterprises, as well as to offering free and preferential performances to the children.

With regard to the programs that are proper to be staged in rural areas and industrial and mining enterprises, the competent department
of culture of the State Council may, after it obtains the permission of the copyright owners in accordance with the law, offer them
to the cultural and artistic performance organizations and performers to perform in the rural areas, and industrial and mining enterprises.

When the competent departments of culture conduct art awards appraisement, , they shall properly take into consideration the numbers
of performances held in the rural areas, and industrial and mining enterprises by the candidate cultural and artistic performance
organizations and performers.

The local people’s governments at the county level or above shall support the cultural and artistic performance organizations and
performers who conduct performances in rural areas, and industrial and mining enterprises.

Article 42

The performance associations shall, under their respective charter, formulate self-disciplinary norms, give guidance to and supervise
the business operations of their members and promote fair competition.

Chapter V Legal Liabilities

Article 43

The competent department of culture of the people’s government at the county level shall ban any of the following acts, confiscate
the performance equipment and illegal gains, and fine the violator 8 times up to 10 times of the amount of the illegal gains. If
there are no illegal gains or if the amount of illegal gains is less than 10, 000 yuan, it shall fine the violator 50, 000 yuan up
to 100, 000 yuan concurrently. If any crime is constituted, the violator shall be subject to the criminal liabilities:

(1)

Violating Article 7 , 11 or 12 of this Regulation due to illegally setting up any cultural and artistic performance organization,
performance brokerage institution or unlawfully engaging in business activity of commercial performances;

(2)

Violating Article 13 or 15 of this Regulation to engaging in business of commercial performances by exceeding the business scope;
or

(3)

Violating the provisions in the first paragraph of Article 9 of this Regulation due to failure to file an application to the original
license issuing organ for replacing the commercial performance license by a new one after changing the business items of commercial
performances.

Anyone who violates Article 8 or 10 of this Regulation due to illegally establishing any business entity of performance place or
unlawfully engaging in business of commercial

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2005

AMENDMENT TO THE CRIMINAL LAW OF THE PEOPLE’S REPUBLIC OF CHINA

DONATIONS FOR PUBLIC WELFARE LAW

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON RELEVANT ISSUES CONCERNING BROADENING THE RESERVATION OF FOREIGN EXCHANGE EARNINGS UNDER CURRENT ACCOUNT FOR DOMESTIC INSTITUTIONS

REPLY OF THE GENERAL OFFICE OF THE PEOPLE’S BANK OF CHINA ON THE MATTERS CONCERNING THE NETWORK NAME AND INTER-BANK BORROWING LIMIT OF CREDIT AGRICOLE INDOSUEZ SHANGHAI BRANCH

SUPPLEMENTARY CIRCULAR OF THE PEOPLE’S BANK OF CHINA ON RELEVANT ISSUES CONCERNING THE OPERATION OF RENMINBI BUSINESS BY MAINLAND BANKS AND HONG KONG BANKS

REGULATION OF THE PEOPLE’S REPUBLIC OF CHINA FOR THE ADMINISTRATION ON PRODUCTION LICENSE OF INDUSTRIAL PRODUCTS

MEASURES FOR THE ADMINISTRATION OF QUARANTINE AND TREATMENT OF WOOD PACKAGING FOR OUTWARD CARGOES

A CIRCULAR ABOUT QUESTIONS ARISING FROM USING THE ELECTRONIC-PAID DOCUMENT AFTER CARRYING OUT THE MEASURE OF ELECTRONIC-PAID TAXATION DELIVERED BY STATE ADMINISTRATION OF TAXATIONAND THE PEOPLE’S BANK OF CHINA

POLICIES FOR DEVELOPMENT OF IRON AND STEEL INDUSTRY

MINISTRY OF COMMERCE CIRCULAR ON COMMERCIAL PRODUCTS EXPORT QUOTA LICENCE AMOUNT OF FOREIGN FUNDED ENTERPRISES IN 2005

MEASURES FOR THE ADMINISTRATION OF INSURANCE CLAUSES AND INSURANCE RATES OF PROPERTY INSURANCE COMPANIES

REGULATION FOR THE ADMINISTRATION OF COMMERCIAL PERFORMANCES

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