2006

CIRCULAR OF THE PRESS AND PUBLICATION ADMINISTRATION AND THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON ISSUES CONCERNING THE ESTABLISHMENT AND EQUIPMENT INTRODUCTION OF CHINESE-FOREIGN EQUITY JOINT VENTURES AND CHINESE-FOREIGN CONTRACTUAL JOINT VENTURES ENGAGING IN THE DUPLICATION AND PRODUCTION OF COMPACT DISKS (CDS)

The State Press and Publication, the Ministry of Foreign Trade and Economic Cooperation

Circular of the Press and Publication Administration and the Ministry of Foreign Trade and Economic Cooperation on Issues Concerning
the Establishment and Equipment Introduction of Chinese-foreign Equity Joint Ventures and Chinese-foreign Contractual Joint Ventures
Engaging in the Duplication and Production of Compact Disks (CDs)

XinChuLian [2000] No.36

November 2, 2000

Press and Publication Bureaus, relevant audiovisual product administrations and Foreign Trade and Economic Commissions (Departments,
Bureaus) of all provinces, autonomous regions and municipalities directly under the Central Government:

On June 12, 1996, The Circular for Further Strengthening the Administration of the Duplication of Compact Disks (CDs) (ZhongXuanFa
[1996] No.7) was jointly published and distributed by the Publicity Department of the CCCPC, the Press and Publication Administration,
the State Development Planning Commission, the Ministry of Foreign Trade and Economic Cooperation, the General Administration of
Customs, the State Administration for Industry and Commerce and the National Copyright Administration. On May 19, 1997, the Circular
on the Disposal of CD Production Lines of Closed Plants and Confiscated Illegal CD Production Lines was jointly published and distributed
by the Publicity Department of the CCCPC, the Press and Publication Administration, the State Development Planning Commission, the
Ministry of Foreign Trade and Economic Cooperation, the General Administration of Customs, the State Administration for Industry
and Commerce and the National Copyright Administration. The implementation of the above-mentioned circulars has exerted positive
effects for standardizing the administration of Chinese CD duplication industry and adjusting the layout structure of the industry.

With the development of CD memory technology and increasing demand on all kinds of large-storage CDs, the CD duplication and manufacturing
industry in China is currently facing excellent opportunities. To seize the opportunities, standardize the administration and promote
the development of the CD duplication and manufacturing industry, related policies and regulations are hereby reiterated and supplemented
as follows:

1.

The CD duplication and production in this circular refer to the duplication and production of Read-only CDs and Recordable CDs, and
writing of source CDs. Read-only CDs include CD-DA, VCD, Super-VCD, CD-ROM, DVD-Audio, DVD-Video, DVD-ROM and LD etc. Recordable
CDs include CD-R, CD-RW, DVD-R, DVD-RAM and MO etc. The equipment for production and duplication of CDs in this circular include
Precise Injection Molding Machine, High-pressure Injection Molding Machine and other equipment of the same tax line.

2.

In principle, no more Chinese-foreign equity and contractual joint ventures engaging in the duplication of read-only CDs are supposed
to be established. Foreign investors coming to China to establish Chinese-foreign equity and contractual joint ventures engaging
in the duplication of read-only CDs should obtain the Business License for CD Duplication from the Press and Publication Administration
and the Approval Certificate of Foreign-invested Enterprises from the Ministry of Foreign Trade and Economic Cooperation upon examination
and approval. These joint ventures should only begin their production after registration with competent administrations of industry
and commerce.

3.

Existing Chinese-foreign equity and contractual joint ventures with a sound track record and without any violation of laws may introduce
production lines for Read-only CDs upon approval.

4.

The Chinese side of a Chinese-foreign equity or contractual joint venture engaging in the duplication and production of CDs should
hold the majority of the shares or plays a dominant role. The capital contribution by the foreign side of this type of joint venture
should be no less than 25% of the registered capital. Foreign investors are encouraged to create projects for manufacturing C D duplication
and production equipment.

This circular shall enter into force on the day of issuing.



 
The State Press and Publication, the Ministry of Foreign Trade and Economic Cooperation
2000-11-02

 







CIRCULAR OF CHINA SECURITIES REGULATORY COMMISSION ON ISSUE ON THE ENTERPRISES OF DOMESTICALLY LISTED IN FOREIGN CURRENCIES (B-SHARES) LISTING THE B-SHARES WHICH NON-LISTED DOMESTICALLY

The China Securities Regulatory Commission

Circular of China Securities Regulatory Commission on Issue on the Enterprises of Domestically Listed In Foreign Currencies (B-shares)
Listing the B-shares which Non-listed Domestically

ZhengJianGongSiZi [2000] No.140

September 1, 2000

Each enterprise of B-shares:

With a view to improving further development of B-shares market, and protecting the interests of investors, hereby notify the relating
matters on listing the B-shares which non-listed domestically of the enterprises of the domestically listed in foreign currencies
(hereinafter referred to as B-shares), as follows:

As long as it has been a Chinese-foreign equity joint venture before listing, the B-shares enterprise shall consult the original enterprise
examination and approval authorities’ opinion on the matter of the negotiation of non-listed domestically listed B-shares in foreign
currencies. After approved by the original examination and approval authorities, and it shall file its application of list the non-listed
B-shares in foreign currencies to China Securities Regulatory Commission.

Examined and approved by China Securities Regulatory Commission, foreign initiator’s share of the B-shares company can be negotiated
in the B-share market in the three years right after the found of the company; foreign non-initiator’s share can be negotiated in
the B-shares market directly.



 
The China Securities Regulatory Commission
2000-09-01

 







PRODUCT QUALITY LAW OF THE PEOPLE’S REPUBLIC OF CHINA (AMENDMENT)






The Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No. 33

The Decisions of the Standing Committee of the National People’s Congress on Amending the Product Quality Law of the People’s Republic
of China adopted at the 16th meeting of the Standing Committee of the National People’s Congress on July 8, 2000, are hereby promulgated
and shall come into force as of the day of September 1, 2000.

President of the People’s Republic of China, Jiang Zemin

July 8, 2000

Product Quality Law of the People’s Republic of China (Amendment) Contents

Chapter I General Principles

Chapter II Supervision and Control of Product Quality

Chapter III Responsibilities and Obligations of Producers and Sellers

Chapter IV Compensation for Damage

Chapter V Penalty Provisions

Chapter VI Supplementary Provisions

Chapter I General Principles

Article 1

The law has been formulated with a view to reinforcing the supervision and regulation of product quality, improving the quality of
products, clarifying the liabilities for product quality, protecting the legitimate rights and interests of consumers and safeguarding
the social and economic order.

Article 2

The law applies to all production and marketing activities within the territory of the People’s Republic of China.

Products mentioned in the law are referred to products processed and manufactured for the purpose of marketing.

This law is not applicable to construction projects. However, the construction materials, structural components and fittings and equipment
that fall within the category as provided in the previous paragraph shall be governed by this law.

Article 3

Producers and sellers shall have their own proper regulations for the management of product quality, rigorously implementing post-oriented
quality regulations, quality liabilities and relevant measures for their assessment.

Article 4

Producers and sellers are responsible for the product quality according to the provisions of the law.

Article 5

It is forbidden to forge or infringe upon quality marks such as certification marks and marks for fine quality products; it is forbidden
to forge the place of origin, forge or infringe upon the factory names, factory addresses; it is forbidden to produce or market adulterated
products or to use fake goods as genuine or sub-standard products as standard.

Article 6

The State encourages the use of scientific quality control methods and adoption of advanced science and technology by enterprises
to make their products surpass the standards set by the various trades, the State standards and even international standards in their
product quality and awards units and individuals who have made outstanding achievements in quality control and in bringing the product
quality up to the advanced international levels.

Article 7

The people’s government at all levels shall ensure the implementation of this law by incorporating the improvement of product quality
into their plans for national economy and social development, reinforcing the integrated planning and organization regarding product
quality, guiding, supervising and urging the producers and sellers to reinforce the management of product quality and improve the
quality of products, organizing relevant departments to lawfully taking measures for stopping those acts that violate this law in
the process of product production and product selling.

Article 8

The product quality supervision and administration departments of the State Council are responsible for the supervision and administration
of the quality of products of the whole country. All relevant departments of the State Council shall be responsible for the supervision
of product quality within their own functions and duties.

Local administrations for the supervision of product quality at and above the county level are responsible for the supervision of
product quality within their own administrative jurisdictions. The relevant departments of the local people’s governments at and
above the county level are responsible for the product quality within their respective functions and duties.

If there are different provisions concerning the supervision departments of product quality, such provisions shall be applied.

Article 9

The staff members of the people’s governments at all levels and other state organs may not abuse their power, neglect their duties
or misconduct to seek private interests, cover up or give loose to the acts violating this law that occurs within the locality or
within the industry, hinder or meddle with the investigation of acts violating this law that occurred in the process of the producing
or selling products.

Where any of the local people’s governments or other state organs covers up or give loose to the violations of this law that occurred
in the production or selling of products, the person who is held to be mainly responsible shall take legal liabilities.

Article 10

Any entity or individual is enpost_titled to report to the product quality supervision administrations or other relevant departments about
any of the acts violating this law.

The product quality supervision department and relevant departments shall hold all information about the reporter as confidential
and give awards to the reporter in accordance with the provisions of the province, autonomous region or municipality directly under
the Central Government.

Article 11

No entity or individual may prevent any of the qualified products produced outside of the region or trade from entering the region
or trade.

Chapter II Supervision and Control of Product Quality

Article 12

Quality of products shall pass standard examinations and no sub-standard products shall be used as standard ones.

Article 13

Industrial products which may be hazardous to the health of the people and the safety of lives and property shall conform to the State
and trade standards for ensuring the health of the human body and safety of lives and property. In absence of such State or trade
standards, the products shall conform to the minimum requirements for ensuring the health of the human body and the safety of lives
and property.

It shall be prohibited to produce or sell industrial products that do not come to the requirements and demands for physical health
and safety of body and property. The specific measures for management will be enacted by the State Council.

Article 14

The State shall institute the system for certifying quality control system of enterprises according to the quality control standards
commonly accepted internationally. Enterprises may apply voluntarily for certification of their quality control systems with the
product quality supervision and control departments under the State Council or quality certification organizations recognized by
the departments authorized by the quality supervision and control departments under the State Council. The qualified enterprises
shall be issued with the certificates for the quality control systems.

The State shall institute the system for certifying the product quality in reference to the internationally advanced product quality
standards and technical requirements. Enterprises may apply voluntarily for certification of the quality of their products with the
product quality supervision and control departments under the State Council or quality certification organizations recognized by
the departments authorized by the quality supervision and control departments under the State Council. The qualified enterprises
shall be issued with the certificates for product quality and are allowed to use quality certification marks on the products or on
the packages of their products.

Article 15

An supervision and inspection system based on random inspection is implemented by the state to test those products that may injure
physical health or the safety of body or property, those important industrial products that have a great bearing on the national
economy and those products that have been reported by consumers or relevant organizations as to be defective in quality. The samples
shall be randomly taken from the market or the products stored in the warehouse of the enterprise for sale. The supervision and inspection
shall be planned and organized by the product quality supervision administrations of the State Council. The local administrations
for product quality supervision on and above the county level may organize and supervise sample tests. Where there are different
provisions concerning the supervision and inspection, such provisions shall be applied.

The products supervised and inspected by the state administrations shall be not re-supervised and reinspected by the local administrations;
the products supervised and inspected by the administration on a higher level shall be not reinspected by that on a lower level.

Products may be tested according to the demand of supervision and random inspection. The quantity of samples for random sample test
shall not be bigger than that is reasonably needed, and no fees may be collected from the person under supervision and inspection.
The expenses for supervision and random inspection shall be covered in according to the provisions of the State Council.

Where the producer or seller refuses to accept the results of sample test, he may apply to the product quality supervision departments
on the higher level within 15 days from the day he receives the results for reexamination. The reexamination conclusion shall be
made by the product quality department that does the reexamination.

Article 16

No producer or seller may reject any supervision or inspection of product quality that is lawfully carried out.

Article 17

Where any product is found to be unqualified by any supervision and inspection that is carried out according to this law, the producer
or seller shall be ordered to make corrections within the time limit by the product quality supervision administration that carries
out the supervision and inspection. Where the producer or seller fails to make corrections within the time limit, he shall be publicized
by the product quality supervision administration of the people’s government on or above the provincial level; if the product quality
is still not qualified after reexamination, the producer or seller shall be ordered to suspend business for rectifications within
the time limit; if the product quality is still proved unqualified by reexamination after the period for rectifications, the business
license of the producer or seller shall be canceled.

If the products are proved to be seriously unqualified by sample test, penalty be given according to the provisions of Chapter Five
of this law.

Article 18

Product quality supervision administrations at and above the county level may exercise, when investigating acts violating this law
according to the evidence acquired concerning the act suspected of violating the law or according to reports, the following powers:

(1)

Conduct on-spot inspection over the site where the parties concerned are suspected of committing production or sale activities as
against the provisions of this law;

(2)

Inquire the legal representative, main leaders and other relevant personnel about information relevant to the suspected activities
of production and sale violating this law;

(3)

Read and copy contracts, invoices, account books and other materials connected with the parties concerned;

(4)

Close down or detain any product that they have good reason to deem as not meeting the national standards or trade standards for ensuring
physical health and the safety of body and property, any products that have other serious defects and raw subsidiary materials, wrappings,
tools directly used for production or sale of products.

The administrations at and above the county level may, when investigating activities suspected of violating this law within the functions
as stipulated by the State Council, exercise the powers as mentioned in the previous paragraph.

Article 19

Product quality testing organizations shall have the corresponding testing facilities and capabilities and shall conduct product quality
testing only after the examination and approval of the quality supervision and control departments under the people’s governments
at and above the provincial level or of the organizations they have authorized. If there are separate provisions by other laws or
administrative decrees, the relevant laws or administrative decrees shall apply.

Article 20

Social intermediary institutions engaging in the test and certification of product quality shall be established in conformity with
the law and shall not be subordinate to or have any other interest with any administrative organs or state organs.

Article 21

Product quality testing and certification institutions shall make objective and fair conclusions or certifications in accordance with
the law and relevant criteria.

Product quality certification institutions shall, in accordance with the provisions of the state, make track-up tests about the products
that have been allowed to use certification marks. If any product fails to meet the certification requirements, the institutions
shall order the producers or sellers to make mend up; if the circumstances are serious, the institutions shall repeal the qualifications
for using certification marks

Article 22

Consumers have the right to inquire about the quality problems of products with producers or sellers of the products, to complain
about product quality to the product quality supervision administrations or the administrations for industry and commerce or other
relevant departments. The relevant departments accepting complaints shall be responsible for handling the matters.

Article 23

Social organizations for protecting the rights and interests of consumers may propose to relevant departments to handle matters concerning
the complaints by consumers about product quality and give aid to consumers to sue producers whose products have caused damages.

Article 24

The product quality supervision administrations under the State Council and the people’s governments of the provinces, autonomous
regions and municipalities directly under the Central Government shall publicize regularly the quality situation of the products
that they have tested on the random basis.

Article 25

Product quality supervision administrations and other state organs as well as product quality testing institutions may not make recommendations
of the producers’ products, nor may they engage in the product management by means of supervising the production or sale of products.

Chapter III Responsibilities and Obligations of Producers and Sellers

Section 1 Responsibilities and Obligations of Producers for the Quality of Products

Article 26

Producers shall be responsible for the quality of products they produce.

Quality of products shall meet the following requirements:

(1)

Products shall be free from any irrational dangers threatening the safety of people and property. If there are State standards or
trade standards for ensuring the health of the human body and safety of lives and property, the products shall conform to such standards.

(2)

Products shall have the property they are due to have, except cases in which there are explanations about the defects of the property
of the products.

(3)

Products shall tally with the standards prescribed or specified on the packages and with the quality specified in the instructions
for use or shown in the providing samples.

Article 27

The marks on the products or the package of products shall be true to the fact and satisfy the following requirements:

(1)

Including a certificate of quality inspection;

(2)

Including the name of product and the name and addresses of producer in the Chinese language;

(3)

If, according to the characteristics and requirements for use, the specification, grades or the names and contents of the major ingredients
are required to be specified, they shall be specified clearly in Chinese; if it is required to inform consumers in advance, it shall
be marked on the outer package or relevant materials shall be provided to consumers in advance;

(4)

Products which have a time limit for use, the date of production or the period for safe use or the date of losing effect shall be
specified clearly in a conspicuous position of the product;

(5)

Products which may cause harm to the human body or injure the safety of body and property due to improper use shall carry warning
marks or warnings written in Chinese.

Unpacked food or other products which are hard to be packed according to the characteristics of products may not have marks attached.

Article 28

For products which are easily broken, inflammable, explosive, toxic, erosive or radioactive and products that cannot be handled upside
down in the process of storage or transportation or for which there are other special requirements, the package thereof shall meet
the corresponding requirements, carry warning marks or warnings written in Chinese or points of attention in handling in accordance
with the relevant provisions of the state.

Article 29

Producers are forbidden to produce products eliminated according to State laws or decrees.

Article 30

Producers are not allowed to fake the place of origin or fake or use the names and addresses of other producers.

Article 31

Producers are not allowed to fake or use the quality marks such as certification marks and fine quality product marks.

Article 32

Producers shall not adulterate their products or pose fake products as genuine or shoddy products as good or non-standard products
as standard.

Section 2 Responsibilities and Obligations of Sellers for the Quality of Products

Article 33

Sellers shall implement the system of examination and acceptance of goods procured, verifying the product quality certificates and
other marks.

Article 34

Sellers shall adopt measures to maintain the quality of products for sale.

Article 35

Sellers may not sell any product that has been put into disuse by order of the state and therefore the sale of which has been prohibited
or those that have lost effect or have deteriorated.

Article 36

The marks of products for sale by sellers shall conform to the provisions of Article 15 of this law.

Article 37

Sellers are not allowed to fake the place of origin or fake or use the names and addresses of other producers.

Article 38

Sellers are not allowed to fake or use quality marks such as certification marks and fine quality marks.

Article 39

Sellers are not allowed to adulterate the products for sale or pose fake ones as genuine or shoddy ones as good or sub-standard ones
as standard.

Chapter IV Compensation for Damage

Article 40

Sellers shall be responsible for repair, replacement or return and compensate for the damages done to end-users or consumers if one
of the following cases occurs:

(1)

Products do not have the property for use it should have and there is no advance explanations;

(2)

The quality of products does not conform to the standards or to the standards specified in the packages;

(3)

The quality of products does not tally with the quality specified in the instruction for use or with the quality of samples provided.

After the sellers undertake the repairs, replacement, return or compensation for damages according to the provisions of the preceding
paragraph, the sellers have the right to recover the losses from producers or suppliers if the responsibility rests with the producers
or other marketers that provide the products.

If the sellers fail to perform the duty of repairing, replacing, returning or compensating for damages as provided in the first paragraph
of this articles, the quality supervision and control departments or administrations for industry and commerce shall order them to
correct.

If there are relevant provisions in the contracts for marketing or processing between producers, marketers or between producers and
marketers, the parties to the contracts shall implement the provisions of the contracts.

Article 41

Producers shall be responsible for compensating for damages done to the person or property except the defective products themselves
(hereinafter referred to as “property of others”) due to the defects of products.

Producers shall not be held responsible if they can prove one of the following cases:

(1)

The products have not been put into circulation;

(2)

The defects are non-existent when the products are put into circulation;

(3)

The defects cannot be found at the time of circulation due to scientific and technological reasons.

Article 42

Sellers shall be responsible for compensation if the damages caused to the property of others are caused by defects resulting from
the fault on the part of sellers.

Sellers shall be responsible if they cannot identify the producers or suppliers of the defective products.

Article 43

If damages are done to the person or properties of others due to the defects of products, the victims may claim for compensation either
from the producers or sellers. If the responsibility rests with the producers and the compensation is paid by the sellers, the sellers
have the right to recover their losses from the producers. If the responsibility rests with the sellers and the compensation is paid
by the producers, the producers have the right to recover their losses.

Article 44

If bodily injury is caused by the defect of products, the party responsible shall pay for medical expenses and nursing expenses during
medical treatment, the lost income due to absence from work; if the bodily injury has resulted in disability, the party responsible
shall also be responsible for the expenses for self-supporting equipment, living allowances, compensation of the disabled person
and the living expenses necessary for those under the support of the disabled person; if death has resulted, the party responsible
shall pay for the funeral expenses, compensation and the living expenses necessary for those supported by the dead.

If the defect of product causes losses in property of the victims, the party shall be responsible for restoring or compensating for
it. If the victims sustain other major losses, the party responsible shall compensate for the losses.

Article 45

The validity period for claiming for compensation for damages due to defects of products is two years, starting from the date when
the parties concerned is notified or should have known the matter.

The right of request for compensation claim for damages done due to defects of products shall lose effect after the tenth year after
the products shall lose effect after the tenth year after the products with defects that cause damages was first delivered to the
users or consumers. However, cases in which the specified safe use period has not been exceeded are exceptions.

Article 46

Defects mentioned in the law are referred to the irrational dangers existing in the products that threaten the safety of person or
properties or products that do not conform to the standards set by the State or the specific trade if there is any.

Article 47

If civil disputes occur from product quality, the parties concerned may settle their disputes through consultation or mediation. If
any party concerned refuses to settle the disputes through consultation or mediation or consultation and mediation fail to settle
the disputes, parties concerned may, according to their agreement, apply for arbitration with arbitration organizations. If the parties
concerned fail to reach agreement on arbitration or if the arbitration becomes void, the cases may be brought before the people’s
courts.

Article 48

Arbitration organizations or the people’s courts may entrust the product quality supervision and control organizations provided for
in Article 11 of this law to test the quality of products concerned.

Chapter V Penalty Provisions

Article 49

An enterprise producing products that do not conform to the state standard or the specific trade standard for ensuring physical health
and the safety of human body and property shall be ordered to stop production and sale; the products illegally produced and sold
shall be confiscated; a fine less than three times the value of the products illegally produced or sold shall be imposed upon the
producer or seller; where there are illegal proceeds, such proceeds shall be confiscated; if the circumstances are serious, the business
license shall be revoked. If the case is serious enough to constitute a crime, criminal responsibility shall be investigated.

Article 50

If a producer or a seller is found adulterating their products or posing fake ones as genuine, inferior ones as superior or sub-standard
ones as standard, it shall be ordered to stop production or selling; the products illegally produced or sold shall be confiscated
and a fine of more than 50% but less than three times the value of the products illegally produced or sold shall be imposed; where
there are illegal proceeds, such proceeds shall be confiscated; if the circumstances are serious, the business license shall be revoked;
if the case is serious enough to constitute a crime, criminal responsibilities shall be investigated.

Article 51

If an enterprise produces products clearly provided as being eliminated by the State, it shall be ordered to stop production and its
products and illegal proceeds shall be confiscated and a fine amounting to over one time and less than five times the total amount
of proceeds shall be imposed and, if necessary, the production license may be revoked.

Article 52

Any person selling products that have lost effect or deteriorated shall be ordered to stop the selling and the products for sale shall
be confiscated and be fined an amount of less than two times the value of the products for illegal sale; where any illegal proceeds
have occurred, such proceeds shall be confiscated; if the circumstances are serious, the business license shall be revoked. If the
case is serious enough to constitute a crime, criminal responsibility shall be investigated.

Article 53

If a producer or a seller is found to have fabricated the place of origin, fabricated or used without authorization the names and
addresses of other producers, fabricated or used without authorization quality marks such as certification marks, it shall be ordered
to make corrections and be fined an amount of not more than the total value of the products illegal produced or sold with the products
illegally produced or sold being confiscated; if any illegal proceeds have occurred, such proceeds shall be confiscated; if the circumstances
are serious, the business license shall be revoked.

Article 54

If the product marks of a producer do not conform to the provisions of Article 27 of this law, the producer shall be ordered to make
corrections; If the product marks on the packages of products do not conform to the provisions of Article 27 (4) (5) and the case
is serious enough, the producer or seller shall be ordered to stop the production or selling and be fined an amount of not more than
30% of the value of the products illegally produced or sold; if any illegal proceeds have occurred, such shall be confiscated.

Article 55

If the seller that sells the products which are prohibited from selling as provided in articles 49 to 53 of this law have sufficient
evidence to prove that he does not know that the products had been prohibited from selling and truthfully reveals the source of products,
he may be punished in a lenient way or be given a lesser punishment.

Article 56

Any person who rejects lawful product quality supervision and inspection shall be given a warning and be ordered to make corrections;
if he refuses to make corrections, he shall be ordered to suspend business for rectifications; if the circumstances are extremely
serious, the business license shall be revoked.

Article 57

Any product quality test institution or certification institution fabricates inspection results or issues false certificates shall
be ordered to make corrections, and a fine of not less than 50,000 Yuan but not more than 100,000 Yuan shall be imposed upon the
institution while a fine of not less than 10,000 Yuan but not more than 50,000 Yuan be imposed upon the person-in-charge who is held
to be directly responsible and other personnel who are held to be directly responsible; if any illegal proceeds have occurred, such
proceeds shall be confiscated; if the circumstances are serious, the institution shall be disqualified for inspection and certification;
if the case is so serious as to have constituted a crime, criminal liability shall be investigated.

Any product quality test institution or product quality certification institution that produces unreal results that has led to losses
shall be held responsible for making compensations; if the losses are great, they may be disqualified for testing and certification.

Where any product quality certification institution violates the provisions of article 21 (2) of this law by failing to demanding
those producers or sellers whose product does not come up to the requirements of certifications yet use certification marks on their
products to make corrections or failing to revoke their qualifications for using certification marks shall undertake joint and several
liabilities with the producers or sellers of the products; if the circumstances are serious, they shall be disqualified for certification.

Article 58

Where public organizations or public intermediary organizations makes promises or warranties concerning the quality of a product which,
however, does not meet the requirements for such promises or warranties and which causes losses to consumers, they shall take several
and joint liabilities with the producers and sellers.

Article 59

If the producer or seller falsely publicizes the quality of a product in advertisements so that consumers are cheated or mislead,
he shall take legal liabilities according to the Advertising Law of the People’s Republic of China.

Article 60

The subsidiary materials, packages, tools used by produced for producing those products as mentioned in articles 49 and 51 of this
law or for producing inferior products in the name of superior products shall be confiscated.

Article 61

If any one clearly knows or should have known that a product is prohibited from production and selling by this law but still facilitates
the transportation, safekeeping, storage, etc. or supplies the production technique for producing inferior products in the name of
superior ones, all the proceeds incurred from the transportation, safekeeping, storage or supply of production techniques for producing
inferior products in the name of superior ones shall be confiscated and be fined an amount of not less than 50% but not more than
3 times of the illegal proceeds; if the case is so serious as to have constituted a crime, criminal liabilities shall be investigated.

Article 62

Where any business operator of the services industry uses any of the products which are prohibited by articles 49 to 52 of this law
from selling into management services shall be ordered to stop using; if he clearly knows or should have known that the products
he is using is prohibited f

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION CONCERNING ISSUING THE STANDARD OF THE PEOPLE’S REPUBLIC OF CHINA ON IMPORT AND EXPORT COMPANY CODE

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation Concerning Issuing the Standard of the People’s Republic of China
on Import and Export Company Code

WaiJingMaoJiFa [2000] No.18

January 14, 2000

Commissions (departments, bureaus) of Foreign Trade and Economic Cooperation in various provinces, autonomous regions, municipalities
directly under the Central Government and municipalities separately listed on the State plan, units directly under the Ministry of
Foreign Trade and Economic Cooperation, chambers of commerce, associations and learned societies:

The Standard of the People’s Republic of China on Import and Export Company Code is hereby distributed to you for implementation.

This standard with the code number WM1-1999 is a compulsory trade standard, which comes into force on January 1, 2000. It is promulgated
and administered by the Ministry of Foreign Trade and Economic Cooperation. The quota and license administration bureau of the Ministry
of Foreign Trade and Economic Cooperation is responsible for its interpretation. The China Standard Press takes charge of its publication.

 
The Ministry of Foreign Trade and Economic Cooperation
2000-01-14

 




REPLY OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON ISSUES CONCERNING THE FOREIGN EXCHANGE ADMINISTRATION OF FOREIGN REINVESTMENT IN RMB

The State Administration of Foreign Exchange

Reply of the State Administration of Foreign Exchange on Issues Concerning the Foreign Exchange Administration of Foreign Reinvestment
in RMB

HuiFu [2000] No.129

May 10, 2000

Nanjing Foreign Exchange Administrative:

Your Letter for Instructions on Reinvestment in China by the Foreign Investor of Ashland (Nanjing) Chemical Co., Ltd. with Its Net
Assets upon Liquidation (NanHuiFa [2000] No.1) and the Letter for Instructions on Reinvestment in China by the Foreign Party of Nanjiang
Sanyi Feed Additive Co., Ltd. with its Net Assets upon Liquidation (NanHuiFa [2000] No.5) have been received. After deliberation
and consultation with the Ministry of Foreign Trade and Economic Cooperation (see the Attachment), our reply on issues concerning
foreign exchange administration is as follows:

1.

Foreign investors who reinvest in China with RMB denominated capital from the liquidation, stock equity transfer or advance investment
recovery of the respective enterprises they invest in shall enjoy the same policy treatment as those reinvest in foreign currencies.
The relevant local foreign exchange administrative bureau may examine such reinvestments on a case-by-case basis and grant its approval
upon satisfaction of the following principles:

a.

The foreign investor can be proved to have legally withdrawn its investment from the foreign invested enterprise it originally invested
in (such proof can be obtained through examination of the documents of the original enterprise such as replies from authorities of
foreign trade and economy, contracts, regulations, and capital verification reports).

b.

The RMB capital to be invested is indeed the legal income of the foreign party generated through liquidation, stock equity transfer
or advance investment recovery, and such liquidation, stock equity transfer or advance investment recovery has been conducted following
the relevant procedures. (Examination shall be conducted on such materials as listed in the operational rules laid down by our administration
on liquidation, stock equity transfer and advance investment recovery).

c.

The foreign investor is at the same time the shareholder of the enterprise with reinvestment and is indeed liable for providing capital
to the enterprise. (The verification can be conducted by examining such documents of the enterprise with reinvestment as replies
of relevant authorities of foreign trade and economy, approval certificates, contracts, regulations, and capital verification reports).

The relevant local bureaus may issue the Certificate for Providing RMB Denominated Capital to the foreign investor upon completion
of verification according to the above principles; because no tax rebate is involved, the source of the RMB denominated capital shall
be pointed out in the Certificate with a view to avoid confusion with reinvestment with RMB denominated profits.

2.

Problems confronted during the implementation process shall be timely reported to the State Administration.

This is the reply.

Attachment:Comments of the Ministry of Foreign Trade and Economic Cooperation

April 4, 2000

The Department of Capital Account Transaction Administration of the State Administration of Foreign Exchange:

Your “Letter on Issues Concerning Reinvestment by Foreign Investors in China with RMB Denominated Capital Generated from Liquidation,
Stock Equity Transfer and Advance Investment Recovery” has been received. After consultation with the Department of Treaty and Law
of MOFTEC, we now reply as follows:

The Circular on Issues Concerning Investment by Foreign Investors in RMB (WaiJingMaoZiZongHanZi [1998] No.492) of our ministry is
still valid. At present, investment by foreign investors with RMB denominated non-profit capital is still not allowed in principle.
Foreign investors who reinvest with RMB denominated capital gained legally from the liquidation, stock equity transfer and advance
investment recovery of the respective enterprises they invested in shall enjoy the same policy treatment as those reinvest in foreign
currencies.

The above comments are for your reference only.



 
The State Administration of Foreign Exchange
2000-05-10

 







CIRCULAR OF STATE ADMINISTRATION OF TAXATION FOR RELEVANT ISSUE CONCERNING PURCHASE AND USE OF INVOICES BY AGENCIES IN CHINA OF FOREIGN LAW OFFICES

The State Administration of Taxation

Circular of State Administration of Taxation for Relevant Issue Concerning Purchase and Use of Invoices by Agencies in China of Foreign
Law Offices

GuoShuiFa [2000] No.140

August 8, 2000

The state taxation bureaus and local taxation bureaus of provinces, autonomous regions, municipalitie directly under the Central Government
and municipalities separately listed on the State plan:

Ministry of Justice recently pointed out that, the business of agencies in China of foreign law offices is different from those of
permanent agencies of other enterprises since the former agencies are allowed to operate to the extent prescribed by State policies
after registration in State Administration for Industry and Commerce. Ministry of Justice also proposed to provide uniform tax invoices
for such agencies on the ground that it is inconvenient for the foreign law offices to conduct normal business due to the same taxation
administration as that of permanent agencies of general foreign enterprises currently. After consideration, we clarify the relevant
issue as follows:

1.

The said agencies are allowed to apply for purchasing and using the general invoices used nationwide so that it is easy for them to
conduct normal business.

2.

The said agencies, which apply for purchasing the invoices, shall establish and perfect their account books and shall account the
income and expenses and cost. All the records shall be correct and complete together with legal vouchers as accounting basis.

3.

The said agencies, which purchase and use the invoice, shall be levied business tax and income tax according to their actual returns
in principle, not according to the income calculated on the expenditure.



 
The State Administration of Taxation
2000-08-08

 







CIRCULAR OF THE MINISTRY OF FINANCE AND STATE ADMINISTRATION OF TAXATION ON LEVYING INCOME TAX ON ROYALTIES RECEIVED BY FOREIGN ENTERPRISES FROM TRANSFERRING SOFTWARE RELATING TO POSTAL AND TELECOMMUNICATION EQUIPMENT

The Ministry of Finance, the State Administration of Taxation

Circular of the Ministry of Finance and State Administration of Taxation on Levying Income Tax on Royalties Received by Foreign Enterprises
from Transferring Software relating to Postal and Telecommunication Equipment

CaiShui [2000] No.144

January 3, 2000

The Finance Department (Administration) of every province, autonomous region, municipality directly under the Central Government and
municipality separately listed on the State plan, and the Administration of Local Taxation of Guangdong province, Hainan province
and Shenzhen city:

Recently, certain localities reported that some foreign enterprises without any establishment or office in China often transfer software
relating to the use of postal and telecommunication equipment when selling these equipment to Chinese enterprises, and requested
definite provisions for whether enterprise income tax is to be levied on the royalties from transferring such software. After due
consideration, this Circular is hereby issued as follows:

1.

Income tax shall be paid, in accordance with the provisions of Article 19 of the “Income Tax Law of the People’s Republic China
for Enterprises with Foreign Investment and Foreign Enterprises” by foreign enterprises on their incomes received as royalties from
transferring to Chinese enterprises software relating to postal and telecommunication equipment either solely or together with relevant
equipment.

2.

This Circular shall come into force as of January 1, 2001. Incomes as mentioned above which occurred or are paid after the implementation
of this Circular but under contracts or agreements that have already been concluded before the implementation of this Circular are
free from income tax.



 
The Ministry of Finance, the State Administration of Taxation
2000-01-03

 







CIRCULAR OF THE GENERAL OFFICE OF THE GENERAL ADMINISTRATION OF CUSTOMS ON THE ADMINISTRATION OF IMPORTED MATERIALS AND PARTS BY ENTERPRISES WITH FOREIGN INVESTMENT

The General Customs Administration

Circular of the General Office of the General Administration of Customs on the Administration of Imported Materials and Parts by Enterprises
with Foreign Investment

ShuBanShui [2000] No.132

April 6, 2000

Guangdong Customs and all customs directly under the General Administration of Customs:

According to reports from port customs houses, various competent customs authorities practice supervision on domestically sold materials
of enterprises with foreign investment in different ways, either by issuing upon verification the Registration Manual, or by issuing
the Certificate of Duty Levy/Exemption to facilitate enterprises going through relevant procedures, or by writing the examination
result directly on the report presented by the enterprise for approval with which it can go through relevant procedures at the port
customs house. Such inconsistency has made the work difficult for port customs houses. In order to uniform operation and standardize
administration, the following is hereby notified:

I.

In the spirit of the Circular on Printing and Distributing the Interim Measures for the Examination and Approval of Bonded Materials
and Parts of Processing Trade Imported and Sold Domestically” (WaiJingMaoGuanFa [1999] No.315), in applying for a domestic selling
of its imported materials and parts, the enterprise with foreign investment shall provide the relevant customs with the approval
document issued by the competent foreign trade and economic authority. If the imported materials and parts are under licensing administration,
the enterprise shall provide the license at the same time.

II.

Pursuant to the Circular of the General Administration of Customs on Promoting the Use of the Computerized Administrative System of
Bonded Processing (ShuJian [1996] No. 533), the administration over materials and parts imported by enterprises with foreign investment
for producing products to be sold domestically shall be reflected in the issuance upon verification of the A Manual. All customs
shall strictly observe the provisions provided in the document coded ShuJian [1996] No.533, and shall, upon receiving this Circular,
extend the administrative scope of the transmission of contract documents for record between different locations to cover materials
and parts imported by enterprises with foreign investment through an otherwise located customs port for producing products to be
sold domestically. The port customs house shall handle the enterprises’ customs entry procedures only upon completion of the examination
and verification of the computerized transmission data.



 
The General Customs Administration
2000-04-06

 







AGREEMENT ON RECIPROCAL PROMOTION AND PROTECTION OF INVESTMENT BETWEEN THE GORERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE ISLAMIC REPUBLIC OF IRAN PREAMBLE

AGREEMENT ON RECIPROCAL PROMOTION AND PROTECTION OF INVESTMENT BETWEEN THE GORERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT
OF THE ISLAMIC REPUBLIC OF IRAN PREAMBLE

The Government of the People’s Republic of China and the Government of the Islamic Republic of Iran hereinafter referred to as the
“Contracting Parties”,

Desiring to intensify economic cooperation to the mutual benefit of both States;

Intending to utilize their economic resources and potential facilities in the area of investments as well as to create and maintain
favorable conditions for investments of the investors of the Contracting Parties in each other’s territory and;

Recognizing the need to promote and protect investments of the investors of the Contracting Parties in each others’ territory;

Have agreed as follows:

Article 1

DEFINITIONS

For the purpose of this Agreement, the meanings of the terms used therein are as follows:

1.

The term “investment” refers to every kind of property or asset, including the following, invested by the investors of one Contracting
Party in the territory of the other Contracting Party in accordance with the laws and regulations of the other Contracting Party:

(a)

movable and immovable property as well as rights related thereto; such as mortgages and pledges;

(b)

shares, debentures, stocks and any other kind of participation in companies;

(c)

right to claim money and/or any other performance having an economical value associated with an investment;

(d)

industrial and intellectual property rights;

(e)

special rights conferred by law including rights to search for, extract or exploit natural resources.

Any change in the form in which assets are invested does not affect their character as investments, provided that such changes are
consistent with the legislation of the host Contracting Party.

2.

The term “investors” refers to the following persons who invest in the territory of the other Contracting Party within the framework
of this Agreement:

(a)

natural persons who, according to the laws of either Contracting Party, are considered to be its national and have not the nationality
of the host Contracting Party.

(b)

legal entities, including companies, corporations, associations, and other organizations incorporated and constituted under the laws
and regulations of either Contracting Party and have their seats in the territory of that Contracting Party.

3.

The term “returns” refers to the amounts legally yielded by an investment including profit derived from investments, dividends, royalties,
fees and other legitimate income.

Article 2

PROMOTION OF INVESTMENTS

1.

Either Contracting Party shall encourage its investors to invest in the territory of the other Contracting Party.

2.

Either Contracting Party shall, within the framework of its laws and regulations, create favorable conditions for attraction of investments
of investors of the other Contracting Party in its territory.

Article 3

ADMISSION OF INVESTMENTS

1.

Either Contracting Party shall admit investments of investors of the other Contracting Party in its territory in accordance with its
laws and regulations.

2.

When an investment is admitted, either Contracting Party shall, in accordance with its laws and regulations, grant visas, work permits
as well as all other necessary permits for the realization of such an investment.

Article 4

PROTECTION OF INVESTMENTS

1.

Investments of investors of either Contracting Party effected within the territory of the other Contracting Party shall, in accordance
with the laws and regulations of the host Contracting Party, receive full legal protection and fair treatment not less favorable
than that accorded to its own investors or to investors of any third state who are in a comparable situation.

2.

If a Contracting Party has accorded or shall accord in future special advantages or rights to investor(s) of any third state by virtue
of an existing or future agreement establishing a free trade area, a customs union, a common market or a similar regional organization
and /or by virtue of an arrangement on the avoidance of double taxation, it shall not be obliged to accord such advantages or rights
to investors of the other Contracting Party.

Article 5

MORE FAVORABLE PROVISIONS

Notwithstanding the terms set forth in this Agreement, more favorable provisions which have been or may be agreed upon by either of
the Contracting Parties with an investor of the other Contracting Party are applicable.

Article 6

EXPROPRIATION AND COMPENSATION

1.

Investments of investors of either Contracting Party shall not be nationalized, confiscated, expropriated or subjected to similar
measures by the other Contracting Party except such measures are taken for public purposes, in accordance with the legal procedure
provided for in the laws and regulations of that Contracting Party, in a non-discriminatory manner and against compensation.

2.

The amount of compensation shall be equivalent to the value of investment immediately before the action of nationalization, confiscation
or expropriation was taken. The compensation shall be made without delay, be effectively realizable and freely transferable. In case
of undue delay, which is longer than 30 days as from the date of expropriation, the financial costs related to the delayed payment
shall be borne by the expropriating Contracting Party from the date on which the payment becomes due to the date of actual payment.

Article 7

LOSSES

Investors of either Contracting Party whose investments suffer losses due to any armed conflict, war or similar state of emergency
in the territory of the other Contracting Party shall be accorded by the other Contracting Party treatment as regards restitution,
indemnification, compensation and other settlements no less favorable than that accorded to its own investors or to investors of
any third country.

Article 8

REPATRIATION AND TRANSFER

1.

Each Contracting Party shall, in accordance with its laws and regulations, permit in good faith the following transfers related to
investments referred to in this Agreement, to be made freely and without delay out of its territory:

(a)

returns;

(b)

proceeds from the sale and/or liquidation of all or part of an investment;

(c)

royalties and fees related to transfer of technology agreement;

(d)

sums paid pursuant to Article 6 and/or 7 of this Agreement;

(e)

loan installments which are related to an investment and paid out of such investment activities;

(f)

monthly salaries, wages and other revenues received by the nationals of the other Contracting Party, who have obtained the corresponding
word permits related to an investment in the territory of the host Contracting Party;

2.

The above transfers shall be effected in a convertible currency and at the current rate of exchange in accordance with the exchange
regulations prevailing on the date of transfer.

3.

The investor and the host Contracting Party may agree otherwise on the manner of repatriation or transfers referred to in this Article.

Article 9

SUBROGATION

If a Contracting Party or its designated agency, within the framework of a legal system, subrogates an investor pursuant to a payment
made under an insurance or guarantee agreement against non-commercial risks:

(a)

such subrogation shall be recognized by the other Contracting Party;

(b)

the subrogee shall not be enpost_titled to exercise any rights other than the rights which the investor would have been enpost_titled to exercise.

Article 10

OBSERVANCE OF COMMITMENTS

Either Contracting Party shall guarantee the observance of the commitments it has entered into with respect to investments of investors
of the other Contracting Party.

Article 11

SCOPE OF THE AGREEMENT

This Agreement shall apply to investments, which are made prior to or after its entry into force by investors of either Contracting
Party in accordance with the laws and regulations of the other Contracting Party in the territory of the latter.

As far as the Islamic Republic of Iran is concerned, this Agreement shall only apply to the investments approved by Organization for
Investment. Economic and Technical Assistance of Iran (O.I.E.T.A.I.) or any other agency which may succeed it.

Article 12

SETTLEMENT OF DISPUTES BETWEEN A CONTRACTING PARTY AND INVESTOR (S) OF THE OTHER CONTRACTING PARTY

1.

If any dispute arises between the host Contracting Party and investor(s) of the other Contracting Party with respect to an investment,
the host Contracting Party and the Investor(s) shall primarily endeavor to settle the dispute in an amicable manner through negotiation
and consultation.

2.

In the event that the host Contracting Party and the investor(s) can not agree within six months from the date of notification of
the claim by one party to the other, either of them may refer the dispute to the competent courts of the host Contracting Party or
with due regard to its own laws and regulations to an arbitral tribunal of three members referred to in paragraph 5 below.

3.

A dispute primarily referred to the competent court of the host Contracting Party, as long as it is pending, can not be referred to
arbitration save with the parties’ agreement; and in the event that a final judgement is rendered, it can not be referred to arbitration.

4.

National courts shall not have jurisdiction over any dispute referred to arbitration. However, the provisions of this paragraph do
not bar the winning party go seek for the enforcement of the arbitral award before national courts.

5.

The host Contracting Party or the investor(s) of the other Contracting Party who desires to refer the dispute to arbitration shall
appoint an arbitrator through a written notice sent to the other party. The other party shall appoint an arbitrator within sixty
days from the date of receipt of the said notice and the appointed arbitrators shall within sixty days from the date of the last
appointment, appoint the chairman. In the event that either party fails to appoint its arbitrator within the mentioned period and/or
the appointed arbitrators fail to agree on the chairman, either party may request the Secretary General of the International Center
for Settlement of Investment Disputes to appoint the failing party’ s arbitrator or the chairman, as the case may be. However, the
chairman shall be a national of a state having diplomatic relations with both Contracting Parties.

6.

The ad hoc arbitral tribunal shall determine its own procedure and the place of arbitration.

7.

The tribunal shall reach its award by a majority of votes. Such award shall be final and binding upon both parties to the dispute.
Both Contracting Parties shall commit themselves to the enforcement of the award.

8.

Each party to the dispute shall bear the costs of its appointed arbitrator and of its representation in arbitral proceedings. The
relevant costs of the chairman and tribunal shall be borne in equal parts by the parties to the dispute. The tribunal may in its
award direct that a higher proportion of the costs be borne by one of the parties to the dispute.

Article 13

SETTLEMENT OF DISPUTES BETWEEN THE CONTRACTING PARTIES

1.

All disputes arising between the Contracting Parties relating to the interpretation or application of this Agreement shall, in the
first place, be settled amicably by consultation. In case of disagreement, either Contracting Party may subject to its laws and regulations,
while sending a notice to the other party, refer the case to an arbitral tribunal of three members consisting of two arbitrators
appointed by the Contracting Parties and a chairman.

In case the dispute is referred to the arbitral tribunal, either Contracting Party shall appoint an arbitrator within sixty days from
the receipt of the notification and the arbitrators appointed by the Contracting Parties shall appoint the chairman within sixty
days from the date of last appointment. If either Contracting Party does not appoint its own arbitrator or the appointed arbitrators
do not agree on the appointment of the chairman within the said periods, each Contracting Party may request the President of the
International Court of Justice to appoint the arbitrator of the failing party or the chairman, as the case may be. However, the chairman
shall be a national of a state having diplomatic relations with both Contracting Parties at the time of the appointment.

2.

In case the chairman is to be appointed by the President of the International Court of Justice, if the President of the International
Court of Justice is prevented from carrying out the said function or if he is a national of either Contracting Party, the appointment
shall be made by the Vice-President of the International Court of Justice, and if the Vice-President is also prevented from carrying
out the said function or he is a national of either Contracting Party, the appointment shall be made by the senior member of the
said court who is not a national of either Contracting Party.

3.

Subject to other provisions agreed by the Contracting Parties, the arbitral tribunal shall determine its procedure and place of arbitration.

4.

The decisions of the arbitral tribunal shall be binding on the Contracting Parties.

Article 14

VALIDITY OF THE AGREEMENT

1.

This Agreement shall enter into force for a period of ten years on the first day of the following month after the date of the last
notification of either Contracting Party to the other Contracting Party that it has fulfilled necessary measures in accordance with
its laws and regulations for the entry into force of this Agreement. After the said period, this Agreement shall remain in force
thereafter unless one of the Contracting Parties notifies the other Contracting Party in writing of its unwillingness to continue
with it, six months prior to the expiration or termination thereof.

2.

After the expiration of the validity or termination of this Agreement its provisions shall apply to investments under this Agreement
for a further period of ten years.

In Witness Whereof the undersigned, duly authorized thereto by respective Governments, have signed this Agreement.

Done in duplicate at Beijing on June 22, 2000 corresponding to 2nd Tir1379 in the Chinese, Persian and English languages, all texts
being equally authentic. In case of divergence of interpretation, the English text shall prevail.

For the Government of the￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿For the Government of the

People’s Republic of China￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿Islamic Republic of Iran



 
The Government of the People’s Republic of China
2000-06-22

 







CIRCULAR OF CHINA SECURITIES REGULATORY COMMISSION ON THE ISSUE CONCERNING ALTERATION ON SORTS OF NONNEGOTIABLE SHARES OF THE LISTED COMPANY

The China Securities Regulatory Commission

Circular of China Securities Regulatory Commission on the Issue Concerning Alteration on Sorts of Nonnegotiable Shares of the Listed
Company

ZhengJianShiChangZi [2000] No.14

August 16, 2000

Shanghai and Shenzhen Stock Exchange:

With a view to regulating the registration of securities relating to alteration of the sorts of listed company’s shares, and coordinating
measures of reforming securities market, hereby notify the related matters concerning alteration of registration which shall be made
after state-owned stock equity of listed company’s nonnegotiable shares is transferred:

In case state-owned stock of listed company is transferred between state’s owned legal persons, the sort of the transferred shares
shall still be registered as state-owned shares; in case transferee is not the state’s owned legal person (including non-state’s
holding company) or other investors, the transferred stock equity can be registered as other sorts of nonnegotiable share, if:

1.

the transferor gets approval from the Ministry of Finance by instrument in writing; or

2.

it is executed according to the final judgment of court; or

3.

it is auctioned directed or authorized by the court.

4.

The Ministry of Finance will set special regulations on state-owned shares of listed company after the promulgation of this circular.
Then transferors transact according to the regulations.

This circular shall go into effect as of the date of its promulgation.

If the relevant articles of the document ShiChangZhengJianZi No.8 disaccords with this circular, execute according to this circular.



 
The China Securities Regulatory Commission
2000-08-16

 







CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...