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CIRCULAR OF THE MINISTRY OF FINANCE AND PEOPLE’S BANK OF CHINA CONCERNING CONFIRMING THE QUALIFICATIONS OF THE MEMBERS OF THE CERTIFICATE GOVERNMENT BOND UNDERWRITING SYNDICATES






Circular of the Ministry of Finance and People’s Bank of China concerning Confirming the Qualifications of the Members of the Certificate
Government Bond Underwriting Syndicates

Cai Ku [2006] No. 83
September 23, 2006

The departments (bureaus) of public finance each province, autonomous region, municipality directly under the Central Government,
as well as city specifically designated in the state plan, Shanghai Headquarters, each branch and business department of the People’s
Bank of China, central sub-branch of the People’s Bank of China in provincial capital cities, central sub-branch of the People’s
Bank of China in deputy provincial cities, each commercial bank, China Postal Savings and Remittance Bureau,

In order to regulate the issuance of government bonds and promote the sound development of the government bond market, the task of
establishing certificate government bond underwriting syndicates has been accomplished according to the Measures for the Examination
and Approval of the Qualifications of the Members of Government Bond Underwriting Syndicates (Decree No. 39 of the Ministry of Finance,
People’s Bank of China and China Securities Regulatory Commission) and the Circular of the Ministry of Finance, People’s Bank of
China and China Securities Regulatory Commission on the Establishment of Certificate Government Bond Underwriting Syndicates (Cai
Ku [2006] No. 60).

By August 11, 49 institutions have submitted application materials in total, all of which satisfied the basic application conditions
and were accepted. The establishment of a certificate government bond underwriting syndicate shall abide by the principle of openness,
fairness and impartiality and take in some new members from the new applicant institutions on the basis of overall stability of the
original members. The number of members may not be more than 40. On the basis of consulting the opinions of the China Banking Regulatory
Commission, the Ministry of Finance, in collaboration with the Peoples’ Bank of China decided an establishment plan as follows:

1.

The qualifications of the 37 institutional members, which still satisfy the qualifications for the members of certificate government
bond underwriting syndicates in 2004 shall be kept.

2.

The rural credit cooperatives will not be taken into any of the certificate government bond underwriting syndicates, by the virtue
of the fact that they are being restructured towards rural commercial banks and their internal management needs to be further improved.

3.

New applicant institutions, which have no less than 100 business departments (in accordance with the figure checked by the Ministry
of Finance) and of which the net assets have reached no less than 1 billion Yuan by the end of 2005, shall be included. Under this
requirement, 3 applicant institutions are taken into this underwriting syndicate.

Subject to the aforesaid principles, the Name List of the Members of Certificate Government Bond Underwriting Syndicates (attached)
has been decided. It is hereby released.

Appendix: Name List of Members of Certificate Government Bond Underwriting Syndicates



Appendix

￿￿

Appendix:

Name List of Members of Certificate Government Bond Underwriting Syndicate

￿￿

Sequential No.

Code

Institution Name

Sequential No.

Code

Institution Name

1

1001

Industrial and Commercial Bank of China Limited

21

1025

Jinan Commercial Bank

2

1002

Agriculture Bank of China

22

1026

Qingdao Commercial Bank

3

1003

Bank of China Co., Ltd.

23

1028

Chengdu Commercial Bank

4

1004

China Construction Bank Corporation

24

1030

Xi￿￿an Commercial Bank

5

1005

Bank of Communications Co., Ltd.

25

1034

Kunming Commercial Bank

6

1006

China Citic Bank

26

1035

Harbin Commercial Bank

7

1007

China Everbright Bank

27

1037

Ningbo Commercial Bank

8

1009

Hua Xia Bank Co.,Ltd.

28

1041

Huishang Bank

9

1010

Shanghai Pudong Development Bank

29

1054

Nantong Commercial Bank

10

1011

Industrial Bank Co., Ltd.

30

1055

Changsha Commercial Bank

11

1012

China Merchants Bank Co., Ltd.

31

1059

Nanchang Commercial Bank

12

1013

Shenzhen Development Bank

32

1062

Wuxi Commercial Bank Ltd.

13

1014

China Minsheng Banking Corp., Ltd.

33

1063

Wuhan Commercial Bank

14

1015

Beijing Bank

34

1075

Dalian Commercial Bank

15

1016

Shanghai Bank

35

1084

Urumchi Commercial Bank

16

1017

Nanjing Commercial Bank

36

1100

Evergrowing Bank

17

1020

Guangdong Development Bank Co., Ltd.

37

1102

Taiyuan Commercial Bank

18

1021

Tianjing Commercial Bank

38

5008

China Postal Savings and Remittance Bureau

19

1022

Shijiazhuang Commercial Bank

39

5011

Beijing Rural Commercial Bank

20

1023

Hangzhou Commercial Bank Co., Ltd.

40

5014

Shanghai Rural Commercial Bank

GUIDELINES ON THE DUE DILIGENCE OF COMMERCIAL BANKS IN THE WORK OF CREDIT GRANTING TO SMALL-SCALE ENTERPRISES (FOR TRIAL IMPLEMENTATION)






Guidelines on the Due Diligence of Commercial Banks in the work of Credit Granting to Small-scale Enterprises (for Trial Implementation) October 9, 2006 Chapter I General Rules Article 1 The present Guidelines are formulated in order to improve the mechanism for the work of credit granting to small-scale enterprises
of commercial banks, regulate the management of credit granting to small-scale enterprises, clarify the requirements for due diligence
in the work of credit granting, and promote the sustainable development of the business of credit granting to small-scale enterprises,
and according to related laws, regulations and provisions including the Law of the People’s Republic of China on Commercial Banks,
Banking Supervision Law of the People’s Republic of China, Guiding Opinions on the Small-scale Enterprise Loan Business of Banks. Article 2 The phrase “due diligence in the work of credit granting to small-scale enterprises” refers to that the commercial banks’ staffs in
charge of investigating the business of credit granting to small-scale enterprises, reviewing credits, examining and approving credits,
managing post-credit activity of small-scale enterprises and other activities concerning the business of credit granting, have fulfilled
the most fundamental requirements for due diligence as stipulated in the present Guidelines. In case of a mini-enterprise, a commercial
bank may simplify the aforesaid credit granting links and properly grant more power to the customer managers according to the actual
circumstances. Article 3 Policies on credit granting to small enterprises shall be formulated, a decision-making mechanism, information management system,
and operating procedures shall be established and timely evaluated and perfected by a commercial bank. Article 4 The policies on credit granting to small-scale enterprises as formulated by a commercial bank shall embody the operating rules of
small-scale enterprises the risk features of the business of credit granting to small-scale enterprises, and the discriminatory management
of the business of credit granting shall be employed. A commercial bank shall (1) place stress on the on-site investigation and the information collection, learn and grasp information about the business operation
and credit standing of customers; (2) on the premise of controlling the risks, reasonably set the power to the examination and approval of the credit granting to small-scale
enterprises, simplify the procedures and improve the efficiency of the examination and approval; (3) set up a risk-based pricing mechanism, conduct discriminatory pricing to different enterprises or for different credits, and adjust
the prices in a timely manner along with the changes of risks; (4) account separately for the business of credit granting to small-scale enterprises; (5) set up an incentive and restraint mechanism to link up the income of the loan staffs for the small-scale enterprise with their workload,
loan risks, loan yields and other indicators. (6) develop products innovation actively, and provide credit products and financial services that can satisfy the small-scale enterprises’
needs. (7) set up a customer-orientated, flexible and practical credit granting mechanism so as to meet the needs of small-scale enterprises
of flexible and diversified credits in credit amount, interest rate, term and other aspects. Article 5 A commercial bank shall set up a management department and a professional team for the credit granting to small-scale enterprises.
The credit granting business to small-scale enterprises shall be on the basis of customer manager system and the related business
investigations shall be carried out by two persons. Article 6 A commercial bank shall, in the communities that it provides services, encourage customer managers to establish a wide and regular
relationship with the local communities, so as to collect information, improve the efficiency and supervise the use of loans. Article 7 A commercial bank shall strengthen the training of the staffs in charge of the credit granting to small-scale enterprises so as to
update their minds, help them grasp the features and the methods of risk control of the credit granting business to small-scale enterprises,
improve their capability of marketing and capabilities of collecting, arranging, analyzing both the financial and non-financial information,
be familiar with the duties and the requirements for due diligence of credit granting to small-scale enterprises and form a good
credit culture of small-scale enterprise gradually. Article 8 The commercial bank’s staffs in charge of the credit granting to small-scale enterprises and the staffs in charge of the due diligence
evaluation of the work of credit granting shall observe the principles of objectiveness, impartiality and good faith, perform their
duties independently as well as not be disturbed by any intentional external factor. The staffs in charge of credit granting to small-scale
enterprises shall declare whether or not they are the credit applicants’ interested parties in the activities of credit granting
business. Article 9 A commercial bank shall strengthen the archive management of credit granting to small-scale enterprises. The rights, obligations,
stipulations and contacts in various forms between it and small-scale enterprises, as well as the remedies for breach of contract
shall be recorded objectively and completely, and shall be preserved as archives. Article 10 A commercial bank shall set up an evaluation system of due diligence for the credit granting work to small-scale enterprises and corresponding
system of responsibility and exoneration. It shall clarify the credit granting departments and posts’ duties and due diligence requirements,
determine the liabilities for the credit risks caused by violating law or regulation, and punish the related persons who should bear
the liabilities in accordance with the pertinent provisions. Chapter II Due Diligence in Credit Investigation Article 11 A commercial bank shall segment the market, study the business operational rules and the risk features of various target groups, and
clarify the basic entry conditions for customers based on its development strategy and the features of small-scale enterprises business. Article 12 A customer manager shall collect the customers’ basic information according to the credit categories, including the identity certificate,
principal credit qualification, financial information, etc. Please see the Reminder of the Basic Information of Customers of the
Annex for details. Article 13 A customer manager shall focus on and gather the customers’ non-financial information, including the personal information and the
family’s credit standing of the owner or main shareholders of the customer enterprise, enterprise business management, technologies,
status quo of the industrial sector concerned, and market prospect, etc. Please see the Reminder of Non-financial Information of
the Annex for details. Article 14 A customer manager shall verify the legality and genuineness of the materials provided by customers and of the information collected,
and shall record the verification process and results. The verification shall be conducted mainly in forms of on-site investigations.
The information collection and verification may be simultaneously conducted. Article 15 A customer manager shall prepare balance sheets and cash flow statements on the related small-scale enterprises or their owners or
main shareholders according to the information verified upon investigation as the main basis for the analysis of the customers’ financial
status and repayment capacity. Article 16 A customer manager shall, according to the verification and analysis results, issue written investigation reports. In an investigation
report, an analysis of the reason for borrowing money, repayment capacity, cash flow and information about personal credit standing
of the owner or main shareholders of the enterprise’s shall be conducted, and suggestions on the credit type, amount, purpose, interest
rate, service fee, time limit, repayment form, guaranty conditions, etc shall be put forward.

The investigation information about the related small-scale enterprise and its owners or main shareholders, which is available in
the credit system of the China Banking Regulatory Commission (CBRC), shall also be included in the investigation report.

An investigation report shall be written practically, concisely and standardly. In case of granting several credits to a same customer
within 90 days, the original investigation report shall remain valid if it is confirmed that the customer’s credit standing has no
substantial change after the supplementation of the related information.

A customer manager shall bear the responsibility for the genuineness of the information contained in the investigation report, as
well as bear the responsibility for the conclusion of the investigation. Article 17 A commercial bank may grant certain credit granting power to customer managers. After the investigation and verification of credit,
two customer managers may, within their power limit, determine whether or not to grant a credit and both shall affix their signatures.
In case of a small-sum credit to a mini-enterprise, the customer managers may regard the information about the customer’s repayment
of the production and business operation loans, payment of various taxes and costs, records of good faith and other basic information
reflecting its capacity and intention of repayment as the main basis for determining whether or not to grant a credit. Article 18 If any important event influencing a customer’s capability of fulfilling contracts occurs, the commercial bank shall conduct an on-site
investigation and verification and shall keep a record in the archives. At the same time, the staffs in charge of credit granting
shall strengthen communications so as to ensure that all parties involved can grasp the related information in time. The important
events influencing a customer’s capability of fulfilling contracts include: (1) significant changes of the external policies and economic environment; (2) overcapacity external guaranties provided by the owner, main shareholders of the customer enterprise or related party enterprises,
or the great changes of the value of the mortgaged (pledged) properties; (3) significant changes to the financial status of the owner, main shareholders or connected enterprises of customer enterprise; (4) lawsuits in which the owner, main shareholders or connected enterprises of customer enterprise are involved; (5) serious breach of contract committed by the owner or any main shareholders or related party enterprises of customer enterprise; (6) changes to the owner or main shareholders, or key managers, or technicians of customer enterprise; (7) the occurrence of merger, restructuring or change of property right of the customer; and (8) other events. Chapter III Due Diligence Requirements for the Review of Credits Article 19 A commercial bank shall, on the basis of different customers and the risk features of different credits, formulate requirements for
the credit review.

Small-scale enterprises with a good credit standing may got corresponding credit incentives, and their credit amount may be increased
gradually, their credit term may be extended or credit preferential conditions may be provided to them. Article 20 The staffs in charge of credit examination shall check the regulation-compliance, validity and completeness of the credit materials.
The investigation or review of credit may be simultaneously conducted by different staffs. Article 21 The staffs in charge of credit examination shall analyze and evaluate the major factors influencing the customer’s financial status
based on the assets, liabilities and cash flow of a customer, its owner or main shareholders. Where necessary, a new balance sheet
and cash flow statement for the customer may be formulated. Article 22 The staffs in charge of credit examination shall, check or verify the reasonableness of the amount, term and purpose of a credit in
accordance with the status of business operation credit standing, mortgaged (pledged) properties or guarantees, and other non-financial
information of a customer. Article 23 The staffs in charge of credit examination shall, in accordance with the result of check and analysis, issue written opinions of review.
In case of a credit that passes the examination, the opinions of review shall expressly specify the credit type, amount, purpose,
interest rate, service fee, term, repayment form, guaranty conditions and credit granting conditions as well as give a warning of
the potential credit risks.

The staffs in charge of credit examination shall be responsible for the review opinions. Article 24 Certain credit granting power may be granted to the staffs in charge of credit examination by a commercial bank. After the investigation
and review of credit, the staffs in charge of credit examination and the customer manager may decide whether or not to grant a credit
within authorization and shall both affix their signatures. Article 25 When any important event influencing a customer’s capacity to fulfill contracts occurs, a new credit review shall be conducted by
the commercial bank in a timely manner. Chapter IV Due Diligence in the Credit Examination and Approval Article 26 On the premise of controllable risks, a commercial bank shall formulate a discriminatory system for credit granting and credit authorization
to small-scale enterprises. The credit examination and approval shall be conducted within rather than exceeding the scope of authorization. Article 27 A commercial bank shall formulate explicit procedures for the credit examination and approval to small-scale enterprises. The credit
examination and approval shall be conducted in accordance with the related procedures. Article 28 Any credit granted to a small-scale enterprise by a commercial bank shall not be used in any industry, project or product that is
banned or restricted by any state policy, law or regulation. Article 29 In case of a credit applied by the interested party, the related staffs in charge of the credit examination and approval shall apply
for disqualifying themselves. Article 30 The staffs in charge of the credit examination and approval shall issue examination and approval opinions. In case of a credit upon
examination and approval, the examination and approval opinions shall specify the credit type, amount, purpose, interest rate, service
fee, term, repayment form, guaranty conditions and credit conditions.

The staffs who conduct the credit examination and approval shall be responsible for the examination and approval opinions. Article 31 A commercial bank shall grant credits in accordance with the examination and approval opinions. If the credit conditions change, the
commercial bank shall conduct a new examination and approval or change the related credit in a timely manner. If the credit conditions
are not met, or if a new examination and approval isn’t conducted after the change of the credit conditions, any credit shall not
be granted by the commercial bank. Article 32 When granting a credit, a commercial bank shall sign the related legal documents and shall ensure the documents’ law-compliance, regulation-compliance,
validity and feasibility. Chapter V Due Diligence in the Post-credit Management Article 33 A commercial bank shall establish a special system for the post-credit management and monitoring of credits granted to small-scale
enterprises and shall, by combining with the credit repayment form, conduct effective post-credit management. When any significant
event influencing a customer’s capability to fulfill a contract occurs, it shall issue a written report in a timely manner. Article 34 A commercial bank shall classify the risks of the credits already granted into different categories in strict compliance with the
supervisory requirements of the regulatory departments as well as its own risk control rules. Article 35 A commercial bank shall conduct dynamic monitoring so as to timely discover the credit customers’ potential risks and remind them
of the risks. Please see the Reminder of Signals of Risks in the Annex for details. Article 36 A commercial bank shall take measures on the basis of the result of the post-credit monitoring and the risk￿￿status, adjust the risk
classification result, and determine whether or not to adjust the credit according to the actual circumstance, including extending
the term, reducing the credit, demanding the borrower to repay the loan before the due date, terminating the credit, etc. Article 37 A commercial bank shall set a scientific and reasonable bad debt tolerance limit to small-scale enterprises. It shall check the repayment
and dispose of the overdue credits or credits with outstanding interests in a timely manner. In case of a credit of which it is necessary
to take legal measures to demand for the repayment, special persons shall be designated to manage the credits. Article 38 A commercial bank shall formulate a reasonable mechanism to verify and write off the non-performing loans to small-scale enterprises.
When granting a credit to losses that have been written off, the principle of “writing off the accounts, keeping the cases and reserving
the rights” shall be adhered to. Article 39 A commercial bank shall, in a timely manner, input the information about the customers’ breach of contract into the system of the
credit management information of this bank or circulate a notice among its internal departments, and report to the banking regulatory
departments regularly. It shall circulate a notice about, expose and take joint sanction measures against any small-scale enterprise
that dodges its debt owing to the bank maliciously via the banking association and news media. Chapter VI Due Diligence in the Evaluation of the Credit Granting Work Article 40 A commercial bank shall set up a system for the evaluation of due diligence in the credit granting work. It shall, provide corresponding
staffs in accordance with development of the credit granting business to small-scale enterprises. The staffs in charge of the evaluation
of due diligence shall have necessary professional knowledge of credit granting. Article 41 A commercial bank shall conduct evaluation of the due diligence in various links of the business of credit granting, shall evaluate
whether or not the staffs ￿￿in charge of credit granting have performed their duties duteously and determine whether or not to exempt
them from liabilities. The evaluation may be conducted on the spot or otherwise.

If any of the staffs in charge of credit granting is found to have seriously violated any regulation, it shall be immediately reported.
After the evaluation is finished, a report about the evaluation of the due diligence in the credit granting work shall be immediately
issued. Article 42 As to any problem found by the staffs in charge of the evaluation of the due diligence, the commercial bank shall, upon confirmation,
order the related departments or staffs of credit granting to timely correct it. Article 43 A commercial bank shall, in accordance with the evaluation result of the staffs in charge of the evaluation of due diligence in the
work of credit granting, and in light of law and regulation, investigate and punish the staffs in charge of credit granting who are
under any of the following circumstances: (1) Making false records or misleading statements, or omitting any major information; (2) Failing to verify the information about the customer or failing to carry out further investigation on any abnormal information; (3) Concealing the true situations, especially his relationship with the borrower, or concealing the records of bad credit of the borrower,
guarantor and its owner; (4) Failing to make an on-site check and verification on the mortgaged (pledged) property; (5) Going beyond the scope of his authority or violating the related procedures during the decision making process of the credit granting; (6) Failing to conduct post-credit management and failing to prevent and control the credit risks in a timely manner; (7) Failing to timely report, conduct an on-site investigation, and take necessary measures when any significant change or emergency happens
to the credit customer; (8) Failing to make a report to the CBRC the information about any customer’s breach of contract in a timely manner; (9) Failing to show cooperation with the staffs in charge of the due diligence evaluation in the work of credit granting or providing
any false information, or failing to correct any problem found in the due diligence evaluation in the work of credit granting within
the time limit; or (10) Other circumstances. Article 44 Upon inspection, supervision and liability determination by the commercial bank, if there are sufficient proofs showing that the departments
and staffs in charge of the work of credit granting have performed their duties diligently in accordance with the related laws, regulations,
rules, the present Guidelines, as well as the pertinent management bylaws of the commercial bank, they shall be exempted from the
regulation-compliance liabilities by the commercial bank when any credit risk occurs. Chapter VII Supplementary Rules Article 45 The business of credit granting to small-scale enterprises and individual industrial and commercial households, which is conducted
by commercial banks established lawfully within the territory of China shall be governed by the present guidelines. Other financial
institutions in the banking sector may do business with reference to it. Article 46 Detailed rules for the implementation of the present Guidelines shall be formulated by commercial banks and be reported to the CBRC
or its dispatched institutions. Article 47 The CBRC shall be responsible for interpreting the present Guidelines. Article 48 The present Guidelines shall enter into force as of the promulgation date. Annex 1. Reminder of the Basic Information of Customers (1) the business license and organizational code certificate (duplicate and photocopy) as well as the certification of annual inspection; (2) loan card and information about the opening of bank accounts; (3) the identity certificate of the customer enterprise’s owners￿￿and main shareholders and the necessary personal information about them; (4) the basic information which is available for preparing the balance sheet, income statement and cash flow statement of the latest 2
years or of the current period, or financial statements which have been formulated; (5) the deposits and loans of the reporting period of the owner or main shareholders of the customer enterprises, as well as its external
guaranties; (6) the tax registration certificate which has passed the annual inspections conducted by tax departments and photocopies of the tax payment
certifications for the past year issued by tax departments; (7) the contracts or articles of association (original and photocopy); (8) name list of the members of the board of directors, major persons in charge of business operation, finance, and technology, and specimens
of their signatures; (9) for a limited liability customer, equity joint customer, partnership customer or contractor or lease customer, the resolution or document
of the board of directors or the contract issuing party on the approval of the business of credit granting, or documents or certification
which are equally authentic; (10) a power of attorney issued by the customer’s legal representative if it entrusts any agent to apply for the credit granting (original);
and (11) other necessary materials (such as the related documents issued by a customs office or other department).

In case of a medium and long-term credit, there must be various qualified and effective approval documents, information about the
expected fund sources and the purposes thereof, information about the expected assets and liabilities, the information about profits
and losses, the progress of project construction and operation plan. 2. Reminder of Non-financial Information (1) the information about the personal professional history, educational background, conduct, health state of the key staffs of the customer,
such as the decision-making staffs, main executive staffs and technical staffs; (2) the information about other investments, assets and liabilities or contingent liabilities of the customer enterprise’s owner or of
the main shareholders of the customer enterprise or their families; (3) the information about the family members of the customer enterprise’s owner or of its main shareholders, dwelling place, marriage,
and family income and expenses; (4) the personal credit standing of the customer enterprise’s owner or of the main shareholders thereof, and his or their information
in the system of credit register consultation and in the system of personal credit, as well as the customer’s records in the department
for industry and commerce, tax organs and customs offices; (5) checklist of the water and electricity fees and expenses on other public utilities in the past year; (6) the customer’s equipment operating ratio of the past year and the technolog

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON RELEVANT FOREIGN EXCHANGE ADMINISTRATION ISSUES CONCERNING DESIGNATED FOREIGN EXCHANGE BANKS’ FORWARD PURCHASE AND SALE OF FOREIGN EXCHANGE BUSINESS AND RENMINBI AND FOREIGN CURRENCY SWAP TRANSACTION TO CLIENTS

Circular of the State Administration of Foreign Exchange on Relevant Foreign Exchange Administration Issues concerning Designated
Foreign Exchange Banks’ Forward Purchase and Sale of Foreign Exchange Business and Renminbi and Foreign Currency Swap Transaction
to Clients

Hui Fa [2006] No. 52
October 20,2006

The branches and foreign exchange administration departments under the State Administration of Foreign Exchange in all provinces,
autonomous regions, and municipalities directly under the Central Government, the branches in the cities of Shenzhen, Dalian, Qingdao,
Xiamen and Ningbo; all policy banks, state-owned commercial banks and joint stock commercial banks:

For the purpose of conforming to the needs of evasion of exchange rate risks by domestic economic subjects, facilitating the provisions
of products and services for the evasion of exchange rate risks by designated foreign exchange banks (hereinafter referred to as
these banks) to clients, we hereby clarify relevant foreign exchange administration issues involved in these banks’ forward purchase
and sale of foreign exchange business and Renminbi and foreign currency swap transaction(hereinafter referred to as “swap”) to clients
as follows subject to the Circular of the People’s Bank of China concerning Relevant Issues for Enlarging Designated Foreign Exchange
Banks’ Forward Purchase and Sale of Foreign Exchange Business and Renminbi and Foreign Currency Swap Transaction to Clients” (Yin
Fa [2005] No. 201):

1.

The Forward Purchase and Sale of Foreign Exchange Business

(1)

The foreign exchange income and expenditure which may be under spot purchase and sale of foreign exchange in accordance with foreign
exchange administration provisions may also be under forward purchase and sale of foreign exchange business.

(2)

The forward purchase and sale of foreign exchange business shall be under performance examination. A bank may, according to its own
business operation and needs of risk administration, decide to sign a forward contract with a client. When the forward contract expires,
the bank shall, pursuant to corresponding effective vouchers provided by the client, purchase or sell foreign exchange.

(3)

As regards the performance of a contract on forward purchase and sale of foreign exchange, the amount of the contractual principal
shall be delivered in full at the agreed forward transaction price, and no non-delivery forward is permitted.

(4)

When a forward contract expires, if the client has breach of contract, the matter shall be disposed in accordance with commercial
principles.

(5)

A client may adjust the term for performance of the forward contract (advance or renew the performance) by swap transaction. The contractual
amount, the renewal times and the term shall be determined through negotiations between the client and the bank.

2.

Swap Transaction

(1)

The foreign exchange funds exchanged out by clients at the near end of the swap (which means the last exchange of funds in the swap,
similarly hereinafter) shall be limited to the foreign exchange funds which may be under spot settlement of foreign exchange in accordance
with foreign exchange administration provisions; the foreign exchange funds exchanged out at the far end of the swap (which means
the next exchange of funds in the swap, similarly hereinafter) shall be limited to the foreign exchange funds exchanged at the near
end.

When a client exchanges out the foreign exchange funds in the swap performance, a bank shall, with reference to the performance examination
administration of forward purchase and sale of foreign exchange business, examine the funds and vouchers delivered by the client
pursuant to the provisions on the administration of spot settlement of foreign exchange.

(2)

A client may directly use Renminbi to exchange for foreign exchange by swap transaction, the payment and use of which shall be compliance
with foreign exchange administration provisions.

(3)

The foreign exchange got by a client through exchange at the far end of the swap shall be generally transferred to the account through
which the foreign exchange funds were exchanged out; the foreign exchange at the near end which came from a capital account, special
account of foreign debts, or special account of loans converted from foreign debts of a foreign-funded enterprise may, when got by
a client through exchange at the far end, be transferred to the current foreign exchange account, and shall not be transferred to
any of the said three kinds of capital foreign exchange accounts.

(4)

As regards the foreign exchange or Renminbi exposure formed in a bank due to breach of contract of a client in the swap transaction,
the bank may include such exposure into its own overall position in the purchase and sale of foreign exchange for squaring, the income
or loss of which shall be disposed by the bank and the client.

(5)

A client may adjust the term for performance of the total or partial amount under the swap contract (advance or renew the performance),
the renewal times and the term shall be determined through negotiation by the client and the bank.

3.

Statistical Administration

(1)

When a client adjusts the term for a forward or swap contract by signing a new swap contract, the bank shall not render the said new
swap transaction as a sum of new transaction for separate statistics, and may only need to make statistics on the performance of
the adjusted forward or swap contract.

(2)

After a client has breach of contract in swap transaction, the bank shall deem the performance amount at the near end or the balance
between the performance at the near end and the partial performance at the far end at the time of performance as spot purchase and
sale of foreign exchange for statistics.

(3)

The aforesaid statistics shall be reflected in the Monthly (Ten-day) Statistical Report of the Bank’s Purchase and Sale of Foreign
Exchange and the Daily Report about the Overall Position of the Bank’s Purchase and Sale of Foreign Exchange.

4.

The scope of clients for whom a bank handles the forward purchase and sale of foreign exchange business or the swap transaction shall
be limited to the institutions within the territory of China and other clients approved by the State Administration of Foreign Exchange.

A bank may handle the purchase of foreign exchange with Renminbi for overseas investment under relevant provisions or the swap transaction
of inward foreign exchange at the near end and outward foreign exchange at the far end under the financial administration for individual
residents.

5.

Without approval of the State Administration of Foreign Exchange, no institution or individual within the territory of China may participate
in derivative transactions of Renminbi to foreign exchange outside the territory of China in any form. These banks shall provide
products and services to the clients for the evasion of Renminbi exchange rate risks within the prescribed scope of business.

All branches of the State Administration of Foreign Exchange shall, after receipt of the present Circular, immediately transmitted
it to the sub-branches, urban and rural commercial banks, rural cooperative financial institutions, and foreign-funded banks under
their respective jurisdiction.

If there is any question in the implementation, please contact Balance of Payments Department of the State Administration of Foreign
Exchange.

Tel: 010-68402385, 68402313; Fax: 010-68402315

 
State Administration of Foreign Exchange
2006-10-20

 



DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON RATIFICATION OF THE CONVENTION ON OCCUPATIONAL SAFETY AND HEALTH AND THE WORKING ENVIRONMENT

Decision of the Standing Committee of the National People’s Congress on Ratification of the Convention on Occupational Safety and
Health and the Working Environment (1981)

October,10 2006

(Passed at the 24th meeting of the Standing Committee of the 10th National People’s Congress of the People’s Republic of China on
October 31, 2006)

The 24th meeting of the Standing Committee of the 10th National People’s Congress of the People’s Republic of China makes a decision:
to ratify the Convention on Occupational Safety and Health and the Working Environment (1981) adopted at the International Labor
Conference on June 22, 1981; at the same time, declares that the Convention on Occupational Safety and Health and the Working Environment
(1981) ‘may not be applicable to the Hong Kong Special Administrative Region of the People’s Republic of China for the time being
before the Government of the People’s Republic of China gives a separate notice.

 
The Standing Committee of the National People’s Congress
2006-10-31

 



CIRCULAR OF THE NATIONAL DEVELOPMENT AND REFORM COMMISSION AND THE MINISTRY OF FINANCE ON RELEVANT ISSUES CONCERNING THE SURVEILLANCE CHARGING RATES FOR THE SECURITIES AND FUTURES MARKET

Circular of the National Development and Reform Commission and the Ministry of Finance on Relevant Issues concerning the Surveillance
Charging Rates for the Securities and Futures Market

Fa Gai Jia Ge [2006] No. 2437

China Securities Regulatory Commission,

Your Letter on the Relevant Issues concerning the Surveillance Charging Rates for the Securities and Futures Market (Zheng Jian An
[2005] No.390) has been received. Upon study, we hereby notify the relevant issues concerning the surveillance charging rates for
the securities and futures market as follows:

1.

The charging rates of securities trading surveillance fees collected by your Commission from Stock Exchanges in Shanghai and Shenzhen
shall still be 0.04￿￿f annual transaction volume in the case of stock and securities investment funds; and be 0.01￿￿f annual
transaction volume in the case of bonds (excluding the repurchase of government securities).

2.

The charging rates of institutional surveillance fees collected by your Commission on the securities companies, fund management companies
and futures brokerage companies registered within the territory of China shall still be 0.05￿￿f the registered capital, among others,
an amount collected from securities companies or fund management companies shall not be more than 300,000 yuan, and an amount collected
on futures brokerage companies shall not be more than 50,000 yuan.

3.

The charging rates of futures market surveillance charges collected by your Commission on futures exchanges in Shanghai, Zhengzhou
and Dalian shall still be 0.002￿￿f the annual transaction volume.

4.

Your Commission shall perform the procedures for charging license at the National Development and Reform Commission, and use the bills
according to the relevant provisions of the Ministry of Finance. Your Commission shall strictly implement the prescribed charging
rates, and consciously accept the surveillance and inspection of the departments of price and finance.

5.

The aforesaid provisions shall be performed as of January 1, 2006 with a valid period of three years. After the expiration of the
valid period, your Commission shall report to the National Development and Reform Commission and the Ministry of Finance for re-inspection
and approval pursuant to the prescribed procedures. The Circular of the State Planning Commission and the Ministry of Finance on
the Re-verification of Surveillance Charging Rates for the Securities Market and Other Relevant Issues (Jia Jia Ge [2003] No.60)
shall be abolished therefrom.

The National Development and Reform Commission

The Ministry of Finance

November 8, 2006



 
National Development and Reform Commission, the Ministry of Finance
2006-11-08

 






PROVISIONS ON ANTI-MONEY LAUNDERING THROUGH FINANCIAL INSTITUTIONS

Order of the People’s Bank of China

No. 1

The Provisions on Anti-money Laundering through Financial Institutions, which was instituted by the People’s Bank of China under the
Anti-money Laundering Law of the Peoples’ Bank of China, Law of the People’s Republic of China on the People’s Bank of China and
other laws, has been adopted at the 25th executive meeting of the president of the People’s Bank of China on November 6, 2006, are
hereby promulgated and shall go into effect as of January 1, 2007.
Present of the People’s Bank of China, Zhou Xiaochuan

November 14, 2006

Provisions on Anti-money Laundering through Financial Institutions

Article 1

With a view to preventing money laundering activities, regulating anti-money laundering supervision and administration acts and anti-money
laundering work of financial institutions, and maintaining the financial order, the present Provisions are formulated according to
the Anti-money Laundering Law of the People’s Republic of China, Law of the People’s Republic of China on the People’s Bank of China
and other relevant laws and administrative regulations.

Article 2

The present Provisions shall be applicable to the following financial institutions established within the territory of the People’s
Republic of China according to law,

(1)

commercial banks, urban credit cooperatives, rural credit cooperatives, postal savings agencies, policy banks;

(2)

securities companies, futures brokerage companies, fund management companies;

(3)

insurance companies, insurance asset management companies;

(4)

affiance investment companies, financial asset management companies, finance companies, financial leasing companies, auto financing
companies, currency brokerage companies; and

(5)

other financial institutions determined and announced by the People’s Bank of China.

The present Provisions regarding the anti-money laundering supervision and administration through financial institutions shall be
applied to institutions undertaking foreign exchange, payment and settlement businesses and sale of funds.

Article 3

The People’s Bank of China shall be the administrative department for anti-money laundering of the State Council, which shall supervise
and administer the anti-money laundering work of financial institutions under law. China Banking Regulatory Commission (hereafter
referred to as CBRC), China Securities Regulatory Commission (hereafter referred to as CSRC) and China Insurance Regulatory Commission
(hereafter referred to as CIRC) shall, in light of their respective functions, exercise their duties of anti-money laundering supervision
and administration.

During the process of performing its functions of anti-money laundering, the People’s Bank of China shall cooperate with the relevant
departments, institutions, judicial organs of the State Council.

Article 4

The People’s Bank of China shall, in pursuance of the authorization of the State Council, develop international cooperation in respect
of anti-money laundering on behalf of the Chinese Government. The People’s Bank of China may establish cooperation mechanism with
anti-money laundering institutions of other countries or regions and carry out transnational anti-money laundering supervision and
administration.

Article 5

The People’s Bank of China shall fulfill the following functions of anti-money laundering supervision and administration,

(1)

instituting regulations on anti-money laundering through financial institutions solely or jointly with the CBRC, CSRC and CIRC;

(2)

taking charge of monitoring on anti-money laundering of funds in RMB and in foreign currencies;

(3)

supervising and inspecting the performance of anti-money laundering obligations by financial institutions;

(4)

investigating the doubtful transactions within its scope of functions;

(5)

making report to the investigation organ on any transaction involved in any anti-money laundering crime;

(6)

exchanging the relevant anti-money laundering information and materials with overseas anti-money laundering institutions according
to relevant laws and administrative regulations; and

(7)

other functions as prescribed by the State Council.

Article 6

The People’s Bank of China shall establish China Anti-money Laundering Monitoring and Analyzing Center, which shall exercise the
following functions under law:

(1)

accepting and analyzing reports on large-sum transactions in RMB or in foreign currencies, and reports on doubtful transactions;

(2)

establishing a national anti-money laundering database to properly preserve the information on large-sum transactions and doubtful
transactions as reported by financial institutions;

(3)

making reports on the analysis results to the People’s Bank of China according to the relevant provisions;

(4)

requiring financial institutions to timely supplement and correct the reports on large-sum transactions in RMB or in foreign currencies
as well as on doubtful transactions;

(5)

exchanging information and materials with relevant overseas institutions upon approval of the People’s Bank of China; and

(6)

other functions as prescribed by the People’s Bank of China.

Article 7

The People’s Bank of China and its functionaries shall keep confidential of the information that they have obtained during the process
of fulfilling the anti-money functions, and may not provide the said information externally in violation of provisions.

China Anti-money Laundering Monitoring and Analyzing Center and its functionaries shall keep confidential the clients’ identity materials
and information on large-sum transactions and doubtful transactions, which have been obtained during the process of fulfilling their
anti-money laundering functions, and may not provide the aforesaid materials or information to any entity or individual unless it
(he) is required to do so by law.

Article 8

Financial institutions or its branch institutions shall establish a sound internal control system of anti-money laundering under
law, establish a special anti-money laundering department or designate an internal department to be responsible for the anti-money
laundering work, formulate internal operating procedures and control measures for anti-money laundering and conduct training on the
staff members in anti-money laundering so as to enhance the anti-money laundering capability.

The person-in-charge of a financial institution or its branch shall be responsible for the effective implementation of the internal
control rules of anti-money laundering.

Article 9

Financial institutions shall establish and implement client ID identifying system according to relevant provisions.

(1)

Identifying the ID of any client who requires to establish the business relationship or transacts an one-off financial business above
the prescribed amount, requiring the client to show its (his) genuine and valid identity certificate or any other identity certification
document, checking against and registering it, and timely updating the client’s ID information if it is changed;

(2)

realizing the purpose and nature of the transaction of the client and effectively identify the beneficiary of the transaction;

(3)

re-identifying the ID of the client if it finds any evidence of abnormity or if it has any doubt about the genuineness, validity and
completeness of the client’s identity materials it has obtained; and

(4)

guaranteeing that any overseas financial institution, with which it has an agency relationship or similar relationship, can effectively
identify the ID of clients and may obtain the clients’ identity information from the said overseas financial institution.

The concrete implementation measures as prescribed in the preceding paragraph shall be formulated by the People’s Bank of China in
conjunction with the CBRC, CSRC and CIRC.

Article 10

Financial institutions shall, within the prescribed time limit, properly preserve the clients’ identity materials, as well as the
relevant materials which can reflect each transaction, such as the data, business vouchers, account books and etc.

The concrete implementation measures as prescribed in the preceding paragraph shall be jointly formulated by the People’s Bank of
China and the CBRC, CSRC and CIRC.

Article 11

Financial institutions shall make reports to China Anti-money Laundering Monitoring and Analyzing Center on any large-sum transaction
in RMB or in a foreign currency or on any doubtful transaction.

The concrete implementation measures as mentioned in the preceding Paragraph shall be formulated by the People’s Bank of China separately.

Article 12

The People’s Bank of China shall, jointly with the CBRC, CSRC and CIRC, direct the self-disciplinary organization of the financial
sector to formulate guidelines on the anti-money laundering work.

Article 13

Where any financial institution finds any suspected crime during the process of fulfilling the anti-money laundering obligations
, it shall timely report it to the local branch of the People’s Bank of China and to the local public security organ.

Article 14

Financial institutions and their staff members shall assist the judicial organ and administrative law enforcement organ to crack
the money laundering activities.

Overseas branch institutions of financial institutions shall keep to the anti-money laundering provisions of the countries or regions
where they are located and cooperate with the anti-money laundering institutions of the countries or regions.

Article 15

Financial institutions and their staff members shall keep confidential the clients’ ID materials and transaction information that
they have access to during the process of fulfilling the anti-money laundering obligations, and may not provide any material or transaction
information any entity or individual unless it is provided for in any law.

Financial institutions and their staff members shall keep confidential the anti-money laundering information on reporting doubtful
transactions and assisting the People’s Bank of China to investigate doubtful transactions, and may not violate the provisions to
provide such information to its clients or any other person.

Article 16

A financial institution or any of its staff members, who makes any report of large-sum transaction or doubtful transaction, shall
be protected by law.

Article 17

Financial institutions shall, in accordance with the provisions of the People’s Bank of China, submit the anti-money laundering statistical
statements, information materials as well as the anti-money laundering contents in the audit reports.

Article 18

The People’s Bank of China and its branch institutions may, in light of the demands for fulfilling the anti-money laundering functions,
take the following measures to carry through on-the-spot anti-money laundering inspections:

(1)

to carry through the inspection by entering into a financial institution;

(2)

to inquire the staff members of a financial institution about the relevant information and require them to make explanations on the
inspection items;

(3)

to consult and copy the documents and materials related to inspection items of a financial institution, and seal up and preserve the
documents and materials that are likely to be moved away, destroyed, concealed or altered; and

(4)

to check the system by which a financial institution mange the business data through computer.

The People’s Bank of China or any of its branch institutions shall, before conducting an inspection on the spot, fill out an examination
and approval form for on-the-spot inspection, which shall state the inspection object, contents, time arrangement, etc. and which
may not be implemented until it is approved by the person-in-charge of the People’s Bank of China or of its branch.

To conduct an on-the-spot inspection, there shall be not less than 2 inspectors, who shall show their law enforcement certificates
and inspection notices. In case the number of inspectors is less than 2, or the inspectors fail to show their law enforcement certificates
or inspection notice, the financial institution shall be enpost_titled to reject the inspection.

The People’s Bank of China or its branch shall, after an on-the-spot inspection, make a written document of opinions on the on-the-spot
inspection, affix its seal to it and serve it on the institution inspected. The inspection information, evaluation, improvement suggestions
and measures shall be included therein.

Article 19

The People’s Bank of China or any of its branch institutions may, in light of the demands for performing the anti-money laundering
functions, make conversations with the directors and senior managers of the financial institution and require them to make explanations
on the important items in respect of the financial institution’s fulfilling the anti-money laundering obligation.

Article 20

After the People’s Bank of China conducts an on-the-spot inspection over a financial institution, it may, where it is necessary,
notify the CBRC, CSRC and CIRC of the inspection result.

Article 21

Where the People’s Bank of China or any of its branch institutions at the provincial level finds any doubtful transaction and needs
to investigate and verify it, it may consult the client’s account, transaction records and other relevant materials on financial
institution. The financial institution and its staff members shall be cooperative.

The term ￿￿the People’s Bank of China or its branch institutions at the provincial level￿￿ includes the headquarters of the People’s
Bank of China, Shanghai Headquarter of the People’s Bank of China, the branches, business departments, central sub-branches in provincial
capitals and central sub-branches in deputy-provincial cities.

Article 22

When the People’s Bank of China or any of its branch institutions at the provincial level investigates any doubtful transaction,
it may inquire the staff members of the financial institution on the relevant information and require them to make explanations about
the inspection items, consult and copy the financial institution’s documents and materials related to the inspection items, and seal
up and preserve the documents and materials that are likely to be moved away, destroyed, concealed or altered.

To investigate a doubtful transaction, there shall be not less than 2 inspectors, who shall show their law enforcement certificates
and the investigation notice issued by the People’s Bank of China or its branch institution at the provincial level. The consultation,
copying or sealing up of the client’s account information, transaction records and other relevant information on the financial institution
under investigation shall be subject to the approval of the person-in-charge of the People’s Bank of China or of its branch institution
at the provincial level. In case any of the investigators violates the prescribed procedures, the financial institution may have
the right to reject the investigation.

Inquiry notes shall be made for inquiries and shall be delivered to the interviewees for verification. Where there is any omission
or error, the interviewees may request for supplement or correction. After the interviewees confirm the transcripts as inerrant,
they shall affix their signatures or seals to the notes, so do the investigators.

When sealing up any document or material for preservation, the investigators shall, jointly with the on-the-spot staff members of
the financial institution, make careful check and issue a checklist in duplicate on the spot, which shall bear the signatures or
seals of the investigators and of the staff members of the financial institution on the spot. And one copy shall be kept by the financial
institution and the other be attached to the case file for reference.

Article 23

Where the doubt of money laundering still exists after investigation, the case shall be reported to the spying organ which has jurisdiction
immediately. Where the client requests for an outbound transfer of the fund in the account involved in the investigation, the financial
institution shall report it to the local branch institution of the People’s Bank of China immediately. Upon approval of the pincipal
of the People’s Bank of China, the People’s Bank of China may take temporary freezing measures and shall make a written notice to
the financial institution, which shall execute the aforesaid notice as soon as it receives it.

Where the investigation organ believes it necessary to continue the freezing after it receives the report of the case, the financial
institution shall be cooperative after it receives from the investigation organ a notice of continuing the freezing. Where the investigation
organ deems it unnecessary to continue the freezing, the People’s Bank of China shall notify the financial institution to cancel
the temporary freezing as soon as it receives from the investigation organ a notice of lifting the freezing.

The temporary freezing may not exceed 48 hours. If the financial institution fails to receive a notice of continuing the freezing
within 48 hours after it takes temporary freezing measures as required by the People’s Bank of China, it shall immediately lift the
temporary freezing.

Article 24

Where any of the staff members of the People’s Bank of China or of its branch institutions, who is engaged in anti-money laundering
work, commits any of the following acts, he shall be given an administrative sanction,

(1)

violating the provisions to make any inspection or investigation or take any temporary freezing measure;

(2)

divulging any state secret, commercial secret or personal privacy, which he has accessed to during the process of his anti-money laundering
work;

(3)

violating the provisions to impose any administrative punishment on any relevant institution or personnel; or

(4)

any other act contrary to his duties.

Article 25

Where a financial institution violates the present Provisions, the People’s Bank of China or its branch institutions and sub-branches
at the prefecture level or above, shall punish it according to Articles 31 and 32 of the Anti-money Laundering Law of the People’s
Bank of China. And in light of different circumstances, the CBRC, CSRC or CIRC may be proposed to take the following measures,

(1)

to order the financial institution to stop the business for rectification, or to revoke its business license;

(2)

to disqualify the directly liable directors, senior managers and other directly liable persons from assuming their respective positions,
and to prohibit them from working in the financial sector; and

(3)

to order the financial institution to give a disciplinary sanction to the directly liable directors, senior managers and other directly
liable persons.

Where a sub-branch of the People’s Bank of China of a county (city) finds any financial institution violating thee present Provisions,
it shall report to the People’s Bank of China’s branch institution at the next higher level, which shall punish the violators or
advance a proposal according to the provisions of the preceding Paragraph.

Article 26

In case the People’s Bank of China or any of its branch institutions and sub-branches at the prefecture level or above, gives an
administrative punishment to a financial institution in violation of the present Provisions, it shall abide by the Procedural Provisions
of the People’s Bank of China on Administrative Punishments.

Article 27

The present Provisions shall enter into effect as of January 1, 2007. The Provisions on the Anti-money Laundering through Financial
Institutions, which was promulgated by the People’s Bank of China on January 3, 2003, shall be abolished simultaneously.



 
The People’s Bank of China
2006-11-14

 






CIRCULAR OF THE GENERAL OFFICE OF THE MINISTRY OF COMMERCE CONCERNING THE IMPLEMENTATION OF THE 11TH FIVE-YEAR DEVELOPMENT PLAN FOR THE DOMESTIC TRADE

Circular of the General Office of the Ministry of Commerce concerning the Implementation of the 11th Five-year Development Plan for
the Domestic Trade

Shang Jian Zi [2006] No.126

The competent commerce departments of each province, autonomous region, municipality directly under the Central Government, city specifically
designated in the state plan and Xinjiang Production and Construction Corps:

This Ministry, under the Outline of the 11th Five-year Development Plan for the National Economy and Society of the People’s Republic
of China and according to the State’s uniform arrangement, promulgated the 11th Five-year Development Plan for the Domestic Trade
(hereinafter referred to as the Plan) on July 27, 2006. For the purpose of making a good job in the implementation of the Plan, issues
concerned are notified as follows.

1.

Study earnestly and improve understanding

The Plan is the programmatic document to guide the development of our country’s circulating industries for five years or for an even
longer time. It is ranked as a special plan of State level. The competent departments in all localities shall pay high attention
to, study earnestly, and master profoundly the guiding ideology of the Plan. They shall understand sufficiently the importance of
implementation of the Plan in giving further play to the domestic trade in respect of inducting production, enlarging consumption,
increasing employment, prompting the development of economy and society and improving people’s living standard. And they shall elevate
the consciousness of the implementation of the Plan and take it as the key work to develop domestic trade.

2.

Arrange overall and implement strictly

The commerce departments in each locality shall, in accordance with the Plan, strengthen the leadership, plan deliberately, arrange
thoroughly, do a good job in implementing level by level and guarantee that liabilities and measures be properly used. In light of
the actual stations of each locality, they shall study and formulate the medium and long-term development plans for the domestic
trade of this region as soon as possible, and in principle, the formulation and publication of these medium and long-term plans shall
be completed in the first half of 2007 and be reported to this Ministry for archival file. On this base, they shall accelerate the
study and formulation of the policies and measures to promote the domestic trade of their regions, release the guiding list of encouraging
and restricting development of construction projects of domestic trade in time and lead social funds to follow in a right way, so
as to guarantee the implementation of the Plan in a successful way.

3.

Reinforce coordination and follow to evaluate

The commerce departments of each locality shall reinforce coordination with related departments, set up an inter-department coordination
mechanism jointly with departments concerned, cooperate closely, make a jointly force to push forward the implementation of the Plan.
They shall establish an annual following supervision system, medium-term evaluation system and medium-term check system, enhance
supervision and check on the implementation of the Plan, pay attention to summarize and study the new circumstances occurring during
the implementation of the Plan, and resolve new problems. And they shall cooperate the Ministry actively to check and supervise the
implementation of the Plan and report the conduction situation and summery of the implementation of the Plan in the previous year
at the beginning of each year.

The General Office of the Ministry of Commerce

November 28, 2006



 
The General Office of the Ministry of Commerce
2006-11-28

 






ANNOUNCEMENT OF THE GENERAL ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE ON CANCELING THE REGISTRATION QUALIFICATIONS AS OVERSEAS WASTE MATERIALS SUPPLIERS OF 11 ENTERPRISES OF HONG KONG REGION






Announcement of the General Administration of Quality Supervision, Inspection and Quarantine on Canceling the Registration Qualifications
as Overseas Waste Materials Suppliers of 11 Enterprises of Hong Kong Region

[2006] No.180

Recently, in the on-the-spot inspections of the follow-up supervision and administration implemented on the overseas imported waste
materials suppliers of Hong Kong Region of China, the General Administration of Quality Supervision, Inspection and Quarantine found
that the registration materials of the following 11 enterprises seriously fall short of the actual status, thus they fail to meet
the basic conditions for acquiring the registration qualifications. In order to protect the environment of China, prevent the poisonous
and deleterious waste from transferring from abroad to China, maintain the trading order of imported waste materials, in accordance
with the provisions of Article 53 of the Implementing Regulations for the Law of the People’s Republic of China on Inspection of
Import and Export Commodity and Announcement No.48, 2004 of the General Administration of Quality Supervision, Inspection and Quarantine
of the People’s Republic of China, an announcement is hereby made as follows:

I.

As of the date of promulgation of the present Announcement, the registration qualifications as overseas imported waste materials suppliers
of the following enterprises shall be cancelled.



￿￿￿￿ҳ 1

￿￿

￿￿

Name of the Enterprise

￿￿

Registration Number

1

NCU GROUP LIMITED

￿￿

A344040368

2

E.J.WRIGHT LIMITED

￿￿

A344040369

3

GLORY TIME (H.K.) LIMITED

￿￿

A344040377

4

LOGIC ADD LIMITED

￿￿

A344040378

5

DEO GRATIAS (H.K.) CO.,
LIMITED

￿￿

A344040387

6

SOUTHERN CHINA RESOURCES CO.
LTD.

￿￿

A344040391

7

MINGJIA DEVELOPMENT CO. LTD.

￿￿

A344040482

8

HUIBAO INTERNATIONAL MATERIALS
CO. LTD

￿￿

A344040510

9

JIANHUI METALS TRADE CO. LTD.

￿￿

A344040567

10

JIHAO CO. LTD.

￿￿

A344040569

11

ZHENGJI TRADE CO. LTD.

￿￿

A344040794

￿￿￿￿II. Each local inspection and quarantine
institution shall hold the pass strictly, and refuse to accept the applications
for
inspection on the waste materials supplied by the enterprises listed above
whose registration qualifications have been cancelled.

The General Administration of Quality
Supervision, Inspection and Quarantine
December 8, 2006



ANNOUNCEMENT NO.72, 2006 OF THE GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA

Announcement No.72, 2006 of the General Administration of Customs of the People’s Republic of China

No.72, 2006

In accordance with Anti-dumping Regulations of the People’s Republic of China, the Tariff Committee of the State Council decided to
impose anti-dumping duties on imported hydrazine hydrate products originated from Japan, South Korea, the US and France as from Jun
17, 2005, the duration of which is 5 years. To this end General Administration of Customs released Announcement No.26, 2006 in accordance
with decision of the Tariff Committee of the State Council and relevant announcement released by Ministry of Commerce, clarifying
related regulations on implementation of anti-dumping measures. Recently a part of domestic follow-up enterprises of hydrazine hydrate
and overseas major exporter, French company Arkema submitted application to Ministry of Commerce, applying not to impose anti-dumping
duties on 100% hydrazine hydrate products. Upon investigation, Ministry of Commerce signed price commitment with French company Arkema,
and released Announcement No.94. Related matters in the implementation are now announced as follows:

1.

as from Dec 15, 2006, in case the declared prices of imported 100% hydrazine hydrate products originated from French company Arkema
are not lower than negotiated reference prices in the commitment (hereinafter referred to as “negotiated reference price”) and comply
with Article 2 of this Announcement, Customs will impose customs duties and VAT of import link in line with current regulations,
and anti-dumping duties will be exempted. However, incase the declared prices is not lower than negotiated reference price, besides
the customs duties and VAT of import link, Customs will levy anti-damping duties in line with rate stipulated in Announcement No.26,
2005 of General Administration of Customs.

2.

Importers importing 100% hydrazine hydrate products originated from French company Arkema must provide certificate of origin and commercial
invoices from the original manufacturer besides the export certification from Arkema. As regards those can provide certificate of
origin and commercial invoices, but fail to provide export certification, Customs will levy anti-damping duties in line with rate
stipulated in Announcement No.26, 2005 of General Administration of Customs no matter declared prices are lower that negotiated reference
prices or not.

3.

Related issues on anti-dumping duties on imported 100% hydrazine hydrate products originated from French company Arkema of processing
trade bonded import are subject to Announcement No.9, 2001 of General Administration of Customs of the People’s Republic of China
and Decree No.111 of General Administration of Customs of the People’s Republic of China.

4.

Related matters on hydrazine hydrate products originated from French company Arkema of other concentration rate are subject to Announcement
No.26, 2005 of General Administration of Customs.

Appendix: Announcement No.94, 2006 of Ministry of Commerce of the People’s Republic of China (Please refer to China Foreign Trade
and Economic Cooperation Gazette [Issue No.78, 2006])

The General Administration of Customs

Dec 12, 2006

 
The General Administration of Customs
2006-12-12

 



CIRCULAR OF THE GENERAL OFFICE OF THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ON THE WORK ARRANGEMENT OF SPOT CHECKS FOR ACCEPTANCE OF SPECIAL LAW ENFORCEMENT INSPECTION OF THE REGISTRATION AND ADMINISTRATION OF FOREIGN INVESTMENT

Circular of the General Office of the State Administration for Industry and Commerce on the Work Arrangement of Spot Checks for Acceptance
of Special Law Enforcement Inspection of the Registration and Administration of Foreign Investment

Ban Zi [2006] No. 76

The Administrations for Industry and Commerce of all provinces, autonomous regions and municipalities directly under the Central Government:

In accordance with the arrangements of the Circular on Organizing and Carrying out the Inspection of Law Enforcement in Various Parts
for the Year 2006(Gong Shang Ming Dian [2006] No. 35), the State Administration for Industry and Commerce decides to carry out spot
checks for acceptance on the law enforcement situation in all parts in mid-January, 2007. And related work arrangements are herby
notified as follows:

1.

Contents and Appraisal Criteria of Spot Checks for Acceptance

(1)

The registration of authorized bureaus in accordance with the law.

The emphasis shall be placed on the examination and approval of the name, the enforcement of industrial policies (including pre-approval),
the examination of registration materials, etc. The above contents shall be examined one by one and be appraised as level A, level
B or level C in view of specific circumstances.

(2)

The supervision and administration of authorized bureaus.

The emphasis shall be placed on the case-handling in everyday routine supervision in accordance with relevant provisions, classified
supervision and administration of enterprise credit, and the investigation and prosecution of unlawful behaviors in annual inspection.
The above contents shall be examined one by one and be appraised as level A, level B or level C in view of specific circumstances.

(3)

The implementation of the Measures for Authorized Registration of Foreign-invested Enterprises by authorized bureaus.

The emphasis shall be placed on whether the authorized bureau is in conformity with authorized registration conditions and whether
there is registration in excess of authority. The above contents shall be examined one by one and be appraised as level A, level
B or level C in view of specific circumstances.

(4)

The implementation of special law enforcement task, the establishment of foreign investment monitoring system, and the improvement
of law enforcement effect in accordance with Document No. 146 by the State Administration on the part of the authorized bureaus.

The emphasis shall be placed on the organization and guidance work by authorized bureaus at the provincial level within the whole
province, the revision of the present software, the sorting-out, regulation and supplementation recording of original data, and the
collection, transformation and updating of data by authorized bureaus. The above contents shall be examined one by one and be appraised
as level A, level B or level C in view of specific circumstances.

See Appendix for the Form of Examination Contents and Appraisal Criteria

2.

Means of Spot Checks for Acceptance

(1)

Hearing the report by administrations for industry and commerce at the provincial level and relevant local administrations for industry
and commerce on the law enforcement of foreign investment registration.

(2)

Organizing discussions among foreign investment registration officials on relevant problems in law enforcement.

(3)

Spot-check of archives; and

(4)

Holding conferences by members of inspection teams to appraise and mark the law enforcement activities.

3.

The Scope of Spot Checks for Acceptance

Twelve provinces altogether throughout the country shall be spot checked. Two authorized bureaus in each province shall be chosen,
and 20 copies of foreign investment registration archives of each bureau shall be checked at random (including 15 registration archives
and 5 case investigation and prosecution archives).

4.

Organization, Implementation and Detailed Arrangements for Spot Checks for Acceptance

Six working groups shall be divided with 6 to 7 persons in each. Each group shall be responsible for the spot check work of 2 provinces,
in which, the person in charge of the regulations department or that in charge of the registration bureau for foreign-invested enterprises
shall assume the team leader. Members of the team group shall include 1 division chief in charge of the local law department, 3 division
chiefs in charge of local foreign investment departments and 1 retinue official from the regulations department or the registration
bureau for foreign-invested enterprises.

Provinces and Time for Spot Check:

Group 1: Heilongjinag, Liaoning

Group 2: Shannxi, Gansu

Group 3: Hunan, Hubei

Group 4: Guangdong, Hainan

Group 5: Henan, Jiangxi

Group 6: Yunnan, Sichuan

The spot check for acceptance shall start as of January 18, 2007 and end up on January 28, 2007.

5.

Summarization of the Spot Check for Acceptance

After the completion of the spot check for acceptance, each group shall write out a report. In the end, the Registration Bureau for
Foreign-invested Enterprises of the State Administration for Industry and Commerce shall formulate, based on the report of each groups
and that of the local authorities, a final report on the law enforcement situation. The local authorities shall also work out relevant
work summaries and deliberate on problems discovered during the law enforcement inspection so as to further promote and improve the
foreign investment registration work and enhance administration in accordance with the law.

The Administration for Industry and Commerce in such municipalities directly under the Central Government as Beijing, Shanghai, Tianjin
and Chongqing, and such provinces as Hebei, Shanxi, Inner Mongolia, Jilin, Shandong, Jiangsu, Anhui, Zhejiang, Fujian, Guangxi, Guizhou,
Tibet, Xinjiang, Ningxia and Qinghai, shall be required to submit the name list of the persons in charge of the Foreign Investment
Department who shall take part in the spot check for acceptance work to the Instruction Division of the Registration Bureau for Foreign-invested
Enterprises of the State Administration for Industry and Commerce.

Tel: 010-68057995

The Administration for Industry and Commerce in Beijing, Chongqing, Hebei, Inner Mongolia, Shandong and Zhejiang are required to submit
the name list of the persons in charge of the Law Department who shall take part in the spot check for acceptance work to the Case
Approval and Hearing Division of the Regulations Department of the State Administration for Industry and Commerce.

Tel: 010-68028434

Other matters involved shall be otherwise notified.

General Office of the State Administration for Industry and Commerce

December 21, 2006



 
General Office of the State Administration for Industry and Commerce
2006-12-21

 






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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...

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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