CIRCULAR OF THE FOREIGN FUND DEPARTMENT UNDER THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ON REPORTING LICENSE USE STATUS OF FOREIGN-FUNDED ENTERPRISES

Circular of the Foreign Fund Department under the State Administration for Industry and Commerce on Reporting license Use Status of
Foreign-funded Enterprises

All foreign fund offices under Administration for Industry and Commerce of each province, autonomous region and municipality directly
under the Central Government:

As annual examination and exchange of new-version business license for foreign-funded enterprises are ongoing all over the country
for now, you are required to report the following information to this Department in the unit of province immediately after receiving
this Circular so as to make a plan as a whole of the printing and distribution of licenses of foreign-funded enterprises and guarantee
license exchange can be done as usual during the annual examination period.

(1)

The actual number of foreign-funded enterprises with a status of legal person and branches thereof as well as the growth rate for
the last two years.

(2)

The actual number of enterprises from foreign countries (regions) and the permanent representative offices thereof that engage in
production and operation in China as well as the growth rate for the last two years.

(3)

The drawing methods for each kind of licenses of foreign-funded enterprises (drawing uniformly by each province, autonomous region
and municipality directly under the Central Government or self-drawing by an authorized administration).

(4)

Cancellation rate of each kind of license in the process of use.

(5)

Stock situation of the new-version business license.

You shall, prior to April 30, gather the aforesaid items and fill them in the Statistics of License Use of Foreign-funded Enterprises.
In the case of self-drawing by authorized administration, the above-mentioned Statistics shall be attached separately, and then reported
to the Foreign Fund Department under the State Administration for Industry and Commerce via electronic documents.

E-mail: wz@saic.gov.cn

Contact person: Wang Junfeng, Comprehensive Office under the Foreign Fund Department

Tel: 010-68057996 or 010-88650408

Appendix: Statistics of License Use of Foreign-funded Enterprises (omitted)

The Foreign Fund Department under the State Administration for Industry and Commerce

April 10, 2007

The State Administration for Industry and Commerce
2007-04-10

ANNOUNCEMENT NO. 43, 2007 OF MINISTRY OF COMMERCE AND GENERAL ADMINISTRATION OF CUSTOMS

Announcement No. 43, 2007 of Ministry of Commerce and General Administration of Customs

[2007] No. 43

In accordance with the Measures on the Administration of Automatic Import Licenses of Goods, Ministry of Commerce made the following
adjustment to the List of Administration of Automatic Import Licenses on Goods, 32 items of the Administration of Automatic Import
Licenses are eliminated. The list of the eliminated items is now promulgated and shall be put into effect as from June 10, 2007.

Appendix: The Eliminated List of Administration of Automatic Import Licenses on Goods(omitted)

Ministry of Commerce

General Administration of Customs

May 20, 2007

Ministry of Commerce, General Administration of Customs
2007-05-20

CIRCULAR OF THE GENERAL ADMINISTRATION OF CUSTOMS ON RELEVANT ISSUES CONCERNING POLICIES OF IMPORT DUTY FOR WORLD EXPO 2010 SHANGHAI

the General Administration of Customs

Circular of the General Administration of Customs on Relevant Issues concerning Policies of Import Duty for World Expo 2010 Shanghai

Shu Shui Fa [2006] No.3

January 4, 2006

Guangdong Branch of the General Administration of Customs, special commissioners’ offices of the General Administration of Customs
in Tianjin and Shanghai, and each customs office directly under the General Administration of Customs,

Preferential policies of import duty will be given to the materials imported for the purpose of holding World Expo 2010 Shanghai (hereinafter
refers to as the World Expo) upon the approval of the State Council. We hereby make the following announcement on the relevant issues
pertinent to the preferential policies of import duty and the implementation thereof:

Specific contents of the preferential policies of import duty

When the Bureau of Shanghai World Expo Coordination imports materials, which are donated by foreign governments and international
organizations to the World Expo, of which the customs duties and value-added tax and consumption tax in the import linkage shall
be exempted.

Customs duties and import linkage value-added tax shall be exempted on non-for-sale design programs, such as models, maps, plates,
optical discs, design specifications and microprints imported by Shanghai World Expo (Group) Co., Ltd. for the purpose of the construction
of exhibition centers and exhibition halls for the World Expo.

Customs duties and import linkage value-added tax shall be exempted in the light of the provisions of relevant policies on the equipment
imported by Shanghai World Expo (Group) Co., Ltd. by means of general trade, which cannot be produced in China or the performance
of domestic products cannot meet the requirements, and is used specifically for the construction of exhibition centers and exhibition
halls for the World Expo and cannot be separated from the fixed installments of exhibition centers and exhibition halls. The range
and quantity of the import facilities that enjoy the tax exemption policies shall be examined and ascertained by the Ministry of
Finance through negotiation with the relevant departments.

The exhibits and equipment imported by overseas exhibitors during the period of the World Expo shall be treated in light of the provisions
on temporary entry goods when the import occurs. If they are re-transported out of China when the World Expo comes to the end, they
shall be exempted from customs duties and import linkage value-added tax; if they are reserved to be used or sold off, the overseas
exhibitors shall go through official import formalities and pay customs duties and import linkage value-added tax on them in the
light of the regulations.

The non-for-sale documents, such as publicity materials and designs, pertinent to the World Expo, and only used within the park areas
of the World Expo without flowing into the domestic market that are imported by overseas exhibitors shall be managed in the light
of the customs provisions, and shall be exempted from customs duties and import linkage value-added tax within reasonable quantity.

Within the park areas of the World Expo, customs duties and import linkage value-added tax shall be exempted on building and decoration
materials and fixed installation equipment that must be imported by overseas exhibitors for the construction and collocation of the
exhibition halls. The range and quantity of building and decoration materials and fixed installment equipment that enjoy tax exemption
policies shall be examined and ascertained by the Ministry of Finance through negotiation with the relevant departments.

For the purpose of holding exhibition activities within the park areas of the World Expo, the national artistic works and special
cuisine foods that must be imported by the Bureau of International Expositions, participating countries, and regional delegations
shall be exempted from import duties and value-added tax and consumption tax in the import link within the scope of reasonable quantity
and amount. The specific varieties, quantities, and amounts of import tax-exemption commodities shall be examined and ascertained
by the Ministry of Finance through negotiation with the relevant departments.

II.

Relevant problems in the implementation of the policies

The formalities for the examination and approval of tax exemption on import materials for the World Expo shall be brought into the
Tax Deduction and Exemption Management System of the customs for management. Upon the strength of the Certificate of Tax Collection
and Exemption on Import and Export Goods issued by the Shanghai Customs House, the customs house at the place of import shall carry
out the formalities for tax-exemption admission . The ways of supervision over the import materials for the World Expo shall consist
of: “General Trade” (Code No.0110), “Goods Imported or Exported Temporarily” (Code No.2600), “Entry/Exit Exhibits” (Code No.2700),
and “Gratuitous Aid Materials of Countries and International Organizations” (Code No.3511), etc.. The nature of collection and exemption
shall consist of: “Gratuitous Aid” (Code No.201) and “Reduction and Exemption upon State Approval” (Code No.898), etc..

Where there involves in the aforesaid preferential policies of import duty the range, quantity, and amount of tax-exemption commodities,
which shall be examined and ascertained by the Ministry of Finance together with the relevant departments, the customs houses shall
carry out discharge formalities for the relevant import materials based on the duty guarantee, and after the scope, quantity and
amount of tax-exemption commodities have been ascertained, carry out the relevant formalities for settlement of a case in light of
the provisions.

The preferential policies of import duty for the World Expo shall go into effect as of the day of December 7, 2005. The tax money
collected on the relevant materials prior to this date shall not be refunded, and the duty deposit having been collected shall be
transferred to tax. If the collected tax money or the collected duty deposit on relevant materials meets the provisions of item (1)
or (2) of the aforesaid preferential tax policies, it shall be refunded after the relevant formalities have been gone through from
December 7, 2005 till the date of receiving this Notice. If it is necessary to verify the range, quantity, and amount of tax-exemption
commodities for other materials, after the related contents have been ascertained, the formalities for refunding tax or refunding
duty deposit shall be gone through in accordance with the provisions.

If encountering any problem in the implementation, please reflect it to the Department of Tariff of the General Administration of
Customs in time.

It is hereby announced.

the General Administration of Customs
2006-01-04

MEASURES OF CHINA BANKING REGULATORY COMMISSION FOR THE IMPLEMENTATION OF ADMINISTRATIVE LICENSING MATTERS ON CHINESE INVESTMENT COMMERCIAL BANKS

China Banking Regulatory Commission

Decree of China Banking Regulatory Commission

No. 2

The Measures of China Banking Regulatory Commission for the Implementation of Administrative Licensing Matters on Chinese investment
Commercial Banks adopted at the 40th chairmen’s meeting of China Banking Regulatory Commission on November 10, 2005, are hereby promulgated
and shall enter into effect as of the day of February 1, 2006.

Chairman, Liu Mingkang

January 12, 2006

Measures of China Banking Regulatory Commission for the Implementation of Administrative Licensing Matters on Chinese investment Commercial
Banks

Chapter I General Provisions

Article 1

In order to regulate the acts of China Banking Regulatory Commission (hereinafter referred to as the CBRC) and their dispatched offices
in implementing the administrative licensing on Chinese investment commercial banks, make clear the administrative licensing matters,
conditions, operational flows and terms, and protect the legitimate rights and interests of the applicants, according to the Banking
Supervision Law of the People’s Republic of China, the Administrative License Law of the People’s Republic of China, the Law of the
People’s Republic of China on Commercial Banks and other laws, administrative regulations and the relevant decisions of the State
Council, these Measures are formulated.

Article 2

The “Chinese investment commercial banks” mentioned in these Measures shall include the state-owned commercial banks, joint-equity
commercial banks, city commercial banks and urban credit cooperatives joint-equity limited companies, etc.

Article 3

In accordance with the Measures and the Provisions of China Banking Regulatory Commission on the Procedures for the Implementation
of Administrative Licensing, the CBRC and its dispatched offices shall bring into effect the administrative licenses to Chinese investment
commercial banks .

Article 4

The following matters about Chinese investment commercial banks shall be under the control of the administrative licensing of the
CBRC or its dispatched office: the establishment, modification or termination of the institution, the adjustment of the business
range, the addition of new varieties of business, and the qualifications for holding the positions of directors and senior managers,
etc.

Article 5

The applicant shall submit the application documents in the light of the Catalogue and Requirements for the Formats of the Application
Documents for the Administrative Licensing Matters of China Banking Regulatory Commission.

Chapter II Establishment of Institutions

Section I Establishment of Legal Person Institutions of Joint -equity Commercial Banks

Article 6

For the establishment of a legal person institution of a joint -equity commercial bank, an applicant shall meet the conditions as
follows:

(1)

Its articles of association shall accord with the Company Law of the People’s Republic of China (hereinafter referred to as the Company
Law) and the Law of the People’s Republic of China on Commercial Banks (hereinafter refers to as the Law on Commercial Banks);

(2)

Registered capital shall be paid-in registered capital and no less than one billion Yuan or equivalent convertible currency;

(3)

Directors and senior managers who meet the qualification conditions for holding their respective positions are needed as well as qualified
operational personnel familiar with the banking business;

(4)

Right organizational institutions and management systems; and

(5)

A business place, safety protection measures and other relevant facilities suitable for its business operations.

Article 7

For the establishment of a legal person institution of a joint -equity commercial bank, the applicant shall at least meet the following
prudent conditions in addition:

(1)

A good corporate governance structure;

(2)

A right risk management system, and effectively controlling the risks in associated transactions;

(3)

The local people’s government shall not become a shareholder, and not intervene in its daily business operations;

(4)

The qualified foreign institutional investors shall be included in the promoters and shareholders;

(5)

Having a scientific and effective human resources management system as well as professional talents with high qualities;

(6)

Having an effective capital restraint and supplement mechanism; and

(7)

Redounding to dissolve the risks of existing financial institutions and promoting financial stability.

Article 8

As the establishment of a joint -equity commercial bank, eligible promoters shall include such as domestic financial institutions,
overseas financial institutions, domestic non-financial institutions and other promoters recognized by the CBRC.

The “overseas financial institutions” mentioned in the preceding Paragraph shall involve the financial institutions in Hong Kong,
Macao and Taiwan.

Article 9

As a promoter of the legal person institution of a joint -equity commercial bank, a domestic financial institution shall meet the
conditions as follows:

(1)

The capital adequacy ratio of a commercial bank shall not be lower than 8%, and the total amount of capital of a non-bank financial
institution shall not be lower than 10% of the total amount of its risk-weighted assets;

(2)

The balance of its equity investments shall not exceed 50% of its net assets in general ( requirements of combined accounting statements);

(3)

Keeping a favorable balance in the latest 3 accounting years;

(4)

Having a good corporate governance structure, as well as a right and effective internal control system;

(5)

Its main prudent regulatory indices shall meet the regulatory requirements; and

(6)

Other prudent conditions prescribed by the CBRC.

Article 10

As a promoter or strategic investor of the legal person institution of a joint -equity commercial bank, an overseas financial institution
shall meet the conditions as follows:

(1)

In the latest year, its total year-end assets shall be no less than 10 billion US Dollars in general;

(2)

In the latest 2 years, it shall have been appraised as good for its long-term credit by an international rating institution recognized
by the CBRC;

(3)

Keeping a favorable balance in the latest 2 accounting years;

(4)

Its capital adequacy ratio shall reach the average level of capital adequacy ratio for the banking industry at the place of its registration
and shall not be lower than 8%; or the total amount of capital of a non-bank financial institution shall not be lower than 10% of
the total amount of risk-weighted assets is;

(5)

Having a right internal control system;

(6)

The place of its registration shall have a right supervision and management system for the financial institution;

(7)

The country (region), which it is in, shall be in a good economic situation; and

(8)

Other prudent conditions prescribed by the CBRC.

As a promoter or strategic investor of the legal person institution of a joint -equity commercial bank, the overseas financial institution
shall follow the principles of holding shares on the long-term basis, optimizing governance, business cooperation, and competition
withdrawal.

In light of the risk situation of the financial industry and the requirements for the supervision thereof, the CBRC may adjust the
conditions for overseas financial institutions as the promoters prescribed in the preceding Paragraph.

Article 11

The proportion of the shares of a single overseas financial institution as the promoter or strategic investor when investing to a
single Chinese investment commercial bank shall not be more than 20%, and the proportion of the total shares of several overseas
financial institutions as the promoters or strategic investors shall not be more than 25%.

The “proportion of the shares” mentioned in the preceding Paragraph refers to the proportion of the shares held by overseas financial
institutions in the total amount of shares of a Chinese investment commercial bank. The proportion of the shares held by the associated
parties to overseas financial institutions shall be computed together with the overseas financial institutions.

Article 12

As a promoter of the legal person institution of a joint -equity commercial bank, a domestic non-financial institution shall meet
the conditions as follows:

(1)

Having registered at the administrative department for industry and commerce, and owning the legal person qualification;

(2)

Having a good corporate governance structure or an effective organizational management model;

(3)

Having a good social reputation as well as good credit and tax payment records, and repaying the principal and interests of the loans
it owes to the financial institutions on time and in full amount;

(4)

Having a longer period of development and a steady business operational situation;

(5)

Having a stronger management capacity as well as good capital strength;

(6)

Having a good financial situation and having been in a favorable balance in the latest 3 accounting years;

(7)

After the year-end distribution, having the net assets that account for 30% of its total assets (requirements of combined accounting
statements);

(8)

The balance of equity investments shall not be more than 50% of the net assets of the enterprise in general (requirements of combined
accounting statements) except for the investment companies or holding companies prescribed by the State Council;

(9)

Capital sources for buying shares are true and lawful; and

(10)

Other prudent conditions prescribed by the CBRC.

Article 13

An enterprise shall not be a promoter of the legal person institution of a joint -equity commercial bank in any of the circumstances
as follows:

(1)

Having obvious defects in the corporate governance structure or mechanism;

(2)

Having a large number of associated enterprises, complex and obscure in equity relationships, or frequent and abnormal in associated
exchanges;

(3)

Not having a prominent major business, and covering too many industries in its business scope;

(4)

The flow fluctuation of cash is largely influenced by the economic situation;

(5)

The ratio of liabilities or the ratio of financial leverage is higher than the average industry ratio ; and

(6)

Other circumstances that will create significant disadvantage effects to the bank.

Article 14

The establishment of the legal person institution of a joint -equity commercial bank shall include two phases, namely, preparatory
establishment and beginning of business.

Article 15

An application for the preparatory establishment of the legal person institution of a joint -equity commercial bank shall jointly
be submitted to the CBRC by all the promoters for acceptance, examination and decision. The CBRC shall make a written decision on
approval or disapproval within 4 months upon acceptance of the application.

Article 16

The period of preparatory establishment of the legal person institution of a joint -equity commercial bank shall be 6 months as of
the day of the approval decision made. If the preparatory establishment has not been carried out on time, the institution shall submit
an application for postponing the preparatory establishment to the CBRC within 1 month prior to the expiry of the time limit for
preparatory establishment. The CBRC shall make a decision on whether to approve the postponement or not within 20 days as of the
day of receipt of the written application. And the longest period postponed for preparatory establishment shall be 3 months.

Before the expiry of the time limit prescribed in the preceding Paragraph, the preparatory establishment group of the institution
shall submit an application for the beginning of business. If it fails to submit the application within the time limit, the approval
document for preparatory establishment shall be abated and the decision-making organ shall logout the license for preparatory establishment.

Article 17

An application of the legal person institution of a joint -equity commercial bank for the beginning of business shall be submitted
to the CBRC for acceptance, examination and decision. The CBRC shall make a written decision on approval or disapproval within 20
days after acceptance of the application,.

Article 18

After receiving the ratification documents for the beginning of business and obtaining a financial business permit, the legal person
institution of a joint -equity commercial bank shall register at the administrative department for industry and commerce and obtain
a business license.

The legal person institution of a joint -equity commercial bank shall open up its business within 6 months after obtaining the business
license. If it fails to initiate its business within the time limit, the institution shall submit an application for postponing the
beginning of business within 1 month before the expiry of the time limit for the beginning of business, to the CBRC. The CBRC shall
make a decision on whether to approve the postponement or not within 20 days as of the day of receipt of the written application,
and the longest period postponed for the beginning of business shall be 3 months.

If the legal person institution of a joint -equity commercial bank fails to open up its business within the time limit prescribed
in the preceding Paragraph, the ratification documents for the beginning of business shall be abated, and the decision-making organ
shall logout the license for the beginning of business, take back the financial business permit, and make an announcement.

Section II Establishment of Legal Person Institutions of City Commercial Banks

Article 19

The city commercial bank shall be established in a city at or above the prefecture level and meet the conditions as follows:

(1)

Having the articles of association in the light of the Company Law and the Law on Commercial Banks;

(2)

The registered capital shall be no less than 1000 million Yuan and have been paid in, its capital adequacy ratio shall not be lower
than 8%, and its core capital adequacy ratio shall not be lower than 4%;

(3)

The proportion of its badly performing loans shall be no higher than 10%;

(4)

Having senior managers who meet the qualification for holding the positions as well as qualified operational personnel familiar with
the banking business;

(5)

Having a right and effective corporate governance structure and internal control system; and

(6)

The business place, safety protection measures and other relevant facilities suitable for its business operations.

Article 20

An application for establishing the legal person institution of a city commercial bank shall be filed by an urban credit cooperatives
joint–equity limited company after combination and reorganization, and it shall meet the conditions as follows:

(1)

The capital adequacy ratio shall not be lower than 6%, and the core capital adequacy ratio shall not be lower than 3%;

(2)

The proportion of its badly performing loans shall be no higher than 15%, and the total amount of its assets shall be no less than
1.5 billion Yuan;

(3)

Having a good corporate governance structure;

(4)

Having right and effective risk management and internal control systems, and having no serious cases occurred in the latest two years;

(5)

Having a good financial situation and strong profit-making ability. The shareholders’ equities of the former urban credit cooperative
shall be first written off due to its accumulated losses, and the insufficient part shall be complemented by the former shareholders
or the local government in cash. Its per capita assets shall be no less than 6 million Yuan (or 5 million Yuan for an undeveloped
area). The rate of its year-end asset expenses in the latest year before the application is submitted shall be lower than 1.35% in
general, and the rate of its asset profits shall not be lower than 0.2% in general, and the rate of its capital profits shall not
be higher than 8% (the premise for the calculation of profits shall be the sufficient reserves for the losses incurred from all kinds
of loans in that year), and the rate of interests reclaim shall not be lower than 80%;

(6)

Its liquidity ratio, ration of deposits and loans, ration of provisions and other indices shall meet the relevant supervisory requirements;
and

(7)

Having withdrawn sufficient reserves for losses.

Article 21

Establishing a city commercial bank; there shall be eligible promoters that may include: domestic financial institutions, domestic
non-financial institutions, overseas financial institutions and other promoters as recognized by the CBRC. A promoter shall follow
the conditions prescribed in Articles 9 through 13 of these Measures.

Article 22

The establishment of the juridical person institution of a city commercial bank shall include two stages, namely, preparatory establishment
and beginning of the business.

Article 23

An application for the preparatory establishment of the legal person institution of a city commercial bank shall be followed with
the acceptance and preliminary examination of the banking regulatory bureau at the locality where the commercial bank is to be established,
and the examination and decision shall be made by the CBRC. The CBRC shall make a written decision on approval or disapproval within
4 months upon receipt of the entire application documents.

Article 24

The period of preparatory establishment of the legal person institution of a city commercial bank shall be 6 months as of the day
when the decision on approval is made. If the preparatory establishment has not been implemented on time, within 1 month prior to
the expiry of the time limit for preparatory establishment, an application for postponing the preparatory establishment shall be
submitted by the institution to the banking regulatory bureau. The banking regulatory bureau shall make a decision on whether to
approve the postponement or not within 20 days as of the day of receipt of the written application, and the longest period postponed
for preparatory establishment shall be 3 months.

Before the expiry of the time limit prescribed in the preceding Paragraph, the preparatory establishment group of the institution
shall submit an application for the opening of business. If the application fails to be submitted within the time limit, the approval
documents for preparatory establishment shall be abated, and the decision-making organ shall logout the license for preparatory establishment.

Article 25

An application of the legal person institution of a joint -equity commercial bank for the beginning of its business shall be submitted
to the local banking regulatory bureau for acceptance, examination and decision. The banking regulatory bureau shall make a written
decision on approval or disapproval within 2 months after acceptance of the application, and send a copy to the CBRC.

Article 26

After receiving the ratification document for the beginning of business and obtaining a financial business permit, the legal person
institution of a city commercial bank shall register at the administrative department for industry and commerce and obtain a business
license.

The legal person institution of a city commercial bank shall open up its business within 6 months after obtaining the business license.
If the institution fails to open up its business within the time limit, it shall submit an application for postponing the beginning
of business to the CBRC within 1 month prior to the expiry of the time limit for the beginning of business. The CBRC shall make a
decision on whether to approve the postponement or not within 20 days as of receipt of the written application, and the longest period
postponed for the beginning of business shall be 3 months.

If the legal person institution of a city commercial bank fails to open up its business within the time limit prescribed in the preceding
Paragraph, the ratification documents for the beginning of business shall be abated, and the decision-making organ shall logout the
license for the beginning of business, take back the financial business permit and make an announcement.

Section III Establishment of Urban Credit Cooperatives Joint–equity Limited Companies

Article 27

The “establishment of an urban credit cooperatives joint–equity limited company” means that, on the basis of willingness and in the
light of the Company Law, an enterprise legal person which is established upon reorganization and merge of several or one city credit
cooperative(s) within a same city , absorbs public savings, grants loans and handles settlement businesses. This enterprise legal
person shall be a local banking financial institution in the form of joint–equity limited company.

Article 28

For the establishment of an urban credit cooperative joint–equity limited company, the applicant shall meet the conditions as follows:

(1)

Having the articles of association in the light of the Company Law and the Law on Commercial Banks;

(2)

The registered capital shall be no less than 50 million Yuan, which has been paid in, its capital adequacy ratio shall not be lower
than 8%, and its core capital adequacy ratio shall not be lower than 4%;

(3)

The proportion of its badly performing loans shall be no higher than 15%;

(4)

Having senior managers who own the qualification for holding their respective positions as well as qualified operational personnel
familiar with the banking business;

(5)

Having right organizational institutions and management systems; and

(6)

Having business place, safety protection measures and other relevant facilities suitable for its business operations; and

(7)

Other prudent conditions prescribed by the CBRC.

Article 29

All the urban credit cooperatives that participate in the establishment of an urban credit cooperatives joint–equity limited company
shall be subject to the consolidated calculation of financial statements, and shall meet the conditions as follows:

(1)

The capital adequacy ratio shall not be lower than 6%, and the core capital adequacy ratio shall not be lower than 3%;

(2)

The quality situation of asset shall be good, and the proportion of badly performing loans shall be no higher than 18%;

(3)

The situation of profit-making shall be good. The per capita assets shall not be lower than 5 million Yuan. The rate of year-end asset
profits for the latest year before the application is submitted shall not be lower than 0.2% in general, the rate of capital profits
shall not be lower than 4% in general, and the rate of interests recovery not higher than 80%; and

(4)

Having a good liquidity situation. And the liquidity ratio, ration of deposits and loans, ration of provisions and other indices shall
meet the relevant supervisory requirements.

Each urban credit cooperative shall also meet other prudent conditions prescribed by the CBRC.

Article 30

The shareholders of the urban credit cooperative that has participated in the establishment of an urban credit cooperatives joint–equity
limited company may be as the promoters of the urban credit cooperatives joint–equity limited company.

For the establishment of an urban credit cooperative joint–equity limited company, the promoters may also be the domestic financial
institutions, domestic non-financial institutions, overseas financial institutions and other promoters recognized by the CBRC. The
aforesaid promoters shall meet the conditions prescribed in Articles 9 through 13 of these Measures, but the total year-end assets
of an overseas financial institution for the latest year shall not be less than one billion US Dollars in general.

Article 31

The establishment of an urban credit cooperatives joint–equity limited company shall include two stages, namely, preparatory establishment
and beginning of the business.

Article 32

An application for the preparatory establishment of an urban credit cooperatives joint–equity limited company shall be subject to
the acceptance and preliminary examination of the local banking regulatory bureau, and the examination and decision shall be made
by the CBRC. The banking regulatory bureau shall seek for the supervisory opinions of the banking regulatory sub-bureau at the locality
where the urban credit cooperatives joint–equity limited company is to be established. The CBRC shall make a written decision on
approval or disapproval within 4 months after receipt of the entire application documents.

Article 33

The period of preparatory establishment of an urban credit cooperative joint–equity limited company shall be 6 months as of the day
when the decision on approval is made. If the preparatory establishment has not been implemented on time, the institution shall submit
an application for postponing the preparatory establishment to the banking regulatory bureau within 1 month prior to the expiry of
the time limit for preparatory establishment. The banking regulatory bureau shall make a decision on whether to approve or disapprove
within 20 days as of receipt of the written application, and the longest period postponed for preparatory establishment shall be
3 months.

Before the expiry of the time limit prescribed in the preceding Paragraph, the preparatory establishment group of the institution
shall submit an application for the beginning of business. If an application fails to be submitted within the time limit, the approval
document for preparatory establishment shall be abated, and the decision-making organ shall logout the license for preparatory establishment.

Article 34

An application of an urban credit cooperatives joint–equity limited company for the beginning of its business shall be submitted
to the local banking regulatory bureau for acceptance and decision. The banking regulatory bureau shall make a written decision on
approval or disapproval within 2 months upon acceptance of the application, and send a copy to the local banking regulatory sub-bureau.

Article 35

After receiving the ratification documents for the beginning of business and obtaining a financial business permit, an urban credit
cooperatives joint–equity limited company shall register at the administrative department for industry and commerce and obtain a
business license.

Within 6 months after obtaining the business license, the urban credit cooperatives joint–equity limited company shall open up its
business. If the institution fails to open up its business within the time limit, the applicant shall submit an application for postponing
the beginning of business to the banking regulatory bureau within 1 month prior to the expiry of the time limit for the beginning
of business. The banking regulatory bureau shall make a decision on whether to approve the postponement or not within 20 days as
of the day of receipt of the written application, and the longest period postponed for the beginning of business shall be 3 months.

If the urban credit cooperatives joint–equity limited company fails to open up its business within the time limit as prescribed in
the preceding Paragraph, the original ratification documents for the beginning of business shall be abated, and the decision-making
organ shall logout the license for the beginning of business, take back the financial business permit and make an announcement.

Section IV Establishment of Domestic Branches

Article 36

The domestic branches established by Chinese investment commercial banks shall include the branches, branch-level exclusive institutions,
sub-branches and facilities of self-service banks, etc.

Article 37

If a state-owned commercial bank or joint -equity commercial bank applies for establishing a branch, the applicant shall meet the
conditions as follows:

(1)

Having a good corporate governance structure;

(2)

Having sound and effective risk management and internal control systems;

(3)

Having an effective information management system;

(4)

Its capital adequacy ratio, ration of badly performing loans, profit-making ability and other important supervisory indices shall
meet the supervisory requirements;

(5)

Having the ability to apportion the working capital: the apportioned working capital shall be no less than 100 million Yuan or equivalent
convertible currency, and the total amount of the working capital apportioned to all the branches shall not exceed 60% of the net
capital of the applicant;

(6)

Having committed no serious cases or no serious illegal or rule-breaking acts within the latest 2 years;

(7)

Having a good risk rating conclusion; and

(8)

Other prudent conditions prescribed by the CBRC.

Article 38

If a state-owned commercial bank or joint -equity commercial bank applies for establishing bankcard centers, instruments centers,
capital operating centers or other branch-level exclusive institutions, the applicant shall meet the conditions as follows:

(1)

The management system reform for exclusive business operations shall accord with the development trends of these business operations;

(2)

The management system reform for exclusive business operations shall accord with the overall strategies and development plans of the
general office, and shall benefit the enhancement of the whole competitiveness;

(3)

Having good corporate governance, its internal control shall be sound and effective, and its main prudent supervision indices accord
with the supervisory requirements of the CBRC;

(4)

Its exclusive business operations shall have been opened up for more than two years, have a certain scale and have accumulated certain
experiences;

(5)

The quality of its assets for exclusive business operations, the profit-making ability and other indi

NOTICE OF THE MINISTRY OF COMMERCE ON REGULATING THE RELEVANT MATTERS REGARDING THE NAMING OF OVERSEAS CHINESE-FUNDED ENTERPRISES AND INSTITUTIONS

Ministry of Commerce

Notice of the Ministry of Commerce on Regulating the Relevant Matters Regarding the Naming of Overseas Chinese-funded Enterprises
and Institutions

The competent departments of commerce of all the provinces, autonomous regions, municipalities directly under the Central Government,
and cities under separate state planning, and the competent departments of commerce of Xinjiang Production and Construction Corp.,

In order to regulate the names of overseas Chinese-funded enterprises and institutions, and according to the relevant laws and regulations
and the Provisions on the Examination and Approval of Investments to Run Enterprises Abroad (Order No. 16 [2004] of the Ministry
of Commerce), we hereby make a notice on the relevant matters as follows:

The naming of overseas Chinese-funded enterprises (institutions) shall not disobey the relevant laws, regulations or rules of China,
and not damage the external visualization and overall interests of China, and shall be in line with the provisions of local laws,
regulations and folk and religious customs.

II.

The naming of overseas Chinese-funded enterprises (institutions) shall not damage the rights and interests of other domestic Chinese
enterprises, foreign enterprises or other Chinese-funded enterprises invested in the host country.

III.

The Chinese and foreign names of overseas Chinese-funded enterprises (institutions) shall not use words such as “China”, “Chinese”
or “State” in its name without approval of the Central Government.

IV.

The descriptions concerning the industry, the form of organization or nature of business operations in the naming of overseas Chinese
-funded enterprises (institutions) shall be conformed to the actual situation of its business operations.

In the case of any alteration to the name of an overseas Chinese-funded enterprise (institution), the relevant formalities shall be
handled in light of the provision on Article 11 of the Provisions on the Examination and Approval of Investments to Run Enterprises
Abroad (Order No. 16 [2004] of the Ministry of Commerce).

VI.

The registered name of an overseas Chinese-funded enterprise (institution) at the locality shall be the same as that in the approval
certificate.

All the provincial competent departments of commerce shall strictly enforce the Notice in the work relating to the examination and
approval of investments to run enterprises abroad.

Ministry of Commerce

January 22, 2006

Ministry of Commerce
2006-01-22

MEASURES OF THE EXAMINATION AND APPROVAL FOR AGRICULTURAL GENETICALLY MODIFIED ORGANISMS PROCESSING

Ministry of Agriculture

Order of the Ministry of Agriculture of People’s Republic of China

No. 59

The Measures of the Examination and Approval for Agricultural Genetically Modified Organisms Processing, which were adopted at the
3rd executive meeting of the Ministry of Agriculture on January 16, 2006 upon deliberation, are hereby promulgated and shall be implemented
as of July 1, 2006.

Minister of Ministry of Agriculture, Du Qinglin

January 27, 2006

Measures of the Examination and Approval for Agricultural Genetically Modified Organisms Processing

Article 1

In order to strengthen the administration of examination and approval for agricultural genetically modified organisms processing,
the present Measures are formulated in accordance with the relevant provisions of the Regulation on the Security Administration of
Agricultural genetically modified organisms.

Article 2

The term “agricultural genetically modified organisms processing” as mentioned in the present Measures refers to an activity of producing
the relevant products of agricultural genetically modified organisms by making use of active agricultural genetically modified organisms
as the raw materials.

The term “products of agricultural genetically modified organisms” as mentioned in the preceding paragraph refers to genetically modified
animals and plants, microorganism products and the directly processed products from genetically modified agricultural products as
prescribed in items (2) and (3) of article 3 in the Regulations on the Security Administration of Agricultural Genetically Modified
Organisms.

Article 3

An entity or individual that engaged in the processing of agricultural genetically modified organisms within the territory of the
People’s Republic of China shall acquire a License for Agricultural Genetically Modified Organisms Processing as issued by the competent
department of agriculture administrative of the local people’s government at the provincial level at the locality of processing (hereinafter
referred to as the Processing License).

Article 4

An entity or individual that engaged in the processing of agricultural genetically modified organisms shall not only accord with the
conditions for establishment as prescribed by the relevant laws and regulations but also accord with the conditions as follows:

(1)

Having the relevant special production line and closed storage facilities applicable to the processing of agricultural genetically
modified organisms;

(2)

Having the relevant equipment and facilities for disposal of processing wastes and inactivation;

(3)

Having the relevant controlling measures for pollution disposal in the processing and transforming between agricultural genetically
modified organisms and non-genetically modified organisms that function as raw materials; and

(4)

Having perfect safety management system on agricultural genetically modified organisms processing by the follows means:

Setting up an archive for the management of purchase of raw materials, transportation, storage, processing and sale;

Setting up a system of post responsibility;

Setting up the relevant emergency preliminary schemes for such emergencies as spread of agricultural genetically modified organisms;
and

Setting up a group in charge of the safety administration of agricultural genetically modified organisms, consists of the relevant
management personnel and technicians who have the relevant knowledge on the safety of agricultural genetically modified organisms;

Article 5

An entity that submits an application for a Processing License shall submit the application to the competent department of agriculture
administrative of the people’s government at the provincial level and come up with the following materials:

(1)

An Application Form for Processing License (See Attachment);

(2)

A text of the safety administration system for agricultural genetically modified organisms processing;

(3)

The name list, professional knowledge and educational certificates and credentials of the members of the group in charge of the safety
administration of agricultural genetically modified organisms;

(4)

Records on the training of the relevant regulations on the security of agricultural genetically modified organisms and the relevant
knowledge of processing security;

(5)

The specimens of the labels of agricultural genetically modified organisms products; and

(6)

The photocopy of the Security Certificate of Agricultural Genetically modified Organisms for the raw materials in processing.

Article 6

The competent department of agriculture administrative of the people’s government at the provincial level shall accomplish the examination
within 20 workdays as of accepting an application. Where the application accords with the relevant requirements, a Processing License
shall be issued, which shall be reported to the Ministry of Agriculture for archival filing. Where any application fails to accord
with the relevant requirements, a written notice shall be issued to the relevant applicant, wherein an explanation shall be given.

As required, the competent department of agriculture administrative of the people’s government at the provincial level may organize
an expert group to carry out an appraisal on the application materials. An expert group may carry out an on-site inspection and submit
a report on inspection within the prescribed time limit as prescribed by the competent department of agriculture administrative.

Article 7

The validity term of a Processing License is 3 years. Where any entity or individual wants to continue its/his processing business
after the expiration of the License, it/he shall submit an application for a Processing License again 6 months before the original
License expires.

Article 8

Where an entity or individual that engaged in the processing of agricultural genetically modified organisms processing alters its/his
name, it/he shall submit an application for changing its/his Processing License.

Where an entity or individual that engaged in the processing of agricultural genetically modified organisms processing is under any
of the circumstance as follows, it/he shall submit an application for a new Processing License:

(1)

Where the relevant business goes beyond the confine of the processing scope as prescribed in the original Processing License; or

(2)

Where the production location is altered, including such cases as production in different places and setting up branches.

Article 9

An entity or individual that violates the provisions of the present Measures shall be subject to the punishment in accordance with
the relevant provisions of the Regulation on the Security Administration of Agricultural Genetically modified Organisms.

Article 10

The Processing Licenses shall be uniformly printed by the Ministry of Agriculture.

Article 11

The present Measures shall be implemented as of July 1, 2006.

htm/e04768.htmλ/post_title>

Attachment:

Application Form for Processing License

Application Date Month Day Year

Name of the Application Organization		Code of the Organization
Address		Post No.
E-MAIL		Faxes

Character of the Enterprise			Date of Establishment
Delegate of Legal Person		Linkman		Telephone

Situation of Pool or Establishment of Branches
Names of Genetically Modified Organisms		Situation of Identifier
Name (Category) of Products
Use		Situation of Identifier
Circulation of Products		Quantity of Capacity in Prior Year
Opinions of the Application Organization	Delegate of Legal PersonSignature or Seal Month Day Year
Opinions of the Experts Group	Seal Month Day Year
Examination and Approval Opinions of Provincial Department of Agriculture	Seal Month Day Year

ANNOUNCEMENT NO.8, 2006 OF THE GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA

General Administration of Customs

Announcement No.8, 2006 of the General Administration of Customs of the People’s Republic of China

[2006] No. 8

In accordance with Anti-dumping Regulations of People’s Republic of China, the Customs Tariffs Committee of the State Council decided
to impose anti-dumping duties on imported Benzofuranol originating from Japan, EU and the U.S., which shall last 5 years as from
February 12, 2006. Announcement No. 7, 2006 was issued for this case (See Appendix 1 for details). Matters of concern are listed
as follows:

As from February 12, 2006, besides imposing duties and value added tax on the imported Benzofuranol originating from the Japan, EU
and the U.S. (under item 29329910 in Import and Export Tariffs of PRC), the Customs shall impose anti-dumping duties and value-added
tax in the import process in line with different supporters.

See Appendix 1 for specific description of the products under anti-dumping measures.

Any unit applying for importing Benzofuranol shall submit certificate of place of origin to the Customs. If the place of origin is
one of Japan, EU and the U.S., invoice of the original manufacturer shall be provided.

For any unit applying for importing Benzofuranol originating from FMC Corporation in the U.S. and Pesticide Co., Ltd, Japan, anti-dumping
duties shall be exempted because of a Price Protocol between the Ministry of Commerce of PRC and the above-mentioned companies.

Issues concerned imposition of anti-dumping duties shall be conducted in accordance with Announcement No. 9, 2001 of the General Administration
of Customs of the People’s Republic of China and Decree No. 111 of the General Administration of Customs of the People’s Republic
of China.

The anti-dumping deposit in cash that is paid after the implementation of the temporary anti-dumping measures shall be transferred
to anti-dumping duties.

The Customs shall punish the forging behavior in accordance with related regulation.

Any similar product for import could apply to Ministry of Commerce for the arbitration on whether it is under the temporary anti-dumping
measures. The Customs shall act accordingly.

Appendix:

(1)

Announcement No.7 of Ministry of Commerce, 2006 (omitted)

(2)

Anti-dumping Deposit Ratio Table (omitted)

General Administration of Customs of the People’s Republic of China

February 10, 2006

General Administration of Customs
2006-02-10

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 12 – DEBT RESTRUCTURING

The Ministry of Finance

Accounting Standards for Enterprises No. 12 – Debt Restructuring

Cai Kuai [2006] No.3

February 15, 2006

Chapter I General Provisions

Article 1

These Standards are formulated in accordance with the Accounting Standards for Enterprises – Basic Standards for the purpose of regulating
the recognition and measurement of debt restructuring, and disclosing of the relevant information,.

Article 2

The term “debt restructuring” refers to an event in which the terms of a debt are given in as a result of a mutual agreement between
a debtor and a creditor or a judgment of a court when the debtor gets into a financial problem.

Article 3

The manners of debt restructuring mainly include:

(1)

The liquidation of a debt by asset;

(2)

The conversion of a debt into capital;

(3)

The modification of other terms of a debt such as deduction of principal or interest of a debt, excluding the two manners aforesaid
;

(4)

A combination of the three aforesaid manners .

Chapter II Accounting Treatment of Debtors

Article 4

When a debt is liquidated by cash, the debtor shall include the difference between the book value of the debt to be restructured and
the actual cash payment into the current profits and losses.

Article 5

When a debt is liquidated by a non-cash asset, the debtor shall include the difference between the book value of the debt to be restructured
and the fair value of the non-cash asset transferred into the current profits and losses.

The difference between fair value of the non-cash asset transferred and its book value shall be included in the current profits and
losses.

Article 6

When a debt is converted into capital, the debtor shall recognize the total par value of shares, to which the creditor becomes enpost_titled
for waiver of the credit, as stock of capital (or paid-in capital) and shall recognize the difference between the total amount of
the fair value of the shares and the stock of capital (or paid-in capital) as capital reserve.

The difference between the book value of the debt to be restructured and total amount of the fair value of the shares shall be included
in the current profits and losses.

Article 7

Where other terms of a debt are modified, the debtor shall regard the post-modification fair value of the debt as the entry value
of the restructured debt, and shall include the difference between the book value of the debt to be restructured and the entry value
of the restructured debt in the current profits and losses.

If the post-modification terms of a debt concern any contingent payment and if the contingent payment meets the conditions for the
recognition of expected liabilities as prescribed in the Accounting Standards for Enterprises No. 13 – Contingencies, the debtor
shall recognize the contingent sum payable as expected liability, and shall include the difference between the book value of the
debt to be restructured and the aggregate amount of the entry value of the restructured debt and the expected amount of liability
in the current profits and losses.

The term “contingent sum payable” refers to the payable sum in the light of the occurrence of a future event that is uncertain.

Article 8

Where a debt restructuring is made by a combination of the liquidation of a debt by assets, the liquidation of a debt by non-cash
asset, the conversion of a debt into capital, and the modification of other terms of a debt, the debtor shall offset, one by one,
the cash paid, the fair value of the non-cash asset transferred, and the fair value of the shares to which the creditor becomes enpost_titled,
against the book value of the debt to be restructured, then handle it in accordance with Article 7 of these Standards.

Chapter III Accounting Treatments of the Creditor

Article 9

When a debt is liquidated by cash, the creditor shall include the difference between the book balance of the debt to be restructured
and the cash received in the current profits and losses. If the creditor has made provision for the impairment of the credit, he
shall first offset the aforesaid difference against the impairment provision, then include the shortfall in the current profits and
losses.

Article 10

When a debt is liquidated by non-cash asset, the creditor shall recognize the fair value of the non-cash asset received as the entry
value and shall handle the difference between the book balance of the debt to be restructured and the fair value of the non-cash
asset received in accordance with Article 9 of these Standards.

Article 11

When a debt is converted into capital, the creditor shall recognize the fair value of the shares to which it becomes enpost_titled as investment
to the debtor and shall handle the difference between the book balance of the debt to be restructured and the fair value of the shares
in accordance with Article 9 of these Standards.

Article 12

When other terms of a debt are modified, the creditor shall recognize the fair value of the credit after the modification of other
terms of the debt as the book value of the restructured debt and shall handle the book balance of the debt to be restructured and
the book value of the restructured debt in accordance with Article 9 of these Standards.

If the post-modification terms of the debt concern any contingent sum receivable, the creditor shall not recognize the contingent
sum receivable, nor he include it in the book value of the restructured debt.

The term “contingent sum receivable” refers to the receivable sum in the light of the occurrence of a future event that is uncertain.

Article 13

Where a debt restructuring is made by a combination of the liquidation of a debt by assets, the liquidation of a debt by non-cash
asset, the conversion of a debt into capital and the modification of other terms of a debt, the creditor shall offset, one by one,
the cash received, the fair value of the non-cash asset received, and the fair value of the shares to which the creditor becomes
enpost_titled, against the book balance of the debt to be restructured, then handle it in accordance with Article 12 of these Standards.

Chapter IV Disclosure

Article 14

The debtor shall, in its notes, disclose the information concerning debt restructuring as follows:

(1)

The manners of debt restructuring;

(2)

The total amount of the gains of debt restructuring, which is confirmed;

(3)

The increment amount of stock capital (or pain-in capital) due to debt-to-capital conversion;

(4)

The contingent sum payable; and

(5)

The methods and basis for the ascertainment of the fair value of the non-cash asset transferred in a debt restructuring, the fair
value of the shares converted by the debt, and the fair value of the debt after the modification of other terms of the debt.

Article 15

A creditor shall, in its notes, disclose the information concerning debt restructuring as follows:

(1)

The manners of debt restructuring;

(2)

The total amount of the loss of debt restructuring, which is recognized;

(3)

The increment amount of investment and the proportion to the total shares of the debtor due to credit-to-share conversion;

(4)

The contingent sum receivable; and

(5)

The methods and basis for the confirmation of the fair value of the non-cash asset received in a debt restructuring, the fair value
of the shares converted by the credit, and the fair value of the credit after the modification of other terms of the debt.

The Ministry of Finance
2006-02-15

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 27 – EXPLOITATION OF PETROLEUM AND NATURAL GAS

Ministry of Finance

Accounting Standards for Enterprises No. 27 – Exploitation of Petroleum and Natural Gas

Cai Kuai [2006] No. 3

February 15, 2006

Chapter I General Provisions

Article 1

In order to regulate the accounting treatments for the exploitation activity of petroleum and natural gas (hereinafter referred to
as oil and gas) and the disclosure of relevant information, these Standards are formulated in accordance with Accounting Standards
for Enterprises – Basic Standards.

Article 2

The exploitation activity of oil and gas includes the stages of obtainment of rights and interests of mining areas, as well as exploration,
development and production of oil and gas.

Article 3

Except for the exploitation activity of oil and gas, the accounting treatments for the storage, centralized transport, processing,
distribution of oil and gas shall be governed by other relevant accounting standards.

Chapter II Accounting Treatments of Rights and Interests of Mining Areas

Article 4

The rights and interests of mining areas refers to the rights obtained by enterprises to explore, develop and produce oil and gas
in mining areas.

The rights and interests of mining areas shall be classified into the rights and interests of proved and unproved mining areas. A
proved mining area refers to a mining area in which an economically exploitable reserve has been discovered and proved after exploration.
An unproved mining area refers to a mining area in which no economically exploitable reserve has been discovered and proved yet.

The term “economically exploitable reserve is proved” refers to the amount of oil and gas that can be reasonably determined and be
exploited from a known oil and gas reserve under the current technological and economic conditions in the light of the geological
and engineering analyses.

Article 5

The costs for obtaining the rights and interests of a mining area shall be capitalized when they are incurred. The rights and interests
of a mining area obtained by an enterprise shall be measured initially according to the costs of obtainment:

(1)

The costs for the obtainment of the rights and interests of a mining area shall include the use fee of the exploration right, the
use fee of the mining right, the disbursements for the use right of land or sea area, commissions, and other disbursements directly
attributable to applying for obtainment of the rights and interests of the mining area.

(2)

The costs for the obtainment of the rights and interests of a mining area by way of purchase shall include the purchase price, commissions,
and other purchasing disbursements directly attributable to the obtainment of the rights and interests of the mining area.

After the obtainment of the rights and interests of a mining area, the use fee of the exploration right, the use fee of mining right,
rent and other disbursements for maintaining the rights and interests of the mining area shall be recorded into the profits and losses
of the current period.

Article 6

An enterprise shall adopt the output method or the average method of year limit to calculate the depletion of the rights and interest
of the proved mining areas. If it adopts the output method to calculate the depletion, the depletion amount shall be calculated in
the light of each single mining area, or in the light of a group of adjacent mining areas with identical or similar geological structure
features or deposit layer conditions. The calculation formula shall be as follows:

The depletion amount of the rights and interests of the proved mining areas = the book value of the proved mining areas the depletion
rate of the rights and interests of the proved mining areas

The depletion rate of the rights and interests of the proved mining areas = the output of the proved mining areas in the current period
/ (the proved economically exploitable reserve at the end of the period of the proved mining areas + the output of the proved mining
areas of the current period)

Article 7

For the impairment of the rights and interests of a mining area, an enterprise shall recognize the impairment losses in accordance
with the following different circumstances, respectively:

(1)

It shall treat the impairment of rights and interests of the proved mining areas in the light of the Accounting Standard for Enterprises
No. 8 – Asset Impairment.

(2)

The rights and interests of the unproved mining areas shall be tested on impairment at least once a year.

If the amount of costs incurred by the obtainment of a single mining area is relatively huge, the tests on impairment shall be performed
on the basis of a single mining area and the amount of impairment of the rights and interests of the unproved mining area shall be
confirmed. If the amount of costs incurred by the obtainment of a single mining area is relatively small and if its geological structure
features or deposit layer conditions are the same as or similar to those of other adjacent mining areas, a test on impairment may
be performed on the basis of a group of mining areas consisting of several adjacent mining areas with identical or similar geological
structure features or deposit layer conditions.

If the fair value of the rights and interests of the unproved mining areas is lower than the book value thereof, the difference between
them shall be considered as an impairment loss and shall be recorded in the profits and losses of the current period. Once an impairment
loss on the rights and interests of the unproved mining areas has been recognized, it shall not be reversed.

Article 8

Where an enterprise transfers the rights and interests of a mining area, it shall be subject to the provisions as follows:

(1)

If it transfers all the rights and interests of a mining area, the difference between the transfer income and the book value of the
rights and interests of the mining area shall be recorded in the profits and losses of the current period.

If it transfers parts of the rights and interests of the mining area, in the light of the proportion between the fair value of the
transferred rights and interests and the fair value of the retained rights and interests, it shall calculate and determine the book
value of the transferred portion of rights and interests of the mining area, and the difference between the transfer income and the
book value of the transferred rights and interests of the mining area shall be recorded in the profits and losses of the current
period.

(2)

If it transfers all the rights and interests of an unproved mining area, for which it calculates the impairment separately, the difference
between the transfer income and the book value of the rights and interests of the unproved mining area shall be recorded in the profits
and losses of the current period.

If it transfers parts of the rights and interests of an unproved mining area, for which it calculates the impairment separately and
if the transfer income is more than the book value of the rights and interests of the mining area, the difference between them shall
be recorded in the profits and losses of the current period. If the transfer income is less than the book value of the rights and
interests of the mining area, the transfer income shall offset against the book value of the rights and interests of the mining area
and any profits and losses shall not be recognized.

(3)

If it transfers the rights and interests of any unproved mining areas, for which it calculates the impairment on the basis of a group
of mining areas, and if the transfer income is more than the original book value of the rights and interests of the mining areas,
the difference between them shall be recorded in the profits and losses of the current period; if the transfer income is less than
the original book value of the rights and interests of the mining areas, the transfer income shall offset against the original book
value of the rights and interests of the mining areas, any profits and losses shall not be recognized.

When it transfers the residual rights and interests of the final unproved mining area among the group of the mining areas, the difference
between the transfer income and the book value of the unproved mining area shall be recorded in the profits and incomes of the current
period.

Article 9

Where an unproved mining area (portfolio) is changed into a proved mining area (or groups of mining areas) because an economically
exploitable reserve is discovered and proved in such an unproved mining area (portfolio), it shall be shifted into the rights and
interests of proved mining areas according to its book value.

Article 10

Where an enterprise eventually abandons an unproved mining area due to its failure to discover and prove any economically exploitable
reserve therein, its book value at the time of abandonment shall be written off the rights and interests of the unproved mining area,
and be recorded in the profits and losses of the current period. The abandonment costs, which are incurred due to the unfinished
obligatory workload or other factors shall be recorded in the profits and losses of the current period.

Chapter III Accounting Treatments of Oil and Gas Exploration

Article 11

The expression “oil and gas exploration” refers to the geological investigations, geophysical prospecting, drilling activities and
other relevant activities carried out for the purpose of identifying the exploration region or exploring the oil and gas reserve.

Article 12

The disbursements for oil and gas exploration shall include the drilling exploration disbursements and the non-drilling exploration
disbursements.

The drilling exploration disbursements shall mainly include the disbursements incurred by the exploratory drilling in the exploration
region, the drilling for detailed prospecting, the appraisal well, the data well as well as other activities. The non-drilling exploration
disbursements shall mainly include the disbursements for geological investigation, geophysical exploration as well as other activities.

Article 13

With a view to the drilling exploration disbursements, after a well is completed, if it is sure that an economically exploitable reserve
is discovered and proved in the well, the disbursements for drilling this well shall be carried forward as cost of the well and relevant
facilities.

If it is sure that no economically exploitable reserve is discovered and proved in the well, the result of the disbursements for drilling
this well less the net salvage value shall be recorded in the profits and losses of the current period.

If it is sure that an economically exploitable reserve is discovered and proved in a section of the well, among the portion of drilling
exploration disbursements for the effective section of the well where an economically exploitable reserve is discovered and proved
shall be carried forward as the cost of the well and relevant facilities. The accumulative drilling exploration disbursements for
the ineffective section of the well shall be changed into the profits and currents of the current period.

If it is not sure that whether or not an economically exploitable reserve is discovered and proved in the well, the disbursements
for drilling the well shall be temporarily capitalized within 1 year after it is completed.

Article 14

If one year has lapsed since the completion of the well, it is still impossible to make sure whether or not an economically exploitable
reserve is discovered and proved in a well, if the following conditions are satisfied simultaneously, the capitalized disbursements
for drilling the well shall continue to be temporarily capitalized, otherwise they shall be recorded in the profits and losses of
the current period:

(1)

A sufficient reserve has been discovered in the well, but in order to make sure whether or not it is an economically exploitable reserve,
it is necessary to carry out further exploration activities in order to make sure whether or not it is an proved economically exploitable
reserve;

(2)

Further exploration activities are being implemented or are about to be implemented under a specific plan.

Where a new economically exploitable reserve is discovered and proved in a well for which the drilling exploration disbursements have
been expensed, no adjustment may be made to the expensed drilling exploration disbursements and the disbursements for re-drilling
exploration and for the completion of the well shall be capitalized.

Article 15

The non-drilling exploration disbursements shall be recorded in the profits and losses of the current period at the time of incurrence.

Chapter IV Accounting Treatments of Oil and Gas Development

Article 16

The term “oil development” refers to the activities such as the construction or renovation of wells and other relevant facilities
in order to acquire the oil and gas of a proved mining area.

Article 17

The disbursements incurred during the oil and gas development activities shall be capitalized respectively in the light of their purposes
and be recognized as the cost of well and relevant facilities formed by the oil and gas development.

The cost of well and relevant facilities formed by the oil and gas development mainly includes:

(1)

The pre-drilling preparation disbursements, including the pre-phase research, project geological investigation, project design, determination
of location of the well, cleaning up the well site, building roads, as well as other activities;

(2)

The disbursements for the purpose of purchasing equipment of the well and for the construction of the well. The equipment of the well
shall include the casing pipes, oil pipes, oil pump equipment and well mouth devices, etc. The construction of the well shall include
the drilling and completion of the well;

(3)

The disbursements for the purpose of purchasing and constructing the systems for promoting the exploitation rate; and

(4)

The disbursements for the purpose of purchasing and constructing the centralized transport facilities, separation processing facilities,
measurement equipment, storage facilities, various off-shore platforms, seabed and land cables, etc. within the mining area.

Article 18

In a proved mining area, the disbursements incurred during the process from the drilling to the current layer that has been proved
shall be considered as the disbursements for oil and gas development. The disbursements incurred due to the continuous drilling till
the unproved layer in order to obtain the new proved economically exploitable reserve shall be considered as the drilling exploration
disbursements, and be treated in the light of Articles 13 and 14 of these Standards.

Chapter V Accounting Treatments for the Oil and Gas Production

Article 19

The expression “oil and gas production” refers to the activities such as extracting any oil and gas from the oil and gas deposit to
the surface of the earth, gathering, transporting, processing, storing on the spot within the scope of the mining area, as well as
the management of the mining area.

Article 20

The cost of oil and gas production shall include the depletion of the rights and interests of the relevant mining area, the depletion
of the wells and relevant facilities, the depreciation of the auxiliary equipment and facilities, as well as the operating expenses.
The term “operating expenses” include the direct and indirect expenses incurred during the period of the oil and gas production and
the management of the mining area.

Article 21

An enterprise shall compute the depletion of its wells and other relevant facilities by adopting the output method or the straight-line
method. The wells and relevant facilities shall include the exploration wells where the economically exploitable reserve is discovered
and proved, wells formed in the exploitation activities, and other various facilities directly related to the exploitation activities.
If the output method is adopted for calculation of the depletion, the depletion amount shall be computed in the light of a single
mining area or in the light of a group of adjacent mining areas with identical or similar geological structure features or deposit
layer conditions. The calculation formula shall be given as follows:

The depletion amount of the wells and other relevant facilities of the mining areas = the book value of the wells and relevant facilities
of the mining areas at the end of the period the depletion rate of the wells and relevant facilities of the mining areas

The depletion rate of the wells and relevant facilities of the mining areas = the output of the proved mining areas in the current
period / (the economically exploitable reserves at the end of the period which has been proved and have been exploited + the output
of the mining areas in the current period)

The economically exploitable reserves at the end of the period which have been proved and have been exploited include the economically
exploitable reserves which have been proved and have been put into full exploitation after the completion of the drilling of the
net of development wells and the construction of the supporting facilities, and the increased exploitable reserves correspondingly
after the facilities necessary for the technologies to promote the exploitation rate have been finished and these facilities have
been put into operation.

Article 22

The earthquake equipment, construction equipment, vehicles, maintenance workshops, warehouses, supply stations, communication equipment,
office facilities and other auxiliary equipment and facilities shall be treated in accordance with the Accounting Standard for Enterprises
No. 4 – Fixed Assets.

Article 23

For an enterprise’ obligation to do the discarded dispose for any mining area,, if this obligation satisfies the conditions for the
recognition of the expected liabilities as prescribed in the Accounting Standards for Enterprises No. 13 – Contingencies, it shall
recognize this obligation as an expected liability and shall increase the corresponding book value of the wells and relevant facilities.

If the conditions for the recognition of the expected liabilities are not satisfied, the disbursements for the disassembly, removal
and site cleaning at the time of discard shall be recorded in the profits and losses of the current period.

The discard of a mining area refers to the termination of production of the last well of a mining area.

Article 24

The impairment of the wells and relevant facilities, auxiliary equipment and facilities shall be treated in the light of the Accounting
Standard for Enterprises No. 8 -Impairment of Assets.

Chapter VI Disclosure

Article 25

An enterprise shall disclose the information related to the oil and gas exploitation activities as follows in its notes:

(1)

The data of the beginning and the end of the year of the domestic and overseas oil and gas reserves that they possessed.

(2)

The total amount of all disbursements incurred in the current period in order to obtain the rights and interests of domestic and overseas
mining areas, the oil and gas exploration as well as the oil and gas development.

(3)

The original book value of the rights and interests of the proved mining areas, wells and relevant facilities, the accumulative depletion
amounts and the accumulative amounts of the impairment provisions as well as their calculation methods. The original book value of
the auxiliary equipment and facilities for the oil and gas exploitation activities, the accumulative depreciation amounts and the
accumulative amounts of the impairment provisions as well as their calculation methods.

Ministry of Finance
2006-02-15

LETTER OF CHINA BANKING REGULATORY COMMISSION CONCERNING THE APPROVAL OF AMERICA VISA INTERNATIONAL SERVICE ASSOCIATION TO CLOSE UP ITS SHANGHAI REPRESENTATIVE OFFICE

Letter of China Banking Regulatory Commission concerning the Approval of America VISA International Service Association to Close up
Its Shanghai Representative Office

America VISA International Service Association,

The letter which was signed by Christopher Rodrigues, president and chief executive officer of your Service Association, on October
31, 2005, has been received by this Commission.

You are hereby approved to close up the Shanghai Representative Office of America VISA International Service Association according
to the Measures on the Administration of Foreign-funded Financial Institutions’ Representative Offices in China.

Please carry out the related cancellation formalities according to the related provisions. After closing up this Representative Office,
your Service Association shall deal with the pending matters.

China Banking Regulatory Commission

February 16, 2006

China Banking Regulatory Commission
2006-02-16

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German Laws

Act on Proceedings in Family Matters and in Matters of Non-contentious Jurisdiction

Act on Occupational Physicians, Safety Engineers and Other Occupational Safety Specialists

CIRCULAR OF THE FOREIGN FUND DEPARTMENT UNDER THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ON REPORTING LICENSE USE STATUS OF FOREIGN-FUNDED ENTERPRISES

ANNOUNCEMENT NO. 43, 2007 OF MINISTRY OF COMMERCE AND GENERAL ADMINISTRATION OF CUSTOMS

CIRCULAR OF THE GENERAL ADMINISTRATION OF CUSTOMS ON RELEVANT ISSUES CONCERNING POLICIES OF IMPORT DUTY FOR WORLD EXPO 2010 SHANGHAI

MEASURES OF CHINA BANKING REGULATORY COMMISSION FOR THE IMPLEMENTATION OF ADMINISTRATIVE LICENSING MATTERS ON CHINESE INVESTMENT COMMERCIAL BANKS

NOTICE OF THE MINISTRY OF COMMERCE ON REGULATING THE RELEVANT MATTERS REGARDING THE NAMING OF OVERSEAS CHINESE-FUNDED ENTERPRISES AND INSTITUTIONS

MEASURES OF THE EXAMINATION AND APPROVAL FOR AGRICULTURAL GENETICALLY MODIFIED ORGANISMS PROCESSING

ANNOUNCEMENT NO.8, 2006 OF THE GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 12 – DEBT RESTRUCTURING

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 27 – EXPLOITATION OF PETROLEUM AND NATURAL GAS

LETTER OF CHINA BANKING REGULATORY COMMISSION CONCERNING THE APPROVAL OF AMERICA VISA INTERNATIONAL SERVICE ASSOCIATION TO CLOSE UP ITS SHANGHAI REPRESENTATIVE OFFICE

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7