NOTIFICATION NO.13, 2006 OF FOREIGN ASSISTANCE PROJECT BID BOARD OF THE MINISTRY OF COMMERCE

Notification No.13, 2006 of Foreign Assistance Project Bid Board of the Ministry of Commerce

Tong Gao [2006] No.13

Foreign Assistance Project Bid Board of the Ministry of Commerce held the 13th regular meeting on June 8, 2006. Matters of concern
and resolutions are notified as follows:

The tender mode of Egypt Suez Economic Zone One-step Investment Service Building Construction assistance project was discussed. Because
of the emergency of the project, the Bid Board determined to have tender discussion with China State Construction Engineering Corporation
about the t project, which has advantages and good performance in Egypt. Specific matters of concern shall be notified later.

The bid-winning enterprise of Cuba Medical Treatment and Sanitation Materials assistance project was examined and approved. The
Bid Board opened sealed tenders on June 1, 2006. In all, 9 tender enterprises including China National Electronics Import and Export
Corporation, Tianjin Machinery Import & Export Corporation, Shanghai Automobile Import & Export Co., Ltd., Suzhou Hengrun
Import & Export Corp., Ltd., China National Pharmaceutical Foreign Trade Corporation , China Meheco Corporation, Henan Cereals,
Oil & Foodstuff Imp. & Exp. Group Corp., XY Group Co., Ltd. and Suntime International Techno-Economic Cooperation (Group)
Co., Ltd. submitted the tender documents on time. The Bid Board, according to the reviewing results with best price versus performance
ratio measures after quantifying the tender price, the quantity of the goods, supply and quality assurance, packing, transport and
the quantity of tender documents, determined to confer bid to Suzhou Hengrun Import & Export Corp. Ltd.

The tender mode of Federated States of Micronesia Second Passenger-cargo Vessel assistance project was re-studied. The Bid Board
opened sealed tenders on June 6, 2006. Henan Light Industrial Products Imp. & Exp. Group Co., Ltd., Tianjin Machinery Import
& Export Corporation has submitted tender documents on time. But the tender was void after review because of the significant
deficiency. Since the Wuhan Nanhua High-speed Ship Engineering Co., Ltd. chosed by Henan Light Industrial Products Import & Export
Group Co., Ltd. has carried the task of building First Passenger-cargo Vessel assistant to Federated States of Micronesia successfully,
which has the ability to carry the task before the end of the year, and the vessel should be delivered before the end of the year,
the Bid Board determined to have tender discussion with Henan Light Industrial Products Import & Export Group Co., Ltd. about
the project and appointed Wuhan Nanhua High-speed Ship Engineering Co., Ltd. to be the supplier. Specific matters of concern shall
be notified later.

The tender mode of Vanuatu Palm Planting Technology Cooperation Project was discussed. The Bid Board determined to have tender discussion
with China National Machinery & Equipment Import & Export Corporation about the project. Specific matters of concern shall
be notified later.

Foreign Assistance Project Bid Board of the Ministry of Commerce

June 8, 2006

Foreign Assistance Project Bid Board of the Ministry of Commerce
2006-06-08

REPLY OF THE CHINA BANKING REGULATORY COMMISSION CONCERNING LAUNCHING THE BUSINESS OF INTER-BANK ENTRUSTED LOANS AMONG FINANCIAL INSTITUTIONS BY THE AGRICULTURAL DEVELOPMENT BANK OF CHINA

Reply of the China Banking Regulatory Commission concerning Launching the Business of Inter-bank Entrusted Loans among Financial Institutions
by the Agricultural Development Bank of China

Agricultural Development Bank of China:

The Request for Letters on Launching the Business of Inter-bank Entrusted Loans by the Agricultural Development Bank of China (Nong
Fa Yin Fa [2005] No. 333) has been received. Upon consideration, a reply hereby is given as follows:

You are granted to launch the business of inter-bank entrusted loans among financial institutions. You should not undertake any relevant
credit risk for the trustor or do so in a disguised form for the purpose of launching this business.

The scope of trustors for you to launch the business of inter-bank entrusted loans among financial institutions shall be restricted
to policy banks, commercial banks and rural credit cooperative institutions. You must catty out the report system to extend entrusted
loans to the enterprises that have opened accounts, and you shall, within 10 days as of the said business is launched, make a report
to this Commission. The entrusted loans business shall be restricted to providing financial services for the field of “three problems
of agriculture”.

You shall intensify the management of this business, set up and improve internal control system and operational procedures, and report
related risks and problems faced in implementation of this business to this Commission in a timely manner.

The China Banking Regulatory Commission

June 21, 2006

The China Banking Regulatory Commission
2006-06-21

MEASURES FOR THE ADMINISTRATION OF PILOT MARGIN TRADING OF SECURITIES COMPANIES

Circular of China Securities Regulatory Commission on Promulgating the Measures for the Administration of Pilot Margin Trading of
Securities Companies

Zheng Jian Fa [2006] No.69

All the securities companies:

For the purpose of regulating the pilot margin trading of securities companies, we have formulated the Measures for the Administration
of Pilot Margin trading of Securities Companies, which are hereby promulgated and shall enter into force as of August 1, 2006.

China Securities Regulatory Commission

June 30, 2006

Measures for the Administration of Pilot Margin Trading of Securities Companies
Chapter I General Provisions

Article 1

The present Measures are formulated in order to regulate the pilot margin trading of securities companies, prevent the risks of securities
companies, safeguard the legitimate rights and interests of securities investors and the social public interests, perfect the securities
dealing mechanisms and the stable and healthy development of the securities market.

Article 2

As regards developing the pilot margin trading, a securities company shall be in compliance with the provisions of the laws, administrative
regulations and the present Measures, enhance the internal control, strictly prevent and control the risks, and earnestly maintain
the safety of customer assets.

The term “Margin trading as mentioned herein refers to such business activity whereby the securities company lends customers capital
to purchase listed securities or lends them listed securities to sell, and collects the collaterals.

Article 3

As regards developing the pilot margin trading, a securities company must be approved by China Securities Regulatory Commission (hereinafter
referred to as CSRC). No securities company can lend the capital or listed securities to its customers or provide any convenience
or services for margin trading between its customers or between its customers and any other person without approval by the CSRC.

Article 4

Under the principle of prudential surveillance, the CSRC shall approve those securities companies that meet the conditions prescribed
in the present Measures to develop the pilot margin trading; and shall, in accordance with the pilot situation and the requirements
for developing the securities market, gradually approve other securities companies meeting the prescribed conditions to engage in
the margin trading.

Article 5

The CSRC and its representative offices shall implement surveillance and administration of the pilot margin trading of securities
companies subject to the laws, administrative regulations and the present Measures.

The Securities Association of China, stock exchanges, and securities depository and clearing institutions shall conduct the self-discipline
management of the pilot margin trading of securities companies pursuant to their own articles of association and rules.

Chapter II Approval of Business Operations

Article 6

Where a securities company applies for engaging in the pilot margin trading, it shall meet the following requirements:

(1)

It has engaged in the securities brokerage business for three years or more, and has been appraised by the Securities Association
of China as an innovative pilot securities company;

(2)

It has sound corporate governance, effective internal control, and can effectively identify, control and prevent business operation
risks and internal management risks;

(3)

Neither the company nor any of its directors, supervisors or senior managers has been subjected to administrative sanctions or criminal
penalties within recent two years for illegal or irregular business operations, and none of them has been under the investigation
of the CSRC or under the rectification because of being suspected of any illegal or irregular act;

(4)

It has sound financial status, has all of its risk control indicators meeting the provisions in recent two years, and has all net
capital for each recent six months above 1.2 billion yuan or more;

(5)

It has the assets of customer to be safe and intact, has had the verification for its scheme of third party depository of customer
transaction settlement funds by the CSRC, and has made clear arrangements for the implementation of the said scheme;

(6)

It has completed the centralized management of transactions, settlements, customer accounts and risk surveillance and control, and
has specified the signs for historical irregular accounts and put them under centralized control; and

(7)

It has established practical and feasible schemes for implementing the pilot margin trading as well as internal management rules,
and has necessary professionals, technical systems, capital and securities for performing the pilot margin trading.

Article 7

Where a securities company applies for the pilot margin trading, it shall submit the following materials to the CSRC, and send a
copy thereof to the CSRC representative office at the locality of its registration:

(1)

an application form for the pilot margin trading;

(2)

the decision of the shareholders’ meeting (the general assembly of shareholders) in respect of engaging in the margin trading;

(3)

the scheme for implementing the pilot margin trading, the text rules of internal management, and the criteria for choosing customers
as formulated under Article 12 of the present Measures;

(4)

the explanations on carrying out the scheme for the third party depository of customer transaction settlement funds;

(5)

the roster and qualification certificates of senior managers and professionals responsible for the margin trading; and

(6)

other documents required to be submitted by the CSRC.

The legal representative of a securities company and its main principals for business management shall sign their names on the application
form for the pilot margin trading, and promise the truthfulness, accuracy and completeness of the application materials, and bear
corresponding legal responsibilities for the false records, misleading statements or major omissions in application materials, if
any.

Article 8

The CSRC representative office shall issue the written opinions to the CSRC concerning whether or not to approve the applicant to
implement the pilot margin trading within 10 working days as of the receipt of the application materials as prescribed in the preceding
Article.

The CSRC shall, subject to the legal procedures and the conditions prescribed in the present Measures, examine the application materials,
organize specialists to evaluate the scheme for carrying out the pilot margin trading as submitted by the applicant, make a decision
on approval or disapproval, and notify the result to the applicant in written form.

Under same conditions, the securities companies with higher net capital will be approved preferentially for the pilot margin trading.

Article 9

A securities company that has obtained the approval shall apply to the company registration department for alteration registration
of the business scope, and apply to the CSRC for re-issuing a Permit for Business Operations of Securities Business in accordance
with relevant provisions.

A securities company can implement the pilot margin trading after obtaining a Permit for Business Operations of Securities Business
as reissued by the CSRC.

Chapter III Rules for Business Operations

Article 10

Where a securities company carries out the pilot margin trading, it shall, in its own name, separately open a special securities
lending account, a customer credit transaction guaranty securities account, a credit transaction securities delivery account and
a credit transaction capital delivery account at securities depository and clearing institutions.

The special securities lending account shall be used for recording down the securities that are held by the securities company, planned
to lend to customers, and returned by the customers, and the said account can not be used for securities dealings; the customer credit
transaction guaranty securities account shall be used for recording down the securities that the customer submits to the securities
company as the guarantee to the creditor’s rights incurred from the margin trading with the customer; the credit transaction securities
delivery account shall be used for securities settlement for the margin trading of the customer; and the credit transaction capital
delivery account shall be used for capital settlement for the margin trading of the customer.

Article 11

Where a securities company carries out the pilot margin trading, it shall, in its own name, separately open a special capital financing
account and a customer credit transaction guaranty capital account at a commercial bank.

The special capital financing account shall be used for depositing the capital that the securities company plans to lend to the customer
and that the customer plans to return; and the customer credit transaction capital securities account shall be used for depositing
the capital that the customer submits to the securities company as the guarantee to the creditors’ rights incurred from the margin
trading with the customer.

Article 12

A securities company shall, before performing the margin trading with any customer, conduct the credit investigation, and know the
status, property, incomes, securities investment experiences and risk preferences of the customer, and record down and keep them
in written form or by e-mail.

A securities company shall not conduct the margin trading with those customers that fail to provide the relevant information as required,
that engage in the securities dealings in the said securities company for less than half a year, or transaction settlement funds
of whose have not been incorporated into the third party depository, or the securities investment experiences of whose are insufficient,
or who lack risk affordability or have records of serious breach of contract, or who are the shareholders or related representatives
of the said securities company.

A securities company shall formulate specific standards for choosing customers as required by provisions in the preceding Paragraph.

Article 13

A securities company shall, before conducting the margin trading with any customer, sign a margin contract including the necessary
provisions as prescribed by the Securities Association of China, and clearly stipulate the following matters:

(1)

the means for calculating the quota, term, interest rate (charging rate), and interests (expenses) of the margin trading;

(2)

the guaranty bonds proportion, the guaranty maintenance proportion, types and the conversion rates of securities that can be used
as guaranty bonds, and the scope of secured creditors’ rights;

(3)

the notification mode and the term for supplementing guaranty bonds;

(4)

the means for the customer to compensate debts, and the right of the securities company on disposing of the collaterals;

(5)

the disposal of rights and interests attached to the securities bought and sold in the margin trading; and

(6)

other relevant matters.

A customer can only sign a margin contract with one securities company and borrow the capital or securities from the same securities
company.

Article 14

A margin contract shall stipulate that the securities in the customer credit transaction guaranty securities account and the capital
in the customer credit transaction guaranty capital account of the securities company are the trust property of the securities company
for guaranteeing the creditors’ rights of the customer incurred from the margin trading.

The term of margin trading stipulated between the securities company and a customer shall not be longer than the maximum term as prescribed
by the stock exchange, and shall not be renewed. The interest rate of capital financing shall not be lower than the base interest
rate of financial institutions for the same term as prescribed by the People’s Bank of China.

Article 15

A securities company shall, before signing a margin contract with any customer, assign a special person to explain to the customer
about the operational rules and the contents of the contract, and give a risk presentation letter concerning the margin trading to
the customer for signature and confirmation.

Article 16

A securities company shall, after signing a margin contract with a customer and on the basis of the application of the customer,
open a real-name credit securities account for him in accordance with the provisions of the securities depository and clearing institution.
The credit securities account for the customer to engage in the trading of listed securities at a stock exchange can only be a same
account. The name or post_title of the account opener of the customer credit securities account shall be consistent with that of the common
securities account of the customer.

A customer credit securities account is a second-tier account of the customer credit transaction guaranty securities account of the
securities company, and can be used for recording down the detailed data for the guaranty securities that the customer entrusts the
securities company to hold.

A securities company shall entrust the securities depository and clearing institution to modify the data in the customer credit securities
account pursuant to the settlement and delivery results, and etc.

Article 17

A securities company shall sign a customer credit capital depository agreement with its customer and the commercial bank with reference
to the mode of third party depository of customer transaction settlement funds. The securities company shall, after signing a margin
contract with a customer, notify the commercial bank to open a real-name credit capital account for the customer under the customer’s
application. Only one credit capital account can be opened to a customer.

A customer credit capital account is a second-tier account of the customer credit transaction guaranty capital account of the securities
company, and can be used for recording down the detailed data of the guaranty capital given by the customer for depository.

The commercial bank shall modify the data on the customer credit capital account pursuant to the settlement and delivery results,
and etc. as provided by the securities company.

Article 18

Where a securities company lends any capital to any customer, it can only use the capital in the special capital financing account;
and where a securities company lends any securities to any customer, it can only use the securities in the special securities lending
account.

The securities bought or sold by the customer in the margin trading shall not exceed the scope as prescribed by the stock exchange.

A customer shall, when signing a margin contract with a securities company, declare all the securities accounts of himself and his
related representatives to the securities company. During the term of securities lending, if the customer or any of his related representatives
purchases the same securities as those he has borrowed, the customer shall declare it to the securities company within 3 trading
days as of the date of the said purchase. The securities company shall monthly report the information as declared by the customer
to the relevant stock exchange.

A customer, planning to sell the same securities as those it holds and has borrowed during the period of securities lending, shall
observe the provisions as prescribed by the stock exchange, and shall not manipulate the market by selling the said securities against
the provisions.

Article 19

Where a securities company implements the margin trading and sends out orders of securities trading and transfer under the customer’s
authorization, it shall ensure the truthfulness and accuracy of the said orders. Where a mistake of the securities company brings
on the wrong orders so as to the losses customer, the customer may request compensation from the securities company according to
laws, however, it shall not affect the business operations of the stock exchange or the securities depository and clearing institution
that are being performed or have been performed.

Article 20

The proportion of the margin amount of all the customers, a single customer or a single securities to the net capital and other risk
control indicators of a securities company shall be in accordance with the provisions of the CSRC.

Article 21

A customer that buys securities by financing from a securities company shall repay it with the capital from selling of the securities
or by direct repayment.

A customer that sells the securities by securities lending from a securities company shall repay it with the securities to be bought
or by direct repayment.

Article 22

Where a transaction of the securities is suspended, which is bought or sold by the customer in the margin trading, and the resumption
day of the transaction is later than the expiry date of the debts incurred from the margin trading, the term for margin trading shall
be postponed, unless it is otherwise prescribed by the margin contract.

Article 23

If the transaction of the securities is to be terminated, which is bought or sold by the customer in the margin trading, and the
last transaction day is later than the expiry date of the debts incurred from the margin trading, the term for margin trading shall
expire at the transaction day before the last one, unless it is otherwise prescribed by the margin contract.

Chapter IV Guarantee to Creditor’s Rights

Article 24

Where a securities company lends the capital or securities to the customer, it shall collect a certain proportion of guaranty bonds
from the customer, which can be substituted by the securities.

Article 25

The said guaranty bonds, all of the securities bought by the customer by financing and all of the capital acquired from the selling
of the borrowed securities shall be separately deposited into the customer credit transaction guaranty securities account and the
customer credit transaction guaranty capital account by the securities company as the collaterals for the creditor’s rights incurred
from the margin trading of the aforesaid customer.

Article 26

The proportion of the value of collaterals submitted by the customer to his debts shall be calculated day by day by the securities
company, and when the aforesaid proportion is lower than the minimum guaranty maintenance proportion, the customer shall be notified
to make up the balance within a certain term.

The securities company shall deal with the collaterals as stipulated at once, unless the customer makes up the balance or pay debts
in time.

Article 27

The proportion of guaranty bonds, the types and conversion rates of securities that can be used as guaranty bonds as prescribed by
Article 24 of the present Measures, and the minimum guaranty maintenance proportion and the term for the customer to make up the
balance as prescribed in Article 26 shall be stipulated by the stock exchange.

A securities company can formulate specific provisions on the aforesaid matters on the basis of meeting the provisions of the stock
exchange.

Article 28

The securities in the customer credit transaction guaranty securities account of the securities company or the capital in the customer
credit transaction guaranty capital account may not be used by anyone but in case of the following circumstances:

(1)

the settlement of margin trading for the customer;

(2)

the collection of the capital or securities that shall be returned by the customer;

(3)

the collection of interests, fees or taxes that shall be paid by the customer;

(4)

the disposal of collaterals subject to the provisions in the present Measures or the stipulations with the customer;

(5)

the collection of default fines that shall be paid by the customer;

(6)

the withdrawal of remaining securities or capital after the principal and interests, taxes, expenses and default fines has been paid
by the customer; or

(7)

other circumstances as prescribed by the laws, regulations or the present Measures.

Article 29

Where the proportion of the collaterals value deposited by the customer to his debts exceeds the percentage as prescribed by the
stock exchange, the collaterals can be withdrawn by the customer subject to the provisions of the stock exchange and the stipulations
in the margin contract.

Article 30

Where the judicial department adopts the measures of property preservation or compulsory implementation to the rights and interests
in the customer credit securities account or the credit capital account, the securities company shall deal with the collaterals and
fulfill the creditor’s rights incurred from the margin trading with the customer, and assist the implementation of judicial department.

Chapter V Disposal of Rights and Interests

Article 31

In accordance with the records in the customer credit transaction guaranty securities account of a securities company, the securities
depository and clearing institution shall confirm the fact that the securities company is entrusted to hold the securities, and register
the securities company in the roster of securities holders as a nominal holder.

Article 32

As regards the securities recorded in the customer credit transaction guaranty securities account, a securities company shall, in
its own name, exercise the rights of securities issuers for the interests of customers. Where a securities company exercises the
rights of securities issuers, the opinions of customers shall be first solicited and be implemented accordingly.

The term “rights of securities issuers” as mentioned in the preceding Paragraph means the rights incurred due to the holding of securities,
such as requesting to convene a securities holders’ meeting, participating in the securities holders’ meeting, submitting proposals,
voting, subscribing the allotted shares, requesting to distribute investment proceeds, etc.

Article 33

A securities depository and clearing institution entrusted by a securities issuer to distribute investment proceeds shall register
the distributed securities in the customer credit transaction guaranty securities account of the securities company, and modify the
detailed data on the said customer credit securities account accordingly.

A securities depository and clearing institution entrusted by a securities issuer to distribute investment proceeds in cash shall
register the distributed capital in the customer credit transaction guaranty capital account of the securities company, and shall
notify the commercial bank to modify the detailed data in the said customer credit capital account after the capital is transferred
to the account.

Article 34

After the customer borrows the securities but before the customer returns the securities, where a securities issuer distributes investment
proceeds, allots or gratuitously distributes securities to securities holders or issues any of the securities to which the securities
holders have the preemptive right, the customer shall, when repaying the debts, give the securities or capital equal to the interests
that may be gotten from the borrowed securities to the securities company subject to the stipulations in the margin contract.

Article 35

A securities company may not merge the stocks holding through its customer credit transaction guaranty securities account into its
self-owned stocks, and it is not required to perform such corresponding obligations as information reporting, information revealment
or tender offer for the alteration of the amount of stocks in the aforesaid account.

Where the total amount of stocks of a listed company or the rights and interests held by a customer and its coordinated actors in
the common securities accounts and the credit securities accounts amounts to the prescribed proportion, the customer shall perform
such corresponding obligations as information reporting, information revealment or tender offer.

Chapter VI Surveillance and Administration

Article 36

A stock exchange can formulate restrictive provisions on the proportion of buying or selling amount of each single security to the
market turnover and on the selling price of the borrowed securities in the margin trading.

Article 37

In accordance with the business operational rules, a stock exchange shall take measures and conduct initial-stage check of the orders
for margin trading, and it shall refuse those trading orders in which the types of securities dealings or the selling price of the
borrowed securities fails to meet the provisions.

Where the proportion of buying or selling amount of a single security in the margin trading to the market turnover reaches the prescribed
maximum percentage, the stock exchange can suspend the acceptance of the orders for buying or selling the aforesaid type of securities
in the margin trading.

Article 38

When any abnormality occurs in the margin trading, which has already harmed or may harm the market stability and it is necessary
to suspend the trading, the stock exchange shall, in accordance with the business operational rules, suspend all or part of the margin
trading and publicize the information.

Article 39

In accordance with the business operational rules, a securities depository and clearing institution shall supervise over the securities
transfer in the margin trading and the capital transfer in the credit transaction capital delivery account of the securities company.
Those orders on securities or capital transfer that violate the provisions shall be refused; and if any abnormality has been found,
the securities company shall be required to make explanations, and then relevant information shall be submitted to the CSRC and the
CSRC representative office at the locality where the said securities company is registered.

Article 40

A commercial bank that is responsible for the customer credit capital depository shall refuse those capital transfer orders of the
securities company that violate the provisions in accordance with the stipulations in the contract on customer credit capital depository;
and if any abnormality has been found, the securities company shall be required to make an explanation, and relevant information
shall be submitted to the CSRC and the CSRC representative office at the locality where the said securities company is registered.

Article 41

A securities company shall deliver reconciliation statements to the customer by the methods as stipulated in the margin contract,
and provide the inquiry services concerning the data of the credit securities account and the credit capital account to them.

A securities depository and clearing institution shall provide the inquiry services concerning data of the credit securities account
to the customer. A commercial bank that is responsible for the customer credit capital depository shall provide inquiry services
concerning data of the credit capital account to the customer subject to the stipulations in the contract on customer credit capital
depository.

Article 42

In accordance with the provisions of the stock exchange, a securities company shall submit to the stock exchange about the information
on the margin trading of the current day after the market is closed every day. The stock exchange shall collect and make statistics
of the information submitted by securities companies, and publicize before the market opens on the next trading day.

Article 43

A securities company shall submit the following information in written form for the current month to the CSRC representative office
at the locality of its registration and the stock exchange within 10 days upon conclusion of each month:

(1)

the number of accounts opened by the customers for the margin trading;

(2)

the balance of margin trading for all the customers as well as the said balance for the top ten customers;

(3)

the types and amount of collaterals submitted by the customers;

(4)

the number of the customers for mandatory buy-in, and the trading amount for mandatory buy-in;

(5)

the value of relevant risk control indicator; and

(6)

the profit status of the margin trading.

Article 44

The CSRC and its representative offices, the Securities Association of China, stock exchanges and securities depository and clearing
institutions shall perform surveillance or self-discipline administrative duties in the margin trading of securities companies subject
to relevant provisions, and can request a securities company to provide the information and materials concerning the margin trading.

Article 45

A CSRC representative office shall implement off-site and on-site inspections over the customer selection, contracts conclusion,
determination of credit-granting quota, collection and management of collaterals, notice on the supplementation of collateral and
disposal of collateral, etc, involved in the margin trading of securities companies and their branches as required by the jurisdiction
monitoring accountability system.

Article 46

Where a securities company or any of its branches violates any of the provisions in pilot margin trading, it shall be deterred and
be ordered to make corrections within a time limit by the CSRC representative office, in case of failing to make corrections or serious
circumstances, the CSRC shall, pursuant to the specific circumstances, take such surveillant measures such as giving a warning, giving
a public warning, ordering penalty to relevant persons who are held to be responsible, ordering relevant branches to stop the margin
trading, or canceling the approval on the margin trading.

A securities company or any of its branches that engages in the margin trading without approval shall be applied sanctions subject
to Article 205 of the Securities Law.

Chapter VII Supplementary Provisions

Article 47

Stock exchanges, securities depository and clearing institutions and the Securities Association of China shall formulate business
operational rules and self-discipline rules for the margin trading in accordance with the present Measures, and implement the said
rules after submit to the CSRC for approval.

Article 48

The present Measures shall enter into force as of August 1, 2006.

China Securities Regulatory Commission
2006-06-30

ANNOUNCEMENT ON PUNISHMENT FOR THE UNPAID BID-WINNING EARNEST MONEY ON ENTERPRISES OF SECOND BIDDING IN 2006 FOR QUANTITY OF EXPORT LICENSE OF TEXTILES EXPORTED TO EU AND THE U.S

Announcement on Punishment for the Unpaid Bid-winning Earnest Money on Enterprises of Second Bidding in 2006 for Quantity of Export
License of Textiles Exported to EU and the U.S

The List of Enterprises of Second Bidding in 2006 for Quantity of Export License of Textiles Exported to EU and the U.S. , which failed
to pay the bid-winning earnest money, is now publicized (See Appendix).

In accordance with related regulations in Measures on Export Commodity Quota Bidding and Detailed Rules for the Implementation of
Bidding for Quantity of Export License of Textiles, the Tendering Committee would draw back the bid-winning quantity of the above-mentioned
enterprises and call off their bidding qualification on related categories in 2006 and 2007.

If any dissidence exists, please bring forward written opinions to the Tendering Committee within 10 days as from the promulgation
of this announcement. The enterprises also have the rights of statement and argument.

Tel: 010-677393276773921367739209

Fax: 010-6771929767719300

Appendix: List of Enterprises with Unpaid Bid-winning Earnest Money

Tendering Committee for Textile Export of Ministry of Commerce

July 11, 2006

Tendering Committee for Textile Export of Ministry of Commerce
2006-07-11

THE REGULATIONS CONCERNING THE EXAMINATION ON THE EXECUTION OF STATISTICS LAW

Order of the National Bureau of Statistics of the People’s Republic of China

No. 9

The Regulations concerning the Examination on the Execution of Statistics Law , which were amended and adopted at the 8th executive
meeting of the National Bureau of the Statistics of China on July 12,2006, are hereby promulgated and shall come into force upon
promulgation.
Commissioner Qiu Xiaohua

July 17,2006

The Regulations concerning the Examination on the Execution of Statistics Law

(Formulated by the National Bureau of Statistics of China on June 20, 2001, and amended by the National Bureau of Statistics of China
on July 12, 2006)

Chapter I General Provisions

Article 1

In order to scientifically and effectively organize the examination on the execution of statistics law, safeguard the implementation
of the Statistics Law and the statistics system, and maintain and enhance the quality of statistical data, the present Regulations
are formulated in accordance with the Statistics Law of the People’s Republic of China and the detailed rules for its implementation

Article 2

The statistical institutions of the people’s governments at the county level or above and the investigation teams at all levels as
assigned by the National Bureau of Statistics of China shall be the organs of the examination on the execution of statistics law,
and be responsible for the supervision and inspection over the implementation of the Statistics Law and the statistics system as
well as the investigation and punishment over the acts against the Statistics Law or the statistics system according to laws.

Article 3

Each relevant department of the people’s government at the county level or above shall, under the organization and guidance of the
statistical institution of the people’s government at the corresponding level, be responsible for the supervision and inspection
over the implementation of the Statistics Law and the statistics system within its jurisdictional system, and assist the statistical
institution of the people’s government at the corresponding level to investigate and punish the acts of illegal statistics within
its own jurisdictional system.

Article 4

The organs for the examination on the execution of statistics law at all levels shall establish an liability system for administrative
execution of law, and practically safeguard necessary work conditions for the examination on the execution of statistics law such
as the personnel, outlay and so on.

Article 5

The guidelines that “the laws must be fully observed and strictly enforced, and law-breakers must be prosecuted” shall be implemented,
the principle of combining precaution, investigation and punishment, and rectification as well as combining penalty and education,
and the principles of legality, equity, openness and efficiency shall be insisted in the examination on the execution of statistics
law.

Article 6

The organs for the examination on the execution of statistics law at all levels shall encourage the social supervision over the implementation
of the Statistics Law. The National Bureau of Statistics of China shall set up a reporting center to accept reports on statistical
illegal acts from all circles of the society.

Chapter II Organs for the examination on the execution of statistics law and the Inspectors

Article 7

The Legal Affairs Organ of the National Bureau of Statistics shall be in charge of the uniform organization and administration of
the examination on the execution of statistics law throughout the country.

The organ for the examination on the execution of statistics law at the provincial level or the districted city level shall mount
a special organ for the examination on the execution of statistics law and equipped with professional inspectors.

The organ for the examination on the execution of statistics law at the county level may, pursuant to the demand of work, mount a
special organ for the examination on the execution of statistics law, or be equipped with necessary inspectors if it does not have
such a organ.

All relevant departments of the people’s government at the county level or above may be equipped with inspectors pursuant to the demand
of the work.

Article 8

The main responsibilities of an organ for the examination on the execution of statistics law shall be:

(1)

to propagandize and implement the Statistics Law;

(2)

to organize, guide, supervise and administrate the examination on the execution of statistics law;

(3)

to accept reports on illegal statistics , investigate, transfer and supervise the transaction of cases of illegal statistics;

(4)

to transact matters on statistical administrative reconsiderations and administrative litigation; and

(5)

to perform other duties as endowed by the laws, regulations and rules.

Article 9

An inspector for the examination on the execution of statistics law shall possess the following qualifications:

(1)

sticking to principles, being decent, being loyal for his duties and abiding by disciplines and laws;

(2)

having a junior college diploma or above;

(3)

having the relevant legal knowledge and being familiar with the statistical business; and

(4)

having participated in the qualification training of inspectors for the examination on the execution of statistics law, and having
passed the examination and got a certificate of inspector for the examination on the execution of statistics law

Article 10

The qualification training and examination of inspectors for the examination on the execution of statistics law shall be planned,
organized and administrated uniformly by the National Bureau of Statistics of China, and be implemented by the provincial organ for
the examination on the execution of statistics law.

Article 11

The organs for the examination on the execution of statistics law at all levels shall strengthen the professional moral education
and professional skill trainings to its inspectors for the examination on the execution of statistics law, and shall improve the
system of management, examinations, rewards and punishment.

Chapter III General Provisions for the examination on the execution of statistics law

Article 12

The organs for the examination on the execution of statistics law and the relevant departments at all levels shall establish the
system of the examination on the execution of statistics law, and conduct regular work of the examination on the execution of statistics
law by comprehensively adopting ways of overall inspection, special inspection and emphases inspection and so on.

Article 13

The matters about the examination on the execution of statistics law shall include:

(1)

Whether there is any acts that infringement upon the independent exercises of authorities of statistical survey, statistical reports
and statistical supervision by statistical organs and personnel;

(2)

Whether there is any acts of altering statistical data which violate legal procedures or statistical system;

(3)

Whether there is any acts of false reporting,, deceptive reporting, forgery ,alteration, refusing to report or delaying of reports
of statistical materials;

(4)

Whether a statistical institution has been established, or the statistical personnel have been equipped with in accordance with the
law;

(5)

Whether the original records and statistical ledgers are set up;

(6)

Whether the statistical personnel have a statistical practitioner qualification;

(7)

Whether a statistical investigation project has been reported for approval in accordance with the legal procedures, and whether a
legal identifier is marked on the top right corner of a statistical investigation form;

(8)

Whether the investigation is conducted strictly according to the approved statistical investigation scheme, and whether the content,
target or time of the investigation has been altered at will;

(9)

Whether the management and publication of statistical materials accord with the related provisions, and whether there are any acts
by which the state secrets, business secrets of objects under statistical surveys or the monomial investigation materials of individuals=
or families are divulged;

(10)

Whether a foreign-related survey is conducted in accordance with law; and

(11)

Other matters as stipulated by laws, regulations and rules.

Article 14

An organ for the examination on the execution of statistics law shall draft the examination plans which shall include the basis,
time, objects, contents and organizational form of the examination before organizing the implementation of a examination on the execution
of statistics law.

With respect to those entities that are found with suspicion of illegal statistics , a same organ for the examination on the execution
of statistics law shall not implement examination on the execution of statistics law to any of them more than once every year.

Article 15

To conduct a examination on the execution of statistics law, the object under examination shall be noticed in advance, informing
it of the name of the organ for the examination on the execution of statistics law, the basis, scope, contents, methods and time
of the examination, as well as the concrete requirements to the said object, etc.

With respect to an examination implemented to a unit being suspected of any illegal statistics, the examination notice can be issued
at a proper time as considered by the organ for the examination on the execution of statistics law.

Article 16

When conducting any examination on the execution of statistics law ,an inspector shall, first produce his certificate of the examination
on the execution of statistics law or any other certificate of execution of law as prescribed by the laws, regulations or rules to
the object under statistical examination.

The relevant unit or individual has the right to refuse the examination if he fails to produce a legitimate certificate of execution
of law.

Certificates of the examination on the execution of statistics law shall be the valid certificates for the implementation of the examination
on the execution of statistics law which shall be printed uniformly by the National Bureau of Statistics of China and be issued upon
verification by the National Bureau of Statistics of China and the provincial organs for the examination on the execution of statistics
law

Article 17

The organs and inspectors for the examination on the execution of statistics law shall have the following authorities:

(1)

sending out statistical examination inquiry letters according to law, inquiring those under statistical examination on relevant items;

(2)

requiring those under statistical examination to provide original records and vouchers, statistical ledgers, statistical investigation
forms, accounting materials and other related certificates and materials concerning the matters under statistical examination; and
checking related materials by entering into the data entry and handling system subject to the electronic computer management of those
under statistical examination;

(3)

entering into the operation sites and places for storing goods of those under statistical examination to conduct on-site examinations
and verifications;

(4)

upon approval of the principal of the organ for the examination on the execution of statistics law ,registering and keeping original
records and vouchers, statistical ledgers, statistical investigation forms, accounting statements and other related certificates
and materials of those under statistical examination;

(5)

inquiring statisticians, principals and relevant persons of the matters concerned with the examination on the execution of statistics
law;

(6)

recording and reproducing the information and materials about the cases of illegal statistics ; and

(7)

requiring those under statistical examination to send related materials to a designated place for examination.

Article 18

The organs and inspectors for the examination on the execution of statistics law have obligations to keep confidential the business
secrets of those under statistical examination as well as the monomial investigation materials of individuals or families they have
got to know during the course of examination.

Article 19

Those under examination and the persons involved thereof shall not refuse to provide the relevant information, shall not provide
any false information, shall not stimy or dispute the examination by means of violence or menace, and shall reply faithfully to any
statistical examination inquiry letter on schedule.

Article 20

An inspector shall timely submit an examination report to the organ for the examination on the execution of statistics law, and advance
handling opinions or suggestions for problems as found in the examination.

The organ for the examination on the execution of statistics law shall handle acts of illegal statistics as found respectively in
light of the following circumstances:

(1)

In case of a slight act of illegal statistics, the examinee shall be order to make correction or put forward opinions on the examination
on the execution of statistics law; or

(2)

In case of a act of illegal statistics which needs to be put on record for investigation and handling, it shall transact it in accordance
with the legal procedures.

Chapter IV Investigation and Handling of Cases concerning Illegal Statistics.

Article 21

Cases concerning illegal statistics shall be investigated and handled by the organs for the examination on the execution of statistics
law at all levels.

The organs for the examination on the execution of statistics law at all levels may entrust a team (room or office, etc) for the examination
on the execution of statistics law which is lawfully established to investigate and handle the illegal statistics cases of illegal
statistics.

Article 22

The cases of illegal statistics of the missionaries of the organs for the examination on the execution of statistics law at all levels
or their subordinate public institutions shall be investigated and handled by the said organs or the supervisory organ according
to the purview of cadre management.

Article 23

In the examination on the execution of statistics law if any case of illegal statistics is found by any relevant department of the
people’s government at the country level or above illegal statistics and is considered that an administrative penalty shall be given,
it shall timely be transferred to the statistical organ of the people’s government at the corresponding level for handling.

Article 24

In the investigation and handling of cases concerning illegal statistics,, the facts shall be clarified, evidences be conclusive,
the nature be accurately determined, disposal be apt, the laws be correctly applied and the legal procedures be observed.

Article 25

The general procedures for investigation and handling of cases concerned with illegal statistics shall be: the case filing, investigation,
punishment and case settlement.

Any cases concerned with illegal statistics that are found and clearly investigated during the course of the examination on the execution
of statistics law and need to be put on record for investigation and handling, shall be put on record for makeup.

Article 26

If a case of illegal statistics accord with Article 33 of the Law of the People’s Republic of China on Administrative Penalty, and
the facts concerned with illegal statistics are conclusive and have legal basis, an administrative punishment of a fine of not more
than 50 Yuan shall be imposed on a citizen or of not more than 1,000 yuan on a legal person or any other organization, or a warning
shall be imposed, the simple punishment procedures can be applied, and a statistical administrative penalty decision shall be made
on the spot.

Article 27

The following acts of illegal statistics shall be investigated and handled by the organs for the examination on the execution of
statistics law according to laws:

(1)

The leader of a region, department or unit alters any of the statistical materials on his own fabricates any false data or forces
or instigates the statistical organ or statisticians to alter any statistical materials or fabricate any false data;

(2)

The leader of a region, department or entity take revenge against any statistician;

(3)

Any statistical institution or statistician participates in the alteration of any statistical materials or fabrication of any false
data;

(4)

Reporting falsely or deceptively, forging or altering any statistic materials;

(5)

Refusing to report statistical materials, or repeatedly delaying the reporting of any statistical materials;

(6)

Providing untrue or incomplete census materials;

(7)

Refusing to provide the information, providing false information, transferring, hiding or destroying original records, statistical
ledgers, statistical statements or other materials related to statistics when they are subject to a examination on the execution
of statistics law;

(8)

Stimy or dispute the examination on the execution of statistics law by means of violence or menace;

(9)

Any state organ formulates or issues statistical investigation forms without authorization;

(10)

Divulging state secret, business secrets of those under statistical surveys, or monomial investigation materials of individuals or
families by way of violating the provisions of Statistics Law or the statistics system;

(11)

Making use of statistical investigations to steal state secrets, damage social public interests or conduct activities of frauds;

(12)

By violating the Measures for Qualification Accreditation of Statistical Practitioners ,employing or hiring any person that has not
obtained a qualification certificate for statistical practitioner to engage in the statistical work;

(13)

Illegally conducting foreign-related surveys .; or

(14)

other illegal acts as prescribed by laws, regulations or rules.

Article 28

The statistical institution of the people’s government at the county level or above shall govern the illegal statistics cases occurred
within its own administrative religion of those cases, the investigation teams at all levels as assigned by the National Bureau of
Statistics of China govern those occur in the statistical surveys as organized and implemented by the said investigation teams.

The National Bureau of Statistics of China shall govern those illegal statistics cases that have significant effects within the whole
country or that be deemed to be investigated by it.

Article 29

A survey shall be timely organized for those cases that have been determined to be filed for investigation and handling. There shall
be two investigators or more for a common case, and for a significant case, a survey team shall be constituted.

Those investigators shall collect evidences lawfully, objectively and comprehensively, and shall not make subjective judgments, listen
to or believe partial words, or alter or forge evidences.

Article 30

The investigators shall report the investigation conditions and handling opinions to the leader for examination and approval after
finishing the investigation. The handling of a significant case shall be discussed collectively and determined by the principals
of an organ for the examination on the execution of statistics law.

Article 31

Upon the termination of the trial of a case concerned with illegal statistics, the case shall be respectively handled in light of
the following conditions:

(1)

The case shall be revoked at once if there are insufficient evidences to prove the violation of statistics laws, regulations or rules,
or if the violation fact is a slight one, and the offender shall not bear legal liabilities,;

(2)

The case shall be handled by the organ for the examination on the execution of statistics law according to laws if the facts are clear
and the evidences are sufficient concerning the violation of statistics laws, regulations or rules , and no crime is constituted
yet, ; or

(3)

The case shall be transferred to the judicial organ to run criminal liabilities according to laws if the violation of the Statistics
Law constitutes a crime,.

Article 32

Before an organ for the examination on the execution of statistics law makes a statistical administrative penalty decision, it shall
inform the relevant parties of the facts, reasons and basis for the penalty as well as the administrative penalty decision to be
made, and the rights they enjoy according to laws.

Article 33

Before an organ for the examination on the execution of statistics law imposes a fine of 20,000 Yuan or more on a legal person or
any other organization, or a fine of 2,000 Yuan or more on a citizen, it shall inform the parties involved of their right to request
for holding a hearing. If any party involved requires a hearing, the organ for the examination on the execution of statistics law
shall organize a hearing in light of law.

If any party involved requires a hearing for any cases of illegal statistics as investigated by the statistical organ of the people’s
government at the county level or above, and if there are concrete provisions about the amount limit of a comparative lager fine
by the people’s congress or the people’s government of the province, autonomous region or municipality directly under the Central
Government, such provisions shall prevail.

Article 34

The handling of cases of illegal statistics which have been put on the case files for investigation and handling shall be finished
within three months after they are put on record. If it is necessary to prolong the time limit for handling because of any special
circumstance, the prolonging shall be reported for approval in accordance with the provisions, but the prolonging time shall be or
less than three months.

The case is completed after the handling decision of a case concerned with illegal statistics is executed.

Chapter V Archival Filing and Reporting

Article 35

After being put on record ,the following cases concerned with illegal statistics shall be reported to the organ for the examination
on the execution of statistics law at the next higher level within ten days:

(1)

The persons who shall be responsible for illegal statistics involve leaders or cadres of the Party or the government above the section-chief
level;

(2)

Retaliating against any statistician who refuses or resists to alter statistical materials or forge false data;

(3)

Stimying or disputing the examination on the execution of statistics law by means of violence or menace;

(4)

A case that is reported by the mass through collective signature or reported publicly by the news media and has caused large effects
in the society; or

(5)

Any other case the examination organ holds it necessary to report.

Article 36

Any of the following cases concerned with illegal statistics shall within ten days upon finalization of the case, be reported to
the organ of the examination on the execution of statistics law at the next higher level for archival filing:

(1)

Imposing an administrative sanction on a leader or cadre of the Party or the government;

(2)

Holding a hearing;

(3)

Altering or canceling a specific statistical administrative act upon reconsideration;

(4)

A case of statistical administrative lawsuit;

(5)

A case that has been exposed by the news media;

(6)

a fine of 30,000 yuan or more having been Imposed; or

(7)

Any kind of cases that are reported to the organ of the examination on the execution of statistics law at the next higher level after
the case is put on record.

The cases as mentioned in Items (1), (3) and (4) of the preceding Paragraph shall, within 30 days after the said cases are settled,
be reported to the National Bureau of Statistics of China for archival filing by the provincial organ of the examination on the execution
of statistics law .

Article 37

Regular statistical system for investigating and handling the cases concerned with illegal statistics shall be established by The
National Bureau of Statistics of China illegal statistics.

An organ of the examination on the execution of statistics law shall periodically report the information on the examination on the
execution of statistics law as well as the investigation and handling of illegal statistics to the organ of the examination on the
execution of statistics law at the next higher level.

Chapter VI Legal Liabilities

Article 38

If any unit or individual commits any of the following acts, the organ of the examination on the execution of statistics law shall
order it or him to make corrections, circulate a notice of criticism, and can impose, or request the relevant organ to impose, an
administrative sanction on the principal and other persons who shall directly bear the responsibility; if any unit or individual
violates the Law of the People’s Republic of China on Public Security-Related Administrative Punishments, an administrative sanction
shall be imposed by the public security organ; and any unit or individual which is a suspect of a crime shall be transferred to the
judicial organ for criminal liabilities:

(1)

when subject to an examination on the execution of statistics law , refusing to provide any information, providing false information,
transferring, hiding or destroying any original records, statistical ledgers, statistical statements as well as other materials related
to statistics;

(2)

Stimying or disputing the examination on the execution of statistics law by means of violence or menace; or

(3)

Failing to reply to a statistical examination inquiry letter faithfully and timely.

If an enterprise or institution commits any illegal act as prescribed in the preceding paragraph, the organ of the examination on
the execution of statistics law shall, in light of the provisions in the Detailed Rules for the Implementation of the Statistics
Law of the People’s Republic of China, give a warning to it and can impose a fine of 50,000 Yuan or less upon it If an self-employed
household commits any illegal act as prescribed in the preceding Paragraph, the organ of the examination on the execution of statistics
law shall give it a warning, and can impose a fine of 10,000 Yuan or lesson it.

Article 39

The examination on the execution of statistics law organ shall circulate a notice of criticism, and can request the administrative
department or the supervisory organ to impose an administrative sanction on him if the leader of a region, department or unit or
any other person to be responsible commits any of the following acts; any statistics law enforcement examination ; and he shall be
transferred to the judicial organ for criminal liabilities if he is a suspect of a crime.:

(1)

Refusing to accept any examination on the execution of statistics law or failing to organize a examination on the execution of statistics
law in accordance with provisions, which caused the important statistical data of his region, department or unit to be inconsistent
with the facts ;

(2)

Retaliating against any entity or individual that resists or reports illegal statistics; or

(3)

Screening or conniving at any illegal statistics.

Article 40

If an organ of the examination on the execution of statistics law commits any of the following acts, the principal and other persons
to be directly responsible shall be criticized and educated by the administrative department or the supervisory organ , and shall
be imposed on administrative sanctions if the circumstances are serious; or shall be transferred to the judicial organ for criminal
liability if it is suspected that any crime has been committed:

(1)

Concealing and failing to report any case, refusing to investigate any case, or screening or conniving at any illegal statistics;

(2)

Failing to handle public affairs in light of legal authority , procedures and requirements, which causes unfavorable effects;

(3)

Divulging the reporter or the details of a case by violating the provisions on confidentiality;

(4)

Abusing official capacity or doing self-seeking misconducts; or

(5)

Any other act against law or discipline.

The personnel for the examination on the execution of statistics law who divulges business secrets of those under statistical surveys,
or monomial investigation data of individual or family that he has access to during the course of examination, which causes damages
shall be given administrative sanction, and shall bear civil liabilities according to law.

Chapter VII Supplementary Provisions

Article 41

The National Bureau of Statistics of China has the power to interpret the present Provisions.

Article 42

The present Provisions shall go into force upon promulgation. The Interim Provisions on the Examination of Statistics Laws and the
Interim Provisions on the Investigation and Handling of Illegal Statistics shall be abolished simultaneously.

National Bureau of Statistics of China
2006-07-17

MEASURES FOR THE ADMINISTRATION OF THE INVESTMENT INTO OVERSEAS INSURANCE ENTERPRISES BY NON-INSURANCE INSTITUTIONS

Decree No. 6 of China Insurance Regulatory Commission

The Measures for the Administration of the Investment into Overseas Insurance Enterprises by Non-insurance Institutions have been
deliberated and adopted by the chairmen’s executive meeting of China Insurance Regulatory Commission on March 13, 2006. They are
hereby promulgated and shall enter into force as of September 1, 2006.
Chairman Wu Dingfu

July 31, 2006

Measures for the Administration of the Investment into Overseas Insurance Enterprises by Non-insurance Institutions

Article 1

In order to promote the healthy development of the insurance industry and strengthen the supervision and control over the investment
into overseas insurance enterprises by non-insurance institutions, the present Measures are formulated in accordance with the Decision
of the State Council concerning Establishing Administrative License for the Administrative Examination and Approval Items that Really
Need to Be Preserved and the Circular of the General Office of the State Council concerning Printing and Distributing the Provisions
on Main Functions, Interior Institutions and Staffing of China Insurance Regulatory Commission.

Article 2

The term “non-insurance institutions” as mentioned herein refers to the enterprises established within China other than insurance
companies and insurance asset management companies.

The term “overseas insurance enterprises” as mentioned herein refers to the insurance companies, insurance agencies, insurance brokerage
institutions and insurance assessment institutions which are established abroad.

The term “overseas investment” as mentioned herein refers to such an activity whereby a non-insurance institution establishes an overseas
insurance enterprise or acquires 20% or more shares of an overseas insurance enterprise.

Article 3

China Insurance Regulatory Commission (hereinafter referred to as the CIRC) shall, according to the authorization of the State Council,
conduct supervision and control over the investment into overseas insurance enterprises by non-insurance institutions.

Article 4

If a non-insurance institution invests in an overseas insurance enterprise, it shall meet the requirements as follows:

(1)

having lawful sources of foreign exchange funds; and

(2)

having stable business operations and a good financial position.

Article 5

If a non-insurance institution applies for investing in an overseas insurance enterprise, it shall submit the following application
materials to the CIRC:

(1)

an application form for establishing an overseas insurance enterprise as signed by the legal representative;

(2)

articles of association and the introduction of basic information of the enterprise;

(3)

the last year financial statements and foreign currency balance sheet as audited by an accounting firm;

(4)

a letter of opinions of the higher competent authority concerning the approval of the overseas investment in an overseas insurance
enterprise;

(5)

a feasibility research report, market analysis report and preparatory scheme for establishment about the planned insurance enterprise;

(6)

the basic information about the planned insurance enterprise, including the name, site, articles of association, registered capital
or working capital, equity structure, contribution amount , business scope, resumes and copies of identification materials of person
in charge; and

(7)

Other materials as required by the CIRC.

If a non-insurance institution plans to acquire an overseas insurance enterprise, it shall submit the certificate of industrial and
commercial registration, a copy of the business license, articles of association, equity structure, brief introduction, annual reports
of the last three years as well as the resumes and copies of identification certificates of the person in charge who is planned to
assigned.

Article 6

The CIRC shall examine the application for investing in an overseas insurance enterprise by a non-insurance enterprise, and shall
make a decision on approval or disapproval within 20 days as of the day when the application is accepted. For the disapproval application,
the CIRC shall notify the applicant in written form and explain the reasons.

Article 7

A non-insurance institution shall, within 20 days as of the day when the overseas insurance enterprise obtains a license or the acquirement
is accomplished, submit a written report to the CIRC on the following information about the overseas insurance enterprise:

(1)

a copy of the license;

(2)

name and site of the institution;

(3)

articles of association of the institution;

(4)

organizational form, business scope, registered capital or working capital of the institution, contributions amount and proportion
of other shareholders;

(5)

name and ways of contact of the person in charge of the institution; and

(6)

other materials as required by the CIRC.

Article 8

A non-insurance institution shall, within three months after each accounting year of the overseas insurance institution it has established
or acquired is over, submit the last year financial statements of the overseas insurance enterprise to the CIRC.

Article 9

A non-insurance institution planning to transfer the shares of its overseas insurance enterprise shall apply to the CIRC for approval.

Article 10

A non-insurance institution, in case of any of the following matters about its investment in an overseas insurance enterprise, it
shall submit a written report to the CIRC within 20 days as of the day when these matters happened:

(1)

to invest in or establish an institution;

(2)

to dissolute, revoke, or bankrupt the enterprise;

(3)

to change the name or registered place of the institution;

(4)

to change the person in charge of the institution;

(5)

to change the registered capital or the shareholder structure significantly;

(6)

to adjust the business scope;

(7)

to involve in any major management or financial problem;

(8)

to involve in any significant lawsuit or be subject to a serious punishment; or

(9)

any other matter required by the CIRC to be reported.

Article 11

A non-insurance institution, illegally investing in an overseas insurance enterprise without approval of the CIRC, shall be warned
and be ordered to supplement the relevant examination and approval formalities within a set time.

Article 12

All the reports, statements, documents and materials which are submitted to the CIRC by a non-insurance institution in line with
the present Measures shall be in Chinese. If the original text is in a foreign language, a Chinese translation shall be provided.
If there is any discrepancy between the Chinese and foreign version, the Chinese version shall prevail.

Article 13

A non-insurance institution which has invested in an overseas insurance enterprise before the implementation of the present Measures
shall submit a written report to the CIRC in accordance with Article 7 of the present Measures within three months as of the implementation
of the present Measures.

Article 14

The period for approval or report referred to in the present Measures are working days, excluding legal holidays.

Article 15

The present Measures are subject to the interpretation of the CIRC.

Article 16

The present Measures shall enter into force as of September 1, 2006.

China Insurance Regulatory Commission
2006-07-31

PROVISIONS OF THE MINISTRY OF COMMERCE, STATE-OWNED ASSETS SUPERVISION AND ADMINISTRATION COMMISSION OF THE STATE COUNCIL, THE STATE ADMINISTRATION OF TAXATION, THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE, SECURITIES REGULATORY COMMISSION OF CHINA AND THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON MERGERS AND ACQUISITIONS OF DOMESTIC ENTERPRISES BY FOREIGN INVESTORS (2006REVISION)

Decree of the Ministry of Commerce, State-owned Assets Supervision and Administration Commission of the State Council, the State Administration
of Taxation, the State Administration for Industry and Commerce, Securities Regulatory Commission of China, and the State Administration
of Foreign Exchange No. 10 Interim Provisions on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors has been amended and adopted at the seventh
Ministry Meeting of the Ministry of Commerce of the People’s Republic of China. Provisions on Mergers and Acquisitions of Domestic
Enterprises by Foreign Investors is hereby promulgated, and shall enter into force as of Sept.8, 2006. Minister of the Ministry of Commerce, Bo Xilai Director General of State-owned Assets Supervision and Administration Commission of the State Council, Li Rongrong Director General Director General of the State Administration of Taxation, Xie Xuren Director General of State Administration for Industry and Commerce, Wang Zhongfu Chairman of Securities Regulatory Commission of China, Shang Fulin Director General of State Administration of Foreign Exchange, Hu Xiaolian Aug. 8, 2006 Provisions of the Ministry of Commerce, State-owned Assets Supervision and Administration Commission of the State Council, the State
Administration of Taxation, the State Administration for Industry and Commerce, Securities Regulatory Commission of China and the
State Administration of Foreign Exchange on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (2006Revision) Content Chapter 1 General Provisions Chapter 2 Basic System Chapter 3 Approval and Registration Chapter 4 Foreign Investors Merge Domestic Companies Using Equity as the Means of Payment Section 1 Conditions for Equity Merger Section 2 Application Documents and Procedures Section 3 Special Provisions on Special Purpose Companies Chapter 5 Anti-Monopoly Examination Chapter 6 Supplementary Provisions Chapter 1 General Provisions Article 1 With a view to promoting and regulating foreign investors’ investment in China, introducing advanced technologies and management experience
from abroad, improving the utilization of foreign investment, rationalizing the allocation of resources, ensuring employment and
safeguarding fair competition and our country’s economic security, the Provisions are hereby formulated under the laws and administrative
regulations governing foreign investment enterprises, the Company Law, and other relevant laws and administrative regulations.. Article 2 For the purposes of the Provisions, mergers and acquisitions of a domestic enterprise by foreign investors shall mean that foreign
investors, by agreement, purchase equity interest from shareholders of domestic enterprise with no foreign investment (hereinafter
referred to as the “Domestic Company”) or subscribe to the increase in the registered capital of the Domestic Company with the result
that such Domestic Company changes into a foreign investment enterprise (hereinafter referred to as “Equity Merger and Acquisition”);
or the foreign investors establish a foreign investment enterprise and then, through such enterprise, purchase the assets of a domestic
enterprise by agreement and operate such assets, or the foreign investors purchase the assets of a domestic enterprise by agreement
and use such assets as investment to establish a foreign investment enterprise to operate such assets (hereinafter referred to as
“Asset Merger and Acquisition”). Article 3 In mergers and acquisitions of domestic enterprises, foreign investors shall comply with the laws, administrative regulations and
departmental rules and adhere to the principles of fairness, reasonableness, compensation for equal value, and honesty and good faith,
and shall not create excessive concentration, eliminate or hinder competition, disturb the social economic order or harm the societal
public interests, or lead to the loss of state-owned assets. Article 4 In mergers and acquisitions of domestic enterprises, foreign investors shall comply with the requirements regarding the investors’
qualifications and industrial, land and environmental protection policies as set forth in the laws, administrative regulations and
departmental rules and the relevant requirements under industry policies.

In the case of industries where no wholly foreign ownership is allowed under the Guidance Catalog of Foreign Investment Industries,
any merger or acquisition of a domestic enterprise engaging in the industry shall not lead to the foreign investors’ ownership of
all equity interest in the acquired enterprise. In the case of industries which require the Chinese party to be controlling or relatively
controlling, the Chinese party shall remain to be in the controlling or relatively controlling position in the acquired enterprise
after any merger or acquisition of the domestic enterprise engaging in such industries. In the case of industries where operation
by foreign investors is prohibited, no foreign investors may merge with or acquire any enterprise engaging in such industries.

The business scope of the enterprise previously invested by the merged domestic enterprise shall meet the relevant requirements on
foreign investment industrial policies; otherwise it shall be modified accordingly. Article 5 Where a foreign investor merges a domestic enterprise, if it involves transference of the property of state-owned assets or administration
of state-owned equity in public listed companies, it shall comply with the relevant laws and regulations on the administration of
state-owned assets. Article 6 A foreign investor shall, when merging a domestic enterprise to establish a foreign-funded enterprise, be subject to the approval
of the examination and approval authorities in accordance with the Provisions, and make registration of modification or establishment
in the registration authority.

If the enterprise to be merged is a domestic listed company, the foreign investor shall also go through relevant procedures with the
securities regulatory authority under the State Council in accordance with Administration Rules on Foreign Investors’ Strategic Investment
in Listed Companies. Article 7 All parties involved in the merger of domestic enterprises by foreign investors shall pay the taxes and accept the supervision of
taxation authorities in accordance with China’s relevant laws and regulations on taxation. Article 8 All parties involved in the merger of domestic enterprises by foreign investors shall comply with China’s relevant laws and regulations
on foreign exchange control, and shall promptly go through all procedures on approval, registration, putting on records and alteration
regarding foreign exchange with the competent foreign exchange administrative authorities. Chapter 2 Basic System Article 9 If the contribution made by a foreign investor to the registered capital of the foreign investment enterprise established after the
merger or acquisition is more than 25%, such enterprise shall be treated as a foreign investment enterprise.

If the contribution made by a foreign investor to the registered capital of the foreign investment enterprise established after the
merger or acquisition is less than 25%, the enterprise shall not be treated as a foreign investment enterprise, and it shall be subject
to relevant provisions on contracting a foreign loan applicable to a non-foreign investment enterprise when the enterprise intends
to contract a foreign loan, unless it is otherwise provided in relevant laws and regulations. The approval authority shall, when
issuing the approval certificate of foreign investment enterprise (hereinafter referred to as “Approval Certificate”), indicate on
the certificate the following words: “foreign investment contribution is less than 25%”. The registration administrative authority
and the foreign change administrative authority shall also, when issuing the business license of foreign investment enterprise and
the foreign exchange registration certificate, indicate on them the words of “The foreign investment contribution is less than 25%”.

If any domestic company, enterprise or natural person merges its affiliated domestic company in the name of a company legally established
or controlled by the aforesaid domestic company, enterprise or natural person in foreign countries or regions, the foreign investment
enterprise established after the merger shall not be treated as a foreign investment enterprise, unless that the overseas company
purchases any increased capital of domestic company, or the enterprise established after the merger by the overseas company increases
capital to a proportion of 25% of its registered capital. If the contribution made by a foreign investor other than the actual controller
is more than 25% of the registered capital of the enterprise established according to this paragraph, the enterprise may be treated
as a foreign investment enterprise.

The foreign investment enterprise established after the merger of domestic listed companies by the foreign investor shall be treated
in accordance with China’s relevant laws and regulations. Article 10 For the purposes of this Provisions, the approval authority in the present provisions shall refer to the Ministry of Commerce the
People’s Republic of China (hereinafter referred to as “the MOC”) or the provincial department of commerce (hereinafter referred
to as “the provincial approval authority”); the registration administrative authority shall refer to the State Administration for
Industry and Commerce of the People’s Republic of China (hereinafter referred to as “the SAIC”) or its authorized local administration
for industry and commerce; and the foreign exchange administrative authority shall refer to the State Administration of Foreign Exchange
of the People’s Republic of China (hereinafter referred to as “the SAFE”) or its branches.

Where, in accordance with the laws, administrative regulations or departmental rules, a foreign-funded enterprise established after
the merger belongs to the foreign investment enterprises of certain types or in certain industries that shall be approved by the
MOC, the provincial approval authority shall transfer the application documents to the MOC that shall decide on whether or not to
grant the approval in accordance with the law. Article 11 If any domestic company, enterprise or natural person merges its affiliated domestic company in the name of a company legally established
or controlled by the aforesaid domestic company, enterprise or natural person in foreign countries or regions, it shall be subject
to the approval of the MOC.

The parties thereto shall not evade the above provision by the domestic investment of a foreign investment enterprise or by any other
means. Article 12 If foreign investors merge a domestic enterprise and obtain the actual control over the enterprise, and if such merger involves any
critical industry, affects or may affect the security of national economy, or causes transference of actual control over the domestic
enterprise who possesses a resound trademark or China’s time-honored brand, the parties to the merger shall apply to the MOC.

Where the parties thereto fail to make an application and the merger materially affects or may materially affect the security of national
economy, the MOC may, together with other competent authorities, request the parties to stop the transaction, assign relevant equity
or assets, or take any other effective actions, to eliminate the affect of the merger on the security of national economy. Article 13 Where a foreign investor carries out equity merger, the foreign investment enterprise established after the merger shall succeed to
the claims and debts of the merged domestic company.

Where a foreign investor carries out asset merger, the domestic enterprise that sells assets shall assume its original claims and
debts.

The foreign investor, the merged domestic enterprise, the creditors and other parties may reach an agreement additionally on the disposition
of the claims and debts of the merged domestic enterprise, provided that the agreement shall not damage a third person’s interests
or public interests. The agreement on disposition of the claims and debts shall be submitted to the approval authority.

At least fifteen (15) days prior to the submission of application documents to the approval organ by the investors, the domestic enterprise
that sells assets shall notify all creditors, and shall make a public announcement on the newspaper of provincial level or above
published nationwide. Article 14 The parties to a merger or acquisition shall determine the transaction price on the basis of the result of the evaluation of the equity
interest to be transferred or of the assets to be sold conducted by the asset evaluation institution. The parties to a merger or
acquisition may agree on an asset evaluation institution established within the territory of China in accordance with the law. Asset
evaluation shall be conducted by adopting internationally recognized evaluation methods. It is prohibited to transfer equity interest
or sell assets at a price obviously lower than the evaluation result for the purpose of transferring the capital out of China in
a disguised way.

When a foreign investor merges a domestic enterprise, and thus resulting in the alteration of the equity rights formed from investment
of state-owned assets or transference of the property of state-owned assets, the evaluation shall be made in accordance with the
relevant provisions on the administration of state-owned assets. Article 15 The parties to a merger shall explain whether there is relationship of affiliation among the parties. If there are two parties belong
to an actual controller, the parties shall disclose the actual controller to the approval authority, and shall explain its purpose
of merger and whether the result of evaluation is in conformity to the reasonable market value. The parties thereto shall not evade
the above provision by means of trust, custody or any other means. Article 16 A foreign investor shall, when merging a domestic enterprise to establish a foreign investment enterprise, within three (3) months
as of the day when the foreign investment enterprise is issued its business license, pay all the consideration to the shareholders
who transfer the equities or to the domestic enterprise which sells the assets. In case of any particular circumstance under which
the period needs to be extended, the foreign investor shall, approved by the approval authority, pay 60% or more of the consideration
within six (6) months as of the day when the foreign-funded enterprise is issued its business license, and pay all the consideration
within one (1) year, and the proceeds shall be distributed according to the proportion of investments it has actually contributed.

If a foreign investor purchases the increased capital of a domestic company, the shareholders of a limited liability company or a
domestic joint stock company established with promoters buying out all shares issued shall, when the company is applying for a business
license for foreign investment enterprise, pay more than 20% of the increased registered capital, and the time limit for payment
of remaining increased registered capital shall be subject to the provisions of the Company Law of the People’s Republic of China,
relevant laws and regulations on foreign investment and the Regulations of the People’s Republic of China on Administration of Registration
of Companies, unless it is otherwise provided in other applicable laws and administrative regulations. When a joint stock company
issues new shares to increase its registered capital, the shareholders may subscribe the new shares in accordance with relevant provisions
on payment of capital contribution when establishment of a joint stock company.

Where a foreign investor carries out an asset merger, it shall stipulate the time limit for contribution of investments in the contract
and articles of association of the foreign investment enterprise under planned establishment. Where the foreign investor establishes
a foreign investment enterprise, and through which purchases the assets of a domestic enterprise and operates such assets, it shall
contribute the investments equivalent to the consideration of the assets within the time limit for payment of consideration as provided
for in Paragraph 1 of this Article 16 ; as for the remaining investments, the time limit for contribution shall be subject to relevant
provisions regarding establishment of a foreign investment enterprise.

Where a foreign investor merges a domestic enterprise to establish a foreign investment enterprise, and the investment contribution
is less than 25% of the foreign investment enterprise so established, the investor shall, contribute all the investments in cash
within three (3) months as of the day when the foreign investment enterprise is issued its business license; or contribute all the
investments in kind or in industrial properties, etc. within six (6) months as of the day when the foreign investment enterprise
is issued its business license. Article 17 The means of payment as the consideration shall conform to China’s relevant laws and administrative regulations. Where a foreign investor
uses the currency of RMB it lawfully owned as the means of payment, it shall be subject to the approval of the foreign exchange administrative
authority. Where a foreign investor uses the equity rights it is enpost_titled to dispose of as the means of payment, it shall be subject
to the provisions Chapter Four hereof. Article 18 After a foreign investor purchases by agreement the equity rights of a domestic company, and the domestic company has been altered
to be established as a foreign investment enterprise, the foreign investment enterprise’s registered capital shall be the registered
capital of the original domestic company, and the investment contribution by the foreign investor shall be the proportion of the
purchased equity in the original registered capital.

Where a foreign investor purchases the increased capital of a domestic limited liability company, the registered capital of a foreign
investment enterprise established after the merger shall be the sum of the original domestic company’s registered capital and the
increased capital. The foreign investor and other original shareholders of the merged domestic company shall, on the basis of the
asset evaluation of the domestic company, determine the proportions of their respectively contributed investments in the foreign
investment enterprise’s registered capital.

Where a foreign investor purchases the increased capital of a domestic joint stock company, the registered capital of a foreign investment
enterprise established after the merger shall be determined in accordance with the relevant provisions in the Company Law of the
People’s Republic of China. Article 19 Where a foreign investor merges a domestic enterprise by equity merger, the upper limit of the total investment amount of the foreign-funded
enterprise established after the merger shall be determined according to the following proportions, unless it is otherwise provided
in relevant state’s laws and regulations: (1) if the registered capital is less than USD 2,1 million, the total investment amount shall not exceed ten sevenths (10/7) of the registered
capital; (2) if the registered capital is more than USD 2,1 million but less than USD 5 million, the total investment amount shall not exceed 2
times of the registered capital; (3) if the registered capital is more than USD 5 million but less than USD 12 million, the total investment amount shall not exceed 2.5
times of the registered capital; (4) if the registered capital is more than USD 12 million, the total investment amount shall not exceed 3 times of the registered capital. Article 20 Where a foreign investor merges a domestic enterprise by asset merger, it shall determine the total investment amount of the foreign
investment enterprise under planned establishment according to the transaction price for purchasing the assets and the actual scale
of production and operation. The proportion of the registered capital of the foreign investment enterprise under planned establishment
in its total investment amount shall conform to relevant provisions. Chapter 3 Approval and Registration Article 21 Where a foreign investor merges a domestic enterprise by equity merger, it shall, pursuant to the total investment amount of the foreign
investment enterprise under planned establishment, the type of the enterprise and the industry it engages in, submit the following
documents to the approval authority with the corresponding approval power in accordance with the laws, administrative regulations
and departmental rules on establishment of foreign investment enterprises: (1) the resolution of the shareholders of the merged domestic limited liability company on unanimous consent of the foreign investor’s
equity merger, or resolution of the shareholders’ meeting of the merged domestic stock limited company on consent of the foreign
investor’s equity merger; (2) the application for the merged domestic company to be modified in accordance with the law into and be established as a foreign investment
enterprise; (3) the contract and articles of association of the foreign investment enterprise established after the merger; (4) the agreement on the foreign investor’s purchase of the shareholders’ equity of the domestic company or on the subscription of the
domestic company to increase capital; (5) the financial auditing report of the merged domestic company in the previous accounting year; (6) the identification certificate or incorporation certificate and the credit certificate of the investor notarized and attested according
to law; (7) the statement on the enterprises invested by the merged domestic company; (8) the business licenses (duplicates) of the merged domestic company and of the enterprises it invests in; (9) the plan for re-settlement of the merged domestic company’s employees; (10) the documents required in articles 13, 14 and 15 hereof.

Where the business scope, scale and obtainment of land use right of the foreign investment enterprise established after the merger
involves permits from other relevant governmental departments, the relevant permit documents shall be submitted along with those
provided for in the preceding paragraph. Article 22 The equity purchase agreement, capital increase agreement for domestic company shall be governed by Chinese laws, and shall include
the following contents: (1) information regarding each party to the agreements, including its name, domicile, and the name, position and nationality, etc. of
its legal representative; (2) the proportions and price of the purchased equity or the capital increased from subscription; (3) the term and method for performance of the agreements; (4) the rights and obligations of each party to the agreements; (5) the liabilities for breach of the agreement and settlement of disputes; (6) the date and place for conclusion of the agreements. Article 23 Where a foreign investor merges a domestic enterprise by asset merger, it shall, pursuant to the total investment amount of the foreign
investment enterprise under planned establishment, the type of the enterprise and the industry it engages in, submit the following
documents to the approval authority with the corresponding approval power in accordance with the laws, administrative regulations
and departmental rules on establishment of foreign investment enterprises: (1) the resolution of the property holders or authority of the domestic enterprise on agreeing to sell the assets; (2) the application for the establishment of the foreign investment enterprise; (3) the contract and articles of association of the foreign investment enterprise to be established; (4) the agreement concluded between the foreign investment enterprise to be established and the domestic enterprise on purchase of assets,
or, the agreement concluded between the foreign investor and the domestic enterprise on assets purchase; (5) the articles of association and business license (duplicates) of the domestic enterprise subject to the Merger and Acquisition; (6) the evidence of notice and public announcement to creditors by the domestic enterprise subject to the Merger and Acquisition and statement
on whether or not any objection being made by creditors; (7) the identification certificate or incorporation certificate and the credit certificate of the investor notarized and attested according
to law; (8) the plan for employees re-settlement of the domestic enterprise subject to the Merger and Acquisition; (9) the documents required to submitted in Article 13 , Article 14 and Article 15 hereof.

Where the assets of the domestic enterprise purchased and operated in accordance with the preceding paragraph involves permits from
other relevant governmental departments, the relevant permit documents shall be submitted along with those provided for in the preceding
paragraph.

Where a foreign investor purchases the assets of a domestic enterprise by agreement and invests such assets in establishing a foreign
investment enterprise, it shall not, prior to the establishment of the foreign investment enterprise, operate any business with such
assets. Article 24 The assets purchasing agreement shall be governed by the laws of China, and shall include the following contents: (1) information of each party to the agreements, including its name and domicile, and the name, position and nationality, etc. of its
legal representative; (2) the list and price of the assets under planned purchase; (3) the term and method for performance of the agreements; (4) the rights and obligations of each party to the agreements; (5) the liabilities for breach of the agreement and settlement of disputes; (6) the date and place for conclusion of the agreements. Article 25 Where a foreign investor merges a domestic enterprise to establish a foreign investment enterprise, the approval authority shall,
unless otherwise provided for in the present provisions, decide on, in accordance with the law, whether or not to grant the approval
within thirty (30) days as of the receipt of all the documents submitted. If the approval authority decides to grant the approval,
it shall issue a certificate of approval.

Where the approval authority decides to approve a foreign investor to purchase by agreement the shareholders’ equity of a domestic
company, it shall simultaneously make copies of the relevant approval documents separately to the foreign exchange administrative
authority at the equity transferor’s locality and that at the domestic company’s locality. The foreign exchange administrative authority
at the equity transferor’s locality shall issue the relevant certificate on registration of share transference foreign exchange earnings
and foreign exchange from foreign investment, which is the valid document to p

ANNOUNCEMENT OF THE GENERAL OFFICE OF MINISTRY OF COMMERCE ON CANCELING THE REPLY OF THE MINISTRY OF COMMERCE ON APPROVING TO HOLD 2006 BEIJING INTERNATIONAL CHILDREN AND TEENAGERS’ PRODUCTS FAIR”

Announcement of the General Office of Ministry of Commerce on Canceling the Reply of the Ministry of Commerce on Approving to Hold
2006 Beijing International Children and Teenagers’ Products Fair”

In January 2006, this Ministry received the relevant application materials on the “2006 Beijing International Children and Teenagers’
Products Fair” sponsored under the name of the China Foundation of Culture and Arts for Children (hereinafter referred to as the
CFCAC) and hosted by the Beijing Culture Development Center for Returned Overseas Chinese Businessmen. Upon verification, the relevant
materials were complete and met the approval criteria; therefore, the Ministry approved the CFCAC to host the exhibition with the
Reply of the Ministry of Commerce on Approving to Hold 2006 Beijing China International Children and Teenagers’ Products Exhibition”
(Shang Mao Pi [2006] No. 68.)After the prosecution by the CFCAC and investigation by the public security department, it is identified
that the director of the Beijing Culture Development Center for Returned Overseas Chinese Businessmen who used to be employed by
the CFCAC has carved seal of the CFCAC without authorization, and forged application materials. During business invitation and exhibition
arrangement, the Beijing Culture Development Center for Returned Overseas Chinese Businessmen has forged the documents and electronic
seal of the Ministry of Commerce. The director of the center has now been detained by the public security department.

Given that the applicant obtained administrative approval for the “2006 Beijing China International Children and Teenagers’ Products
Exhibition” by fraud, the Ministry of Commerce decides to cancel the Reply of the Ministry of Commerce on approving to hold 2006
Beijing China International Children and Teenagers’ Products Exhibition (Shang Mao Pi [2006] No. 68) according to the provision of
Article 69 in the Administrative License Law of the People’s Republic of China in order to enforce law perfectly, maintain operation
order of exhibition business, and protect the legitimate rights and interests of the CFCAC and the exhibitors.

The announcement is hereby notified.

The General Office of Ministry of Commerce

August 17 2006

The General Office of the Ministry of Commerce
2006-08-17

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE ISSUE OF CLARIFYING THE EFFECTS OF RELEVANT DOCUMENTS OF TAXATION ADMINISTRATION ON BUSINESS CONTACTS AMONG ASSOCIATED ENTERPRISES

Circular of the State Administration of Taxation on the Issue of Clarifying the Effects of Relevant Documents of Taxation Administration
on Business Contacts among Associated Enterprises

Guo Shui Han [2006] No. 807

Bureaus of State Taxation and Local Taxation in all provinces, autonomous regions, municipalities directly under the Central Government
and cities specially designated in the State plan:

Considering that the Circular of the State Administration of Taxation on Revising Regulations for the Taxation Administration on Business
Contacts among Associated Enterprises (Guo Shui Fa [2004] No. 143) is a revision to part of the provisions in the Circular of the
State Administration of Taxation on Printing and Distributing Regulations for the Taxation Administration on Business Contacts among
Associated Enterprises (Guo Shui Fa [1998] No. 059) in accordance with the Law of the People’s Republic of China on Tax Collection
which came into force as of May 1, 2001, and its Detailed Rules for the Implementation of the Law on Tax Collection which came into
force as of October 15, 2002, the two documents are interdependent and inter-complementary. In order to avoid the occurrence of ambiguity
in the administrative enforcement of taxation laws and regulations, it is hereby clarified that the articles and annexes in the document
coded Guo Shui Fa [1998] No. 059 which fail to be revised and abolished by the document coded Guo Shui Fa [2004] No. 143 shall be
still effective.

State Administration of Taxation

August 23, 2006

State Administration of Taxation
2006-08-23

CIRCULAR OF REGISTRATION BUREAU OF FOREIGN-INVESTED ENTERPRISE OF STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ON INITIATING THE NEW EDITION OF BUSINESS LICENSE FOR FOREIGN-INVESTED ENTERPRISE

Circular of Registration Bureau of Foreign-invested Enterprise of State Administration for Industry and Commerce on Initiating the
New Edition of Business License for Foreign-invested Enterprise

Gong Shang Wai Qi Zhu Han [2006] No. 28

Bureaus for Industry and Commerce in all provinces, autonomous regions, municipalities directly under the Central Government and cities
specially designated in the State plan:

In accordance with the new Regulations on Administration of Registration of Companies, Registration Bureau of Foreign-invested Enterprise
of State Administration for Industry and Commerce makes some adjustments on part of the items and patterns in the business license
for foreign-invested enterprise. The new edition of Business License for Corporation changes “Operating Period” to “Business Period”,
and “Enterprise Type” to “Company Type”, cancels the item of “Branches” and adds 2 items of “Paid-up Capital” and “Stockholder (Initiator)”;
and the annual inspection time in the specification of the duplicate copy is changed to “March 1 to June 30”; and the pattern of
the duplicate copy is changed to A4. The new edition of Business License changes “Operating Period” to “Business Period”; the annual
inspection time in the specification of the duplicate copy is changed to “March 1 to June 30”; and the pattern of the duplicate copy
is changed to A4.

All authorized bureaus shall, after the exhaustion of the old edition of licenses, draw and initiate the new edition of Business License
for Foreign-invested Enterprise, and do well the linkage work between the old and new editions of Business Licenses. And the old
edition of licenses shall fall into disuse before March 1, 2007.

During the re-issuance of licenses, all authorized bureaus shall, in accordance with the provisions in the Implementation Opinions
on Relevant Issues concerning the Examination and Approval, Registration and Administration of Foreign-invested Companies (Gong Shang
Wai Qi Zi [2006] No. 81), adjust the company types of the existing foreign-invested companies and shall finish the aforesaid adjustment
before the end of the annual inspection on June 30, 2007.

Registration Bureau of Foreign-invested Enterprise of State Administration for Industry and Commerce

August 30, 2006

Registration Bureau of Foreign-invested Enterprise of State Administration for Industry and Commerce
2006-08-30

1...575859...83 Page 58 of 83

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

NOTIFICATION NO.13, 2006 OF FOREIGN ASSISTANCE PROJECT BID BOARD OF THE MINISTRY OF COMMERCE

REPLY OF THE CHINA BANKING REGULATORY COMMISSION CONCERNING LAUNCHING THE BUSINESS OF INTER-BANK ENTRUSTED LOANS AMONG FINANCIAL INSTITUTIONS BY THE AGRICULTURAL DEVELOPMENT BANK OF CHINA

MEASURES FOR THE ADMINISTRATION OF PILOT MARGIN TRADING OF SECURITIES COMPANIES

ANNOUNCEMENT ON PUNISHMENT FOR THE UNPAID BID-WINNING EARNEST MONEY ON ENTERPRISES OF SECOND BIDDING IN 2006 FOR QUANTITY OF EXPORT LICENSE OF TEXTILES EXPORTED TO EU AND THE U.S

THE REGULATIONS CONCERNING THE EXAMINATION ON THE EXECUTION OF STATISTICS LAW

MEASURES FOR THE ADMINISTRATION OF THE INVESTMENT INTO OVERSEAS INSURANCE ENTERPRISES BY NON-INSURANCE INSTITUTIONS

ANNOUNCEMENT OF THE GENERAL OFFICE OF MINISTRY OF COMMERCE ON CANCELING THE REPLY OF THE MINISTRY OF COMMERCE ON APPROVING TO HOLD 2006 BEIJING INTERNATIONAL CHILDREN AND TEENAGERS’ PRODUCTS FAIR”

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE ISSUE OF CLARIFYING THE EFFECTS OF RELEVANT DOCUMENTS OF TAXATION ADMINISTRATION ON BUSINESS CONTACTS AMONG ASSOCIATED ENTERPRISES

CIRCULAR OF REGISTRATION BUREAU OF FOREIGN-INVESTED ENTERPRISE OF STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ON INITIATING THE NEW EDITION OF BUSINESS LICENSE FOR FOREIGN-INVESTED ENTERPRISE

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