Circular of the State Administration of Foreign Exchange Concerning the Printing and Distribution of the Detailed Rules for Implementing
the Measures for the Administration of Personal Foreign Exchange

Hui Fa [2007] No.1

The branches and foreign exchange management departments of the State Administration of Foreign Exchange in each province, autonomous
region and municipality directly under the Central Government, the branches in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo , each
Chinese-funded appointed foreign exchange banks and China UnionPay Co., Ltd.:

For the purpose of implementing the Measures for the Administration of Personal Foreign Exchange (Order No.3 [2006] of the People’s
Bank of China), the State Administration of Foreign Exchange enacted the Detailed Rules for Implementing the Measures for the Administration
on Individual Foreign Exchange (hereinafter referred to as Detailed Rules). We hereby print and distribute these Detailed Rules to
you. You shall comply with and implement them earnestly.

Each branch and foreign exchange management department of the State Administration of Foreign Exchange shall forward this Circular
to all sub-branches, urban commercial banks, rural commercial banks and foreign-funded banks within their respective jurisdictions
once they receive this Circular, provide trainings on business operation to the subordinate sub-branches and banks as soon as possible,
and publicize the special telephone numbers for interpreting the related policies. Each Chinese-funded appointed foreign exchange
banks should forward this Circular to their subordinate branches. In case any entity faces any problem when implementing this Circular,
please feedback to the State Administration of Foreign Exchange in a timely manner.

Appendix: Detailed Rules for Implementing the Measures for the Administration on Individual Foreign Exchange

The State Administration of Foreign Exchange

January 5, 2007
Appendix:
Detailed Rules for Implementing the Measures for the Administration on Individual Foreign Exchange
Chapter I General Provisions

Article 1

Under the Measures for the Administration on Individual Foreign Exchange, the present Detailed Rules are formulated with a view to
regulating and facilitating the foreign exchange business operation of banks and personals.

Article 2

The administration of total annual amount shall be adopted for personal settlement and domestic personal purchase of foreign exchange.
The total annual amount shall be the value equivalent to USD 50,000 Dollars for each person every year. The State Administration
of Foreign Exchange may make adjustment on the total annual amount in light of the position of payment balance.

With regard to the personal settlement and purchase of foreign exchange, in case it is within the total annual amount, it shall be
handled at a bank by presenting his/her valid identity certificate; if beyond the total annual amount, those under the current account
shall be handled under Articles 10, 11 and 12 of the present Detailed Rules, while those under the capital account shall be handled
under the related provisions of the “Administration of the Personal Foreign Exchange under the Capital Account” in the present Detailed
Rules .

Article 3

The foreign exchange purchased by an individual may be remitted abroad, deposited into his/her foreign exchange savings account or
carried out of the territory of the country under the related provisions.

Article 4

As regard personal purchase or settlement of foreign exchange within the total annual amount, he/she may entrust his/her linear relative
to handle on his/her behalf; in respect of a personal purchase, settlement or overseas personal purchase of foreign exchange beyond
the total annual amount, he/she may entrust other person to handle upon the strength of the related evidential materials under the
provisions in the present Detailed Rules.

Article 5

When carrying foreign currency banknotes into or out of the country, an individual shall conform to the related administrative provisions
of the state.

Article 6

Appointed foreign exchange banks (hereinafter referred to as bank) shall check and verify the authenticity of personal foreign exchange
business under the provisions of the present Detailed Rules, and may not forge or alter any transaction.

A bank shall, through the personal foreign exchange sale and settlement management information system (hereinafter referred to as
personal foreign exchange sale and settlement system), handle the business of personal purchase or settlement of foreign exchange
and record the related information in an authentic, accurate and integrated way.

Article 7

The State Administration of Foreign Exchange and branches thereof (hereinafter referred to as foreign exchange departments) shall
take charge of collecting statistical data on, monitoring, administrating and examining the personal foreign exchange business.

Chapter II Administration of the Personal Foreign Exchange under the Current Account

Article 8

Personal foreign exchange income and expenditure under the current account may be divided into business foreign exchange income and
expenditure and non-business foreign exchange income and expenditure.

Article 9

Personal business foreign exchange income and expenditure under the current account shall be handled under the rules as follows:

(1)

as regard an personal foreign trade operator, he/she shall handle the purchase, payment, collection and settlement of foreign exchange
through his/her foreign exchange settlement account; the declaration of his/her foreign exchange income and expenditure, import-export
verification and writing-off and payment balance shall be administered as those of an institution.

Personal foreign trade operator means an individual that conducts foreign trade business activities after fulfilling the industrial
and commercial registration or other formalities for business operation and gaining an personal industrial and commercial business
license or other certificates for business operation as well as going through the formalities of registration under the related provisions
of the competent department of commerce under the State Council and obtaining the right to conduct foreign trade .

(2)

In case a personal industrial and commercial household entrusts an enterprise with foreign trade qualification to conduct the import
business, he/she shall purchase foreign exchange by presenting the agency contract (agreement) on import concluded between it and
the agency enterprise, and the purchased foreign exchange shall be directly transferred to the agency enterprise￿￿s foreign exchange
account under the current account through his/her foreign exchange settlement account.

In case a personal industrial and commercial household entrusts an enterprise with foreign trade qualification to conduct the export
business, he/she may handle the collection or settlement of foreign exchange through his/her foreign exchange settlement account.
The settlement of foreign exchange shall be handled by presenting the agency contract (agreement) on export concluded between it
and the agency enterprise and the export goods declaration form of the agency enterprise. The agency enterprise may take the collection
notice of the personal industrial and commercial household as the voucher for verification and writing-off, after it reports the
name, account number and other materials of the personal industrial and commercial household required as necessary for verification
and writing-off to the foreign exchange department of the place where it is located for record

(3)

An overseas personal shall conduct the settlement of foreign exchange under the item of tourism and shopping by presenting his/her
valid identity certificate and his/her declaration form of tourism and shopping.

Article 10

With regard to a domestic personal, if the amount involved in the non-business settlement of foreign exchange under the current account
is more than the total annual amount, he/she shall handle it at a bank by presenting his/her valid identity certificate and the evidential
materials as follows:

(1)

donation: the notarized donation contract or agreement. The donation shall comply with the related provisions;

(2)

alimony: linear relative relationship certificate or notarized support relationship certificate and the related certificates on the
income of the overseas payer, such as the bank deposit certificate and the receipt of tax payment for personal income, etc;

(3)

income from inheritance of legacy: legal instrument or notarization on inheritance of legacy;

(4)

income from insurance of foreign exchange: insurance contract and the payment certificate of the insurance institution. Applying for
foreign exchange insurance shall comply with the related provisions of the state.

(5)

income from royalties and fees for exclusive rights: payment certificate, agreement or contract;

(6)

income from providing legal, accounting, consulting and public relation services: payment certificate, agreement or contract;

(7)

emolument of employees: employment contract and income certificate;

(8)

income from abroad investment: certificate on foreign exchange registration for abroad investment, resolution on profit distribution,
dividend payment letter or other income certificates;

(9)

others: the related certificates and payment vouchers.

Article 11

As respect to an overseas individual, if the amount involved in the non-business settlement of foreign exchange under the current
account is more than the total annual amount, he/she shall handle it at a bank by presenting his/her valid identity certificate and
the evidential materials as follows:

(1)

expenditure for house rent and so on: the house-leasing contract as registered at the house management department, invoice or payment
advice;

(2)

expenditure for personal consumption: the related contracts or invoices;

(3)

expenditure for medical care and learning: charging certificates of domestic hospitals (schools);

(4)

other expenditures: the related certificates and payment vouchers.

In case the amount involved in any single transaction of the settlement of foreign exchange mentioned above exceeds USD 50,000 for
the equivalent, the RMB capital obtained from such settlement shall be directly transferred to the domestic RMB account of the counterpart
of the transaction.

Article 12

With respect to a domestic individual, if the amount involved in the non-business purchase of foreign exchange under the current
account is more then the total annual amount, he/she shall deal with it at a bank by presenting his/her valid identity certificate
and the related evidential materials indicating the trading volume.

Article 13

An overseas individual shall purchase foreign exchange with legal income of RMB under the current account and reconvert the RMB unused
into foreign currency under the rules as follows:

(1)

with regard to the legal income of RMB under the current account gained by an overseas individual within the borders, he/she shall
purchase foreign exchange by presenting his/her valid identity certificate and the related evidential materials indicating the trading
volume (inclusive of tax voucher).

(2)

an individual shall reconvert the RMB converted by him/her but unused into foreign currency by presenting his/her valid identity certificate
and the original exchange memo, the validity term of the original exchange memo is 24 months from the exchange date; if the total
amount converted by an individual in a same day is not more than the amount equivalent to USD500 (including USD500) or the total
amount converted by an individual in a same day at the premises within the boundaries but outside the customs before his/her leaving
is not more than the amount equivalent to USD1000 (including USD1000), he/she may deal with it by presenting his/her valid identity
certificate.

Article 14

In case a domestic individual remits foreign exchange abroad for expenses under the current account, he/she shall handle it under
the rules as follows:

In case the total amount of the foreign exchange remitted abroad from his/her foreign exchange savings account in a same day does
not exceed the amount equivalent to USD50, 000 (including USD 50,000), he/she shall deal with it at a bank by presenting his/her
valid identity certificate; if the total amount is more than the aforesaid amount, he/she shall handle it by presenting the authentic
voucher under the current account indicating the trading volume.

In case the total amount of the foreign currency banknotes held by an individual and remitted abroad dose not exceed the amount equivalent
to USD10, 000 (including USD 10,000), he/she shall deal with it at a bank by presenting his/her valid identity certificate; if the
total amount is more than the aforesaid amount, he/she shall handle it by presenting the authentic voucher under the current account
indicating the trading volume, the Customs Luggage Declaration Form of the People’s Republic of China for Incoming Passengers signed
and sealed by the customs or his/her bank form for the withdrawal of foreign currency banknote of the original bank of deposit.

Article 15

An overseas individual shall remit abroad foreign exchange under the current account at a bank under the rules as follows:

(1)

in case the foreign exchange remitted abroad is from his/her foreign exchange savings account, he/she shall deal with it by presenting
his/her valid identity certificate;

(2)

in case the foreign exchange remitted abroad is foreign currency banknotes held by the individual, where the total amount remitted
in a same day does not exceed USD10,000 (including USD10,000), he/she shall deal with it by presenting his/her valid identity certificate;
where the total amount is more than the aforesaid amount, he/she shall also provide the Customs Luggage Declaration Form of the People’s
Republic of China for Incoming Passengers signed and sealed by the customs or his/her bank form for the withdrawal of foreign currency
banknote of the original deposit bank .

Chapter III Administration of the Personal Foreign Exchange under the Capital Account

Article 16

A domestic individual shall make overseas direct investment under the related provisions of the state. With regard to the needed
foreign exchange, he/she may purchase foreign exchange or remit abroad his/her self-owned foreign exchange upon the approval of the
local foreign exchange department and shall conduct the corresponding formalities for the registration of foreign exchange for investing
abroad.

In case a domestic individual or an overseas individual who habitually resides within borders of China sets up or controls an overseas
special purpose company and makes return investment, the foreign exchange income and expenditure involved shall be handled under
the related provisions of the Circular of the State Administration of Foreign Exchange on Related Matters about Foreign Exchange
Administration for Domestic Residents to Engage in Financing and Return Investment through Overseas Special Purpose Companies.

Article 17

A domestic individual may use foreign exchange or RMB to make such financial investment as overseas regular earnings or rights and
interests and so on, through qualified domestic institutional investors including banks and fund management companies.

Article 18

In case a domestic individual takes part in such foreign exchange business as the employee stock ownership plan or stock option plan
of an overseas listed company, such foreign exchange business involved may not be handled until the listed company or its domestic
agency has filed a uniform application and has been approved by the foreign exchange department.

The foreign exchange incomes gained by a domestic individual from the sale of the stocks under the employee stock ownership plan or
stock option plan of an overseas listed company and those from dividend may be settled or transferred to the employees’ personal
foreign exchange savings accounts after being remitted to the domestic special foreign exchange account that is opened by the listed
company or its domestic agency.

Article 19

In case a domestic individual pays for any foreign exchange insurance premium to a domestic insurance institution whose foreign exchange
insurance business has been approved, he/she shall handle the procedures for the purchase and payment of foreign exchange by presenting
the insurance contract and the advise of payment sent by the insurance institution.

The insurance money, which is compensated or paid to a domestic individual beneficiary under the item of foreign exchange insurance,
may be deposited into his/her foreign exchange savings account or may be settled.

Article 20

In case a domestic individual emigrating abroad transfers abroad his/her domestic properties existing before obtaining the identity
of legal immigrant or a foreign citizen transfers abroad the domestic legacies he/she has inherited under law, he/she shall handle
it under the related provisions of the Interim Measures for Administering the Sale and Payment of Foreign Exchanges Owing to the
Transfer of Personal Properties to Foreign Countries.

Article 21

In case an overseas personal purchases or sells any commercial house within China or merges a domestic enterprise of real estate
through transferring stock equity, the foreign exchange involved shall be administered in light of the Circular of the Construction
Department and the State Administration of Foreign Exchange Concerning Some Matters on Regulating the Administration of Foreign Exchange
in the Real Estate Market and other related provisions.

Article 22

An overseas individual may invest in domestic B shares under the related provisions; if he/she invests in any other financial products
that are issued and circulated domestically, he/she shall deal with it through a qualified overseas institutional investor.

Article 23

Under the convertibility progress of RMB under the capital account, the administration on granting loans to overseas individuals,
borrowing foreign debts, providing external guarantee and directly conducting transactions involving overseas commodity futures or
financial derivative products by domestic individuals shall be loosened step by step, and the detailed measures shall be set down
separately.

Chapter IV Administration of Personal Foreign Exchange Accounts and Foreign Currency Banknotes

Article 24

The foreign exchange departments shall administer personal foreign exchange accounts and foreign currency banknotes in light of the
category of the parties concerned and the nature of the transactions involved. A bank shall, when opening a foreign exchange account
for an individual, distinguish between a domestic individual and an overseas individual. The accounts may be classified into foreign
exchange settlement account, foreign exchange savings account and capital account in light of the nature of the transactions involved.

Article 25

A foreign exchange settlement account means an account opened by a personal foreign trade operator or personal industrial and commercial
household to conduct foreign exchange revenue and expenditure related to business under the current account. Its opening, use and
closing shall be administered as those of the account of an institution.

Article 26

For opening a foreign exchange savings account at a bank, an individual shall present his/her valid identity certificate, and the
name of the account shall be identical with that indicated in his/her valid identity certificate.

Article 27

For opening a special investment account for foreign investors, a special account for a special purpose company, a special account
for investment and merger or any other foreign exchange accounts under the capital account, or when transferring the capital in such
account domestically or remitting it abroad, an individual shall obtain the approval of the foreign exchange department.

Article 28

The domestic transfer of the capital in an personal foreign exchange savings account shall be handled under the rules as follows:

(1)

the capital transfer between the accounts of the same individual shall be dealt with by presenting his/her valid identity certificate;

(2)

the capital transfer between the account of an individual and that of his/her linear relative shall be dealt with by presenting the
valid identity certificates of the both parties and the certificate concerning their linear relative relationship;

(3)

the capital transfer between the account of a domestic individual and that of an overseas individual shall be treated as a cross-border
transaction for administration.

Article 29

Capital in foreign exchange settlement account and foreign exchange savings account of the same individual may be transferred each
other, but the capital transferred from the foreign exchange savings account to the foreign exchange settlement account may only
used for the foreign payment of the transferring day and may not be settled after the transfer is made.

Article 30

In case the total amount of foreign currency banknotes withdrawn by an individual does not exceed the amount equivalent to USD10,
000 (including USD10, 000), he/she may handle it directly at a bank; if the total amount is more than the aforesaid amount, he/she
shall report it to the local foreign exchange department for record in advance by presenting his/her valid identity certificate and
the evidential materials regarding the withdrawn purpose. The bank shall, upon the strength of his/her valid identity certificate
and the Filing Form for the Withdrawal of Foreign Currency Banknotes (see Appendix 1), handle the formalities for withdrawing foreign
currency banknotes for the individual.

Article 31

In case an individual deposits foreign currency banknotes into his/her foreign exchange savings account, where the total amount deposited
in a same day is not more than the amount equivalent to USD50, 000 (including USD50, 000), he/she may handle it directly at a bank;
if it is more than the aforesaid amount, he/she shall handle it at a bank by presenting his/her valid identity certificate, the Customs
Luggage Declaration Form of the People’s Republic of China for Incoming Passengers signed and sealed by the customs or his/her bank
form for the withdrawing foreign currency banknote of the original deposit bank . The bank shall mark the name of the deposit bank,
the amount deposited and the deposit date on the related vouchers.

Chapter V Personal Foreign Exchange Sale and Settlement Management Information System

Article 32

A bank qualified to operate foreign exchange sale and settlement business as well as accessing and using the personal foreign exchange
sale and settlement system may handle the business of personal foreign exchange sale and settlement directly through this system.

Article 33

For applying for accessing personal the foreign exchange sale and settlement system, a bank, either its headquarters or any of its
branches, shall meet the technical conditions for the access of the personal foreign exchange sale and settlement system (see Appendix
2), have trained technical personnel and business operators and be able to maintain the normal operation of the system.

Article 34

A bank shall fill in the bank outlets information registration form of the personal foreign exchange sale and settlement system and
apply for accessing to the system to the foreign exchange department. The foreign exchange department shall approve the application
upon confirming it as competent.

Article 35

All the businesses of personal foreign exchange sale and settlement handled by a bank shall be incorporated into the personal foreign
exchange sale and settlement system except under the following circumstances:

(1)

the foreign exchange sale and settlement happens at foreign currency exchange outlets;

(2)

the foreign exchange settlement is handled through bank counters and the amount thereof is less than that equivalent to USD100 (including
USD100), including foreign exchange settlement of tail series and foreign exchange settlement of transferring interest, etc;

(3)

the foreign exchange settlement for domestic consumption is handled through foreign currency cards:

(4)

RMB banknotes is withdrawn at self-service banks with overseas cards; or

(5)

domestic cards are used overseas and repaid by purchasing foreign exchange overseas.

Article 36

When handling foreign exchange sale and settlement business for an individual, a bank shall follow the following process:

(1)

to inquire about the situation of foreign exchange sale and settlement of this individual through the personal foreign exchange sale
and settlement system;

(2)

to check and verify the evidential materials presented by this individual;

(3)

to record the business data on foreign exchange sale and settlement into the personal foreign exchange sale and settlement system
sum by sum; and

(4)

to print the Letter of Notice on Foreign Exchange Settlement/Purchase through the personal foreign exchange sale and settlement system
and maintain it as accounting voucher for future reference.

Article 37

The foreign exchange department shall take charge of checking and verifying the normative of the business operations of the banks
within its jurisdiction and the integrity and accuracy of the business data recorded.

Chapter VI Supplementary Provisions

Article 38

In case an individual entrusts his/her linear relative to deal with the purchase or settlement of foreign exchange within the total
annual amount, he/she shall present the valid identity certificates of both the entrusting party and the entrusted party, letter
of authority issued by the entrusting party and certificate on the linear relative relationship; if he/she entrusts other person
to deal with it on behalf o him/her under any other circumstance, he/she shall provide the related evidential materials prescribed
in the present Detailed Rules, in addition to the valid identity certificates of both the entrusting party and the entrusted party
and the letter of authority.

Linear relatives shall include parents, children and spouses. Certificate on linear relative relationship means the household register
or marriage certificate, which may prove the linear relative relationship, or any other valid certificate on linear relative relationship
issued by such governmental grass-root organizations as sub-district office, the public security department or the notarization department.

Article 39

If any bank or individual violates any provision of the Measures for the Administration on Individual Foreign Exchange and the present
Detailed Rules, it/he shall be punished by the foreign exchange department under the Regulations of the People’s Republic of China
on Foreign Exchange Control and other related provisions; if it is not explicitly provisioned in the Regulations of the People’s
Republic of China on Foreign Exchange Control or any other related provisions, a fine of not more than 30,000 Yuan shall be imposed
upon a bank and a fine of not more than 1000 Yuan upon an individual.

Article 40

The State Administration of Foreign Exchange shall be responsible for interpreting the present Detailed Rules.

Article 41

The present Detailed Rules shall go into effect as of February 1, 2007.

Appendix 1

￿￿

Appendix 1:

Filing Form for the Withdrawal of Foreign Currency Banknotes

￿￿