REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON THE ADMINISTRATION OF THE IMPORT AND EXPORT OF ENDANGERED WILD ANIMALS AND PLANTS

Order of the State Council of the People’s Republic of China

No. 465

The Regulations of the People’s Republic of China on the Administration of the Import and Export of Endangered Wild Animals and Plants,
which were adopted at the 131st executive meeting of the State Council on April 12, 2006, is hereby promulgated and shall enter into
effect as of September 1, 2006.
Wen Jiabao, Premier of the State Council,

April 29, 2006

Regulations of the People’s Republic of China on the Administration of the Import and Export of Endangered Wild Animals and Plants

Article 1

The present Regulations is formulated for the purpose of intensifying administration on the import and export of endangered wild
animals and plants as well as the products thereof, protecting and reasonably utilizing the resources of wild animals and plants
and performing the Convention on the International Trade of Endangered Species of Wild Animals and Plants (hereinafter referred to
as the Convention).

Article 2

The import or export of the endangered animals and plants as well as the products which are restricted by Convention, shall be subject
to the present Regulations.

As to the export of the endangered animals and plants as well as the products thereof under the special protection of sour country
exporting , the relevant provisions of the present Regulations on the export of endangered animals and plants as well as the products
thereof shall be applied.

Article 3

The competent departments of forestry and agriculture (fishery) of the State Council (hereinafter referred to as the competent departments
of endangered animals and plants under the State Council) shall, in light of their duties and work division, take charge of the administration
of the import and export of endangered animals and plants as well as the products thereof throughout the country and well do the
relevant work related to the performance of the Convention.

Other relevant departments of the State Council shall, according to the provisions of relevant laws and administrative regulations,
well do the relevant work within their respective functions and duties.

Article 4

The state administrative organs in charge of the import and export of endangered species shall perform the Convention on behalf of
the Chinese Government, and shall, according to the provisions of the present Regulations, issue upon verification Import/Export
Permission Certificates for the wild animals and plants as well as the products thereof under the special protection of the state,
whose export has been approved by the competent departments of endangered animals and plants under the State Council, as well as
the endangered wild animals and plants and the products thereof, whose import or export has been restricted by the Convention yet
approved by the competent departments of endangered animals and plants under the State Council.

Article 5

The state scientific institutions for the import and export of endangered species shall, according to the present Regulations, organize
the relevant experts in terrestrial wild animals, aquatic wild animals and wild plants to engage in the science consultation on the
import and export of endangered wild animals and plants as well as the products thereof.

Article 6

It is prohibited to import or export any endangered wild animals and plants as well as the product thereof, whose import or export
is prohibited by the Convention for any purpose of commercial trade. Where any import or export is required for such special reasons
as scientific research, domestication and propagation, artificial cultivation and cultural exchange, it shall be subject to the approval
of the competent departments of endangered animals and plants under the State Council. In the case of any matter subject to the approval
of the State Council according to relevant provisions, it shall be reported to the State Council for approval.

It is prohibited to export any wild animals and plants and products there of with a great values, whose name is yet to be decided
or which is newly found , and any wild animal and plant and the product thereof whose export has been prohibited by the State Council
or the competent departments of endangered animals and plants under the State Council.

Article 7

The import or export of endangered animals and plants as well as the products thereof, which are restricted by the Convention to
be imported and exported, and the export of wild animals and plants as well as the products thereof that have been restricted by
the State Council or the competent departments of endangered animals and plants under the State Council, shall be subject to approval
of the competent departments of endangered wild animals and plants under the State Council.

Article 8

The import of endangered wild animals and plants as well as the products thereof shall meet the requirements as follows:

(1)

The utilization of endangered wild animals and plants as well as the products thereof meets the relevant provisions of the State;

(2)

Having effective control measures and meeting the requirements for ecological security;

(3)

The materials as provided by the relevant applicant are authentic and effective; and

(4)

Meeting any other requirement as publicized by the competent departments of endangered animals and plants under the State Council.

Article 9

The export of endangered wild animals and plants as well as the products thereof shall meet the requirements as follows:

(1)

Meeting the requirements for ecological security as well as public benefits;

(2)

The origins are legal;

(3)

The materials as provided by the relevant applicant are authentic and effective;

(4)

Not falling within the prohibited categories of export as prescribed by the State Council or the competent departments of endangered
animals and plants under the State Council; and

(5)

Meeting any other requirement as publicized by the competent departments of endangered animals and plants under the State Council.

Article 10

When importing or exporting any endangered wild animals and plants as well as the product thereof, an applicant shall file an application
with the competent departments of wild animals and plants of the province, autonomous region or municipality directly under the Central
Government where he is located, and submit the following materials as well:

(1)

The Import/Export Contract;

(2)

The names, varieties, quantities and purposes of use of endangered wild animals and plants as well as the products thereof;

(3)

Instruction of materials on the facilities for loading and transporting live endangered wild animals and plants as well as the products
thereof; and

(4)

Other materials that shall be submitted, as are publicized by the competent departments of endangered animals and plants under the
State Council.

The relevant competent departments of wild animals and plants of the province, autonomous region or municipality directly under the
Central Government shall, within 10 workdays as of receiving the applications, subscribe the materials with there opinions and transfer
all the application materials to the competent departments of endangered animals and plants under the State Council.

Article 11

The competent departments of endangered animals and plants under the State Council shall make a decision on approval or disapproval
and notify the relevant applicant in written form, within 20 workdays as of receiving the application. If the competent departments
fail to make a decision within 20 workdays, the term may, upon the approval of the principal thereof, be extended for 10 workdays,
and the extended term and relevant explanations thereon shall be noticed to the relevant applicant.

Article 12

Where an applicant has obtained the relevant approval documents for the import or export from the competent departments of endangered
animals and plants under the State Council, he shall, within the effective time limit as prescribed in the approval documents, apply
to the state competent organs in charge of the import and export of endangered wild animals and plants for verifying and issuing
an Import/Export Permission Certificate.

The following materials shall be submitted when applying for verifying and issuing an Import/Export Permission Certificate:

(1)

An Application Form for the Import/Export Permission Certificate;

(2)

The Approval Documents for Import or Export; and

(3)

The Import / Export Contract.

In the case of import of any endangered wild animals and plants or any of product thereof, whose import or export is restricted by
the Convention, an applicant shall additionally submit the relevant certification materials on export permission as verified and
issued by the competent departments of endangered wild animals and plants of the export country (region). In the case of export of
any endangered wild animals and plants or any of product there of, whose import or export is restricted by the Convention for any
purpose of commercial trade, an applicant shall additionally submit the relevant certification materials on import permission as
verified and issued by the competent departments of endangered wild animals and plants of the import country (region). In the case
of any re-export of endangered wild animals and plants as well as the products thereof, which have been imported, an applicant shall
additionally submit the relevant declaration form of imported goods as subscribed by the customs as well as the import permission
certificates as signed by the customs.

Article 13

The administrative organ in charge of the import and export of endangered wild animals and plants shall, within 20 workdays as of
receiving the application, make a decision on examination. Where the application materials are complete and meet the provisions of
the present Regulations as well as the requirements of the Convention, an Import/Export Permission Certificates shall be issued upon
verification. In the case of disapproval for issuing an Import/Export Permission Certificates upon verification, the disapproval
shall be noticed to the applicant and the competent departments of endangered animals and plants under the State Council in written
form, and the relevant explanations shall be given. Where a decision cannot be made within 20 workdays, the term may, upon the approval
of the principal of the administrative organ in charge of the import and export of endangered wild animals and plants, be extended
for 10 workdays, and the extended term and the relevant explanations thereon shall be noticed to the relevant applicant.

In case the administrative organ in charge of the import and export of endangered wild animals and plants finds any application material
failing to meet the relevant requirements when carrying out an examination, it shall inform the applicant in a one-off manner of
all the contents that shall be supplemented and corrected.

Article 14

Where the state administrative organ in charge of the import and export of endangered wild animals and plants needs, during the process
of verifying and issuing an Import/Export Permission Certificates, to consult the opinions of the state scientific institution for
the import and export of endangered wild animals and plants or needs to confirm the relevant contents of the certification materials
on import/export permission with the relevant overseas institutions, it shall transfer the relevant materials to the state scientific
institution for the import and export of endangered wild animals and plants for consulting or to the relevant overseas institutions
for confirming the relevant contents within 5 workdays as of receiving the application. The time for consulting opinions and confirming
contents shall not be calculated into the workdays for the verification and issuance of the Import/Export Permission Certificates.

Article 15

The competent department of endangered animals and plants under the State Council, the competent departments of wild animals and
plants of provinces, autonomous regions and municipalities directly under the Central Government as well as the state administrative
organ in charge of the import and export of endangered wild animals and plants shall, when conducting the examination and approval
of endangered wild animals and plants as well as the products thereof, not charge any fee other than the fees as provided for by
the state.

Article 16

Where any import or export of endangered wild animals and plants or any of its products has led to or may lead to any serious injury
or negative impact on the resources of wild animals and plants or ecological security, the competent departments of endangered animals
and plants under the State Council shall bring forward the relevant measures for temporarily prohibiting or restricting the import/export
of endangered wild animals and plants as well as the products thereof, and carry them out after reporting them to the State Council
for approval.

Article 17

As to any endangered wild animals and plants or any of products thereof, which are obtained from a sea area not falling within the
jurisdiction of any country, and enters into the territory of China, they shall be subject to the relevant provisions of the present
Regulations.

Article 18

Where any import of endangered wild animals and plants as well as the products thereof relates to the administration of foreign species,
or any export thereof relates to the management of seed resources, it shall be subject to the relevant provisions of the state.

Article 19

The import or export of endangered wild animals and plants as well as the products thereof shall be carried out at the ports, which
are appointed by the competent department of endangered animals and plants under the State Council in coordination with the General
Administration of Customs and the State Administration of Quality Supervision, Inspection and Quarantine, and are approved by the
State Council.

Article 20

The import or export of endangered wild animals and plants as well as the products thereof shall be conducted in light of the varieties,
quantity, port and time limit as prescribed on the Import/Export Permission Certificate.

Article 21

As to any import or export of endangered wild animals and plants as well as the products thereof, the relevant importer or exporter
shall submit to the customs the Import/Export Permission Certificate, be subject to the customs supervision, and shall, within 30
days as of customs release, submit to the state administrative organ in charge of the import and export of endangered species a duplicate
copy of the Import/Export Permission Certificate that has been verified by the customs for archival filing.

Any departure from the territory, transfer or transshipment of endangered wild animals and plants as well as the products thereof
shall be subject to the customs supervision throughout the period from the time of arrival into the territory to the time of departure
from the territory.

Any endangered wild animals and plants or any of its products, which goes into or out of specific customs surveillance zones or bonded
places such as the bonded zones and export processing zones, shall be subject to the customs supervision and shall go through the
relevant formalities for import or export in light of the provisions of the General Administration of Customs as well as the state
administrative organ in charge of the import and export of endangered species.

Any import or export of endangered wild animals and plants as well as the products thereof shall be declared to the entry and exit
inspection and quarantine organ on the strength of the relevant Import/Export Permission Certificate and shall be subject to its
inspection and quarantine.

Article 22

The state administrative organ in charge of the import and export of endangered species shall in time report the relevant materials,
based on which an Import/Export Permission Certificate is verified and issued, as well as the annual import/export summary of endangered
wild animals and plants as well as the products thereof to the competent department of endangered animals and plants under the State
Council as well as other competent departments.

Article 23

The approval documents for import or export shall be printed and formulated uniformly under the organization of the competent department
of endangered animals and plants under the State Council. The Import/Export Permission Certificates and the Application Forms thereof
shall be printed and formulated uniformly under the organization of the state administrative organ in charge of the import and export
of endangered species.

Article 24

Where any functionary of the competent department of endangered wild animals and plants or the state administrative organ in charge
of the import and export of endangered species takes advantage of his duties and functions to collect any other’s property or enlists
any other interest, or approve the relevant import or export or verify and issue the Import/Export Permission Certificate not according
to the provisions of the present Regulations, in case the circumstance is serious and a crime is constituted, he shall be subject
to criminal liabilities according to law. Where a crime is not constituted, he shall be imposed upon a sanction according to law.

Article 25

Where any functionary of the state scientific institution for the import or export of endangered species takes advantage of his functions
and duties to collect any other’s property or enlists any other interest, or produces any false opinion, in case the circumstance
is serious and a crime is constituted, he shall be subject to the criminal liabilities according to law. If a crime is not constituted,
he shall be imposed upon a sanction according to law.

Article 26

Where any endangered wild animals and plants or any of its products is illegally imported or exported or smuggled in any other way,
the violator shall punished according to the relevant provisions of the Customs Law. In case the circumstance is serious and a crime
is constituted, he shall be subject to criminal liabilities according to law.

The articles as fined and confiscated shall be transferred to the competent departments of wild animals and plants for legal disposal.
If any fined and confiscated article shall be subject to quarantine according to law, it shall be disposed of after passing the quarantine.
If any fined and confiscated article shall be returned to its original export country (region), it shall be transferred by the competent
department of wild animals and plants to the state administrative organ in charge of the import and export of endangered species
for disposal according to the relevant provisions of the Convention.

Article 27

Where any approval document for import or export or any Import/Export Permission Certificate is forged, sold for profits or transferred,
the competent department of wild animals and plants or the competent department for industry and commerce shall punish the violators
in light of their functions and work division according to law. If the circumstance is serious and a crime is constituted, the violators
shall be subject to criminal liabilities according to law.

Article 28

The present Regulations shall enter into effect as of September 1, 2006.

The State Council
2006-04-29

TRANSACTION REGULATIONS OF SHANGHAI STOCK EXCHANGE

Circular of Shanghai Stock Exchange on Promulgating the Transaction Regulations of Shanghai Stock Exchange

All the member entities:

The Transaction Regulations of Shanghai Stock Exchange upon approval of China Securities Regulatory Commission (CSRC) is herby promulgated
and shall go into effect as of July 1, 2006, and the related detailed regulations for business operations shall be separately promulgated.

Shanghai Stock Exchange

May 15, 2006

Transaction Regulations of Shanghai Stock Exchange
Chapter I General Provisions

1.1

In order to regulate the transactions in the securities market, maintain the order of the securities market, and protect the lawful
rights and interests of investors, this Regulations is instituted in accordance with the Securities Law of the People’s Republic
of China and other laws, administrative regulations, ministerial regulations and the Articles of Association of Shanghai Stock Exchange.

1.2

The transactions in respect of the listed securities and their derivatives (hereinafter referred to as securities uniformly) of Shanghai
Stock Exchange (hereinafter referred to as this Exchange) shall be governed by these Regulations. Any matter that has not been prescribed
by these Regulations shall be governed by other related provisions of this Exchange.

1.3

The securities transactions shall follow the principles of openness, fairness and equity.

1.4

The securities transactions shall comply with the laws, administrative regulations, ministerial regulations and the related business
operational regulations of this Exchange, and the principles of free will, compensation and good faith.

1.5

The securities transactions shall employ the paperless centralized transactions and other methods upon the approval of CSRC.

Chapter II Trading Market

Section 1 Trading Places

2.1.1

This Exchange will offer trading places and facilities for the securities transactions, such as the exchange server, trading hall,
trading seats, offering system and related communications systems.

2.1.2

This Exchange sets up the trading hall. The members of this Exchange (hereinafter referred to as the member) may make declarations
by the traders assigned by them to the trading hall.

Except the special approval of this Exchange, those who allowed to enter into the trading hall shall be limited to the persons as
follows:

(1)

The registered traders; and

(2)

The personnel in the hall for supervision.

Section 2 Trading Participants and Trading Rights.

2.2.1

If a member or institution upon approval of this Exchange wants to enter into the market of this Exchange for the securities trading,
he/it shall hand in an application to this Exchange for getting a related seat or trading rights and becoming a trading participant
of this Exchange.

A trading participant shall do the securities trading through the Participant Business Unit opened upon application in this Exchange.

2.2.2

The “Participant Business Unit” refers to such a basic unit that a trading participant can take part in the securities trading of
this Exchange, enjoy and perform the related trading rights and accept the related business management of this Exchange.

2.2.3

The detailed Regulations for the management of Participant Business Unit and the limits of trading rights shall be respectively instituted
by this Exchange, and go into effect after being reported to and approved by the CSRC.

Section 3 Trading Varieties

2.3.1

The securities as follows may be listed in this Exchange:

(1)

Stocks;

(2)

Funds;

(3)

Bonds;

(4)

Treasury bonds repurchase (T-bond repurchase) ;

(5)

Warrants; and

(6)

Other trading varieties upon approval of the CSRC.

Section 4 Trading Hours

2.4.1

The trading days of this Exchange are from Monday to Friday every week.

On State legal holidays and the rest days announced by this Exchange this Exchange will rest.

2.4.2

Where the securities are traded by means of competitive bidding, 9:15 to 9:25 in every trading day shall be the time for the aggregate
auction of opening quotation; 9:30 to 11:30 and 13:00 to 15:00 shall be the time for continuous auction, except for the securities
to which the suspending trading and then the resumption of trading are implemented during the course of opening.

As approved by the CSRC and in accordance with the demands of the market development, the trading hours may be modulated by this Exchange.

2.4.3

In case the trading is suspended because of some reason within the trading hours, the trading hours will not be put off.

Chapter III Purchase and Sales of Securities

Section 1 General Provisions

3.1.1

Accepting the entrustment of purchase and sales from an investor, any member shall make declaration to this Exchange in accordance
with the entrustment, and be responsible for the related liabilities of trading and delivery.

If any member accepts the entrustment of purchase and sales from an investor and the transaction is completed, the investor shall
deliver the member with the securities it/he entrusts the member to sell out or the money by which it/he entrusts the member to buy
securities, as well as the member shall deliver the investor with the money gotten from the sales of securities or the securities
as purchased.

3.1.2

A member shall send out declaration orders of purchase or sales to the exchange server of this Exchange by the Participant Business
Unit it owns or other related sending means, and make conclusion of the transactions in accordance with this Regulations, and the
trading results and other trading records shall be sent to the member by this Exchange.

3.1.3

The entrustment and declaration records shall be properly kept by a member in accordance with the related provisions.

3.1.4

The securities purchased by any investor shall not be sold out before the delivery thereof, except that a turnaround transaction
is carried out.

The “securities turnaround transaction” refers to the securities which are purchased by an investor and will be totally or partly
sold out before the delivery upon the confirmation of the transaction.

3.1.5

Same-day turnaround transactions will be carried out for the bonds and warrants repurchase, and the next-trading-day turnaround transactions
will be carried out for B-shares.

3.1.6

This Exchange may carry out the system of primary dealers in accordance with the demands of the market, and the concrete measures
there for shall be respectively instituted by this Exchange and shall go into effect after being reported to and approved by the
CSRC.

Section 2 Designated Transactions

3.2.1

A system of all-around designated transactions shall be carried out for the securities trading in the market of this Exchange, except
for the foreign investors engaging in the B-share trading.

3.2.2

The “all-around designated transactions” means that an investor taking part in the securities sales in the market of this Exchange
shall designate a member ahead of time as its/his trustee of securities sales, and take part in purchasing or selling the securities
in the market of this Exchange through this member.

3.2.3

An agreement on designated transactions shall be reached between the member of designated transactions and an investor and in which
the rights, obligations and duties of both parties shall be made sure. Once the agreement on designated transactions is reached,
the member can hand in an application to the exchange server of this Exchange for dealing with the formalities for designated transactions
with the strength of the application of the investor.

3.2.4

This Exchange will accept the declaration orders for designated transactions during the period of opening, and these orders will
become valid immediately after being accepted by the exchange server.

3.2.5

If changing any designated transaction, an investor shall apply for cancellation to the designated member, and the member will make
declaration to cancel the order. As to the applications in line with the requirements for canceling the designation, no member may
limit, prevent or delay the formalities for dealing with the designation cancellation.

3.2.6

A new declaration for designated transactions may be made after the designated transactions are cancelled.

3.2.7

Other matters concerning designated transactions shall be carried out in accordance with the related provisions of this Exchange.

Section 3 Entrustment

3.3.1

When an investor buys or sells the securities, a securities account and a capital account shall be opened, and an entrustment agreement
on securities transactions shall be signed with a member. After the agreement goes into effect, the investor will become the client
of brokerage business of this member (hereinafter referred to as the client).

Investors shall deal with the opening of securities accounts in accordance with the provisions of the registration and clearing institutions
designated by this Exchange.

3.3.2

A client may entrust a member to buy or sell the securities by the self-help entrustment methods such as letters, phone calls, self-help
terminals, internet. The entrustment by phone calls, self-help terminals, internet and other self-help methods shall be dealt with
in accordance with the related provisions.

3.3.3

If a client taking part in the purchase or sales of securities by any self-help entrustment method, the member shall sign a self-help
entrustment agreement with the client.

3.3.4

Except otherwise herein provided for by this Exchange, an entrustment instruction of any client shall consist of:

(1)

The number of the securities account;

(2)

The code of the securities;

(3)

The direction of the deal;

(4)

The entrustment quantity;

(5)

The entrustment price; and

(6)

Other contents required by this Exchange and the member.

3.3.5

A member may be entrusted by a client to purchase or sell the securities by means of limit price order or market price order.

The “limit order” means that a member shall be entrusted by the client to buy or sell the securities at the prescribed price, and
a declaration shall be made by the member for purchasing the securities at the prescribed price or at a lower price and a declaration
shall be made for selling out the securities at the prescribed price or at a higher price.

The “market order” means that a member is entrusted by the client to buy or sell the securities at the market price.

3.3.6

Upon entrustment, a client may cancel the unconcluded transaction.

3.3.7

As to the entrustment cancelled or invalidated, upon confirmation, a member shall return the related capital or securities to the
client in time.

3.3.8

A member providing the securities financing services through the securities sales for its clients shall act in accordance with the
related provisions.

Section 4 Declaration

3.4.1

This Exchange will accept the declarations of competitive bidding of the members at 95 to 95, 90 to 110 and 130 to
150 every trading day.

The exchange server of this Exchange will not accept the declarations for the cancellation of orders at 9:20 to 9:25 of the aggregate
auction of opening quotation every trading day, and the transactions that haven’t been completed can be cancelled at any other time
for accepting declarations. And a declaration for cancellation will not become valid without confirmation of the exchange server
of this Exchange.

If it is considered to be necessary, this Exchange can make modulation on the time for accepting the declarations of the members.

3.4.2

Declarations shall be made in time by a member to this Exchange in accordance with the order by which it accepts the entrustments
of its clients.

3.4.3

This Exchange will accept the limit orders and market orders of the members.

3.4.4

In accordance with the demands of the market, this Exchange may accept the market orders of the types as follows:

(1)

The declaration of the conclusion of transactions at the best five prices and in real time and the cancellation of remaining orders,
namely, the transactions shall be completed in turn by taking the price of the counterpart as the transaction price within the best
five prices in real time of the counterpart, and the part of transactions that have not been completed shall be automatically cancelled;

(2)

The declaration of the conclusion of transactions at the best five prices and in real time and the change of the remaining transactions
into limit orders, namely, the transactions shall be completed in turn by taking the price of the counterpart as the transaction
price within the best five prices in real time of the counterpart, and the part of transactions that have not been completed shall
be changed into limit orders in accordance with the latest transaction price declared by this side; if no transaction in this declaration
is completed, the transactions shall be changed into limit orders in accordance with the best quotation of this side; and if there
is no declaration of this side, the declaration shall be cancelled;

(3)

Other types formulated by this Exchange.

3.4.5

The market orders shall only apply to the transactions of the securities with price limit during the course of continuous auction,
except otherwise herein provided for by this Exchange.

3.4.6

A limit order shall consist of the number of the securities account, the code of the seat, the code of the securities, the direction
of the deal, the quantity, the price, and etc.

A market order shall consist of the type of the declaration, the number of the securities account, the code of the seat, the code
of the securities, the direction of the deal the quantity, and etc.

A declaration order shall be transferred in the form prescribed by this Exchange. If it is considered to be necessary, this Exchange
may make modulation on the contents or methods of declaration.

3.4.7

As to the purchase of stocks, funds or warrants by means of competitive bidding, the declared quantity shall be 100 shares (units)
or the integral number of times thereof.

When selling the stocks, funds or warrants, the sales of the part less than 100 shares (units) shall be declared once and for all.

3.4.8

In the competitive bidding, the quantity upon declaration of the bonds transactions shall be one lot or the integral number of times
thereof, the quantity upon declaration of pledge-type repurchase of bonds shall be 100 lots or the integral number of times thereof,
as well as the quantity upon declaration of buy-out repurchase of bonds shall be 1,000 lots or the integral number of times thereof.

The 1,000 Yuan of par value of bonds in the bonds transactions or the buy-out repurchase of bonds shall be one lot, and the 1,000
Yuan of standard coupons in the pledge-type repurchase of bonds shall be one lot.

3.4.9

The largest amount in a single declaration of stock, fund or warrant transactions shall be less than one million shares (units),
the largest amount in a single declaration of transactions of bonds or pledge-type repurchase of bonds shall be less than 10,000
lots, as well as the largest amount in a single declaration of transactions of buy-out repurchase of bonds shall be less than 50,000
lots.

In accordance with the demands of the market, this Exchange may make modulation on the largest amount in a single securities declaration.

3.4.10

Different units of account shall be employed for the trading of different securities: the “price per share” for the stocks, the “price
per unit of funds” for the funds, the “price per unit of warrants” for the warrants, the “price per 100 Yuan of par value of bonds”
for the bonds, the “due annual proceeds per 100 Yuan of capital” for the pledge-type repurchase of bonds and the “due repurchase
price per 100 Yuan of par value of bonds” for the buy-out repurchase of bonds.

3.4.11

The minimum price variance unit for the transaction of A-shares, bonds or buy-out repurchase of bonds shall be 0.01 Yuan, 0.001 Yuan
for the transactions of funds or warrants, the 0.001 US Dollars for the transactions of B-shares, and 0.005 Yuan for the transactions
of pledge-type repurchase.

3.4.12

In accordance with the demands of the market, this Exchange may make modulation on the minimum price variance unit of the price upon
declaration and the declared quantity of a single transaction concerning each kind of securities.

3.4.13

The price limit to the transactions of stocks and funds shall be carried out by this Exchange, and the fluctuating proportion shall
be 10%, of which the fluctuating proportion of ST or *ST shares shall be 5%.

The formula for the fluctuating price of the shares and funds shall be as follows: Fluctuating Price = Previous Closing Price (1luctuating
Proportion).

The calculation result shall be the minimum price variance unit in accordance with the principle of rounding (to the nearest whole
number).

If it meets any of the circumstances as follows, the price limit shall not be carried out on the first listing day of stocks:

(1)

The initial public offering of stocks or close-end funds;

(2)

The issuance of additional listed shares;

(3)

The resumption of trading after the suspending of trading; or

(4)

Other circumstances recognized by this Exchange .

As approved by the CSRC, this Exchange may make modulation on the fluctuating proportion of the securities.

3.4.14

When buying or selling the securities with the price limit, the declaration during the price limit shall be valid, otherwise it shall
be an invalid declaration.

3.4.15

When buying or selling the securities without the price limit, the valid declared price at the stage of aggregate auction shall be
governed by the provisions as follows:

(1)

The declared price of stock transactions is between 200% and 50% of the previous closing price; and

(2)

The declared price for the fund or bond transactions is between 150% and 70% of the previous closing price.

There is no price limit for the T-bond repurchase transactions at the stage of aggregate auction.

3.4.16

When buying or selling the securities without the price limit, the valid price upon declaration at the stage of continuous auction
shall be governed by the provisions as follows:

(1)

The declared price is lower than 110% of the lowest selling price revealed in real time and higher than 90% of the highest buying
price revealed in real time; and simultaneously, lower than 130% of the average of the highest price upon declaration and the lowest
price upon declaration and higher than 70% of the aforesaid average;

(2)

In case there is no declared buying price revealed in real time, the lower one of the lowest selling price and the latest transaction
price revealed in real time shall be considered as the highest buying price mentioned in the preceding item; and

(3)

In case there is no declared selling price revealed in real time, the higher one of the highest buying price and the latest transaction
price revealed in real time shall be considered as the lowest selling price mentioned in the preceding item.

In case there is no transaction completed on the current day, the previous closing price shall be the latest transaction price.

In accordance with the demands of the market, this Exchange may make modulation on the provisions on the declared price limit.

3.4.17

A declaration shall be valid on the current day. If each competitive transaction declared can not be completed once and for all,
the art that has not been completed may continuously take part in the auction on the current day, except otherwise herein provided
for by this Measures.

Section 5 Auctions

3.5.1

The ways of aggregate auction and continuous auction shall be employed for the competitive securities transactions.

The “aggregate auction” refers to such a competitive method that the sales declarations as accepted during a certain period shall
be collectively matched once and for all.

The “continuous auction” refers to such a competitive method that the sales declarations shall be continuously matched item by item.

3.5.2

The sales declarations that are not completed during the period for the aggregate auction shall automatically carry out the continuous
auction.

Section 6 Conclusion of Transactions

3.6.1

The securities competitive bidding shall be matched by the principle of price and time priority as follows.

The principle of price priority at the time of transaction conclusion shall be: the declaration for the purchase at a higher price
shall take precedence over the declaration for the purchase at a lower price, and the declaration for the sales at a lower price
shall take precedence over the declaration for the sales at a higher price.

The principle of time priority at the time of transaction conclusion shall be: if the direction of the deal and the price are the
same, the former declarer shall have priority to the later declarer. The sequence of declarations shall be due to the time when the
exchange server accepts the declarations.

3.6.2

As to aggregate auction, the principle of determination of the transaction price shall be:

(1)

The price at which the maximum trading volume can be realized;

(2)

The price at which the declarations for the purchase at the price higher than the aforesaid price and the declarations for the sales
at the price lower than the aforesaid price shall all be transacted; and

(3)

The price at which all the transactions of either the buyer or the seller with the price identical with the aforesaid one shall all
be completed.

In case there are more than two prices upon declaration meeting the aforesaid conditions, the price upon declaration that makes the
smallest uncompleted transaction volume shall be the transaction price; and if there are still more than two prices upon declaration
that make the smallest uncompleted transaction volume meet the aforesaid conditions, their middle price shall be the transaction
price.

All the transactions under aggregate auction shall be completed at the same price.

3.6.3

As to continuous auction, the principle of determination of the transaction price shall be:

(1)

In case the highest price upon declaration for the purchase is the same as the lowest price upon declaration for the sales, the aforesaid
price shall be the transaction price;

(2)

In case the price upon declaration for the purchase is higher than the lowest price upon declaration for the sales revealed in real
time, the latter shall be the transaction price; and

(3)

in case the price upon declaration for the sales is lower than the highest price upon declaration for the purchase revealed in real
time, the latter shall be the transaction price.

3.6.4

In case the price reached in accordance with the principle of concluded transactions is not under the scope of minimum price variance
unit, the related minimum price variance unit shall be gotten in accordance with the principle of rounding (to the nearest whole
number).

3.6.5

After the sales declarations are matched by the exchange server, the transactions are completed. A transaction goes into effect when
the transaction is completed in accordance with the provisions in these Regulations, and both parties to the transaction shall accept
the trading result and undertake the obligation of liquidation and delivery.

In case a transaction is seriously affected by the force majeure, accident or illegal invasion into the trading system, this Exchange
may employ proper measures or consider the transaction to be invalid.

As confirmed by this Exchange and approved by the council thereof, proper measures may be employed for the clearly unfair transactions,
as well as a report shall be handed in to the CSRC.

As to the transactions that are against these Regulations and will seriously destroy the normal operation of the securities market,
this Exchange has the right to make announcement about the cancellation of the transactions. And the traders in violation of the
Regulations shall be responsible for the losses incurring there from.

3.6.6

As to the transactions completed in accordance with these Regulations, the trading results shall be determined based on the trading
data recorded in the exchange server of this Exchange.

3.6.7

The liquidation and delivery concerning the securities transactions shall be conducted by the registration and clearing institution
designated by this Exchange.

Section 7 Block Trades

3.7.1

The method of block trades may be employed for the securities sales implemented in this Exchange and meeting the conditions as follows:

(1)

The declared quantity of A-shares in a single transaction thereof is more than 500,000 shares, or the trading amount is more than
3 million Yuan;

(2)

The declared quantity of B-shares in a single transaction thereof is more than 500,000 shares, or the trading amount is more than
300,000 US Dollars;

(3)

The declared quantity of funds in a single block transaction is more than 3 million shares, or the trading amount is more than 3 million
Yuan;

(4)

The declared quantity of government bonds or the T-bond repurchase in a single block transaction thereof is more than 10,000 lots,
or the trading amount is more than 10 million Yuan;

(5)

The declared quantity of other bonds in a single transaction thereof is more than 1,000 lots, or the trading amount is more than 1
million Yuan.

In accordance with the demands in the market, this Exchange may make modulation on the minimum quota of block trades.

3.7.2

This Exchange will accept the declarations for block trades at 9:30 to 11:30 and 13:00 to 15:30 every trading day.

3.7.3

The declarations for block trades shall consist of the declarations of intent and the declarations of transaction that has been completed.

A declaration of intent shall consist of the number of the securities account, the code of the securities and the direction of the
deal and etc.

A declaration of transaction that has been completed shall consist of the number of the securities account, the code of the securities,
the direction of the deal, the price and quantity of the completed transaction and etc.

3.7.4

A declaration of intent shall be true and valid. If the price of the declaring party is unclear, it shall be considered that it is
willing to buy at the prescribed lowest price or sell out at the highest price at least; and if the quantity is unclear, it shall
be considered that it is willing to complete the transactions with the minimum declared quantity for a single block trade at least.

3.7.5

When the members accepting a declaration of intent (including the circumstance that any other member gives a more favorable price
than the declared one), the declaring party shall make the declaration of transaction that has been completed at least with one member
that has accepted the declaration of intent.

3.7.6

The transaction price of the block trade of securities with the price limit shall be determined by both parties to the transaction
under the scope of price limit on the current day.

The transaction price of the block trade of securities without the price limit shall be determined through the consultation of both
parties to the transaction based on up and down 30% of the previous closing price or between the highest and lowest prices of transactions
that have been completed on the current day.

3.7.7

Both parties to the transaction shall, after signing an agreement, make a declaration of transaction that has been completed to the
exchange server of this Exchange, and the transaction price of the declaration of transaction that has been completed shall agree
with the transaction quantity.

A declaration of transaction that has been completed shall not be changed or cancelled once it is confirmed by this Exchange, and
both parties to the transaction shall accept the transaction result.

3.7.8

A member shall make sure that the participants in block trades actually own the securities or capital related to the declaration
of intent or the declaration of transaction that has been completed.

3.7.9

The system of primary traders shall be carried out for the block trades of this Exchange concerning bonds.

A member upon approval of this Exchange may act as a primary trader, and carry out the business of bonds bilateral quotation by the
system of block trades of this Exchange.

3.7.10

A block trade shall not be calculated into the calculation of real-time market information and indices of this Exchange, as well
as the trading volume shall be calculated into the total securities trading volume after the block trade is closed.

3.7.11

As concluded of block trades every trading day, for block trades concerning stock or funds, this Exchange will publish the names
of the securities, the transaction price, the trading volume, the name of the business department of the member where both the buyer
and the seller make their transaction; for block trades concerning bonds or T-bond repurchase, this Exchange will publish the names
of the securities, the trading volume and the transaction price, etc.

Section 8 Transactions of T-bond Repurchase

3.8.1

The methods of buy-out repurchase and pledge-type repurchase, etc. may be employed for the transactions of T-bond repurchase.

3.8.2

The “buy-out repurchase of bonds” refers to such a kind of transaction in which both parties to the transaction stipulate that the
seller will buy back the same kind and amount of bonds from the buyer at the stipulated price on some day in the future, as the holder
of bonds sells the bonds to the purchaser.

The “pledge-type repurchase of bonds” refers to such a kind of transaction in which both parties to the transaction stipulate to return
the capital and remove the pledge after the expiration of the repurchasing period, as the holder of bonds pledges the bonds and obtains
the pledge financing from the trading counterpart by taking the quantity of standard coupons calculated at the rate of conversion
of standard coupons as the financial quota.

3.8

OPINIONS OF THE TRANSITION OF EXPORT GROWTH MODE OF ELECTROMECHANICAL PRODUCTS DURING THE ELEVENTH FIVE-YEAR PLAN PERIOD

Circular of the General Office under the State Council for Transmitting Opinions Submitted by Ministry of Commerce and other Ministries
Concerning the Transition of Export Growth Mode of Electromechanical Products during the Eleventh Five-year Plan period

Guo Ban Fa [2006] No. 42

The people’s governments of all provinces, autonomous regions, and municipalities directly under the Central Government, all ministries,
commissions and directly subordinate institutions of the State Council:

The Opinions of the Transition of Export Growth Mode of Electromechanical Products during the Eleventh Five-year Plan Period, which
are submitted by the Ministry of Commerce, the National Development and Reform Commission, the Ministry of Science and Technology,
the Ministry of Finance, the Ministry of Information Industry, the People’s Bank of China, the General Administration of Customs,
the State Administration of Taxation, and the General Administration of Quality Supervision, Inspection and Quarantine, have been
approved by the State Council, and are hereby transmitted to you. Please abide hereby.

The General Office of the State Council

May 27, 2006

Opinions of the Transition of Export Growth Mode of Electromechanical Products during the Eleventh Five-year Plan Period

During the Tenth Five-year Plan period, remarkable headway was made in China’s export of electromechanical products through joint
efforts of relevant parties. By 2005, the electromechanical products, a vital role in China’s foreign trade, have been the No. 1
category of export commodities for 11 years in a row. For the purpose of helping lift the quality and benefit of foreign export,
effective measures must be taken during the Eleventh Five-year Plan period to transmit the export growth mode of electromechanical
products. The Opinions are hereby given therefor as follows:

The guiding principle and objectives of the export of electromechanical products during the Eleventh Five-year Plan period.

(1)

Guiding thought. In accordance with the spirit of the Fifth Plenary Session of the 16th CPC Central Committee and under the general
requirements of the 11th Five-year Program for National Economic and Social Development, we shall realize fundamental transition
of export growth mode by seizing the new opportunities in global flow of production factors and industry transfer, basing ourselves
on independent innovation and enhanced international competitiveness, pursuing brand strategy of the export of electromechanical
products, intensifying the establishment of export production system, adjusting export structure, improving the quality of the product,
increasing technology content and added value and rectifying export order.

(2)

Objectives. We shall actualize apparent optimization of the export structure of electromechanical products, remarkable improvements
in independent innovation capacity and export order, further diversification of export market, essential improvement in the internal
and external environment of export, and by 2010, high-and-new-tech electromechanical products accounting for 55% of the total export
volume of the electromechanical product while products with independent brands and independent intellectual property rights accounting
for 20%

Accelerating the adjustment of the export structure of electromechanical products and improving the quality of the products.

(3)

While increasing the technology content and added value of traditional exported electromechanical products, we shall strive to expand
the export of technology-extensive products with high added value, and vigorously develop and expand the export of key components,
elements, and accessories for the machines. The key export products are: aircrafts and aviation equipment, ship and marine equipment,
railway vehicles, automobiles and auto parts, machine tools, engineering and agriculture machinery, integrated circuits, communication
equipment and electric power, metallurgy, petrochemical complete equipment, the new generation communication products, digital household
appliances and audio-visual equipment, computer network, etc.

(4)

We shall curb the production and export of high energy consumption and high pollution products, encourage electromechanical enterprises
to further develop energy conservation, environment protection technologies and products, and progressively introduce such factors
as environment, labor insurance, hygiene, social responsibilities to design and production management.

(5)

We shall support the electromechanical enterprises to further improve the quality of the exported products, to strive to acquire ISO9000
Quality Certification, and ISO14000 Environment Certification; we shall also promote them win relevant international certifications
for security, hygiene, resource conservation and social responsibilities.

(6)

On the basis of risk analysis, we shall execute timely dynamic management over the security and quality of the exported electromechanical
products, intensify classification management of manufacturing enterprises, enlarge the scope of the exemption of export inspection,
lower the cost for inspection and quarantine, and broaden the green channel for export.

Intensifying effort for independent innovation, nurturing a fleet of exported electromechanical products with independent brands.

(7)

We shall continue to reinforce the establishment of export production system, and nurture a fleet of exported electromechanical products
with independent brands, give priority to technology reform, research and development, loan, insurance, and information services,
and strengthen the construction of base enterprises, and that of export base of the automobile and auto parts. Then we shall select
several key industries that are capable of driving the development of other industries to foster several export industry bases and
a number of export base enterprises. Local authorities shall, in accordance with local realities, select a number of potential enterprises
with independent brands for export to establish primary contact.

(8)

We shall encourage and guide export enterprises of electromechanical products to lift the scale benefit through listing, merging,
associating, regrouping, and transnational acquisition, and give key support to a number of competitive enterprises with independent
intellectual property rights and famous brands. We shall also progressively found and perfect the statistics system of exported electromechanical
product brands and products with independent intellectual property rights.

(9)

We shall encourage the electromechanical enterprises to scale up investment in research and development to develop critical technology
and core technology with independent intellectual property rights. We shall also support the research and development of common technology
concerning export. The research and development expenditure of the enterprises may be listed before tax collection.

(10)

We shall support the electromechanical enterprises to induct advanced technologies, critical equipment and parts, and help them comprehend,
absorb and re-innovate those technologies. With respect to those advanced foreign technologies and critical equipment, tariffs and
value-added tax in import link shall be exempted in accordance with the related provisions of the State Council.

(11)

We shall boost the capacity building of technology innovation of exported electromechanical products, push forward the electromechanical
enterprises to be the main part of technology innovation, promote technology development and achievement industrialization through
coordination among enterprises or cooperation among industries, universities and research institutes, and encourage the enterprises
to open information and R&D centers abroad to understand the trend of the advanced technologies and develop new products suitable
for the local market.

Deepening the strategy of market diversification, and strengthening the construction of foreign marketing network and after-sale service
system.

(12)

On the basis of consolidating the traditional export markets in Southeast Asia, Europe and North America, we shall intensify effort
to develop the emerging markets in Russia, Eastern Europe, Africa, Latin America and India, and raise the export proportion in these
markets.

(13)

We shall encourage and support competitive electromechanical enterprises to make investment in foreign countries so as to facilitate
the export of equipment, capital, technologies and materials by utilizing foreign aid, contracting with own capital and other ways.
The electromechanical enterprises will realize the localization of production, sale and financing through the joint-venture and cooperation
with the countries that they invest in.

(14)

We shall encourage and support the enterprises to form a worldwide sales network of China’s exported electromechanical products through
establishing representative offices or sales organizations, selecting distribution agents, or utilizing foreign companies’ sales
network, etc. We shall also, on the basis of sales network, set up a perfect maintenance service network, gradually solve the problems
in the after-sale maintenance service of electromechanical products, and strive to make breakthrough in the establishment of worldwide
sales network and after-sale maintenance service network for key products, such as engineering machinery, agriculture machinery,
communication equipment, automobiles, motorcycles, etc.

(15)

We shall encourage and support the electromechanical enterprises to participate in the well known foreign professional exhibitions,
organize counterpart communication on a regular basis between small and medium-sized enterprises and the business people in such
key export markets as EU, North America, Japan, to help them search cooperation opportunities to explore international market.

(16)

We shall enhance public information service and training in talented people for small and medium-sized enterprises, establish and
perfect the information network service system of electromechanical products so as to provide export enterprises with accurate, prompt
and convenient information of trade and investment as well as information service of product standards, market laws and policies,
etc.

(17)

On the basis of the measure of examination and approval for one time and effectiveness for multiple times within one year for the
trips abroad made by staff working in business, technology, after-sale service and responding to anti-dumping claims, we shall further
simplify procedures of staff employed in electromechanical export enterprises going abroad.

Supporting the export of electromechanical products via multiple means.

(18)

We shall continue to arrange part of the central foreign trade development fund to be used for supporting the research and development
of exported electromechanical products and interest subsidies for technology reform loans. Regionsif better positioned, shall also
be given fund support. We shall employ the small and medium-sized enterprises to explore fund in international market and support
the activities of exploring fund by electromechanical enterprises in international market, adjust the export tax refund rate for
the electromechanical products and encourage the export of electromechanical products with high technology content and high added
value.

(19)

We shall strengthen the policy export credit support for the export of electromechanical products, and perfect the forming mechanism
of interest rate. For those medium and long-term projects in line with the loan terms, their terms of loans may be, subject to loan
principle, properly extended; for those well-performing key enterprises which have debt service capacity and can turn out the right
products for the right markets, their line of credit may be properly raised. We shall also improve financial services, stimulate
financial innovation, expand the scale and types of export credits, and provide preferential export buyer’s credits, promote the
combination of policy credit for export, commercial loan, and capital from international financial institutions to spur the export
of large-scale equipment and complete equipment.

(20)

We shall accelerate the speed of export credit insurance, add new insurance products for the exported electromechanical products based
on the need of the development of the market. We shall also establish and perfect credit guarantee system, encourage regions better
positioned to found credit guarantee fund and regional re-guarantee institutions for small and medium-sized enterprises, and study
and explore various effective means to solve the guarantee difficulties for small and medium-sized enterprises.

Creating sound external environment, and realizing healthy development of the export of electromechanical products

(21)

We shall launch an early-warning mechanism of the export of electromechanical products, a quick-response mechanism of trade frictions,
and a mechanism of responding to claims with industries and enterprises as the main parts. We shall carry out key monitoring over
commodities whose export over-grows, and whose prices plunge due to excessive quantities, and take effective measures to exercise
control when necessary. We shall also reinforce multi and bilateral consultations to respond well to anti-dumping, anti-subsidy and
safeguard measures.

(22)

We shall study deeply foreign regulations concerning technical barrier, and break the barrier by leading the enterprises to carry
out R&D and Design conforming international standard, organize production and acquire relevant certifications. We shall set up
several internationally authoritative electromechanical product testing laboratories providing services for enterprises to win international
certification and helping broaden the cooperative fields with foreign testing agencies. We shall also press ahead the bilateral mutual
recognition with relevant countries and regions.

(23)

We shall intensify the training of the protection of intellectual property rights and enhance the enterprises’ consciousness and ability
of independently safeguarding their legitimate rights and interests, encourage the electromechanical enterprises to avoid disputes
over intellectual property rights through applying for patents, registering trademarks abroad, promote the entry of enterprises with
patent technologies to International Union of Technology, Standard Forum and Patent Pool, and also take part in the formulation of
international standard.

(24)

We shall launch a mechanism to provide convenience to those honest and lawful enterprises and to discipline the dishonest and illegal
ones, implement a system of trade risk management and export credit rating, identify credit ratings for export enterprises by comprehensive
evaluation over the selected large-scale and complete equipment and motorcycles and several other key products, publicize on a regular
basis, the products that cause serious disturbances in the export order, and adopt measures to curb or forbid their export accordingly.

(25)

We shall push forward the reforms of Chamber of Commerce and the Industry Association to reinforce their authoritativeness in coordination
and self-control, establish a work system with perfect mechanism and effective coordination to maximize the role of Chamber of Commerce
and Industry Association in boosting the export of electromechanical products.

(26)

The ministries and departments concerned under the State Council and the local People’s Governments at different levels shall continue
to reinforce their leadership over the export of electromechanical products. They shall make new contributions to advancing the sustained,
healthy and rapid development of foreign trade by studying new situations, solving new problems, helping the transition of the growth
mode of electromechanical products.

The General Office under the State Council
2006-05-27

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON ADJUSTING SOME FOREIGN EXCHANGE MANAGEMENT POLICIES ABOUT OVERSEAS INVESTMENTS

Circular of the State Administration of Foreign Exchange on Adjusting Some Foreign Exchange Management Policies about Overseas Investments

Hui Fa [2006] No. 27
June 6, 2006

The branches and foreign exchange management departments under the State Administration of Foreign Exchange (SAFE) in all provinces,
autonomous regions, and municipalities directly under the Central Government, and the branches of SAFE in the cities of Shenzhen,
Dalian, Qingdao, Xiamen and Ningbo:

For the purpose of adapting to the demands for overseas economic development, perfecting the supporting policies for encouraging overseas
investments and facilitating domestic investors to implement transnational business operations, SAFE decides to adjust some foreign
exchange management policies for overseas investments, and the relevant matters are hereby notified as follows:

The “overseas investments” as mentioned in this Circular means such acts whereby varieties of legal persons inside the territory
of China (hereinafter referred to as “domestic investors”) establish enterprises abroad or obtain the ownership, managerial right
or other rights and interests of the existing enterprises by way of new establishments (sole proprietorship, equity or contractual
joint ventures), purchase, merger, share holding, capital injection, or change of stock rights, etc.

II.

The overseas investments shall be consistent with the national industrial policies for overseas investments, and be in favor of promoting
the transnational flow and optimized allocation of production elements. The overseas investment projects of domestic investors shall
go through the examination and approval of the competent administrative departments.

III.

The necessary foreign exchange for the domestic investors to invest abroad may be the self-owned foreign exchange, the foreign exchange
brought by RMB or the domestic and overseas foreign exchange loans. Since the day of July 1, 2006, all the branches (foreign exchange
management departments) of SAFE shall not verify the quota for buying foreign exchange for overseas investments. After an overseas
investment project of domestic investors is examined and approved by the relevant administrative departments, the domestic investor
may be subject to the examination and approval formalities for buying and paying foreign exchange in light of the existing provisions
on the foreign exchange management.

IV.

After a domestic investor submits an application for the examination and approval of overseas investment project or the intent of
investment to the relevant administrative departments, before getting a formal approval, and upon examination and approval of the
local branch or foreign exchange management department under SAFE (hereinafter referred to as the “foreign exchange bureau”), it
may use the self-owned foreign exchange, the foreign exchange purchased by RMB or the domestic and overseas foreign exchange loans
to pay the initial expenses related to the overseas investment project to abroad.

The initial expenses with which the domestic investor remits abroad for the overseas investment project shall be for the purposes
prescribed as follows:

(1)

The guaranty money required to be paid in light of the laws of the place where the project lies or according to the request of the
transferring party in the case of the purchase of the overseas enterprise’s stock rights or the overseas property rights;

(2)

The guaranty money for the bidding required to be paid in the process of bidding for overseas projects;

(3)

The expenses necessary for implementing market surveys, leasing offices and facilities, hiring workers and intermediary institutions
before investing overseas; and

(4)

Other initial expenses related to the overseas investment.

VI.

A domestic investor shall apply to the local foreign exchange bureau for dealing with the examination and approval formalities for
remitting the initial expenses abroad upon the strength of the materials as follows:

(1)

An application form (including such information as the total investment amount of the overseas investment project, the contributions
of all parties, means of contribution, amount of foreign exchange to be used, as well as the amount, purpose and source, etc. of
the necessary initial expenses);

(2)

The business license or registration certificate of the domestic investor;

(3)

The relative documents on the domestic investor’s participation in the bidding, merger or on the equity or contractual joint venture
(like the letter of intent, memorandum or framework agreement, etc. signed by the Chinese and foreign parties);

(4)

A letter of commitments issued by the domestic investor to the local foreign exchange bureau (for the promise that the initial expenses
remitted abroad will only be used to the approved overseas investment projects, otherwise, the domestic investor shall bear the corresponding
legal liabilities);

(5)

An explanation on the name of the country (region) of the overseas account to which the initial expenses will be remitted, the overseas
bank, the name of the owner of account and the account; and

(6)

Other relative materials required by SAFE.

After examining and verifying that there is no error in the materials, the local foreign exchange bureau shall issue a document on
approval of the foreign exchange business under the capital accounts. The domestic investor shall go through the formalities for
buying and paying foreign exchange at the designated local foreign exchange bank upon the strength of the approval document.

VII.

If a domestic investor applies for remitting the initial expenses abroad to the local foreign exchange bureau, the initial expenses
remitted abroad shall not exceed 15% of the total amount of overseas investment that it applies to the relevant overseas administrative
department. If the initial expenses really need to exceed 15% because of the business, they shall be examined and approved by the
local foreign exchange bureau (foreign exchange management department).

The initial expenses that a domestic investor remits abroad upon examination and approval shall be listed in the total amount of the
overseas investment project of the domestic investor. When it examines and approves all the capital remitted abroad for the overseas
investment project, the foreign exchange bureau shall examine and reduce the amount of the remitted initial expenses.

VIII.

If a domestic investor needs to open an overseas account for the overseas investment project, it shall apply to the local foreign
exchange bureau in light of the relevant provisions on the management of overseas foreign exchange accounts.

IX.

If a domestic investor fails to go through all the formalities for examining and approving the overseas investment project within
6 months as of the day when the initial expenses are remitted abroad, it shall transfer the remainder in the overseas account to
the domestic foreign exchange account from which the foreign exchange is remitted abroad. If the foreign exchange remitted back to
China is brought by RMB, the domestic investor shall settle the foreign exchange at the designated foreign exchange bank upon the
strength of the original documents on the purchase of foreign exchange.

The foreign exchange bureau shall strengthen the examination, statistics-making and monitoring to the foreign exchange purchase and
payment with overseas investment capital, fill the net amount of initial expenses of its own jurisdiction in Column 1.2.1.3 of the
monthly statements on the fluidity and remittance under capital accounts and appended items month by month, and report them to SAFE
in accordance with the legal provisions.

XI.

Any domestic investor that violates the provisions in this Circular shall be punished by the foreign exchange bureau in accordance
with the Regulation of the People’s Republic of China on the Foreign Exchange Administration and other relative laws.

XII.

This Notice shall enter into effect as of the day of July 1, 2006. If any prior provision conflicts with this Circular, the latter
shall prevail.

State Administration of Foreign Exchange
2006-06-06

NOTICE OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON ADJUSTING THE RELATED POLICIES FOR REAL ESTATE BUSINESS TAXES

Notice of the Ministry of Finance and the State Administration of Taxation on Adjusting the Related Policies for Real Estate Business
Taxes

Cai Shui [2006] No.75

The public finance departments (bureaus) and local taxation bureaus of all provinces, autonomous regions, municipalities directly
under the Central Government and the cities specifically designated in the state plan and the Public Finance Bureau of Xinjiang Production
and Construction Corps.:

For the purpose of carrying out and going into effect the Notice of the General Office of the State Council on Forwarding the Opinions
of the Ministry of Construction and Other Departments on Adjusting the Housing Supply Structure as well as Stabilizing Housing Prices
(Guo Ban Fa [2006] No. 37) ), refraining speculation and demand of investment housing purchases, and further strengthening the management
of business tax collection on individuals’ house transfer, the related issues on business taxes are hereby notified as follows:

As of June 1, 2006, if any individual sells a house that has been purchased for less than 5 years, the business tax thereof shall
be imposed in full amount. If any individual sells an ordinary residential house that has been purchased for more than 5 years (including
five years), the business tax thereof shall be offset. If any individual sells a non-ordinary residential house that has been purchased
for more than 5 years (including five years), the business tax thereof shall be imposed in accordance with the balance upon deduction
of the purchase price from the sales incomes.

For the aforesaid policies, the standards for ordinary or non-ordinary residential houses, the specific procedures for tax exemption,
the time of house purchase, the invoices as drawn, the deduction credence for balance-based tax collection, the house procurement
by non-purchase means, and the related provisions on tax collection administration shall be carried out in accordance with the related
provisions of the Notice of the General Office of the State Council concerning Transmitting Suggestions of the Ministry of Construction
and Other Departments concerning Doing Well in Stabilizing Housing Prices (Guo Ban Fa [2005] No. 26), the Notice of the State Administration
of Taxation, the Ministry of Finance and the Ministry of Construction concerning Strengthening the management of Real Estate Tax
Collection (Guo Shui Fa [2005] No. 89) and the Notice of the State Administration of Taxation concerning Several Specific Issues
in carrying out the Policies for Real Estate Tax Collection (Guo Shui Fa [2005] No. 172).

The local finance and taxation departments at all levels shall carry out the tax policies in a strict way, strengthen the tax collection
and management and shall report the issues arising in the process of implementation to the Ministry of Finance and the State Administration
of Taxation in time.

Ministry of Finance

State Administration of Taxation

June 16, 2006

Ministry of FinanceState Administration of Taxation
2006-06-16

AMENDMENTS TO THE CRIMINAL LAW OF THE PEOPLE’S REPUBLIC OF CHINA (VI)

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

No.51

The Amendments to the Criminal Law of the People’s Republic of China (VI), adopted at the 22nd meeting of the Standing Committee of
the Tenth National People’s Congress on June 29, 2006 are hereby promulgated and shall go into effect as of the date of promulgation.

President of PRC, Hu Jintao

June 29, 2006

Amendments to the Criminal Law of the People’s Republic of China (VI)

(Adopted at the 22nd meeting of the Standing Committee of the Tenth National People’s Congress on June 29, 2006)

Article 134 of the Criminal Law is amended to as: “Anyone who violates the provisions on the safety management in production or operations
and thus leading to any serious accidents of death and injury or any other serious consequences, shall be sentenced to not more than
three years of fix-term imprisonment or criminal detention. If the circumstances are particularly serious, he shall be sentenced
to fix-term imprisonment of not less than 3 years but not more than 7 years.

“In case anyone forces any other person to take a risk of working in violation of the related regulations so that any serious accidents
of death and injury or any other serious consequence is caused, he shall be sentenced to not more than five years of fix-term imprisonment
or criminal detention. If the circumstances are particularly serious, he shall be sentenced to five years or more of fix-term imprisonment.”

II.

Article 135 of the Criminal Law is amended to as: “In case the facilities or conditions for safe work fail to meet the related provisions
of the state and lead to any serious accidents of death and injury or any other serious consequences, the directly liable persons-in-charge
and other directly liable persons shall be sentenced to not more than three years of fixed-term imprisonment or criminal detention.
If the circumstances are particularly serious, he shall be sentenced to three years to seven years of fix-term imprisonment.”

III.

There is an article added to the end of Article 135 as Article 135 (I): “In case any of the provisions on safety management is in
violation of holding large-scale mass activities and any serious casualty or any other serious consequence is caused accordingly,
the directly liable persons-in-charge and other directly liable persons shall be sentenced to not more than three years of fixed-term
imprisonment of or criminal detention. If the circumstances are particularly serious, they shall be sentenced to three years to seven
years of fixed-term imprisonment.”

IV.

There is an article added to the end of Article 139 as Article 139 (I): “After any safety accident happens, if the person responsible
for reporting it fails to report it or provides false report of the situation so that the rescue of the accident is bungled and if
the circumstances are serious, he shall be sentenced to not more than three years of fixed-term imprisonment or criminal detention.
If the circumstances are particularly serious, he shall be sentenced to not less than three years but not more than seven years in
prison.”

Article 161 of the Criminal Law is amended to as: “If any company or enterprises, which has the responsibility of information disclosure,
provides any financial and accounting report which is false or conceals any important facts to its shareholders and the general public,
or . fails to disclose any other important information in accordance with the provisions so that serious damages are caused to the
interests of the shareholders or any other person, or any other serious circumstances exist, the directly liable persons-in-charge
and other directly liable persons shall be sentenced to not more than three years of fix-term imprisonment or criminal detention,
and/or shall be imposed upon to a fine of not less than 20,000 Yuan but not more than 200,000 Yuan.”

VI.

There is an article added to the end of Article 162 (I) as Article 162 (II): “If any company or enterprise transfers or disposes
of its properties by concealing its properties or undertaking fabricated debts or by any other means or implement false bankruptcy
so that serious damages are caused to the interests of the creditors or any other persons, the directly liable persons-in-charge
and other directly liable persons shall be sentenced to not more than five years of fixed-term imprisonment or criminal detention,
and/or shall be imposed upon to a fine of not less than 20,000 Yuan and not more than 200,000 Yuan.”

VII.

Article 163 of the Criminal Law is amended to as: “If any staff of any company, enterprise or other units ask for or illegally accept
properties from other persons taking advantage of job convenience, and seek benefits for other persons, and in case the properties
involved is of a relatively large amount , he shall be sentenced to not more than five years of fixed-term imprisonment or criminal
detention. If the amount is huge, he shall be sentenced to less than five years of fixed-term imprisonment and confiscation of property.

“If the staff of any company, enterprise or any other units, in the course of economic intercourses, accept kickbacks and commission
charge in various forms taking advantage of job convenience in violation of the provisions of the state for his personal ownership,
he shall be punished in accordance with provisions under the preceding paragraph.

“Anyone engaging in public services in any state-owned corporations, enterprise or other state-owned units and anyone assigned by
state-owned companies, enterprises and other state-owned units to non-state-owned companies, enterprises and other units to engage
in public service found to be committing the acts mentioned in the two preceding paragraphs, shall be convicted and punished in accordance
with Articles 385 and 386 of the present Law.”

VIII.

Paragraph 1, Article 164 of the Criminal Law is amended to as: “Anyone who gives a relatively large amount of property to the staff
of any company, enterprise or other units so as to seek unwarrantable benefits shall be sentenced to not more than three years of
fixed-term imprisonment or criminal detention. If the amount is huge, he shall be sentenced to not less than three years but not
more than ten years in prison, and shall be imposed upon a fine.”

IX.

There is an article added to the end of Article 169 of the Criminal Law as Article 169 (I): “If any director, supervisor or senior
manager of a listed company violates his fiduciary duty to the company and manipulate the listed company to pursue any of the following
behaviors taking advantage of job convenience ,causing any serious loss to the interest of the listed company, he shall be sentenced
to not more than three years of fixed-term imprisonment or criminal detention, and/or shall be imposed upon to a fine. If the listed
company thus suffers from a particularly huge loss, he shall be sentenced to not less than three years but not more than seven years
in prison, and shall be imposed upon a fine:

(1)

Providing any fund, commodity, service or any other asset gratuitously to any other unit or individual;

(2)

Providing or accepting any fund, commodity, service or any other asset with obviously unfair terms;

(3)

Providing any fund, commodity, service or any other asset to any unit or individual obviously without the ability of repayment .;

(4)

Providing any guarantee to any unit or individual obviously without the ability of repayment , or providing guarantee to any other
unit or individual without due reasons;

(5)

Giving up credit or assumption of debts without due reasons; or

(6)

Causing damage to the interests of the listed company by any other means.

If the controlling shareholder or actual controller of a listed company instigates any of the directors, supervisors, or senior managers
of the listed company to conduct any of the acts as described in the preceding paragraph, it or he shall be punished in accordance
with the provisions of the preceding paragraph.

If the controlling shareholder or actual controller of the listed company committing the acts as described in the preceding paragraph
is a unit, the unit shall be imposed upon a fine and the directly liable persons-in-charge and other directly liable persons shall
be punished in accordance with the first paragraph herein.”

There is an article added to the end of Article 175 as Article 175 (I): “If anyone obtains any loan, acceptance of any instrument,
letter of credit, letter of guarantee, etc. by means of deception from any bank or any other financial institution so that any serious
loss is caused to the bank or financial institution or any other serious circumstances exist, he shall be sentenced to not more than
three years of fixed-term imprisonment or criminal detention, and/or shall be imposed upon to a fine. If a particularly large loss
is caused to the bank or any other financial institution or if there is any other particularly serious circumstance, he shall be
sentenced to not less than three years but not more than seven years in prison, and shall be imposed upon to a fine.

“Any unit committing the acts as described in the preceding paragraph shall be imposed upon to a fine, and the directly liable persons-in-charge
and other directly liable persons shall be punished in accordance with the provisions of the preceding paragraph.”

XI.

Article 182 of the Criminal Law is amended to as: “The person who manipulates the securities or futures market, if the circumstances
are serious, shall be sentenced to not more than five years of fixed-term imprisonment or criminal detention, and/or shall be imposed
upon to a fine. If the circumstances are particularly serious, he shall be sentenced to not less than five years but not more than
10 years in prison, and shall be imposed upon to a fine, in case any of the following circumstances arises:

(1)

Centralizing one’s predominance in capital, shareholding and warehousing or taking advantage of information predominance to jointly
or continuously buy and sell securities and futures, manipulating the trading prices or the trading volume of securities and futures,
either on one’s own or by conspiring with other people;

(2)

Affecting trading prices or volumes of securities and futures by colluding with other persons, conducting securities or futures transactions
with each other at a predetermined time and price and in a predetermined way.;

(3)

Affecting trading prices or volumes of securities and futures by conducting securities transactions among the accounts under the actual
control of the same person or regarding oneself as the trading object, buying and selling futures contracts from and to himself;
or

(4)

Manipulating the securities or futures markets by any other means.

If any unit commits the acts as described in the preceding paragraph, the unit shall be imposed upon a fine, and the directly liable
persons-in-charge and any other liable persons shall be punished in accordance with the provisions of the preceding paragraph.”

XII.

There is an article added to the end of Article 185 as Article 185 (I): “Any commercial bank, stock exchange, futures exchange,
securities company, futures brokering company, insurance company, or any other financial institution in violation of its fiduciary
duty, utilizes the funds or any other consigned or entrusted property of its clients on itself, if the circumstances are serious,
shall be imposed upon a fine, and the directly liable persons-in-charge and other directly liable persons shall be sentenced to not
more than three years of fixed-term imprisonment or criminal detention, and shall be imposed upon to a fine of 30,000 Yuan up to
300,000 Yuan. If the circumstances are particularly serious, he shall be sentenced to f not less than three years but not more than
ten years in prison, and shall be imposed upon to a fine of 50,000 Yuan up to 500,000 Yuan.

“In case of any public fund management institution such as a social security fund management institution or housing accumulation fund
management institution, or any insurance company, insurance asset management company, or securities investment fund management company
violates the provisions of the state in its use of funds, the directly liable persons-in-charge as well as other directly liable
persons shall be punished in accordance with the provisions of the preceding paragraph.”

XIII.

Paragraphs I and II of Article 186 of the Criminal Law are amended to as: “If the staff of any bank or other financial institution
offers any loan in violation of the provisions of the state and the amount is huge or any serious loss has caused, he shall be sentenced
to not more than five years of fixed-term imprisonment or criminal detention, and shall be imposed upon to a fine of 10,000 Yuan
up to 100,000 Yuan. If the amount is particularly huge or particularly serious losses have been caused, he shall be sentenced to
more than five years of fixed-term imprisonment, and shall be imposed upon to a fine of 20,000 Yuan up to 200,000 Yuan.

“Any staff of any bank or other financial institution in violation of the provisions of the state to offer loans to any of his relatives,
shall be punished in accordance with the provisions of the preceding paragraph.”

XIV.

Paragraph I of the Article 187 of the Criminal Law is amended as: “If any staff of any bank or other financial institution accepts
the money of any client without writing it into the accounts, and if the sum is huge or if any serious loss has caused, he shall
be sentenced to not more than five years of fixed-term imprisonment, and shall be imposed upon to a fine 20,000 Yuan up to 200,000
Yuan. If the sum is particularly huge or the losses are particularly serious, he shall be sentenced to five years or more in prison,
and shall be imposed upon to a fine of 50,000 Yuan up to 500,000 Yuan.”

XV.

Paragraph I of Article 188 of the Criminal Law is amended to as: “If the staff of any bank or any other financial institution in
violation of the provisions when issuing any letter of credit, letter of guarantee, instrument, certificate of deposit, certification
of credit, etc. for any other person, and if the circumstances are serious, he shall be sentenced to not more than five years of
fixed-term imprisonment or criminal detention. If the circumstances are particularly serious, he shall be sentenced to five years
or more in prison.”

XVI.

Paragraph I of Article 191 of the Criminal Law is amended as: “If anyone who is clearly aware that the earnings are obtained from
drug-related crime, organizational crime of any gangland, terrorist crime, crime of smuggling, crime of corruption or bribery, crime
of disrupting the financial management order, crime of financial fraud, etc. as well as that the incomes are generated therefrom,
yet commits any of the following acts so as to conceal and disguise the origin or nature thereof, the incomes obtained from the commission
of the aforementioned crimes as well as the incomes generated therefrom shall be confiscated, and the criminal shall be sentenced
to not more than five years of fixed-term imprisonment or criminal detention, and/or shall be imposed upon to a fine of 5% up to
20% of the amount of laundered money. If the circumstances are serious, he shall be sentenced to not less than five years but not
more than ten years in prison, and shall be imposed upon to a fine of 5% up 20% of the amount of laundered money:

(1)

Providing any capital account;

(2)

Assisting to transfer property into cash, financial instruments, or negotiable securities;

(3)

Assisting to transfer capital by means of transfer accounts or any other means of settlement;

(4)

Assisting to remit capital abroad;

(5)

Concealing and disguising the origin or nature of any crime-related earnings or the incomes generated therefrom by any other means.”

XVII.

There is an article added to the end of Article 262 of the Criminal Law as Article 262 (I): “Anyone who organizes any disabled person
or any juvenile below the age of 14 by force or coercion to beg, shall be sentenced to not more than three years of fixed-term imprisonment
or criminal detention, and shall be imposed upon to a fine. If the circumstances are serious, he shall be sentenced to not less than
three years not more than seven years in prison, and shall be imposed upon to a fine.”

XVIII.

Article 303 of the Criminal Law is amended as: “Anyone who, for the purpose of making profits, assembles a crow to engage in gambling
or makes a gambling his occupation, shall be sentenced to not more than three years of fixed-term imprisonment criminal detention,
or surveillance, and shall be imposed upon to a fine.

“Anyone who sets up any casino shall be sentenced to not more than three years of fixed-term imprisonment, criminal detention, or
surveillance, and shall be imposed upon to a fine. If the circumstances are serious, he shall be sentenced to not less than three
years but not more than ten years in prison, and shall be imposed upon to a fine.”

XIX.

Article 312 of the Criminal Law is amended as: “If anyone who is clearly aware that the earnings are obtained through crimes as well
as that the incomes are generated therefrom yet conceals, transfers, purchases, or acts as an agent to sell them or conceals and
disguises them by any other means, he shall be sentenced to not more than three years of fixed-term imprisonment, criminal detention,
or surveillance, and/or shall be imposed upon to a fine. If the circumstances are serious, he shall be sentenced to not less than
three years but not more than seven years in prison, and shall be imposed upon to a fine.”

XX.

There is an article added to the end of Article 399 of the Criminal Law as Article 399 (I): “If anyone who undertakes the duties
of arbitration in accordance with law makes any wrongful ruling purposely in violation of the facts and laws in the activities of
arbitration, in case the circumstances are serious, he shall be sentenced to not more than three years of fixed-term imprisonment
or criminal detention. If the circumstances are particularly serious, he shall be sentenced to not less than three years but not
more than seven years in prison.”

XXI.

The present Amendments shall go into effect as of the date of promulgation.

the Standing Committee of the NPC
2006-06-29

THE REPLY OF THE STATE ADMINISTRATION OF TAXATION ON ISSUES CONCERNING THE REBATE OF EXPORT TAXES TO EXPORT-ORIENTED ENTERPRISES IN BONDED AREAS

The Reply of the State Administration of Taxation on Issues Concerning the Rebate of Export Taxes to Export-oriented Enterprises in
Bonded Areas

Guo Shui Han [2006] No.666

State Taxation Bureau of Qingdao:

Your Request for Instructions on How to Deal with Rebating or Exempting the Tax of the Enterprises, which has obtained the Import-export
Operations Right in Bonded Areas and Engaged in the Non-Free Export Business (Qing Guo Shui Fa [2006] No.47) has been received, and
the following reply is made:

Considering the actual situation that, after the Measures for the Archival Filing and Registration of Foreign Trade Business Operators
is implemented, the export-oriented enterprises in bonded areas may handle the export customs declarations outside the area but within
the boundaries, the State Administration of Taxation hereby agrees to handle rebating the tax on the goods exported to outside the
area but within the boundaries by the export-oriented enterprises in bonded areas in accordance with the current relevant management
measures on the rebating of export tax .

State Administration of Taxation

July 6, 2006

State Administration of Taxation
2006-07-06

NOTICE OF THE MINISTRY OF INFORMATION INDUSTRY ON STRENGTHENING THE ADMINISTRATION OF FOREIGN INVESTMENT IN VALUE-ADDED TELECOMMUNICATIONS SERVICES

Notice of the Ministry of Information Industry on Strengthening the Administration of Foreign Investment in Value-added Telecommunications
Services

July 13, 2006

Since the Provisions on the Administration of Telecommunications Enterprises with Foreign Investment (Order No. 333 of the State Council,
hereinafter referred to as the Provisions) were promulgated and adopted, most of the foreign investors have gone through the formalities
for examination and approval of establishment of foreign-funded telecommunications enterprises, and of licenses for telecommunications
services as well as other relevant formalities for examination and approval in strict accordance with the Provisions. They have entered
into the Chinese telecommunications service market to develop the value-added telecommunications services in accordance with relevant
laws. Yet recently, it has been found that some foreign investors combining with the value-added telecommunications companies within
China scheme to evade the requirements of the Provisions and engage in illegal value-added telecommunications services within the
territory of China by means of authorization of domain names and authorization of registered trademarks, etc. For the purpose of
further strengthening relevant administration of foreign investment in the value-added telecommunications services and safeguarding
an impartial market environment, the relevant issues are hereby notified as follows:

A foreign investor that invests in the telecommunications services within the territory of China shall, in strict accordance with
the Provisions, apply for establishing a foreign-funded telecommunications enterprise and a corresponding license for telecommunications
operation. A foreign investor that fails to go through the said procedures subject to relevant laws may not make any investment in
the telecommunications business within the territory of China.

A telecommunications enterprise within the territory of China may not lease, shift or sell any license for telecommunications business
in any form, or provide resources, places and facilities or any other condition for any foreign investor to engage in any illegal
telecommunications operation by any means within the territory of China.

A telecommunications enterprise within the territory of China that lists out of the territory of China shall be subject to the inspection
and approval of the information industry competent authorities of the State Council and obtain the approval in accordance with relevant
provisions of the State.

The administrative bureau of telecommunications of a province, autonomous region or municipality directly under the State Council
shall strengthen the administration of foreign investment in value-added telecommunications services and regulate the cooperation
between foreign investors and value-added telecommunications companies within the territory of China in their administration of market
access and regulation subject to the requirements as follows:

(1)

The domain name of the Internet: In accordance with the provisions of Subparagraph (3) of Article 13 in the Regulation of the People’s
Republic of China on Telecommunications, a business operator of telecommunications services shall have the capability or reputation
of providing its clients with long-term services. In view that the domain name of the Internet is an significant resource in carrying
out relevant business of value-added telecommunications services, as well as a persuasive indicator of the capability or reputation
of providing its clients for long-term services, the domain name of the Internet shall be legally held by a business operator of
value-add telecommunications services (including any shareholder thereof).

(2)

The registered trademark: In accordance with the provisions of Subparagraph (3) of Article 13 in the Regulation of the People’s Republic
of China on Telecommunications, a business operator of value-added telecommunications services shall have the capability or reputation
of providing its clients with long-term services. In view that the registered trade-mark is an important intangible asset to develop
the business of telecommunications services, as well as a performance indicator of providing its clients with long-term services,
as a result, the trademark as employed by the business operator of value-added telecommunications services shall be legally held
by the business operator itself (any shareholder thereof).

(3)

The setting of sites, servers or other facilities: An entity applying for the business of value-added telecommunications services
shall have the necessary sites and facilities, as described in Subparagraph (3) of Article 6 in the Measures for the Administration
of the Business License for Telecommunications Services. The sites and facilities referred to in the aforesaid Measures shall be
established within the scope as prescribed by the Business License and be consistent with the value-added telecommunications business
that the operator has obtained the approval for running.

(4)

The measures for safeguarding the network information: A business operator of value-added telecommunications services shall perfect
relevant measures for safeguarding the network and information, establish relevant administrative system for information safety,
set up the procedures for handling emergencies of network and information safety and implement the liabilities of information safety
in accordance with the Basic Requirements for Safeguarding the Network Information of Value-added Telecommunications Business (YDN126-2005).

The administrative bureau of telecommunications of a province, autonomous region or municipality directly under the Central Government
shall further strengthen the examination on the setting of domain names, registered trademarks and servers or other facilities as
well as the materials concerning commitment on safeguarding of information in the routine work of inspection and approval of the
business license for value-added telecommunications business, and may not give any approval to any entity that fails to observe the
said requirements.

The administrative bureau of communications of a province, autonomous region or municipality directly under the Central Government
shall organize the company that has obtained a business license for value-added telecommunications services to conduct self-examination
and self-correction under the said requirements and carry out the surveillance and examination on the results of self-examination
and self-correction as reported by the business operators of value-added telecommunications services. A key inspection shall be performed
on the spotlighted companies to which the consumers’ attention is attached. In case of any business operator failing to comply with
the relevant requirements, it shall be ordered to correct within a time limit. Any entity that fails to correct beyond the time limit
may be cancelled of its business license for telecommunications services subject to relevant laws.

If there is any problem in the relevant work, please timely contact this Ministry , and the result of surveillance and examination
shall be submitted to this Ministry prior to November 1, 2006.

Contact department: the Administrative Bureau of Telecommunications under the Ministry of Information Industry

Contact Telephone (Fax): 66012301

Email: shcc@mii.gov.cn

the Ministry of Information Industry
2006-07-13

ANNOUNCEMENT NO. 50, 2006 OF MINISTRY OF COMMERCE, COMMISSION OF SCIENCE TECHNOLOGY AND INDUSTRY FOR NATIONAL DEFENSE AND GENERAL ADMINISTRATION OF CUSTOMS, ON IMPLEMENTING TEMPORARY EXPORT CONTROL MEASURES ON RELATED PRODUCTS OF GRAPHITE CATEGORY

Announcement No. 50, 2006 of Ministry of Commerce, Commission of Science Technology and Industry for National Defense and General
Administration of Customs, on Implementing Temporary Export Control Measures on Related Products of Graphite Category

[2006] No. 50

In accordance with Article 17 of the Regulations on the Administration of the Export of Dual-Use (Military and Civil) Nuclear Facilities
and Related Technologies of PRC and with the approval of the State Council, related products of graphite category are to be implemented
with temporary export control measures.

The Trade Name and Customs Coding of related products of graphite category are notified as follows:

In accordance with the Regulations on the Administration of the Export of Dual-Use (Military and Civil) Nuclear Facilities and Related
Technologies of PRC, the above-mentioned products shall be exported only with permits. And the Customs shall transact checking and
clearance procedures with Import and Export License of Dual-Use Facilities and Technologies, issued by Ministry of Commerce and its
authorized provincial departments of commercial administration.

The Measures shall be put into effect as from December 1, 2006.

Ministry of Commerce

Commission of Science Technology and Industry for National Defense

General Administration of Customs

July 27, 2006

Ministry of Commerce, Commission of Science Technology and Industry for National Defense, General Administration of
Customs
2006-07-27

REPLY OF THE STATE COUNCIL ON THE PLAN FOR CONTROLLING THE NATIONWIDE TOTAL DISCHARGE VOLUME OF MAJOR POLLUTANTS IN THE 11TH FIVE-YEAR PLAN PERIOD

Reply of the State Council on the Plan for Controlling the Nationwide Total Discharge Volume of Major Pollutants in the 11th Five-year
Plan Period

Guo Han [2006] No.70

The Governments of all provinces, autonomous regions and municipalities directly under the central government, the National Development
and Reform Commission, the Ministry of Supervision, the State Environmental Protection Administration, and the National Bureau of
Statistics,

The Request for Instructions on the Application for Approval to the Plan for Controlling the Nationwide Total Discharge Volume of
Major Pollutants in the 11th Five-year Plan Period (Huan Fa [2006]No.90) from the State Environmental Protection Administration and
the State Development and Reform Commission has been received and the reply is as follows:

The State Council agrees in principle to the Plan for Controlling the Nationwide Total Discharge Volume of Major Pollutants in the
11th Five-year Plan Period (hereinafter referred as the Plan).

II.

The target to reduce nationwide total discharge volume of the major pollutants by 10% in the 11th Five-year Plan period is a restrictive
requirement determined by the Outline of the 11th Five-year Plan for National Economic and Social Development. The local governments
in all provinces (autonomous regions, and municipalities directly under the central government) must carry it out strictly, without
any dissent. The target for controlling total discharge volume of chemical oxygen demand and sulfur dioxide for each province mentioned
in the Plan is the lowest requirement, which shall not be broken up.

III.

All provinces (autonomous regions and municipalities directly under the central government) shall incorporate the target for controlling
total discharge volume of major pollutants set in the Plan into both their local 11th Five-year plans and annual plans for economic
and social development, by distributing the responsibilities and duties to the lower levels of government and the major enterprises
discharging pollutants for implementation. Try to draw up programs for actions, decide on the project measures to be taken and guarantee
the funding, implement licensing system for discharging pollutants strictly, carry out strict supervision on the implementation law,
intensify supervision on the enterprises by investigating and punishing them severely for illegal discharge of pollutants; simultaneously,
try to change the mode of economic development by operable and workable means and reduce pollution from the source, so as to ensure
the achievement of the target for controlling the total discharge volume of the pollutants.

IV.

All the related government departments under the State Council shall exert more efforts to give instruction, support and supervision
on the implementation of the Plan, according to their own functions and duties. The State Environmental Protection Administration,
the State Statistics Bureau and the State Development and Reform Commission shall make public the total discharge volume of major
pollutants in all provinces (autonomous regions and municipalities directly under the central government) semiannually, and together
with the Ministry of Supervision, carry out annual check and assessment on the implementation of the Plan. The results of the check
and assessment shall be reported to the State Council.

Appendix: Plan for Controlling Nationwide Total Discharge Volume of Major Pollutants in the 11th Five-year Plan Period

The State Council

August 5, 2006
Appendix:
Plan for Controlling Nationwide Total Discharge Volume of Major Pollutants in the 1th1 Five-year Plan Period

According to the objectives on environmental protection set in the Outline of the 11th Five-year Plan for National Economic and Social
Development, (hereinafter referred to as the Outline), we formulate this Plan.

II.

During the 11th Five-year Plan period, the state will carry out planned administration on the total discharge volume of two major
pollutants, i.e. chemical oxygen demand and sulfur dioxide, taking the results of environmental statistics in 2005 as the discharge
base. It is planned to achieve the target that by 2010, the nationwide total discharge volume of the major pollutants decreases by
10% against that of 2005, specifically referring to that chemical oxygen demand decreases from 14.14million tons to 12.73 million
tons and that of sulfur dioxide from 25.49 million tons to 22.94 million tons. Moreover, in the major river basins and sea areas
to which the state has given priority in terms of prevention and control of water pollution, the total discharge volume of other
pollutants shall also be controlled, such as ammonia nitrogen (total nitrogen), total phosphor, etc, and the control target thereof
will be released in each specific plan, implemented by the related regional governments respectively and examined uniformly by the
State. And the state will carry out a unified assessment. The regional governments are encouraged to add more kinds of pollutants
that shall be controlled with more attention into the local plan for controlling the total discharge volume of pollutants, based
on the local environmental conditions.

III.

The distribution principles of the target for controlling the total discharge volume of major pollutants are as follows: on the premise
that the nationwide target is completed, the state will implement different policies in different regions, taking into consideration
all the differences in such aspects as environment condition, environment capacity, discharge base, level of economic development
and ability of reducing pollution in the eastern, middle and western regions as well as the plans for the prevention and control
of specific pollutants.

IV.

In the 11th Five-year Plan period, the major project measures for reducing the total discharge volume of chemical oxygen demand lie
in accelerating and intensifying the construction and operation management of sewage treatment facilities; and for sulfur dioxide,
the measures lie in supervising the construction and operation management of the desulfuration facilities in currently-used and newly-built
coal-fired power plants. Simultaneously, more efforts are needed to prevent and control the sources of pollution and strict supervision
shall be laid on the implementation of the policies, so that the pollutants are steadily discharged within the required target. Advanced
technologies are promoted to be actively used in the projects for newly-built, extended and reconstructed facilities, by strictly
carrying out the system of “doing three jobs simultaneously” (designing, construction and putting into operation). According to the
national industrial policy, the restructuring and upgrading of the industry shall be accelerated. As a result, the objective of the
increase of production without increase of pollution or with the decrease of pollution will be achieved. In the key industries, such
as power industry, metallurgical industry, building materials industry, chemical industry, paper-making industry, textile industry,
printing and dyeing industry, food and brewing industry, etc, clean production and recycling economy with the decrease of energy
consumption and pollution are favored and promoted.

The target for controlling the total discharge volume of chemical oxygen demand and sulfur dioxide is set on the basis of the Outline,
so it is obligatory. The local governments shall incorporate the target into both their local 11th Five-year plans and annual plans
for economic and social development by distributing the responsibilities and duties to the lower levels of government and the enterprises
discharging pollutants. And the plans shall be implemented strictly. By summing up the experience of implementing the system of controlling
total discharge volume of pollutants in the 9th and 10th Five-year Plan periods, we draw up the program for actions and administration
methods, including implementing licensing system for discharging pollutants, guaranteeing the project measures and funding, carrying
out laws strictly, intensifying supervision on the enterprises by investigating and punishing them severely for the illegal discharge
of pollutants, so as to ensure the achievement of the targets set in the plans.

VI.

As from 2006, the State Environmental Protection Administration, the State Statistics Bureau and the State Development and Reform
Commission will make public the discharge volume of chemical oxygen demand and sulfur dioxide in each locality semiannually, and
together with related government departments, carry out annual check and assessment; by 2008, a mid-term assessment on the implementation
of the Plan will be carried out, followed by a final one by 2010. The results of the checks and assessments will be announced publicly.

The State Council
2006-08-05

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German Laws

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

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

REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON THE ADMINISTRATION OF THE IMPORT AND EXPORT OF ENDANGERED WILD ANIMALS AND PLANTS

TRANSACTION REGULATIONS OF SHANGHAI STOCK EXCHANGE

OPINIONS OF THE TRANSITION OF EXPORT GROWTH MODE OF ELECTROMECHANICAL PRODUCTS DURING THE ELEVENTH FIVE-YEAR PLAN PERIOD

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON ADJUSTING SOME FOREIGN EXCHANGE MANAGEMENT POLICIES ABOUT OVERSEAS INVESTMENTS

NOTICE OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON ADJUSTING THE RELATED POLICIES FOR REAL ESTATE BUSINESS TAXES

AMENDMENTS TO THE CRIMINAL LAW OF THE PEOPLE’S REPUBLIC OF CHINA (VI)

THE REPLY OF THE STATE ADMINISTRATION OF TAXATION ON ISSUES CONCERNING THE REBATE OF EXPORT TAXES TO EXPORT-ORIENTED ENTERPRISES IN BONDED AREAS

NOTICE OF THE MINISTRY OF INFORMATION INDUSTRY ON STRENGTHENING THE ADMINISTRATION OF FOREIGN INVESTMENT IN VALUE-ADDED TELECOMMUNICATIONS SERVICES

ANNOUNCEMENT NO. 50, 2006 OF MINISTRY OF COMMERCE, COMMISSION OF SCIENCE TECHNOLOGY AND INDUSTRY FOR NATIONAL DEFENSE AND GENERAL ADMINISTRATION OF CUSTOMS, ON IMPLEMENTING TEMPORARY EXPORT CONTROL MEASURES ON RELATED PRODUCTS OF GRAPHITE CATEGORY

REPLY OF THE STATE COUNCIL ON THE PLAN FOR CONTROLLING THE NATIONWIDE TOTAL DISCHARGE VOLUME OF MAJOR POLLUTANTS IN THE 11TH FIVE-YEAR PLAN PERIOD

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