CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING THE COMPETENT DEPARTMENTS OF COMMERCE AT PROVINCIAL LEVEL TO EXAMINE AND ADMINISTRATE THE FOREIGN-FUNDED DESIGNING ENTERPRISES FOR CONSTRUCTION PROJECTS

Ministry of Commerce

Circular of the Ministry of Commerce on Entrusting the Competent Departments of Commerce at Provincial Level to Examine and Administrate
the Foreign-funded Designing Enterprises for Construction Projects

Shang Zi Han [2005] No. 92

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

In light of the requirements of the State Council for simplifying the administrative examination and approval system and for the purpose
of simplifying the procedures for examining the contracts and articles of association of foreign-funded enterprises, improving efficiency
and accelerating the absorption of foreign investment within the sector of service trade, we hereby circulate a notice on the relevant
issues as follows on entrusting the competent departments of commerce of all provinces, autonomous regions, municipalities directly
under the Central Government, cities under separate state planning and Xinjiang Production and Construction Corps (hereinafter referred
to as the competent departments of commerce at provincial level) and the administrative commissions of national economic and technical
development zones to examine and administrate the foreign-funded designing enterprises for construction projects:

The competent departments of commerce at provincial level and the administrative commissions of national economic and technical development
zones are entrusted to examine and administrate the foreign-funded designing enterprises for construction projects.

II.

All the entrusted departments and institutions shall strictly enforce the relevant standards for the qualification of foreign-funded
enterprises, earnestly carry out the relevant examination on the application for the establishment or alteration of foreign-funded
designing enterprises for construction projects in accordance with the Provisions on the Administration of Foreign-funded Designing
Enterprises for Construction Projects ([2002] No. 114 of the Ministry of Construction and the Ministry of Foreign Trade and Economic
Cooperation) as well as other laws and regulations on foreign investment, and handle the relevant matters according to the procedures
and requirements as prescribed in the aforesaid provisions upon soliciting the opinions of the competent administrative department
of construction. The entrusted departments and institutions shall report the problems as arising in the process of examination and
approval, if any, to the Ministry of Commerce in a timely manner. In the case of any rule-breaking examination and approval in the
duration of entrustment, the Ministry of Commerce shall circulate a notice of criticism or even withdraw its entrustment in light
of the real situation.

III.

All the entrusted departments and institutions shall be capable of getting connected to the Ministry of Commerce through the network
so as to issue the Approval Certificate for Foreign-funded Enterprises thereon and carrying out an joint online annual examination
and shall a good job in the examination and approval, archival filing and statistical work through the network-based certificate
issuance system for foreign-funded enterprises. The relevant statistical data shall meet the relevant requirements so that the Ministry
of Commerce may get informed of the relevant situation and strengthen its supervision. The Ministry of Commerce will carry out trainings
on the local competent departments of commerce as well as the administrative commissions of national economic and technical development
zones in the near future and clarify the specific issues in the process of examination and approval.

IV.

The entrusted administrative commissions of national economic and technical development zones shall adopt a simple and efficient administration
system in pursuant to the Circular of the General Office of the State Council on Forwarding Several Opinions of the Ministry of Commerce
and Other Departments on Promoting the Further Development of National Economic and Technical Development Zones (Guo Ban Fa [2005]
No. 15). After the national economic and technical development zones go through the archival filing of administrative system, personnel
trainings and networking inspection and acceptance, the Ministry of Commerce will separately handle the relevant formalities for
entrustment in a batch-by-batch manner.

The present Entrustment shall come into force as of March 31, 2006.

Ministry of Commerce of the People’s Republic of China

January 22, 2006

Ministry of Commerce
2006-01-22

NOTICE OF THE MINISTRY OF FINANCE ON PRINTING AND DISTRIBUTING THE RULES FOR THE BID INVITATION OF ACCOUNTING FIRMS FOR THE AUDIT ENTRUSTMENT

the Ministry of Finance

Notice of the Ministry of Finance on Printing and Distributing the Rules for the Bid Invitation of Accounting Firms for the Audit
Entrustment

Cai Hui [2006] No.2

To the departments (bureaus) of finance of all provinces, autonomous regions and municipalities directly under the Central Government,
Shenzhen City Bureau of Finance, relevant ministries, commissions of and institutions directly under the State Council and enterprises
under central administration,

For the purpose of regulating the activities relating to the bid invitation of accounting firms for the audit entrustment, promoting
the fair competition in the industry of certified public accountants and protecting the lawful rights and interests of tenderees
and bidding firms, the Ministry of Finance has formulate the Rules for the Bid Invitation of Accounting Firms for the Audit Entrustment,
which are now printed and distributed to you. The Rules shall come into force as of the date of March 1, 2006.

Annex: Rules for the Bid Invitation of Accounting Firms for the Audit Entrustment

Ministry of Finance (Seal)

January 1, 2006 Annex:Rules for the Bid Invitation of Accounting Firms for the Audit Entrustment

Article 1

For the purpose of regulating the activities relating to the bid invitation of accounting firms (hereinafter referred to as the firms)
for the audit entrustment, promoting the fair competition in the industry of certified public accountants and protecting the lawful
rights and interests of tenderees and bidding firms, these Rules are formulated according to the Bidding Law of the People’s Republic
of China, the Law of the People’s Republic of China on Certified Public Accountants and other relevant laws.

Article 2

The tenderees shall abide by the Bidding Law of the People’s Republic of China for the audit entrustment of firms by way of bid invitation,
which shall conform to these Rules.

Article 3

The principles of openness, fairness, equity and good faith shall be followed for the bidding activities.

No entity or individual may violate the laws or administrative regulations, restrict or exclude firms from participating in the bidding
or illegally interpose the bidding in any form.

When undertaking and conducting the audit work by way of bidding, a firm shall abide by the audit rules and professional ethics, fulfill
obligations and accomplish the bid winning project in strict accordance with the agreement on the audit work.

Article 4

The following procedures shall be observed when conducting the bid invitation of firms for the entrustment of audit work:

(1)

Bid invitation, which includes the determination of the way of bid invitation, the issuance of bid invitation announcements (in the
case of public bid invitation) or issuance of bid invitation letters (in the case of selective bid invitation), the formulation of
bid invitation documents and the delivery of bid invitation documents to potential bidding firms;

(2)

Bid opening;

(3)

Bid evaluation; and

(4)

Determination of the bid winning firm, issuance of the bid winning notice and conclusion of the agreement on the audit work with the
bid winning firm.

Article 5

Generally, a tenderee shall entrust a firm by way of public bid invitation.

If a bid invitation project is under any of the following circumstances, the method of selective bid invitation may be adopted:

(1)

There is particularity , meaning the firm can only be chosen from a limited scope; or

(2)

There is an emergency, meaning the entrustment cannot be accomplished by the way of public bid invitation within the prescribed time
limit.

Article 6

Where the way of public bid invitation is adopted, a bid invitation announcement shall be publicized. Where the way of selective bid
invitation is adopted, the bid invitation letters shall be sent out to at least three firms.

The bid invitation announcement and the bid invitation letters shall state the name and address of the tenderee, the quality, quantity,
implementation site and time of the bid invitation project as well as the measures for obtaining bid invitation documents, etc.

Article 7

A tenderee may request the potential firms to provide relevant qualification certificates and performance conditions in the bid invitation
announcement or the bid invitation letters, and carry out the qualification examination of potential bidding firms according to the
requirements of the project for bid invitation.

A tenderee shall make full use of the industrial information as publicized by the fiscal department and the association of certified
public accountants, and implement the provisions of the Ministry of Finance on the audit administration during the process of qualification
examination,.

Article 8

A tenderee shall formulate bid invitation documents according to the characteristics of bid invitation project and the requirements.
The bid invitation documents shall include:

(1)

The introduction of the bid invitation project;

(2)

The standards for the qualification examination of bidding firms;

(3)

The requirements on the quotes for bidding;

(4)

The standards for bid evaluation; and

(5)

The main articles of the agreement on the audit work to be concluded.

Article 9

A tenderee shall make explicit disclosure of the information about the bid invitation project in the bid invitation documents in order
to facilitate the determination of the workload, the formulation of the work schemes, the presentation of reasonable quotes and the
formulation of bidding documents by the bidding firms, which shall include the organizational structure, industry, operational type,
distribution and financial information (such as the assets scale and structure, debts, annual revenues and other relevant financial
indicators) of the entities to be audited.

Article 10

A tenderee shall conform to the requirements of the bid invitation project and reasonably determine the evaluation items, set down
the standards for evaluation and design the weight of the score of each evaluation item in the total score by the way of comprehensively
considering the work schemes, personnel situation, relevant work experiences, records of professional ethics and quality control
level, degree of commercial responses and quotes of bidding firms. The weight of the score as reported by any bidding firm shall
not be more than 20%.

The specific design of bid evaluation standards may be determined by referring to the attached Reference Table for the Evaluation
Items and the Design of their Weights.

Article 11

Where the time limit to complete the corresponding work for a bid invitation project needs to be determined, the tenderee shall reasonably
determine the time limit by taking into account the particularity of the industrial services of certified public accountants, and
state it in the bid invitation documents.

Article 12

A tenderee may organize the potential bidding firms for discussions and answering questions according to the specific conditions of
the bid invitation project. Where the potential bidding firms need to consult the detailed materials about the bid invitation project,
the tenderee shall offer convenience if possible.

Article 13

A tenderee shall consider the particularity of the industrial services of certified public accountants when determining the time limit
for the bidding firms to formulate bidding documents, and the time limit shall generally be not less than 20 days from the day when
the bid invitation documents are sent out to the expiry date for the bidding firms to submit bidding documents.

Article 14

A tenderee shall open the bids publicly and invite all the bidding firms to participate in the bid opening.

Article 15

A tenderee shall organize a bid appraisal committee to be responsible for bid appraisal.

The bid appraisal committee shall be composed of representatives of the tenderee and experts familiar with the industry of certified
public accountants Anyone that has interests with a tenderer shall not be a member of the bid appraisal committee for the relevant
project.

The members of a bid appraisal committee (hereinafter referred to as the judges) shall be an odd number of 5 persons or more, of which
the experts familiar with the industry of certified public accountants shall be no less than two thirds of all the members generally.

The name list of judges shall be kept unannounced before the bid winning results are determined.

Article 16

A tenderee shall take measures necessary to guarantee that the bids are evaluated under a strictly confidential circumstance. No entity
or individual may illegally intervene in or influence the process or result of bid appraisal.

Article 17

The judges shall give scores for bidding firms according to the standards for bid appraisal.

The bid appraisal committee shall rank all the bidding firms according to their scores and recommend the bid winning candidate firms
according to the ranking.

Article 18

The bid appraisal committee shall work out a written bid appraisal report to the tenderee after completing the bid appraisal,.

The tenderee shall determine the bid winning firm according to the written bid appraisal report as worked out and the bid winning
candidate firms as recommended by the bid appraisal committee, or may authorize the bid appraisal committee to directly determine
the bid winning firm.

Article 19

After the bid winning firm is determined, the tenderee shall send out a bid winning notice to the bid winning firm, and notify the
bid winning result to all the bidding firms that fail the bidding.

Article 20

A tenderee shall conclude an agreement on the audit work with the bid winning firm on the basis of the bid invitation documents and
the bidding documents of the bid winning firm within 30 days after the bid winning notice is sent out.

The tenderee shall not require the bid winning firm to alter the substantial contents of the bid invitation project, enhance the technical
requirements of the bid invitation project, reduce the fees for the entrusted matter or seek for commissions from the bid winning
firm for any excuse.

The tenderee shall not conclude any other agreement with the bid winning firm that is contrary to the substantial contents of the
agreement on the audit work.

Article 21

The Ministry of Finance and the fiscal departments of all the provinces, autonomous regions and municipalities directly under the
Central Government shall supervise the audit-related bidding activities and deter and deal with illegal and irregular acts during
the course of audit-related bidding activities according to the law.

Article 22

The entrustment of firms for other authentication and relevant services by the tenderees by way of bid invitation shall be conducted
by reference to these Rules.

Article 23

The power to interpret these Rules shall remain with the Ministry of Finance.

Article 24

These Rules shall come into force as of March 1, 2006.

Annex: Reference Table for the Appraisal Items and the Design of Their Weights htm/e04794.htmAnnex

Annex:

Reference Table for the Appraisal Items and the Design of Their Weights

Appraisal Items	Weight Scope
Work Plan	20%-30%
Personnel Situation	20%-30%
Relevant Work Experiences	15%-25%
Records of Professional Ethics and Quality Control Level	10%-15%
Degree of Commercial Responses	5%
Quote	10%-20%

Annotation: As to the appraisal of quotes, the standards for appraisal shall be the absolute value of the discrepancy between the
quote and average quote, and the lower the absolute value of the discrepancy is, the higher the score will be.

LETTER OF CHINA BANKING REGULATORY COMMISSION CONCERNING APPROVING THE CHINA-BASED BRANCHES OF DBS BANK (HONG KONG) LIMITED TO LAUNCH OUT ON-LINE BANKING BUSINESS

Letter of China Banking Regulatory Commission concerning Approving the China-based Branches of DBS Bank (Hong Kong) Limited to Launch
out On-line Banking Business

DBS Bank (Hong Kong) Limited,

Our commission has received the letter which was signed by Mr. Randolph Sullivan, administrative president of your Bank.

The following reply is hereby given to you according to the Regulation of the People’s Republic of China on the Administration of
Foreign-funded Financial Institutions (Order No. 340 of the State Council), the Detailed Rules for the Implementation of the Regulation
of the People’s Republic of China on the Administration of Foreign-funded Financial Institutions (Order No. 4,2004 of China Banking
Regulatory Commission) and the Interim Measures for Controlling On-line Banking Operations (Order No. 6, 2001 of the People’s Bank
of China):

The branches set up by your bank within China are hereby approved to launch out the on-line banking business, the business scope and
clients shall be limited under the approved scope of each branch.

The on-line banking business to be approved to launch out shall comply with the Interim Measures for Controlling On-line Banking Operations
and other related provisions.

The branches of your bank approved to be established within China to launch out on-line banking business shall, with the strength
of this Reply and the authorization document issued by your bank, report the type and nature of the business to be launched, the
rules on managing the risks of on-line banking business and the operating procedures to the local organ dispatched by China Banking
Regulatory Commission, and shall be supervised and inspected by it.

According to the Regulation of Management on Commercial Cipher, your bank shall hand in an application to the state cipher administrative
organ for an approval of using cipher products, or using equipment containing cipher technologies.

China Banking Regulatory Commission

February 9, 2006

China Banking Regulatory Commission
2006-02-09

ACCOUNTING STANDARD FOR BUSINESS ENTERPRISES NO. 9 – EMPLOYEE COMPENSATION

Ministry of Finance

Accounting Standard for Business Enterprises No. 9 – Employee Compensation

Cai Kuai [2006] No. 3

February 15, 2006

Chapter I General Provisions

Article 1

To standardize the confirmation and measurement of the employee compensation, and the disclosure of relevant information, these Standards
are formulated according to the Accounting Standard for Business Enterprises – Basic Standards.

Article 2

The term ” employee compensation ” refers to all kinds of payments and other relevant expenditures given by enterprises in exchange
of the services offered by the employees. The employee compensation shall include:

(1)

Wages, bonuses, allowances and subsidies for the employees;

(2)

Welfare expenses for the employees;

(3)

Medical insurance, endowment insurance, unemployment insurance, work injury insurance, maternity insurance and other social insurances;

(4)

Housing accumulation fund;

(5)

Labor union expenditure and employee education expenses;

(6)

Non-monetary welfare;

(7)

Compensations for the cancellation of the labor relationship with the employees; and

(8)

Other relevant expenditures of services offered by the employees.

Article 3

The following items shall be subject to other relevant accounting standards:

(1)

The enterprise annuity funds shall be subject to the Accounting Standard for Business Enterprises No. 10 -Enterprise Annuity Fund;
and

(2)

The compensation based on shares shall be subject to the Accounting Standard for Business Enterprises No. 11 – Share-based Payment.

Chapter II Confirmation and Measurement

Article 4

During the accounting period of an employee’ providing services to an enterprise, the enterprise shall recognize the compensation
payable as liabilities. Except for the compensations for the cancellation of the labor relationship with the employee, the enterprise
shall, in accordance with beneficiaries of the services offered by the employee, treat the following circumstances respectively:

(1)

The compensation for the employee for producing products or providing services shall be recorded as the product costs and service
costs;

(2)

The compensation for the employee for any on-going construction project or for any intangible asset shall be recorded as the costs
of fixed asset or intangible assets; or

(3)

The compensation for the employee other than those as mentioned in Items (1) and (2) shall be recorded as profit or loss for the current
period.

Article 5

During the accounting period of an employee’ providing services to an enterprise, the enterprise shall calculate the medical and insurance,
endowment insurance, unemployment insurance, work injury insurance, maternity insurance and other social insurances, as well as the
housing accumulation fund, which are paid by the enterprise to the employee, on the basis of a certain proportion in the total amount
of wages, and treat them according to Article 4 of these Standards.

Article 6

If an enterprise cancels the labor relationship with any employee prior to the expiration of the relevant labor contract or brings
forward any compensation proposal for the purpose of encouraging the employee to accept a layoff, and the following conditions are
met concurrently, the enterprise shall recognize the expected liabilities incurred due to the compensation for the cancellation of
the labor relationship with the employee, and shall simultaneously record them into the profit or loss for the current period:

(1)

Where the enterprise has formulated a formal plan on the cancellation of labor relationship or has brought forward a proposal on voluntary
layoff and will execute it soon.

This plan or proposal shall include the department at which the employee to be laid off works, the post of the employee and the number
of the employees to be laid off, the amount of compensation for the cancellation of labor relationship or for layoff as determined
on the basis of the job category or post according to the relevant provisions, and the planned time for the cancellation of labor
relationship or layoff.

(2)

The enterprise is unable to unilaterally withdraw the plan on the cancellation of labor relationship or the layoff proposal.

Chapter III Disclosure

Article 7

An enterprise shall disclose the following information related to the employee compensation in the annotation:

(1)

The wages, bonuses, allowances and subsidies, which shall be paid to the employees, and the amounts payable at the end of period;

(2)

The medical insurance, endowment insurance, unemployment insurance, work injury insurance, maternity insurance and other social insurances,
which shall be paid by the enterprise for the employees, as well as the amounts payable at the end of period;

(3)

The housing accumulation fund that shall be paid for the employees, as well as the amounts payable at the end of period;

(4)

The non-monetary welfare provided for the employees, as well as the calculation basis;

(5)

The compensation that shall be paid for the cancellation of the labor relationship with the employees, as well as the amounts payable
at the end of period; and

(6)

Other employee compensations.

Article 8

The contingent liabilities incurred due to the uncertainty of the number of the employees who offer to accept the layoff proposal,
the compensation standards and etc. shall be disclosed according to the Accounting Standard for Business Enterprises No. 13 – Contingencies.

Ministry of Finance
2006-02-15

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 24 – HEDGING

Ministry of Finance

Accounting Standards for Enterprises No. 24 – Hedging

Cai Kuai [2006] No. 3

February 15, 2006

Chapter I General Principles

Article 1

These Standards are formulated in accordance with the Accounting Standards for Enterprises – Basic Standards for the purpose of regulating
the recognition and measurement of the hedging.

Article 2

The term ” hedging” refers to one or more hedging instruments which are designated by an enterprise for avoiding the risks of foreign
exchange, interest rate, commodity price, stock price, credit and etc., and which is expected to make the changes in fair value or
cash flow of hedging instrument(s) to offset all or part of the changes in the fair value or cash flow of the hedged item.

Article 3

The hedging are classified into fair value hedging, cash flow hedging, and net investment hedging in an overseas operation.

(1)

A fair value hedging refers to a hedging of the risk to changes in the fair value of a recognized asset or liability or a previously
unrecognized firm commitment, or to changes in the identifiable portion of the fair value of a recognized asset or liability or a
previously unrecognized firm commitment. Such changes in value are attributable to a particular risk and could affect enterprise’
profit or loss.

(2)

A cash flow hedging refers to a hedging of the risk to changes in cash flow. Such changes in cash flow are attributable to a particular
risk related to a recognized asset or liability or a highly probable forecast transaction and could affect enterprise’ profit or
loss.

(3)

A net investment hedging in an overseas operation refers to hedging of the foreign exchange risk arising from net investment in an
overseas operation. The “net investment in an overseas operation” refers to an enterprise’ equity of rights and interests in the
net assets in an overseas operation.

Article 4

For a hedging which satisfies the conditions as prescribed in Chapter III of these Standards, the enterprise may deal with it through
the hedging accounting method.

The ” hedging accounting method” shall refer to a method to record the result of offsetting the hedging instrument and the changes
of the fair value of the hedged item.

Chapter II Hedging Instruments and Hedged Items

Article 5

The term “hedging instrument” shall refer to a derivative instrument which is designated by an enterprise for hedging and by which
it is expected that changes in its fair value or cash flow can offset the changes in fair value or cash flow of the hedged item.
For a hedging of foreign exchange risk, a non-derivative financial asset or non-derivative financial liability may be used as a hedging
instrument.

Article 6

To establish the hedging relationship, an enterprise shall designate all or certain proportion of the hedging instruments (excluding
a certain time period within the residual time limit of the hedging instrument), but with the exception of the following circumstances:

(1)

For an option, the enterprise may separate the intrinsic value from the time value of the option and merely designate the option as
a hedging instrument based on the changes of its intrinsic value; and

(2)

For a forward contract, the enterprise may separate the interest from the spot price of a forward contract and merely designate the
forward contract as a hedging instrument based on the changes of spot price.

Article 7

Generally an enterprise may designate a single derivative instrument as a hedging for one kind of risk, but if the following conditions
are met at the same time, it may designate a single derivative instrument as a hedging for one or more kinds of risks:

(1)

All risks to be hedged are clear and identifiable;

(2)

The effectiveness of hedging may be proved; and

(3)

It can insure that there is a specific specifying relationship between the derivative instrument and different risk positions.

The “effectiveness of hedging” shall refer to the extent that the changes in the fair value or cash flow of a hedging instrument may
offset the changes resulted from the hedging risks in the fair value or cash flow of a hedged item.

Article 8

An enterprise may designate a combination of two or more derivative instruments or a certain proportion of such a combination as a
hedging instrument.

For a foreign exchange hedging, the enterprise may designate a combination of two or more non-derivative instruments or a certain
proportion of such a combination, or a combination of derivative instrument(s) and non-derivative instrument(s) or a certain proportion
of such a combination as a hedging instrument.

For a collar option, or for an option composed of an issued option and a purchased option, if its essential is equivalent to an option
issued by the enterprise (that is to say, the enterprise charges for the net option), the enterprise cannot designate it as a hedging
instrument.

Article 9

The “hedged item” shall refer to the following items which make an enterprise faced to changes in fair value or cash flow and are
designated as the hedged objectives:

(1)

A single recognized asset, liability, firm commitment, highly probable forecast transaction, or a net investment in an overseas operation;

(2)

A group of recognized assets, liabilities, firm commitments, highly probable forecast transactions, or net investments in overseas
operations with similar risk characteristics; and

(3)

A portion of the portfolio of financial assets or financial liabilities that share the risk of interest rate of the same hedged (only
applicable to a portfolio of hedging in the fair value of interest rate risk).

The “firm commitment” shall refer to an agreement with legal control force regarding the exchange of a particular number of resources
at the stipulated price on a specific future date or in a specific future period. The “forecast transaction” shall refer to a transaction
for which no commitment is made, but which is expected to occur.

Article 10

If the hedged risk is a credit risk or foreign exchange risk, the held-to-maturity investment may be designated a hedged item. If
the hedged risk is an interest rate risk or risk of repayment ahead of the schedule, the held-to-maturity investment shall not be
designated as a hedged item.

Article 11

If the exchange gain or loss of any monetary item formed by an intra-group transaction of an enterprise is unable to be fully offset
in the consolidated statements, the foreign exchange risk of this monetary item may be designated as a hedged item in the consolidated
financial statements.

For a highly probable forecast intra-group transaction of an enterprise, if its price is denominated in a currency other than the
functional currency of the subject entering into that transaction (that is to say, its price is denominated in an overseas currency)
and if the relevant foreign exchange risk will affect consolidated financial statements, such foreign exchange risk may be designated
as a hedged item in the consolidated financial statements.

Article 12

For a portion of the risk relating to the cash flow or fair value of a financial liabilities or financial asset, if the effectiveness
of hedging may be measured, the enterprise may, based on the risk, designate financial asset or financial liability as a hedged item.

Article 13

In the matter of a hedging in fair value of the interest rate risk of a portfolio of financial assets or financial liabilities, an
asset or liability denominated in a certain currency (such as RMB, US dollar or Euro dollar) may be designated as a hedged item.

Article 14

An enterprise may designate all of the cash flows of a financial asset or financial liability as a hedged item. However, if only a
portion of the cash flows of a financial asset or financial liability is designated as a hedged item, the designated portion shall
be less than the total amount of the cash flows of the financial asset or financial liability.

Article 15

Where a non-financial asset or non-financial liability is designated as a hedged item, the hedged risk shall be all risks or foreign
exchange risks pertinent to this non-financial asset or non-financial liability.

Article 16

With regard to a hedging by the portfolio of assets or liabilities with similar risk characteristics, each single asset or liability
among the portfolio shall undertake the hedged risk simultaneously, and the changes in fair value of each single asset or liability
in the portfolio resulted from the hedged risk shall, by and large, be expected in proportion to the holistic changes in the fair
value of the portfolio resulted from the hedged risk.

Chapter III Recognition and Measurement of Hedging

Article 17

Where a fair value hedging, cash flow hedging or a hedging of net investment in an overseas operation satisfies the following conditions
simultaneously, it may be dealt with through the hedging accounting method as prescribed in these Standards:

(1)

At the commencement of the hedging, the enterprise shall specify the hedging relationship formally (namely the relationship between
the hedging instrument and the hedged item) and prepare a formal written document on the hedging relationship, risk management objectives
and the strategies of hedging. This document shall at least specify the contents of hedging instrument, the hedged item, the nature
of the hedged risk and the method for the effectiveness assessment of the hedging and etc..

The hedging shall be relevant to the designated specific identifiable risk, and will ultimately affect the profits and losses of the
enterprise.

(2)

The hedging expectation is highly efficient and meets the risk management strategy, which is confirmed for the hedging relationship
by enterprise at the very beginning.

(3)

For a cash flow hedging of forecast transaction, the forecast transaction shall be likely to occur and shall make the enterprise faced
to the risk of changes in cash flow, which will ultimately affect the profits and losses.

(4)

The effectiveness of hedging can be reliably measured.

(5)

An enterprise shall continuously evaluate the effectiveness of hedging and ensure that this hedging is highly effective in accounting
period in which the hedging relationship is specified.

Article 18

If a hedging satisfies the following conditions simultaneously, the enterprise shall recognize it as being highly efficient:

(1)

At the beginning and in subsequent periods of a hedging, this hedging expectation shall be highly effective in offsetting the changes
in the fair value or cash flows caused by the hedged risk during the specified periods;

(2)

The hedging ‘s actual offset results are within a range of 80% to 125%.

Article 19

An enterprise shall at least evaluate the hedging effectiveness when formulating medium-term or annual financial statements.

Article 20

For a hedging of interest rate risk, the enterprise shall, by formulating the maturity timetable of financial assets and financial
liabilities, mark out the net risk of interest rate for each period and evaluate the hedging effectiveness accordingly.

Article 21

If a fair value hedging satisfies the conditions for adopting the hedging accounting method, it shall be dealt with according to the
following provisions:

(1)

If the hedging instrument is a derivative instrument, the gain or loss from the changes in the fair value of the hedging instrument
shall be recorded in the profits and losses of the current period. If the hedging instrument is a non-derivative instrument, the
gain or loss on the book value of the hedging instrument resulting from changes in exchange rate shall be recorded in the profits
and losses of the current period.

(2)

The gain or loss of the hedged item resulting from the hedged risk shall be recorded in the profits and losses of the current period
and the book value of the hedged item shall be adjusted at the same time. The said provision shall also be applicable if the hedged
item is an inventory of which the subsequent measurement will be made at its cost and realizable net value, whichever is lower, or
a financial asset of which the subsequent value will be made at the amortized cost, or a financial asset available for sale.

Article 22

With regard to a fair value hedging for the interest rate risk of a portfolio of financial assets or financial liabilities, for satisfying
the requirements of Article 21 (2) of these Standards, the enterprise may deal with the gain or loss formed by the hedged item according
to the following methods:

(1)

If the hedged item is an asset within the re-pricing period, it shall be presented as a separate item under the assets item ( presenting
behind the financial assets) of the balance sheet, and shall be written off after the termination of recognition.

(2)

If the hedged item is a liability within the re-pricing period, it shall be presented as a separate item under the liabilities item
( presenting behind the financial liabilities) of the balance sheet, and shall be written off after the termination of recognition.

Article 23

Where any of the following conditions is satisfied, the enterprise shall stop making the treatments according to the Article 21 of
these Standards:

(1)

The hedging instrument has been mature or has been sold, or the contract is terminated or has been exercised.

Where the period of hedging instrument is extended, or where a hedging instrument is replaced by another one, if the extension or
replacement is an composing part of the hedging strategy as specified in the formal written document of the enterprise, the enterprise
shall not deal with it as being in the case of maturity or termination of contract.

(2)

The hedging does not satisfy the conditions for adopting the hedging accounting method as specified in these Standards any longer.

(3)

The enterprise has revoked the specifying of the hedging relationship.

Article 24

If a hedged item is a financial instrument measured at the amortized cost, an adjustment which is made to the book value of the hedged
item according to the Article 21 (2) of these Standards shall, during the period from the adjustment date to the maturity date,
be amortized based on the effective interest rate recalculated on the adjustment date and shall be recorded in the profits and losses
of the current period.

With regard to a fair value hedging of interest rate risk portfolio, the relevant items separately presented in the balance sheet
shall, during the period from the adjustment date to the relevant date on which the re-pricing period ends, be amortized based on
the effective interest rate re-calculated on the adjustment date. If it is not feasible to adopt the effective interest rate method
for the amortization, the straight-line method may be adopted. .

The amortization of above-mentioned adjustment amounts shall be finished on the maturity date of the financial instrument. For a fair
value hedging of interest rate risk portfolio, the amortization shall be finished prior to the date of end of the relevant re-pricing
period.

Article 25

If a hedged item is an unrecognized firm commitment, the accumulative amount of the changes in the fair value of the firm commitment
resulting from the hedged risk shall be recognized as an asset or liability and the related gain or loss shall be included into the
profits and losses of the current period.

Article 26

For a fair value hedging of firm commitment to purchase an asset or undertake a liability, an adjustment shall, based on the accumulative
amount of the changes in the fair value resulting from the hedged risks (recognized to be an asset or liability), be made to the
amount of initial recognition of the asset obtained or liability undertaken due to the firm commitment.

Article 27

Where a cash flow hedging meets the conditions for adopting the hedging accounting method, it shall be dealt with in accordance with
the following provisions:

(1)

In the profit or loss of the hedging instrument, the portion, which is attributed to the effective hedging shall be directly recognized
as the owner’s equity and shall be presented as a separate item. The amount of the portion of the effective hedging shall be confirmed
in accordance with the absolute amounts of the following items whichever is lower:

(a)

The accumulative profit or loss of the hedging instrument as of the commencement of hedging; or

(b)

The accumulative amount of changes in the present value of the estimated future cash flow of the hedged item as of the commencement
of the hedging.

(2)

In the profit or loss of the hedging instrument, the portion, which is attributed to the ineffective hedging (namely the other profit
or loss after deducting the portion directly recognized as the owner’s equity) shall be recorded in the profit and loss of the current
period.

(3)

If the formal written document on the risk management strategy states that a certain portion of the profit or loss of a hedging instrument,
or the relevant effects on the cash flow shall be excluded when evaluate the hedging effectiveness, the profit or loss of excluded
portion shall be dealt with according to the Accounting Standards for Enterprises No. 22 – Recognition and Measurement of Financial
Instruments.

An enterprise may deal with a hedging of foreign exchange risk of firm commitment as a cash flow hedging or fair value hedging.

Article 28

If a hedged item is a forecast transaction and if the forecast transaction makes the enterprise subsequently recognize a financial
asset or financial liability, the relevant profit or loss directly recognized as the owner’s equity originally shall be shifted out
of the same period in which this financial asset or financial liability affects the profit or loss of the enterprise and shall be
recorded in the profits and losses of the current period. However, when all or partial net loss expected by the enterprise to be
directly recognized in the owner’s equity originally can not be made up in the future accounting period, the portion which can not
be made up shall be shifted out and shall be recorded in profits and losses of the current period.

Article 29

If a hedged item is a forecast transaction and if the forecast transaction makes the enterprise recognized a non-financial asset or
non-financial liability subsequently, the enterprise may deal with it by choosing either of the following methods:

(1)

The relevant profit or loss directly recognized in the owner’s equity originally shall be shifted out during the same period in which
this non-financial asset or non-financial liability affects the profit or loss of the enterprise and shall be recorded in the current
profits and losses of the current period. However, when all or partial net loss expected by the enterprise to be directly recognized
in the owner’s equity originally can not be made up in the future accounting period, the portion which can not be made up shall be
shifted out and shall be recorded in profits and losses of the current period.

(2)

The relevant profit or loss directly recognized in the owner’s equity originally shall be shifted out and shall be recorded in the
amount of the initial recognition of the non-financial asset or non-financial liability.

When the forecast transaction of a non-financial asset or non-financial liability forms a firm commitment, if the firm commitment
satisfies the conditions for adopting the hedging accounting method as prescribed in these Standards, either of the above-mentioned
methods shall be chose to deal with it as well.

When either of the above-mentioned methods is chosen by an enterprise as the accounting policy, it shall be applied to all relevant
forecast transaction hedging and shall not be changed randomly.

Article 30

With regard to a cash flow hedging without involved in Articles 28 and 29 of these Standards, the profit or loss of the hedging instrument
directly recorded in the owner’s equity originally shall be shifted out at the same period, during which the profits and losses of
the hedged forecast transaction are affected, and shall be recorded in the profits and losses of the current period.

Article 31

Under the following circumstances, an enterprise may not make any treatment in accordance with the provisions from Article 27 to
30 of these Standards:

(1)

The hedging instrument has been mature or sold, or the contract is terminated or has been exercised.

The profit or loss of the hedging instrument, which is directly recorded in the owner’s equity during effective period of the hedging
shall not be shifted out, until the forecast transaction actually occurs, it shall be dealt with according to Article 28 , 29 or
30 of these Standards.

If the period of a hedging instrument is extended, or if a hedging instrument is replaced by another, and if the extension or replacement
is an composing part of the hedging strategy as specified in the formal written document of the enterprise, it shall not be dealt
with as being in the case of maturity or termination of contract.

(2)

The hedging no longer satisfies the conditions for adopting the hedging accounting methods as prescribed in these Standards.

The profit or loss of the hedging instrument, which is directly recorded in the owner’s equity during the effective period of the
hedging shall not be shifted out, until the forecast transaction actually occurs it shall be dealt with according to the Article
28 , 29 or 30 of these Standards.

(3)

It is expected that the forecast transaction will not occur.

The profit or loss of the hedging instrument, which is directly recorded in the owner’s equity during the effective period of the
hedging shall be shifted out and shall be recorded in the profits and losses of the current period.

(4)

An enterprise revokes the designation of the hedging relationship.

For a hedging of forecast transaction, the profit or loss of the hedging instrument, which is directly recorded in the owner’s equity
during the effective period of the hedging, shall not be shifted out until the forecast transaction actually occurs, or until it
is expected that it will not occur. If the forecast transaction actually occurs, it shall be dealt with according to the Article
28 , 29 or 30 of these Standards. If it is expected that the forecast transaction will not occur, the relevant profit or loss directly
recorded in the owner’s equity originally shall be shifted out and shall be recorded in the profits and losses of the current period.

Article 32

A hedging of net investment in an overseas operation shall be dealt with according to the similar to the provisions of cash flow hedging
accounting:

(1)

In the profit or loss formed by the hedging instrument, the portion that is attributed to the effective hedging shall be recognized
as the owner’s equity directly and shall be presented as a separate item.

When disposing an overseas operation, the profit or loss of the hedging instrument reflected by the separately presented item in the
owner’s equity shall be shifted out and shall be recorded in the profits and losses of the current period.

(2)

In the profit or loss formed by the hedging instrument, the portion that is attributed to the ineffective hedging shall be recorded
in the profits and losses of the current period.

Ministry of Finance
2006-02-15

REPLY OF THE STATE ADMINISTRATION OF TAXATION FOR DEAL WITH THE ISSUES CONCERNING THE INCOMES TAX FROM THE DEMOLISHMENT OF BUSINESS USE HOUSES BY FOREIGN-FUNDED ENTERPRISES

State Administration of Taxation

Reply of the State Administration of Taxation for Deal with the Issues concerning the Incomes Tax from the Demolishment of Business
Use Houses by Foreign-funded Enterprises

Guo Shui Han [2006] No. 154

February 15, 2006

Your bureau on Request for Instructions about Whether the Building Decoration Expenses for Some Houses That Has Been Demolished shall
Be Deducted before the Enterprise Income Tax Is Levied for Qingdao Shangri-la Hotel Co. Ltd. (Qing Guo Shui Fa [2005] No. 195) has
been received. After deliberation, a following reply is hereby given on how to deal with the issue about the incomes tax from the
demolishment of business use houses by foreign-funded enterprises :

In accordance with the relevant provisions in Article 31 of the Detailed Rules for the Implementation of the Law of the People’s
Republic of China on the Income Tax of Foreign-funded Enterprises and Foreign Enterprise and relevant provisions in Article 1 of
the Reply of the State Administration of Taxation on How to Deal with the Taxation Issue about the Building Decoration Expenses of
Foreign- funded Enterprises (Guo Shui Han [2000] No.704), the building decoration expenses incurred for the first time that occur
before the houses are put into the business use of foreign-funded enterprises, shall be included in the original prices of fixed
assets and be calculated for depreciation according to the provisions in the tax law. After the houses for business use have been
used for several years, the foreign-funded enterprises carry out anew decorations, for the decoration facilities during the initial
decoration that are dismantled during the course of anew decorations shall not be taken as the losses of fixed assets and be deducted
from the original value of fixed assets. The incomes from the conversion of the initial decoration facilities dismantled during the
course of anew decorations may be used to deduct the expenses for anew decorations.

State Administration of Taxation
2006-02-15

LETTER OF THE CHINA BANKING REGULATORY COMMISSION ON APPROVING THE BANK OF INDIA TO SET UP THE BEIJING REPRESENTATIVE OFFICE

Letter of the China Banking Regulatory Commission on Approving the Bank of India to Set up the Beijing Representative Office

Bank of India,

The letter signed by board chairman and managing director Mr. MBalachandran and addressed to this Commission has been received.

According to the Measures for the Administration on Representative Offices in China of Foreign-funded Financial Institutions (Decree
No. 8, 2002 of the People’s Bank of China, hereinafter referred to as these Measures), you are hereby approved to establish a representative
office in Beijing, whose Chinese name is “ӡ” and English name “Bank of India Beijing Representative Office “.

In accordance with the related provisions of these Measures, Shivanagouda Doddappagoudar is granted an approval to take the position
of the chief representative of the Representative Office.

The China Banking Regulatory Commission

February 21, 2006

The China Banking Regulatory Commission
2006-02-21

MOFCOM, NDRC, GAC, GAQSIQ AND CAA OF THE PEOPLE’S REPUBLIC OF CHINA ANNOUNCEMENT NO.14, 2006

Ministry of Commerce, National Development and Reform Commission, General Administration of the Customs, General Administration of
Quality Supervision, Inspection and Quarantine, and Certification and Accreditation Administration

MOFCOM, NDRC, GAC, GAQSIQ and CAA of the People’s Republic of China Announcement No.14, 2006

[ 2006] No.14

In accordance with Circular on Regulating Export Order of Motorcycle Products (No.699, 2005) and Supplementary Circular on Regulating
Export Order of Motorcycle Products (No.44, 2006), here announce the List of Finished Motorcycle Producing Enterprises with Export
Qualifications and Export Operation Enterprises with Authorization, List of ATV Producing Enterprises with Export Qualifications
and Export Operation Enterprises with their Authorization, and List of Off-road Motorcycle Producing Enterprises with Export Qualifications
and Export Operation Enterprises with their Authorization of 2006.

Ministry of Commerce

National Development and Reform Commission

General Administration of the Customs

General Administration of Quality Supervision, Inspection and Quarantine

Certification and Accreditation Administration

Feb 28, 2006

Ministry of Commerce, National Development and Reform Commission, General Administration of the Customs, General Administration
of Quality Supervision, Inspection and Quarantine, and Certification and Accreditation Administration
2006-02-28

MEASURES FOR APPLICATION FOR THE USE OF SECURITIES INVESTOR PROTECTION FUNDS (FOR TRIAL IMPLEMENTATION)

Circular of The China Securities Regulatory Commission on Printing and Distributing the Measures for Application for the Use of Securities
Investor Protection Funds (for Trial Operating)

Zheng Jian Fa [2006] No. 20

The branch offices of the China Securities Regulatory Commission in all provinces, autonomous regions, municipalities directly under
the Central Government, the cities specifically designated in the state plan, and the Commissioner’s Offices in Shanghai and Shenzhen,

In order to regulate the applications for the use of securities investor protection funds, guarantee the lawful use and the security
of the securities investor protection funds, the Measures for Application for the Use of Securities Investor Protection Funds (for
Trial Implementation) are hereby printed and distributed to you for implementation.

The China Securities Regulatory Commission

March 7, 2006

Measures for Application for the Use of Securities Investor Protection Funds (for Trial Implementation)
Chapter I General Provisions

Article 1

These Measures have been set down in accordance with the Measures for the Management of Securities Investor Protection Funds, the
Advice on the Purchase of the Personal Credits and the Settlement Funds of Clients’ Securities, the Measures for the Operating of
the Purchase of the Personal Credits and the Settlement Funds of Clients’ Securities, and the Circular on Relevant Issues Concerning
the Purchase of the Personal Credits and the Settlement Funds of Clients’ Securities, etc. in order to regulate the applications
extending, and use of the securities investor protection funds (hereafter referred to as “protection funds” for short).

Article 2

The securities companies which have been commanded by the China Securities Regulatory Commission (hereafter referred to as the CSRC)
to stop their business operations for rectification or have been appointed to any other organization for custody or which have been
taken over or abrogated (hereafter referred to as “securities companies under disposition” for short) shall be subject to these Measures
when they apply for utilizing their protection funds to purchase the personal credits or the settlement funds of their clients’ securities
in accordance with the relevant state policies.

Article 3

The institution that takes charge of operating the legal person duties and functions of a securities company under disposition in
accordance with the relevant provisions (hereafter referred to as “custodian settlement institutions”) shall take charge of filing
applications for utilizing the protection funds, and shall borrow and utilize the protection funds in accordance with the legal provisions.

The China Securities Investor Protection Funds, Co., Ltd. (hereafter “CSIPF”) shall exercise the duties and functions of releasing
and managing the protection funds.

CSRC and the institutions empowered thereby shall take charge of checking and monitoring the applications and use of protection funds.

Article 4

The principles of “use for certain purposes, management under certain accounts, and closed operations” shall be followed in the applications
for, grant and use of protection funds, and it is forbidden severely to use any of the protection funds for any other purpose.

Chapter II Application for Protection Funds

Article 5

CSIPF shall sign a “Loan Agreement on Securities Investor Protection Fund” with the custodian settlement institutions and the institutions
authorized by the CSRC in accordance with the sanctified risk disposition schemes of the securities companies and the protection
fund use schemes in order to elucidate the quotas, purposes of use, processes, etc. for the use of the protection funds as well as
the obligations and functions of the parties involved.

Article 6

The custodian settlement institutions or the groups of the relevant local government for discerning the personal credits shall make
differentiations and recognitions of the settlement funds of the clients’ securities and the personal credits in accordance with
the standards and procedures as provided for in the relevant policies of the state, and shall take the responsibility for the authenticity,
precision, and lawfulness of their differentiations and recognitions.

Custodian settlement institutions shall apply for utilizing protection funds once and for all or many times in accordance with the
certain situation and the real demand of differentiation and recognition.

Article 7

To apply for purchasing the personal credit with protection funds, the custodian settlement institution shall put forward an application
to the institution authorized by the CSRC. The application materials shall be prepared in duplicate, which shall include the following
contents:

(1)

an application report and a form of application (see Appendix I);

(2)

detailed ledgers of the personal credit which is requested to be purchased by the head office of the securities company under disposition
as well the branches thereof, which have been collected together, discerned and recognized by the custodian settlement institution
(see Appendix II);

(3)

a particular audit report on the personal credits;

(4)

a verification report made by the differentiation group of the local government and the accompanying detailed ledgers as well as the
detailed materials, or a verification report made by the custodian settlement institution and the relevant detailed materials (the
part of personal credits constituted as a result of appropriating the securities of the personal clients of a normal broker);

(5)

an operating scheme for purchasing the personal credits; and

(6)

other materials as requested by the CSRC for submission.

Article 8

The purchasing funds that shall be paid by the local government shall have been actually paid in full amount, when a custodian settlement
institution applies for purchasing the personal credits with protection funds. The custodian settlement institution shall submit
it to the CSRC without postponing so that the CSRC could coordinate, if the purchasing funds of the local government cannot be actually
paid timely or in full amount. The custodian settlement institution may first purchase personal small-sum credits of less than 100,000
Yuan within the quota of funds to be implemented by the Central Government, and when the purchasing funds of the local government
are actually paid in full amount, it may then purchase the parts below 100,000 Yuan that has not been purchased as well as the large-sum
personal credits of over 100,000 Yuan.

Article 9

To apply for purchasing the settlement funds of the clients’ securities with protection funds, a custodian settlement institution
shall put forward an application to the institution authorized by the CSRC. The application materials shall be prepared in duplicate,
which shall include the contents as follows:

(1)

an application report and a form of application (see Appendix III);

(2)

the details of the settlement funds of the clients’ securities of the head office of the securities company under disposition as well
the branches thereof, which have been discerned and recognized by the custodian settlement institution (including a CD involving
the detailed relative information of the accounts);

(3)

a particular audit report on the settlement funds of the clients’ securities;

(4)

a verification report on packing up the accounts;

(5)

an operating scheme for offsetting the gap in the settlement funds of the clients’ securities; and

(6)

other materials as requested by the CSRC for submission.

Article 10

In case a custodian settlement institution put forward applications by several times for utilizing the protection funds and when
it put forward application for a second time, it is not requested to present again the materials which are the same as those that
have been already presented , provided that it has to give an account of the use of the protection funds for which it has put forward
an application.

Article 11

The institution authorized by the CSRC shall examine the application materials put forward for utilizing the protection funds to
purchase the personal credits and the settlement funds of the clients’ securities, and shall release clear examination opinions.
The examination materials in which the institution authorized by the CSRC approves to give protection funds shall cover the following
contents:

(1)

opinions of examination;

(2)

a Form of examination of Applications for Utilizing Protection Funds (Form of Examination of Applications for Purchasing the Personal
credits with Protection Funds (see Appendix IV) or Form of Examination of Applications for Purchasing the Settlement Funds of Client’s
Securities with Protection Funds (see Appendix V)); and

(3)

the Detailed Ledgers of the Personal Credits (see Appendix II) or Detailed Ledgers of the Gaps in the Settlement Funds of Clients’
Securities (see Appendix VI) as recognized upon examination.

Article 12

After the institution authorized by the CSRC has inspected and sanctified an application for utilizing protection funds of the custodian
settlement institution, it shall release to the custodian settlement institution a document of approval on giving the protection
fund, which shall be offered to the CSIPF together with the examination materials and the application materials put forward by the
custodian settlement institution.

Article 13

Where a securities company under disposition fails to safeguard the on-the-counter payment of its clients for its normal brokering
businesses because of its lack of adequate funds so that panic bank withdrawal may occur, the custodian settlement institution may
put forward an application to the institution authorized by the CSRC for utilizing the emergency aid fund within the sanctified quota
for utilizing protection funds, and shall simultaneously present a scheme for utilizing the emergency aid fund in order to make clear
the procedures for checking the allocation of emergency aid funds and the clients’ withdrawal of money.

Article 14

The institution authorized by the CSRC shall direct an examination to the scheme of utilizing the emergency aid fund, fill in an
Examination Form of Utilizing Emergency Aid Fund (see Appendix VII), and specify its examination opinions. Where it approves to grant
the emergency aid fund, it shall offer in duplicate to the CSRC its examination opinions, Form of Examination together with the scheme
of utilizing the emergency aid fund as proposed by the custodian settlement institution.

Article 15

If the CSRC agrees to grant the emergency aid fund, it shall release a document of approval to the custodian settlement institution,
and shall send it to the CSIPF together with the examination opinions of its authorized institution, the Form of Examination, as
well as the scheme of utilizing the emergency aid fund which has been proposed by the custodian settlement institution.

Article 16

After receiving the document of approval as released by the CSRC or its authorized institution to offer the protection fund as well
as the relevant materials forwarded thereby, the CSIPF shall grant the protection fund in accordance with these Measures and other
related provisions.

Chapter III Extending of the Protection Fund

Article 17

In accordance with the operational rules of the People’s Bank of China with regard to the reloaning of securities investor protection
funds, the CSIPF shall open a particular account for “deposit of securities investor protection funds” with the Business Department
of the People’s Bank of China in order to check and calculate the reloans extended by the People’s Bank of China for the risk disposition
of the securities company.

Article 18

In case the CSIPF grants to the custodian settlement institution any protection fund so as to purchase the personal credits and the
settlement funds of clients’ securities, it shall sign a loan agreement with the custodian settlement institution and the institution
authorized by the CSRC and shall appoint a commercial bank (hereafter referred to as an “entrusted bank”) to extend the loan on its
behalf.

Article 19

The CSIPF shall open a particular account of protection fund deposit with the entrusted bank so as to check and calculate the protection
funds as granted to the custodian settlement institution, and shall conclude with the head office of the entrusted bank an “Agreement
on the Management of the Particular Settlement Account of Securities Investor Protection Funds”.

Article 20

The CSIPF shall, when handling the formalities of transferring the reloan funds it borrows, send to the Business Department of the
People’s Bank of China an instruction for allocation attached with the seal of its own of which it has left a specimen therewith,
and shall fill in a “Letter for Consulting Allocated Securities Investor Protection Funds”.

Article 21

If the custodian settlement institution utilizes the protection fund to purchase the personal credits and the settlement funds of
clients’ securities, it shall open a deposit account for the protection fund with the entrusted bank upon the strength of the document
of the CSRC or any other department in charge on agreeing the establishment of the custodian settlement institution in order to check
and calculate the protection funds, and shall report its opening of bank accounts to the institution authorized by the CSRC, the
branch organization of the People’s Bank of China in the locality, and the CSIPF for archival purpose.

Article 22

The CSIPF shall, in accordance with the provisions of the loan agreement, allocate the loans once and for all or by installments
to the protection fund deposit account of the custodian settlement institution at the entrusted bank.

When extending protection funds for purchasing the personal credits and the settlement funds of clients’ securities, the CSIPF shall
present the entrusted bank its allocation instruction which has been attached with the seal of which it has left a specimen therewith,
and shall present the entrusted bank the detailed ledgers of the personal credits which have been checked and verified by the institution
authorized by the CSRC.

Article 23

The principle of “purchasing a batch after verifying a batch” shall be followed in the purchase of the personal credits. The custodian
settlement institution shall open a protection fund deposit account with each of the branches of the entrusted bank in all the places
where the purchase of the personal credits is implemented for the sole purpose of purchasing the personal credits, and shall report
its opening of accounts to the institution authorized by the CSRC, the branch organization of the People’s Bank of China, and the
CSIPF for archival filing.

Article 24

When implementing the allocation of protection funds for purchasing the personal credits, the custodian settlement institution shall
release a circular of allocating funds for purchasing the personal credits upon the strength of the checklist of the personal credits
of all places that need to be purchased, and shall present all of them to the branch or sub-branch of the entrusted bank.

Article 25

The branch or sub-branch of the entrusted bank shall extend the purchase funds to the certain creditors in accordance with the relevant
provisions after examining the purchase checklist of the personal credits against the detailed ledgers of the personal credits as
offered by the CSIPF.

Article 26

A creditor or the agent thereof shall gain its purchase money at the appointed business place of the entrusted bank in accordance
with the relevant provisions upon the strength of its valid identity certificate and the Letter of Verification of _____ Securities
Company for Purchasing the Personal credit as released by the differentiation and verification group of the local government.

The branch or sub-branch of the entrusted bank shall recede the Letter of Verification of _____ Securities Company for Purchasing
the personal credit which the personal creditor holds after paying the purchase money.

Article 27

To purchase the credit of a personal formed because of the misappropriation of the securities of the normal broker-clients, the custodian
settlement institution may pay the purchase money directly to the China Securities Registration & Settlement Company if it considers
it appropriate. The purchase money giving circular released by the custodian settlement institution shall have gone through the examination
of the institution authorized by the CSRC.

Article 28

In case the custodian settlement institution utilizes the protection fund to purchase the settlement funds of clients’ securities,
it shall do so simultaneously when it deposits the settlement funds of the clients’ securities in a third party.

When conducting the formalities for giving money for the gap in the settlement funds of clients’ securities, the custodian settlement
institution shall release a circular on giving money for offsetting the gap in the settlement funds of clients’ securities, and shall
offer it to the entrusted bank after succeeding in the examination and getting the approval of the institution authorized by the
CSRC.

The entrusted bank shall allocate funds to the deposit account of a third party upon the strength of the “Circular on Giving Money
for Offsetting the Gap in the Settlement Funds of Clients’ Securities”.

Article 29

To offset the overdrafts of the securities company under disposition in the normal brokering business settlements of the China Securities
Registration & Settlement Company with protection funds, the custodian settlement institution shall release a “Circular on Allocating
Money for Offsetting the Gap in the Settlement Funds of Clients’ Securities”, and then after getting the approval of the institution
authorized by the CSRC, offer to the CSIPF, who shall allocate the fund directly to the bank account appointed by the custodian settlement
institution in China Securities Registration & Settlement Company.

Article 30

The emergency aid fund which the custodian settlement institution put forward an application for shall only be utilized for paying
for the client’s on-the-counter drawing of money in the normal brokering business and other purposes as specified by the relevant
state policies.

When distributing any emergency aid fund out of its protection fund deposit account, the custodian settlement institution shall release
a circular on distributing emergency aid funds, and then present it to the entrusted bank after getting the approval of the institution
authorized by the CSRC. The entrusted bank shall allocate the funds upon the strength of the “Circular on Allocating Emergency Aid
Funds” which has succeeded in the examination and acquired the consent of the institution authorized by the CSRC.

Article 31

A custodian settlement institution shall borrow protection funds from the CSIPF, the interest rate of which shall be 165 basic points
more favorable than the one-year fluid reloan interest rate as provided for by the People’s Bank of China.

If a custodian settlement institution borrows any protection fund, the deposit interests of the deposits in the protection fund deposit
account which it opens shall be utilized to repay the due loan interests of CSIPF.

Article 32

After purchasing the personal credits and the settlement funds of clients’ securities with the protection funds, the custodian settlement
institution shall transfer the interests thereof as well as the remaining funds back to the protection fund deposit account which
the CSIPF has set up in the entrusted bank, and shall adjust the corresponding amount of loan.

The custodian settlement institution shall write off its protection fund deposit account in time, and shall present its written-off
account to the institution authorized by the CSRC, the branch or sub-branch of the People’s Bank of China in the locality, and the
CSIPF for archival purpose.

Chapter IV Supervision and Management

Article 33

The CSRC and the institutions authorized thereby shall take charge of checking and consenting the application materials put forward
by the custodian settlement institutions for utilizing protection funds, monitoring over the lawfulness of the custodian settlement
institutions’ use of protection funds, and for monitoring, regulating, coordinating, and directing the differentiation, verification,
and purchase of the personal credits and the settlement funds of clients’ securities.

Article 34

The CSIPF shall set up and improve its inner management, supervision and control mechanisms, implement supervision, management and
examination to the applications, grant, and utilization of the protection funds in accordance with the related provisions, and shall
report to the related departments on the grant and use of the protection funds in accordance with the related provisions.

Article 35

The CSIPF may entrust intermediary institutions with appropriate qualifications to implement particular audits to the custodian settlement
institutions’ use of protection funds, and the related entities and personal under audit shall assist and cooperate.

Article 36

After purchasing the personal credits and the settlement funds of clients’ securities with protection funds, a custodian settlement
institution shall help the CSIPF to pass the credit transfer and registration formalities.

The CSIPF, which has acquired the corresponding right to repayment in accordance with law, has the right to join the liquidation or
restructuring of the securities company under disposition.

Article 37

If the CSIPF finds any of the following situations that may influence the safety of the protection fund, it shall report it to the
CSRC, and the CSRC or the institution authorized thereby shall command the custodian settlement institution to make corrections within
a time limit. In case the custodian settlement institution cannot make corrections in good time, the CSIPF shall have the right to
stop the allocation of fund or require the entrusted bank to stop the allocation of fund:

(1)

In case the differentiation or verification of the personal credits or the settlement funds of clients’ securities cannot satisfy
the related policies of the state;

(2)

In case there is anything untrue in the protection fund application materials;

(3)

In case the use of the protection fund cannot satisfy the related policies of the state;

(4)

Any other circumstances under which the safety of the protection fund may be influenced.

Article 38

A custodian settlement institution shall employ an accounting firm as recognized by the CSIPF to implement particular audits to the
personal credits and the settlement funds of clients’ securities, and shall do well in registering and purchasing the personal credits
as well as the differentiation, verification, and purchase of the settlement funds of clients’ securities in accordance with the
dictated standards and procedures in order to guarantee that the applications and use of the protection fund satisfy the related
state policies.

Article 39

After utilizing any emergency aid fund, a custodian settlement institution shall offer the related materials to the institution authorized
by the CSRC in a timely manner, and then report it to the CSIPF after acquiring the recognition of the institution authorized by
the CSRC. The materials it shall offer shall include but are not limited to:

(1)

a report on utilizing the emergency aid fund; and

(2)

a detailed account of the settlement funds of clients’ securities involved in the emergency aid fund (including a CD containing the
concrete information of the accounts).

Article 40

In case a custodian settlement institution applies for utilizing any protection fund, it shall present regular reports to the CSIPF
about the assets and liabilities of the securities company under disposition as of the day when the disposition begins, the progress
of the custodian settlement, the differentiation and verification of the personal credits and the settlement funds of clients’ securities,
as well as any other materials as requested by the CSIPF for submission.

Article 41

After receiving the protection funds, a custodian settlement institution shall make regular reports as requested to the institution
authorized by the CSRC and the CSIPF about the progress in the grant and use the protection funds, and shall report, on the quarterly
basis, to the branch organization of the People’s Bank of China at the locality where the legal person securities company under disposition
about the use of the protection funds and the disposition of risks.

In case any grave problem happens in the grant or use of protection funds, the custodian settlement institution shall report it to
the institution authorized by the CSRC and the CSIPF in time.

Article 42

After purchasing the personal credits and the settlement funds of clients’ securities with protection funds, a custodian settlement
institution shall collect in a timely manner the related information about the use of protection funds and the disposition of risks,
and shall report to the CSRC and the institution authorized thereby and the CSIPF.

Article 43

The custodian settlement institutions and the entrusted banks shall set up accounting ledgers for protection funds, registering in
detail the allocation and use of protection funds, and maintain appropriately the vouchers for the receipt and designation of protection
funds, the bills of honor, and other related original vouchers, in order to guarantee the completeness of the original archival files.

Article 44

When executing its duties in allocating protection funds, a custodian settlement institution shall strictly comply with these Measures
and the relevant state policies concerning purchase, and carefully check the relevant materials, in order to guarantee that the no
error persists in the relevant materials and the basis in the course of granting protection funds.

The entrusted bank shall compose regular reports to the CSIPF about the extending and use of protection funds, and shall bear legal
liabilities for the entrusted matters.

Article 45

The parties involved shall strictly carry out the related policies and rules of the state in order to guarantee the lawful use and
safety of the protection funds. The violations of law or rule, if any, such as misappropriating, seizing or acquiring protection
funds by fraudulent means, etc., shall be cracked down, and the relevant personnel who are guilty of dereliction of duty shall be
subjected to legal liabilities in accordance with law. If any crime is formed, the offenders shall be transferred to the judicial
organ for punishment.

Chapter V Supplementary Provisions

Article 46

If any of the protection funds is utilized for any other purpose upon consent, the methods for the application thereof shall be separately
set down.

Article 47

If any securities company under disposition in which the local government or any other department plays a leading role needs to apply
for utilizing any protection fund, these Measures shall be applied by analogy in terms of the duties and responsibilities of the
parties involved and the processes of work.

Article 48

The term “institution authorized by the CSRC” as mentioned in these Measures means a department or entity which is authorized by
the CSRC to monitor and examine the custodian settlement institutions’ application for and use of protection funds.

Article 49

The CSRC is responsible for interpreting these Measures.

Article 50

These Measures shall be implemented as of the date of promulgation.

Appendixes:

Form of Application for Purchasing the Personal Credits with Protection Funds; (Omitted)

Detailed Ledgers of the Personal credits (Omitted)

Application Form for Purchasing the Settlement Funds of Clients’ Securities with Protection Funds (Omitted)

Form of Examination of Applications for Purchasing the Personal credits with Protection Funds (Omitted)

Form of Examination of Applications for Purchasing the Settlement Funds of Client’s Securities with Protection Funds (Omitted)

Detailed Ledgers of the Gaps in the Settlement Funds of Clients’ Securities (Omitted)

Form of Examination of Applications for Utilizing Emergency Aid Funds (Omitted)

The China Securities Regulatory Commission
2006-03-07

RULES FOR THE PRICING ACTIVITIES OF THE GOVERNMENTS

Order of the National Development and Reform Commission of People’s Republic of China

No. 44

In accordance with the Price Law of the People’s Republic of China, we have amended the Rules for the Pricing Activities of the Governments
(for Trial Implementation). The amended Rules for the Pricing Activities of the Governments, which have been adopted upon deliberation
at the director’s executive meeting of the National Development and Reform Commission, are hereby promulgated and shall go into effect
as of May 1, 2006.

Attachment: Rules for the Pricing Activities of the Governments

Ma Kai, Director of the National Development and Reform Commission

March 17, 2006

Rules for the Pricing Activities of the Governments

Article 1

With a view to regulating the pricing activities of the governments, making the pricing activities of the governments more scientific,
impartial and transparent, and protecting the legitimate rights and interests of consumers and business operators, the present rules
are formulated according to the Price Law of the People’s Republic of China.

Article 2

Where the competent departments of pricing or other relevant departments of the people’s governments at or above the provincial level
or the people’s governments at the municipal or county level as authorized by the provincial people’s governments (hereinafter referred
to as the pricing organs) set or adjust, according to law, the prices of goods and services subject to government-guidance prices
or government-set prices (hereinafter referred to as pricing activities), such activities shall be subject to the present rules.

Where it is prescribed otherwise by any law or regulation, such law or regulation shall prevail.

Article 3

The state shall implement and gradually improve the market-based prices and mechanism under the regulation and control of the macro
economy. The government pricing scope shall be determined according to Article 18 of the Price Law, and shall in practice base on
the central and regional pricing catalogues, which shall be adjusted at an appropriate time according to the social and economic
development and shall be publicized to the general public in a timely manner.

The pricing activities of the governments at the municipal or county level, which have been authorized by the corresponding provincial
governments, shall be put under the charge of their inferior affiliated competent departments of pricing.

The pricing organs shall set prices in light of their legitimate authorities, and shall not overstep their respective powers in any
pricing activity.

Article 4

The principles of fairness, openness, impartiality and efficiency shall be abided by in the pricing activities.

Article 5

The pricing activities shall accord with the social average cost of relevant goods or services, the market situation of their demand
and supply, the requirements for national economy and social development as well as social bearing capability. Where the price of
any good or service is closely related to its counterpart in the international market, the international price shall be referred
to.

The competent pricing department of the State Council and its counterparts of the provincial people’s governments may, in light of
different industrial features, determine the concrete principles of and measures for pricing.

Article 6

The pricing organs shall set prices at a proper time in pursuance of the situations of economic and social development as well as
the feedbacks from all social aspects.

Article 7

When setting prices, the pricing organs s shall, according to law, go through such procedures as investigation into prices (costs),
solicitation for social opinions, collective deliberation, decision on pricing, announcement and etc.

Where the cost supervisions and inspections, expert argumentations and price hearings are required by law, they shall be carried out
according to the relevant provisions.

Article 8

Consumers, business operators and other parties concerned (hereinafter referred to as the advisors) may bring forward suggestion
on pricing to the relevant pricing organs.

Article 9

The pricing organs may, when setting prices, require the relevant business operators and industrial organizations to provide the
relevant materials as required for the pricing.

Article 10

When setting prices, the pricing organs shall carry out an investigation into the situations of market supply and demand as well
as the social bearing capability, and make an analysis on the impacts on relevant industries and consumers.

Article 11

The pricing organs shall, when setting prices, carry out an investigation into the prices and costs.

Where any cost supervision and inspection is required according to law, it shall be implemented according to the relevant provisions
thereon.

Article 12

When setting prices for highly professional and technical commodities or services, the pricing organs shall employ the relevant experts
to hold an argumentation.

Article 13

If a hearing is required according to law when the pricing organs set any price, the competent pricing department of the government
shall hold the hearing and solicit for the opinions of consumers, business operators and other parties concerned. The concrete contents
of the hearing shall be subject to the relevant provisions on pricing hearings.

Where a hearing is not required by law, the pricing organs may solicit for the opinions of consumers, business operators and other
parties concerned by holding a symposium, in written form or via the Internet.

Article 14

The pricing organs shall, after fulfilling the procedures as prescribed in Articles 10 through 13 of the present rules, formulate
a pricing scheme that shall include the following contents:

(1)

The current price, the proposed price as well as the adjustment level per unit;

(2)

The basis and reasons for pricing;

(3)

Where any cost supervision and inspection is carried out, a report on cost supervision and inspection shall be attached;

(4)

The impact thereof on the relevant industries and consumers after a price is set;

(5)

Where an argumentation of experts is held, the Summary of Experts’ Argumentation Opinions shall be attached;

(6)

The opinions of consumers, business operators and the relevant parties concerned;

(7)

Where a hearing is held, the Summary of the Hearing shall be attached; and

(8)

The implementing time and scope of the price.

Article 15

The collective deliberation system shall be adopted in principle for formulating pricing schemes. The collective deliberation may
be held in the form of deliberation by the price deliberation committee or deliberation by the executive meeting.

The form of collective deliberation, composition of personnel and working rules shall be formulated by the pricing organs at or above
the provincial level.

Article 16

Where the competent pricing departments of the State Council or other departments set the price of any important commodity or service,
it shall, according to the relevant provisions, be reported to the State Council for approval.

Article 17

If the pricing organ is an industrial competent department, it shall solicit for the opinions of the competent pricing departments
at the same level in written form before any decision is made.

Article 18

Where the relevant pricing is deemed as necessary after a pricing plan has been collectively deliberated, the pricing organ shall,
at a proper time, make a decision on pricing, which shall include the following contents:

(1)

The items subject to pricing and the proposed price;

(2)

The basis for pricing;

(3)

The time and scope for implementing the price; and

(4)

The name of the pricing organ that has made the decision as well as the day when the decision is made.

The Decision on Pricing shall be affixed with the seal of the pricing organ that has made the decision on pricing.

Article 19

Apart form that any state secret is involved, after a decision on pricing is made, the pricing organ that has made the decision shall
publicize it to the general public via the media such as the designated newspapers and websites.

Article 20

The pricing organs shall establish and improve the internal supervision and restriction mechanism for pricing.

The competent pricing department at a higher level shall take charge of the supervision over the pricing activities of its inferior
competent pricing departments.

Any pricing activity conducted by the competent industrial department shall be subject to the supervision of the competent pricing
departments at the same level.

Article 21

If any advisor is involved in a pricing activity, the pricing organs shall, in a proper way, inform the advisor of the treatment
on his advice.

Article 22

After a decision on pricing is implemented, the pricing organ shall conduct follow-up investigation and supervision on the implementation
of the pricing decision, which shall include the following contents:

(1)

The implementation of the price and the existing problems thereabout;

(2)

The impact on the price as incurred from the business operation, costs, labor productivity and the fluctuation of the market situations
of supply and demand;

(3)

The market situations of supply and demand of the relevant goods or services as well as the price fluctuation; and

(4)

The opinions from all social aspects on the price as set.

Article 23

Where the pricing organ has any law-breaking act, the competent pricing department of the government shall carry out the corresponding
investigation and punishment according to the Price Law.

Article 24

Where any functionary of the pricing organs has any law-breaking act during the pricing activities and thus 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 an administrative
sanction according to law.

Article 25

The pricing organs shall, in accordance with the administrative rules for archival filing, establish pricing files and put them on
records.

Article 26

The competent pricing department of a province, autonomous region, or municipality directly under the Central Government may, according
to the present rules and in combination of the local situation, formulate the detailed implementation rules.

Article 27

The power to interpret the present rules shall remain with the National Development and Reform Commission.

Article 28

The present rules shall go into effect as of May 1, 2006. The Rules for the Pricing Activities of the Governments (for Trial Implementation)
as promulgated by the National Development and Reform Commission on December 16, 2001 shall be abolished simultaneously.

National Development and Reform Commission
2006-03-17

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German Laws

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

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

CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING THE COMPETENT DEPARTMENTS OF COMMERCE AT PROVINCIAL LEVEL TO EXAMINE AND ADMINISTRATE THE FOREIGN-FUNDED DESIGNING ENTERPRISES FOR CONSTRUCTION PROJECTS

NOTICE OF THE MINISTRY OF FINANCE ON PRINTING AND DISTRIBUTING THE RULES FOR THE BID INVITATION OF ACCOUNTING FIRMS FOR THE AUDIT ENTRUSTMENT

LETTER OF CHINA BANKING REGULATORY COMMISSION CONCERNING APPROVING THE CHINA-BASED BRANCHES OF DBS BANK (HONG KONG) LIMITED TO LAUNCH OUT ON-LINE BANKING BUSINESS

ACCOUNTING STANDARD FOR BUSINESS ENTERPRISES NO. 9 – EMPLOYEE COMPENSATION

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 24 – HEDGING

REPLY OF THE STATE ADMINISTRATION OF TAXATION FOR DEAL WITH THE ISSUES CONCERNING THE INCOMES TAX FROM THE DEMOLISHMENT OF BUSINESS USE HOUSES BY FOREIGN-FUNDED ENTERPRISES

LETTER OF THE CHINA BANKING REGULATORY COMMISSION ON APPROVING THE BANK OF INDIA TO SET UP THE BEIJING REPRESENTATIVE OFFICE

MOFCOM, NDRC, GAC, GAQSIQ AND CAA OF THE PEOPLE’S REPUBLIC OF CHINA ANNOUNCEMENT NO.14, 2006

MEASURES FOR APPLICATION FOR THE USE OF SECURITIES INVESTOR PROTECTION FUNDS (FOR TRIAL IMPLEMENTATION)

RULES FOR THE PRICING ACTIVITIES OF THE GOVERNMENTS

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7