CIRCULAR OF THE MINISTRY OF FINANCE ON DISTRIBUTING THE INTERIM MEASURES FOR ACCOUNTING PROCESS OF TAKING UP BUSINESSES RELATED TO FINANCING OF RECEIVABLE CREDITOR’S RIGHTS BETWEEN ENTERPRISES AND FINANCIAL ORGANIZATIONS LIKE BANKS

The Ministry of Finance

Circular of the Ministry of Finance on Distributing the Interim Measures for Accounting Process of Taking up Businesses Related to
Financing of Receivable Creditor’s Rights between Enterprises and Financial Organizations like Banks

CaiKuai [2003] No. 14

May 15, 2003

Financial Offices (Bureaus) of Provinces, autonomous regions, municipalities directly under the Central Government and municipalities
separately listed on the State plan, relevant ministries and commissions of the State Council and relevant enterprises:

In order to regulate the accounting process of financing businesses between enterprises and financial organizations like banks, Interim
Measures for Accounting Process of Taking up Businesses Related to Financing of Receivable Creditor’s Rights between Enterprises
and Financial Organizations like Banks has been printed and now is distributed to you. Please do comply with it. Please feed back
the problems presented in the implementation to the Ministry of Finance as soon as possible.

Attachment: Interim Measures for Accounting Process of Taking up Businesses Related to Financing of Receivable Creditor’s Rights between
Enterprises and Financial Organizations like Banks is enclosed Attachment:Interim Measures for Accounting Process of Taking up Businesses Related to Financing of Receivable Creditor’s Rights between Enterprises
and Financial Organizations like Banks

To regulate the accounting process of financial businesses between enterprises and financial organizations like banks, provisions
on accounting process of associated businesses are enacted herein:

The accounting principles of financing of receivable creditor’s rights

Enterprises sell to financial organizations like banks receivable creditor’s rights generating from sale contracts for providing services.
The principle that quality overweighs form should be taken into account for accounting, the economic nature of business being fully
considered. The selling of receivable creditor’s rights is valid and related profit and loss must be confirmed when there is clear-cut
evidence seeing associated dealing actually meets the requirements of confirming sale. For instance, when the risk and payment related
to receivable creditor’s rights in effect has been transferred. Otherwise, it should be regarded as the loan with a pledge of receivable
creditor’s rights and correspondent accounting treatment should be complied with.

II.

Accounting treatments of the loan with a pledge of receivable creditor’s rights

If enterprises give banks receivable creditor’s rights generating from sale contracts for providing services as a pledge for the loan,
the risk and payment associated with receivable creditor’s rights are not transferred. Under this circumstance, it is still the enterprise
that owns receivable creditor’s rights and it is responsible for gathering payment from customers and bears the possible risks of
receivable creditor’s rights. Meanwhile, the enterprise should regularly pay the loan as well as its interest back to the financial
organizations like banks.

When the loan is obtained with a pledge of receivable creditor’s rights, the enterprise should debit the received payment against
the item of bank account, the actually paying commission charge against the item of financial expense and credit the principles and
interest to items of short-term loan etc.

When receiving the payment from customers, the enterprise should debit the payment against the items such as cash and bank account
and credit to the item of receivable account.

As for the interest of loan generating in the enterprise and the accounting treatments of the principles and interest of the loan
paid by the enterprise to financial organizations like banks, the associated regulations of loan in Enterprise Accounting System
should be complied with.

Since the above-mentioned risk and payment related to receivable creditor’s rights as a pledge do not change substantially, the enterprise
should consider the situation of the debtor and reasonably withdraw bad debt reserves of receivable creditor’s rights as the pledge
in accordance with the provisions in Enterprise Accounting System. The selling withdrawal, selling discount and bad debt associated
with receivable creditor’s rights as the pledge should be dealt with in accordance with the provisions in Enterprise Accounting System.

The enterprise should have record books for future reference. All the issues such as account value, pledge term and payment of receivable
creditor’s rights as the pledge should be particularly recorded.

III.

Accounting treatment related to the selling of receivable creditor’s rights.

(I)

Accounting treatments concerning the selling of receivable creditor’s rights un-attached right of recourse

Enterprises sell to financial organizations like banks receivable creditor’s rights generating from sale contracts for providing services.
If no right of recourse is validly mentioned in the contract signed between the enterprises, debtors and banks, that is to say, financial
organizations are not enpost_titled to seek for compensation from the enterprise that sold receivable creditor’s rights when the withdrawal
of the creditor’s receivables cannot be fulfilled at term, the risk in the selling of receivable creditor’s rights is totally undertaken
by financial organizations like banks. Under that circumstance, the accounting treatment should comply with the following provisions.

An enterprise should, in accordance with the contract signed between the enterprise and a financial organization like bank, debit
the received amount against the item of bank account, the predicted sum of selling withdrawal and selling discount (including cash
discount, the same below) presented in the contract against the item of other account receivables, the withdrawn bad debt reserve
of receivable creditor’s rights against the item of bad debt reserve, the amount of related due commission charge against the item
of financial expense, and credit the account value of selling receivable creditor’s rights to the item of account receivables while
debit the balance against the item of extra expense—the financing loss of receivable creditor’s rights or credit the item of extra
income—the financial proceeds of receivable creditor’s rights.

When the practically-generating selling withdrawal and selling discount associated with the selling of receivable creditor’s rights
equals to the amount that have been booked in the item of other receivables, the enterprise should debit the practical amounts of
selling withdrawal and selling discount against the items such as major business income (cash discount should be debit against the
item of financial expense, the same below), value-added tax which can be reduces or charged against the item of paying tax—paying
value-added tax (sale tax ) and credit the predicted selling withdrawal and selling discount associated with the sold creditor’s
rights of receivables that have been booked in the item of other account receivables to the item of other receivables. If there is
balance between the amounts of selling withdrawal and selling discount that practically generated and are related to receivable creditor’s
rights as well as the amounts booked in the item of other account receivables, the accounting treatments should be adopted in accordance
with the above provisions. What’s more, the amounts of selling withdrawal and selling discount paid to the financial organizations
like banks as the counterbalance should be booked in the items such as other account receivables or bank account and the amounts
of selling withdrawal and selling discount obtained from the financial organizations like banks should be booked in the items like
other account receivables or bank account.

The provisions in Enterprise Accounting System and other related rules of accounting should be complied with when the above selling
withdrawal and selling discount of the enterprise belong to the future item in balance sheet.

(II)

Accounting treatments related to the selling of receivable creditor’s rights attached right of recourse

If right of recourse is validly mentioned in the selling process of receivable creditor’s rights, that is, financial organizations
have the right to seek for compensation from the enterprise that sold receivable creditor’s rights or the enterprise is obliged to
buy back from the financial organizations like banks a portion of receivable creditor’s rights at an agreed price in accordance with
the agreement when the withdrawal of the creditor’s receivables cannot be fulfilled at term, the risk in the selling of receivable
creditor’s rights is totally undertaken by the enterprise that sold receivable creditor’s rights. Under that circumstance, the accounting
treatment about the loan obtained with the pledge of receivable creditor’s rights in the provision should be complied with.

IV.

Accounting treatments on discount of receivable creditor’s rights

According to the agreement signed between an enterprise and a financial organization like a bank, if the discount of receivable creditor’s
rights is actually in effect, its accounting treatment should comply with the relevant provisions on the discount of notes receivable
in Enterprise Accounting System.

The exposure of the selling and financing businesses based on receivable creditor’s rights

An enterprise should expose the details of these businesses in the annotations of the accounting report forms if the above-mentioned
businesses such as selling business and financing business are based on receivable creditor’s rights. The details include:

(I)

The main contents of the selling and financing agreements signed between the enterprise and the financial organization like a bank.

(II)

The basic situations of receivable creditor’s rights concerning the selling and financing business, including amount, term, and distilled
bad debt reserve.

(III)

The details of the loan obtained with receivable creditor’s rights as the pledge, such as the amount of the loan, interest rate, term,
the account value of receivable creditor’s rights as the pledge and etc.

(IV)

The amounts of current net profit and loss influenced by the selling of receivable creditor’s rights

(V)

The account value, the received amounts after discount and the discount term of the discounted creditor’s rights of receivables.

The Ministry of Finance
2003-05-15

MEASURES FOR QUALIFICATION REGISTRATION OF GEOLOGICAL RECONNAISSANCE

The Ministry of State Land Resources

Notice of the Ministry of State Land Resources on Printing and Issuing Measures for Qualification Registration of Geological Reconnaissance

Guo Tu Zi Fa [2003] No.218

The ministries of state land resources of every province, autonomous region and municipality directly under the Central Government
(the ministry of state land environment resources, bureau of state land resources and housing, bureau of housing and land resources,
bureau of state land resources and planning):

In order to standardize the conditions for the access to geological reconnaissance market, to maintain the market order of geological
reconnaissance, to strengthen the supervision of the ability of the geological reconnaissance and to promote the development of geological
reconnaissance work, in accordance with regulations of the Mineral Resources Law of the People’s Republic of China and the Measures
for Registration Administration of the Reconnaissance Blocks of Mineral Resources, the ministry decided to set up registration system
and formulated Measures for Qualification Registration of Geological Reconnaissance, the measures are hereby printed and issued,
please carry out.

The Ministry of State Land Resources

June 24, 2003

Measures for Qualification Registration of Geological Reconnaissance

Article 1

In order to standardize the conditions for the access to geological reconnaissance market, to maintain the market order of geological
reconnaissance and to promote the development of geological reconnaissance work, the Measures are hereby formulated in accordance
with the Mineral Resources Law of the PRC and the Measures for Registration Administration of the Reconnaissance Blocks of Mineral
Resources.

Article 2

Registration shall go through in compliance with the Measure for obtaining the qualification certificates of geological reconnaissance
in case geological reconnaissance is undertaken in the territory and other sea jurisdiction of the PRC.

Article 3

The qualifications for geological reconnaissance are classified by nature of the professions of geological reconnaissance and the
registration should be kept according to the requirements of geological reconnaissance capability and level.

The professional classifications of the qualifications for geological reconnaissance and the conditions for registration are separately
promulgated.

Article 4

The Ministry of State Land Resources and the administrative departments of sate land resources of the people’s government of provinces,
autonomous regions and municipalities directly under the Central Government are the registration authorities of the qualifications
for geological reconnaissance.

The scope of functions of the Ministry of State Land Resources is as follows:

(I)

Registration of the qualifications for oceanic geological survey, oil and gas mineral reconnaissance, aviation physical geographical
reconnaissance, and aviation remote sensing geological reconnaissance;

(II)

Summarization, publication and provision of query services of information on registration of the qualifications for geological reconnaissance
of the whole country;

(III)

Supervision management on the registration of qualifications for geological reconnaissance by the administrative departments of sate
land resources of the people’s government of provinces, autonomous regions and municipalities directly under the Central Government
as well as the qualifications for geological reconnaissance of the whole country.

The scope of functions of the administrative departments of sate land resources of the people’s government of provinces, autonomous
regions and municipalities directly under the Central Government provinces, autonomous regions and municipalities directly under
the Central Government is as follows:

(I)

Registration of the qualifications for geological reconnaissance other than that specified in Item (I) of the above-mentioned clause
of this article;

(II)

Summarization, publication and provision of query services of information on registration of the qualifications for geological reconnaissance
in the corresponding administrative divisions;

(III)

Supervision management on the registration of qualifications for geological reconnaissance in the corresponding administrative divisions.

Article 5

The applicants for geological reconnaissance qualifications shall be enterprises or institutional unites directly engaged in the undertakings
of geological reconnaissance, which besides the requirements for a legal person shall meet the following conditions for the geological
reconnaissance qualifications.

Article 6

In applying for the geological reconnaissance qualifications, the applicant shall provide the registration authority with the following
materials:

(I)

Application for qualification registration of geological reconnaissance;

(II)

Documents or copy of the certification of the legal person;

(III)

Documents or copy of the positions of the legal representative and the responsible technological persons;

(IV)

Documents or copy of the certification of assets;

(V)

Name list of technicians and copies of the technical post_title and qualifications of senior and medium-level technicians;

(VI)

List of the main reconnaissance instruments and equipment;

(VII)

Other necessary materials required for submission by the registration authority.

In case of application for the qualification of oil and gas mineral reconnaissance, the documents or copy of the approval of the State
Council should be submitted for establishment of oil companies or consent of oil and gas mineral reconnaissance.

Article 7

Within 30 days upon receipt of the application for qualification registration of geological reconnaissance, the registration authority
shall check and verify the truthfulness of the application materials, and draw conclusions on whether or not the registration is
qualified in compliance with the requirements for the conditions of the geological reconnaissance qualifications, together with notices
given to the applicant.

If modification or supplementary materials are required from the applicant, the registration authority shall notify the applicant
of modification or supplementation within the term specified.

In case the registration conditions meet the requirements, the applicant shall within 30 days upon receipt of the notice handle with
the registration formalities and obtain the qualification certificates of geological reconnaissance and become the registered entity
eligible for geological reconnaissance, which can undertake the geological reconnaissance work by force of law within the registration
scope.

In case of failure to meet the registration requirements, the registration authority shall provide the applicant with the reasons
thereof.

Article 8

The qualifications of geological reconnaissance adopt the uniform inspection system at the intervals of inspection once two years
to be executed in December. And the uniform inspection work will be in the charge of the registration authority.

At the time of uniform inspection the registration holder shall carry the qualification certificate of geological reconnaissance (original
and duplicate) and fill in and submit the Uniform Inspection From of Geological Reconnaissance at the original registration authority
and accept the uniform inspection.

In qualified for the uniform inspection, the registration authority shall cover the special stamp on the qualification certificate
of geological reconnaissance (duplicate), and if not qualified, the registration authority shall proceed in compliance with the provisions
of Article 9 of the Measures.

In case of failure to accept the uniform inspection beyond the time schedule, the qualification certificate of geological reconnaissance
will automatically become invalid.

Article 9

in case of any of the following circumstances during the uniform inspection, the uniform inspection authority shall proceed as degrading
of the qualifications, and notify the inspected to handle with the formalities for alteration of the registration.

(I)

When the reconnaissance capabilities are lower than the requirements of the corresponding classifications;

(II)

Having not undertaken such classification of geological reconnaissance activities consecutively for two years;

(III)

Material negligence or violations of law in some type of reconnaissance works.

In case of any of the circumstances specified in Article 16 of the Measures, the registration authority will revoke the registration
qualifications and proceed according to Article 6 of the Measures.

Article 10

Eligible for the following conditions, the registration holder may apply for adding the business scope at the original registration
authority and verified in compliance with the requirements of the registration conditions, the original registration authority shall
notify the registration holder to handle with the formalities for alteration of the registration.

(I)

Expiry of two years of various reconnaissance works with qualified uniform inspections;

(II)

The working capacity for newly added reconnaissance work having reached the corresponding conditions and requirements of the added
business items; and

(III)

Free of material negligence or violations of law in various reconnaissance works.

Article 11

In any of the following cases, application should be made to the registration authority within 30 days for handling with the formalities
for alteration of the registration.

(I)

Consolidation, separation and renaming of the legal person;

(II)

Alteration of the domicile of legal person and the legal representative;

(III)

Addition or reduction of business classifications;

(IV)

Alteration required for by the laws, administrative regulations, rule and stipulations.

Article 12

In case of loss of the qualification certificates of geological reconnaissance (original and duplicate), announcement must be made
on the media designated by the Ministry of State Land Resources before application is made at the original registration authority
for handling with the formalities for repeated issuance of the certificates.

Article 13

The applicant shall provide the registration authority with true registration materials without any falsehood, and may not refuse
the inspection.

The registration authority should keep confidential the applicant’s materials relating to commercial secrets.

Article 14

The administrative departments of sate land resources of the people’s government of provinces, autonomous regions and municipalities
directly under the Central Government shall in the first month each year submit the Ministry of State Land Resources with the annual
reports of the previous year on the administration of the qualification registration of geological reconnaissance, which annual report
shall include: work survey, main achievements, existing issues, working plan, opinions and suggestions of the coming year.

Article 15

The registration authority shall regularly make random sampling inspection and evaluation on the professional capabilities and performance
of the registration holder and set up the practice archives thereof, and their practice behaviors, reputation maintenance, results
of sampling evaluation, social claims and defaults should be recorded in their practicing archives.

Article 16

In any of the following cases on the part of the registration holder, the registration authority shall not grant it with the qualification
registration of geological reconnaissance for three years.

(I)

Conceal of facts and falsehood in the relevant materials;

(II)

Failure to handling with the formalities for alteration of the registration in compliance with the relevant provisions of the Measures;

(III)

Participating in the reconnaissance without the license for mineral resource reconnaissance or undertaking of reconnaissance by tort;

(IV)

Subcontracting the implementation to the unit or individual without the qualification certificates of geological reconnaissance;

(V)

Undertaking of geological reconnaissance beyond the approved scope of reconnaissance;

(VI)

Mortgage, leasing or transferring of the qualification certificates of geological reconnaissance;

(VII)

Other material negligence or violations of law; or

(VIII)

Noncompliance with the professional ethic standards or breach of the principle of good faith.

Article 17

In case of abuse of positions for private purposes on the part of the workers of the registration authority that constitutes a crime,
criminal responsibilities shall be prosecuted, and in case no crime has been constituted, administrative punishment may be accorded
buy force of law.

Article 18

The qualification certificates of geological reconnaissance are divided into originals and duplicates, which are equally authentic.

The qualification certificates of geological reconnaissance are not restricted by administrative divisions, which are valid throughout
the country.

Article 19

The qualification certificates of geological reconnaissance are uniformly printed by the Ministry of State Land Resources, which is
in charge of uniformly formulating the application forms of the qualification registration of geological reconnaissance, the forms
for uniform inspection of the qualifications of geological reconnaissance, the special stamp for the qualification registration of
geological reconnaissance, and the special stamp for the uniform inspection of the qualifications of geological reconnaissance.

Article 20

In case of registration by the administrative departments of sate land resources of the people’s government of provinces, autonomous
regions and municipalities directly under the Central Government in violation of the provisions of the Measures, the Ministry of
State Land Resources is enpost_titled to make corrections thereof.

Article 21

Foreign investors and investors from Hong Kong, Macao and Taiwan that apply for registration of the qualifications of geological reconnaissance
shall proceed in compliance with the provisions of the Measures and special provisions, if any, specified by laws and administrative
regulations shall apply.

Article 22

Those entities that have obtained the qualification certificates of geological reconnaissance prior to the implementation of the Measures
shall apply with the registration authority for registration in compliance with Article 4 of the Measures, and by the end of the
registration work, the previous qualification certificates of geological reconnaissance will become invalid automatically.

Article 23

The Measures shall come into force as of the date of promulgation.

The Ministry of State Land Resources
2003-06-24

PROVISIONS ON THE MANAGEMENT OF GREEN PASSAGEWAY SYSTEM FOR INSPECTION AND QUARANTINE OF EXPORT GOODS

The State Administration of Quality Supervision, Inspection and Quarantine

Decree of the State Administration of Quality Supervision, Inspection and Quarantine

No.50

Provisions on the Management of Green Passageway System for Inspection and Quarantine of Export Goods, which have been examined and
adopted at the executive meeting of the State Administration of Quality Supervision, Inspection and Quarantine on June 19th 2003,
are hereby promulgated and shall come into force since promulgation.

Director Li Changjiang

July 18, 2003

Provisions on the Management of Green Passageway System for Inspection and Quarantine of Export Goods

Chapter I General Provisions

Article 1

With a view to speeding up the customs clearance process, facilitating the customs release of export goods and promoting export, the
Provisions are formulated in accordance with the Law of the People’s Republic of China on Import and Export Commodity Inspection
and the implementation rules thereof.

Article 2

The term “green passageway system for inspection and quarantine” (hereinafter referred to as the green passageway system) in the Provisions
refers to the release management pattern of granting inspection and quarantine certificate at the production area with exemption
for inspections by the port inspection and quarantine authority for the qualified export goods of the production and operation enterprises
that have good credit rating, sound and stable product quality guarantee system and relatively large export scale, upon the examination
and approval by the State Administration of Quality Supervision, Inspection and Quarantine (hereinafter referred to as the SAQSIQ).
The principle of voluntary application by enterprises shall be adopted in the application of the green passageway system.

Article 3

The SAQSIQ shall take charge of supervision and administration of the nation-wide green passageway system for export goods and implement
verification and approval of the enterprises to be covered by the green passageway system. Local administrations of exit-entry inspection
and quarantine directly under the SAQSIQ (hereinafter referred to as the administrations of inspection and quarantine directly under
SAQSIQ) shall be in charge of the examination, supervision and administration of the enterprises to be covered by the green passageway
system within their respective jurisdictions. Local institutions in charge of exit-entry inspection and quarantine established by
the SAQSIQ (hereinafter referred to as the inspection and quarantine institutions) shall be responsible for acceptance of applications,
preliminary examination and regular administration of the enterprises to be covered by the green passageway system within their respective
jurisdictions.

Article 4

The SAQSIQ shall determine and adjust the scope of export goods to which the green passageway system are applied, in accordance with
the real situation of inspection and quarantine for export goods as well as the implementation outcome of the green passageway system.
The green passageway system shall not apply to the bulk goods or goods that are quality-unstable or liable to deterioration or require
replacement of the inspection and quarantine certificate at the port.

Chapter II Enterprise Qualification

Article 5

A enterprise applying for coverage of the green passageway system shall meet the following conditions:

(1)

having good reputation and sound credit rating, with the annual export volume exceeding USD5,000,000;

(2)

having implemented the ISO9000 quality management system and obtained the certificate of eligibility in assessment and examination
of the production enterprise quality system issued by the relevant organ;

(3)

having long-term stable quality for the export goods and have not been involved in quality-based compensation claim or dispute with
the import country within the recent two years;

(4)

having no improper inspection applications within a year and having no record of administrative sanctions by the inspection and quarantine
institutions within two years;

(5)

belonging to the first-grade or second-grade enterprises if classified administration of production enterprises is applied pursuant
to the relevant provisions of SAQSIQ

(6)

having obtained registration for marks of production area where it is required by any law, regulation, or bilateral agreement for
the use of marks for the production area;

(7)

other conditions stipulated by the SAQSIQ.

Article 6

The applicant enterprise should make the following commitment:

(1)

complying with the laws and regulations on exit-entry inspection and quarantine and the Provisions on the Application for Exit-Entry
Inspection and Quarantine;

(2)

adopting e-application;

(3)

ensuring conformity between the export goods and their certificates, the eligibility of batch numbers and complete markskeeping
the sealing intact if sealing is adopted;

(4)

conducting no such illegal activities as replacing or stealthily substituting goods when the export goods are carried to the port
after having obtained the inspection and quarantine certificate from the inspection and quarantine institutions;

(5)

voluntarily accepting the supervision and administration by the inspection and quarantine institutions.

Article 7

Enterprises applying for the adoption of the green passageway system shall ask for and fill in the Application Form for Adoption of
the Green Passageway System (see attachment) and at the same time, submit the Certificate of ISO9000 Quality Management System Accreditation
(photocopy) as well as other relevant documents.

Chapter III Examination and Approval

Article 8

The inspection and quarantine institutions in charge of application acceptance shall complete the preliminary examination in accordance
with the provisions as follows:

(1)

examining the application documents;

(2)

verifying and investigating the facts about the enterprise’s quality guarantee system and the quality of its export goods and whether
it has improperly applied for inspection or other acts in violation of the provisions on inspection and quarantineand

(3)

proposing the opinion on preliminary examination and submitting it to the superior administration of inspection and quarantine directly
under SAQSIQ.

Article 9

The administration of inspection and quarantine directly under SAQSIQ shall review the preliminary examination opinion and report
the list of qualified enterprises and the relevant documents to the SAQSIQ.

Article 10

The SAQSIQ shall give approval to the enterprises meeting the relevant requirements of the green passageway system. The approved list
of enterprises to be covered by the green passageway system shall be made public by the SAQSIQ.

Chapter IV Inspection and Quarantine at Production Area

Article 11

For those in conformity with the following provisions, the inspection and quarantine institutions at the production area shall conduct
the acceptance of inspection applications by referring to the green passageway system.

(1)

For self-operating export enterprises covered by the green passageway system, the applicant entity for inspection, the consigner and
the production enterprise shall be the same

(2)

For operating enterprises covered by the green passageway system, the applicant entity for inspection and the consigner shall be the
same, and the export goods operated shall be produced by the production enterprises covered by the green passageway system.

Article 12

For the export enterprises approved to adopt the green passageway system, the inspection and quarantine institutions where the enterprises
are located shall confirm their qualification for coverage of the green passageway system in the sub-system for inspection application
of the CIQ2000 System.

Article 13

The workers of the inspection and quarantine institutions shall conduct examination in strict compliance with the requirements of
the green passageway system when accepting the e-inspection applications of the enterprises covered by the green passageway system.
For those failing to meet the relevant requirements, reasons should be given in the return receipt for inspection application

Article 14

If any enterprise failing to meet the requirements for the green passageway system coverage are found during the inspection process,
the personnel of the inspection and quarantine institutions shall write the words “failing to meet the requirements for green passageway
system coverage” in the column of inspection and quarantine opinion of the Flow Diagram for Inspection and Quarantine or the relevant
inspection and quarantine records.

Article 15

The inspection and quarantine institutions at the production area shall strengthen the examination of the inspection application documents
and the inspection & quarantine documents for export goods covered by the green passageway system, and e-transmit the qualified documents
to the port inspection and quarantine institutions to form the customs clearance data. During the transmission of documents, the
specified code of the port of customs declaration should be input and the Certificate of Document Transmission issued.

Chapter V Port Examination and Release

Article 16

The port inspection and quarantine institutions should establish service windows for enterprises adopting the green passageway system.

Article 17

For export goods of the enterprises covered by the green passageway system, the port inspection and quarantine institutions shall
enter the subsystem for inspection application of the CIQ2000 System and launch the green passageway function.

Article 18

For enterprises adopting the green passageway system, the port inspection and quarantine institutions shall conduct stringent examination
over the information concerning the green passageway system in the e-document transmission date. If no problems are found in the
examination, the Notice of Customs Clearance For Outward Goods will be issued directly without inspections.

If the enterprises covered by the green passageway system alter the declaration contents at the port, the port inspection and quarantine
institutions shall not refer to the green passageway system for release.

Chapter VI Supervision and Administration

Article 19

The inspection and quarantine institutions at the production area shall establish the management files for, and strengthen the management
over enterprises covered by the green passageway system.

Article 20

Upon discovering non-conformance to the self-discipline commitment of the enterprise covered by the green passageway system or other
acts in violation of the provisions, the port inspection and quarantine institution shall make a report in good time to the administration
of inspection and quarantine directly under SAQSIQ where the port is located.

After verification, the administration of inspection and quarantine directly under SAQSIQ where the port is located shall notify the
administration of inspection and quarantine directly under SAQSIQ at the production area. The latter shall suspend the adoption the
green passageway system for the enterprise and submit to the SAQSIQ the opinion on canceling the coverage of the green passageway
system for the enterprise. After confirmation, the SAQSIQ shall disqualify the enterprise from adopting the green passageway system.

Article 21

The Inspection and quarantine institutions at the port and the production area shall make statistical reports on the implementation
of the green passageway system on a regular basis and establish the mutual notification system.

Chapter VII Supplementary Provisions

Article 22

The right to interpret the Provisions shall remain with the State Administration of Quality supervision, Inspection and Quarantine.

Article 23

The Provisions shall come into force as of the date of its promulgation.

The State Administration of Quality Supervision, Inspection and Quarantine
2003-07-18

Error

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON ADJUSTING THE EXPORT REBATE RATES

Ministry of Finance, State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation on Adjusting the Export Rebate Rates

CaiShui [2003] No. 222

October 13, 2003

The departments (bureaus) of finance and the bureaus of state taxes of all provinces, autonomous regions, municipalities directly
under the Central Government and cities directly under State planning, the bureau of finance of Sinkiang Production and Construction
Army Corps:

Upon approval of the State Council, structural adjustments shall be made on the current export rebate rates for value-added tax, and
the notice on the relevant issues is given as follows:

The current export rebate rates for the following goods shall remain unchanged:

(1)

The agricultural products whose current export rebate rates range between 5% and 13%;

(2)

The industrial products processed from agricultural products whose current export rebate rate is 13% (except for those prescribed
in Articles 3 and 4 of the present Circular);

(3)

The goods whose VAT rate as prescribed in the current taxation policies is 17%, and tax refund rate is 13% (except for those prescribed
in Articles 3 and 4 of the present Circular);

(4)

Ships, automobiles and their key components and parts thereof, aircrafts and spacecrafts, digital control machines, processing centers,
printed circuits, railway engines, etc. whose current export rebate rate is 17% (refer to Annex 1 for the HS codes and commodity
names);

The export rebate rate for wheat flour, maize (corn) flour, severed ducks, severed rabbits and other goods as listed in Annex 2 shall
be raised from 5% to 13%.

The policies on export tax refund of crude oil, wood, paper pulp, fine goat hair, eel fries, rare earth metal minerals, phosphorus
ores, natural graphite and other goods listed in Annex 3 shall be cancelled. As to the goods subject to the consumption tax, the
policies on export rebate or exemption of consumption tax shall be cancelled accordingly.

The export rebate rates for the following goods shall be lowered:

(1)

The export rebate rate for gasoline (HS code: 27101110) and unwrought zinc (HS code: 7901) shall be lowered to 11%;

(2)

The export rebate rate for unwrought aluminum, yellow phosphorus and other phosphorus, unwrought nickel and iron alloy, molybdenum
ores and concentrates, and other goods listed in Annex 4 shall be lowered to 8%;

(3)

The export rebate rate for coke and semi-coke, coking coal, fused magnesia, dead-burned (sintered) magnesia, feldspar, talc, steatite
and other goods listed in Annex 5 shall be lowered to 5%;

(4)

Except for the goods prescribed in Articles 1 through Article 3 and Paragraphs (1) through (3) of the present Article, the export
rebate rate of any goods, whose current export rebate rate is 17% or 15, shall be lowered to 13%. The export rebate rate of all the
goods whose current tax rate and tax refund rate is 13% shall be lowered to 11%.

With regard to the export contracts signed by export enterprises with foreign parties before October 15th, 2003 on whole sets of equipment
(whose export value is 2 million USD or more) or large mechanical and electronic products (whose unit price is 1 million USD or more)
falling within the scope of Paragraph (4) of Article 4 of the present Circular whose prices are unchangeable, where the export date
stipulated in the contract is later than July 1, 2004, such contracts must be registered and put into record before November 15th
, 2003 with the competent tax refund organs upon the strength of their original export contracts and counterparts. The provincial
bureau of state taxes shall, after examination and verification, submit the qualified export contracts and pertinent documents to
the State Administration of Taxation by November 30th, 2003. After joint examination and approval of the State Administration of
Taxation and the Ministry of Finance, the local bureau of state taxes shall handle the tax refund at the pre-adjusted tax rebate
rate. With respect to any whole set of equipment or large mechanical and electronic product whose registration and record fail to
be made before November 15th, 2003, the export rebate shall be handled at the adjusted tax refund rate.

The administrations of finance and taxation in all regions shall earnestly study and grasp the present Circular, and take effective
measures to seriously implement the relevant policies in the present Circular, handle tax refund in jure, and seriously defend the
benefits of the State and the enterprises. They shall, in the meanwhile, closely cooperate with the competent departments of commerce,
customs, foreign exchange, and the enterprises to further do well in export.

As of July 1st, 2004, any enterprise that exports goods by any means shall be subject to the export rebate rates prescribed in the
present Circular. The date of specific implementation shall be based on the departure date as indicated by the customs on the customs
declaration list for the exported goods.

htm/e03246.htmAnnex 1

Annex 1:

Catalogue of Products Whose Refund Tax Rate Remains 17%

HS Codes	Commodity Description	Remarks
8901-8902, 8904, 8905-8906, 8907	Ships	Among the HS Codes, those whose current tax refund rate is 17% shall remain unchanged, while for those whose tax refund rate is 13%, the rates adjusted in the present Notice shall prevail
84073410, 84073420 84082010-84089010 84089092-84089093 87012000-87079090 87161000-87169000 84099191-84099199 84099991-84099999 8708	Automobiles and their key components and parts	The same as above
8456-8460, 8462	Digital control machine tools, machining centers, combined machine tools
8425-8430 84671100-84678900 84743100-84748090 84791021-84791090	Machines for hoisting or construction use, mechanical hoisting equipment, machines for construction and mining	The same as above
851730-85175029	Program-controlled telephone, telegram exchanger, optical communication equipment
9018-9020, 90221200-90221400 90222100	Medical apparatuses and appliances
8601-8606	Railway locomotives
84713000	portable digital automatic data processing devices below 10 kilograms
88	Aircrafts and spacecraft
8454-8455	Metal smelting equipment
8534	Printing circuits

Annex 2:

Catalogue of Products of Which the Refund Tax Rate is Adjusted to 13%

HS Codes

Commodity Description

Tax Refund Rates After Adjustment

Remarks

1. Edible Flour

1101

Wheat or maslin flour

13%

11022000

Maize (corn) flour

13%

11023010

Nonglutinous rice flour

13%

11023090

Other rice flour

13%

11031100

Groats and meal of wheat

13%

11031300

Groats and meal of maize (corn)

13%

11031921

Coarse grains and meal of nonglutinous rice

13%

11031929

Coarse grains and meal of other rice

13%

11032010

Wheat pellets

13%

11081100

Wheat starch

13%

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON CARRYING THROUGH THE DECISION OF THE STATE COUNCIL ON REFORM OF THE EXISTING EXPORT TAX REFUND MECHANISM

State Administration of Taxation

Circular of the State Administration of Taxation on Carrying through the Decision of the State Council on Reform of the Existing Export
Tax Refund Mechanism

GuoShuiFa [2003] No. 137

November 13th, 2003

The administrations of state taxation of all provinces, autonomous regions, municipalities directly under the Central Government,
and cities directly under State planning, as well as all the entities under the State Administration of Taxation:

With a view to seriously carrying through the Decision of the State Council on Reform of the Existing Export Tax Refund Mechanism
(GuoFa [2003] No. 24, hereinafter referred to as the “Decision”), actualizing the reform of export tax refund mechanism, and further
advancing the work of export tax refund, as well as promoting the sustainable and healthy development of foreign trade and economy,
we hereby make the following notice:

Earnestly improving the understanding on the great significance of reforming the export tax refund mechanism

Since1985, the export tax refund policy of China has played an important role in supporting foreign trade and promoting the sustainable,
stable and healthy development of national economy. But there are still some contradictions and problems to be solved urgently in
the active export tax refund mechanism, to which the Central Committee of the Communist Party of China and the State Council have
attached high importance, and they have made the great decision on reforming the existing export tax refund mechanism after careful
investigation and widely soliciting the opinions of all parties concerned. The present reform on the export tax refund mechanism
concerns not only the adjustment of interest relations between the Central Government and the local governments, but also concerns
the reform of the foreign trade mechanism, the overall situation of foreign trade & export and the development of national economy
as well. As the major departments for carrying through the plan for reform of the export tax refund mechanism, the administrations
of state taxation at all levels shall earnestly study and profoundly understand the spirit of the Decision, be fully aware of the
great significance of the reform on export tax refund mechanism, and consolidate the thoughts and action into the spirit of the “Decision”
from the height of deeply putting into effect the spirits of the Sixteenth Congress of the Communist Party of China and completely
putting the important thought of “Three Represents” into practice, emphasizing the political awareness, paying attention to the overall
situation, and fully understanding the policies, as well as grasping the main points, so as to ensure that the reform of the export
tax refund mechanism goes on smoothly.

II.

Concentrating energy, firmly putting into effect and completely carrying through the spirits of the “Decision”

The period between the end of 2003 and the beginning of 2004 is the key phase for the reform of the export tax refund mechanism. The
administrations of state taxation at all levels shall, in light of the uniform deployment of the State Administration of Taxation,
and according to the particular circumstances of their own regions, make investigation and set down specific suggestions for putting
the reform into effect. The problems and effects that may be brought about by the reform shall be taken into full consideration,
and the actualization of the reform shall be followed up closely so as to have the new problems occurring in the reform found out,
studied and solved in time; the exchange of information between the upper level and the lower level shall be strengthened, and the
new conflicts appearing in the reform shall be dissolved at any time through continuously improving relevant policies and measures;
various measures shall be taken for making publicity and interpretation to the export enterprises as soon as possible, and to combine
the strict law enforcement with the optimization of tax refund services, so as to actually put the various reform measures into effect.

At the present time, the export tax refund work is confronted with new situations, the tasks thereof are heavy, and the management
is more difficult. The State Administration of Taxation, jointly with other relevant departments, is now urgently investigating and
formulating specific implementation measures for the reform, which shall, together with the promulgation of corresponding supporting
measures, be carried through earnestly by the administrations of state taxation at all levels. The principle of being responsible
not only for the State but also for the enterprises, and not only for the Central Government but also for the local governments shall
be followed in the administration of export tax refund, so as to have the work for the administration of export tax refund well done
in the process of alternation from the old mechanism to the new one.

III.

Further improving the efficiency of export tax refund work and speeding up the progress of export tax refund

The administrations of state taxation at all levels shall, in light of the spirit of the recent meeting of the whole country on the
work of import and export taxation, earnestly implement the declaration, auditing, and examination and approval of the export tax
refund in the last two months of the year 2003, so as to further improve the efficiency of the work of export tax refund. The primary
responsible persons of the administrations of state taxation at all levels shall attach sufficient importance to the work, the leaders
of the administrations responsible for export tax refund shall assume leadership in person, and formulate specific work schemes,
so as to ensure that the work is actually put into effect.

The administrations of state taxation at all levels shall supervise and urge the export enterprises to collect tax refund documents
as soon as possible, handle the determination of the special VAT invoices in time on the monthly basis, and declare for the tax refund
in time. The State Administration of Taxation hereby reaffirms that any declaration of the export enterprises may not be refused
by the local taxation authorities for lack of tax refund quotas. In the meantime, the local administrations shall strengthen cooperation
with the competent departments in charge of foreign trade and economy, requiring them to solve in time the problems encountered in
the collection of tax refund documents by the export enterprises, so as to help the export enterprises speed up the collection of
documents.

The local taxation authorities shall make timely analysis on the declaration of tax refund by export enterprises, and in case the
export enterprises are unable to collect all the tax refund such documents as the documents of customs declaration for export, documents
for collecting, verifying and writing off export proceeds in foreign exchange, which caused the lagging behind of the declaration
of tax refund, the local tax authorities shall report to the local governments in time and explain the reason, so as to gain the
understanding and support of the governments. And the relevant matters concerned shall also be reported to the State Administration
of Taxation in time.

IV.

Strengthening administration on export tax refund, taking strict precautions against export tax refund fraud

Firstly, we shall keep alert on preventing and combating tax fraud at the time. The administrations of state taxation at all levels
shall put into effect the system of work post responsibility and the system of fault prosecution in law enforcement, and strengthen
supervision over law enforcement on export tax refund. Secondly, cooperation with such local departments as the finance, business
affairs, customs, and foreign exchange administration, etc. shall be strengthened so as to positively push the construction of Port
Electronic Law Enforcement System, bring into full play the advantages of interlink of the data of electronic port among such departments
as the customs, taxation, foreign exchange administrations, etc., and further improve the level of administration on electronic examination
and verification of export tax refund and the accuracy of law enforcement. Thirdly, we shall push forward the work of export tax
fund for the examination and verification on electronic information by using the special VAT invoices, change our minds, and establish
a new system for the administration on export tax refund as soon as possible, which shall be based on the information administration,
with the examination and verification on the special VAT invoices as the core, so as to bring into full play the role of the golden
taxation project for the prevention of tax fraud.

State Administration of Taxation
2003-11-13

MEASURES FOR THE ADMINISTRATION OF THE LANDING OF OVERSEAS SATELLITE TELEVISION CHANNELS

State Administration of Radio, Film and Television

Order of the State Administration of Radio, Film and Television

No.22

The Measures for the Administration of the Landing of Overseas Satellite Television Channels, which were approved by the executive
meeting of this Administration on November 14, 2003, are hereby issued and shall go into effect on January 10, 2004.

Xu Guangchun, the Director of the State Administration of Radio, Film and Television

December 4, 2003

Measures for the Administration of the Landing of Overseas Satellite Television Channels

Article 1

The present Measures are formulated with a view of strengthening the administration of the landing of overseas satellite television
channels.

Article 2

The present Measures shall be applicable to the administration of the landing of overseas satellite television channels within the
People’s Republic of China through satellite transmission.

Article 3

The State Administration of Radio, Film and Television (hereinafter referred to as SARFT) shall be in charge of the centralized administration
of the landing of overseas television channels, and implement the system of examination and approval to the landing of foreign satellite
television channels.

Article 4

Overseas satellite television channels may, upon approval of SARFT, land within the prescribed range, such as foreign-related hotels
at the three-star level or above, and the foreign-related flats especially provided to foreigners as office or residence, and other
specific ranges.

Article 5

an overseas satellite television channel to be landed in China shall satisfy the requirements as follows:

The contents played shall not infringe the provisions of the laws, regulations and rules of China;

The applicant is a legal television media in its home country (region);

The applicant shall have the comprehensive strength to conduct mutually beneficial cooperation with the radio and television stations
of China, and make an commitment and actively assist in the landing abroad of China’s radio and television programs;

The channel applying for landing and the institutions directly related thereto are friendly to China, and have established long and
friendly exchange and cooperation relationship with China in the field of radio and television;

The applicant shall agree that the programs of its channel should be transmitted by the institution designated by SARFT (hereinafter
referred to as designated institution) in a unified way, and make an commitment not to land those programs within China through any
other means;

The applicant shall agree to entrust the designated institution to act as its agent to handle all the matters related to the landing
within China.

Article 6

SARFT will make the examination and approval of the applications for landing of overseas satellite television channels once a year,
between July and September.

Article 7

In principle, only one channel for each foreign satellite television institution may be permitted to land within the specific range.
No news-oriented overseas satellite television channel shall be approved to land within China as a general principle. And no satellite
television channel that is launched or jointly operated abroad by any domestic radio and television institution or any other relevant
departments, organizations, enterprises or individuals shall be approved to land within China. For any special circumstances, the
application shall be submitted to SARFT for special approval.

Article 8

To apply for the landing of a foreign satellite television channel, the applicant must first submit the application to the designated
institution, fill in the Memorandum of Satellite Television Channels according to the requirements, and submit the certificates prescribed
in Articles 5 and 7 herein and the reception devices such as decoders, etc. If the application documents are incomplete, the applicant
shall supplement the lacking part within 14 days from the day of receiving the relevant notice, and shall be deemed as waiving the
application automatically if failing to make supplementation within the said time limit. The designated institution shall, after
receiving all of the application documents, submit the application to SARFT for the landing within China of the overseas satellite
television channel for which it acts as an agent.

Article 9

In the case that SARFT approve the designated institution to negotiate with the overseas satellite television channel on the agency
of the landing of its channel, if that overseas satellite television channel applies for landing for the first time, it shall negotiate
on the relevant cooperation matters with the designated institution within 60 days; if it obtained the landing qualification in the
last year, it shall make the negotiation within 45 days. If it fails to make the negotiation within the said deadline, it shall be
deemed as waiving the application automatically.

SARFT shall grant approval for the landing of the foreign satellite television channel, if it satisfies the provisions in Articles
5 and 7 hereof.

Article 10

An overseas satellite television channel approved to land must comply with the relevant provisions of China on the administration
of overseas satellite television.

Article 11

An overseas satellite television channel approved to land shall adjust the coverage of the original satellite signals in accordance
with the requirements of the designated institution; perform the agreement signed with the designated institution; and may not carry
out within China any promotion activities for the television channel, the brand thereof, and the relevant reception devices without
permission.

Article 12

It is not permitted for an overseas satellite television channel approved to land to play any program containing any of the following
contents:

Those imperiling the unification of the state and the integrity of the sovereignty and territory of China;

Those imperiling the state security of China, impairing the honor and interest of China, and divulging the state secrets of China;

Those stirring up the splitting of nationalities, hatred and discrimination among the nationalities, undermining the solidarity of
the nationalities, and infringing upon the customs and habits of the nationalities of China;

Those endangering the social stability of China, advocating obscenity, violence, superstition, evil religions, and instigating commitment
of crimes;

Those defaming or insulting others and infringing upon the legal rights and interests of others;

Those endangering the public morality of China and defaming the excellent cultural traditions of China; and

Other contents that infringe the laws, regulations, and rules of China.

Article 13

Any of the following alterations to a foreign satellite television channel approved to land must be notified to and negotiate with
the designated institution beforehand, and the designated institution shall report to SARTF:

Alterations of the shareholding structure, management power, investors, and principal managers of the channel and the institutions
directly related thereto;

Alterations of the important matters specified in the Memorandum of Satellite Television Channels, such as the name of the channel,
the type of the channel, the constitution of the program, the broadcasting languages, and the subpost_titles, etc.;

Alterations of relevant technical parameters, such as whether the broadcasting signals are coded or not, the transmitting satellites
and the coverage thereof, etc.

Alterations of any of the contents involved in Articles 5 and 7 hereof.

If SARFT deems that a channel approved to land no longer satisfies the requirements provided for herein due to any of the alterations
mentioned above, it may deal with the channel correspondingly or even disqualify that channel from landing.

Article 14

The administrative departments of radio and television at various levels shall administer the reception of relevant overseas satellite
television channels in accordance with the Provisions on the Administration of Earth Reception Facilities for Satellite Television
and Radio Programs (Order 129 of the State Council) and the relevant provisions.

Article 15

The designated institution shall assist the administrative department of radio and television to supervise the relevant acts and the
contents played by the foreign satellite television channel for which it acts as an agent by taking necessary prevention and treatment
measures, cooperate with SARFT in the relevant handling, and report in good time any problems that have been identified.

In the case that an overseas satellite television channel approved to land plays any contents that infringe Article 12 hereof, the
designated institution shall immediately stop the transmission of the rule-breaking contents.

Article 16

In the case that an overseas satellite television channel approved to land infringes any provisions hereof, if the offence is minor,
SARFT shall give it a warning and demand it to state the situation and make correction; if the offence is serious, SARFT shall suspend
the transmission of the specific contents, and suspend or revoke the landing qualification of the relevant channel.

Article 17

In the case that an overseas satellite television channel approved to land has caused any negative effect, it shall, apart from accepting
the corresponding treatments, eliminate such negative effect within the same dissemination range in accordance with the requirements
of SARFT.

Article 18

The present Measures shall be referred to with respect to the administration of the overseas satellite television channels approved
by SARFT to land within the specified areas within China.

Article 19

The present Measures shall go into effect on January 10, 2004. The Interim Measures for the Administration of the Examination and
Approval of the Landing of Foreign Satellite Television Channels (Order No.8 of SARFT) shall be abolished at the same time.

State Administration of Radio, Film and Television
2003-12-04

COMMERCIAL BANKS LAW

Law of the People’s Republic of China on Commercial Banks

(Adopted at the 13th Meeting of the Standing Committee of the Eighth National People’s Congress on May 10, 1995,
promulgated by Order No. 47 of the President of the People’s Republic of China on May 10, 1995, and amended in accordance with the
Decision of the Standing Committee of the National People’s Congress on Amending the Law of the People’s Republic of China on Commercial
Banks adopted at the Sixth Meeting of the Standing Committee of the Tenth National People’s Congress on December 27, 2003)

Contents

Chapter I General Provisions

Chapter II Establishment and Organizational Structure of Commercial Banks

Chapter III Protection of depositors

Chapter IV Basic Rules for Loans and Other Business Operations

Chapter V Financial Affairs and Accounting

Chapter VI Supervision and Control

Chapter VII Assumption of Control and Termination

Chapter VIII Legal Responsibility

Chapter IX Supplementary Provisions

Chapter I

General Provisions

Article 1 This Law is enacted in order to protect the lawful rights and interests of commercial banks, depositors and other clients,
to standardize the behavior of commercial banks, to raise the quality of credit assets, to strengthen supervision and control, to
ensure the stable and sound operation of commercial banks, to maintain financial order and to promote the development of the socialist
market economy.

Article 2 For the purposes of this Law, the term “commercial banks” means enterprise legal persons that are established in conformity
with this Law and the Company Law of the People’s Republic of China and that take in deposits from the general public, grant loans,
handle settlements, etc.

Article 3 Commercial banks may engage in some or all of the following business operations:

(1) taking in deposits from the general public;

(2) granting short-term, medium-term and long-term loans;

(3) handling domestic and foreign settlements;

(4) handling the acceptance and discounting of negotiable instruments;

(5) issuing financial bonds;

(6) acting as an agent for the issue, honoring and underwriting of government bonds;

(7) buying and selling government bonds and financial bonds;

(8) engaging in interbank lending;

(9) buying and selling foreign exchange and acting as an agent for the purchase and sale of foreign exchange;

(10) engaging in the business of bank cards;

(11) providing letter of credit services and guaranty;

(12) acting as an agent for the receipt and payment of money and acting as an insurance agent;

(13) providing safe deposit box services; and

(14) other business operations as approved by the banking regulatory authority under the State Council.

The scope of business shall be specified in the articles of association of the commercial bank, and submitted to the banking regulatory
authority under the State Council for approval.

Upon approval of the People’s Bank of China, commercial banks may engage in the business of the settlement and sale of foreign exchange.

Article 4 The business operations of commercial banks shall be governed by the principles of safety, liquidity and efficiency.
Commercial banks shall make their own decisions regarding their business operations, take responsibility for their own risks, assume
sole responsibility for their profits and losses and exercise self-restriction.

Commercial banks shall, pursuant to law, conduct business operations without interference from any unit or individual.

Commercial banks shall independently assume civil liability with their entire legal person property.

Article 5 Commercial banks shall adhere to the principles of equality, voluntariness, fairness and good faith in business dealings
with their clients.

Article 6 Commercial banks shall safeguard the lawful rights and interests of depositors against infringement by any unit or individual.

Article 7 In credit transactions, commercial banks shall strictly examine the credit-worthiness of a borrower and implement the system
of guaranty in order to ensure that the loan is recovered on schedule.

Commercial banks shall be protected by law when they recover the principal of loans that have become due and the interest thereon
from the borrowers in accordance with legal provisions.

Article 8 In business transactions, commercial banks shall abide by the relevant provisions of laws and administrative rules and
regulations and may not harm the interests of the State or of the public.

Article 9 In business transactions, commercial banks shall abide by the principle of fair competition and may not engage in illegitimate
competition.

Article 10 Commercial banks shall, in accordance with law, accept supervision and control of the banking regulatory authority under
the State Council, but where laws provide that their relevant business operations shall be subject to supervision and control of
other regulatory departments or bodies, such provisions shall prevail.

Chapter II

Establishment and Organizational Structure of Commercial Banks

Article 11 The establishment of commercial banks shall be subject to examination and approval by the banking regulatory authority
under the State Council.

No unit or individual may engage in commercial banking business such as taking in deposits from the general public, and no unit may
use the word “bank” in its name, without approval of the banking regulatory authority under the State Council.

Article 12 A commercial bank shall meet the following requirements for establishment:

(1) having articles of association that conform to this Law and the Company Law of the People’s Republic of China;

(2) having the minimum amount of registered capital as specified in this Law;

(3) having directors and other senior administrators with the expertise and experience in work commensurate with the positions they
are holding;

(4) having a sound organizational structure and management system; and

(5) having the required place of business, security and precautionary measures and other facilities relevant to it business operations.

The establishment of a commercial bank shall, in addition, meet other requirements of prudence.

Article 13 The minimum amount of registered capital required for the establishment of a national commercial bank shall be RMB one
billion yuan. The minimum amount of registered capital required for the establishment of an urban commercial bank shall be 100 million
yuan, and the minimum amount of registered capital required for the establishment of a rural commercial bank shall be 50 million
yuan. Registered capital shall be paid-up capital.

The banking regulatory authority under the State Council may readjust the minimum amount of registered capital on the basis of the
requirements of prudent supervision and control, however, the readjusted amount may not be lower than the amount specified in the
preceding paragraph.

Article 14 To establish a commercial bank, the applicant shall provide the following documents and information to the banking regulatory
authority under the State Council:

(1) a written application, in which the name, location, registered capital, scope of business, etc. of the proposed commercial bank
are clearly stated ;

(2) a feasibility study; and

(3) other documents and information to be provided as specified by the banking regulatory authority under the State Council.

Article 15 If an application for establishing a commercial bank is found, after examination, to be in conformity with the provisions
of Article 14 of this Law, the applicant shall complete an official application form and provide the following documents and information:

(1) a draft of the articles of association;

(2) the qualification certificates of the director or other senior administrator who is to hold office;

(3) an investment verification certificate issued by a statutory investment verification organization;

(4) a list of the names, capital contributions and shares of shareholders;

(5) credit-worthiness certificates and relevant information concerning the shareholders that hold five percent or more of the registered
capital each;

(6) business policies and plans;

(7) information concerning the place of business, security and precautionary measures and other facilities relevant to business operations;
and

(8) other documents and information as specified by the banking regulatory authority under the State Council.

Article 16 A commercial bank the establishment of which has been approved shall be issued a permit for operation by the banking regulatory
authority under the State Council and, on the strength of such permit, register with the administrative department of industry and
commerce and obtain a business license from it.

Article 17 The organizational form and structure of commercial banks shall be governed by the Company Law of the People’s Republic
of China.

Commercial banks, established prior to the implementation of this Law, that do not entirely conform to the provisions of the Company
Law of the People’s Republic of China in organizational form and structure may continue to be governed by previous regulations.
The date on which the preceding paragraph shall apply to such commercial banks shall be specified by the State Council.

Article 18 A board of supervisors shall be established in a wholly State-owned commercial bank. Measures for forming the board of
supervisors shall be formulated by the State Council.

The board of supervisors shall exercise supervision over the quality of credit assets of the wholly State-owned commercial bank,
its assets-liabilities ratios and maintenance of and increase in the value of State-owned assets, and over the senior administrators
of the commercial bank to see whether they violate any laws, administrative rules and regulations or the articles of association
or commit any acts which harm the interests of the bank.

Article 19 Commercial banks may establish branches within and outside the People’s Republic of China, in light of their needs in
business operations. The establishment of such a branch shall be subject to examination and approval by the banking regulatory authority
under the State Council. The establishment of branches within the People’s Republic of China shall not be restricted by the administrative
division of regions.

When a commercial bank establishes a branch within the People’s Republic of China, it shall allocate operating funds in keeping with
the scale of its business, in accordance with regulations. The sum total of operating funds allocated to all the branches may not
exceed 60 percent of the total amount of the capital of the head office.

Article 20 To establish a branch of a commercial bank, the applicant shall submit the following documents and information to the
banking regulatory authority under the State Council:

(1) a written application, in which the name, amount of operating funds and scope of business of the proposed branch, the location
of the head office and the branch, etc. are clearly stated;

(2) the applicant’s financial and accounting reports of the preceding two years;

(3) the qualification certificates of the senior administrators who are to hold office;

(4) business policies and plans;

(5) information concerning the place of business, security and precautionary measures and other facilities relevant to business operations;
and

(6) other documents and information as specified by the banking regulatory authority under the State Council.

Article 21 A commercial bank’s branch the establishment of which has been approved shall be issued a permit for operation by the
banking regulatory authority under the State Council and, on the strength of such permit, register with the administrative department
of industry and commerce and obtain a business license from it.

Article 22 With respect to their branches, commercial banks shall apply across the board a financial system of centralized accounting
and centralized movement of funds, and of management at different levels.

Branches of commercial banks shall not have the status of a legal person and shall lawfully conduct their business operations within
the scope authorized by their head offices, and their civil liability shall be assumed by their head offices.

Article 23 The banking regulatory authority under the State Council shall announce its approval of the establishment of commercial
banks and their branches.

If a commercial bank or branch thereof fails, without good reason, to commence business more than six months after the date of obtaining
its business license or, after commencing business, suspends business without authorization for six months or more in succession,
the banking regulatory authority under the State Council shall revoke its permit for operation and make it known to the public.

Article 24 A commercial bank shall obtain the approval of the banking regulatory authority under the State Council for making any
of the following changes:

(1) change of name;

(2) change in the registered capital;

(3) change of location of the head office or a branch;

(4) adjustment of the scope of business;

(5) change of shareholders that hold five percent or more of the total amount of capital or shares each;

(6) revision of the articles of association; or

(7) changes in other matters as are governed by the regulations of the banking regulatory authority under the State Council.

When a director or a senior administrator is to be replaced, the qualifications of the substitute for the position shall be submitted
to the banking regulatory authority under the State Council for examination.

Article 25 Division and merger of commercial banks shall be governed by the provisions of the Company Law of the People’s Republic
of China.

Division and merger of commercial banks shall be subject to examination and approval by the banking regulatory authority under the
State Council.

Article 26 Commercial banks shall use their permits for operation in accordance with the provisions of laws and administrative
rules and regulations. Forging, alteration, assigning, leasing out or lending of such permits is prohibited.

Article 27 None of the following persons may serve as a director or a senior administrator of a commercial bank:

(1) persons who have been sentenced to criminal punishment for the crime of embezzlement, bribery, seizure or misappropriation of
property or disruption of the public and economic order, or persons who have been deprived of their political rights
for committing a crime;

(2) directors of companies or enterprises, or factory directors or managers who have been subjected to bankruptcy liquidation
due to mismanagement, and who bear personal liability for the bankruptcy;

(3) legal representatives of companies or enterprises that had their business licenses revoked for breaking law, who bear personal
liability therefor; and

(4) persons with comparatively large amounts of overdue personal debts .

Article 28 Purchase by any unit or individual of five percent or more of the total amount of the shares of a commercial bank shall
be subject to prior approval by the People’s Bank of China.

Chapter III

Protection of Depositors

Article 29 In handling savings deposits for individuals, commercial banks shall adhere to the principles of voluntary deposit, unimpeded
withdrawal, interest payment on deposits and confidentiality for the depositors.

Commercial banks shall have the right to refuse to answer the inquiries into and to refuse to freeze, deduct or transfer an individual’s
savings deposits– as made or requested by any unit or individual, except where otherwise provided for by law.

Article 30 Commercial banks shall have the right to refuse to answer the inquiries into a unit’s deposits by any other unit or individual,
except where otherwise provided for by laws and administrative rules and regulations, and shall have the right to refuse to freeze,
deduct or transfer a unit’s deposits as requested by any other unit or individual, except where otherwise provided
for by law.

Article 31 Commercial banks shall determine the interest rates on deposits in accordance with the upper and lower limits interest
rates on deposits specified by the People’s Bank of China and make them known to the public.

Article 32 Commercial banks shall place a deposit reserve with the People’s Bank of China and maintain sufficient provision for payment,
in accordance with the regulations of the People’s Bank of China.

Article 33 Commercial banks shall guaranty, and may not delay or refuse, payment of the principal of deposits and the interest thereon.

Chapter IV

Basic Rules for Loans and Other Business Operations

Article 34 Commercial banks shall conduct their business of lending in accordance with the needs of the national economic and social
development and under the guidance of the industrial policies of the State.

Article 35 Before granting a loan, commercial banks shall strictly examine the borrower’s purpose for the loan, ability to repay
the loan, method of repayment, etc.

When granting a loan, commercial banks shall implement the system of separating the examination of a loan from the actual provision
of the loan and the system of examination and approval at different levels.

Article 36 To obtain a loan from a commercial bank, a borrower shall provide a guaranty. The commercial bank shall strictly examine
the surety’s ability to repay the loan, the ownership and value of the mortgage or the collateral and the feasibility of realizing
the right of mortgage or right of pledge.

If, after examination and appraisal by a commercial bank, a borrower’s credit is found to be good, and the borrower is deemed truly
able to repay the loan, the borrower need not provide a guaranty .

Article 37 For granting a loan, the commercial bank shall conclude a written contract with the borrower. The contract shall stipulate
the type, purpose, amount and interest rate of the loan, the time limit for repayment, the method of repayment, liability for breach
of contract and other matters deemed necessary by the parties.

Article 38 Commercial banks shall determine loan interest rate in accordance with the upper and lower limits for loan interest rates
prescribed by the People’s Bank of China.

Article 39 When granting a loan, commercial banks shall abide by the following provisions on the control of assets-liabilities ratios:

(1) the capital adequacy ratio may not be lower than 8 percent;

(2) the ratio of the outstanding of loans to the outstanding of deposits may not exceed 75 percent;

(3) the ratio of the balance of floating assets to the balance of floating liabilities may not be lower than 25 percent;

(4) the ratio of the outstanding of loans granted to the same borrower to the balance of the capital of the commercial bank may not
exceed 10 percent; and

(5) other provisions of the banking regulatory authority under the State Council concerning the control of assets-liabilities ratios.

If, after the implementation of this Law, the assets-liabilities ratios of a commercial bank established prior to the implementation
of this Law are found not in conformity with the provisions of the preceding paragraph, the bank shall make it conform to the provisions
of the preceding paragraph within a certain time limit. The specific measures therefor shall be formulated by the State Council.

Article 40 Commercial banks may not grant fiduciary loans to their connections. The conditions for granting secured loans to their
connections may not be more preferential than those for granting the same type of loans to other borrowers.

For the purposes of the preceding paragraph, the term “connections” means:

(1) directors, supervisors, administrators and loan officers of the commercial bank and close relatives of such persons;

(2) companies, enterprises and other economic organizations in which the persons mentioned in the preceding paragraph have invested
or in which they hold senior administrative positions.

Article 41 No unit or individual may forcibly demand a commercial bank to grant a loan or to provide a guaranty. Commercial banks
shall have the right to refuse to grant a loan or to provide a guaranty forcibly demanded by any unit or individual.

Article 42 Borrowers shall repay the loan principal and the interest thereon on schedule.

If a borrower fails to repay a secured loan upon maturity, the commercial bank shall lawfully have the right to require the surety
to repay the loan principal and the interest thereon or the right to preferential compensation in respect of the collateral. Immovable
property or stock rights obtained by a commercial bank through the exercise of the right of mortgage or the right of pledge shall
be disposed of by it within two years from the date it obtains the same.

If a borrower fails to repay a fiduciary loan upon maturity, he shall bear liability in accordance with the provisions of the contract.

Article 43 No commercial banks may, within the territory of the People’s Republic of China, engage in trust investment or securities
business, or invest in immovable property which is not for private use, in non-banking financial institutions or in enterprises,
except where otherwise provided for in the regulations of the State.

Article 44 When handling matters of settlement such as acceptance or remittance of negotiable instruments or entrusted receipt of
payment, etc., commercial banks shall encash the instruments and enter receipts and expenditures in their accounts within the
specified time limits, and may not deliberately delay or withhold payment of bills and negotiable instruments or reject negotiable
instruments in violation of regulations. Regulations relating to the time limits for encashing of instruments and entering
of receipts and expenditures in the accounts shall be announced.

Article 45 To issue financial bonds or to raise loans from outside the People’s Republic of China, commercial banks shall first
submit applications for approval in accordance with the provisions of laws and administrative rules and regulations.

Article 46 Inter-bank lending shall be carried out in adherence to the regulations of the People’s Bank of China. It is forbidden
to use such loans for granting fixed assets loans or making investment.

Funds lent under such loans shall be limited to idle funds that remain after a sufficient reserve against deposit has been retained,
sufficient provision for payment has been made and matured loans from the People’s Bank of China have been repaid. Funds borrowed
under such loans shall be used to make up deficiencies in the settlement of negotiable instruments and in the funds available for
covering remittance differences with correspondent banks and to meet the temporary need for working capital.

Article 47 Commercial banks may not raise or lower interest rates in violation of regulations or use other improper means to take
in deposits or grant loans.

Article 48 Enterprises and institutions may select for themselves the place of business of a commercial bank where to open a basic
account for the day-to-day settlement of account transfers and for cash receipts and payments. They may not open more than one basic
account.

No unit or individual may open an account in the name of an individual to deposit the funds of a unit therein.

Article 49 The business hours of commercial banks shall be such as to be convenient to clients and shall be announced. Commercial
banks shall carry out business during announced business hours; they may not suspend business or shorten their business hours without
authorization.

Article 50 In carrying out business operations and providing services, commercial banks shall charge commissions in accordance with
relevant regulations. The items and rates for such commissions shall be specified by the banking regulatory authority under the State
Council and the People’s Bank of China based on their division of responsibilities, in conjunction with the department of pricing
under the State Council respectively.

Article 51 Commercial banks shall preserve their financial and accounting statements, business contracts and other materials in accordance
with relevant regulations of the State.

Article 52 Employees of commercial banks shall abide by laws and administrative rules and regulations and all other regulations for
the control of business operations; they may not:

(1) use their positions to demand, receive or accept bribes, or receive or accept rebates or commissions of any description in violation
of State regulations;

(2) use their positions to embezzle, misappropriate or seize money belonging to the bank or any client;

(3) practise favoritism towards relatives or friends in granting loans or providing guaranty in violation of regulations;

(4) hold a concurrent position in another economic organization; or

(5) commit other acts in violation of laws, administrative rules and regulations or other regulations for the control of business
operations.

Article 53 No employees of commercial banks may disclose State or business secrets that they come to know during their employment.

Chapter V

Financial Affairs and Accounting

Article 54 Commercial banks shall establish and perfect their own financial and accounting systems in accordance with laws, the uniform
accounting system of the State and the relevant regulations of the banking regulatory authority under the State Council.

Article 55 Commercial banks shall, in accordance with relevant State regulations, truthfully record and give a complete account of
their business activities and financial position, draw up annual financial and accounting reports and, without delay, submit them
to the banking regulatory authority under the State Council, the People’s Bank of China and the department of finance under the State
Council. Commercial banks may not establish any account books in addition to statutory account books.

Article 56 Within three months after the end of every fiscal year, commercial banks shall announce their business results and audit
reports for that year in accordance with the regulations of the banking regulatory authority under the State Council.

Article 57 Commercial banks shall, in accordance with relevant State regulations make allocations to a doubtful account reserve,
in order to set off doubtful accounts.

Article 58 The fiscal year of commercial banks shall commence on January 1 and end on December 31 of the Gregorian calendar.

Chapter VI

Supervision and Control

Article 59 Commercial banks shall, in accordance with relevant regulations, formulate their own operating rules, and establish and
perfect their systems for risk management and internal control.

Article 60 Commercial banks shall establish and perfect their own systems for examination and inspection of deposits, loans, settlements,
doubtful accounts, etc.

Commercial banks shall conduct routine examination, inspection and supervision with respect to their branches.

Article 61 Commercial banks shall, in accordance with relevant regulations, submit to the banking regulatory authority under the
State Council and the People’s Bank of China their balance sheets, profit accounts and other financial, accounting and statistical
statements and information.

Article 62 The banking regulatory authority under the State Council shall have the right at any time to carry out inspection of and
exercise supervision over the deposits, loans, settlements, doubtful accounts, etc. of commercial banks, in accordance with the provisions
of Chapters III, IV and V of this Law. When carrying out inspection and supervision, the inspectors and supervisors shall produce
their lawful identification papers. Commercial banks shall provide financial and accounting information, business contracts and other
information concerning operation and management in compliance with the requirements of the banking regulatory authority under the
State Council.

The People’s Bank of China shall have the power to inspect and supervise the commercial banks in accordance with the provisions of
Articles 32 and 34 of the Law of the People’s Republic of China on People’s Bank of China.

Article 63 Commercial banks shall, according to law, accept supervision by audit institutions through auditing.

Chapter VII

Assumption of Control and Termination

Article 64 When a commercial bank has suffered or will possibly suffer, credit crisis, thereby seriously affecting the interests
of the depositors, the banking regulatory authority under the State Council may assume control over the bank.

The purposes of assumption of control are, through taking such measures as are necessary in respect of the commercial bank over which
control is assumed, to protect the interests of the depositors and to enable the commercial bank to resume normal business. The debtor-creditor
relationship with regard to a commercial bank over which control is assumed shall not change as a result of the assumption of control.

Article 65 The assumption of control shall be decided upon, and its implementation shall be a

IMPLEMENTATION RULES FOR PROVISIONAL REGULATIONS OF THE ADMINISTRATION OF INTERNATIONAL NETWORKING OF COMPUTER INFORMATION

Implementation Rules for Provisional Regulations of the Administration of International Networking of Computer Information in the
PRC

Article 1 In accordance with Provisional Regulations of the Administration of international networking of Computer Information in
the People’s Republic of China (hereinafter referred to as Provisional Regulations), these Rules are formulated for the purpose of
strengthening the administration of the international networking of computer information and ensuring the healthy development of
the exchange of international information through computers.

Article 2 These Rules shall apply to the connection of computer information networks within the territory of the People’s Republic of China
with international networks.

Article 3 Following are the definitions of terms used in these Rules:

(1) International networking refers to the connection of computer inter- connected networks, specialized computer information networks,
corporate computer information networks and other computer information networks linked by special lines within the territory of People’s
Republic of China with foreign computer information networks.

(2) Access networks refer to computer information networks which are connected with international networks through interconnected
networks. Access networks can be those connected at multi-levels.

(3) International inward and outward channels refer to physical information channels required for international networking.

(4) Subscribers refer to individuals, legal persons and other organizations which connect their computers or networks with international
networks through access networks. Personal subscribers refer to individuals with account numbers for networking.

(5) Specialized computer information networks refer to those operated for the exclusive use of certain sectors.

(6) Corporate computer information networks refer to those operated within enterprises for internal use.

Article 4 The State shall develop an overall plan for the layout of international networking and the utilization of various resources. International
networking shall adopt technical codes, safety standards and policies on service charges set by the State in a unified form so that
the quality of the service can be improved. International networking shall subject itself to the administration by level, that is,
interconnected units, access units and subscribers are under the administration by level, and meanwhile international inward and
outward channels are subject to the unified administration. The State encourages fair competition in a good order in services related
to international networking and advocates resources sharing so as to promote the healthy development of international networking.

Article 5 The office of Leading Group for Information Technology Advancement under the State Council is responsible for organizing and coordinating
relevant departments in the formulation of regulations and standards for safety, operations, charges and services related to international
networking. The office shall check and supervise the enforcement of those regulations and standards.

Article 6 China Internet Information Center is responsible for the management of internet addresses, domain names and catalogues of network
resources and shall provide relevant information services.

Article 7 Computer information networks within the territory of China, when connected with international networks, must use international inward
and outward channels provided by the national public telecommunication network of the Ministry of Posts and Telecommunications.

No units and individuals are allowed to set up channels by themselves or use other channels for international networking.

Article 8 China Public Computer Interconnected Network, China Golden Bridge Information Network, China Education and Research Computer Network,
China Science and Technology Network are under the administration of Ministry of Posts and Telecommunications, Ministry of Electronic
Industry, State Education Commission and Chinese Academy of Sciences respectively. China Public Computer Interconnected Network and
China Golden Bridge Information Network are profit-making networks, while China Education and Research Computer Network and China
Science and Technology Network are non-profit-making ones.

Profit-making networks shall be given equal treatment on service rates and technical support.

Non-profit-making networks refer to those serving the public interest which are not operated for making profits.

Charges for the channel utilization of non-profit-making networks shall be collected at a preferential rate.

Article 9 With regard to the establishment of new interconnected networks, interconnected units must, after being approved by competent authorities
at ministerial level, submit their applications and feasibility reports to Leading Group for Information Technology Advancement under
the State Council. After examined by the Leading Group, applications and feasibility reports shall be submitted to the State Council
for approval.

Feasibility reports on interconnected networks shall mainly include the nature and scope of networking services, technical programs
of networking, economic analyses, management and safety measures, etc.

Article 10 Access networks must be connected with international networks through interconnected networks. International networking conducted
in other ways is prohibited.

Access units must meet the requirements stipulated in Article 9 of Provisional Regulations. Their applications and feasibility reports
on access networks shall be submitted to competent authorities or units charged with the administration of interconnected units.
The competent authorities or units shall inform applicants of their decision in a written form within 20 working days from the date
they receive applications.

Feasibility reports on access networks shall mainly include the nature and scope of networking services, technical program of networking,
economic analysis, management and safety measures, etc.

Article 11 Access units engaged in profit-making operations concerning international networking (hereinafter referred to as profit-making access
units) shall be subject to the administration of the system of international networking business licenses (hereinafter referred to
as business licenses). The pattern of business licenses shall be drawn up by Leading Group for Information Technology Advancement
under the State Council in a unified form.

Business licenses shall be issued by competent authorities charged with the administration of profit-making interconnected units and
shall be reported to Leading Group for Information Technology Advancement under the State Council for the record. Competent authorities
charged with the administration of interconnected units shall carry out the annual examination of profit-making access units.

Access units engaged in trans-provincial (or regional, municipal) operations shall apply to competent authorities charged with the
administration of profit-making interconnected units for international networking business licenses. Access units engaged in business
operations within their own provinces (or regions, municipalities) shall apply to competent authorities charged with the administration
of profit-making interconnected units or other competent authorities at the provincial level under their authorization for international
networking business licenses.

With business licenses issued by competent authorities, profit-making access units shall perform registration procedures with the
State administrative departments of industry and commerce and go through formalities with enterprises offering telecommunication
services for the connection of telecommunication lines. Those enterprises shall begin to provide telecommunication lines and other
related services to access units within 30 working days.

Article 12 Computers or computer information networks of individuals, legal persons and other institutional subscribers must be connected with
international networks through access networks. International networking conducted in other ways is prohibited.

Article 13 When applying to access units for international networking, subscribers shall submit valid identification papers and other supporting
documents and fill in subscribers’ registration forms.

Access units shall send a written reply to subscribers within 5 working days from the date they receive applications.

Article 14 In accordance with Provisional Regulations and these Rules, Ministry of Posts and Telecommunications shall formulate rules on the
administration of international networking inward and outward channels which shall be reported to Leading Group for Information Technology
Advancement under the State Council for the record.

In accordance with Provisional Regulations and these Rules, competent authorities or units charged with the administration of interconnected
units shall formulate rules on the administration of interconnected networks which shall be reported to Leading Group for Information
Technology Advancement under the State Council for the record.

Article 15 The pattern of application forms and subscribers’ registration forms shall be drawn up by competent authorities charged with the
administration of interconnected units in accordance with these Rules.

Article 16 Suppliers of international inward and outward channels shall be responsible for offering international inward and outward channels
as well as fair, excellent and safe services to interconnected units. They may collect charges for the use of channels at regular
intervals.

Interconnected units shall go through relevant formalities with suppliers of international inward and outward channels for the connection
or extension of international inward and outward channels which shall be reported to Leading Group for Information Technology Advancement
under the State Council for the record. Suppliers of international inward and outward channels shall provide channels to interconnected
units within 100 working days from the date they receive applications.

Suppliers of international inward and outward channels and interconnected units shall sign corresponding agreements and strictly perform
their respective duties and commitments.

Article 17 Suppliers of international inward and outward channels, interconnected units and access units must set up network management centers,
strengthen management systems and improve the safety management of network information.

Interconnected units shall sign agreements with access units so as to strengthen the management of their own networks and access networks;
carry out technical training and management education concerning international networking for access units; provide access units
with fair, excellent and safe services; and collect charges for networking from access units in accordance with relevant State regulations.

Access units shall subject themselves to the administration of interconnected units and access units at higher levels; sign agreements
with access units at lower levels and make subscription regulations with subscribers so as to strengthen the administration of access
units at lower levels and subscribers; carry out management education, technical consulting and training for access units at lower
levels and subscribers; provide access units at lower levels and subscribers with fair, excellent and safe services; and collect
charges from access units at lower level and subscribers in accordance with relevant State regulations.

Article 18 Subscribers shall subject themselves to the administration of access units and observe subscription regulations. They are forbidden
from entering certain computer systems without permission and illegally changing others’ information; distributing malicious information,
giving out information in other people’s names and violating others’ privacy through networks; developing and spreading computer
viruses and engaging in other activities in violation of legitimate rights and interests of networks and individuals.

Subscribers are enpost_titled to receiving services of various kinds from access units and obligated to pay relevant charges.

Article 19 Suppliers of international inward and outward channels, interconnected units and access units shall store all the data related to
their services. When the office of Leading Group for Information Technology Advancement under the State Council and other competent
authorities carry out examinations, they shall forward relevant data in a timely manner.

In every February, suppliers of international inward and outward channels and interconnected units shall submit reports about their
network operation, business development and organizational management in the previous year to the office of Leading Group for Information
Technology Advancement under the State Council.

Article 20 Interconnected units, access units and subscribers shall abide by relevant State laws and regulations and strictly observe rules
on safety and security. They are not allowed to engage in activities at the expense of State security and secrets and forbidden from
producing, retrieving, duplicating and spreading information that may disrupt public order and contain obscene and pornographic contents.
Harmful information, once detected, shall be reported immediately to relevant competent authorities and effective measures shall
be taken to prevent it from being spread.

Article 21 Specialized computer information networks which are connected with international networks are not allowed to engage in the business
operation of international networking. Corporate computer information networks and other networks which are connected with international
networks through special lines shall be operated for internal use only. Units in charge of the operation of specialized computer
information networks, corporate computer information networks and other networks which are connected with international networks
through special lines shall set up network operation centers, strengthen management systems and improve the safety management of
network information with reference to these Rules.

Article 22 Those who violate Article 7 and Item 1 of Article 10 of these Rules shall be ordered to terminate their networking activities by
public security departments and may be imposed a fine less than RMB 15,000. Unlawful incomes, if made, shall be confiscated.

Those who violate Article 11 of these Rules and engage in the business operation of international networking without business licenses
shall be given warning and required by public security departments to secure business licenses within a stated time. Those who do
not secure business licenses within the stated time shall be ordered to terminate their networking activities. Unlawful incomes,
if made, shall be confiscated.

If acting in violation of Article 12 of these Rules, individuals shall be imposed a fine less than RMB 5,000 and legal persons as
well as other institutional subscribers shall be given warning and imposed a fine less than RMB 15,000 by public security departments.

Those who violate Item 1 of Article 18 of these Rules shall be imposed punishment by public security departments in accordance with
relevant laws and regulations.

Those who violate Item 1 of Article 21 of these Rules shall be given warning and may be imposed a fine less than RMB 15,000 by public
security departments. Unlawful incomes, if made, shall be confiscated. Those who violate Item 2 of Article 21 of these Rules shall
be given warning and may be imposed a fine less than RMB 15,000 by public security departments. Unlawful incomes, if made, shall
be confiscated.

Article 23 Those who violate Provisional Regulations, these Rules and other relevant laws and regulations at the same time shall be imposed
punishment in accordance with relevant laws and regulations. They shall be prosecuted for criminal liabilities according to the law
for any crimes committed.

Article 24 These Rules shall also apply to computer networking with Hong Kong Special Administrative Region, Taiwan and Macao.

Article 25 These Rules shall go into effect as of the date of promulgation.

SPECIAL PROVISIONS OF THE STATE COUNCIL CONCERNING THE FLOATATION AND LISTING ABROAD OF STOCKS BY LIMITED STOCK COMPANIES

Special Provisions of the State Council Concerning the Floatation and Listing Abroad of Stocks by Limited Stock Companies

Article 1 This set of provisions has been formulated according to Article 85 and Article 155 of the “Company Law of the People’s Republic
of China” in order to meet the needs of the floatation and listing abroad of stocks by limited stock companies.

Article 2 Limited stock companies may issue their stocks to given or non-given investors and list them abroad with the approval of the Securities
Committee of the State Council.

The term “listing abroad” used in this set of provisions means to issue stocks to investors abroad and list them for transactions
and transfer on the stock exchanges by limited stock companies.

Article 3 The stocks issued and listed abroad (hereinafter referred to as “foreign capital stock listed abroad”) by limited stock companies
shall be in the form of inscribed stocks, with the per value indicated in Renminbi and subscribed to in foreign currencies.

The foreign capital stock listed abroad may be in the form of stock deposit receipts or in other derivations.

Article 4 The Securities Committee of the State Council or its supervision and management and executive organization the China Securities Supervision
and Management Committee may reach understanding or an agreement with securities supervision and management organizations abroad
to exercise cooperative supervision and management of the limited stock companies in their activities of issuing and listing their
stocks abroad and other relevant activities.

Article 5 A limited stock company wishing to issue and list its stocks abroad shall file a written application according to the requirements
by the Securities Committee of the State Council and submit it, together with relevant documents, to the Securities Committee of
the State Council for approval.

Article 6 If a State-owned enterprise or an enterprise with State-owned property occupying the dominant position is to be converted into a
limited stock company that will issue and list its stocks abroad according to the relevant regulations of the State, the number of
promoters may be less than five if it is incorporated by way of promotion. Such a limited stock company may issue new stocks as soon
as it is incorporated.

Article 7 The stocks issued to domestic investors (hereinafter referred to as “domestic capital stocks”) by a limited stock company (hereinafter
referred to as “company”) that has issued and listed its stocks abroad shall be in the form of inscribed stocks.

Article 8 The board of directors may make separate arrangements for the plan of issuing and listing foreign capital stocks and domestic capital
stocks approved by the Securities Committee of the State Council.

The plan for the issuing and listing of foreign capital stocks and domestic capital stocks worked out according to the provisions
in the preceding paragraph may be executed separately within 15 months starting from the date of approval by the Securities Committee
of the State Council.

Article 9 If a company issues foreign capital stocks and domestic capital stocks listed abroad within the total amount fixed in the stock issue
plan, it shall float them in full in one issue. If special circumstances prevent this from being realized, it may issue them in installments
with the approval of the Securities Committee of the State Council.

Article 10 If a company fails to issue all the stocks as planned in one issue, it is not allowed to issue new stocks not covered by the plan.
If a company needs to adjust the stock issue plan, the shareholders meeting shall adopt a resolution for the examination by the company
examination and approval department authorized by the State Council and the approval by the Securities Committee of the State Council.

The interval between the second issue of foreign capital stocks listed abroad by adding capital and the previous issue shall not be
less than 12 months.

Article 11 In issuing foreign capital stocks listed abroad within the total amount fixed in the stock issue plan, it may, with the approval
of the Securities Committee of the State Council, agree with the underwriter(s) in the underwriting agreement to reserve a certain
amount of stocks apart from the amount underwritten but the amount reserved shall not exceed 15% of the total amount planned to be
issued and listed abroad. The issue of the reserved shares is regarded as part of the same issue.

Article 12 A company shall reveal in full and detail the plan for separately issuing foreign capital stocks listed abroad and domestic capital
stocks in the prospectus for all issues. Rerevelation is required if the stock issue plan approved is altered.

Article 13 The Securities Committee of the State Council, together with the company examination and approval department, may provide specific
stipulations concerning the essential clauses in the articles of association of a company.

The articles of association of a company shall specify clearly the contents required by essential clauses. A company is not allowed
to alter or omit, without approval, the contents of the essential clauses in the articles of association.

Article 14 A company shall specify the term of its operation in the articles of association. The term of operation of a company may be extended
for ever.

Article 15 The articles of association of a company are binding to the company and its shareholders, directors, supervisors, managers and other
senior management personnel.

The company and its shareholders, directors, supervisors, managers and other senior management personnel all may apply for arbitration
or take legal proceedings according to the advocacy and rights provided for in the articles of association.

The term “senior management personnel” referred to in the first and second paragraphs of this article include people responsible for
the financial and accounting affairs of the company, secretaries of the board of directors and other people as provided for in the
articles of association.

Article 16 The names of investors abroad holding foreign capital stocks listed abroad and registered in the list of shareholders of a company
shall be the foreign capital stock holders abroad of the company.

Owners of the rights and interests of foreign capital stocks listed abroad may registered their shares under the names of nominal
shareholders according to the provisions of the laws of the place where the list of foreign capital stock holders is kept or the
place where the stocks are listed.

The list of foreign capital stock holders is the full evidence testifying the holding of the company’s foreign capital stocks, except
otherwise testified by opposite evidence.

Article 17 A company may keep the original list of its foreign capital stock holders abroad and entrust a foreign agency for its safekeeping
according to the understanding and agreement referred to in Article 4 of this set of provisions. The company shall keep the copy
of the list of foreign capital stock holders made by the foreign agency at the residence of the company. The entrusted foreign agency
shall ensure the all-time identity of the original and copy of the list of foreign capital stock holders.

Article 18 If an alteration of the list of foreign capital stock holders needs to be made according to judicial rulings, the ruling may be made
by the court exercising the jurisdiction over the place where the original of the list is kept.

Article 19 If a holder of foreign capital stocks lost his or her shares and applies for re-issue, the case may be handled according to the law
where the list of the foreign capital stock holders is kept, the rules of the stock exchange and other relevant regulations.

Article 20 In calling shareholders meetings, a company shall issue a written notice 45 days in advance to all the listed shareholders, specifying
the matters to be examined and discussed, the date and place of the meeting.

The shareholders planning to attend the shareholders meeting shall send back the reply in writing to the company 20 days before the
convocation of the meeting.

The specific format of the written notice and written reply shall be specified in the articles of association of a company.

Article 21 In its annual meeting of shareholders, the shareholders holding more than 5% of the voting stocks have the right to put forward new
bills in writing and the company should list the matters falling into the scope of the functions of the shareholders meeting into
the agenda of the meeting.

Article 22 A company shall count the number of voting stocks represented by shareholders according to the number of written replies received
on 20th day away from the shareholders meeting. If the number of voting stocks represented by shareholders planning to attend the
meeting has reached half of the total number of voting stocks, the company may call the shareholders meeting. If the number has not
reached half of the total number of voting stocks, the company should, within five days, inform the shareholders in the form of announcement
of the matters to be discussed and the date and place of the meeting. After the announcement is made, the company may call the shareholders
meeting.

Article 23 The directors, supervisors, managers and other senior management personnel of a company have the obligations of being honest, trustworthy
and industrious to the company.

The people listed in the preceding paragraph shall observe the articles of association of the company, faithfully perform their duties
and protect the interests of the company. They are not allowed to seek personal gains by abusing the positions and powers they hold
in the company.

Article 24 A company shall appoint an independent certified accountants office that conforms to the relevant regulations of the State to audit
its annual report and cross check other financial reports of the company.

The company shall provide relevant materials to the certified accountants office it has appointed and answer its inquires.

The period of appointment of a certified accountants office starts from the date when the first annual shareholders meeting ends to
the date when the next annual shareholders meeting ends.

Article 25 In dismissing or discontinuing the appointment of a certified accountants office, a company shall notify the said accountants office
in advance and the said accountants office has the right to make its statement to the shareholders meeting.

If a certified accountants office quits, it shall state to the shareholders meeting whether or not there is anything improper in the
company.

Article 26 The decision to appoint, dismiss or discontinue to appoint a certified accountants office shall be taken by the shareholders meeting
and the decision shall be submitted to the China Securities Supervision and Management Committee for the record.

Article 27 The dividends on foreign capital stocks and other relevant payments made to shareholders abroad shall be priced and announced in
Renminbi and paid in foreign currencies. The settlement of the capital raised by the company in foreign currencies and the foreign
exchange needed by a company to pay the stock dividends and make other payments to shareholders shall be handled according to the
provisions concerning the foreign exchange control of the State.

If the articles of association provide that the said payments shall be converted into foreign currencies and paid to shareholders
by other organizations, the provisions of the articles of association shall apply.

Article 28 The documents of information compiled by a company for revelation at home and abroad shall not be self-contradictory in contents.

If there are disparities between the information revealed at home, abroad or in different countries according to the domestic and
foreign laws and regulations and rules of stock exchanges, the company shall reveal the differences simultaneously at relevant stock
exchanges.

Article 29 The disputes arising from the matters relating to the contents of the articles of association and other affairs of the company between
foreign capital stock holders and the company, between foreign capital stock holders and the directors, supervisors and managers
of the company and between foreign capital stock holders and domestic capital stock holders shall be settled in the way provided
for in the articles of association.

The law of the People’s Republic of China shall apply in settling the disputes mentioned in the preceding paragraph.

Article 30 This set of provisions shall be implemented starting from the date of promulgation.

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Constitution

The basic law

Concluding and Transitional Provisions

CIRCULAR OF THE MINISTRY OF FINANCE ON DISTRIBUTING THE INTERIM MEASURES FOR ACCOUNTING PROCESS OF TAKING UP BUSINESSES RELATED TO FINANCING OF RECEIVABLE CREDITOR’S RIGHTS BETWEEN ENTERPRISES AND FINANCIAL ORGANIZATIONS LIKE BANKS

MEASURES FOR QUALIFICATION REGISTRATION OF GEOLOGICAL RECONNAISSANCE

PROVISIONS ON THE MANAGEMENT OF GREEN PASSAGEWAY SYSTEM FOR INSPECTION AND QUARANTINE OF EXPORT GOODS

Error

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON ADJUSTING THE EXPORT REBATE RATES

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON CARRYING THROUGH THE DECISION OF THE STATE COUNCIL ON REFORM OF THE EXISTING EXPORT TAX REFUND MECHANISM

MEASURES FOR THE ADMINISTRATION OF THE LANDING OF OVERSEAS SATELLITE TELEVISION CHANNELS

COMMERCIAL BANKS LAW

IMPLEMENTATION RULES FOR PROVISIONAL REGULATIONS OF THE ADMINISTRATION OF INTERNATIONAL NETWORKING OF COMPUTER INFORMATION

SPECIAL PROVISIONS OF THE STATE COUNCIL CONCERNING THE FLOATATION AND LISTING ABROAD OF STOCKS BY LIMITED STOCK COMPANIES

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