PEOPLE’S BANK OF CHINA LAW

Law of the People’s Republic of China on the People’s Bank of China



	(Adopted at the Third Session of the Eighth National People’s Congress on March 18, 1995, promulgated by Order No. 46 of the President of the People’s Republic of China on March 18, 1995, and amended in accordance with the Decision on Amending the Law of the People’s Republic of China on the People’s Bank of China adopted at the 6th Meeting of the Standing Committee of the Tenth National People’s Congress on December 27, 2003) Contents Chapter I General Provisions Chapter II Organization Structure Chapter III The Renminbi Chapter IV Business Operations Chapter V Financial Supervision and Control Chapter VI Financial Affairs and Accounting Chapter VII Legal Responsibility Chapter VIII Supplement Provisions Chapter I General Provisions Article 1 This Law is enacted in order to define the status and make clear the functions and responsibilities of the People’s Bank of China, ensure the correct formulation and implementation of the monetary policies of the State, establish and perfect a macro-control system through a central bank and maintain financial stability. Article 2 The People’s Bank of China is the central bank of the People’s Republic of China. The People’s Bank of China shall, under the leadership of the State Council, formulate and implement monetary policies, guard against and eliminate financial risks, and maintain financial stability. Article 3 The aim of monetary policies shall be to maintain the stability of the value of the currency and thereby promote economic growth. Article 4 The People’s Bank of China shall perform the following functions and responsibilities: (1)to promulgate and carry out the orders and regulations related to its functions and responsibilities; (2)to formulate and implement monetary policies in accordance with law; (3)to issue Renminbi ( RMB ) and control its circulation; (4)to supervise and administer the inter-bank lending market and the inter-bank bond market; (5)to exercise control of foreign exchange and supervise and administer the inter-bank foreign exchange market; (6)to supervise and administer the gold market; (7)to hold, administer and manage the State foreign exchange reserve and gold reserve; (8)to manage the State Treasury; (9)to maintain the normal operation of the system for making payments and settling accounts; (10)to guide and make plans for the fight against money laundering in the banking industry, and to be responsible for monitoring the use of the funds earmarked for the fight against money laundering; (11)to be responsible for statistics, investigation, analysis and forecasting concerning the banking industry; (12)to engage in relevant international banking operations in its capacity as the central bank of the State; and (13)other functions and responsibilities prescribed by the State Council. To implement monetary policies, the People’s Bank of China may carry out financial operations in accordance with the relevant provisions of Chapter IV of this Law. Article 5 The People’s Bank of China shall report its decisions to the State Council for approval concerning the annual money supply, interest rate, foreign exchange rates and other important matters specified by the State Council before they are implemented. The People’s Bank of China shall immediately implement decisions on monetary policies for matters other than those specified by the State Council for the record. Article 6 The People’s Bank of China shall submit to the Standing Committee of the National People’s Congress work reports concerning matters of monetary policies and the operations of the banking industry. Article 7 The People’s Bank of China shall, under the leadership of the State Council, implement monetary policies, perform its functions and carry out its business operations independently according to law and be free from intervention by local governments, government departments at various levels, public organizations or individuals. Article 8 All capital of the People’s Bank of China is invested by the State and owned by the State. Article 9 The State Council shall establish a coordinating mechanism for financial supervision and administration. The specific measures therefor shall be formulated by the State Council. ChapterII Organizational Structure Article 10 The People’s Bank of China shall have a Governor and a certain number of Deputy Governors. The candidate for the Governor of the People’s Bank of China shall be nominated by the Premier of the State Council and decided by the National People’s Congress; when the National People Congress is not in session, the Governor shall be decided by the Standing Committee of the National People’s Congress and appointed or removed by the President of the People’s Republic of China. The Deputy Governors of the People’s Bank of China shall be appointed or removed by the Premier of the State Council. Article11 The People’s Bank of China shall practice a system wherein the Governor shall assume overall responsibility. The Governor shall direct the work of the People’s Bank of China, the Deputy Governors shall assist the Governor in his or her work. Article12 The People’s Bank of China shall establish a monetary policy committee, whose functions, composition and working procedures shall be prescribed by the State Council and reported to the Standing Committee of the National People’s Congress for the record. The monetary policy committee of the People’s Bank of China shall play an important role in the State macro-control and the formulation and adjustment of monetary policies. Article13 The People’s Bank of China shall establish branches as its representative organs in light of the need of performing its functions and responsibilities and exercise unified leadership and administration with respect to its branches. The branches of the People’s Bank of China shall, as authorized by the People’s Bank of China, maintain financial stability in their respective districts and handle relevant business operations. Article 14 The Governor, Deputy Governors and other staff members of the People’s Bank of China shall scrupulously abide by their duties; they may not abuse their power or conduct malpractice for private ends and they may not assume concurrent positions in any other banking institutions, enterprises or foundations. Article 15 The Governor, Deputy Governors and other staff members of the People’s Bank of China shall safeguard State Secrets according to law and be obligated to safeguard the secrets of the banking institutions and parties concerned with their implementation of their functions and responsibilities. Chapter III The Renminbi Article 16 The legal tender of the People’s Republic of China is the Renminbi (RMB). When Renminbi is used to repay all public or private debts within the territory of the People’s Republic of China, no units or individuals may refuse to accept it. Article 17The unit of the Renminbi is the yuan and the units of the fractional currency of the Renminbi are the jiao and the fen. Article 18 The Renminbi shall be printed and issued solely ny the People’s Bank of China. When putting forth a new Renminbi issue, the People’s Bank of China shall make known to the public the issuing date, face values, designs, patterns and specifications. Article 19 It is prohibited to counterfeit or alter Renminbi. It is prohibited to sell or purchase counterfeit or altered Renminbi. It is prohibited to transport, hold or use counterfeit or altered Renminbi. It is prohibited to deliberately destroy or damage the Renminbi. It is prohibited to illegally use the parttens of Renminbi in propaganda materials, publications or other commodities. Article 20 No units or individuals may print or sell promissory notes as substitutes for Renminbi to circulate on the market. Article 21The damaged or soiled Renminbi shall be exchanged in accordance with the regulations of the People’s Bank of China, which shall also be responsible to recall and destroy such Renminbi. Article 22 The People’s Bank of China shall establish a Renminbi issue treasuries at its branches. The subsidiary issue treasuries shall, in allocating Renminbi issue fund, act on the order of allocation from their superior treasury. No units or individuals may use the issue fund in violation of regulations. Chapter IV Business Operations Article 23 To implement monetary policies, the People’s Bank of China may apply the following monetary policy instruments: (1) to require a financial institution of the banking industry to place a deposit reserve at a prescribed ratio; (2) to fix the base interest rates for the central bank; (3) to handle rediscount for financial institutions of the banking industry that have opened accounts in the People’s Bank of China; (4) to provide loans for commercial banks; (5) to deal in State bonds, other government bonds, and financial bonds and foreign exchange on the open market; and (6) other monetary policy instruments decided by the State Council. When applying the monetary policy instruments listed in the preceding paragraph to implement monetary policies, the People’s Bank of China may work out specific requirements and procedures. Article 24The People’s Bank of China shall manage he State treasury in accordance with laws and administrative rules and regulations. Article 25 The People’s Bank of China may, on behalf of the financial department under the State Council, issue to financial institutions, and honour State bonds and other government bonds. Article 26 The People’s Bank of China may open accounts for financial institutions of the banking industry as needed, but may not allow them to overdraw. Article 27 The People’s Bank of China shall organize or assist in organizing a clearing system among financial institutions of the banking industry, coordinate the efforts of such institutions in matters of clearing and provide services in this regard. The specific measures therefor shall be formulated by the People’s Bank of China. The People’s Bank of China shall, in conjunction with the banking regulatory authority under the State Council, formulate regulations on payment and clearing. Article 28 The People’s Bank of China may, as required by the implementation of monetary policies, determine the amounts, term, interest rates and forms of loans extended to commercial banks, however, the maximum term of loans shall not exceed one year. Article 29 The People’s Bank of China may not make an overdraft for the government, and may not directly subscribe or underwrite State bonds or other government bonds. Article 30 The People’s Bank of China may not provide loans to the local governments or government departments at various levels, to non-banking institutions, other units or individuals, with the exception of the specific non-banking institutions as decided by the State Council. The People’s Bank of China may not provide guaranty for any unit or individual. Chapter V Financial Supervision and Control Article 31 The People’s Bank of China shall, in accordance with law, monitor the operation of the financial markets, conduct macro-control of such markets and promote their coordinated development. Article 32 The People’s Bank of China shall have the power to inspect and supervise the following activities of the financial institutions and other units and individuals: (1) implementation of the regulations for control of deposit reserve; (2)activities related to the special loans of the People’s Bank of China; (3)implementation of the regulations for control of Renminbi; (4)implementation of the regulations for control of the inter-bank lending market and the inter-bank bond market; (5)implementation of the regulations for control of foreign exchange; (6)implementation of the regulations for control of gold; (7)management of the State Treasury on behalf of the People’s Bank of China; (8)implementation of the regulations for control of clearing; and (9)implementation of the regulations against money laundering. The special loan mentioned in the preceding paragraph are loans granted, upon decision by the State Council, by the People’s Bank of China for special purposes. Article 33 The People’s Bank of China may, according to the need to implement monetary policies and maintain financial stability, propose that the banking regulatory authority under the State Council inspect and supervise the financial institutions of the banking industry. The said authority shall, within thirty days from the date it receives the proposal, make a reply. Article 34 When financial institutions of the banking industry have difficulties in making payment that may trigger off financial risks, the People’s Bank of China shall, with a view to maintaining financial stability, have the power to inspect and supervise the financial institutions of the banking industry with the approval of the State Council. Article 35 The People’s Bank of China shall, according to the need to fulfill its functions and responsibilities, have the power to demand the financial institutions of the banking industry to submit the necessary balance sheets, statements of profit and other financial and accounting reports, statistical reports and information. The People’s Bank of China, the banking regulatory authority under the State Council and the other financial regulatory institutions under the State Council shall establish a mechanism to share supervisory information. Article 36 The People’s Bank of China shall be responsible for compiling unified statistics and accounting statements from the national banking system and shall publish them in accordance with relevant regulations of the State. Article 37 The People’s Bank of China shall establish and perfect system for its own examination and inspection and strengthen its own supervision and administration. Chapter VI Financial Affairs and Accounting Article 38 The People’s Bank of China shall exercise independent control over its financial budget. The budget of the People’s Bank of China shall be incorporated in the central budget after it has been examined and verified by the financial department under the State Council and the implementation thereof shall be subject to supervision of the financial department under the State Council. Article 39 The People’s Bank of China shall, after withdrawing funds for its general reserve at a proportion determined by the financial department under the State Council, turn over to the State treasury the entire net profit remaining from its income in an accounting year minus its expenditures in the same period. Losses sustained by the People’s Bank of China shall be made up by appropriations from the State treasury. Article 40 The financial receipts and payments and accounting affairs of the People’s Bank of China shall be governed by laws, administrative regulations and unified State financial and accounting systems and be subject to the auditing and supervision conducted, in accordance with law, separately by the audit institution and the financial department under the State Council. Article 41The People’s Bank of China shall, within three months after the end of every accounting year, compile balance sheets of its assets, statements of profit and loss and relevant financial and accounting reports, prepare its annual report and publish them in accordance with relevant regulations of the State. The fiscal year of the People’s Bank of China begins on the first day of January and ends on the thirty-first day of December of the Gregorian calendar. Chapter VII Legal Responsibility Article 42 Anyone who counterfeits or alters Renminbi, sells counterfeit or altered Renminbi or knowingly transports counterfeit or altered Renminbi, which is serious enough to constitute a crime, shall be investigated for criminal responsibility in accordance with law; if the case is not serious enough to constitute a crime, he shall be put in detention for not more than 15 days and fined not more than 10,000 yuan by a public security organ. Article 43 Anyone who buys counterfeit or altered Renminbi or knowingly holds or uses counterfeit or altered Renminbi, which is serious enough to constitute a crime, shall be investigated for criminal responsibility in accordance with law; if the case is not serious enough to constitute a crime, he shall be put in detention for not more than 15 days and fined not more than 10,000 yuan by a public security organ. Article 44 If anyone illegally uses the patterns of Renminbi in propaganda materials, publications or other commodities, the People’s Bank of China shall order him to set it right and shall destroy the illegally used patterns of Renminbi, confiscate the illegal gains and impose a fine of not more than 50,000 yuan. Article 45 If anyone prints or sells promissory notes as substitutes for Renminbi to circulate on the market, the People’s Bank of China shall order him to cease his illegal act and impose a fine of not more than 200,000 yuan. Article 46 Where in relevant laws and administrative regulations there are provisions governing punishment for violations in respect of the activities as are listed in Article 32 of this Law, punishment shall be meted out in accordance with those provisions; where in such laws and administrative regulations there are no provisions governing such punishment, the People’s Bank of China shall, on the merits of each case, give a disciplinary warning, confiscate the unlawful gains, or if the unlawful gains exceed 500,000 yuan, shall, in addition, impose a fine of not less than the amount of such gains but not more than five times that amount; if there are no unlawful gains or if such gains are less than 500,000 yuan, it shall impose a fine of not less than 500,000 yuan but not more than 2,000, 000 yuan. The director or senior manager who is directly in charge or any other person who is directly responsible shall be given a disciplinary warning and be fined not less than 50,000 yuan but not more than 500,000 yuan. If a crime is constituted, criminal responsibility shall be investigated in accordance with law. Article 47 If any party refuses to accept the administrative punishment, he may institute an administrative lawsuit in accordance with the Administrative Procedure Law of the People’s Republic of China. Article 48 If the People’s Bank of China commits any of the following acts, the persons directly in charge and other persons directly responsible for the offense shall be subject to administrative sanctions according to law; if the case constitutes a crime, the offenders shall be investigated for criminal responsibility according to law: (1) to provide a loan in violation of the provisions in the first paragraph of Article 30; (2) to provide guaranty for a unit or individual; or (3) to use the issue fund without authorization. If any of the acts specified in the preceding paragraph results in losses, the persons directly in charge and other persons directly responsible for the offense shall be partially or wholly liable for the losses. Article 49 If a local government or a government department at any level, a public organization or an individual forcibly demands the People’s Bank of China or its staff member to provide a loan or a guaranty in violation of the provisions in Article 30, the persons directly in charge and other persons who are directly responsible for the offense shall be subject to administrative sanctions in accordance with the law; if the case constitutes a crime, the offenders shall be investigated for criminal responsibility according to law; if losses are caused, the offenders shall be partially or wholly liable for the losses. Article 50 If any staff member of the People’s Bank of China divulges State secrets or the business secrets he knows, which is serious enough to constitute a crime, he shall be investigated for criminal responsibility according to law; if the case is not serious enough to constitute a crime, he shall be subject to administrative sanction according to law. Article 51 If any staff member of the People’s Bank of China commits embezzlement, accepts bribes, conducts malpractices for personal ends, abuses his power or neglects his duty, which is serious enough to constitute a crime, he shall be investigated for criminal responsibility according to law; if the case is not serious enough to constitute a crime, he shall be subject to administrative sanction according to law. Chapter VIII Supplementary Provisions Article 52 For purposes of this law, the financial institutions of the banking industry are financial institutions established within the territory of the People’s Republic of China that take in deposits from the general public, including, among others, commercial banks, urban credit cooperatives and rural credit cooperatives, and policy banks. The provisions of this Law pertaining to financial institutions of the banking industry are applicable to the assets management companies, trust and investment companies, financial companies and financial leasing companies established within the territory of the People’s Republic of China and other financial institutions established with the approval of the banking regulatory authority under the State Council. Article 53 This Law shall be effective on the date of promulgation.

INTERIM PROVISIONS OF SHANGHAI MUNICIPALITY ON THE ADMINISTRATION OF REAL ESTATE AGENTS

Interim Provisions of ShangHai Municipality on the Administration of Real Estate Agents

CHAPTER I GENERAL PROVISIONS CHAPTER II APPLICATION CONDITIONS AND PROCEDURES CHAPTER III MANAGEMENT OF BROKERAGE CHAPTER IV PUNISHMENT
PROVISIONS CHAPTER V SUPPLEMENTARY PROVISIONS

Article 1 These Provisions are formulated in order to develop and standardize the real estate market of this city and strengthen the management
of the broking activities in real estate.

Article 2 The broking activities in real estate mentioned in these Provisions refers to the business activities for providing such services
as intermediate introduction, agency, consultation, etc. on payment of fees to the clients who are engaged in the development, transference,
mortgage or lease of real estate (hereinafter called the client concerned). But the broking activities for transferring the right
to use state-owned land are excluded.

The real estate agent mentioned in these Provisions refers to an organization or an individual who is qualified as a real estate agent,
has been approved to register at the industry and commerce administration department, and has received the business licence to undertake
broking activities in real estate.

Article 3 These Provisions shall apply to all the real estate agents undertaking broking activities in real estate in this city.

Real estate agents who have not registered in this city are not allowed to undertake broking activities in real estate in this city.

Article 4 The Municipal Real Estate Administration and the Municipal Industry and Commerce Administration are competent authorities for administering
broking activities in real estate in this city. The district or county real estate administration and the Pudong New Area real estate
administration department (hereinafter referred to as the district or county real estate administration department) and the district
or county industry and commerce administration are the competent authorities for administering broking activities in their respective
administrative divisions.

The municipal, district or county real estate trading administration departments are in charge of the daily routine in the administration
of real estate agents.

CHAPTER II APPLICATION CONDITIONS AND PROCEDURES

Article 5 Those who have reached the age of 18, have this city’s registered permanent residence, have acquired the education of senior middle
school or up, and have undergone the unified trainings organized by the Municipal Real Estate Administration, passed its examinations,
and received the “Qualification Certificate for Shanghai Real Estate Agent” issued by the Municipal Real Estate Administration may
apply for undertaking broking activities in real estate. But those who are not allowed to hold concurrent posts according to the
provisions of the State and this city are excluded.

Article 6 The applicant to establish a real estate broking organization shall have the following qualifications:

1. Having 5 persons or more who have received the “Qualification Certificate for Shanghai Real Estate Agent”;

2. Having a capital of RMB 100,000 or more;

3. Having the articles of association with a definite business aim;

4. Having a fixed place of business.

Article 7 The applicant to become a private real estate agent shall have the following qualifications:

1. Having received the “Qualification Certificate for Shanghai Real Estate Agent”;

2. Having a capital of RMB 20,000 or more, or the property security worth RMB 20,000 or more provided by his guarantor;

3. Having a fixed place for broking activities;

4. Having had no criminal record in the 3 years previous to his application.

Article 8 An applicant to become a real estate agent shall apply for registration to the industry and commerce administration department in
his business location. The industry and commerce administration department shall approve his registration if the conditions in these
Provisions are met, and shall grant him the business licence, while for those who do not meet the conditions in these Provisions,
no registration shall be granted.

Within 30 days after receiving the business licence, the real estate agent shall report it for the record to the district or county
real estate trading administration department in the place where the industry and commerce registration organization is located.

Article 9 The “Qualification Certificate for Shanghai Real Estate Agent” is to be verified by the issuing organization every two years. Those
who fail to pass the verification or do not take part in the verification without any reason must not be allowed to undertake broking
activities in real estate.

CHAPTER III MANAGEMENT OF BROKERAGE

Article 10 The real estate broking activities of a real estate broking organization must be conducted by its personnel who have received the
“Qualification Certificate for Shanghai Real Estate Agent”.

The personnel who have the “Qualification Certificate for Shanghai Real Estate Agent” must conduct broking activities in real estate
in the name of a real estate agent.

Article 11 A real estate agent shall sign a real estate brokerage contract with the client concerned when providing the latter with such services
as intermediate introduction, agency, or consultation on entrusted items.

A real estate brokerage contract shall include the following main points:

1. Object (items for brokerage);

2. Requirements and standards for the brokerage items;

3. Time limit of the fulfillment of the contract;

4. The amount of service fee and mode of payment

ADMINISTRATIVE RULES FOR THE REPORTING BY FINANCIAL INSTITUTIONS OF LARGE-VALUE AND SUSPICIOUS FOREIGN EXCHANGE TRANSACTIONS

Decree of the People’s Bank of China

No.3

In accordance with the Law of the People’s Republic of China on the People’s Bank of China and other laws and regulations, the Administrative
Rules for the Reporting by Financial Institutions of Large-Value and Suspicious Foreign Exchange Transactions has been adopted at
the 7th executive meeting on September 17, 2002, and is hereby promulgated for implementation as of March 1, 2003.
President of the People’s Bank of China Zhou Xiaochuang

January 3, 2003

Administrative Rules for the Reporting by Financial Institutions of Large-Value and Suspicious Foreign Exchange Transactions

Article 1

These Rules are formulated in accordance with Regulations of the People’s Republic of China on Foreign Exchange Administration and
other regulations in order to monitor large-value and suspicious foreign exchange transactions.

Article 2

Financial institutions located in the territory of China that run foreign exchange business (hereinafter referred to as financial
institutions) shall report, in accordance with these Rules, to foreign exchange administration authorities large-value and suspicious
foreign exchange transactions.

Large-value foreign exchange transaction refers to foreign exchange transactions above a specified amount made by transactions parties
in any form of settlement through financial institutions.

Suspicious foreign exchange transaction refers to foreign exchange transaction with abnormal amount, frequency, source, direction,
use or any other such nature.

Article 3

State Administration of Foreign Exchange and its branches (hereinafter referred to as SAFE) are responsible for supervising and administering
the reporting of large-value and suspicious foreign exchange transactions.

Article 4

When opening foreign exchange accounts for customers, financial institutions shall abide by Rules on Using Real Name for Opening
Individual Deposit Account and Rules on Administration of Foreign Exchange Account within the Territory of People’s Republic of China
and shall not open anonymous foreign exchange accounts or accounts in obviously fictitious names for their customers.

When processing foreign exchange transactions for customers, financial institutions shall verify information about the customer’s
real identity, including the name of work unit, name of the legal representative or person-in-charge, ID and its number, supporting
documents for account opening, organization registration code, address, registered capital, business scope, size of business operation,
average daily transaction volume of the account and in the case of an individual customer, name of the depositor, ID and its number,
address, occupation, household income and other information about the customer’s family.

Article 5

Financial institutions shall record all large-value and suspicious foreign exchange fund transactions and keep the record for a minimum
of five years as of the day of transaction.

Article 6

Financial institutions shall establish and improve internal anti-money laundering post responsibility system, formulate internal
anti-money laundering procedure and, have specified staff record, analyze and report large-value and suspicious foreign exchange
transactions.

Article 7

Financial institutions shall not disclose to any agency or individual information about large-value and suspicious foreign exchange
transactions, unless otherwise provided for by laws.

Article 8

The following foreign exchange transactions constitute large-value foreign exchange transactions:

(1)

Any single deposit, withdrawal, purchase or sale of foreign exchange cash above US$10,000 or its equivalent, or the accumulated amount
of multiple deposit, withdrawal, purchase or sale transactions of foreign exchange within one day above US$10,000 or its equivalent;

(2)

Foreign exchange non-cash receipt and payment transactions made through transfer, bills, bank card, telephone-banking, internet banking
or other electronic transactions or other new financial instruments in which a single transaction volume or accumulated transaction
volume within one day exceeding US$100,000 or its equivalent by individual customers, and in the case of corporate customers, a single
transaction volume or accumulated transaction volume within one day exceeding US$500,000 or its equivalent.

Article 9

The following foreign exchange transactions constitute suspicious foreign exchange cash transactions:

(1)

Frequent deposit and/or withdrawal of large amount of foreign exchange cash from an individual bankcard or individual deposit account
that are apparently not commensurate with the identity of or use of fund by the cardholder or account owner;

(2)

An individual resident transferring to or withdrawing cash in large amount in a foreign country after depositing large amount of foreign
exchange cash in a bankcard in China;

(3)

Frequent depositing, withdrawal or sale of foreign exchange through an individual foreign exchange cash account below the SAFE validated
threshold;

(4)

Non-resident individual requiring banks to open traveler’s check or draft to convert large amount of foreign exchange cash he/she
has brought into China in order to take the fund out of China;

(5)

Frequently depositing large amount of foreign exchange cash in a bankcard held by non-resident individual;

(6)

Frequent and large-amount fund movement through a corporate foreign exchange account not commensurate with the business activities
of the account owner;

(7)

Regular and large-amount cash deposit into a corporate foreign exchange account without withdrawal of large amount of cash from the
said account;

(8)

An enterprise frequently receiving export proceeds in cash that is apparently not commensurate with the range and size of its business;

(9)

The RMB fund that an enterprise uses to buy foreign exchange for overseas investment is mostly in cash or has been transferred from
a bank account not belonging to the said enterprise;

(10)

The RMB fund that a foreign-funded enterprise uses to buy foreign exchange for repatriation of profit is mostly in cash or has been
transferred from a bank account not belonging to the said enterprise;

(11)

A foreign-funded enterprise making investment in foreign exchange cash.

Article 10

The following foreign exchange transactions constitute suspicious foreign exchange non-cash transactions:

(1)

Foreign exchange account of an individual resident frequently receiving fund from domestic accounts that are not under the same name;

(2)

An individual resident frequently receiving large amount of foreign exchange remittance from abroad before remitting the total amount
out in the original denomination, or frequently remitting foreign exchange fund of the same denomination that is transferred from
abroad in large amount;

(3)

Non-resident individual frequently receiving remittance in large amount from abroad, especially from countries (regions) with serious
problems of narcotics production and trafficking;

(4)

Foreign exchange account of a resident or non-resident individual with a regular pattern of receiving large amount of fund which is
withdrawn in several transactions the next day, and then receiving large amount of fund again which is withdrawn in several transactions
the next day;

(5)

An enterprise making frequent and large advance payment for import and commission under trade account below the SAFE validated threshold
through its foreign exchange account;

(6)

An enterprise frequently receiving, through its foreign exchange account, export payment in bills (such as check, draft and promissory
note) in large amount;

(7)

Dormant foreign exchange accounts or foreign exchange accounts usually with no large fund movement suddenly receiving abnormal foreign
exchange fund inflow, and the inflow gradually becoming larger in a short period of time;

(8)

An enterprise having frequent and large amount fund transactions through its foreign exchange account not commensurate with the nature
and size of its business operation;

(9)

The foreign exchange account of an enterprise becoming inactive abruptly following frequent and large amount inflow and outflow of
fund;

(10)

Frequent fund movement through the foreign exchange account of an enterprise in amounts divisible by thousand;

(11)

Rapid inflow and outflow of fund through the foreign exchange account of an enterprise, the amount of which is big within one day
but the outstanding balance of the account is very small or nil;

(12)

The foreign exchange account of an enterprise remitting abroad the bulk of balance received in multiple small amount electronic transfers,
check or draft deposits;

(13)

A domestic enterprise opening an offshore account in the name of an overseas legal person or natural person, and the said offshore
account experiencing regular fund movement;

(14)

An enterprise remitting fund to many domestic residents through an offshore account and surrendering foreign exchange to banks in
the name of donation, the transfer of fund and foreign exchange sales all done by one person or few persons;

(15)

The annual expatriation of profit by a foreign-funded enterprise exceeding the amount of originally invested equity by a large margin
and obviously not commensurate with its business operation;

(16)

A foreign-funded enterprise rapidly moving the fund abroad in a short period of time after receiving the investment, which is not
commensurate with the payment demand of its business operation;

(17)

Offsetting deposit and loan transactions with affiliates or connected companies of financial institutions located in regions with
serious smuggling, drug trafficking or terrorist activities or other crimes;

(18)

Securities institutions ordering banks to transfer foreign exchange fund not for the purpose of securities dealing or settlement;

(19)

Securities institutions that engages in B share trading business frequently borrowing large amount of foreign exchange fund through
banks; and

(20)

Insurance institutions frequently making compensation payment in large amount to or discharging insurance in large amount for the
same overseas policy holder through banks.

Article 11

Financial institutions shall report the large-value or suspicious foreign exchange fund transactions as defined by Articles 8, 9
and 10 monthly in hard copy as well as in electronic copy.

Article 12

Financial institutions shall examine the following foreign exchange cash transactions and report promptly any discovery of suspected
money laundering in hard copy with relevant documents attached.

(1)

Amount of expenditure of foreign exchange account roughly tallying with the amount of deposit in the previous day;

(2)

Depositing foreign exchange or renminbi cash in many transactions in the foreign exchange deposit accounts of other individuals and
receiving at the same time renminbi or foreign exchange of equivalent amount;

(3)

An enterprise frequently purchasing foreign exchange with renminbi cash.

Article 13

Financial institutions shall conduct verification over the following non-cash foreign exchange transactions, and shall promptly report
any discovering of suspected money laundering activity and attach related files to the superior authorities:

(1)

An individual resident frequently switching from one denomination to another when conducting foreign exchange transactions apparently
with no profit-seeking purpose;

(2)

An individual resident asking a bank to issue traveler’s check or draft after frequently receiving foreign exchange remittance from
abroad;

(3)

A non-resident individual frequently ordering traveler’s check or cashing traveler’s check or draft in large amount through foreign
exchange account;

(4)

When opening foreign exchange account, an enterprise declining to provide supporting documents or general information on different
occasions;

(5)

An enterprise group making internal foreign exchange fund transfer exceeding the volume of actual business operation;

(6)

An enterprise providing incomplete documents when surrendering to or purchasing foreign exchange from a bank, or the amount of buying
or selling suddenly expanding, selling and buying becoming more frequent, or the amount of foreign exchange sold to the bank apparently
exceeding the normal level of its business operation;

(7)

When entering an item of export revenue into an account in a bank, an enterprise failing to provide valid documents but frequently
collecting foreign exchange sales statement (for verification purpose), or rejecting to provide valid documents but frequently collecting
foreign exchange sales statement (for verification purpose);

(8)

An enterprise frequently receiving foreign exchange, making foreign exchange payment or frequently selling foreign exchange to banks,
all in large amount, for the purpose of donation, advertising, sponsoring conference or exhibition, which is apparently not commensurate
with its range of business;

(9)

An enterprise frequently receiving foreign exchange, making foreign exchange payment, or frequently selling foreign exchange to banks,
all in large amount, for the purchase of buying or selling technology or trade mark right or other intangible assets, which is apparently
not commensurate with its range of business;

(10)

Freight, premium and commission paid by an enterprise apparently not commensurate with its import and export trade;

(11)

An enterprise often depositing traveler’s check or foreign exchange draft, especially those issued abroad and not commensurate with
its business operation;

(12)

An enterprise suddenly paying its overdue foreign exchange loan in full with fund whose source is unspecified or not commensurate
with the background of the said enterprise;

(13)

An enterprise applying for a loan guaranteed by assets or credit belonging to itself or a third party, the source of which is unspecified
or not commensurate with the background of the customer;

(14)

Raising fund abroad through letter of credit with no foreign trade background or other means;

(15)

An enterprise knowingly conducting loss-making sales or purchase of foreign exchange;

(16)

An enterprise seeking to conduct a swap between the local currency and foreign currency for a fund whose source and use is unspecified;

(17)

The capital invested by the foreign partner of a foreign-funded enterprise exceeding the approved amount or direct external borrowing
of a foreign-funded enterprise being remitted from a third country where there is no connected enterprise;

(18)

Local currency fund converted from capital invested by the foreign partner of a foreign-funded enterprise or external borrowing being
diverted to bank accounts for securities and other investment, which is not commensurate with its business operation;

(19)

Fund movement in and out of the foreign exchange cash account of an financial institution apparently not commensurate with the size
of the deposit in the account, or the fluctuation of fund movement apparently exceeding the change in the size of deposit;

(20)

Fund movement of the internal foreign exchange transaction accounts of a financial institution apparently not commensurate with its
daily business operation;

(21)

Fund movement of the inter-bank foreign exchange transaction account, onshore and offshore business transaction account, or account
for transactions with overseas affiliates apparently not commensurate with the daily business operation of the financial institution;

(22)

Foreign exchange credit or settlement between a financial institution and its connected enterprises fluctuating by a large margin
within a short period of time;

(23)

A financial institution buying an insurance policy with large value foreign currency cash; and

(24)

Any foreign exchange fund transaction being suspected with proper reasons by the staff of a bank or other financial institutions as
money laundering.

Article 14

Tier-one branches located in provincial capital, capital of autonomous region and municipality directly under the central government
of a financial institution shall act as the major reporting unit and the head office of the financial institution shall designate
a major reporting unit if there is no such branch in these places.

Sub-branches and offices of a financial institution shall report, within the first five work days of every month, large-value and
suspicious foreign exchange fund transactions of the preceding month through their superior office to the major reporting unit and
at the same time to the local branch office of SAFE.

Each major reporting unit shall summarize large-value and suspicious foreign exchange fund transactions that take place in the province,
autonomous region or municipality directly under Central Government in the preceding month and report, within the first 15 work days
of every month, to the local branch office of SAFE.

The head office of each financial institution shall report, within the first five days of every month, large-value and suspicious
foreign exchange fund transactions that take place within the head office in the preceding month to the local branch office of SAFE.

Article 15

When a financial institution discovers suspected crime during the examination and analysis of large-value and suspicious foreign
exchange fund transactions, it shall report to the local public security authority and local SAFE office within three work days as
of the day of discovery.

Article 16

SAFE branch offices in every province, autonomous region, and municipality directly under the central government shall summarize
large-value and suspicious foreign exchange fund transactions reported by financial institutes and report to SAFE head office within
the first 20 work days of every month; when a foreign exchange transaction is suspected as crime, the case shall be transferred promptly
to local public security authority and to the SAFE head office.

Article 17

In the case of any of the following misconduct by a financial institution, the SAFE shall issue a warning, order the financial institution
to take remedial action, and impose a fine between RMB10,000 yuan to RMB30,000 yuan.

(1)

Failing to report, according to relevant rules and regulations, large-value or suspicious foreign exchange fund transactions;

(2)

Failing to keep large-value or suspicious foreign exchange transactions in record as stipulated by relevant rules and regulations;

(3)

Disclosing large-value or suspicious foreign exchange fund transactions in violation of relevant rules and regulations; and

(4)

Opening foreign exchange account without examining account-opening document.

Article 18

When a financial institution opens a foreign exchange account for an individual customer without examining account-opening documents,
the SAFE shall issue a warning, order it to take remedial action and may impose a fine between RMB1,000 yuan and RMB5,000 yuan.

Article 19

When a financial institution brings about grave loss as a result of its serious violation of these Rules, the SAFE may cease or revoke
its approval for foreign exchange purchase and sales business in part or in full.

Article 20

Disciplinary penalty shall be imposed on the staff of a financial institution who provides assistance to money-laundering activities;
when the misconduct constitutes a violation of the criminal law, the case shall be transferred to judiciary authorities.

Article 21

“Frequent” in these Rules means foreign exchange fund transactions occurring at least three times each day or occurring daily for
at least five days in a row.

“Large amount” in these Rules refers to amount close to the threshold amount for reporting as a large-value foreign exchange transaction.

“A short period of time” in these Rules means within 10 business days.

When “above”, “between” and “up to” are used to indicate a threshold number, a floor or a ceiling, the number that ensues any of them
is also included.

Article 22

These Rules shall enter into force as of March 1, 2003.

The People’s Republic of China
2003-01-03

CIRCULAR ON ISSUES CONCERNING IMPORTATION OF ALUMINUM OXIDE BY ENTERPRISES WITH FOREIGN INVESTMENT

The Ministry of Foreign Trade and Economic Cooperation

Circular on Issues Concerning Importation of Aluminum Oxide by Enterprises with Foreign Investment

WaiMaiYiZiTongJinHan [2003] No.132

February 19, 2003

The commissions (departments, bureaus) of foreign economic and trade of provinces, autonomous regions, municipalities directly under
the Central Government and municipalities separately listed on the State plan, Guangdong Sub-administration of Customs, Tianjin and
Shanghai Office and the customs directly under the General Administration of Customs:

In order to further the undertaking of the administration of importation of aluminum oxide by enterprises with foreign investment,
simplify the examination and verification procedures and reduce the examination and review links, here is to authorize the administrative
departments of foreign investment of foreign economic and trade authorities at provincial level to examine and issue the license
of automatic importation of aluminum oxide to enterprises with foreign investment of other industries than aluminum industry, the
specific items are notified as follows:

Principles of examination and approval.

(1)

The applying enterprises should have been approved by force of law, which should be in compliance with the requirements of the policies
for guidance of foreign-invested industries with annual inspection qualified.

(2)

The applying enterprises are on going concerns with normal production and operations, and the production and processing do not adopt
aluminum oxide as the principal raw materials (non-aluminum processing enterprise)with a single License of Automatic Importation
for importation of aluminum oxide not exceeding 1000 tons.

(3)

The applying enterprises import aluminum oxide only for use by themselves for processing and production of products, and the imported
aluminum oxide should not be processed by other enterprises with authorization or otherwise transferred.

II.

Materials to be submitted by the applying enterprises.

(1)

Application report of the enterprises.

(2)

Certificate for approval of enterprises with foreign investment (including records on qualified joint annual inspection).

(3)

Business licenses of enterprises with foreign investment.

(4)

Contract and Articles of associations of enterprises (Articles of association only for solely funded enterprises).

(5)

Report of asset appraisal.

(6)

Operational performance of enterprises, including the financial statements and audit report of the previous year, and the importation
performance of aluminum oxide (exclusive of the newly established enterprises).

(7)

Certification of the production capacity of enterprises (including annual usage, production schedule and requirements for the demands
of raw materials).

III.

Norms on issuance of licenses.

Each place shall handle with the formalities for automatic importation of aluminum oxide with non-aluminum enterprises with foreign
investment according to the relevant provisions of the Rules for the Implementation of the Licensing Administration of Automatic
Importation of Enterprises with Foreign Investment and the above-mentioned principles of examination and approval, and issue licenses
of automatic importation through the Network Management System for Importation and Exportation of Enterprises with Foreign Investment.
Each issuing departments shall examine and verify the applications of enterprises in strict accordance with the above-mentioned principles
and requirements so as to prevent the occurrence of sales and distribution directly upon importation.

In case the aluminum enterprises with foreign investment with the business scope approved covering processing and production of
aluminum apply for importing aluminum oxide as the principal production material or enterprises with foreign investment import
aluminum oxide with a single License of Automatic Importation for importation of aluminum oxide exceeding 1000 tons, the administrative
departments of foreign investment of foreign economic and trade authorities at provincial level shall upon initial review submit
the case to the Foreign Investment Department of the MOFTEC for handling with the formalities for examination and verification and
issuance of licenses.

IV.

In case enterprises with foreign investment import aluminum oxide to produce products for domestic sales, the Customs handle with
the Customs clearance formalities on the basis of the License of Automatic Importation signed and stamped by the MOFTEC or the local
issuing institutions of automatic importation licenses authorized by the MOFTEC.

In case enterprises with foreign investment import aluminum oxide for processing trade, the formalities should still be handled with
in compliance with the Urgent Circular on Issues Concerning Strengthening the Examination and Approval Administration of Processing
Trade of Aluminum Oxide (WaiJingMaoMaoFa [2001] No.567).

This is hereby the notification.

The Ministry of Foreign Trade and Economic Cooperation
2003-02-19

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE FOR PRINTING AND DISTRIBUTING THE INTERIM MEASURES FOR DISPOSING THE BEHAVIORS OF FAILING TO GO THROUGH THE VERIFICATION PROCEDURES FOR IMPORT PAYMENTS AND EXPORT PROCEEDS WITHIN TIME LIMIT

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange for Printing and Distributing the Interim Measures for Disposing the Behaviors
of Failing to Go through the Verification Procedures for Import Payments and Export Proceeds within Time Limit

HuiFa [2003] No.40

March 13, 2003

Branches and Foreign Exchange Administration Offices under the State Administration of Foreign Exchange at levels of provinces, autonomous
regions and municipalities directly under the Central Government, and branch administrations of Shenzhen, Dalian, Qingdao, Xiamen,
Ningbo:

For the purpose of further improving and perfecting the administration of the verification of import payments and export proceeds
within the administrations of foreign exchange, clearing up the unverified transactions in time, standardizing the transfer procedures
for overdue transactions unverified, disposing the behaviors of failing to go through the verification procedures according to relevant
provisions, and urging importers and exporters to carefully implement the verification procedures to improve the rates of verifications
of import payments and export proceeds in foreign exchanges, the State Administration of Foreign Exchange, in accordance with the
Regulations of the People’s Republic of China on Administration of Foreign Exchange, the Operating Procedures of the State Administration
of Foreign Exchange on Operating Procedures for Transferring Cases as well as relative provisions, has formulated the Interim Measures
for Disposing the Behaviors of Failing to Go through the Verification Procedures for Import Payments and Export Proceeds within Time
Limit, and print and distribute it hereby to you for implementation.

Attachments:

1. Interim Measures for Disposing the Behavior of Failing to Go through Verification Procedures for Import Payments and Export Proceeds
in Foreign Exchanges within Time Limits

2. Registration Form of Transfer of Overdue Unverified Export Proceeds & Import Payments in Foreign Exchanges (omitted)

3. Notice of Verification (omitted)

Attachment 1:Interim Measures for Disposing the Behavior of Failing to Go through Verification Procedures for Import Payments and Export Proceeds
in Foreign Exchanges within Time Limits

Article 1

These Measures are formulated for the purpose of standardizing the operations within the administrations of foreign exchange, including
clear-up, transfer, audit and disposal of the behaviors of failing to go through verification procedures for import payments and
export proceeds in foreign exchange, and urging importers/exporters to carefully implement the verification procedures to improve
the rates of verifications of import payments and export proceeds in foreign exchange, according to the Regulations of The People’s
Republic of China on Administration of Foreign Exchange (hereinafter referred to as the “Regulations”) and the Operating Procedures
of the State Administration of Foreign Exchange on Operating Procedures for Transferring Cases as well as relative provisions.

Article 2

The “Overdue unverified import payments and export proceeds in foreign exchange within time limits” mentioned in these Measure include
“Unverified import payments in foreign exchange within time limit” and “Overdue unverified export proceeds in foreign exchange within
time”. The “Overdue unverified import payments in foreign exchange within time limit” mean that the importers fail to go through
verification procedures for the import payments within one month after the customs declarations; and the “Overdue unverified export
proceeds in foreign exchange within time limit” mean that the exporters fail to go through verification procedures for the export
proceeds in foreign exchange within one month after the customs declarations.

Article 3

For any overdue unverified import payment or export proceeds in foreign exchange, the verification department under the administration
of foreign exchange (hereinafter referred to as the “VD”) shall, in a timely manner, collect the related information and urge the
importer or exporter to go through the verification procedures. The VD shall promptly transfer the cases of failing to go through
the procedures even after being urged to the audit department (hereinafter referred as the AD) for disposal.

Article 4

The VDs shall regularly clear up unverified import payments and export proceeds in foreign exchange, at a frequency of at least once
a month. For the importers or exporters with multiple unverified transactions or and biggish unverified amounts, the VDs shall organize
to clear-up in a timely manner. After clearing up, the VDs shall record and summarize such clear-ups.

Article 5

The VD shall issue a Notice of Verification (see Attachment 2) to the importer/exporter that has behavior(s) of failing to go through
the verification procedures, in a delivering way suitable to local situation. However, Records of receipts signed by the importers/exporters
as well as the records on the urges shall be made. The time limits and the times of urges shall be determined according to local
specific circumstance, and the urging work shall be finished within 90 days after the day of issuing the Notice of Verification.

Article 6

After the end of the urging work, the VDs shall immediately transfer the information on the unverified import transactions of any
case of the following to the VDs for disposal:

(1)

Failing to go through the verification procedures after being urged to do so;

(2)

Failing to explain the reasons for failing to go through the verification procedures within 90 days after the day of receiving the
Notice of Verification, or its reasons have not been approved by the VDs;

(3)

The importer could not be contacted with for the fault of importer; or

(4)

Refusing to receive the Notice of Verification.

Article 7

For the following cases, the VDs shall defer to transfer the cases of failing to go through the verification procedures within the
time limit. Such cases shall be transferred only after the problems are settled down:

(1)

The importer has gone through the procedures by presenting the paper-based customs declaration form sealed with the “Checked and Verified”
by the Customs, but there is no electronic record in the Import/Export Customs Declaration Checking System;

(2)

The importer has applied for deferring the verification due to missing of customs declaration form for import goods, by presenting
the import contract, import invoice and tax payment documentation issued by customs, and such application has been approved by the
VD; or

(3)

The importer is unable to declare for verification for special reasons and the VD has approved such deferring.

Article 8

After the urging work is completed, the VDs shall, in a timely manner, transfer the cases of export proceeds within the time limit
to the ADs, except for the following:

(1)

The cases meeting with the requirements for margin verifications and being disposed;

(2)

The cases meeting with the requirements for verification for future reference and being disposed;

(3)

The cases that he foreign changes have been received but could not be verified due to technical conditions and being disposed by relevant
department;

(4)

The cases failing to be verified within the stipulated time limit but having presented the explanations on the situations to the VDs
and having got the approval from the VDs.

Article 9

When the VDs transfer the information on unverified import payments and export proceeds in foreign exchange to the ADs, they shall
fill in a Form of Transferring Overdue Unverified Import Payments and Export Proceeds in Foreign Exchanges (see Attachment 3) for
each importer/exporter, and transfer the following documents to the ADs:

(1)

Notice of Verification and relative records of urging work;

(2)

List of overdue unverified import payments or export proceeds in foreign exchange; and

(3)

Relative original warrants.

Article 10

After the VDs transferred the information on overdue unverified import payments or export proceeds in foreign exchange to the ADs,
they shall help to provide relative warrants, information required by the ADs for disposing the cases. The VD shall handle the overdue
unverified cases transferred to them and give a notice on the disposals to the ADs within 2 days after handling the cases.

Article 11

The ADs shall accept with signature the cases of failing to go through the procedures for verification according to the Operating
Procedures of the State Administration of Foreign Exchange on Operating Procedures for Transferring Cases and audit the cases. Case
filing shall be made for the cases within 7 days, except for the following:

(1)

The ADs shall, within 5 days, return those cases with uncompleted documents to the ADs for completion.

(2)

For the cases which importers/exporters have cancelled registration with the administrations of industry and commerce or which registrations
with the administrations have been cancelled automatically due to failing to registering for over two years, the ADs shall not file
them and return the relative documents to VDs.

(3)

The ADs shall not file the cases which importers/exporters could not found through on-site investigation though their registrations
with the administration of industry and commerce have not been cancelled, but record the cases for future references and return the
documents to the VDs. If such importers/exporters apply for verification next time, the VDs shall renew the relative data of such
importers/exporters and transfer the cases again to the ADs; or

(4)

The cases with other proper reasons.

Article 12

For the filed cases of failing to go through procedures for unverified import payments and export proceeds in foreign exchange within
the time limit, the ADs shall carefully audit the relative documents and analyze the causes for the failures. For the behaviors involving
large amount and failing to provide relevant proofs and with obvious suspicion of escaping and deceiving foreign exchanges, investigations
shall be extended.

Article 13

For any behavior of failing to go through the verification procedures for import payments and export proceeds in foreign exchange,
punishment shall be imposed for each case. According to Article 27 of Law of the People’s Republic of China on Administrative Punishment,
if the case is a minor illegal act, which single unlawful sum is below $250,000, the punishment may be mitigated according to the
situation. If the single unlawful sum is above $250,000, the administration of foreign exchange shall give a warning, circulate a
notice of criticism and confiscate any illegal gains and impose a fine of no less than RMB 50,000 and no more than RMB 300,000 according
to Article 48 of the Regulations of The People’s Republic of China on Administration of Foreign Exchange. If the offense constitutes
a crime, criminal liability shall be pursued according to laws. The standard for a single fine is RMB 1,000 for each $5,000. A sum
of a single fine on an act of failing to go through verification procedures for import payment and export proceeds in foreign exchange
shall be no more than RMB 300,000. For the act of failing to have the export proceeds in foreign exchange verified, which meets the
conditions of Article 39 of Rules of Implementation of Administration Measures on Export Proceeds in Foreign Exchanges, the sum
of a single fine shall be no more than RMB 30,000.

Article 14

For any of the following importers/exporters, the punishment may be mitigated if they present written applications and such applications
have been approved by the case auditing committee after discussion:

(1)

The overdue unverified export proceeds in foreign exchange have been disposed as bad debts with approval from the financial administration
at the level of municipality or above;

(2)

The importer/exporter has gone through the verification procedures for the items under relative imports/exports prior to the issue
of Decision of Administrative Sanction.

(3)

The importer has transferred back the equivalence of sum of money from abroad which has been paid to initiatively reduced harmful
results; and

(4)

Other cases meeting the conditions for mitigating penalties according to the Law of the People’s Republic of China on Administrative
Penalty.

Article 15

After closing the cases for disposing unverified import payments or export proceeds in foreign exchanges, the ADs shall timely feedback
the disposal results to the VDs.

Article 16

These Measures is formulated and interpreted by the State Administration of Foreign Exchange.

Article 17

These Measures shall go into effect as of April 1, 2003. If previous provisions are inconsistent with these Measures, these Measures
shall prevail.

The State Administration of Foreign Exchange
2003-03-13

DECISION OF CHINA BANKING REGULATORY COMMISSION ON ADJUSTMENT OF BANKING MARKET ACCESS MANAGEMENT STYLE AND PROCEDURE

China Banking Regulatory Commission

Decree of China Banking Regulatory Commission

No.1

The Decision on Adjustment of Banking Market Access Management Style and Procedure has been adopted at the first Chairman Meeting
of CBRC on May 26. It is hereby promulgated and shall enter into force on July 1, 2003.

Liu Mingkang, Chairman of China Banking Regulatory Commission

May 29, 2003

Decision of China Banking Regulatory Commission on Adjustment of Banking Market Access Management Style and Procedure

In order to raise the efficiency of market access and promote financial innovation, China Banking Regulatory Commission decided to
adjust the management style and procedure of banking market access. To be specific, it goes as follows:

Adjust the power of approving newly established branches

(I)

Banking regulatory bureaus or branch bureaus directly under CBRC should receive and check the application materials of the policy-related
banks, the state-owned commercial banks and the joint stock commercial banks within their jurisdiction area for preparing to construct
branches and submit the materials to CBRC for approval. Banking bureaus or branch bureaus directly under CBRC should check the application
materials for opening of the agencies CBRC have approved, present the agencies licenses and make a copy for CBRC. The style and procedure
of approving newly established foreign branches have no changes.

(II)

Banking bureaus or branch bureaus directly under CBRC should receive and approve the application materials of various banks in the
same cities for preparing to construct and opening branches and present them licenses.

(III)

Branch bureaus directly under CBRC are in charge of receiving and checking the application materials of various banks in their jurisdiction
area for preparing to construct branches and submit them to banking regulatory bureaus for approval; Branch banking regulatory bureaus
should check the application materials for opening of the agencies banking regulatory bureaus have approved, present the agencies
licenses and make a copy for banking regulatory bureaus.

II.

Adjust the style of approving new business

(I)

Eliminating the approval of the following business in Chinese banks: domestic factoring, liquidation of funds from agency securities
(Bank-Security Transfer), agent insurance, investment trusteeship by securities companies, trusteeship of credit capital, pension
trusteeship by enterprises. Eliminating the records of the following business of Chinese banks: interest-paid note discount from
buyer or agreement, overdraft of accounts of legal persons and agent of payment of trust products.

(II)

Eliminating the records of the following business in foreign banks: domestic factoring, interest-paid note discount from buyer or
agreement and overdraft of accounts of legal persons.

(III)

Within 10 working days after state-owned commercial banks and holding commercial banks began the above-mentioned business, their general
banks should report to CBRC in written form. Furthermore, city commercial banks, rural commercial banks and foreign banks only need
report to banking regulatory bureaus or branch bureaus directly under CBRC or branch banking regulatory bureaus in the same place
within 10 working days after starting the above-mentioned business.

(IV)

Different banks are enpost_titled to authorize their affiliated agencies meeting the requirement to do the new business which has been
approved. The branches of various banks can start new business after authorized by upper level banks and they should submit written
reports to local banking regulatory bureaus or branches directly under CBRC or branch banking regulatory bureaus within 10 working
days after starting the business.

III.

adjust the style of checking and approving the qualification of holding posts of senior administrative personnel

(I)

In Chinese banks, solely-owned banks established by foreign investors and Sino-foreign joint venture banks, for the senior administrative
personnel who make parallel transfer, if they have obtained the approval of taking posts, the former approval is effective and does
not need checking and approving again.

(II)

The above-mentioned senior administrative personnel may submit their auditing reports for leaving posts and materials related to holding
offices to local banking regulatory bureaus or branches directly under CBRC or branch banking regulatory bureaus within 1 month after
leaving posts.

(III)

Eliminating the records of post-holding qualifications of directors of foreign-invested banks branches.

IV.

Present style and procedure of market access of urban credit cooperatives, rural credit cooperatives and postal saving agencies maintain
unchangeable.

China Banking Regulatory Commission
2003-05-29

INTERIM MEASURES FOR BID-INVITING AND BIDDING MANAGEMENT OF PRELIMINARY REALTY MANAGEMENT

The Ministry of Construction

Circular on Distributing the Interim Measures for Bid-Inviting and Bidding Management of Preliminary Realty Management of the Ministry
of Construction

JianZhuFang [2003] No.130

The construction departments of the provinces and autonomous regions, the bureaus of the real estate administration of the municipalities
directly under the Central Government, and the Construction Bureau of Xinjiang Production and Construction Regime:

In order to regulate the bid-inviting and bidding activities of the realty management, to safeguard the legitimate rights and interests
of the bid-inviting and bidding parties, and to promote the fair competition of the realty management market, the Interim Measures
for Bid-Inviting and Bidding Management of Preliminary Realty Management are hereby formulated and distributed to you, which are
required for implementation. Please inform the House and Real Estate Department of our Ministry of any circumstances during the implementation.

The Ministry of Construction of PRC

June 26, 2003

Interim Measures for Bid-Inviting and Bidding Management of Preliminary Realty Management

Chapter I General Provisions

Article 1

The Measures are formulated in order to regulate the bid-inviting and bidding activities of the realty management, to safeguard the
legitimate rights and interests of the bid-inviting and bidding parties, and to promote the fair competition of the realty management
market.

Article 2

The preliminary realty management herein shall refer to the realty management implemented by the realty management enterprise engaged
by the construction entity before the owners or the owners commission select a realty management enterprise at its own discretion.

The Measures shall apply when the construction entity selects the realty management enterprises with the corresponding qualification
and when the administrative departments supervise and manage the bid-invitation and bidding activities of the realty management through
bid-invitation and bidding.

Article 3

A construction entity of any residential and the non-residential realty in a same realty management area shall select the realty management
enterprise with the corresponding qualification through bid-invitation and bidding; and where there are no more than 3 bidders or
the residence scale is relatively small, the construction entity may select the realty management enterprise with the corresponding
qualifications through agreement upon approval by the administrative department of real estate of the peoples government of the
district or county of the place where the realty is located.

The state promotes that the construction entities of other realty engage the realty management enterprises with the corresponding
qualification via bid invitation and bidding.

Article 4

The bid-invitation and bidding activities of preliminary realty management shall stick to the principle of openness, fairness, justice
and good faith.

Article 5

The administrative department of construction under the State Council shall be in charge of the supervision and administration of
the bid-inviting and bidding activities of the realty management activities all over the country.

The administrative departments of construction of the local peoples governments of the provinces and autonomous regions shall be
in charge of the supervision and administration on the bid-inviting and bidding activities of the realty management activities within
their respective administrative divisions.

The administrative departments of real estate of the local peoples governments of the municipalities directly under the Central
Government, prefectures and counties shall be in charge of the supervision and administration on the bid-inviting and bidding activities
of the realty management activities in their respective administrative divisions.

Article 6

Any entity and individual shall not violate the provisions of laws and administrative regulations, restrict or exclude the eligible
realty management enterprise from participating in the bidding or illegally intervene the bid-inviting and bidding activities of
realty management in any way.

Chapter II Bid Invitation

Article 7

The bid inviter herein refers to the realty construction entity that carries out the bid-inviting of preliminary realty management
according to law.

The bid-invitation of preliminary realty management shall be organized and implemented by the bid inviter. The bid inviter shall not
restrict or exclude the potential bidders with imposition of irrational conditions, carry out discriminative treatment to the potential
bidders or put forward the requirements of excessive high qualifications inconsistent with the actual requirements for the bid invitation
of the realty management project to the potential bidders.

Article 8

The bid invitation of preliminary realty management includes open bidding and invited bidding.

In case of open bidding, the bid inviter shall promulgate the bid-inviting announcement on public medium, and at the same time promulgate
free bid-inviting announcement on the China Information Website of Housing and Real Estates and the site of China Association of
Realty Management.

The bid-inviting announcement shall clearly state the name and address of the bid inviter, the basic circumstances of the bid-inviting
project and the method for obtaining the bid-inviting documents, etc.

In case of invited bidding, the bid inviter shall issue bidding invitations to no less than 3 realty management enterprises, which
should include the same items as stipulated by the preceding paragraph.

Article 9

The bid inviter may entrust the bid-inviting agency to handle with the bid invitation, and if competent, the bid inviter may also
organize and implement the bid-inviting activities by itself.

The bid-inviting agency of realty management shall handle with the bid invitation in the authorized scope of the bid inviter and abide
by the relevant provisions of the Measures on the bid inviter.

Article 10

The bid inviter shall complete the preparation of the bid-inviting documents prior to the bid invitation according to the features
and requirements of the realty management project

The bid-inviting documents shall include the following content:

(I)

brief introduction of the bid inviter and the bid-inviting project, including name, address, contact information of the bid inviter,
the basic circumstance of the project, and the housing and the relevant facilities for realty management use, etc;

(II)

content and requirement of the realty management service, including service content, service standards, etc;

(III)

requirements for the bidder and bidding documents, including the qualification of the bidder, the format and the main content of the
bidding documents, etc;

(IV)

standard and method for bidding evaluation;

(V)

bid-inviting scheme, including bid-inviting organizations and institutions, the time and place for opening of bidding, etc;

(VI)

instructions on signing the realty service contract;

(VII)

other instructions and other content as provided for by laws and regulations;

Article 11

The bid inviter shallwithin 10 days upon the issuance of the bidding invitation, submit the following materials for filling by the
administrative department of real estates of the peoples government at the county level or above of the place where the realty
project is located:

(I)

the government approval for the development and construction of the realty project relating to the realty management;

(II)

the bid-inviting announcement or bid invitation;

(III)

the bid-inviting documents;

(IV)

other materials as provided for by laws and regulations.

In case of violation of the provisions of laws and regulations during bid invitation, the administrative departments of real estates
shall timely order the bid inviter to rectify.

Article 12

The bid inviter of the open bidding may pre-examine the bidding qualification of the bidding applicants according to the provisions
of the bid-inviting documents.

For the realty management project carrying out the pre-examination of the bidding qualification, the bid inviter shall clearly state
the conditions of the qualification pre-examination and the method for obtaining the bid-inviting documents on the bid-inviting announcement.

The documents of the qualification pre-examination shall generally include the application format of the qualification pre-examination,
the notice of applicant, and the qualification documents, performance, technological equipment and financial situation of the enterprise
which bidding applicants are required to provide, as well as the resumes, performance, etc certificate materials of projected project
executives and main management persons.

Article 13

Upon qualification pre-examination, the bid inviter of the open bidding shall issue the qualified notification of qualification pre-examination
to the bidding applicants who are qualified in the qualification pre-examination, inform them of the time, place and method for obtaining
the bid-inviting documents, and issue the result of qualification pre-examination to the bidding applicants who are not unqualified.

In case of excessive bidding applicants who are qualified in the qualification pre-examination, the bid inviter may choose no less
than 5 bidding applicants who are qualified in the qualification pre-examination.

Article 14

The bid inviter shall determine the reasonable time required by the bidder for preparation of the bidding documents. In case of the
realty management project of open bidding, it shall be no less than 20 days from the day of issuing the bid-inviting documents to
the day when the bidders submit the bidding documents.

Article 15

In case of carrying out necessary clarification or modification, the bid inviter shall notify all recipients of the bid-inviting documents
in written at least 15 days prior to the deadline for submission of the bidding documents required in the bid-inviting documents.
The content of clarification or modification is the integral part of the bid-inviting documents.

Article 16

The bid inviter may organize the potential bidding applicants to visit and investigate on the site of the realty project and provide
the detailed materials of concealed project drawings, etc. For the question posed by the bidding applicants, the bid inviter shall
make clarifications and send the written notice thereof to all recipients of the bid-inviting documents.

Article 17

The bid inviter shall not disclose name and quantity of the potential bidders who have obtained the bid-inviting documents and other
relevant bid-inviting and bidding circumstances possibly influencing fair competition.

Article 18

Prior to determining the bid winner, the bid inviter shall not hold negotiations with the bidder on the substantive content of bidding
price, bidding scheme, etc.

Article 19

In case of selecting realty management enterprise through bid-invitation and bidding, the bid inviter shall complete the bid-inviting
and bidding works of the realty management in the time schedule specified as follows:

(I)

projects of newly established and currently marketable commodity housing shall be completed within 30 days prior to current marketing;

(II)

projects of presale commodity housing shall be completed before obtaining the Presale License of Commodity Housing;

(III)

newly established and not marketable projects shall be completed 90 days prior to delivery for use.

Chapter III Bidding

Article 20

The bidder herein refers to the realty management enterprise which follow the bid invitation of preliminary realty management and
participate in competition.

The bidder shall have the corresponding qualification of the realty management enterprise and other conditions required in the bid-inviting
documents

Article 21

In terms of questions that need to be clarified in the bid-inviting documents, the bidder shall put forth them in writing to the bid
inviter.

Article 22

The bidder shall formulate the bidding documents that follow the substantive requirements and conditions posed in the bid-inviting
documents according to the content and requirements of the bid-inviting documents:

The bidding documents shall include the following content:

(I)

bidding letter;

(II)

bidding quotation;

(III)

scheme of the realty management;

(IV)

other materials necessary for the bid-inviting document.

Article 23

The bidder shall seal and send the bidding documents to the place of bidding prior to the deadline for submission of the bidding documents
as required in the bid-inviting documents. The bid inviter shall upon receipt of the bidding documents present the evidence indicating
the recipient and the time of receipt to the bidder and properly preserve the bidding documents. Prior to the opening of bidding,
any entity and individual shall not open the bidding documents. The bidding documents that are delivered after the deadline for submission
of the bidding documents as required in the bid-inviting documents are invalid, and the bid inviter shall reject to receive them.

Article 24

The bidder may supply, modify or withdraw the bidding documents prior to the deadline for submission of the bidding documents as required
in the bid-inviting documents, and notify the bid inviter in writing. The content of the supplement and modification is the integral
part of the bidding documents and shall be delivered, received and preserved according to the provisions of Article 23 of the Measures.
The content of the supplement and modification that are delivered after the deadline for submission of the bidding documents as required
in the bid-inviting documents are invalid.

Article 25

The bidder shall not cheat to win the bid through falsehood in the name of others or by other means.

The bidder shall not mutually conspire to bid, squeeze out other bidders in fair competition or damage the legitimate rights and interests
of the bid inviter or the bidders.

The bidder shall not mutually conspire to bid and damage the national interests, the social public interests or the legitimate rights
and interests of others.

The bidder is prohibited from winning of the bid by unfair means of bribery to the bid inviter or the members of bidding evaluation
commission, etc.

Chapter IV Opening, Evaluation and Winning of Bid

Article 26

Opening of bid shall be carried out at the same time as the deadline for submission of the bidding documents defined in the bid-inviting
documents; the place of opening of bid shall be the place predetermined in the bid-inviting documents.

Article 27

Opening of bid shall be presided over by the bid inviter and all bidders shall be invited to participate in the opening. The opening
of bid shall be carried out according to the following provisions:

The sealing condition of the bidding document shall be examined by the bidder or its representative, or be examined and notarized
by the notary agency authorized by the bid inviter. Upon confirmation free of errors, the workers shall open the bidding document
in public and read the bidders name, the bidding price and other main content of the bidding documents.

For all the bidding documents received prior to the deadline for submission of the bidding documents required in the bid-inviting
documents, the bid inviter shall open them in public.

The course of bidding opening shall be recorded and filed by the bid inviter for future reference.

Article 28

Bidding evaluation shall be in the charge of the Bidding Evaluation Commission established by the bid inviter by force of law.

The Bidding Evaluation Commission shall be composed of the representatives of the bid inviter and the experts in the realty management,
and the number of the members shall be odd of no less than five, among which the experts in the realty management other than the
representatives of the bid inviter shall be no less than 2-thirds of total members.

The expert members of the Bidding Evaluation Commission shall be confirmed by the bid inviter by the means of random sampling from
the expert name list set up by the administrative departments of real estate.

The person of interest with the bidder shall not a member of the Bidding Evaluation Commission of the relevant project.

Article 29

The administrative departments of real estate shall set up a name list of experts for bidding evaluation. The administrative department
of real estate of the peoples government of provinces, autonomous regions and municipalities directly under the Central Government
may combine the name list of experts or implement the computer networking of the expert name list for cities with a small number
of experts.

The administrative department of real estate shall carry out training on laws and businesses with the experts in the expert name list,
carry out comprehensive examination and evaluation on their bidding evaluation competence, probity and justness, etc, and timely
cancel the expert qualification for bidding evaluation of the person who is incompetent or violates laws and disciplines. The person
who is cancelled from the expert qualification of bidding evaluation shall not participate in any bidding evaluation activities.

Article 30

The members of Bidding Evaluation Commission shall perform their obligations carefully, fairly, faithfully and honestly.

The members of Bidding Evaluation Commission shall not contact for private purposes with any bidder or person of interest with the
result of bid-invitation and shall not accept pecuniary and other benefits from the bidders, intermediary and other person of interest.

The members of Bidding Evaluation Commission and workers relating to the bidding evaluation activities shall not disclose the examination
and appraisal and comparison of the bidding documents and the recommendation circumstances of the candidate bid winners and other
circumstances relating to the bidding evaluation.

The workers relating to bidding evaluation activities in the preceding paragraph refer to all persons who get acquainted with the
circumstances relating to the bidding evaluation because of participating in the supervision or routine work of bidding evaluation
other than the members of Bidding Evaluation Commission.

Article 31

The Bidding Evaluation Commission may require in writing the bidders to clarify or explain the content of ambiguous meaning in the
bidding documents. The bidder shall clarify and explain on them in written form, and the clarification and explanation shall not
exceed the scope of the bidding documents or change the substantive content of the bidding documents.

Article 32

In case of convening a site demonstration meeting in the course of bidding evaluation, the bid inviter shall describe it in advance
in the bid-inviting documents and indicate the relevant score weight.

The members of Bidding Evaluation Commission shall carry out the comprehensive evaluation according to the requirements of the Bidding
evaluation in the bid-inviting documents and based on the circumstances of the score of the bidding document and the site demonstration,
etc.

Except for the part of site demonstration, the bidding evaluation shall be conducted confidentially.

Article 33

The Bidding Evaluation Commission shall examine and appraise and compare the bidding documents against the standards and methods of
the bidding evaluation defined by the bid-inviting documents and sign and confirm the results of bidding evaluation.

Article 34

Upon examination and appraisal, if the Bidding Evaluation Commission hold that all bidding documents are not in compliance with the
requirements of the bid-inviting documents, the Bidding Evaluation Commission may veto all biddings.

In case all the realty management project that must conduct the bid-invitation by force of law are vetoed, the bid inviter shall initiate
a new bid invitation.

Article 35

Upon the completion of bidding evaluation, the Bidding Evaluation Commission shall put forth a written report of bidding evaluation,
illustrate the opinions of the Bidding Evaluation Commission on examination and appraisal and comparison to the various bidding documents,
and recommend no less than 3 qualified candidate bid winners arranged in order according to the standards and methods of the bidding
evaluation specified by the bid-inviting documents.

The bid inviter shall confirm the bid winner according to the order of candidate bid winners. If the candidate bid winners who are
confirmed to win bid give up the bid or fail to perform the contract, the bid inviter may confirm other candidate bid winners as
the bid winner according to order.

Article 36

The bid inviter shall confirm the bid winner 30 days prior to the deadline of the bidding valid term. The bidding valid term shall
be stated in the bid-inviting documents.

Article 37

The bid inviter shall issue the notification of bid winning to the bid winner, and at the same time notify all the bidders failing
in bid of the results and return their bidding documents.

The bid inviter shall, within 15 days upon the confirmation of bid winner, file with the administrative departments of real estate
of the peoples governments at the county level or above of the place where the realty project is located. The filing materials
shall include materials such as the course of opening of bid and bidding evaluation, the means and reason on the confirmation of
bid winner, the bidding evaluation of the Bidding Evaluation Commission and the bidding documents of the bid winner. In case of proxy
of the bid invitation, the contract on proxy of the bid invitation shall be attached.

Article 38

The bid inviter and bid winner shall, within 30 days upon issuing the notification of bid winning, reach a written contract according
to the bid-inviting documents and the bidding documents of bid winner; the bid inviter and the bid winner shall not reach other agreements
departing from the substantive content of the contract.

Article 39

In case of failing to enter into a contract without proper reason, the bid inviter shall compensate for the damages thereof to the
bid winner.

Chapter V Supplementary Provisions

Article 40

In case the bidder and other persons of interests hold that the bid-inviting and bidding activities are not in compliance with the
relevant provisions of the Measures, they are enpost_titled to put forth different opinions to the bid inviter or complain to the relevant
department by force of law.

Article 41

In case the bid-inviting documents or the bidding documents are prepared in more than two languages, there must be a Chinese version;
and in case of any discrepancies over the interpretation of different versions, Chinese version shall prevail. In case of any discrepancy
between the amounts expressed in words and that in number, that in words shall prevail.

Article 42

For the residence scale that is relatively small specified in Article 3 of the Measures, upon the approval of the administrative
departments of real estate of the peoples governments of the district or county where the realty is located, the means of agreement
may be adopted for selection of the realty management enterprise, and the standard of scale thereof shall be determined by the administrative
departments of real estate of the peoples governments of provinces, autonomous regions and municipalities directly under the Central
Government.

Article 43

Reference will be made with the Measures when the owners and the owners’ meeting select the realty management enterprises with the
corresponding qualification by means of bidding.

Article 44

The Measures shall come into force on September 1, 2003.

The Ministry of Construction
2003-06-26

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGES ON ISSUES RELATING TO ADJUSTMENT ON THE POLICIES FOR MANAGEMENT OF THE FOREIGN EXCHANGE ACCOUNTS IN CURRENT ACCOUNTS UNDER INTERNATIONAL CONTRACTING PROJECTS

The State Administration of Foreign Exchanges

Circular of the State Administration of Foreign Exchanges on Issues Relating to Adjustment on the Policies for Management of the Foreign
Exchange Accounts in Current Accounts under International Contracting Projects

HuiFa [2003] No.90

August 5, 2003

Bureaus and departments of state administration of foreign exchanges of the provinces, autonomous regions and municipalities directly
under the Central Government, branches of the Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, as well as designated banks of foreign
exchanges:

On October 15, 2002, the SAFE promulgated and implemented the Circular of the State Administration of Foreign Exchanges on Issues
Relating to Further Adjustment on the Policies for Management of the Foreign Exchange Accounts in Current Accounts (HuiFa [2002]
No. 87), decided to repeal the restrictions for separate opening of the foreign exchange accounts in current accounts for Chinese-invested
enterprises, combined the settlement accounts of foreign exchanges and special accounts into the foreign exchange accounts in current
accounts and uniformly adopted the quota management over the foreign exchange accounts in current accounts and the management policies
for unification of the foreign exchange accounts in current accounts for both Chinese-invested and foreign-invested enterprises.
In view of the implementation of the above-mentioned policies, the new policies have facilitated the operation activities of enterprises
in the market economic conditions, reduced the operation costs of the enterprises, promoted the reforms on the system of settlement
and sales of foreign exchanges, thus obtaining good results. In order to keep on promoting the reforms on the management policies
for the foreign exchange accounts in current accounts, and adapt to the demands for the enterprises in improving their international
competitiveness in the market economic activities, the SAFE has decided to make proper adjustment on the policies for the management
of the foreign exchanges in current accounts under international contracting projects. Here is to notify you of the following issues
concerned:

The foreign exchange accounts in the current accounts relating to the following items shall be listed for management in the foreign
exchange accounts of current accounts for special sources and designated usages, with the quota verified at 100% of the foreign exchange
revenues.

(I)

foreign exchange accounts in the current accounts for international contracting projects and international labor;

(II)

foreign exchange accounts in the current accounts for international ocean shipping and shipping forwarding and cargo forwarding

(III)

foreign exchange accounts in the current accounts for international bid invitation;

(IV)

foreign exchange accounts in the current accounts for provisional collection and payment to be transferred to other domestic institutions
or individuals upon overseas revenue of foreign exchanges.

II.

The domestic institutions that have opened foreign exchange accounts in the current accounts in compliance with the provisions of
Article 1 of the Circular may apply with the branches of local foreign exchange administration (hereinafter referred to as the foreign
exchange administration) for adjustment of their quota upon the implementation of the Circular, and the foreign exchange administration
shall handle with the formalities for verification of the alteration of the foreign exchange accounts in the current accounts according
to the provisions of the Circular.

III.

The domestic institutions eligible for the provisions of Article 1 of the Circular that have not opened foreign exchange accounts
in the current accounts may apply with the foreign exchange administration for opening of such accounts according to the actual requirements,
and the foreign exchange administration shall verify and approve for their opening of accounts and verify and determine their account
quota.

IV.

When verifying and approving for opening of foreign exchanges accounts in current accounts or adjusting the account quota of domestic
institutions according to the provision of Article 1 of the Circular by the bureaus and branches of foreign exchange administration,
the total quota of the foreign exchanges accounts in current accounts under their jurisdiction may exceed the total quota of the
same jurisdiction verified by the SAFE; and the SAFE will newly adjust and distribute the total quota of the jurisdiction of the
bureaus and branches based on the adjustment on the policies for the management of the foreign exchanges accounts in current accounts.

In terms of the policies for the management of other foreign exchanges accounts in current accounts not mentioned in the Circular,
the Circular of the State Administration of Foreign Exchanges on Issues Relating to Further Adjustment on the Policies for Management
of the Foreign Exchange Accounts in Current Accounts and the Implementation Rules for the Management of the Foreign Exchange Accounts
in Current Accounts of Domestic Institutions shall apply.

VI.

The Circular shall come into force on September 1, 2003 and in case of any discrepancy between the previous provisions and the Circular,
the Circular shall prevail.

Upon the receipt, the bureaus shall distribute the Circular to the subordinate sub-bureaus, designated banks of foreign exchanges
and the relevant units as soon as possible, and by the end of September 2003, submit the adjustment on the quota of the foreign exchange
accounts under currents accounts of their jurisdiction to the Management Department of Current Accounts under the SAFE. The designated
Chinese-invested banks of foreign exchanges shall distribute the Circular to their subordinate branches and sub-branches as soon
ass possible upon receipt of the Circular. In case of any problems encountered during enforcement, please feedback in timely to the
Management Department of Current Accounts under the SAFE.

The State Administration of Foreign Exchanges
2003-08-05

PROVISIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON THE CUSTOMS ADMINISTRATION OF DECLARATION FOR THE IMPORT AND EXPORT OF GOODS

Customs General Administration

Decree of the General Administration of Customs of the People’s Republic of China

No.103

The Provisions of the People’s Republic of China on the Customs Administration of Declaration for the Import and Export of Goods have
been deliberated and adopted at the director’s executive meeting. They are hereby publicized and shall go into force as of November
1st, 2003.

Mou Xinsheng, Director of the General Administration of Customs

September 18th, 2003

Provisions of the People’s Republic of China on the Customs Administration of Declaration for the Import and Export of Goods

Chapter 1 General Provision

Article 1

With a view to standardizing the declaration of import and export goods, the present Provisions are formulated in accordance with
the Customs Law of the People’s Republic of China and other relevant laws, administrative regulations concerning the administration
of import and export.

Article 2

The term “declaration” mentioned in the present Provisions means that the consignor and consignee of import and export goods and the
agent declaration enterprises declare to the customs about the actual situation of the import and export goods and accept the verification
of the customs in the specified period and location by tendering electronic or paper declaration forms in accordance with the Customs
Law and other relevant administrative regulations and rules.

Article 3

The present Provisions shall be applicable to the various procedures of declaration of import and export goods that the consignor
and consignee of export and import goods and the agent declaration enterprises go through, unless it is otherwise provided for by
other regulations.

Article 4

The consignor and consignee of export and import goods may declare to the customs by themselves or entrust customs declaration enterprises
to declare to the customs on their behalf.

The consignor and consignee of export and import goods and the agent declaration enterprises shall be registered at the customs in
advance for going through customs declaration procedures.

Article 5

Both electronic declaration form or paper declaration form can be used in the declaration procedures, and both are of identical legal
effect.

Electronic declaration refers to the way in which the consignor and consignee of export and import goods and the agent declaration
enterprises transmit to the customs via computer systems the electronic data of customs declaration and the relevant attached documents,
pursuant to the Customs Regulation of the People’s Republic of China on Filling in the Declaration Form for Import and Export Goods.

Paper declaration refers to the way in which the consignor and consignee of export and import goods and the agent declaration enterprises,
in light of the regulations of the customs, fill in the paper declaration forms and prepare the attached documents, with which the
declaration is made vis--vis to the customs office.

The consignor and consignee of export and import goods and the agent declaration enterprises shall declare to the customs by providing
electronic declaration form, with which the paper declaration form submitted jointly with the attached documents shall comply. Under
special circumstances, it is permitted to present paper declaration forms in advance, upon the approval of the customs office involved,
with the electronic data to be declared afterwards conforming to the paper declaration forms. Customs declarations may be made in
paper form to the customs offices that have not adopted the information administration system.

Article 6

The personnel handling the declaration procedures for the consignor and consignee of export and import goods and the agent declaration
enterprises shall be the qualified customs agents registered at the customs. No one who has not obtained the qualifications of a
customs agent or who has not been registered at the customs may go through the procedure of customs declaration.

The customs agents shall, in accordance with the laws and regulations concerning the customs declaration, carry out their activities.
The agents and the enterprise they are affiliated with shall take corresponding legal responsibilities for the customs declaration
of the agents unless otherwise provided for in any law, administrative regulation or rule.

Chapter 2 Requirements of Customs Declaration

Article 7

The consignor and consignee of export and import goods and the agent declaration enterprise shall declare to the customs offices according
to the facts and the laws, and take corresponding legal responsibilities for the authenticity, accuracy, integrity and standardization
of the declaration.

Article 8

The consignee of import goods and the agent declaration enterprise shall declare to the customs offices within 14 days as of the day
when declaration is made for the entry of a transportation vehicle.

The consignee of import transit goods and the agent declaration enterprises shall handle the customs procedures of transit within
14 days as of the day when declaration is made to the customs office of the place of entry for the entry of the transportation vehicle.
The goods shall be declared to the customs office of the place of destination within 14 days away from arrival.

The consignor of import goods and the agent declaration enterprises shall declare to the customs after the goods arrive at the custody
area of the customs but 24 hours before loading.

The customs may, in accordance with the Measures of the Customs of the People’s Republic of China for Charging Delinquency Interests
for Import Goods, charge a delinquency interest against the party that fails to declare to the customs within the specified period
for delay.

Article 9

The day of declaration in the present Provisions refers to the day when the declaration data are accepted by the customs. The day
of the acceptance of declaration shall be the day when the declaration data are accepted by the customs, either in the way of electronic
or paper form.

In the case of electronic declaration, the day of declaration shall be the day when the declaration data are accepted by the computer
system of the customs, which are then notified to the enterprise that presents the data, or published at the very site of the customs
office or through public information system.

In the case of paper declaration, the date of declaration shall be the day of registration when the customs accepts the paper declaration
form.

Article 10

The declaration is taken to be refused by the customs where the electronic declaration form is returned by the computer system of
the customs after examination. The consignor and consignee of export and import goods and the agent declaration enterprises shall
modify the form and declare for the second time as is required, with the day of declaration being the day when the customs accepts
the re-declaration.

After manual examination and verification, where part of the declaration form that has been accepted by the customs office requires
modification, the consignor and consignee of export and import goods and the agent declaration enterprises shall modify the form
and send it for a second time as is required, with the date of declaration remaining unchanged.

Article 11

Where the consignor and consignee of export and import goods declare to the customs in their own name, they shall affix their signatures
and stamps on the declaration form and attach the relevant documents to it.

Where the declaration enterprises are entrusted by the consignor and consignee of export and import goods to declare to the customs
in their own name or in the clients’ name, they shall present to the customs a power of attorney signed by the client and go through
the procedures within the limit of authorization.

Article 12

Where a declaration enterprise is entrusted by a consignor or consignee of export and import goods to declare to the customs, it shall
sign a power of attorney with the consignee or consignor explicitly specifying the commitment, and the consignee or consignor shall
give notice to the declaration enterprise of the true conditions concerning the declaration commitment.

In the event of handling the procedures of customs declaration upon the entrustment of the consignor or consignee of export and import
goods, the customs declaration enterprises shall verify the authenticity and integrity of the conditions notified by the clients,
including:

the materials to prove the actual situation of the import and export goods, including the names, specifications, usage, origin and
trade mode, etc;

such business documents as the contract, invoice, documents of transportation, and packing list, etc;

the license certificate necessary in import and export and the attached documents;

the manual for processing trade (either in electronic or paper form) and other documents in import and export as are required by the
customs.

The declaration enterprises which fail to reasonably perform their obligation of inspecting and verifying the authenticity and integrity
of the goods provided by the consignor or consignee of export and import goods or make customs declarations in violation of any of
the regulations of the customs shall be subject to corresponding legal liabilities.

Article 13

The consignees of import goods may, before making a declaration, apply in writing to the customs offices for inspecting goods or taking
samples for the purpose of ascertaining the names, specifications, sizes and categories. The customs shall send personnel for onsite
supervision if the application is approved upon verification.

The customs office shall, when inspecting goods or taking samples, issue a sampling record or a list of samples. Where any of the
sampled goods concerns any animal or plant or the product thereof or any other product that requires a quarantine certificate, the
goods shall, according to the relevant laws, be sampled after the acquisition of a written certification of approval from the relevant
administrative department. After taking samples, the on-site supervision personnel sent by the customs and the consignee of import
goods shall affix their signatures to the sampling record or list of samples for confirmation.

Article 14

After being accepted by the customs office, the declaration of import and export goods may be not be modified in any way, and none
of the declaration documents be revoked. Under any of the following circumstances, the declaration may be modified or revoked, provided
that the consignor and consignee of export and import goods or the agent declaration enterprises presents a written application to
the customs for verification and permission.

The errors of the electronic declaration data arising from the failure of the computer or network system, etc;

After the customs discharges the export goods, the declaration of part or all of the goods is cancelled due to the mistakes of loading,
transportation or distribution, etc, which requires the modification or revocation of the original declaration forms and documents;

The errors in declaration caused by mistakes made by the customs personnel in operation or writing, which has no adverse effect upon
the implementation of the trade control policies, the levying of duties and charging of fees, and the statistics of the customs;

The original declaration data requires modification after the verification of prices, classification and verification of goods or
other professional authentication.

The original declaration data requires modification where a temporary price is specified in advance according to the trade usage yet
the actual price is affirmed upon the settlement according to the quality of the inspected commodity or the actual price in the international
market; where the customs has ordered putting the import and export goods under surveillance and inspection, neither the consignor
or consignee of export and import goods nor the agent declaration enterprise may modify the content of declaration form or revoke
the declaration documents.

Article 15

Where it is necessary for the consignor or consignee of export and import goods or the agent declaration enterprise to explain the
situation of the goods or provide complementary materials while the customs is verifying the electronic declaration form, the relevant
party shall explain and provide the supplementary materials immediately upon its acceptance of the customs’ notice.

Article 16

After the customs has concluded the verification of the electronic declaration forms, the consignor and consignee of export and import
goods and the agent declaration enterprise shall, within 10 days as of the date of its acceptance of the customs’ notification of
‘tendering documents on site’ or ‘tendering documents to discharge’, present to the customs the printed paper declaration form and
the required attached documents with its signature and stamp on them at the place where the goods are located and go through the
relevant customs procedures.

Where it needs to postpone presenting the written documents and going through the relevant customs procedures due to such reasons
as holidays or customs transit, etc, the consignor and consignee of export and import goods and the agent declaration enterprise
shall apply in writing to the customs in advance to explain and may present the documents and go through the procedures within an
extended period verified by the customs. Where the consignor and consignee of export and import goods declare to the customs by themselves,
they shall affix their signatures to the application letter. Where the consignor and consignee of export and import goods have entrusted
the customs declaration enterprise in declaration, both the consignor and consignee and the agent declaration enterprise shall affix
their signatures to the application letter.

Where paper declaration form fails to be presented within the specified or extended period, the customs shall delete the electronic
declaration form and the consignor and consignee of export and import goods and the agent declaration enterprise shall declare for
a second time, the delinquency interests arising from which shall be charged according to the Measures of the Customs of the People’s
Republic of China for Charging Delinquency Interests for Import Goods.

Where the documents are presented on site for verification, the consignor and consignee of export and import goods and the agent declaration
enterprise shall present to the customs the paper declaration form and the attached documents consistent with the electronic declaration
form. Where certain content of the paper declaration is inconsistent, the electronic declaration form should be deleted, unless the
consignor and consignee of export and import goods and the agent declaration enterprise renew the attached documents consistent with
the electronic declaration form or apply for explanation and the customs verifies that there is no violation against the law. Where
the license certificate of import and export goods presented fails to comply with the declaration, the declaration form cannot be
renewed unless the customs verifies that there is no violation against any of the trade control policies or its relevant regulations.

Article 17

Enterprises may conduct real time declaration via computer network, the specific measures for which are to be formulated by the General
Administration of Customs.

Chapter 3 Special Declaration

Article 18

Upon the approval of the customs, the consignor and consignee of export and import goods and the agent declaration enterprise may
declare to the customs in advance after it acquires the bill of ladings or the list of goods.

Where the names, specifications and amounts of import and export goods have been confirmed to be accurate, the declaration enterprise
approved may declare to the customs in advance within 3 days prior to the shipment or arrival of import goods or the arrival of export
goods in the custody area of the customs, tendering the relevant attached documents, the approval documents of import and export
goods and other necessary documents according to the requirements of the customs.

The validity period of the license certificate of export and import goods declared in advance shall be counted according to the date
of the customs’ acceptance of the declaration. The Regulations of the People’s Republic of China on Import and Export Duties (hereinafter
referred to as the Regulations on Duties) shall apply to the duty rates and the exchange rates of the goods declared in advance.

Article 19

Under special circumstances and upon the approval of the customs, the consignor and consignee of export and import goods and the agent
declaration enterprise may go through the procedures of centralized declaration in the specified customs offices within 1 month as
of the day when declaration for entry of the transportation vehicle loaded with goods is made.

The enterprise going through the procedures of centralized declaration shall provide the customs with effective security, and give
notice to the customs, whenever there is import and export of goods, such necessary information as the date of import and export,
the name of the transportation vehicles, the number of bills of lading, the tax number, the name of goods, the specifications and
sizes, the prices, the origins, the amounts, the weight and the consignee or consignor, etc., where the customs may permit antecedent
verification and discharging of goods. After the goods are discharged to the enterprise handling centralized declaration, it shall
go through the procedures of centralized declaration, taxation and discharging within 1 month as of the day when the declaration
for the entry of the transportation vehicles loaded with goods is made. In the case of failure to declare within the specified period,
the delinquency interests shall be charged according to the Measures of the Customs of the People’s Republic of China on Charging
Delinquency Interests for Import Goods.

Electronic declaration shall be adopted in centralized declaration.

The Regulations on Duties shall apply to the duty rate and exchange rate of import and export goods declared in centralized declaration.

Article 20

The import and export goods transported through cables, pipelines, conveyer belts or in other special ways may be declared periodically
to the customs upon approval.

Article 21

Where the information of intellectual property right in import and export goods is required to be declared to the customs, the consignor
and consignee of export and import goods and the agent declaration enterprise shall faithfully present to the customs the information
of intellectual property right in import and export goods, and, as required by the customs, provide certificates and other relevant
documents adequate to prove the accuracy of the content of declaration. The customs shall take measures of protection according to
the present Provisions.

Article 22

Where the customs inspects the declared value of import and export goods and the categorization of tariffs, the consignor and consignee
of export and import goods and the agent declaration enterprise shall present the relevant documents and materials as are required
by the customs.

Article 23

Where it requires supplementary declaration, the consignor and consignee of export and import goods and the agent declaration enterprise
shall fill in the supplementary declaration form according to the facts and present it to the customs.

Article 24

The provisions concerning the declaration of transit goods and the express luggage are further formulated by the General Administration
of Customs.

Chapter 4 Declaration of Documents

Article 25

When the consignor and consignee of export and import goods and the agent declaration enterprise go through the procedures of onsite
examination of documents, collection of duties and fees, and verification and discharge of goods at the customs, they shall present
the paper declaration form consistent with the content of the electronic declaration forms, the license certificate for the administration
of import and export and the attached documents as are required by the customs.

Article 26

The paper declaration form presented to the customs can be either ready-made standard form in specific format or printed directly
on an A-4 paper.

The paper declaration form for import goods is submitted in quintuplicate, consisting of a page for customs operation, a page for
the customs to keep, a page for the enterprise to keep, a page for customs verification and writing-off, and a page certification
(for payment for import) respectively.

The paper declaration form for export goods is submitted in hexaplicate, consisting of a page for customs operation, a page for the
customs to keep, a page for the enterprise to keep, a page for customs verification and writing-off, a page for certification (for
collection of proceeds in export), and a page for certification (for export drawbacks) respectively.

Article 27

The documents and instruments attached to the declaration form for import and export goods include:

contracts;

invoices:

a packing list;

a list of freight (manifest of cargo);

bills of ladings (waybills);

a power of attorney for customs declaration;

the license certificate for import and export;

the manual for processing trade required by the customs (in form of paper or electronic data) and other documents relating to import
and export.

The customs shall retain the original version of the license certificate for import and export, and may retain the copies or duplicates
of the rest of the documents.

Article 28

Where the customs has decided to pre-categorize the goods before the actual import and export, the consignor and consignee of export
and import goods and the agent declaration enterprise shall present the Decision of Pre-Categorization to the customs while declaring
the import and export of goods.

Chapter 5 Issuance and Makeup Issuance of the Certification Page and Verification and Writing-Off Page of the Declaration Form

Article 29

According to the requirements of the administration of foreign exchange, taxation and processing trade, the consignor and consignee
of export and import goods and the agent declaration enterprise may apply to the customs for the issuance of the following certification
pages of the declaration form, provided that they have concluded the customs procedures.

The certification page of the declaration form of export goods for export drawbacks;

The certification page of the declaration form of import goods for payment;

The certification page of the declaration form of export goods for collection;

The verification and writing-off page of the customs for verification and cancellation in processing trade.

While issuing the certification page of declaration form, the customs shall stamp on the lower right corner of the printed certificate
page with the inscription of “verification completed”, which has been recorded in the relevant department.

The consignor and consignee of export and import goods and the agent declaration enterprise shall provide valid certificates required
by the customs while applying for the issuance of the certification page of declaration form and the verification and writing-off
page.

Article 30

Where makeup issuance is required due to the loss and damage of the certification page of the declaration form and the verification
and writing-off page originally issued by the customs, the consignor and consignee of export and import goods and the agent declaration
enterprise shall apply in writing to the customs within 1 year as of the day when the original page was issued and relevant documents
attached for certification. No makeup issuance of any page is allowed without the verification and approval of the customs. The customs
shall inscribe the Chinese characters meaning “Makeup Issuance” on the certification page and the verification and writing-off page,
and charge the cost of production according to the relevant provisions.

Chapter 6 Supplementary Provisions

Article 31

With regard to the goods imported to and exported from the bonded area and the export processing area, and the goods transported in
and out of the bonded area and the export processing area, and the goods involved in the domestic sale, carrying forward of surplus
materials and deep processing in the follow-up phases of processing trade, the present Provisions shall apply to the declaration
procedures, unless it is otherwise provided for.

Article 32

With regard to import and export transit goods, the declaration procedures shall be handled according to the Measures of the Customs
of the People’s Republic of China for the Supervision and Administration of Transit Goods.

Article 33

The consignor and consignee of export and import goods and the agent declaration enterprise violating the present Provisions shall
be punished according to such laws and regulations as the Customs Law of the People’s Republic of China and the Detailed Rules for
the Implementation of the Administrative Punishment of Customs Law of the People’s Republic of China.

Article 34

The power to interpret the present Provisions shall remain with the General Administration of Customs.

Article 35

The present Provisions shall go into effect as of November. 1st , 2003.

Customs General Administration
2003-09-18

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Constitution

The basic law

Concluding and Transitional Provisions

PEOPLE’S BANK OF CHINA LAW

INTERIM PROVISIONS OF SHANGHAI MUNICIPALITY ON THE ADMINISTRATION OF REAL ESTATE AGENTS

ADMINISTRATIVE RULES FOR THE REPORTING BY FINANCIAL INSTITUTIONS OF LARGE-VALUE AND SUSPICIOUS FOREIGN EXCHANGE TRANSACTIONS

CIRCULAR ON ISSUES CONCERNING IMPORTATION OF ALUMINUM OXIDE BY ENTERPRISES WITH FOREIGN INVESTMENT

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE FOR PRINTING AND DISTRIBUTING THE INTERIM MEASURES FOR DISPOSING THE BEHAVIORS OF FAILING TO GO THROUGH THE VERIFICATION PROCEDURES FOR IMPORT PAYMENTS AND EXPORT PROCEEDS WITHIN TIME LIMIT

DECISION OF CHINA BANKING REGULATORY COMMISSION ON ADJUSTMENT OF BANKING MARKET ACCESS MANAGEMENT STYLE AND PROCEDURE

INTERIM MEASURES FOR BID-INVITING AND BIDDING MANAGEMENT OF PRELIMINARY REALTY MANAGEMENT

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGES ON ISSUES RELATING TO ADJUSTMENT ON THE POLICIES FOR MANAGEMENT OF THE FOREIGN EXCHANGE ACCOUNTS IN CURRENT ACCOUNTS UNDER INTERNATIONAL CONTRACTING PROJECTS

PROVISIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON THE CUSTOMS ADMINISTRATION OF DECLARATION FOR THE IMPORT AND EXPORT OF GOODS

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