MEASURES FOR THE CLASSIFIED ADMINISTRATION OF ENTERPRISES MANUFACTURING EXPORT INDUSTRIAL PRODUCTS

The General Administration of Quality Supervision, Inspection and Quarantine

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

No. 51

The Measures for the Classified Administration of Enterprises Manufacturing Export Industrial Products was adopted upon discussion
at the executive meeting of the General Administration of Quality Supervision, Inspection and Quarantine on June 19, 2003 and are
hereby promulgated. They shall come into force on October 1, 2003.

Li Changjiang, Minister

July 18, 2003

Measures for the Classified Administration of Enterprises Manufacturing Export Industrial Products

Chapter I General Provisions

Article 1

The Measures are formulated according to provisions stipulated in the Law of the People’s Republic of China on Import and Export Commodity
Inspection (hereinafter referred to as the Law of Commodity Inspection) and in its Regulations for Implementation, and for the purpose
of facilitating foreign trade, encouraging enterprises manufacturing export industrial products to improve their management level
and product quality, and of standardizing inspection and administration activities thereof.

Article 2

The Measures shall apply to the inspection, supervision and administration of enterprises manufacturing those export industrial products
as listed in the Catalogue of Import and Export Commodities Subject to Inspection and Quarantine by the Import and Export Inspection
and Quarantine Authorities.

The Measures shall not apply to administration of enterprises manufacturing dangerous products and package thereof, products with
unsteady quality or products that need to be transported in bulk.

Article 3

The term “classified administration” in the Measures refers to an inspection administration method through which different inspection
supervision and management modes be applied to different enterprises manufacturing export industrial products, according to their
manufacturing conditions, management level, inspecting efficiency, product quality and the product risk degree and with a view to
reaching the goal of scientific management and effective supervision, and to promoting the export industry of China.

Article 4

General Administration of Quality Supervision, Inspection and Quarantine (hereinafter referred to as the AQSIQ) shall be responsible
for the unified management of classified administration of enterprises manufacturing export industrial products across the country.

Local entry-exit inspection and quarantine bureaus established by and directly under the General Administration of Quality Supervision,
Inspection and Quarantine (hereinafter referred to as the inspection and quarantine bureaus directly under the AQSIQ) shall be responsible
for the supervision and management of classified administration of enterprises manufacturing export industrial products within areas
under their jurisdiction.

Local entry-exit inspection and quarantine authorities established by the General Administration of Quality Supervision, Inspection
and Quarantine (hereinafter referred to as the inspection and quarantine authorities) shall be responsible for the application acceptance,
examination and daily inspection, supervision and management of the classified administration of enterprises manufacturing export
industrial products within areas under their jurisdiction.

Article 5

The inspection and quarantine authorities shall classify enterprises manufacturing export industrial products into three classes,
the first class, the second class and the third class, according to relevant regulations and shall exercise corresponding inspection
supervision and management.

Chapter II Enterprise Classification

Article 6

The first-class enterprise shall meet the following conditions:

(1)

It sticks to the Law of Commodity Inspection as well as its Regulations for Implementation, and to other relevant rules stipulated
by the AQSIQ;

(2)

It has sound quality management system, and has passed the ISO 9000 Quality Management System Certification or is equally competent
to effectively guarantee the product quality;

(3)

It has obtained relevant certificates if the export products it manufactures are subject to Safety License System or Compulsory Product
Certification System;

(4)

It has a certain large scale of export volume with steady product quality;

(5)

Its products have passed random safety, healthy and environment protection inspection or testing and are proved to have met relevant
requirements. For those export products subject to yearly safety and quality type of test by a designated laboratory according to
rules stipulated by the AQSIQ, and it must pass such a type of test;

(6)

It has established relevant export inspection systems and bodies, and has sound testing equipments and competent checkers who have
received relevant training and been registered by the inspection and quarantine authority;

(7)

The pass rate of the yearly block inspection by the inspection and quarantine authority is no lower than 98%;

(8)

The enterprise has a high reputation for its good product quality, and no rejected goods, counterclaim or other accidents for the
sake of product quality has occurred within the recent two years.

Article 7

The second-class enterprise shall meet the following conditions:

(1)

It sticks to the Law of Commodity Inspection as well as its Regulations for Implementation, and other relevant rules stipulated by
the AQSIQ;

(2)

It has sound and effective quality management system;

(3)

It has obtained relevant certificates if the export products it manufactures are subject to Safety License System or Compulsory Product
Certification System;

(4)

It has a certain large scale of export volume;

(5)

Its products have passed random safety, healthy and environment protection inspection or testing and are proved to have met relevant
requirements. For those export products subject to yearly safety and quality test by a designated laboratory according to rules stipulated
by the AQSIQ, they shall pass such type of test;

(6)

It has necessary testing equipments and competent checkers who have received relevant training and been registered by the inspection
and quarantine authority;

(7)

The pass rate of the yearly block inspection by the inspection and quarantine authority is not less than 95%;

(8)

The products have good quality, and no rejected goods, counterclaim or other accidents due to the quality of the products occurred
within the late one year.

Article 8

Those enterprises which have not been listed into the first or second class, and which have engaged in export manufacture for less
than one year shall be classified as third-class enterprises.

Article 9

Export products manufactured by one enterprise but fall into different types or subject to different technical requirements may be
classified into different classes and be controlled respectively according to differences between their manufacturing conditions
and product quality.

Chapter III Application and Examination

Article 10

The enterprise manufacturing export industrial products which apply for the first or second class enterprise (hereinafter referred
to as the application enterprise) shall apply to the inspection and quarantine authority at its locality, and shall submit the following
materials:

(1)

a written application which includes the class to be applied, the name of the enterprise, the specification and type of the export
products, etc;

(2)

the qualified certificate of safety and quality test conducted according to rules stipulated by the AQSIQ;

(3)

certificates for quality management system certification and documents of quality management system;

(4)

certificates for the pass rate of yearly block inspection of the previous year produced by the inspection and quarantine authority
at its locality;

(5)

other relevant certificates if the enterprise and its export products are subject to Safety License System or Compulsory Product Certification
System.

Article 11

The inspection and quarantine authority shall organize examination to the application enterprise without undue delay.

The first-class-enterprise application shall be subject to the examination of the inspection and quarantine bureau directly under
the AQSIQ. If the applicant is qualified, the bureau shall report to the AQSIQ its initial examination conclusion and relevant materials.
The second-class-enterprise application shall be subject to the examination of the inspection and quarantine authority at its locality.
If the applicant is qualified, the authority shall report its initial examination conclusion and relevant materials to the inspection
and quarantine bureau directly under the AQSIQ.

Article 12

The inspection and quarantine authority shall, sticking to the relevant requirements and in light of the actual local situation, conduct
examination to the applicant’s product quality, quality management system, personnel, manufacturing and testing equipment and so
on.

The inspection and quarantine authority shall not conduct overlapped test or examination to any item of one enterprise during a same
year.

Article 13

the AQSIQ shall review the qualified first-class application and publicize the list of final approved enterprises.

The inspection and quarantine bureau directly under the AQSIQ shall review the qualified second-class applications and publicize the
list of final approved enterprises.

Chapter IV Inspection Supervision and Management

Article 14

The inspection and quarantine authority shall conduct random block inspection or inspection for each batch of industrial products
to be exported and manufactured by enterprises subject to classified administration according to their different classes.

(1)

The first-class enterprises: yearly random block inspection rate shall be 5% to 15%;

(2)

The second-class enterprises: yearly random block inspection rate shall be 30% to 45%;

(3)

The third-class enterprises: yearly random block inspection rate shall be 60% to 100%.

Article 15

The inspection and quarantine authorities shall have strict control on the yearly random block inspection rate, and shall work out
a suitable inspection supervision and management plan and keep relevant inspection records.

Article 16

The inspection and quarantine authority may, according to the actual circumstances, degrade an enterprise subject to classified administration
to a lower class if the enterprise commits any of the following wrongdoings:

(1)

the pass rate of yearly block inspection by the inspection and quarantine authority does not meet the requirements;

(2)

a foreign counterclaim arises due to serious quality problem;

(3)

unqualified products are incessantly found in the random inspections by the inspection and quarantine authority;

(4)

the enterprise’s checker makes false statements in the inspection;

(5)

other wrongdoings violating laws and regulations.

The degraded enterprise shall not apply for recovering its former class until 6 months later, and the application must be subject
to examination, review and publicity again.

Article 17

The enterprise manufacturing export industrial products subject to the classified administration shall submit its product quality
control and analysis report to the inspection and quarantine authority each year.

Article 18

The inspection and quarantine authority may choose different inspection supervision and management mode and apply it to the enterprise
manufacturing industrial products to supervise its product quality before they are marketed, according to the enterprise’s class,
the nature and risk degree of its products and in terms of relevant provisions.

Article 19

The period of validity of the classified administration to the enterprises manufacturing industrial products is two years, which shall
be counted as of the day of publication by the inspection and quarantine authority. If an enterprise wishes to continue the classified
administration, it shall, in terms of provisions in Article 10 of the Measures, go through the application procedure again 60 days
before the period of validity expires.

Article 20

As for the enterprise reapplying for classified administration, the inspection and quarantine authority shall streamline examination
procedures upon consideration of the ordinary supervision and management results, and if the enterprise is qualified, the authority
shall publicize the case after review and approval.

Article 21

If any important change occurs to the product designs, manufacturing techniques, technical conditions, and so on, of the enterprise
manufacturing export industrial products, the enterprise shall report it without delay to the inspection and quarantine authority,
and the authority shall newly recognize its class.

Chapter V Supplementary Provisions

Article 22

The inspection and quarantine bureaus directly under the AQSIQ shall formulate the implementation regulations for the Measures, according
to principles stipulated in the Measures and taking the actual local situations of their own areas into consideration, and shall
exercise the regulations after reporting it to the AQSIQ for record.

Article 23

The inspection and quarantine authority shall carry out annual reviews on the classified administration activities, and the inspection
and quarantine bureaus directly under the AQSIQ shall collect relevant materials and report them to the AQSIQ before the end of February
of the next year.

Article 24

The right to interpret the Measures shall remain with the AQSIQ.

Article 25

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

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

INTERIM PROVISIONS CONCERNING THE MANAGEMENT OF CHINESE-FOREIGN JOINT JOB INTERMEDIARIES

Ministry of Personnel, Ministry of Commerce, State Administration for Industry and Commerce

Order of the Ministry of Personnel, Ministry of Commerce and the State Administration of Industry and Commerce

No.2

The Interim Provisions Concerning the Management of Chinese-foreign Joint Job Intermediaries, which has been examined and approved
by the executive meetings of the Ministry of Personnel, the Ministry of Commerce and the State Administration for Industry and Commerce,
is hereby issued and shall be put into effect as of November 1, 2003.

Zhang Bailin, Minister of the Ministry of Personnel

Lv Fuyuan, Minister of the Ministry of Commerce

Wang Zhongfu, Director of the State Administration for Industry and Commerce

September 4, 2003

Interim Provisions Concerning the Management of Chinese-foreign Joint Job Intermediaries

Chapter I General Provisions

Article 1

The present Provisions are developed in accordance with the Law of the People’s Republic of China on Chinese-foreign Joint Ventures
and other relevant laws and regulations, with an aim to strengthen the management of Chinese-foreign joint job Intermediaries, to
secure the order and to facilitate the healthy development of the employment market.

Article 2

The term “Chinese-foreign Joint Job Intermediaries” in the present Provisions refers to job intermediaries jointly established in
China by any foreign company, enterprise or other economic organization providing job intermediary services and any Chinese company,
enterprise or other economic organization providing job intermediary services.

Article 3

Any foreign company, enterprise or other economic organization providing job intermediary services that wants to set foot in job intermediary
services in China must operate jointly with a Chinese company, enterprise or other economic organization for offering job intermediary
services through a jointly-established intermediaries.

No wholly foreign-owned job intermediaries are permitted to found. Such organizations as foreign enterprises’ resident representative
office in China, or chambers of commerce established in China by any foreign enterprise are permitted to provide job intermediary
services in China.

Article 4

All Chinese-foreign joint job intermediaries shall comply with the laws and regulations of the People’s Republic of China and may
not do anything detrimental to the public interests or national security of the People’s Republic of China.

The legitimate business activities and legal rights and interests of Chinese-foreign joint job intermediary agencies shall be protected
by the law of the People’s Republic of China.

Article 5

The administrative department of personnel, administrative department of Commerce and the administrative department of industry and
commerce of the people’s governments at the level of province, autonomous region or municipality directly under the jurisdiction
of the central government shall, in accordance with the division of functions and roles take charge of the examination and approval,
registration, management and supervision of Chinese-foreign joint job intermediaries in their administrative region.

Chapter II Incorporation and Registration

Article 6

The incorporation of any Chinese-foreign joint job intermediaries shall meet the following requirements:

(1)

The Chinese investor who applies to be incorporated into Chinese-foreign joint job intermediaries must be a job intermediary existed
for not less than three years. On the other hand, the foreign investor must be a foreign company, enterprise or other economic organization
having been offering job intermediary services for not less than three years, and both of the two investors must have good reputations;

(2)

The intermediary to be incorporated shall have a sound organization structure, have personnel who are familiar with the management
of human resources, including five or more full-time employees who are graduates of junior college or above and have a qualification
certificate for job intermediary services;

(3)

The intermediary to be incorporated shall have an appropriate permanent office, adequate funds and office facilities necessary for
the business it applies, with a registered capital of 300,000 US dollars or more, of which the contribution made by the foreign investor
shall be at least 25% and the share of the Chinese investor shall be over 51%;

(4)

The intermediary to be incorporated shall have sound and practical articles of association, management system, working rules and definite
scope of business;

(5)

The intermediary to be incorporated shall have independent civil rights and obligations; and

(6)

Other requirements as prescribed by laws or regulations.

Article 7

Any application for incorporating a Chinese-foreign joint job intermediary shall be submitted to be examined and approved by the administrative
department of personnel of the people’s government of the province, autonomous region or municipality directly under the jurisdiction
of the central government where the agency is to be located, and the related records shall be submitted to the administrative department
of personnel of the State Council.

Article 8

One that wants to apply for the incorporation of any Chinese-foreign joint job intermediary must submit the following materials to
the administrative department of personnel of the local government of the province, autonomous region or municipality directly under
the jurisdiction of the central government:

(1)

a written application and a feasibility study report;

(2)

an agreement and a statute with signature of all investors;

(3)

qualification certificates showing that all of the investors have been providing job intermediary services for not less than three
years;

(4)

the Notice of Advance Approval of Enterprise Name issued by the administrative department of industry and commerce; and

(5)

other materials required by laws, regulations or the administrative department of personnel of provincial government, autonomous region
or municipality directly under the jurisdiction of the Central Government.

If any of the materials stated above is written in any foreign language, the Chinese version of that material shall be attached thereto.

Article 9

The administrative department of personnel of the provincial government, autonomous region or municipality directly under the jurisdiction
of the Central Government shall accomplish the examination and approval procedures within 30 working days from receipt of the application
for the incorporation of any Chinese-foreign joint job intermediary. A License for Job Intermediary Service (hereinafter referred
to as “license”) shall be issued if the application has been approved, and a related report shall be submitted to the administrative
department of personnel of the State Council to be kept in archives; If the application has been rejected, a written notice shall
be sent to the applicant explaining the reasons for such disapproval.

Article 10

According to regulations the applicant shall carry out the approval formalities with the administrative department of Commerce within
30 days from receipt of the license, and shall carry out the registration formalities with the administrative department of industry
and commerce within 30 days from the issuance of the approval certificate.

Chapter III Scope of Business and Management

Article 11

The administrative department of personnel of provincial government, autonomous region or municipality directly under the jurisdiction
of the Central Government shall, in the light of the capital, personnel and management level of the Chinese-foreign joint job intermediary,
approve it to enter one or more of the businesses listed below:

(1)

Collection, classification, storage and publication of information about the employment market and related advisory services;

(2)

Talent recommendation;

(3)

Talent recruitment;

(4)

Career test and appraisal;

(5)

Career training within China; and

(6)

Other relevant businesses ordained by laws and regulations.

Article 12

Any Chinese-foreign joint job intermediaries must comply with the principles of voluntary participation, impartiality and good credit,
as well as professional ethics, conduct business activities within the approved scope of business, and may not commit any act of
unfair competition.

Article 13

Any Chinese-foreign joint job intermediary that recruit talents to be employed outside China shall carry out formalities in accordance
with the relevant ordains of the Chinese government. None of the following persons may be recruited for jobs outside China if he:

(1)

is a technician or administrative person who is charged with key engineering or scientific research projects at the national or provincial
level, and if such employment outside China is not permitted by the entity he belongs to or by the competent administrative department;

(2)

is a civil servant in active service;

(3)

is assigned by the government to support the development of the Western Region of China and whose period of service in the west region
has not expired;

(4)

is involved in any confidential work, whether he is in service or out of service but still within the confidential period;

(5)

is suspected of any illegal commitment and is under investigations; or

(6)

is anyone at a special post who, according the relevant ordains of laws or regulations, is forbidden to flow for the time being, or
anyone whose exit is subject to approval according to the relevant ordains of any law or regulations.

Article 14

The foundation of a branch office, increase or decrease of registered capital, transfer of shares, and change of shareholders of a
Chinese-foreign joint job intermediary shall be subject to the approval of the initial examination and approval authorities and the
modification registration with the administrative department of industry and commerce is required.

Any Chinese-foreign joint job intermediary that changes its name, legal representative or location of its office shall, within 30
days after the registration of amendment with the administrative department of industry and commerce, carry out the relevant formalities
of modification for archival purposes with the initial examination and approval authorities.

Article 15

The administrative department of personnel of the State Council and of the people’s governments at the level of province, autonomous
region, and municipality directly under the jurisdiction of the Central Government shall, according to law, direct, examine and supervise
the daily management and business development of Chinese-foreign joint job intermediaries.

Each year the administrative department of personnel of the people’s governments at the level of province, autonomous region, and
municipality directly under the jurisdiction of the Central Government shall make examination of the licenses of Chinese-foreign
joint job intermediaries. The measures to be taken in such annual examinations shall be developed by the administrative department
of personnel of the people’s government of the province, autonomous region or municipality directly under the jurisdiction of the
Central Government. The result of such annual examination shall be submitted to the administrative department of personnel of the
State Council by the administrative department of personnel of the people’s governments at the level of province, autonomous region,
and municipality directly under the jurisdiction of the Central Government.

Chapter IV Penalty Provisions

Article 16

Any Chinese-foreign joint job intermediary who fails to duly undertake annual examination of the license, provides untrue information
or deceive the employers or people who are doing job hunting by any other means shall be given a warning or be punished with a fine
not exceeding 10,000 Yuan or both which depend on the severity of the activities; If the case is very serious, the amount of the
fine shall not exceed three times of the illegal income but in any event not exceeding 30,000 Yuan. The Penalty shall be enforced
by the administrative department of personnel of the people’s government of the province, autonomous region or municipality directly
under the jurisdiction of the Central Government combined with the administrative department of industry and commerce of the same
level.

Article 17

Anyone who violates the present Provisions and founds any Chinese-foreign joint job intermediary without the approval or anyone who
undertakes business activities beyond the approved and registered scope of business shall be punished in accordance with the Regulations
on the Management of Company Registration, Measures for Dealing with and Banning Licenseless Business Activities and other relevant
provisions. Anyone who commits any act of unfair competition shall be punished in accordance with the Law Against Unfair Competition.

Article 18

Anyone who serves in the government and neglects his duties, commits any embezzlement or malpractice and infringes on any legal rights
and interests of any entity, individual or investor shall be given a disciplinary penalty by the relevant authorities according to
the relevant competence or, if any crime is committed, be subject to criminal liabilities.

Chapter V Supplementary Provisions

Article 19

Any company, enterprise or other economic organization of Hong Kong Special Administrative Region, Macao Special Administrative Region
or Taiwan who establishes job intermediary in the mainland, shall be dealt by referring to the present Provisions.

Article 20

Business activities involving foreign citizens conducted in China by any Chinese-foreign joint job intermediary shall be handled in
accordance with relevant provisions.

Article 21

The power to interpret the present Provisions shall remain with the Ministry of Personnel, Ministry of Commerce and the State Administration
of Industry and Commerce.

Article 22

The present Provisions shall come into force as of November 1, 2003.

Ministry of Personnel, Ministry of Commerce, State Administration for Industry and Commerce
2003-09-04

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON DELEGATING THE POWER TO APPROVE ENTERPRISES OF CATEGORY A FOR ENJOYING EXPORT TAX REFUND TO LOWER LEVELS

20040601

State Administration of Taxation

Circular of the State Administration of Taxation on Delegating the Power to Approve Enterprises of Category A for Enjoying Export
Tax Refund to Lower Levels

GuoShuiFa [2003] No. 117

October 11th, 2003

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

With a view to streamlining the measures for the classified administration of the enterprises enjoying tax refund or exemption for
exported goods, the State Administration of Taxation has, after deliberation with the Ministry of Commerce, made decisions to delegate
the power to approve export enterprises of Category A to lower levels in light of the spirits of the Opinions on Doing Well the Follow-up
Work for the Projects Whose Examination and Approval Has Been Adjusted as issued by the Leading Group of the State Council for the
Reform of Administrative Approval System (GuoShenGaiFa [2003] No. 1). We hereby make the following notice on relevant matters:

The power to approve export enterprises of Category A as prescribed in the Circular of the General State Administration of Taxation
concerning Carrying Out the Classified Management According to Enterprises on Tax Refund or Exemption for Exported Goods (GuoShuiFa
[1998] No. 95) and the Supplementary Circular of the General State Administration of Taxation concerning Carrying Out the Classified
Management According to Enterprises on Tax Refund or Exemption for Exported Goods (GuoShuiFa [2001] No. 83) shall be delegated without
exception to the administration of State taxes of all provinces, autonomous regions, municipalities directly under the State Council,
and the cities directly under the State planning, and is not subject to reporting to the State Administration of Taxation.

II.

The administration of state taxes of all provinces, autonomous regions, municipalities directly under the Central Governments, and
the cities directly under the State planning shall be responsible for the examination and approval of the export enterprises of Category
A and the administration on the tax refund or exemption of exported goods strictly in conformity with the requirements and standards
for the Category A export enterprises as prescribed in the Circular of the General State Administration of Taxation concerning Carrying
Out the Classified Management According to Enterprises on Tax Refund or Exemption for Exported Goods (GuoShuiFa [1998] No.95) and
the Supplementary Circular of the General State Administration of Taxation concerning Carrying Out the Classified Management According
to Enterprises on Tax Refund or Exemption for Exported Goods (GuoShuiFa [2001] No. 83). The name list of the Category A export enterprises
determined after approval shall be submitted to and put on archival files at the State Administration of Taxation.

State Administration of Taxation
2003-10-11

DETAILED RULES FOR THE IMPLEMENTATION OF THE MEASURES FOR THE ADMINISTRATION OF AUTO FINANCING COMPANIES

China Banking Regulatory Commission

Notice of China Banking Regulatory Commission on Printing and Issuing Detailed Rules for the Implementation of the Measures for the
Administration of Auto Financing Companies

Yin Jian Fa [2003] No. 23

Detailed Rules for the Implementation of the Measures for the Administration of Auto Financing Companies adopted at 8th president
meeting of China Banking Regulatory Commission on November 3rd, 2003 are hereby printed and issued, please carry out graveness.

China Banking Regulatory Commission

November 12th, 2003

Detailed Rules for the Implementation of the Measures for the Administration of Auto Financing Companies

Chapter I General Provisions

Article 1

The present Rules are formulated in accordance with the Measures for the Administration of Auto Financing Companies (hereinafter referred
to as “Measures”) and other relevant administrative regulations.

Article 2

The China Banking Regulatory Commission (hereinafter referred to as “CBRC”) and its agencies shall make supervision over and administration
of the auto financing companies according to the Measures and the present Rules.

Chapter II Establishment

Article 3

The application for establishing an auto financing company shall include the application for preparing the establishment and the application
for starting the operation.

The banking regulatory bureau (CBRC’s dispatched agency at the provincial level) at the place where an auto financing company is to
be established shall be the examining and verifying authority for the application for establishing such auto financing company. CBRC
shall be the examining and approving authority for applications for the establishments of all auto financing companies.

Article 4

The banking regulatory bureau shall implement a system of signing the receipt of the application documents for preparing the establishment
and for starting the operation of an auto financing company.

Article 5

The applicant meeting the requirements of Article 5 of the Measures shall submit to the banking regulatory bureau an application
form for preparing the establishment of an auto financing company and the materials required in Article 9 of the Measures.

Article 6

The banking regulatory bureau shall make examination on whether all the required documents have been submitted within five working
days after signing the receipt of the application documents for preparing the establishment of an auto financing company. In case
the application documents submitted are not complete or not in the specified forms, the banking regulatory bureau shall inform the
applicant all by one written notice, and require the applicant to further submit the materials that need to be added. Where the application
documents are complete and all in specified forms, the banking regulatory bureau shall accept and handle the application and give
the applicant a written notice concerning that.

In case the banking regulatory bureau proclaims no objections within five working days, the application shall be regarded as accepted
automatically.

Article 7

The banking regulatory bureau shall examine and verify the application documents for preparing the establishment of an auto financing
company, give its opinion on whether or not to approve the application and submit such opinions to CBRC.

CBRC shall complete the examination and verification within 20 days after accepting the application documents.

CBRC shall be responsible for the examination and approval of the application for preparing the establishment, and shall make a decision
in writing on whether or not to approve the application within six months after the banking regulatory bureau’s acceptance of the
application for preparing the establishment.

Article 8

In the event of disapproval, CBRC shall give the applicant a written notice stating the ground for such disapproval. The applicant
may not make further application for the same purpose within six months from the date on which such disapproval is given.

Article 9

Any applicant having obtained the permit for preparing the establishment wishes to extend the period of preparations shall submit
to the banking regulatory bureau an application form for extension and a report on application for extension, explaining the reasons
for the extension. After examined and verified by the banking regulatory bureau, the application for extension shall be submitted
to CBRC for verification and approval.

Such extension shall be limited to one time for each case and the period of extension shall not exceed three months.

Article 10

The applicant shall, after the preparations for establishment have been completed, submit to the banking regulatory bureau an application
form for starting the operation and the materials required in Article 12 of the Measures.

Article 11

The banking regulatory bureau shall be responsible for the acceptance, and examination and verification of the application documents
for starting the operation. The procedures for such acceptance, examination and verification shall be the same as those specified
in Articles 6 and 7 of these detailed Rules.

CBRC shall make a decision in written form on whether or not to approve the application within three months after the banking regulatory
bureau’s acceptance of the application for starting the operation.

Article 12

CBRC shall be responsible for the verification and approval of the applications for starting the operation and the business scopes
of auto financing companies. In the event of a solely foreign-owned auto financing company or a Chinese-foreign joint auto financing
company, the Financial License shall be issued by CBRC. In the event of a Chinese-investment auto financing company, the Financial
License shall be issued by the banking regulatory bureau.

The Financial Licenses of auto financing companies shall be governed by the Measures for the Control of Financial Licenses and other
relevant provisions.

Article 13

CBRC is authorized by the Ministry of Commerce of the People’s Republic of China to issue the Approval Certificate of the People’s
Republic of China for an Enterprise with Foreign Investment to the solely foreign-owned and Chinese-foreign joint auto financing
companies who have been approved to start operation. After receiving the approval document for starting the operation, the solely
foreign-owned or Chinese-foreign joint auto financing company shall go through the relevant formalities with CBRC and make enterprise
registration by the approval document issued by CBRC, the Financial License and the aforesaid approval certificate. CBRC shall, on
the same day as issuing the approval certificate, submit to the Ministry of Commerce the approval certificate stub.

Article 14

The articles of association of an auto financing company shall at least cover the company’s name, place of business, type of ownership,
registered capital, scope of business, form of association, operation and management, and termination and liquidation.

Article 15

With regard to each auto financing company, there must be at least 60% persons of its personnel who have the experience in financial
field or are graduates of college or secondary specialized school majoring in finance. The application documents for starting the
operation of an auto financing company shall cover the information on the percentage of persons who have the experience in financial
field or are graduates of college or secondary specialized school majoring in finance.

Article 16

All the application documents either for preparing the establishment or for starting the operation shall be submitted in triplicate
and in Chinese.

Chapter III Qualifications for the Senior Administrative Personnel

Article 17

The term “senior administrative personnel of an auto financing company” means the legal representative of the company and the persons
who have decision-making power with regard to the operation and management of the company or who play a major role in risk control
of the company, that is, the directors, supervisors, general manager, deputy general manager, chief financial officer, manager of
the department of internal audit or inspection, and the administrative persons who are in other post_titles but have the same functions
and duties as mentioned above.

Article 18

The senior administrative personnel of an auto financing company must meet the following basic requirements:

(1)

Being well acquainted with and complying with the relevant economic and financial laws and regulations of the state; and

(2)

Having the professional knowledge, work experience and organizational and administrative abilities necessary for his post.

Article 19

Anyone who is under any of the following circumstances may not be the senior administrative personnel of any auto financing company:

(1)

Having a record of crime or having been severely punished for his illegal act;

(2)

Having caused grievous losses to the financial institution or other enterprise or company where he worked due to his serous mistakes
in his work in the past five years;

(3)

Bearing the major responsibility or the direct leader’s responsibility for any major improper act, revocation of the financial license
or business license or bankruptcy of the financial institution or other enterprise or company where he worked, and such event occurred
in the past five years; or

(4)

Other circumstances prescribed in laws and regulations under which one person may not be the senior administrative personnel of a
financial institution.

Article 20

The qualifications and appointments of the chairmen of board of directors, vice chairmen of board of directors, executive directors,
directors, general managers, deputy general managers and chief financial officers of auto financing companies shall be subject to
the examination and approval of CBRC and its agency. And the qualifications and appointments of other senior administrative personnel
of auto financing companies shall be subject to submission to CBRC and its agency for archival purposes.

Article 21

The senior administrative personnel of auto financing companies to whom the examination and approval system applies shall meet the
following conditions:

(1)

A person to be the chairman of board of directors, executive director or general manager must be a graduate of college or above, and
have experience in financial field of at least five years or in the management of auto production or sales of at least ten years.
In case he is not a graduate of college or above, he shall have experience in financial field of at least eight years or in the management
of auto production or sales of at least 15 years;

(2)

A person to be the vice chairman of board of directors or deputy general manager must be a graduate of college or above, and have
experience in financial field of at least three years or in the management of auto production or sales of at least six years. In
case he is not a graduate of college or above, he shall have experience in financial field of at least six years or in the management
of auto production or sales of at least 11 years;

(3)

A person to be the chief financial officer must be a graduate of college or above, and have experience of financial, accounting or
auditing work of at least six years. In case he is not a graduate of college or above, he shall have experience of financial, accounting
or auditing work of at least 14 years; and

(4)

A person to be a director must be a graduate of junior college or above, and have experience in enterprise operation and management
of at least six years. In case he is not a graduate of junior college or above, he shall have experience in enterprise operation
and management of at least ten years.

Article 22

With the appointment of senior administrative personnel to whom the examination and approval system is applied, the auto financing
company shall submit the following application documents (in triplicate) to the local agency of CBRC:

(1)

The qualifications form for examination and approval;

(2)

The application for verifying the qualifications of the person to be appointed;

(3)

The comprehensive appraisal on the conduct, professional ability, administrative ability and achievements of the person to be appointed
by the board of directors and board of supervisors of the company to make the appointment and by the present employer of the person
to be appointed;

(4)

A copy of the ID card of the person to be appointed;

(5)

The copies of the academic credentials and the certificate of professional skill, as recognized by the state, of the person to be
appointed; and

(6)

Other materials as may be required by CBRC or its agency.

Article 23

In the event of submission of information about senior administrative personnel of an auto financing company for CBRC’s and its agency’s
examination and approval, CBRC and its agency shall, within 90 days from the receipt of all the required application documents, give
a reply on whether or not to approve. In the event of disapproval, a written notice shall be given to the applicant explaining the
reasons for this disapproval.

Article 24

CBRC and its agency may hold examinations or tests for or talks with a person who is to be appointed to a senior administrative post
and whose qualifications and appointment are subject to the examination and approval of CBRC and its agency.

Article 25

With regard to the appointment of senior administrative personnel to whom the system of submission for archival purposes is applied,
the auto financing company shall submit the following materials (in triplicate) to the local agency of CBRC:

(1)

The qualifications form for archival purposes;

(2)

The copy of the ID card of the person to be appointed;

(3)

The copies of the academic credentials and the certificate of professional skill, as recognized by the state, of the person to be
appointed; and

(4)

Other materials as may be required by CBRC or its agency.

Article 26

In the event of submission of information about senior administrative personnel of an auto financing company for archival purposes,
in case the local agency of CBRC does not make any objection in written form within 30 days after the receipt of all the required
information, it shall be regarded as recognized.

Article 27

Without the approval of CBRC and its agency, the senior administrative personnel of an auto financing company, such as the chairman
of board of directors, vice chairman of board of directors, executive director, general manager, deputy general manager, chief financial
officer or manager of the department of internal audit or inspection, may not concurrently hold any post in any Party or government
organization or any post of senior management in any other company.

Article 28

The chairman of board of directors of an auto financing company may not concurrently hold the post of general manager. The director
of an auto financing company may not concurrently hold any post of senior management in any other company that is in a competitive
relation with the auto financing company.

Article 29

Where the chairman of board of directors or the general manager of an auto financing company fails to perform his duties for one month
or more in succession for any reason, other senior administrative personnel shall be appointed as the acting chairman of board of
directors or general manager, provided that such appointment shall be subject to the submission to the local agency of CBRC for archival
purposes in advance. Where the chairman of board of directors or the general manager fails to perform his duties for three months
or more in succession, he shall be replaced.

Article 30

When senior administrative personnel of an auto financing company is to leave his post, the company shall engage an external auditor
as approved by CBRC and its agency to make an audit on post-leaving.

Article 31

An audit report on post-leaving shall at least cover the following:

(1)

The situation of the business under the person’s charge;

(2)

Whether the business under the person’s charge was conducted in accordance with laws and regulations;

(3)

The situation of the internal control and risk management with regard to the business under the person’s charge;

(4)

The great economic or criminal cases occurred in the person’s scope of official duty and the person’s responsibility for such cases;
and

(5)

The conclusion of the audit.

Article 32

CBRC and its agencies shall establish and keep the archives of senior administrative personnel of auto financing companies. Such archives
shall at least cover the followings:

(1)

The application documents for appointments;

(2)

The documents and materials examined and verified by CBRC and its agencies;

(3)

The documents of CBRC and its agencies on approving the appointments;

(4)

The decisions made by CBRC and its agencies on sanctions on the senior administrative personnel or the documents of CBRC and its agencies
on disqualifying the senior administrative personnel;

(5)

The decisions made by the auto financing companies on sanctions on the senior administrative personnel;

(6)

The audit reports on post-leaving; and

(7)

Other important materials.

Article 33

Where any of senior administrative personnel bears personal responsibility or bear the direct leader’s responsibility for any of the
following circumstances, CBRC and its agency shall, according to the circumstances and the consequences, disqualify the person, for
a fixed period or for his whole life, from being such senior administrative personnel:

(1)

The person is subject to any criminal responsibility;

(2)

The person refuses, interferes with, obstructs or seriously affects the legal supervision and administration by CBRC or its agency
on the auto financing company;

(3)

The poor internal control system or ineffective management has caused heavy losses of assets or resulted in any great financial crime;

(4)

The company has conducted extremely improper operations. It has been in poor management and administration for a long period of time
and suffered heavy losses or it has been taken over, dissolved, enforced to merge or declared bankrupt;

(5)

In the event of any great financial crime, the company fails to report the case without delay, fails to take proper measures, or fails
to cooperate with the competent authorities in the latter’s investigation or handling of the case, or interferes with or obstructs
the investigation and handling of the case;

(6)

The senior administrative personnel is found, after the appointment, to have committed any illegal or improper act or have other circumstances
that preclude his being a senior administrative personnel; and

(7)

Other circumstances as specified by CBRC or its agency.

Article 34

CBRC and its agencies may circulate a notice on the disqualification of senior administrative personnel of an auto financing company.

Chapter IV Risk Control, Supervision and Management

Article 35

Any auto financing company shall set up a sound risk management system aiming at risk control, which includes the following:

(1)

Setting up an organizational structure for good management of the company, with the duties and responsibilities reasonably and clearly
divided and the accounting relations clearly specified, and setting up the scientific and highly efficient decision-making and encouraging
and restricting mechanisms; and

(2)

Establishing and improving the internal control system by referring to the Guidance for Internal Control of Commercial Banks and under
the principles of generality, discretion, effectiveness and independence, and submitting that to the local agency of CBRC for archival
purposes.

Article 36

Any auto financing company shall establish a board of directors, other than in the event of a solely foreign-owned auto financing
company which has only a single director, and which shall engage an external independent director.

Article 37

Any auto financing company shall have its assets divided into five classes and, by referring to the Guiding Principles for Classified
Loan Risks, formulate rules for operating different classes of asset risks and implement them after submitting them to the local
agency of CBRC for archival purposes. It shall, in accordance with the Guidance for the Provision of Reverses for Loan Losses, set
up a cautious system of reserves for loan losses, and make timely and adequate provision of reserves for losses of assets.

Article 38

The formula for the calculation of the capital adequacy ratio of an auto financing company shall be: capital/risk-weighed assets.

Article 39

The capital of an auto financing company consists of the core capital and the subordinated capital. The core capital consists of paid-up
capital, capital reserves, surplus reserves and undivided profits. The subordinated capital consists of revalued reserves and general
reserves.

The core capital of an auto financing company shall be not less than 50% of all its capital.

Article 40

The calculation of the risk-weighed assets and different asset risk weights of an auto financing company are as follows:

Risk-weighed assets=claims against commercial banks0%+claims guaranteed by a commercial bank0%+claims with a guarantee of other
forms0%+assets in other forms00%+balance of guarantee business00%

A guarantee of other forms means a guarantee other than those provided by a commercial bank; assets in other forms do not include
cash.

At the calculation of the risk assets of each loan, the special-purpose reserve shall be first deducted from the book value of the
loan, and the devaluation reserves for other assets shall also be deducted from the book value of the relevant asset account.

Article 41

The ratio between the balance of credit provided by an auto financing company to a single borrower and the company’s registered capital
shall not exceed 15%.

The credit balance comprises stated accounts and unstated accounts.

Article 42

The ratio between the balance of credits provided by an auto financing company to the biggest ten clients shall not exceed 50% of
its registered capital.

Article 43

No auto financing company may give any unsecured loan to any of its affiliated persons, nor may it extend any credit to any of its
affiliated persons on terms more favorable than those offered to other borrowers with the same kind of credit.

Article 44

The balance of the credit extended by an auto financing company to any single director of the company and the affiliated persons of
the director shall not exceed 100% of the investment by the director to the company.

Article 45

The credit balance under Articles 41, 42 and 44 of the present Rules refers to the balance after deducting the cash and money equivalent
given in pledge by the borrower.

Article 46

The guarantee balance of an auto financing company shall not be more than 200% of its registered capital.

Article 47

The ratio between the fixed assets for its own use and the registered capital of an auto financing company shall not be more than
40%.

Article 48

The ratio between the current assets and current liabilities of an auto financing company shall be not lower than 100%.

The current assets cover cash, loans matured in a month, accounts receivable in a month and other assets that may be realized in a
month, provided that the amounts that are anticipated as not receivable shall be deducted from the aforesaid assets. The current
liabilities include deposits matured in a month, loans repayable in a month to financial institutions and other liabilities due in
a month.

Article 49

The loans for auto exhibition halls shall only be used for the construction of places required for the exhibition of finished motors.

Article 50

The interest rate of loans obtained by an auto financing company from other financial institutions shall apply the banker’s rates
mutatis mutandis. The interest rate of auto loans granted by an auto financing company may fluctuate by ?0-30% based on the legal
rate of interest as quoted by the People’s Bank.

Article 51

All the auto financing companies shall, in accordance with the provisions made by BCRC and its agency concerning the relevant supervision
and control, regularly submit to the local agency of CBRC their financial and accounting statements and reports on the implementation
of supervision and control indexes signed by its legal representative, and other materials as may be required by CBRC and its agency.

The legal representative of an auto financing company is held finally responsible for the authenticity of the aforesaid materials.

Article 52

CBRC and its agencies shall, by on-the-spot inspection and off-the-spot supervision and control, conduct overall check and appraisement
on each auto financing company’s implementation of the risk management system in which the legal person’s administrative structure
and internal control system serve as the key elements, of the capital adequacy ratio and other risk control indexes and of the systems
of classification of assets risks and asset loss reserves. CBRC and its agencies shall be enpost_titled to order any auto financing company
failing to meet the relevant requirements to make reform and consolidation, or suspend part or all of its business for reorganization.

CBRC and its agencies may designate an intermediary agency with proper credentials to make spot inspection on auto financing companies.

Chapter V Supplementary Provisions

Article 53

The term “auto financing business” means the business specified in Article 18 of the Measures.

Article 54

The term “the distributor” mentioned in Article 2 of the Measures means distributors who specially engage in the sales of motors
and does not include auto manufacturers or other sellers of motors.

Article 55

The enterprise legal person mentioned in Article 5 (1) of the Measures does not include any bank either in or out of China.

Article 56

The term “the buyer and seller of motors in China” mentioned in Article 2 of the Measures mean the buyers and sellers of motors in
China’s mainland and do not include those in Hong Kong, Macao or Taiwan.

Article 57

In the present Rules, the term “affiliated person” includes affiliated legal persons and affiliated natural persons.

The affiliated legal person of an enterprise means:

(1)

A legal person who directly or indirectly controls the enterprise or who is, together with the enterprise, under the common control
of any third person; or

(2)

An enterprise under the direct or indirect control of an affiliated natural person.

The term “affiliated natural person of an enterprise” means the senior administrative personnel of the enterprise and the close relatives
thereof. The affiliated natural persons of an auto financing company include in addition the personnel engaging in the credit business
and the close relatives thereof.

Article 58

The present Rules shall be implemented as of the promulgation. The responsibility to interpret the present Rules shall remain with
CBRC.

China Banking Regulatory Commission
2003-11-12

SUPPLEMENTARY NOTICE OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON ADJUSTING THE TAX REFUND RATE FOR EXPORTED GOODS

Ministry of Finance, State Administration of Taxation

Supplementary Notice of the Ministry of Finance and the State Administration of Taxation on Adjusting the Tax Refund Rate for Exported
Goods

Caishui [2003] No. 238

December 2, 2003

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

The “Notice of the Ministry of Finance and the State Administration of Taxation on Adjusting the Tax Refund Rate for Exported Goods”
(Caishui [2003] No. 222) has prescribed the tax refund rates applicable to exported goods since January 1, 2004. Our supplementary
notice concerning other relevant policies on tax refund for export is hereby giver as follows:

Where the goods are exported by small-scale taxpayers on their own or by means of authorization, it shall continue to implement the
tax exemption policies, and their tax amount on purchase items shall neither be deducted nor be refunded. If taxes are permitted
to be refunded to export enterprises for their export of goods purchased from small-scale taxpayers, it shall apply a tax refund
rate of 5% to any goods whose tax refund rate for export is prescribed by Document Caishui [2003] No. 222 to be 5%; and it shall
apply to a tax refund rate of 6% to any goods whose tax refund rate for export is prescribed by Document Caishui [2003] No. 222 to
be higher than 5%.

II.

Where products are exported within the “Catalogue on Export of Hi-tech Products” (2003 Edition), it shall uniformly comply with the
tax refund rate prescribed in Document Caishui [2003] No. 222.

III.

Computer software in export (Customs Export Code: 9803) shall be exempted from taxes, and their tax amount on purchase items shall
neither be deducted nor be refunded.

IV.

For the Chinese domestically produced articles and domestic labor services purchased by foreign embassies (consulates) to China and
their diplomats, the domestically produced equipment purchased by foreign-funded enterprises and qualified for tax-refund conditions,
as well as the mechanical and electronic products for which the domestic enterprise won the bid and for which international bid invitation
was held by using loans of foreign governments and international financial organizations prescribed in Article 9 of the “Notice
of the State Administration of Taxation on Some Issues Concerning Tax Refund for Export” (GuoshuiFa [2000] No. 165), as well as the
ocean engineering structures sold by the production enterprises prescribed in the “Notice of the Ministry of Finance and the State
Administrative Institution of Taxation on Applying VAT Refund to Ocean Engineering Structures” (Caishui [2003] No. 46) to domestic
maritime petroleum and natural gas exploitation enterprises, taxes shall still be refunded, deducted or exempted according to the
original policies.

The domestically produced equipment purchased by foreign-funded enterprises, with the taxes on which permitted to be refunded, covers
a scope of domestically produced equipment purchased within China, which conforms to the investment projects in the catalogue of
encouraged foreign investment industries in the “Catalogue for the Guidance of Foreign Investment Industries”, that is, Order No.
21 jointly promulgated by the former State Planning Commission, the former State Economic and Trade Commission and the former Ministry
of Foreign Trade and Economic Cooperation.

The tax refund rate that is applicable to the “exemption or deduction” policies for the steel “specially used for processing export”
sold by the named steel enterprises prescribed in the “Notice of the State Administration of Taxation, the State Economic and Trade
Commission, the Ministry of Finance, the General Administration of Customs, and the State Administration of Foreign Exchange on Printing
and Distributing the Detailed Rules for the Implementation of the Measures for Promoting Steel Production in Place of Steel Import”
(GuoshuiFa [1999] No. 68) to processing trade enterprises shall be notified separately.

The domestically sold or purchased goods other than those prescribed in Article 4 of the present Notice shall be deemed as the goods
whose taxes are permitted to be refunded or exempted upon export. The “exemption, deduction or refund” of taxes shall be handled
or the amount of “exempted or deducted” taxes shall be computed uniformly according to the tax refund rate prescribed in Document
CaishuiFa [2003] No. 222. For such goods, the “tax amount not permitted to be exempted or deducted” shall be calculated and be converted
into the costs.

The tax amount not permitted to be exempted or deducted = the sales amount named on common invoicestax levying rate of the sold
goods tax refund rate of the sold goods)

VI.

The present Notice shall enter into force as of January 1, 2004. The export date indicated by the customs on the “Customs Declaration
List for Exported Goods (the sheet of tax refund for export)” shall be deemed as the time criterion for Articles 1 through 3 of the
present Notice; while the time of issuance by the seller of common invoices shall be deemed as the time criterion for Articles 4
and 5.

Ministry of Finance, State Administration of Taxation
2003-12-02

BANKING SUPERVISION LAW OF THE PEOPLE’S REPUBLIC OF CHINA

The Standing Committee of the National People’s Congress

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

No.11

The Banking Supervision Law of the People’s Republic of China was adopted at the 6th session of the Standing Committee of the 10th
National People’s Congress of the People’s Republic of China on December 27, 2003. It is hereby promulgated and shall be implemented
as of February 1, 2004.

Hu Jintao, Chairman of the People’s Republic of China

December 27, 2003

Banking Supervision Law of the People’s Republic of China ContentChapter I. General Provisions

Chapter II. Supervision Institutions

Chapter III. Supervision Functions

Chapter IV. Supervision Measures

Chapter V. Legal Liabilities

Chapter VI. Supplementary Provisions

Chapter I. General Provisions

Article 1

The present Law is formulated to strengthen the supervision over the banking industry, regulate the activities of supervision, prevent
and eliminate banking risks, protect the legitimate rights and interests of the depositors and other clients and promote the sound
development of the banking industry.

Article 2

The banking supervision institution of the State Council shall be responsible for the supervision over the nationwide banking financial
institutions and operations.

The term “banking financial institutions” as mentioned in the present Law refers to the commercial banks, urban credit cooperatives,
rural credit cooperatives and other financial institutions and policy banks established within China and engaged in taking in deposits
of the general public.

The present Law shall be applicable to the supervision over the financial assets management companies, trust investment companies,
financial companies and the financial lease companies established within the People’s Republic of China and other financial institutions
established within China upon approval of the banking supervision institution of the State Council.

The banking supervision institution of the State Council shall, in accordance with the relevant provisions of the present Law, conduct
supervision over the financial institutions established abroad upon its approval and the overseas operations of the financial institutions
as mentioned in the preceding two paragraphs.

Article 3

The banking supervision shall be targeted for promoting the lawful, steady, and sound operations of the banking industry, and maintaining
the confidence of the general public in the banking.

The banking supervision shall protect the fair competitions of banking and improve the competitive ability of the banking industry.

Article 4

When conducting banking supervision, the banking supervision institutions shall comply with the principle of law compliance, openness,
impartiality and efficiency.

Article 5

The banking supervision institutions and their functionaries engaged in banking supervision shall perform their duties in accordance
with the law, shall be protected by the law. None of the local governments, government departments of all levels, the social institutions
and individuals may interfere with them.

Article 6

The banking supervision institution of the State Council shall establish a supervision information sharing system with the People’s
Bank of China and the other financial supervision institutions of the State Council.

Article 7

The banking supervision institution of the State Council may also establish cooperation systems with the banking supervision institutions
of other countries or regions for the purpose of conducting transnational supervision.

Chapter II. Supervision Institutions

Article 8

The banking supervision institution of the State Council may set up dispatched institutions in light of the needs for exercising their
duties. The banking supervision institution of the State Council shall practice unified leadership and management to the institutions
dispatched by it.

The institutions dispatched by the banking supervision institution of the State Council shall, within the powers granted by the banking
supervision institution of the State Council, perform their supervision duties.

Article 9

Among the functionaries of the banking supervision institutions, those engaged in supervision shall have the professional knowledge
and experiences adapting to their respective post.

Article 10

The functionaries of the banking supervision institutions shall devote to their duties, handle matters in pursuance of the law, be
impartial and clean, shall not seek improper interests by taking advantages of their posts, and shall not hold concurrent positions
in other financial institutions or other enterprises.

Article 11

The functionaries of banking supervision institutions shall keep the secrets of the state in accordance with the law, and shall be
obligated to keep the secrets of the banking financial institutions and the parties concerned under their supervision.

Where the banking supervision institution of the State Council exchanges supervision information with the banking supervision institutions
of other countries or regions, it shall make an arrangement to keep the information secret.

Article 12

The banking supervision institution of the State Council shall disclose the supervision procedures, shall establish supervision responsibility
system and internal supervision system.

Article 13

When the banking supervision institutions deal with the risks of a banking financial institution, investigate into and punish relevant
illegal financial offences, or carry out other supervision activities, the local governments, the departments of all levels shall
support and cooperate with them.

Article 14

The auditing, supervision and other organs of the State Council shall conduct supervision over the activities of the banking supervision
institution of the State Council in pursuance of the law.

Chapter III. Supervision Duties

Article 15

In accordance with the law and the administrative regulations, the banking supervision institution of the State Council shall formulate
and issue regulations and rules governing the supervision over the financial banking institutions and their operations.

Article 16

In pursuance of the requirements and procedures as prescribed in the laws and the administrative regulations, the banking supervision
institution of the State Council shall be responsible for the examination and approval of the establishment, modifications, termination
and operation scope of the banking financial institutions.

Article 17

With regard to an applicant for establishing a financial institution or a banking financial institution that modifies the shareholder
whose total capital contributions or total shares reach or exceed the prescribed proportion, the banking supervision institution
of the State Council shall examine the shareholder’s sources of funds, financial status, capital adequacy and credit standing.

Article 18

The operations within the operation scope of a banking financial institution shall be subject to the examination and approval of or
be registered by the banking supervision institution of the State Council. The specific operations shall be prescribed and announced
by the banking supervision institution of the State Council in accordance with the laws and administrative regulations.

Article 19

Without approval of the banking supervision institution of the State Council, no entity or individual may establish any banking financial
institution or carry on operations as a banking financial institution.

Article 20

The banking supervision institution of the State Council shall adopt qualification management for the appointment of directors and
senior managerial personnel of the banking financial institutions and it shall formulate specific measures.

Article 21

The rules for prudent operations governing the banking financial institutions may be provided for in the laws and administrative regulations,
and may also be formulated by the banking supervision institution of the State Council in accordance with the laws and administrative
regulations.

The term “rules for prudent operations” as mentioned in the preceding paragraph covers the risk management, internal control, capital
adequacy ratio, quality of capital, loss reserve fund, risk concentration, related transactions and liquidity of assets, etc.

All banking financial institutions shall strictly abide by the rules for prudent operations.

Article 22

The banking supervision institution of the State Council shall, within the prescribed time limit, make a written decision about approving
or disapproving any of the following items; if it decides to disapprove, it shall give the reasons:

(1)

The establishment of a banking financial institution, within 6 months from the day when the application documents are received;

(2)

The modification or termination, the operation scope and the operations added to the operation scope of a banking financial institution,
within 3 months from the day when the application documents are received;

(3)

The examination of the qualifications of the directors and senior managerial personnel, within 30 days from the day when the application
documents are received.

Article 23

The banking supervision institutions shall conduct non-on-site supervision over the operations and risk status of the banking financial
institutions, shall establish banking financial institution supervision information system, and shall analyze and evaluate the risk
status of banking financial institutions.

Article 24

A banking supervision institution shall conduct on-site inspection on the operations and risk status of the banking financial institutions.

The banking supervision institution of the State Council shall formulate on-site inspection procedures, and regulate on-site inspections.

Article 25

The banking supervision institution of the State Council shall adopt consolidated financial statements in conducting supervision over
the banking financial institutions.

Article 26

With regard to the advice given by the People’s Bank of China about the inspection on banking financial institutions, the banking
supervision institution of the State Council shall make a reply within 30 days from the day it receives the advice.

Article 27

The banking supervision institution of the State Council shall establish a banking financial institution supervision grade evaluation
system and a risk pre-warning system. It shall, in light of the grade and the risk situation of a banking financial institution,
determine the frequency and scope of on-site inspections, and other necessary measures.

Article 28

The banking supervision institution of the State Council shall establish a post responsibility system for the discovery and reporting
of banking emergencies.

Where a banking supervision institution discovers an emergency may result in a systematic banking risk or may seriously affect the
stability of the society, it shall immediately report to the person-in-charge of the banking supervision institution of the State
Council. If the person-in-charge considers it necessary to report to the State Council, it shall report to the State Council at once,
and shall inform the People’s Bank of China, the finance department of the State Council and other relevant departments.

Article 29

The banking supervision institution shall, jointly with the People’s Bank of China, the finance department of the State Council and
other relevant departments, shall establish a banking emergency handling system, formulate a banking emergency disposal plan and
clearly specify the handing institutions, the personnel and their duties, the measures and procedures so as to timely and effectively
handle any banking emergencies.

Article 30

The banking supervision institution of the State Council shall be responsible for the making of unified statistics and statements
of the nationwide banking financial institutions, and shall announce them in accordance with relevant regulations of the State.

Article 31

The banking supervision institution of the State Council shall guide and supervise the activities of the banking self-disciplinary
organizations.

The constitution of any banking self-disciplinary organization shall be submitted to the banking supervision institution of the State
Council for archival purposes.

Article 32

The banking supervision institution of the State Council may carry out activities of international communication and cooperation related
to banking supervision.

Chapter IV. Supervision Measures

Article 33

A banking supervision institution shall, in light of the needs to perform its duties, have the power to demand the banking financial
institutions to submit their asset-liability statements, profit statements, and other financial and accounting statements, operation
management materials and the audit reports issued by certified public accountants.

Article 34

In accordance with the requirement of prudent supervision, a banking supervision institution shall taking following measures for conducting
on-site inspection:

(1)

To conduct inspection by entering into a banking financial institution;

(2)

To question the functionaries of the banking financial institution, to demand them to give explanations about the relevant to-be-inspected
items;

(3)

To examine and copy the documents and materials relating to the to-be-inspected items, to seal up the documents and materials that
may be moved, hidden or destroyed;

(4)

To examine the banking financial institution’s computer system for operation data management.

An on-site inspection shall be subject to the approval of the person-in-charge of the banking supervision institution. In an on-site
inspection, the number of inspectors shall not be less than 2, and the inspectors shall show their legitimate certificates and the
inspection notice. Under the circumstance of insufficient number of inspectors or a failure to show the legitimate certificates and
inspection notice, the banking financial institution shall be enpost_titled to refuse the inspection.

Article 35

In light of the needs to perform the duties, a banking supervision institution may talk with the directors and the senior managerial
personnel of a banking financial institution, may demand them to give explanations about significant matters concerning the operations
and risk control of this banking financial institution.

Article 36

The banking supervision institutions shall order the banking supervision institutions to faithfully disclose the information about
the financial and accounting statements, the status of risk management, the replacement of the directors and senior managerial personnel
and other significant matters.

Article 37

Where a banking financial institution is in violation of the prudent operation rules, the banking supervision institution of the State
Council or its dispatched institution of the province level shall order it to get right within a time limit. If the banking financial
institution fails to do so, or if its offences are so serious that will endanger the steady and sound operations of the banking financial
institution or impair the legitimate rights and interests of the depositors or other clients, the following measures may be taken
on the basis of different circumstances upon approval of the person-in-charge of the banking supervision institution of the State
Council:

(1)

To order it to suspend some of its operations, to stop approving new operations;

(2)

To restrict the distribution of bonus and other incomes;

(3)

To restrict the alienation of assets;

(4)

To order the controlling shareholder to transfer its stock right or to restrict the powers of relevant shareholders;

(5)

To order it to replace the directors and senior managerial personnel or restrict their powers;

(6)

To stop approving the establishment of any new branches.

After a banking financial institution gets right, it shall submit a report to the banking supervision institution of the State Council
or to its dispatched institution on the province level, which shall conduct a re-inspection. If the banking financial institution
is found to meet the prudent operation rules upon re-inspection, the relevant measures as mentioned in the preceding paragraph shall
be lifted within 3 days as of the completion of the re-inspection.

Article 38

Where a banking financial institution has already had or may have a credit crisis, which seriously impairs the legitimate rights and
interests of the depositors and other clients, the banking supervision institution of the State Council may take over the banking
financial institution or urge it to restructure. The taking over and restructure shall be implemented in accordance with the relevant
laws and the regulations of the State Council.

Article 39

Where a banking financial institution conducts illegal operations or faulty operations and management, and it will seriously impair
the financial order and the interests of the general public unless cancelled, the banking supervision institution of the State Council
shall be empowered to cancel it.

Article 40

Where a banking financial institution is taken over, restructured or canceled, the banking supervision institution of the State Council
shall be empowered to demand the directors, the senior managerial personnel and other functionaries to perform their duties according
to the requirements of the banking supervision institution of the State Council.

During the course of taking over, restructure or cancellation liquidation, the following measures may be taken against the direct
liable directors, senior managerial personnel and other direct liable persons upon approval of the person-in-charge of the banking
supervision institution of the State Council:

(1)

If the direct liable directors, senior managerial personnel and other direct liable persons exit China, and the interests of the state
will suffer a serious loss, the exit administrative organs shall be given a notice prohibiting them from exiting China in accordance
with the law;

(2)

It shall request the judicial organ to prohibit the banking financial institution from moving, transferring its properties or setting
other rights to its properties.

Article 41

Upon approval of the person-in-charge of the banking supervision institution of the State Council or upon approval of the person-in-charge
of its dispatched institution on the province level, the banking supervision institution shall be empowered to inquire about the
bank accounts of a banking financial institution that is suspected of conducting illegal financial operations, its functionaries
and other persons involved. With regard to those who are suspected of moving or hiding illegal funds, upon approval of the person-in-charge
of the banking supervision institution, an application may be filed to the judicial organ for freezing the funds.

Chapter V. Legal Liabilities

Article 42

Any of the functionaries engaged in supervising banking supervision institutions is under any of the following circumstances shall
be given an administrative sanction in pursuance of the law; if any crime is constituted, he (she) shall be subject to the criminal
liabilities.

(1)

Violating the requirements in examining and approving the establishment, modifications, termination, operation scope and the specific
operations within the operation scope of the banking financial institutions;

(2)

Violating the requirements in conducting on-site inspections on the banking financial institutions;

(3)

Failing to report the emergencies in accordance with Article 28 of the present Law;

(4)

Violating the requirements in inquiring about the banking accounts or applying for freezing them;

(5)

Violating the requirements in taking measures against or punishing a banking financial institution; or

(6)

Other offences of abusing his (her) powers or neglecting his (her) duties.

With regard to a functionary engaged in supervising banking supervision institutions who embezzles public funds, accepts bribes, betrays
state secrets or divulges the commercial secrets that he (she) knows, if any crime is constituted, he (she) shall be subject to the
criminal liabilities in accordance with the law; if no crime is constituted, he (she) shall be given an administrative sanction in
accordance with the law.

Article 43

Any one who establishes a banking financial institution without approval or illegally carries on operations as a banking financial
institution shall banned by the banking supervision institution of the State Council; if any crime is constituted, he (she) shall
be subject to criminal liabilities; if no crime is constituted, the banking supervision institution of the State Council shall confiscate
its illegal gains; if the amount of the illegal gains is not less than 550, 000 Yuan, a fine of not less than the same amount of
but not more than 5 times of the amount of the illegal gains shall be imposed on it; if there are no illegal gains or the amount
of the illegal gains is less than 550, 000 Yuan, a fine of 500, 000 Yuan up to 2, 000, 000 Yuan shall be imposed on it.

Article 44

Where a banking financial institution is under any of the following circumstances, it shall be ordered to get right by the banking
supervision institution of the State Council. If there are illegal gains, the illegal gains shall be confiscated; if the amount of
the illegal gains are not less than 500, 000 Yuan, a fine of not less than the same amount of or not more than 5 times of the amount
of the illegal gains shall be imposed; if there are no illegal gains or the illegal gains are less than 500, 000 Yuan, a fine of
500, 000 up to 2, 000, 000 Yuan shall be imposed. If the circumstance is extremely serious, or if the banking financial institution
fails to get right within the time limit, the banking supervision institution of the State Council may order it to stop its operations
for internal rectification or withdraw its business license; if any crime is constituted, it shall be subject to the criminal liabilities
according to law:

(1)

Establishing a branch without approval;

(2)

Making modification or terminating without approval;

(3)

Violating any of the regulations, or carrying on operations without approval or without registration;

(4)

Violating any of the regulations, elevating or lowering savings interest rates and credit interest rates.

Article 45

Where a banking financial institution is under any of the following circumstances, it shall be ordered to get right by the banking
supervision institution of the State Council, and shall be imposed on a fine of 200, 000 up to 500, 000 Yuan; if the circumstance
is extremely serious, or if it fails to get right within the time limit, the banking supervision institution of the State Council
may order it to stop its operations for internal rectification or withdraw it business license; if any crime is constituted, it shall
be subject to criminal liabilities in accordance with the law:

(1)

Appointing directors and senior managerial personnel without undergoing qualification examination;

(2)

Refusing or hindering the non-on-site supervisions or on-site inspections;

(3)

Providing false statements, reports and other documents and materials or providing statements, reports and other documents and materials
without disclosing imports facts;

(4)

Failing to disclose the information as required;

(5)

Violating the prudent operation rules seriously; or

(6)

Refusing to execute the measures as provided in Article 37 of the present Law.

Article 46

Where a banking financial institution fails to provide the statements, reports and other documents and materials as required, it shall
be ordered to get right the banking supervision institution within a time limit. If it fails to get right within the time limit,
it shall be imposed on a fine of 100, 000 up to 300, 000 Yuan.

Article 47

Where a banking financial institution is in violation of the laws, administrative regulations and the relevant regulation of the state
on banking supervision, the banking supervision institution shall not only punish it in accordance with Articles 43 through 46 of
the present Law, but also may take the following measures in light of the different circumstances:

(1)

To order the banking financial institution to give a disciplinary sanction to the direct liable directors, senior managerial personnel
and other liable persons;

(2)

If the offences of the banking financial institution constitute no crime, the direct liable directors, senior managerial personnel
and other direct liable persons shall be given a warning, and be imposed on a fine of 50, 000 up to 500, 000 Yuan;

(3)

To disqualify the direct liable directors, senior managerial personnel from taking the positions for a certain time period to even
a life-long period, to prohibit the direct liable directors, senior managerial personnel and other direct liable persons from engaging
in banking operations for a certain time period to even a life-long period.

Chapter VI. Supplementary Provisions

Article 48

Where it is otherwise provided for the supervision over the policy banks and financial assets management companies established within
the People’s Republic of China in the laws and administrative regulations, the relevant laws and administrative regulations shall
prevail.

Article 49

Where it is otherwise provided for the supervision over the foreign-funded banking financial institutions, the Sino-foreign joint
equity banking financial institutions and the branches of foreign banking financial institutions established within the People’s
Republic of China in the laws and administrative regulations, the relevant laws and administrative regulations shall prevail.

Article 50

The present Measures shall be implemented as of February 1, 2004.

The Standing Committee of the National People’s Congress
2003-12-27

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Russia Laws

The basic law

Concluding and Transitional Provisions

MEASURES FOR THE CLASSIFIED ADMINISTRATION OF ENTERPRISES MANUFACTURING EXPORT INDUSTRIAL PRODUCTS

INTERIM PROVISIONS CONCERNING THE MANAGEMENT OF CHINESE-FOREIGN JOINT JOB INTERMEDIARIES

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON DELEGATING THE POWER TO APPROVE ENTERPRISES OF CATEGORY A FOR ENJOYING EXPORT TAX REFUND TO LOWER LEVELS

DETAILED RULES FOR THE IMPLEMENTATION OF THE MEASURES FOR THE ADMINISTRATION OF AUTO FINANCING COMPANIES

SUPPLEMENTARY NOTICE OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON ADJUSTING THE TAX REFUND RATE FOR EXPORTED GOODS

BANKING SUPERVISION LAW OF THE PEOPLE’S REPUBLIC OF CHINA

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