CIRCULAR OF SHANGHAI BRANCH OF THE PEOPLE’S BANK OF CHINA ON TRANSMITTING THE CIRCULAR OF THE PEOPLE’S BANK OF CHINA ON RAISING THE RATE OF RENMINBI DEPOSIT RESERVE

Circular of Shanghai Branch of the People’s Bank of China on Transmitting the “Circular of the People’s Bank of China on Raising the
Rate of Renminbi Deposit Reserve”

Shanghai Yin Fa [2006] No. 238

Bank of Shanghai, Shanghai Rural Commercial Bank, all finance corporations in Shanghai, all foreign-funded banks engaging in Renminbi
business in Shanghai,

We hereby transmit the “Circular of the People’s Bank of China on Raising the Rate of Renminbi Deposit Reserve” ([2006] No. 383) to
you, and relevant matters are expressed as follows. Please abide by and implement it strictly.

I.

As of November 15, 2006, the Bank of Shanghai, all finance corporations in Shanghai and all foreign-funded banks engaging in Renminbi
business in Shanghai shall execute the rate of Renminbi deposit reserve of 9%.

II.

Shanghai Rural Commercial Bank shall still execute the rate of Renminbi deposit reserve of 6% temporarily.

III.

All financial institutions shall, in light of the requirement of the present Circular, reasonably adjust your structure of assets
and liabilities, intensify liquidity management, and timely do a good job in depositing Renminbi deposit reserves as well as in submitting
relevant statements and materials.

Attachment: Circular of the People’s Bank of China on Raising the Rate of Renminbi Deposit Reserve (Yin Fa [2006] No. 383)

Shanghai Branch of the People’s Bank of China

November 3, 2006
Attachment:
Circular of the People’s Bank of China on Raising the Rate of Renminbi Deposit Reserve

Yin Fa [2006] No. 383

Shanghai Head Office, all branches, business management departments, central sub-branches in provincial capital cities and Shenzhen
central sub-branch of the People’s Bank of China, all policy banks, state-owned commercial banks and joint stock commercial banks,

With a view to intensifying the liquidity management of banking sector, reasonably control the aggregate amount of monetary credit,
the People’s Bank of China has decided upon the approval of the State Council to raise the rate of Renminbi deposit reserve as of
November 15, 2006. Hereby relevant matters are noticed as follows,

I.

The rate of deposit reserve of 8.5%, which is executed at present by the Agricultural Development Bank of China, state-owned commercial
banks, joint stock commercial banks, urban commercial banks, rural commercial banks, finance corporations, financial leasing companies
as well as relevant foreign-funded financial institutions, shall be changed into 9%.

II.

The rate of deposit reserve of 7.5%, which is executed at present by rural cooperative banks, shall be changed into 8%.

III.

The rate of deposit reserve of 7%, which is executed at present by urban credit cooperatives, shall be changed into 7.5%.

IV.

The rate of deposit reserve of 6%, which is executed at present by rural credit cooperatives, shall be changed into 6.5%.

V.

The rate of deposit reserve of 9%, which is executed at present by financial institutions as required by the differential rate of
deposit reserve system, shall be altered to 9.5%.

All relevant financial institutions shall, in light of the requirements of the present Circular, timely make relevant preparations,
reasonably adjust your structure of assets and liabilities and fulfill the liquidity arrangements. Shanghai Head Office, all branches
and sub-branches of the People’s Bank of China shall faithfully intensify the supervision on the liquidity conditions of the various
legal person depository financial institutions within your respective jurisdictions, and strengthen the management of deposit reserves
strictly according to relevant provisions, so as to guarantee the smooth going of this work. In the case of any major emergency,
a report shall be made to the Headquarters of the People’s Bank of China in time.

Shanghai Head Office, all branches and sub-branches of the People’s Bank of China are requested to forward the present Circular to
the urban commercial banks, rural commercial banks, rural cooperative banks, urban credit cooperatives, rural credit cooperatives,
finance corporations, financial leasehold companies and relevant foreign-funded financial institutions within your respective jurisdictions.

The People’s Bank of China

November 3, 2006