Laws of the People's Republic of China

Circular of China Securities Regulatory Commission on the Relevant Issues Concerning the Information Disclosure by Securities Companies

Zheng Jian Ji Gou Zi [2006] No. 71 July 25, 2006

All the securities companies,

For the purpose of protecting the legitimate rights and interests of investors, bringing into play the function of social surveillance and improving the transparency of the securities market, in accordance with the provisions of the Securities Law and other relevant administrative regulations, the matters relating to the information disclosure by securities companies are hereby notified as follows:

1.

Information disclosure as mentioned in this Circular refers to an activity of a securities company publicizing the information that is the data about its parent company, business branches and sub-branches, products and personnel, risk indication information as well as any other information beneficial to the inquiry and surveillance by investors by means of its website, investors' park in its business places and the public information platforms of China Securities Regulatory Commission (hereinafter referred to as the CSRC), Shanghai Stock Exchange, Shenzhen Stock Exchange and China Securities Depository and Clearing Corporation or other institutions.

2.

A securities company shall publicize its basic information, business branches and sub-branches, licensed business scope and products as well as senior managers as required in this Circular. The information disclosure of a securities company that has entered into the procedures for risk disposition shall be put in charge of the institution that executes the functions and duties of legal person for the securities company subject to disposition and shall contains relevant information of the securities company under disposition as well as its business departments and service departments. The information disclosure of any business department of trust securities company that fails to fulfill the separation of trust and securities shall be carried out with reference to relevant requirements of this Circular. Any securities company that has entered into the procedures for risk disposition or been under way of restructuring or rectification or any business department of securities under a trust company that fails to fulfill the separation of trust and securities shall pay attention to the preparation of information disclosure presenting accordance with this Circular, wherein the time for implementation of disclosure shall be separately notified.

3.

In accordance with the requirements of this Circular, a securities company shall declare the relevant information online by means of network platform as provided by the CSRC (clients of China Telecom on channel.sac.net.cn and clients of China Netcom on cx.sac.net.cn), and shall check the information in order to ensure its truthfulness, accuracy and integrity.

4.

The information that has first been declared by a securities company shall be uniformly disclosed by the CSRC through its network after verification of all the securities regulatory bodies. In case of any changes in the publicized information, the relevant securities company shall conduct online alteration and update through the website of the CSRC and shall disclose the information upon inspection and approval of the CSRC. Any key information concerning new products, branches and sub-branches or business scope alterations shall be disclosed subject to the confirmation of relevant securities regulatory bodies.

5.

A securities company shall make sufficient risk indication and necessary information disclosure on its website and business places simultaneously. The information as publicized on its website shall meet all the requirements in Article 2 of this Circular.

A special information disclosure board shall be established by a securities company within the investors' parks in such business places as securities departments and service departments to publicize the specific web address of information disclosure and to disclose the name, account number and opening bank of the exclusive deposit account of fund for client trade settlement, the numbers of the trading seats that have been reported for filing, as well as the telephone number for complaint and service and personnel qualified for securities business.

A securities company that promotes the integrated financing or other products in relevant business places shall publicize the name, number and opening bank of its exclusive deposit account, etc.

6.

A securities company shall assign a special senior staff to take charge of information disclosure and assign a special department and personnel to dispose the disclosure and continual update of information as well.

7.

A securities company shall be responsible for the truthfulness, accuracy and integration of the information it has declared for disclosure. If there is any false, misleading statement or major omission in the disclosed information that has been declared by a securities company, it shall be disposed strictly under the Securities Law as well as relevant laws and regulations, and the entity and persons concerned shall be investigated for the liabilities.

8.

This Circular shall enter into force as of the day of promulgation.