Laws of the People's Republic of China

Circular of the Ministry of Finance and the State Administration of Taxation concerning the Relevant Stamp Tax Policies for the Securities Investor Protection Fund

Cai Shui [2006] No. 104

The public finance departments (bureaus) and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government, cities specifically designated in the state plan, and the Finance Bureau of Xinjiang Production and Construction Corps:

With the approval from the State Council, the relevant stamp tax policies for China Securities Investor Protection Fund Corporation Limited (hereinafter referred to as the Protection Fund Corporation) and the Securities Investor Protection Fund under the administration thereof are hereby notified as follows:

1.

As regards the capital accounts newly established by the Protection Fund Corporation, their stamp tax shall be exempted.

2.

The reloan contracts signed between the Protection Fund Corporation and the People's Bank of China and the loan contracts signed with the administrative clearing institutions of securities companies shall be exempted from the stamp tax.

3.

As regards the property transfer documents signed by the Protection Fund Corporation due to accepting the properties of the securities companies under disposition, their stamp tax shall be exempted.

4.

As regards the property insurance contracts signed between the Protection Fund Corporation and the insurance companies concerning the self-owned properties of the Protection Fund and its accepted compensation assets, the stamp tax shall be exempted.

5.

As regards any other party that signed the said taxable contracts or title transfer documents with the Protection Fund Corporation, the stamp tax shall still be levied.

The Ministry of Finance

The State Administration of Taxation

July 27, 2006