Laws of the People's Republic of China

Circular of the Ministry of Finance, People's Bank of China, and China Securities Regulatory Commission concerning the Confirmation of the Qualifications of the Members of the Book-entry T-Bond Underwriting Syndicates

Cai Ku [2006] No. 84 September 29, 2006

The National Council for Social Security Funds, China Postal Savings and Remittance Bureau, each commercial bank, securities company and insurance company:

In order to regulate the issuance of T-bonds and promote the sound development of the T-bond market, the task of forming book-entry T-bond underwriting syndicates has been completed in line with the Measures for the Examination and Approval of the Qualifications of the Members of the T-Bond Underwriting Syndicates ( No. 39 of the Ministry of Finance, People's Bank of China and China Securities Regulatory Commission) and the Circular of the Ministry of Finance, People's Bank of China and China Securities Regulatory Commission on Establishing the Book-entry T-Bond Underwriting Syndicates (Cai Ku [2006] No. 61).

By August 11, 74 institutions in total have submitted application materials, all of which satisfied the basic application requirements and been accepted. The book-entry T-bond underwriting syndicate should be established in line with the principle of openness, fairness and impartiality and the survival of the fittest based on keeping overall stability of the members. There may not be more than 60 members, of which the Class A members may not more than 20. Upon the consultation of the China Banking Regulatory Commission and China Insurance Regulatory Commission, jointly with the Peoples' Bank of China and China Securities Regulatory Commission, the Ministry of Finance determined the following establishment plan:

1.

You may not take the applicant institutions into consideration which were members of the book-entry T-bond syndicate for the year of 2004 and of which the underwriting volume of T-bond for the whole year of 2005 is less than 1 billion Yuan.. According to this requirement, 5 members of the original book-entry T-bond underwriting syndicate are not members of this underwriting syndicate any more.

2.

New applicant institutions, of which the underwriting volume of T-bonds for the whole year of 2005 (in accordance with the figure verified by the Ministry of Finance) is more than 4 billion Yuan, should be included. According to this requirement, 6 new applicant institutions are accepted as members of this underwriting syndicate.

3.

In case of the new applicant foreign-funded banks, because the Regulation on the Administration of Foreign-funded Financial Institutions is being amended, no new foreign-funded bank is accepted as the member of this T-bond underwriting syndicate.

4.

The examination of the qualifications of Class A members is on the condition that the member should rank among the top 25 in the comprehensive evaluation of the book-entry bond business in 2005. Other applicants applying for the qualifications of Class A members are regarded as applicants for qualifications of Class B members.

It is hereby announced that, according to the aforesaid establishment plan, the Name List of the Members of the Book-entry T-Bond Underwriting Syndicate (attached) was determined, and it is hereby promulgated.

Appendix: Name List of Members of the Book-entry T-Bond Underwriting Syndicate

The Ministry of Finance

The People's Bank of China

The China Securities Regulatory Commission

September 29, 2006

Appendix: 

Name List of Members of the Book-entry T-Bond Underwriting Syndicate