Laws of the People's Republic of China

Official Reply of China Banking Regulatory Commission concerning Approving the Establishment of New York Branch of China Merchants Bank

China Merchants Bank,

The Request for Instructions on the Establishment of New York Branch of China Merchants Bank (Zhao Yin Fa [2005] No. 416) has been received. Our reply is as follows:

1.

The establishment of New York Branch of your bank is approved.

2.

Please submit an application to the local financial regulatory authority according to the related financial regulations of the United States of America, and report the progress to China Banking Regulatory Commission in time.

China Banking Regulatory Commission

February 22, 2006