Laws of the People's Republic of China

Criteria on Assignment of the State-owned Land Use Right Through Invitation for Bid, Auction and Hanging Out a Shingle (For Trial Implementation)

(Promulgated by Ministry of Land and Resources of the People's Republic of China on May 31,2006, and shall enter into force as of August 1, 2006)

Catalogue Foreword

1. Scope of Application

2. Quotative Criterion and Documents

3. Basis

4. General Provisions

5. Publication of Assignment Plans and Determine of Land Supply

6. Setting-down and Determine of Assignment Plans

7. Land Price Evaluation and Determine of the Base Price of Assignment

8. Setting-down of Assignment Documents

9. Release of Assignment Declarations

10. Application and Qualification Examination

11.Execution of the Policy of "Invitation for Bid, Auction and Hanging Out a Shingle" - Invitation for Bid

12. Execution of the Policy of "Invitation for Bid, Auction and Hanging Out a Shingle" - Auction

13. Execution of the Policy of "Invitation for Bid, Auction and Hanging Out a Shingle" - Hanging Out a Shingle

14.Conclusion of Assignment Contracts and Publication of Assignment Results

15.Verification and Issuance of the Land Using Permit for Construction and Delivery of Land

16.Coping with of Land Registration

17. Archival Filing of Materials

Annex A: Model Text Formatting for "Preceding Application for Assignment of the State-owned Land Use Right"

Annex B: Text Formatting for "Declaration on Assignment of the State-owned Land Use Right"

Annex C: Model Text Formatting for "Instructions on Assignment of the State-owned Land Use Right"

Annex D Model Text Formatting for "Application for Offering a Bid (Competitive Bid)"

Annex E: Model Text Formatting for "Confirmation of the Qualification for Offering a Bid (Competitive Bid)"

Annex F: Model Text Formatting for "Tender Documents on Auction-based Assignment of the State-owned Land Use Right"

Annex G: Model Text Formatting for "Quotation of Prices of Hanging Out a Shingle Assignment of the State-owned Land Use Right"

Annex H: Model Text Formatting for "Authorization Letter"

Annex I: Model Text Formatting for "Notification of Award"

Annex J: Model Text Formatting for "Sales Confirmation" Foreword

The current Criteria are specified in accordance with Law of Land Administration of the People's Republic of China, Law of the People's Republic of China on the Administration of the Urban Real Estate, Interim Regulations of the People's Republic of China Concerning the Assignment and Transfer of the Right to the Use of State-owned Land in Urban Areas, and Provisions on Assignment of the State-owned Land Use Right Through Invitation for Bid, Auction and Hanging Out a Shingle in order to improve the assignment system of the state-owned land use right, govern the assignment of the state-owned land use right and unify the relevant procedures and criteria, optimize the allocation of land resources and propel the construction of the land market.

Annex B is the text formatting for Assignment Declarations by means of invitation for bid, auction and hanging out a shingle and Annexes A, C, D, E, F, G, H, I and J are the model text formatting for the other documents as requested in the assignment by means of invitation for bid, auction and hanging out a shingle.

The current Criteria shall be specified and put under charge of the Ministry of Land and Resources.

The drafting institutions of the current Criteria are: The Administrative Department of Land Utilization under the Ministry of Land and Resources, the Land Sort-out Center under the Ministry of Land and Resources, the Department of Land and Resources of Liaoning Province, the Department of Land and Resources of Jiangsu Province, the Department of Land and Resources of Fujian Province, the Department of Land and Resources of Shangdong Province, the Department of Land and Resources of Guangdong Province and the Bureau of Land and Resources and Real Estate of Shenzhen Municipality.

The chief drafting personnel of the current Criteria are: Liao Yonglin, Leng Hongzhi, Yue Xiaowu, Lei Aixian, Gao Yong, Xie Liangxiong, Song Yubo, Huang Qicai, Pan Guangming, Tu Gaokun, Wang Lianzhu, Mou Aofeng, Ye Weidong, Zhong Songyi, Lin Lisen, Shen Liang, Chen Meiying, Zhou Xu, Shen Fei and Zhang Fang.

The drafting personnel of the current Criteria (arranged in a sequence in terms of the number of strokes of their surnames) are: Yu Shizhuan, Ma Shang, Wang Wei, Che Changzhi, Deng Yuefang, Ye Yuanpeng, Ye Dong, Ren Zhaohong, Guan Wenrong, Liu Xianqi, Liu Xiangyuan, Liu Ruiping, Zhu Yude, Yan Hongxi, Yan Zheng, Wu Yonggao, Wu Di, Wu Haiyang, Zhang Wanzhong, Zhang Yingqi, Li Yanrong, Li Xiaojuan, Li Xiaobin, Shu Kexin, Yang Yufang, Yang Jiangzheng, Xiao Jianjun, Chen Yongzhen, Chen Guoqing, Lin Junheng, Luo Yanguang, Zhu Jun, Hu Libing, Hu Hongbing, Zhao Chunhua, Hao Jihu, Gao Zhiyun, Xu Jianshe, Qin Shuirong, Qian Yougen, Liang Hong, Huan Wenbo, Han Jianguo, Han Hongwei, Jin Wei, Pan Honggao, Wei Cheng and Wei Lihua.

The Ministry of Land and Resources is responsible for interpreting the current Criterion.

1.

Scope of Application

The current Criteria shall be applied to the assignment of the state-owned land use right by means of invitation for bid, auction or hanging out a shingle within the territory of the People's Republic of China. Where any the state-owned land use right is leased or any other right to the stand-owned land are assigned by mean of invitation for bid, auction or hanging out a shingle, it shall be carried out by referring to the current Criteria. Where the state-owned land use right is assigned by means of invitation for bid, auction or hanging out a shingle or where the land use right of the peasants' collective construction land is transferred by means of invitation for bid, auction or hanging out a shingle in accordance with law, it shall be carried out by referring to the current Criteria.

2.

Quotative Criterion and Documents

The clauses as involved by the following Criteria and documents constitute an entire part of the articles of the current Criteria because of their quotation. All the versions involved herein take effect upon promulgation of the current Criteria. All the parties that apply the current Criteria shall use the latest versions of the following Criteria and documents.

GB / T 18508 ¨C2001 Criteria for Urban Land Price Evaluation

Model Text Formatting for Contract for Assignment of the Right to the Use of Land (Guo Tu Zi Fa [2000] No. 303)

Classification of the National Land (Guo Tu Zi Fa [2001] No. 255)

Controlling Indicators of the Land Used for Industrial Construction Projects (Guo Tu Zi Fa [2004] No. 232)

3.

Basis

(1)

Law of the People's Republic of China on Land Administration

(2)

Law of the People's Republic of China on the Administration of Urban Real Estate

(3)

Law of the People's Republic of China on Urban Planning

(4)

Law of the People's Republic of China on Administrative License

(5)

Law of the People's Republic of China on Contract

(6)

Interim Regulations of the People's Republic of China on Assignment and Transfer of the Right to the Use of State-owned Land in Urban Areas

(7)

The Program for Setting Up and Perfecting the System of Punishing and Guard against Corruption By Paying Equal Attention to Education, Bylaws and Supervision (Zhong Fa [2005] No. 3)

(8)

Notification of the State Council on Strengthening the Administration of State-owned Land Assets (Guo Fa [2001] No. 15)

(9)

Determine of the State Council on Deepening Reform and Intensifying Strictly Land Administration (Guo Fa [2004] No. 28)

(10)

Provisions of the Disciplinary Supervision Department of the Central Discipline Inspection Commission of the CPC and the Ministry of Government Supervision on Treating Those Cadres who Abuse Their Powers to Meddle and Intervene in Such Market Economic Activities as the Bidding and Tendering of Construction Projects, Operational Assignment of the Right to the Use of Land, Real Estate Development and Operation in order to Safeguard Private Interests for Himself or His Relatives (Zhong Ji Fa [2004] No. 3)

(11)

Provisions on the Assignment of the State-owned Land Use Right by Means of Invitation for bid, Auction or Hanging Out a Shingle (Decree No. 11 of the Ministry of Land and Resources)

4.

General Provisions

4.1

Connotation of the Assignment of the State-owned Land Use Right by Means of Invitation for Bid, Auction or Hanging Out a Shingle

The term "assignment of the state-owned land use right by means of invitation for bid" means an act whereby the administrative department of land and resources at the municipal or county level promulgates a declaration on invitation for bid or delivers an invitation in order to invite appointed or non-appointed legal persons, natural persons or any other organizations to join the invitation for bid of the state-owned land use right, on the basis of which a land user may be decided in accordance with the result of bidding.

The term "assignment of the state-owned land use right by means of auction" means an act whereby the administrative department of land and resources at the municipal or county level promulgates a declaration on auction so that the buyers direct open bidding at a designated place and time, on the basis of which a land user may be decided in accordance with the result of bidding.

The term "assignment of the state-owned land use right by means of hanging out a shingle" means an act whereby the administrative department of land and resources at the municipal or county level promulgates a declaration on hanging out a shingle, showing the demands for land assignment within an assigned term, on the shingles in the designated trading place of land and the prices on the shingle shall be renewed upon acceptance of the quotation as provided by buyers, on the basis of which a land user may be decided in accordance with the result of bidding upon expiration of the term for hanging out a shingle or the on-site bidding result.

4.2

Principles in the Assignment of the State-owned Land Use Right by Means of Invitation for bid, Auction or Hanging Out a Shingle

(1)

Being open, fair and impartial; and

(2)

Being Honest and Credible.

4.3

Scope of the Assignment of the State-owned Land Use Right by Means of Invitation for bid, Auction or Hanging Out a Shingle

(1)

In the case of such operational land for commerce, tourism, entertainment and commercial residence as well as the industrial land requiring competition;

(2)

In the case of two or more land users who want land use upon publication of another plan of land supply;

(3)

Where the intention of the use right of any allocated land is changed and if it is clearly showed in the Determine on Assignment of State-owned Land or in accordance with the relevant laws, regulations and administrative provisions that the land use right shall be receded and that an assignment shall be directed by means of invitation for bid, auction or hanging out a shingle;

(4)

In the case of assignment of the use right of any allocated land and if it is clearly showed in the Determine on Assignment of the State-owned Land or in accordance with the relevant laws, regulations and administrative provisions that the land use right shall be receded and that an assignment shall be directed by means of invitation for bid, auction or hanging out a Shingle;

(5)

Where the intention of the use right of any assigned land is changed and if it is clearly showed in the Determine on Assignment of the State-owned Land or in accordance with the relevant laws, regulations and administrative provisions that the land use right shall be receded and that an assignment shall be directed by means of invitation for bid, auction or hanging out a shingle;

(6)

Under any other condition where an assignment shall be directed by means of invitation for bid, auction or hanging out a shingle in accordance with the provisions of relevant laws, regulations and administrative provisions.

4.4

Organization and Execution of the Assignment of the State-owned Land Use Right by Means of Invitation for bid, Auction or Hanging Out a Shingle

4.4.1

Subject of Execution

The assignment of the state-owned land use right by means of invitation for bid, auction or hanging out a shingle shall be organized and carried out by the administrative department of land and resources at the municipal or county level.

4.4.2

Manner of Organization

The administrative department of land and resources at the municipal or county level may, when carrying out any assignment of the state-owned land use right by means of invitation for bid, auction or hanging out a shingle, choose any of the following ways in accordance with the real situation:

(1)

Where the administrative department of land and resources at the municipal or county level deals with it by itself;

(2)

Where the administrative department of land and resources at the municipal or county level appoints or grants its subordinated public institution to specifically undertake; or

(3)

Where the administrative department of land and resources at the municipal or county level takes on by agents with relevant qualification for coping with.

4.4.3

Institution in Charge of Coordination and Decision-making

A collective decision-making system shall put the assignment of the state-owned land use right into practice. The administrative department of land and resources at the municipal or county level may, in accordance with the real situation, set up an institution in charge of the coordination and Decision-making of the state-owned land use right, which shall be responsible for coordinating and solving relevant issues in assignment and decide the relevant matters in a collective manner.

4.4.4

Presider of the Invitation for Bid, Auction or Hanging Out a Shingle of Land

The assignment of the state-owned land use right by means of invitation for bid, auction or hanging out a shingle shall be presided over by a staff who meets the demands for a presider of the invitation for bid, auction or hanging out a shingle of land as assigned by the Ministry of Land Resources and has gained the relevant qualification.

4.4.5

Procedures for Land Assignment by Means of Invitation for Bid, Auction or Hanging Out a Shingle

(1)

Publicizing the plan of assignment and deciding the way of land supply;

(2)

Organizing and deciding the plan of assignment;

(3)

Assessing the land price and deciding the base price of assignment;

(4)

Organizing the assignment documents;

(5)

Publicizing a declaration on assignment;

(6)

Application and examination of qualification;

(7)

Carrying out the invitation for bid, auction or hanging out a shingle;

(8)

Signing the assignment contract and publicizing the result of assignment;

(9)

Verifying and issuing the land using permit for construction and delivering the land;

(10)

Dealing with of the land registration; and

(11)

Placing the relevant materials on archives.

4.5

Local Supplementary Provisions

The local government may make supplementary provisions or detailed rules for the current Criteria, which shall be declared to the administrative department of land and resources at the next higher level for archival filing.

5.

Publication of the Assignment Plan and Determination of Land Supply

5.1

The administrative department of land and resources at the municipal or country level shall promulgate an approved assignment plan of the state-owned land use right to the general society, and the relevant region with mature conditions may, in accordance with the arrangement of land supply, detail the relevant assignment plan of the state-owned land use right to specific location and plots by installments and promulgate the relevant information to the society in a timely manner. The assignment plan of the state-owned land use right as well as the detailed in location and plots shall be promulgated on www. landchina.com at the same time.

5.2

Where the administrative department of land and resources at the municipal or county level promulgates the assignment plan of the state-owned land use right as well as the detailed in location and plots, it shall, simultaneously, make clear the way and means whereby a land user applies for land use, and publicly accepts applications for land use.

5.3

The entity or individual that needs land use (hereinafter referred to as the intended land user) shall, in accordance with the information on the assignment of the state-owned land use right and the detailed information on location and plots that have been promulgated as well as its/his own demands, files an application for land use to the administrative department of land and resources at the municipal or county level.

5.4

Preceding Application for Land Use

In order to comprehend fully of the market demands and arrange the scale and progress of land supply in a scientific and rational way, the relevant region with mature conditions may set up a system of preceding application for land use. The entity or individual that has any intent to use any specific plot that has been involved into an assignment plan based on invitation for bid, auction or hanging out a shingle may file a preceding application for land use and commit a land price it/he may offer. Where the administrative department of land and resources at the municipal or county level deems that any land price and conditions which an entity or individual has provided is acceptable, it may, in accordance with the plan of land assignment as well as the current land market, organize and carry out an invitation for bid, auction or hanging out a shingle for assignment at a proper time and inform the entities or individuals that have filed a preceding application for land use to join it. The entity or individual that has filed a preceding application for land use shall join the tendering or bidding, wherein the price shall not be any lower than the land price it/he has promised.

5.5

In accordance with the application of the intended land user, where the demands in Provisions 4.3 for assignment of the land use right are satisfied, the means of invitation for bid, auction or hanging out a shingle shall be used. Where it cannot be decided whether the specific land meets the demands of Provisions 4.3, it may be proven by the institution responsible for the coordination and decision-making of assignment of the state-owned land use right in a collective manner. For the assignment of any land use right with comprehensive objects or specified demands for society and public welfare construction or comparatively high demands for development and construction and if only a few entities and individuals plan to get the right, the means of invitation for bid, auction or hanging out a shingle may be used. The assignee shall be decided in accordance with the principle of "one with most favorable conditions wins". For the assignment of any other land use right, the means of invitation for bid, auction or hanging out a shingle shall be adopted and an assignee shall be decided in accordance with the principle of "one who provides the highest price wins". Where the state-owned land use right is assigned by means of invitation for bid, the means of an open bid invitation shall be adopted. In the case of any strict restriction on or special demands for land users, the means of bid invitation may be adopted.

6.

Setting-down and Determination of the Assignment Plan

6.1

Setting down the Assignment Plan Based on Invitation for Bid, Auction or Hanging Out a Shingle

The administrative department of land and resources at the municipal and country level shall, in collaboration with such relevant departments as competent department of city planning administration, set down the assignment plan of the state-owned land use right by means of invitation for bid, auction or hanging out a shingle in accordance with the relevant assignment plan and city planning of the state-owned land use right.

The assignment plan of the state-owned land use right by means of invitation for bid, auction or hanging out a shingle shall include: the specific location of the to-be-assigned plot, boundaries, intention of use, area, term, demands for land use, time of land supply, way of land supply and time of construction. For any land for comprehensive use, the specific intention of use, area as well as its term for assignment shall be clarified. Where any real estate of different intentions of use can be divided up and if the final users are different entities and individuals, the term for assignment shall be decided in accordance with the specific intention of land use as involved into the intention of comprehensive land use. Where the many intentions of use are hard to be divided up and the final user is unique, the term for assignment may be regarded as 50 years, which is the maximum term for comprehensive land use.

6.2

Submitting for Approval of the Assignment Plan by Means of Invitation for Bid, Auction or Hanging Out a Shingle

The assignment plan of the state-owned land use right by means of invitation for bid, auction or hanging out a shingle shall be submitted for approval of the people's government at the municipal or county level in accordance with the relevant provisions.

7.

Land Price Evaluation and Determination of the Base Price

7.1

Land Price Evaluation

The administrative department of land and resources at the municipal or county level shall, in accordance with the conditions of the to-be-assigned plot and the situation of the current land market, organize an evaluation on the to-be-assigned plot in order to obtain the normal land market price thereof in accordance with the Criteria for Urban Land Evaluation.

A land price evaluation shall be implemented by the administrative department of land and resources at the municipal or county level or any other subordinated public institution thereof and, when it so requires, an institution with the qualification may be entrusted to implement a price evaluation on the land or real estate.

7.2

Determination of the Base Price

Where any assignment is based on a base price, the administrative department of land and resources at the municipal or county level or the institution responsible for the coordination and decision-making of the assignment of the state-owned land use right shall, in accordance with the result of land price evaluation, industrial policies and the current land market, make a collective decision on deciding the base price and the deposits for invitation for bid and purchase in a comprehensive manner. Where any assignment is directed by invitation for bid, the base price for a tender shall be decided simultaneously. Where any assignment is directed by means of auction or hanging out a shingle, the initial price or starting price shall be decided simultaneously.

Where a base price for a tender or a base price is decided, it shall be remained confidential before the assignment is ended, and shall not be divulged by any entity or individual.

8.

Setting-down of Assignment Documents

The administrative department of land and resources at the municipal or county level shall, in accordance with the plan of assignment by means of invitation for bid, auction or hanging out a shingle approved to set down documents of assignment of the state-owned land use right by using invitation for bid, auction or hanging out a shingle.

8.1

The documents of assignment based on invitation for bid shall cover:

(1)

The declaration on assignment by means of invitation for bid or bid invitation;

(2)

Instructions on the assignment based on invitation for bid;

(3)

Tender document;

(4)

The application for bidding;

(5)

The boundary map of the land;

(6)

Demands of the land planning indicators;

(7)

Notification of award

(8)

Contract of Assignment of the State-owned Land Use Right; and

(9)

Other relevant documents.

8.2

The documents of auction-based assignment shall include:

(1)

The declaration on auction-based assignment;

(2)

Instructions on auction-based assignment;

(3)

The application for bidding;

(4)

The boundary map of the land;

(5)

Demands of the land planning indicators;

(6)

Sales Confirmation;

(7)

Contract of Assignment of the State-owned Land Use Right; and

(8)

Other relevant documents.

8.3

The documents of assignment based on hanging out a shingle shall include:

(1)

The declaration on assignment based on hanging out a shingle;

(2)

Instructions on assignment based on hanging out a shingle;

(3)

The application for bidding;

(4)

Price quotation of assignment based on hanging out a shingle;

(5)

The boundary map of the land;

(6)

Demands of the land planning indicators;

(7)

Sales Confirmation;

(8)

Contract of Assignment of the State-owned Land Use Right; and

(9)

Other relevant documents.

9.

Publication of the Assignment Declaration

9.1

Publication of Declaration

The declaration of the assignment of the state-owned land use right by means of invitation for bid, auction or hanging out a shingle shall be promulgated by the administrative department of land and resources at the municipal or county level. The assignment declaration shall be promulgated on the website: www.landchina.com, and the local tangible land market or may be promulgated through such media as newspaper and TV stations.

The assignment declaration shall be promulgated at least 20 days before any invitation for bid, auction or hanging out a shingle is initiated and the time of initial publication is regarded as the day of commencement.

Where such specific ways as invitation for bid, auction or hanging out a shingle are clarified in the approved assignment plan, a specific "Declaration on the Assignment of the State-owned Land Use Right by Means of Invitation for Bid", "Declaration on the Assignment of the State-owned Land Use Right by Means of Auction" or "Declaration on the Assignment of the State-owned Land Use Right by Using Hanging Out a Shingle" shall be promulgated. Where any of the aforesaid specific means cannot be clarified in the approved assignment plan, an "Declaration on Public Assignment of the state-owned land use right" may be promulgated, wherein the specific means of invitation for bid , auction or hanging out a shingle shall be decided in accordance with the application upon expiration of the term for application.

The assignment declaration may be a declaration on single land or be a joint declaration on several pieces of land.

9.2

Contents of the Declaration

9.2.1

The declaration of assignment based on invitation for bid shall include the following contents:

(1)

The name, address, telephone number, etc. of the assigner; where a subordinated public institution is authorized or designated to direct an invitation for bid or where an agency is entrusted to direct an invitation for bid, the name, address and telephone number of the organs shall be showed as well;

(2)

The location, area, intention of use, development and demands of the planning indicators, term for land use and term for construction of the plot subject to invitation for bid;

(3)

The demands for the qualification of bidders as well as the methods to apply for the bidding qualification;

(4)

The time, address and way to get the Tender Documents;

(5)

The time, address, term for bidding, place and way of bidding;

(6)

Criteria for and method of deciding a bid winner;

(7)

The amount, way and term for payment of bid deposits; and

(8)

Any other matter that requires a declaration.

9.2.2

The declaration of auction-based assignment shall include the following contents:

(1)

The name, address, telephone number, etc. of the assigner; where a subordinated public institution is authorized or designated to direct an invitation for bid or where an agency is entrusted to direct an invitation for bid, the name, address and telephone number of the organs shall be showed as well;

(2)

The location, area, intention of use, development and demands of the planning indicators, term for land use and term for construction of the plot subject to bidding;

(3)

The demands for buyers as well as the ways to apply for the qualification of purchase;

(4)

The time, address or way to obtain the Tender Documents;

(5)

The address, time and bidding method of an auction;

(6)

The amount, way and term for the payment of bid deposits; and

(7)

Any other matter that requires a declaration.

9.2.3

The declaration of assignment based on hanging out a shingle shall include the following contents:

(1)

The name, address, telephone number, etc. of the assigner; where a subordinated public institution is authorized or designated to direct a hanging out a shingle or where an agency is entrusted to direct a hanging out a shingle, the name, address and telephone number of the organs shall be showed as well;

(2)

The location, area, intention of use, development, demands of the planning indicators, term for land use and time of construction of the plot subject to shingled-out;

(3)

Demands for the qualification of buyers and the method of applying for the qualification of purchase;

(4)

The time, address and way to get the documents of hanging out a shingle;

(5)

The place as well as the date of commencement and deadline of the hanging out a shingle;

(6)

The amount, way and time limit to pay the bid deposits; and

(7)

Any other matter that requests a declaration.

9.3

Adjustment of Declaration

In the duration of a declaration, where any announced content is changed, the administrative department of land and resources at the municipal or county level shall promulgate a supplementary declaration through the publication channel of the original declaration in a timely manner. Where any major change that involves the demands for land use and thus effects the land price, and if the publication time of a supplementary declaration is within 20 days as of the time when the relevant invitation for bid, auction or hanging out a shingle is started, the relevant activities shall be delayed correspondingly.

Where a supplementary declaration is promulgated, the administrative department of land and resources at the municipal or county level shall inform the registered applicant in written form.

10.

Application and Examination of Qualification

10.1

Applicants

An applicant for the assignment of the state-owned land use right by means of Invitation for bid, auction or hanging out a shingle may be a legal person, natural person or any other Setting-down within or out of the territory of the People's Republic of China, unless it is otherwise assigned by any law or regulation.

An applicant may file an independent or joint application.

10.2

Application

An applicant shall, within a time limit as assigned by the declaration, pay the deposit for bidding or purchase, and shall, in view of its position under the category of applicants, file an application for purchase or bidding upon the strength of the relevant documents.

(1)

Where a legal person files an application, it shall present the following documents:

(a)

An Application;

(b)

Effective certification documents of the legal person entity;

(c)

Effective identity certification documents of its legal representative;

(d)

Where the applicant entrusts any other party to deal with any matter, an Authorization Letter and the relevant effective identity certification documents of the authorized agent shall be presented;

(e)

Deposit payment certificate;

(f)

Any other document that shall be presented in accordance with the provisions of documents of invitation for bid, auction or hanging out a shingle.

(2)

Where a natural person files an application, the following documents shall be presented:

(a)

An Application;

(b)

Effective identification certification documents of the applicant;

(c)

Where the applicant entrusts any other party to handle any matter, an Authorization Letter and the identity certification documents of the authorized agent shall be presented;

(d)

Deposit payment certificate; and

(e)

The other documents as requested to be presented for invitation for bid, auction or hanging out a shingle.

(3)

Where any other organization files an application, the following documents shall be presented:

(a)

An Application;

(b)

Effective documents or certification proving the legal existence of the organization;

(c)

Effective certification documents showing the identity of the person-in-charge of the organization;

(d)

Where an applicant entrusts any other party to handle it, an Authorization Letter and the identification certification documents of the authorized agent shall be presented;

(e)

Payment certificate of the deposit; and

(f)

Any other document as requested to be presented for invitation for bid, auction or hanging out a shingle.

(4)

Where a foreign applicant files an application, the following documents shall be presented:

(a)

An Application;

(b)

The effective identification certification documents of the foreign legal person, natural person or any other foreign organization;

(c)

Where the applicant entrusts any other party to deal with any matter, an Authorization Letter and the identification certification documents of the authorized agent shall be presented;

(d)

Deposit payment certificate; and

(e)

Any other document as requested to be presented for invitation for bid, auction or hanging out a shingle.

For the aforesaid documents, the application shall be written in Chinese and the other documents may be specified in other languages, for which a relevant Chinese version shall be attached, and the explanations of all the documents shall be based on the Chinese versions.

(5)

For a joint application, the following documents shall be presented:

(a)

An application that has been signed by all the parties concerned to the joint application;

(b)

The effective certification documents of all the parties concerned to the joint application;

(c)

An agreement on joint purchase or bidding. The rights and obligations of the joint parities should be assigned in the agreement, including the proportion of capital contribution of all the joint parties and the clarified assignee when the Contract of the Assignment of the State-owned Land Use Right is concluded;

(d)

Where an applicant entrusts any other party to handle it, an Authorization Letter and the identification certification documents of the authorized agent shall be presented;

(e)

Deposit payment certificate; and

(f)

Any other document as requested to be presented for invitation for bid, auction or hanging out a shingle.

(6)

Where a purchaser wins a land and plans to set up a new company for development and construction, it shall indicate in its application such contents as the structure of capital contribution and time of establishment of its new company. An assigner may, in accordance with the result of assignment made through invitation for bid, auction or hanging out a shingle, first conclude with the bid winner the Contract of Assignment of the State-owned Land Use Right and then, after the bid winner completes the formalities for registration of the new company, conclude with this new company the Alteration Agreement of the Contract of Assignment of the State-owned Land Use Right or may directly conclude with the new company the Contract of Assignment of the State-owned Land Use Right

10.3

Acceptance of the Application and Examination of Qualification

The assignor shall direct an examination on the application as received within the time limit as assigned by the declaration. Upon examination, under any of the following condition, it shall be regarded as an invalid application:

(1)

Where an applicant is disqualified for bidding;

(2)

Where the relevant deposit cannot be paid in accordance with the relevant provisions;

(3)

Where the application documents are deficient or cannot meet the relevant provisions;

(4)

Where any other party is entrusted but the commission documents are deficient or cannot meet the relevant provisions; or

(5)

Under any other condition as assigned by any law or regulation.

Where, upon examination, the relevant demands are satisfied, the qualification of an applicant for bidding or purchase shall be verified and the applicant shall be informed to join the activities of invitation for bid, auction or hanging out a shingle. Where the means of invitation for bid or auction is used, the parties that have gotten the qualification for bidding or purchase shall be no fewer than 3.

10.4

The assigner shall keep confidential of the information of the applicant;

10.5

Where an applicant disbelieves over the documents of invitation for bid, auction or hanging out a shingle, it may consult the assigner in written or oral constitute. The assignor shall facilitate the applicants in their consulting or inquiry of the relevant information about the assigned plot. In accordance with the actual demands, the assignor may organize the applicants to make an on-site inspection on the plot to be assigned.

11.

Execution of Invitation for Bid, Auction or Hanging Out a Shingle - Invitation for Bid

11.1

Invitation for Bid

The administrative department of land and resources at the municipal or county level shall, in accordance with the time and place as assigned in the declaration, organize the invitation for bid. A bidding shall be presided over by a presider of invitation for bid, auction or hanging out a shingle.

Before a bidding is started, the relevant presider shall open the bid box on the spot and seal it up upon examination.

A bidder shall serve its tender documents and other relevant documents on the designated bidding place within the assigned time limit and put its tender documents into the bid box upon registration by the tenderee.

Where it is allowed that the relevant tender documents may be presented by mail, a bidder may post them yet provided that those documents are received before the expiration of bidding may they be regarded as effective. Upon registration by the tenderee, the tender documents shall be put into the bid box before the expiration of bidding.

After a bidder fires a bid, it can no long withdraw its tender documents and shall be responsible for its tender documents as well as relevant written commitments. A bidder may make supplementary statements on its presented tender documents yet shall notify the relevant tenderee in written constitute and serve its supplementary documents on the bidding place before expiration for submission of the tender documents as assigned in the bidding documents.

11.2

Bid Opening

The tenderee shall invite all the bidders in accordance with the schedule and place as assigned in the declaration on assignment based on invitation for bid to open the bid. The bid opening shall be held by the presider of invitation for bid, auction or hanging out a shingle. The bid presider shall invite the bidders or the designated representatives to examine the seal-up status of the bid box and open it in the presence of all parties.

After a bid box is unsealed, the bid presider shall carry out an examination of the tender documents in the bid box in a document-by-document manner. Upon confirmation that everything is right, the work staffs shall unseal it in public, proclaim the names of bidders, bidding prices as well as other major contents of tender documents.

Transcripts shall be made in process of bid opening.

11.3

Bid Evaluation

Where a bid winner is decided in accordance with the principle that "one who provides the highest price wins", it is not so requested that a bid evaluation group shall be set up. Where a bid winner is decided in accordance with the principle that "one who has the best comprehensive conditions wins", the relevant tenderee shall set up a bid evaluation group.

11.3.1

The bid evaluation group shall be composed of the assigner and the relevant experts in odd number of more than 5. The relevant regions with mature conditions may set up a database of experts in land evaluation, wherefrom by choosing experts, a bid evaluation group is set up before each bidding.

11.3.2

The tenderee shall adopt the necessary measures in order to safeguard that a bid evaluation is implemented under strict confidentiality.

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11.3.3

The bid evaluation group may request the relevant bidders to make necessary clarification or statement on any content that is not so clarified in the tender documents, yet the clarification or statement shall not exceed the range of what the tender documents give or change the substantial contents thereof.

11.3.4

The bid evaluation group shall direct effective examination on the tender documents. Under any of the following conditions, it shall be regarded as an ineffective bid document:

(1)

Where any bid document is not sealed up;

(2)

Where any bid document bears neither any seal of the bidder nor any signature of the legal representative thereof;

(3)

Where the tender documents are incomplete, or the contents thereof are incomplete or cannot satisfy the relevant provisions;

(4)

Where the bidder has two or more quotations for the same subject matter;

(5)

Where, in the case of an entrusted bidding, the entrustment documents are incomplete or cannot satisfy the provisions; and

(6)

Under any condition where the bid evaluation group deems the tender documents are invalid.

11.3.5

Demands for Bid Evaluation

The bid evaluation group shall, in accordance with the Criteria for and methods of bid evaluation as decided in the bidding documents, score the tender documents in a comprehensive manner and decide the candidate for bid winner in accordance with the results of comprehensive scoring.

The bid evaluation group shall, in accordance with the results of bid evaluation, determine the sequence of the candidates for bid winner in accordance with the results of comprehensive scoring, except for anyone's providing a price lower than the base price or base price of bidding. Where the comprehensive scores of two or more applicants are the same, they shall be ranked in accordance with the quotations. In the event of the same quotation, the applicants of the same comprehensive score shall be ranked through an on-site bidding. Where the bidding prices of all the bidders are lower than the base price of bidding or their bidding provides cannot meet the demands for the base price of bidding, the bidding shall be terminated.

11.4

Bid Selection

The tenderee may decide a bid winner from among the candidates for bid winner as recommended by the bid evaluation group or may authorize the bid evaluation group to directly decide the bid winner.

Where the bid winner is decided in accordance with the principle that "one who provides the highest price wins", the relevant presider shall, in accordance with the results of bidding, directly notify the bid winner whose quotation is the highest and not any lower than the base price of bidding. Where two or more applicants have the same quotation, which is the highest simultaneously, the relevant applicants with the aforesaid quotation may offer another quotation within the assigned time limit or the means of an on-site bidding may be adopted to determine the bid winner.

11.5

Sending of the Notification of Award

Where the bid winner is decided, the relevant tenderee shall send a notification of award and notify the other bidders of the results of bidding.

The notification of award shall include the names of the tenderee and the bid winner, the subject matter of assignment, the time, place and price of the deal as well as the time and place for the conclusion of the Contract of Assignment of the State-owned Land Use Right by both parties.

The notification of award shall have a legal force on the tenderee and the bid winner, thus, where the tenderee changes the results of bidding, or the bid winner doesn't conclude the Contract of Assignment of the State-owned Land Use Right in accordance with the relevant stipulations or give up the land that it has won, it shall be governed by legal liabilities.

12.

Execution of Invitation for Bid, Auction and Hanging Out a Shingle - Auction

12.1

The administrative department of land and resources at the municipal or county level shall, in accordance with the time and place as assigned in the Declaration, carry out the auction. The auction shall be held by a presider of the invitation for bid, auction or hanging out a shingle.

12.2

The auction shall be directed in accordance with the following procedures:

(1)

The auction presider proclaims the commencement of the auction;

(2)

The presider proclaims the attendance of competitive buyers; where any base price is set, the assignor shall deliver to the presider its sealed-up base price of auction on the spot and the latter shall unseal it on the spot.

(3)

The presider proclaims the location, area, intention of use, term for use, demands of the planning indicators and time of construction of the plot subject to auction;

(4)

The presider proclaims the benchmark price, criteria on price rise and margin of price rise and clearly clarifies whether there is any base price. In the process of auction, the presider may, in accordance with the spot situation, adjust the margin of price rise;

(5)

The auction presider proclaims the starting price as well as the commencement of the auction;

(6)

The competitive buyers put up their shingles to offer prices or quotations;

(7)

The presider goes on the bidding upon confirming the prices or quotations as provided by buyers or;

(8)

Where the presider of the auction proclaims the same price or quotation for continuous 3 times whereas nobody else makes a response thereto or provides any higher price and if the announced price is not lower than the base price, a deal is done when the auction presider let fall the pestle. Thereafter, the presider proclaims the one who has provided the highest price as an auction winner. The results of the auction have a legal binding force on the auctioneer, buyer and assignor. Where the highest price or quotation is lower than the base price, the auction presider shall proclaim the conclusion of the auction.

12.3

Signing the Sales Confirmation

After the winner is decided, the auctioneer and the buyer shall conclude the Sales Confirmation on the spot. Where any auctioneer or buyer cannot conclude the sales confirmation on the spot, it shall be governed by the relevant legal liabilities. The refusal of a buyer to conclude the sales confirmation cannot resist the legal force of the results of auction.

Such contents as the name of the auctioneer and the buyer, subject matter of assignment, time, place and price of the deal as well as the time and place for both parties concerned to conclude the Contract of Assignment of the State-owned Land Use Right shall be showed in the sales confirmation

The sales confirmation has a legal binding force on the auctioneer and the buyer. Where an auctioneer changes the results of the auction or where a buyer cannot conclude the Contract of Assignment of the State-owned Land Use Right and gives up the plot it has won, they shall be governed by legal liabilities.

Transcripts shall be made in the process of the auction.

13.

Execution of Invitation for Bid, Auction and Hanging Out a Shingle - Hanging Out a Shingle

The administrative department of land and resources at the municipal or county level shall, in accordance with the time and place as assigned in the declaration on assignment, hang out a shingle. A shingle hung out shall be held by a presider of the invitation for bid, auction or hanging out a shingle of land.

13.1

Publication of the Shingled-out Information

As of the first day of hanging out a shingle as assigned in the declaration on hanging out a shingle, a shingle placer shall announce such contents as the location, area, term for use, demands of the planning indicators, starting price, the criteria for price rise as well as the margin of price rise of the shingled land on the trading place of land as assigned in the declaration on hanging out a shingle. The period of hanging out a shingle shall be over 10 workdays.

13.2

Quotation of Buyers

The buyer who meets the relevant demands shall fill in the price quotation constitute. The regions with mature conditions may use a computer-based quotation system.

Where the buyer is under any of the following conditions, it shall be regarded as an invalid price quotation:

(1)

Where the constitute of price quotation cannot be received within the term for hanging out a shingle;

(2)

Where the buyer cannot fill in the price quotation constitute in accordance with the relevant provisions;

(3)

Where the buyer filling in the price quotation constitute cannot abide by the application materials of the buyer;

(4)

Where any price quotation cannot abide by the criteria for price quotation; or

(5)

Where any price quotation cannot meet the demands of any case showed in the documents of hanging out a shingle.

13.3

Confirmation of Price Quotation

Where the presider of hanging out a shingle confirms a price quotation, it shall renew again the shingled price and go on to take new prices. So as to two or more buyers offer the same price quotation, the first party that presents the price shall be regarded as the price offering party.

13.4

Conclusion of Hanging Out a Shingle

The conclusion of hanging out a shingle shall be decided by the presider of hanging out a shingle. Where any base price is set, the relevant assignor shall pass the presider its base shingled-price as sealed before the conclusion of hanging out a shingle and the latter shall unseal the confidential documents on spot. Upon conclusion of hanging out a shingle as assigned in the declaration, the buyers shall be presented on the spot of hanging out a shingle and the presider shall announce the highest price quotation as well as the offering party thereof and further inquire whether the bidding shall be continued.

13.4.1

Where the presider of hanging out a shingle provides a highest price for continuous 3 times, and if no buyer indicates any intent to keep on the bidding, the presider shall announce the conclusion of hanging out a shingle and determine the results of hanging out a shingle in accordance with the relevant provisions:

(1)

Where the highest shingled price is not any lower than the base price, the presider shall announce the deal of assignment based on hanging out a shingle and the offering party that has provided the highest shingled price as the winner;

(2)

Where the highest shingled price is lower than the base price, the presider shall announce that the assignment cannot be done through hanging out a shingle.

13.4.2

Where a buyer indicates its intent to continue the bidding and if two or more buyers request for price quotation upon conclusion of hanging out a shingle, the presider shall proclaim that the assignment based on hanging out a shingle shall be transferred to the on-site bidding as well as proclaim the time and place of the on-site bidding in order to determine the winner.

13.5

On-site Bidding

The on-site bidding shall be held by a presider of the invitation for bid, auction or hanging out a shingle of land and the relevant buyers that have gotten the qualification for biding for the land through hanging out a shingle may join the on-site bidding. The on-site bidding shall be held in accordance with the following procedures:

(1)

The presider proclaims the benchmark price, criteria for bidding and margin of price rise and announce the start of the on-site bidding. The starting price of the on-site bidding shall be the sum of the highest price quotation upon conclusion of hanging out a shingle plus a margin of price rise.

(2)

Buyers that attend the on-site bidding shall offer price or quotation in accordance with the criteria for bidding;

(3)

The presider goes on the bidding upon confirmation of the price or quotation provided by buyers and;

(4)

Where the presider proclaims, for continuous 3 times, the same price or quotation yet nobody makes any response or quotation, and if the price is not lower than the base price, the presider let fall the pestle to make the deal in the on-site bidding and proclaims the offering party of the highest price or quotation to be the buyer. The results of the deal shall have a legal binding force on the buyer and the assignor. Where the highest price or quotation is lower than the base price, the presider shall announce the conclusion of the on-site bidding.

Where no party presents the on-site bidding or no party provides any price or quotation, the party that provides the highest price upon conclusion of hanging out a shingle shall be the buyer, unless any provided price is lower than the base price of the assignment based on the shingle.

13.6

Signing the Sales Confirmation

After the buyer is decided, the shingle placer shall sign with the buyer the sales confirmation. Where any shingle placer or buyer cannot sign the sales confirmation in accordance with the relevant provisions, it shall be governed by legal liabilities. The refusal of the buyer to conclude the sales confirmation cannot resist the legal force of the results of hanging out a shingle .

The sales confirmation shall involve the names of the shingle placer and the buyer, subject matter of assignment, time, place and price of assignment, as well as the time and place for both parties to sign the Contract of Assignment of the State-owned Land Use Right.

The sales confirmation shall have a legal binding force on the shingle placer and the buyer. Where the shingle placer changes the results of hanging out a shingle, or where the buyer cannot sign the Contract of Assignment of the State-owned Land Use Right, it shall be governed by the relevant legal liabilities.

Transcripts shall be made in the process of hanging out a shingle.

14.

Conclusion of the Assignment Contract and Publication of the Result of Assignment

14.1

Signing the Contract of Assignment of the State-owned Land Use Right

After an activity of invitation for bid, auction or hanging out a shingle is concluded, the bid winner or buyer shall, in accordance with the Notification of Award or the Sales Confirmation, sign the Contract of Assignment of the State-owned Land Use Right with the assignor.

14.2

The deposit for bidding or purchase paid by the bid winner or buyer shall be regarded as the earnest money for the assigned land upon winning the bidding. The deposit presented by the other bidders or buyers shall be refunded by the assignor within 5 workdays as of the conclusion of invitation for bid, auction or hanging out a shingle, with no interest gathered.

14.3

Publication of the Result of Assignment

Within 10 workdays as of the day when the invitation for bid, auction or hanging out a shingle is concluded, the assignor shall promulgate to the general society the result of the invitation for bid, auction or hanging out a shingle on the website: www. landchina.com, as well as the tangible land market.

The result of assignment that shall been promulgated should cover such contents as the location of land, area, intention of use, development, grade of land, capacity, term for assignment, way of land supply, assignee, trading price and trading time.

The assignor shall promulgate the result of assignment and charge no relevant fee from the assignee.

15.

Verification and Issuance of the Land Using Permit for Construction as well as Land Delivery

The administrative department of land and resources at the municipal or county level shall verify and issue the Land Using Permit for Construction to the assignee, and shall deliver the land to the assignee in accordance with the time and conditions as decided in the Contract of Assignment of the State-owned Land Use Right as well as the Land Using Permit for Construction.

16.

Going-through of Land Registration

The assignee shall, in accordance with the stipulations of the Contract of Assignment of the State-owned Land Use Right, pay off the fees for the assignment of the state-owned land use right, apply for land registration in accordance with law, gather the State-owned Land Use Certificate and get the state-owned land use right.

17.

Archival Filing of the Materials

After all the formalities for assignment are concluded, the administrative department of land and resources at the municipal or county level shall select the relevant materials and documents in such links as the application, examination and approval, invitation for bid, auction and hanging out a shingle as well as signing contract in the process of land assignment, and put them on archives in accordance with the relevant provisions. The materials of land assignment ought to be put on archives shall include:

(1)

Application materials of the applicant;

(2)

Land conditions and the relevant materials;

(3)

Materials of land evaluation;

(4)

Base price of land and collective determine-making records;

(5)

The plan of land assignment by means of invitation for bid, auction or hanging out a shingle;

(6)

The reply to the land assignment plan;

(7)

Documents of assignment by means of invitation for bid, auction or hanging out a shingle;

(8)

Transcripts in the execution of invitation for bid, auction or hanging out a shingle; and

(9)

Notification of Award or Sales Confirmation.

(10)

The Contract of Assignment of the State-owned Land Use Right as well as the publication materials of the result of assignment.