Laws of the People's Republic of China

The China Securities Regulatory Commission

Circular of China Securities Regulatory Commission on the Issue Concerning Alteration on Sorts of Nonnegotiable Shares of the Listed Company

ZhengJianShiChangZi [2000] No.14

August 16, 2000

Shanghai and Shenzhen Stock Exchange:

With a view to regulating the registration of securities relating to alteration of the sorts of listed company's shares, and coordinating measures of reforming securities market, hereby notify the related matters concerning alteration of registration which shall be made after state-owned stock equity of listed company's nonnegotiable shares is transferred:

In case state-owned stock of listed company is transferred between state's owned legal persons, the sort of the transferred shares shall still be registered as state-owned shares; in case transferee is not the state's owned legal person (including non-state's holding company) or other investors, the transferred stock equity can be registered as other sorts of nonnegotiable share, if:

1.

the transferor gets approval from the Ministry of Finance by instrument in writing; or

2.

it is executed according to the final judgment of court; or

3.

it is auctioned directed or authorized by the court.

4.

The Ministry of Finance will set special regulations on state-owned shares of listed company after the promulgation of this circular. Then transferors transact according to the regulations.

This circular shall go into effect as of the date of its promulgation.

If the relevant articles of the document ShiChangZhengJianZi No.8 disaccords with this circular, execute according to this circular.