Laws of the People's Republic of China

Circular of the China Securities Regulatory Commission and the People's Bank of China on Consulting and Freezing the Accounts Opened in Financial Institutions of the Parties to Securities Transactions and of the Entities and Individuals Related to the Issues Investigated

Zheng Jian Fa [2005] No. 132 December 30, 2005

With a view to strengthening supervision and control over the securities market and timely investigating and punishing the illegal acts in the securities market, the related financial institutions shall, according to the Securities Law of the People's Republic of China and the related provisions of the State Council, actively cooperate with China Securities Regulatory Commission (hereinafter referred to as the CSRC) and its dispatched institutions in consulting and freezing the accounts opened in financial institutions of the parties to securities transactions and of the entities and individuals related to the issues investigated. The related matters are noticed as follows.

1.

Where it is necessary for the CSRC and its dispatched institutions in exercising their functions according to law, to consult and freeze the fund accounts and deposit accounts of the parties to securities transactions and of the entities and individuals related to the issues investigated, which have been opened in the policy banks, commercial banks, urban and rural credit cooperatives, post savings institutions, financial assets management companies, trust and investment companies, finance companies, financial leasing companies and other financial institutions (hereinafter referred to as the financial institutions), the aforesaid financial institutions shall actively cooperate with them.

2.

The investigators of the CSRC and its dispatched institutions may consult and copy the materials of the fund accounts and deposit accounts opened in the financial institutions, and shall keep confidential of the business secrets of the related entities and individuals they know.

3.

The investigators of the CSRC and its dispatched institutions may, according to law, freeze the funds and deposits of the parties to securities transactions and of the entities and individuals related to the issues investigated.

4.

The investigators of the CSRC and its dispatched institutions shall, when consulting and freezing any fund account and deposit account, show the consultation circular issued by the CSRC or its dispatched institutions, the freezing/defreezing circular approved by the key person-in-charge of the CSRC, as well as their work certificates.

5.

This Circular shall be implemented as of January 1, 2006. And the Circular of the China Securities Regulatory Commission and the People's Bank of China on Consulting and Freezing the Accounts Opened in Financial Institutions of the Parties to Securities Transactions and of the Entities and Individuals Related to the issues Investigated (Zheng Jian Fa [2001] No. 12) shall be concurrently repealed.

Shanghai Headquarters, all branches, business management departments, principal (capital) city central sub-branches of the People's Bank of China shall reprint this Circular and distribute it to the related financial institutions within their respective jurisdictions.

Attachment 1. Circular of the China Securities Regulatory Commission on Consulting the Fund Accounts/Deposit Accounts (Format) (Omitted)

Attachment 2. Circular of the China Securities Regulatory Commission on the Freezing or Defreezing (Format) (Omitted)