Laws of the People's Republic of China

All the state-owned commercial banks, joint stock commercial banks, the Shanghai headquarters of the People's Bank of China and all branches and business management departments of the People's Bank of China, the central sub-branches of the People's Bank of China in all provincial capital cities, and the central sub-branches of the People's Bank of China in all vice-provincial cities,

It is specified in the Circular of the General Office of the State Council on Transferring the Opinions of the Ministry of Construction and Other Departments on Adjusting House Supply Structure and Stabilizing House Price (Guo Ban Fa [2006] No.37, hereinafter referred to as the Circular) that: From June 1, 2006, the proportion of the down payment of the mortgage loans for individual houses shall be no less than 30%. But the provisions on the proportion of the down payment of 20% for houses purchased for living with less than 90 square meters in the dwelling size shall still be followed. For the purpose of implementing the spirit of the Circular, the following Circular on the relative matters is hereby made: I. Each commercial bank shall pay close attention to and seriously implement the decisions and plans of the Central Government concerning strengthening the adjustment and control on real estate market, and formulate implementation measures strictly according to the requirements of the Circular and in combination with the reality to carry out the new housing credit policy. II. When accepting applications for housing loans, each commercial bank shall require the applicants to specify the use for buying houses in light of the facts, and determine the minimum down payment of the housing loans strictly according to the provisions of the Circular, and input information on housing mortgage loans into the basic database for personal credit information of the People's Bank of China in light of relative provisions in time. III. Each branch of the People's Bank of China shall pay close attention to the change of the real estate market, strengthen monitoring and analysis, and reinforce the "Window Guidance", and urge commercial banks to carry out the aforesaid provisions, and report the relative information in time.

The Shanghai headquarters of the People's Bank of China and each branch and business management department of the People's Bank of China shall forward this Circular to each urban commercial bank and urban and rural credit cooperatives within areas under their jurisdiction. People's Bank of China May 31, 2006