Laws of the People's Republic of China

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on the Relevant Issues Concerning the Supervision of Insurance Foreign Exchange Business

HuiFa [2002] No.85

September 3, 2002

The branches and the foreign exchange adminsitration departments of the State Administration of Foreign Exchange in all provinces, autonomous regions and municipalities directly under the Central Government, branches of Shenzhen, Dalian, Qingdao, Xiamen and Ningbo:

In order to enhance and regulate the foreign exchange supervision of insurance business in China, cooperate in the promulgation and implementation of the "Interim Provisions on the Foreign Exchange Control of Insurance Business", improve the construction of supervising contingent of foreign exchange in the insurance business in foreign exchange bureaus, we hereby give our notice on the relevant issues as follows pursuant to the spirit of the National Meeting on Foreign Exchange Control that all branches should "setup relevant offices and posts for control in the insurance foreign exchange business":

I.

All branches shall, in line with the actual situation of their respective localities on the foreign exchange supervision of insurance business, and according to the requirements of the SAFE, clarify and set up the posts for the supervision of the insurance foreign exchange business, and appoint full-time employees.

II.

The main duties of all branches and sub-branches in the supervision of the insurance foreign exchange business include: daily supervision on the approval of market access and withdrawal of foreign exchange business for the branches of local insurance companies, on the opening and use of foreign exchange accounts of such branches, and on their foreign exchange receipts and expenditures as well as their receipt and payment of foreign exchange; daily supervision on the preliminary examination, etc. on market access of foreign exchange business for insurance companies as legal person institutions and of the branches of foreign-funded insurance companies; supervision on the opening and use of foreign exchange accounts under other insurance items, foreign exchange receipts and expenditures as well as the settlement, selling and payment of foreign exchanges.

III.

All branches shall, before September 15, 2002, submit their respective name lists of the offices to which the supervision posts of the insurance foreign exchange business belong and of the employees involved as well as their telephone numbers in writing to the Current Account Management Department under the State Administration of Foreign Exchange.

Tel: 68402281

Fax: 68402272