Laws of the People's Republic of China

Letter of China Banking Regulatory Commission concerning Approval for Xiamen Branch of Chiyu Banking Corporation Limited to Deal in RMB Business Services for Non-foreign-funded Enterprises

Chiyu Banking Corporation Limited,

The letter which was signed by Wu Wengong, general manager of your bank, and was addressed to this Commission has been received.

The following reply is hereby given to you according to the Regulation of the People's Republic of China on the Administration of Foreign-funded Financial Institutions (Order No. 340 of the State Council, hereinafter referred to as the Regulation) and the Detailed Rules for the Implementation of the Regulation of the People's Republic of China on the Administration of Foreign-funded Financial Institutions (Order No. 4,2004 of China Banking Regulatory Commission, hereinafter referred to as the Detailed Rules),:

Within the scope prescribed in Article 17 of the Regulation, your Xiamen Branch is hereby approved to deal in RMB business services for foreign-funded enterprises, China-based foreign institutions, mainland-based representative offices of Hong Kong, Macao and Taiwan, and for aliens, the compatriots from Hong Kong, Macao and Taiwan, and non-foreign-funded enterprises.

Your bank is hereby approved to make additional allocations of a sum of RMB working capital in convertible currencies, equivalent to 100 million Yuan, to your Xiamen Branch. After increasing the capital, the working capital of this Branch comes up to 300 million Yuan, of which the foreign exchange working capital in convertible currencies comes up to 200 million Yuan and the RMB working capital comes up to 100 million Yuan.

After increasing capital and performing statutory procedure in accordance with the Regulation and the Detailed Rules, your Xiamen Branch may, under Article 35 of the Detailed Rules, deal in providing foreign exchange business services for various clients under the following scope: providing RMB business services for foreign-funded enterprises, China-based foreign institutions, and mainland-based representative offices of Hong Kong, Macao and Taiwan, and for aliens, the compatriots from Hong Kong, Macao and Taiwan, and non-foreign-funded enterprises, pooling public deposits, granting short-term, medium-term and long-term loans, transacting the acceptance and discount of negotiable instruments, buying and selling government bonds and financial bonds, buying and selling non-stock negotiable instruments denominated in a foreign currency, providing services on letter of credit and guaranties, transacting domestic and overseas settlements, buying and selling foreign currencies for itself or on a commissioned basis, converting foreign currencies, inter-bank funding, bank card business, safety-deposit box, providing credit-standing investigation and consultation services, as well as other business activities upon the approval of China Banking Regulatory Commission.

China Banking Regulatory Commission

January 6, 2006