Laws of the People's Republic of China

Bao Jian Fa [2006] No. 126

All insurance regulatory bureaus, insurance companies and insurance asset management companies,

This Commission instituted the Measures on the Administration of Currencies and Conversion Rates for the Statistics of Insurance-related Foreign Currencies in order to intensify the statistical management of foreign exchange businesses of insurance institutions and improve the quality and comparability of the statistical information concerning foreign exchange businesses. They are hereby printed and distributed to you. Please abide hereby.

China Insurance Regulatory Commission

December 22, 2006

Measures for Administering Currency Types and Conversion Rates for the Statistics of Insurance-related Foreign Currencies Chapter I General Rules

Article 1

Under the Interim Provisions on the Management of Insurance Statistics and other related rules and regulations, the present Measures are instituted in order to intensify the statistical management of foreign exchange businesses of insurance institutions and improve the quality and comparability of the statistical information about foreign exchange businesses.

Article 2

China Insurance Regulatory Commission (hereinafter referred to the CIRC) and its dispatched institutions shall carry out a currency-type-based statistical system for the foreign currency businesses of insurance institutions.

Article 3

The present Measures shall be applicable to such insurance institutions as insurance companies and insurance asset management companies.

Article 4

The present Measures shall only be applicable to the information of insurance statistics the insurance institutions reported to the CIRC and its dispatched Institutions

Chapter II Currency Types for Statistics of Foreign Currencies

Article 5

The currencies, the CIRC and its dispatched institutions used in the statistics of foreign exchange businesses of insurance institutions, are as follow, the USD, EUR, YEN, HKD and GBP.

Article 6

An insurance institution shall report to the CIRC and its dispatched institutions the statistical information of foreign currencies as follows:

(1)

The statistical information regarding the original currency of USD, EUR, YEN, HKD and GBP;

(2)

The conversion of the statistical information regarding all foreign currencies into USD; and

(3)

The conversion of the statistical information regarding all foreign currencies into RMB.

Chapter III Foreign Exchange Conversion Rates for the Statistics

Article 7

Reporting the statistical information regarding all businesses related to the conversion of foreign exchanges into USD, an insurance institution shall adopt the USD-based exchange rates for all kinds of currencies announced by the State Administration of Foreign Exchange each month.

Doing statistics for any currency that the State Administration of Foreign Exchange fails to announce the USD-based conversion rate, an insurance institution shall adopt the USD-based exchange rate for this currency reported by a universally acknowledged overseas financial market on the last day by the end of the reporting period.

Article 8

Reporting the statistical information for all businesses related to the conversion of foreign currencies into RMB, an insurance institution shall adopt the central parity of RMB against foreign currencies reported by the People's Bank of China on the last day by the end of the reporting period.

Doing statistics for any foreign currency that the People's Bank of China fails to announce the RMB-based exchange rate, an insurance institution shall convert it into USD, that is to say, it shall first convert it into USD in accordance with the method prescribed in Article 7 , then convert it into RMB in accordance with the central parity of RMB against USD reported by the People's Bank of China on the last day by the end of reporting period.

Article 9

Reporting any financial statistical information regarding the conversion of foreign currencies into RMB, an insurance institution shall make the exchange rate translation in accordance with the Accounting Standards for Enterprises No. 19 - Translation of Foreign Currencies and the related Application Guide, and ensure that the data reported shall be in consistence with the data regarding the financial statements of the company.

Article 10

A conversion rate shall be at least 4-digit decimal figures (round).

Chapter IV Supplementary Provisions

Article 11

The CIRC shall be responsible for the interpretation of the present Measures.

Article 12

The present Measures shall go into effect as of January 1, 2007.