Laws of the People's Republic of China

    Article 1  With a view to strengthening registration management of state
owned property rights, improving the basic management system of state owned
property and protecting the state owned property from loss, the present
Procedures are hereby formulated.

    Article 2  The registration of state owned property rights in enterprises
(hereinafter referred to as registration of property rights) mentioned in the
present Procedures refers to the action conducted by the state owned property
management authorities on behalf of the government in respect to registration
of the state quo of property rights including assets, liabilities, rights and
interests of owners in different enterprises who hold state owned properties
and identification of the ownership of the properties in question according to
law.

    Article 3  State owned enterprises, state owned companies with sole state
investment, units holding state equity and enterprises holding state property
in other forms (hereinafter referred to as enterprises) shall undergo
registration of properties according to the present Procedures.

    Article 4  Where uncertainty occurs as to the ownership of enterprise
properties or dispute arises concerning property rights, deferred undergoing
of property rights registration may be applied for.

    Enterprises approved to defer undergoing registration of property rights
shall before the prescribed deadline make clear identifications as to the
property rights in question, settle the dispute over property rights and in
due time undergo registration of property rights.

    Article 5  State owned property management authorities of the people's
governments at and above the county level shall handle the registration of
property rights based on the ownership thereof.

    The state owned property management authorities may, due to needs of work,
entrust relevant governmental departments or agencies with the handling of
property rights registration based on ownership thereof.

    Article 6  Registration of property rights is broken down into
registration of ownership of property rights, property rights changes and
cancellation of property rights.

    Article 7  Enterprises shall undergo registration of ownership of property
rights according to the present Procedures.

    The main contents under the subject of registration of property rights
ownership are:

    (1) the names, residents, amount of capital and legal representatives of
the investors;

    (2) the name, location and legal representative of the enterprise;

    (3) assets, liabilities and rights and interests of owners of the
enterprise;

    (4) actually received capitals and state owned capitals of the enterprises;

    (5) state of investments of the enterprises;

    (6) other items as are prescribed by the state owned property management
authorities of the State Council.

    The Forms of Registration of State Owned Property Rights examined and
issued to enterprises by the state owned property management authorities are
documents in testimony of the capital and credit of enterprises.

    Article 8  Enterprises in case of occurrence of any of the following
changes shall within 30 days after the change undergo registration of property
rights changes:

    (1) change of the name, location or legal representative of the enterprise;

    (2) change of proportion of the state owned capital to actually received
capitals of the enterprise;

    (3) disintegration, merging or change in business operation form of the
enterprise;

    (4) other changes as are defined by the state owned property management
authorities of the State Council.

    Article 9  Enterprises in case of any of the following occurrences shall
within 30 days from the date of occurrence undergo registration of property
rights cancellation:

    (1) dissolving of the enterprise, cancellation of the enterprise according
to law or the enterprise proclaiming bankruptcy according to law;

    (2) the enterprise transferring all its property rights or the enterprise
itself being transferred;

    (3) other occurrences as are prescribed by the state owned property
management authorities of the State Council.

    Article 10  Enterprises undergoing registration of property rights shall
according to prescriptions fill in and submit the Form of Registration of
State Owned Property Rights and relevant documents, vouchers and report forms
etc. Where the contents filled in or the submitted documents, vouchers or
report forms do not accord with prescriptions, the state owned property
management authorities shall have the power to require correction from
enterprises.

    Article 11  The property rights registration shall subject to an annual
inspection system.

    Enterprises shall within 90 days after the end of each year undergo
property rights registration for annual inspection, submit to the state owned
property management authorities financial report and annual report on
operation of state owned properties which shall cover the main points as the
following:

    (1) state of realized injection of capitals from investors;

    (2) structural changes of the state owned assets of the enterprise
including external investment of the enterprise;

    (3) increase, decrease and other changes of the state owned assets;

    (4) other items as are prescribed by the state owned property management
authorities of the State Council.

    Article 12  The Form of Registration of State Owned Property Rights shall
be solely designed by the state owned property management authorities of the
State Council.

    Any unit or individual may not forge, alter, sell or lend the Form of
Registration of State Owned Property Rights.

    Where the Forms of Registration of State Owned Property Rights are lost or
destroyed, second supply of the Form shall be applied for according to
prescriptions.

    Article 13  The state owned property management authorities shall
establish and perfect the property rights registration filing system and
analyse and report on the state quo of state owned properties at regular
intervals.

    Article 14  If an enterprise has committed any of the following actions in
violation of the present Procedures, the state owned property management
authorities shall order a correction thereof, circulate a notice of criticism,
or further impose a fine of less than 100,000 yuan and propose that relevant
governmental departments impose a disciplinary sanction upon the enterprise
leaders or those persons directly responsible for the actions:

    (1) refusal to undergo registration of property rights within the
prescribed time;

    (2) withholding the truth and failing to undergo property rights
registration as things really are;

    (3) refusal to undergo property rights registration for annual inspection
according to regulations;

    (4) forging, altering, selling or lending the Forms of Registration of
State Owned Property Rights.

    Article 15  If working staff of the state owned property management
authorities have practised negligence of office, favoritism, abuse of power or
have obtained personal gains, the criminal responsibilities shall be
investigated into where a crime is constituted and an disciplinary sanction
shall be imposed where a crime is not constituted.

    Article 16  Procedures governing registration of state owned property
rights in enterprises of the army shall be formulated with reference to the
present Procedures by the General Logistics Department of the People's
Liberation Army in consultation with the state owned property management
authorities of the State Council.

    Article 17  The present Procedures shall come into effect as of the date
of promulgation. The Trial Procedures Regarding Registration and Management of
State Owned Property jointly promulgated by the State Administration of State
Property, the Ministry of Finance and the State Administration for Industry
and Commerce on May 11, 1992 shall be from then on annulled.