Laws of the People's Republic of China

the People's Bank of China

Announcement of the People's Bank of China

No. 14

For the purpose of regulating the information disclosure conduct of asset-backed securities, maintaining the lawful rights and interests of investors, ensuring the smooth operation of pilot asset-backed securities, and promoting the smooth development of inter-bank bond market, the People's Bank of China has formulated the Rules for Information Disclosure of Asset-backed Securities, which are hereby promulgated and shall come into force as of the date of promulgation.

People's Bank of China

June 13, 2005

Rules for Information Disclosure of Asset-backed Securities

Article 1

The present Rules are formulated according to the Administrative Measures for the Credit Assets Securitization (Announcement No. 7 [2005] of the People's Bank of China) and other relevant provisions for the purpose of regulating the information disclosure conduct of asset-backed securities, maintaining the lawful rights and interests of investors, and promoting the development of the bond market. .

Article 2

The information disclosure by an entrusted institution of asset-backed securities (hereinafter referred to as the entrusted institution) shall be conducted through the China Money Network, China Bond Information Network and other ways as prescribed by the People's Bank of China.

Article 3

The entrusted institution shall ensure that the information disclosure is authentic, accurate and complete, and may not have any false record, misleading statement or significant omission.

The institution that initiate the asset-backed securities and the institution that accepts the entrust by the entrusted institution to provide the services for securitization shall timely report the relevant information to the entrusted institution according to agreement on the entrust contract and service contract, and ensure that the information provided is authentic, accurate and complete.

Article 4

The entrusted institution, the institution that provides the services for securitization, the National Inter-bank Funding Center (hereinafter referred to as the Funding Center), the China Government Securities Depository Trust & Clearing Co., Ltd. (hereinafter referred to as the CGSDTC) and any other insider may not divulge the information to be disclosed prior to the information disclosure.

Article 5

The entrusted institution shall disclose the instructions for the issuance, rating report, measures for collection and a name list of the members of the selling group to the investors on the fifth working day prior to the issuance of asset-backed securities.

As to those that issue asset-backed securities by installments, the information disclosure of the first installment shall be conducted according to the relevant prescriptions of Paragraph 1 of this Article; and from the second installment and onwards, the entrusted institution shall only disclose the supplementary instructions for the issuance on the fifth working day prior to the issuance of asset-backed securities of each installment.

Article 6

The entrusted institution shall explain the pay off sequence and investment risk in the instructions for asset-backed securities, and give the investors the following points of attention at an eye-catching place: "The investors that purchase the asset-backed securities shall cautiously read this document and the relevant information disclosure documents and shall carry out an independent investment judgment. The examination and approval of the issuance of securities of this installment by the competent department does not mean any appraisal is made on the investment value of securities of this installment or any judgment is made on the investment risk of securities of this installment."

Article 7

The entrusted institution shall announce the information about the issuance of asset-backed securities on the day or the next working day when the issuance of asset-backed securities of each installment is completed.

Article 8

During the existing period of asset-backed securities, the entrusted institution shall announce a report of the entrusted institution (the formulation requirements are attached at the end) three working days prior to the encashment date of the principal and interest of asset-backed securities of each installment, which shall reflect the situation of the asset pool corresponding to the current installment of asset-backed securities and the information on the encashment of the principal and interest corresponding to the asset-backed securities of each class; the entrusted institution shall announce the report of` the entrusted institution of the previous year as audited by registered accountants prior to April 30 each year.

Article 9

The entrusted institution shall make stipulations with the credit rating institution on the relevant arrangement of follow-up rating of asset-backed securities, and shall disclose the follow-up rating report of the previous year to the investors prior to July 31 each year during the existing period of asset-backed securities.

Article 10

When a general assembly of asset-backed securities holders is to be held, the convener shall announce the time, place, forms of the meeting, issues to be deliberated, discussing procedures, and the voting way of the general assembly of holders of asset-backed securities at leas 30 days in advance, and disclose the resolution of the general assembly within ten days after the conclusion of the general assembly.

Article 11

In case a temporary significant event occurs that may have a substantial effect on the investment value of asset-backed securities, the entrusted institution shall submit the information disclosure materials to the Funding Center and the CGSDTC within three working days upon occurrence of the said event, and report it to the People's Bank of China.

The significant i event as mentioned in this Article include but not limited to:

(1)

Events that will affect the interests of investors have happened or are going to happen, for example, the entrusted institution cannot pay the principal and interest of asset-backed securities on schedule;

(2)

Illegal, irregular or defaulting events that will affect the investment value of asset-backed securities have occurred to the entrusted institution and the securitization service institution;

(3)

The subject of the third-party guarantor for the asset-backed securities is changed;

(4)

The credit rating of the asset-backed securities is changed;

(5)

Other events that need to be announced according to the trust contract;

(6)

Other events as prescribed by the supervision departments like the People's Bank of China and the China Banking Regulatory Commission that need to be announced; and

(7)

Other events as prescribed by laws and administrative regulations that need to be announced.

Article 12

The Funding Center and the CGSDTC shall announce the relevant documents not later than the next working day upon receipt of the information disclosure documents.

Article 13

Except suitable for these Rules, the information disclosure of asset-backed securities shall also be suitable for the Measures for Administration of Bond Trading in the National Inter-bank Bond Market (Order No. 2 [2000] of the People's Bank of China), the Measures for Administration of the Issuance of Financial Bonds in the National Inter-bank Bond Market (Order No.1 [2005] of the People's Bank of China) , the Rules for Examination and Approval of Bond Trading and Circulation in the National Inter-bank Bond Market (Announcement No. 19 [2004] of the People's Bank of China) and other relevant provisions.

Article 14

The power to interpret these Rules shall remain with the People's Bank of China.

Article 15

These Rules shall come into force as of the date of promulgation.

Attachment:Requirements for the Formulation of Reports of the Entrusted Institution

I.

Name and address of the entrusted institution and securitization service institution.

II.

The information on the encashment of principal and interest of securities of each class, which includes the amount of principal at the time of pooling the securities of each class, the amount of principal at the beginning and end of current installment, par interest rate of securities, information on the payment of principal and interest of current installment, the information on the late payment of interests of current installment, the information on the loss of the principal of current installment and the rating conditions, etc..

III.

The explanations for the statistical characters of the asset pool of current installment, which include the balance of loans, amount of loans, weighted average interest rate of loans and weighted averaged remaining period, etc..

IV.

The explanations for the separate listing of detailed items of the principal of the asset pool of current installment (including the normal amount of returns of the principal, the amount of the principal settled in advance, the amount of the principal partly paid in advance, the amount of the principal as disposed and reclaimed and the amount of the principal of repurchased loans) and the explanations for the separate listing of detailed items of interests (including the taxes and expenses).

V.

The information on the advanced payment, delay, default, treatment, treatment and reclaiming as well as losses of the asset pool.

VI.

The explanations for the internal and external credit rating as raised.

VII.

The information on the credit assets of the asset pool that is subject to the legal procedure, and the progress of legal procedure.

VIII.

The information on the total amount of investment incomes or losses from the approved investment according to the entrust contract.

IX.

Any other explanations.