Order of the President of the People’s Republic of China No.58

The Decision of the Standing Committee of the National People’s Congress on Amending the Law of the People’s Republic of China on Regulation of and Supervision over the Banking Industry, adopted at the 24th Meeting of the Standing Committee of the Tenth National People’s Congress of the People’s Republic of the China on October 31, 2006, is hereby promulgated and shall go into effect as of January 1, 2007.

Hu Jintao

President of the People’s Republic of China

October 31, 2006

Decision of the Standing Committee of the National People’s Congress on Amending the Law of the People’s Republic of China on Regulation of and Supervision over the Banking Industry

(Adopted at the 24th Meeting of the Standing Committee of the Tenth National People’s Congress on October 31, 2006)

At its 24th Meeting, the Standing Committee of the Tenth National People’s Congress decided to make the following amendments to the Law of the People’s Republic of China on Regulation of and Supervision over the Banking Industry:

1. One article is added as Article 42, which reads: when the banking regulatory authority conducts inspection of the financial institutions of the banking industry according to law, it may, upon approval by the leading person of the banking regulatory authority at or above the level of the city divided into districts, take the following measures against the units and individuals that are involved in suspected violations of law:

(1) to inquire the units or individuals concerned, requesting them to make explanations about the relevant matters;

(2) to check or duplicate documents and materials related to financial and accounting statements and property registration; and

(3) in the first place, to register and preserve the documents and materials that are likely to be removed, concealed, damaged or destroyed, or forged.

When the banking regulatory authority takes the measures specified in the preceding paragraph, it shall send not less than two investigators, who shall produce their legal papers and the written notification of investigation. Where there are less than two investigators, or the investigators fail to produce their legal papers and the written notification of investigation, the units and individuals in question shall have the right to refuse to accept the investigation. When the measures are adopted in accordance with law, the units and individuals concerned shall cooperate with the investigators, give truthful explanations about the relevant matters and provide related documents and materials, and they shall not refuse to cooperate with the investigators, obstruct investigation, or conceal facts.”

2. Article 42 is changed to be Article 43, and one subparagraph is added to the first paragraph as Subparagraph (6), which reads: conducting investigation of a relevant unit or individual in violation of the provisions in Article 42 of this Law.”

The second paragraph is revised to read: any staff member of the banking regulatory authority engaged in supervision and administration who commits embezzlement, accepts bribes or divulges State secrets, business secrets or individual privacy, which constitutes a crime, shall be investigated for criminal responsibility according to law; and if the case is not serious enough to constitute a crime, he shall be given an administrative sanction according to law.”

3. One article is added as Article 49, which reads: a person who obstructs the inspection or investigation conducted by staff members of the banking regulatory authority according to law shall be given an administrative penalty for public security by a public security organ according to law; if the case constitutes a crime, he shall be investigated for criminal responsibility according to law.”

This Decision shall go into effect as of January 1, 2007.

The Law of the People’s Republic of China on Regulation of and Supervision over the Banking Industry shall be promulgated anew after the amendments are made according to this Decision and the order of the articles is rearranged accordingly.