4. Measures for the Administration of Representative Offices of Foreign Securities Institutions in China

Issued by the China Securities Regulatory Commission

These Measures were promulgated on April 22, 1999, and apply to establishment of representative offices of foreign securities institutions in the PRC.

For the purposes of these Measures, "foreign securities institutions" refer to investment banks, merchant banks, securities brokerages, and fund management companies established overseas. Securities institutions registered in Hong Kong, Macau or Taiwan and Sino-foreign joint venture securities institutions must also observe these Measures when applying to set up a representative office in China.

The China Securities Regulatory Commission ("CSRC") assumes responsibility for the examination, approval and supervision of such representative offices. CSRC's local branches throughout China are charged with implementing routine regulation of the representative offices of foreign securities institutions within their jurisdictions.

Foreign securities institutions applying for the establishment of representative offices in China must satisfy the following conditions:

* they must be registered in a country or region where financial regulation is well established;

* they must have a sound reputation internationally; and

* they must have registered profit-making years for the three consecutive years prior to application.

Documents to be submitted with the application must be accompanied by a Chinese translation, with the exception of annual reports.

An applicant already maintaining three or more offices in the PRC may apply to set up a general representative office through these Measures. General Representatives and Chief Representatives may be either foreign or PRC nationals.

Approval certificates are issued by CSRC to successful applicants and are valid for six years.