Interim Measures of China People's Bank on Fund Management of Financial Trust and Investment Institutions

Article 1 In order to give full play to the positive role of financial trust and investment institutions (hereinafter referred to as trust institutions, the same below) in raising and financing funds and supporting economic development, these Measures are formulated in accordance with the basic spirit of the Interim Regulations on the Administration of Banks in China, People's Republic of China (PRC) and the Interim Provisions on the Administration of Financial Trust and Investment Institutions of the People's Bank of China. Article 2 All trust institutions, branches of provinces, autonomous regions and municipalities directly under the Central Government, branches of cities specifically designated in the state plan and Shenzhen Special Economic Zone (hereinafter referred to as provincial, regional and municipal branches) with financial business licenses approved by the head offices of the People's Bank of the State Council and China shall manage their RMB trust funds in accordance with these Measures. Measures for the administration of foreign exchange trust funds shall be formulated separately. Article 3 A trust institution shall, in accordance with the provisions of the head office of the People's Bank of China, prepare an annual trust fund plan and report it to the local people's bank. It shall be audited and summarized by the provincial, district and municipal branches of the People's Bank of China and reported to the head office of the People's Bank of China. The head office of the People's Bank of China is comprehensively balanced and incorporated into the national comprehensive credit plan. After approval, the trust fund plans of all provinces, autonomous regions and municipalities directly under the Central Government shall be approved respectively. The provincial, district and municipal branches of the People's Bank of China shall, within the trust fund plan approved by the head office, examine and approve the trust fund plans of various trust institutions and be responsible for organizing their implementation.

The national trust fund revenue and expenditure plan shall be summarized, reported and approved by the local branch of the People's Bank of China, and shall be responsible for organizing the implementation. Article 4 The investments or loans of trust institutions are divided into two categories: entrustment and trust:

(1) Entrusted investment or loan refers to the investment or loan of the project designated by the client, which is an agency business. The economic responsibility for the investment or loan shall be borne by the client. The funds are provided by the customers. Adhere to the distribution before use, saving before borrowing.

(2) Trust investment or loan refers to the investment or loan made by a trust institution with raised funds and its own funds. Trust institutions should bear economic responsibility for investment or loans. The source of funds is mainly raised by issuing bonds, stocks and interbank borrowing. Article 5 Trust institutions may absorb trust deposits with a term of more than one year (including one year) within the following scope:

(1) Trust funds entrusted by the financial department for investment or loan;

(two) the trust funds entrusted by the competent departments of enterprises and institutions for investment or loans;

(three) the labor insurance fund of the labor insurance institution;

(4) scientific research funds of scientific research institutions;

(5) Funds of various societies and foundations.

All trust institutions shall not absorb deposits outside the above scope. Article 6 A trust institution shall deposit the deposit reserve with the People's Bank of China in accordance with regulations, and the deposit ratio shall be stipulated by the head office of the People's Bank of China.

Entrusted deposits (that is, entrusted investment or loan funds allocated by customers for designated projects) and trust deposits must be strictly distinguished and truthfully reflected. The balance of entrusted deposits after deducting entrusted investments or loans may be temporarily withheld from deposit reserve. Trust deposits shall be deposited into the deposit reserve according to the actual balance. Article 7 A trust institution shall go through the deposit formalities with the local People's Bank of China within 5 days after each month. The last day is a holiday, which can be postponed.

The People's Bank of China will impose a penalty of 2/10000 on the amount of deposit reserve due to insufficient funds. The People's Bank of China will impose a penalty of three ten thousandths of the amount found late or underpaid on a daily basis. Article 8 The People's Bank of China shall separately manage the trust plans and trust funds of trust institutions. Trust institutions should adhere to the principle of self-balance, live within our means, limit the use of funds by sources of funds, and leave no funding gap. Article 9 A trust institution shall not only have the minimum paid-in capital, but also continuously supplement it with the development of trust business. Supplementary sources are: first, issuing stocks; Second, set aside a certain proportion from the annual profit; Third, the local or competent authorities allocate additional funds. Article 10 The deposit after the trust institution has deposited the reserve with the People's Bank of China in accordance with regulations, together with the paid-in capital, belongs to the working capital of the trust institution. In accordance with national policies and plans, independent management, rational use, independent accounting, at your own risk, and stress on efficiency, no department or individual may interfere with the normal fund revenue and expenditure activities of trust institutions. Article 11 The total amount of fixed assets investment, fixed assets loans and leases issued by a trust institution in the current year shall not exceed 60% of the sum of trust deposits, bonds issued and paid-in capital. According to the needs of national macro-control, the head office of the People's Bank of China can adjust this ratio at any time.

Trust and entrusted fixed assets investment, fixed assets loans and leases handled by trust institutions should be included in the scale of fixed assets investment issued by the state. Article 12 A trust institution shall open an account with the People's Bank of China.

(1) A national trust institution shall open a deposit and loan account with the local people's bank entrusted by the head office of the People's Bank of China.

(2) Trust institutions in provinces, autonomous regions, municipalities directly under the Central Government and regions shall open deposit and loan accounts with the People's Bank at the same level or people's bank institutions entrusted by the People's Bank at the same level.

Trust institutions shall not overdraw for settlement of funds in the same city, settlement of funds in different places and deposit with the People's Bank of China. Article 13 If a trust institution is approved to engage in both foreign trade import and export business and technology import business, its non-financial trust business and financial trust business must be accounted for separately, and separate accounts must be established. The people's bank of China will not provide loan support if the accounts are not accounted for separately and the income and expenditure of funds are mixed.