Foreign investors are allowed to invest to listed companies in PRC

Ministry of Commerce
2005 State Administration of Foreign Exchange's order no. 28
Dec 31 2005

Ministry of Commerce and other departments have recently announced that from Jan 31 2006, foreign investors who fulfill the following conditions are allowed to invest to listed companies in PRC:

1. Legitimate foreign enterprises or other organizations with sound credit, financial background and management experience.

2. Companies' actual total assets outside PRC of not less than USD100 million or managing total assets outside PRC of not less than USD500 million. Or parent company has actual total assets outside PRC of not less than USD100 million or is managing actual total assets outside PRC of not less than USD500 million.

3. Having a well-structured monitoring and internal control system.

4. Have not received any serious punishment from any monitoring organizations within the last three years. (including the parent company)

商務部　外資司
國家外匯管理局令２００５年第２８號
２００５年１２月３１日

商務部等部門近日發出通知，從2006年1月31日起，符合以下條件的投資者可以對上市公司進行投資：

（一） 依法設立、經營的外國法人或其他組織，財務穩健、資信良好且具有成熟的管理經驗；
（二） 境外實有資產總額不低於1億美元或管理的境外實有資產總額不低於5億美元；或其母公司境外實有資?總額不低於1億美元或管理的境外實有資產總額不低於5億美元；
（三） 有健全的治理結構和良好的內控制度，經營行為規範；
（四） 近三年內未受到境內外監管機構的重大處罰（包括其母公司）