Chapter I General Provisions Article 1 These Measures are formulated in accordance with the Regulations of People's Republic of China (PRC) on Foreign Exchange Control for the purpose of regulating the operation of banks in offshore bank. Article 2 The term "banks" as mentioned in these Measures refers to Chinese-funded banks and their branches that are approved by the State Administration of Foreign Exchange to engage in foreign exchange business. Article 3 The term "offshore bank" as mentioned in these Measures refers to the financial activities in which banks absorb non-resident funds and serve them. Article 4 The term "non-residents" as mentioned in these Measures refers to natural persons, legal persons (including overseas investment enterprises registered in China), government agencies, international organizations and other economic organizations, including overseas branches of Chinese-funded financial institutions, but excluding overseas representative offices and offices of domestic institutions. Article 5 The operating currency of offshore banks is limited to freely convertible currencies. Article 6 The State Administration of Foreign Exchange and its branches (hereinafter referred to as the "foreign exchange bureaus") are the regulatory authorities for banks to operate offshore banks, and are responsible for the approval, management, supervision and inspection of offshore banks. Article 7 Banks shall operate offshore banks in accordance with these Measures and provide services to customers with reference to international practices. Chapter II Application of Offshore Banks Article 8 Banks operating in offshore bank shall be approved by the State Administration of Foreign Exchange and operate within the approved business scope. Without approval, the operator shall not operate offshore banks beyond the scope. Article 9 A bank that meets the following conditions may apply for operating in offshore bank:

(1) Abide by national financial laws and regulations, and have no major violations of laws and regulations in the past three years;

(2) It has a prescribed scale of foreign exchange assets and has a good performance in foreign exchange business;

(3) Foreign exchange practitioners with corresponding qualifications have no bad records in their previous business activities. Among them, the person in charge should have more than 5 years of foreign exchange business experience, and at least 50% of other employees should have more than 3 years of foreign exchange business experience;

(4) Having perfect internal management rules and regulations and a risk control system;

(5) Having places and facilities suitable for offshore business;

(6) Other conditions as required by the State Administration of Foreign Exchange. Article 10 A bank applying to operate an offshore bank shall submit the following documents and materials to the foreign exchange bureau:

(a) an application for operating an offshore bank;

(2) A feasibility report on operating offshore banks;

(3) A copy of the original license for foreign exchange business;

(4) Operating the internal management rules and regulations and risk control system of offshore banks;

(5) Balance sheets and profit and loss statements (foreign currency consolidated statements, RMB and foreign currency consolidated statements) for the last three years;

(6) The names and resumes of the person in charge of the offshore bank and other employees, and the qualification certificates of foreign exchange employees issued by the foreign exchange bureau;

(7) Brief introduction of the business premises and facilities of the offshore bank;

(8) Other documents and materials required by the State Administration of Foreign Exchange.

In addition to the above documents and materials, the bank branch shall also submit the document that its head office agrees to set up an offshore bank, the authorization letter issued by the head office to operate an offshore bank and the acceptance report on the establishment of an offshore bank. Article 11 The application by the head office of a bank to operate an offshore bank shall be examined and approved by the State Administration of Foreign Exchange. The application for operating a bank branch in offshore bank shall be submitted to the State Administration of Foreign Exchange for examination and approval after preliminary examination by the local foreign exchange bureau. Article 12 The State Administration of Foreign Exchange shall, after receiving the application for bank operation in offshore bank, examine it and give a reply within 4 months from the date of receiving the application report. For banks that do not meet the requirements for establishing offshore banks, the State Administration of Foreign Exchange will return their applications. The bank may not apply for the same content again within 6 months from the date of return. Article 13 If a bank that has been approved to operate offshore business fails to start business within six months from the date of approval, it shall be deemed to automatically terminate offshore bank. The State Administration of Foreign Exchange has the right to cancel its qualification to operate offshore banks. Article 14 When applying for suspension of offshore bank, a bank shall submit the following documents and materials to the foreign exchange bureau:

(1) An application report on the closure of offshore banks;

(2) A detailed explanation of the closure of the offshore bank (including the reasons for the closure of the offshore bank and the measures and steps to clean up the creditor's rights and debts after the closure of the offshore bank);

(3) Other documents and materials required by the State Administration of Foreign Exchange.

In addition to the above documents and materials, the bank branch shall also submit the documents that its head office agrees to suspend offshore bank. Article 15 The State Administration of Foreign Exchange shall give a reply within 4 months after receiving the application for the bank to stop operating in offshore bank. After the approval of the State Administration of Foreign Exchange, banks can close offshore banks. Article 16 A bank may apply for some or all of the following offshore banks:

(1) Foreign exchange deposits;

(2) Foreign exchange loans;

(3) Inter-bank foreign exchange borrowing;

(4) international settlement;

(5) Issuing large negotiable certificates of deposit;

(6) Foreign exchange guarantee;

(seven) consulting and witness business;

(8) Other businesses approved by the State Administration of Foreign Exchange.