Chapter I General Provisions Article 1 In order to expand the utilization of foreign capital, enhance the financing ability of Chinese investors in Sino-foreign joint ventures and cooperative enterprises, and promote the stable and healthy development of Sino-foreign joint ventures and cooperative enterprises, these Measures are formulated in accordance with the Law of People's Republic of China (PRC) City on Commercial Banks, the General Rules on Loans and relevant regulations. Article 2 New capital loans for Chinese investors in Sino-foreign joint ventures and cooperative enterprises (hereinafter referred to as Chinese capital increase loans) refer to medium and long-term loans in RMB and foreign currency issued by domestic Chinese commercial banks when they increase capital for Chinese investors in Sino-foreign joint ventures and cooperative enterprises (including Hong Kong, Macao and Taiwan). Article 3 Chinese capital increase loans must be used for enterprises engaged in encouraged and permitted projects in the industrial guidance catalogue of foreign-invested enterprises. Chapter II Object and Conditions of Loan Article 4 Any China enterprise legal person (hereinafter referred to as the borrower) who has been approved and registered by the competent state department, obtained the qualification of enterprise legal person, carried out independent accounting and established joint ventures or cooperative enterprises with foreign businessmen (including Hong Kong, Macao and Taiwan businessmen, the same below) may apply to the lender for a capital increase loan in China. Article 5 A borrower applying for a Chinese capital increase loan shall meet the following conditions:

(1) Its credit status is good, and it has no evasion of bank debts, malicious default of interest, evasion of foreign exchange or fraudulent foreign exchange. The products are marketable and profitable, and have been profitable for nearly two years;

(2) Sino-foreign equity joint ventures and cooperative enterprises established with foreign investment have obtained the approval certificate and business license of foreign-invested enterprises according to law with the approval of the competent department of the state, and their production and operation have been more than 1 year, which has good development prospects;

(3) The borrower can maintain or obtain the controlling position after increasing the registered capital in the Sino-foreign joint venture or cooperative enterprise;

(4) The registered capital that the borrower should invest and the self-raised part of the increased registered capital before the capital increase of the Sino-foreign joint venture and cooperative enterprise have been verified according to law and paid in full on schedule (the proportion is not less than 50%);

(5) Other conditions required by the lender. Chapter III Application and Issuance of Loans Article 6 A borrower applying for a Chinese capital increase loan must provide the following materials to the lender:

(1) A written application report for the loan;

(2) Project proposal, feasibility study report document, approval certificate of foreign-invested enterprise approved by the competent department of the state and business license of enterprise as a legal person of the joint venture and cooperative enterprise;

(3) A document approved by the competent state department to increase the registered capital of a Chinese-foreign joint venture or cooperative enterprise;

(four) the borrower agrees to repay the loan with its own comprehensive benefits and the repayment plan approved by the lender;

(5) The borrower's balance sheet, income statement, cash flow statement and other statements required by the lender;

(6) Proof that the borrower has a controlling stake in a Sino-foreign joint venture or cooperative enterprise or that the borrower will obtain a controlling stake after the lender approves the capital increase;

(7) The financial status and cash flow measurement report of the borrower recognized by the lender and the Sino-foreign joint ventures and cooperative enterprises invested by the borrower for more than one year;

(8) Other materials required by the lender. Article 7 After receiving the written loan application report and relevant materials, the lender shall review the loan according to the general principles of loans and the relevant provisions of these Measures. Article 8 The lender may require the borrower to provide effective loan guarantee as required. Article 9 After examination and approval, the lender shall sign a loan contract with the borrower. Only when the registered capital increased by foreign investors and the self-raised part (not less than 50%) of the registered capital increased by Chinese investors in Sino-foreign joint ventures and cooperative enterprises have been fully put in place, and other withdrawal conditions required by the lender have been implemented, the borrower can withdraw money. Chapter IV Purpose, Amount, Term and Interest Rate of Loan Article 10 The maximum loan amount shall not exceed 50% of the registered capital increased by China investors. Article 11 The loan currency is RMB or foreign currency. Article 12 The lender shall reasonably determine the loan term according to the actual situation, and the longest loan term shall not exceed ten years (including extension). Article 13 The loan interest rate shall be in accordance with the medium and long-term RMB loan interest rate of the same grade stipulated by the People's Bank of China and the foreign exchange loan interest rate published by the Bank of China authorized by the People's Bank of China. Chapter V Loan Management Article 14 The borrower must, according to the requirements of the lender, timely report the production and operation of the enterprise and Sino-foreign joint ventures and cooperative enterprises, and submit financial statements and relevant materials. Article 15 The borrower shall repay the loan principal and interest in full within the time limit stipulated in the loan contract. The source of funds for the borrower to repay the loan principal and interest is:

(1) Equity income;

(2) the comprehensive economic benefits of the borrower;

(3) Other funds at the disposal of the borrower.

When the borrower fails to repay the loan within the time limit stipulated in the loan contract, the lender has the right to collect the default interest according to the relevant provisions, and has the right to collect the loan principal and interest from the borrower's account according to the loan contract. If the principal and interest of the loan cannot be recovered, the lender may claim compensation from the guarantor, mortgagor and pledger according to law. Article 16 The lender shall regularly know about the production, operation and management of the borrower according to the loan contract, and review and analyze various financial statements. When the borrower endangers the loan security and violates the loan contract, the lender has the right to take loan preservation measures according to the loan contract to ensure the loan security. Article 17 The lender shall effectively supervise the guarantor and collateral, and have the right to take relevant measures to ensure the realization of loan guarantee.