Article 1 The object of mortgage loan. All Chinese-foreign equity joint ventures, Chinese-foreign contractual joint ventures and foreign-invested enterprises registered in People's Republic of China (PRC) can apply for RMB loans with their own foreign exchange (including foreign exchange borrowed from abroad) as collateral. Article 2 The purpose of mortgage loan. Can be used for liquidity, but also for planned investment in state-owned assets. Article 3 Types and duration of mortgage loans. Mortgage loans are divided into short-term and medium-and long-term types. The term of short-term mortgage loan is divided into three months, six months and one year. The medium and long-term mortgage loan is more than one year, and the longest is not more than five years. Article 4 Types of mortgaged foreign exchange. At present, there are only five kinds of foreign exchange used for mortgage loans: US dollars, Japanese yen, Hong Kong dollars, German marks and British pounds. Article 5 Except for the special economic zones, the mortgage loan business is entrusted by the People's Bank of China to China Bank and other financial institutions. Article 6 Application for mortgage loan. Units applying for mortgage shall first declare the source and amount of foreign exchange and funds to the State Administration of Foreign Exchange or its branches, and go through the loan application procedures at the entrusted bank designated by the People's Bank of China after approval.

Fill in the loan application form. Article 7 the issuance of mortgage loans. The mortgage unit shall sign a loan contract with the entrusted bank after the application is approved by the bank. Article 8 Recovery of mortgage loans. The loan is not due, and the mortgage unit cannot repay in advance. After the loan expires, the mortgagor will return the reduced RMB loan amount, and the entrusted bank will return the original mortgaged foreign exchange amount, which is not affected by exchange rate changes. If the RMB loan cannot be repaid at maturity, the mortgaged foreign exchange shall be owned by the People's Bank of China. If foreign exchange borrowed from abroad is used as collateral, the mortgagor shall still fulfill the obligation to repay the principal and interest of the foreign debt to the creditors in the original debt relationship. Article 9 Calculation of RMB loan amount. The maximum amount of RMB loan granted by the bank to the mortgagor shall not exceed the amount of collateral calculated according to the RMB exchange rate (buying price) announced by the State Administration of Foreign Exchange on the mortgage date. Article 10 RMB loans issued by banks and mortgaged foreign exchange paid by mortgage units do not bear interest on each other. Article 11 The right to interpret these Measures belongs to the People's Bank of China. Article 12 These Measures shall be implemented as of the date of promulgation.