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TABLE OF CONTENTS CHAPTER I GENERAL PROVISIONS CHAPTER II ESTABLISHMENT AND MODIFICATION CHAPTER III BUSINESS SCOPE CHAPTER IV SUPERVISION, ADMINISTRATION AND RISK CONTROL CHAPTER V RECTIFICATION, TAKEOVER AND TERMINATION CHAPTER VI SUPPLEMENTARY PROVISIONS CHAPTER I GENERAL PROVISIONS Article 1. These Measures are formulated in accordance with the "Company Law of the People's Republic of China", the "Banking Regulatory Law of the People's Republic of China" and other relevant laws and administrative regulations in order to regulate the acts of the finance companies of enterprise groups (hereinafter referred to finance companies), prevent financial risks and promote the stable operation and healthy development of finance companies. Article 2. The finance company mentioned in these Measures means a non-bank financial institution which provides financial management services for the enterprise group member entities (hereinafter referred to member entities) for the purpose of strengthening concentrated management of enterprise group funds and improving the efficiency of using the enterprise group funds. A finance company established by a foreign-funded investment company for providing its investment enterprises inside the Mainland of China with financial management services shall be governed by the relevant provisions of these Measures. Article 3. The enterprise group mentioned in these Measures means a combination of enterprise legal persons, which is lawfully registered inside the Mainland of the People's Republic of China, and is composed of parent companies, subsidiary companies, share-participating companies and other member enterprises or businesses, which are linked by means of capital, with the parent and subsidiary companies as the principal part, and with the articles of association of the group as the common behavior criteria. The member entities mentioned in these Measures include any parent company, any subsidiary company with no less than 51% of shares held by its parent company (hereinafter referred to subsidiary company); any company with no less than 20% of its shares solely or jointly held by its parent company or subsidiary company, or any company holding less than 20% of shares but in a status as the largest shareholder; and any public institution legal person or social organization legal person subordinate to the parent company or subsidiary company. The foreign-funded investment company mentioned in these Measures means a company solely established by a foreign investor inside the Mainland of China to undertake direct investments. The said investment enterprises include the foreign-funded investment company, as well as any enterprise registered inside the Mainland of China, with more than 25% of shares held by the foreign-funded investment company either solely or jointly with its investors but 10% held by the foreign-funded investment company. Foreign-funded investment companies shall be governed by the relevant provisions in these Measures on parent companies, while investment enterprises shall be governed by the relevant provisions in these Measures on member entities. Article 4. A finance company shall operate its business in accordance with the laws, regulations and rules, and may not damage the benefits of the state or public. Article 5. A finance company shall accept the supervision and administration of China Banking Regulatory Commission in accordance with the law. CHAPTER II ESTABLISHMENT AND MODIFICATION Article 6. Whoever intends to establish a finance company shall report to China Banking Regulatory Commission for examination and approval. The name of a finance company shall be approved by the industrial and commercial registration organ, and be marked with the characters of "Finance Limited Company" or "Finance Limited Liability Company", and such name shall include the name of the enterprise group either in a full form or in a shortened form. Without the approval from China Banking Regulatory Commission, no entity may use the characters of "Finance Company" in its name. Article 7. An enterprise group that applies for establishing a finance company shall meet the following conditions: (1) Conforming to the industrial policies of the state; (2) In the year prior to its application, the registered capital of its parent company shall be no less than RMB 800 million Yuan; (3) In the year prior to its application, the total amount of the assets of its member entities consolidated into statement for accounting prescribed shall be no less than RMB 5 billion Yuan, with the ratio of return on equity to be no lower than 30%; (4) In the two consecutive years prior to its application, the total amount in each year of the business income of its member entities consolidated into statement for accounting prescribed shall be no less than RMB 4 billion Yuan, with the total amount of pre-tax profits in each year to be no less than RMB 200 million Yuan; (5) It has a large scale of cash flow, which is stable; (6) Its parent company has been established for 2 years or more, and has experiences in enterprise group internal financial management and fund management; (7) Its parent company has a well-developed corporate governance structure, has neither any act in violation of laws or rules, nor any ill records concerning honesty and credibility in the latest 3 years; (8) Its parent company has core principal business; and (9) Its parent company has no inappropriate associated transactions. A foreign-funded investment company shall, in addition to being governed by the provisions of Items (1), (2), (5), (6), (7), (8) and (9) of this Article, have no less than RMB 2 billion Yuan of net assets in the year prior to its application, and have no less than RMB 200 million Yuan of pre-tax profits in each year during the two consecutive years prior to its application. Article 8. To apply for the establishment of a finance company, the board of directors of the parent company shall make a written commitment to, in the event that the finance company is in an urgent situation of difficult payment, increase capital accordingly in light of the actual needs in resolving the payment difficulties, and state such increase in the articles of association of the finance company. Article 9. Whoever intends to establish a finance company shall meet the following conditions: (1) Its enterprise group funds are truly in need of concentrated management, and are reasonably forecasted to achieve certain business scale; (2) It has the articles of association conforming to the "Company Law of the People's Republic of China" and to these Measures; (3) It has the minimum registered capital required by these Measures; (4) It has directors and managerial personnel having qualifications required by China Banking Regulatory Commission for holding their respective posts, as well as a prescribed proportion of employees in this field, and also has qualified professional talents for such key posts as risk management, intensive fund management, etc.; (5) It has well-developed systems in respect of corporate governance, internal control, business operation, risk prevention, etc.; (6) It has the required business place, safety prevention measures and other facilities; and (7) Other conditions prescribed by China Banking Regulatory Commission. Article 10. The minimum registered capital for the establishment of a finance company shall be RMB 100 million Yuan. A finance company's registered capital shall be actually contributed Renminbi or an equivalent amount of convertible currency. The registered capital of a finance company operating foreign exchanges shall include no less than 5 million USD or an equivalent amount of convertible currency. China Banking Regulatory Commission may, in light of the needs in the development of finance companies and prudential supervision, adjust the minimum limit of the registered capital of finance companies. Article 11. A finance company's registered capital shall be mainly raised from its member entities, but meanwhile the shares of qualified institutional investors other than the member entities may be absorbed. The qualified institutional investor mentioned in this Article means an external strategic investor who will not transfer within 5 years in principle the finance company's shares he holds and who has rich management experiences in this industry. The qualifications of the shareholders of the finance company shall conform to the relevant provisions of China Banking Regulatory Commission. Article 12. The registered capital for establishing a finance company by a foreign-funded investment company may be contributed by the foreign-funded investment company either solely or jointly with its investors. Article 13. Among the employees of a finance company, those who have engaged in banking or financial work for 3 years or more shall be no less than two thirds of all the employees, while those who have engaged in banking or financial work for 5 years or more shall be no less than one third of all the employees. If any accounts auditor of an internationally known accounting firm, a program designer or system analyzer of a computer company, or a professional who has worked on the relevant business and management post of an internationally known asset management company, a fund company, an investment bank, or a securities company, has working experience of 2 years or more, and has engaged in the relevant domestic business and policy training, he shall be considered having engaged in banking or financial work for 3 years or more. Article 14. The establishment of finance company shall include two stages, namely, preparation and opening business. To apply for preparation prior to the establishment of a finance company, the parent company shall file an application to China Banking Regulatory Commission, and submit the following documents: (1) the application letter, whose contents shall include the name, locality, registered capital, shareholders, share right structure, business scope, etc. of the finance company under planned establishment; (2) the feasibility study report, whose contents shall include: 1. the overall production and management situation of the parent company and other member entities, their cash flow analysis, their status in the industry involved, and their mid and long-term development planning; 2. purposes of establishing the finance company, functions, and business forecast; and 3. the consolidated balance sheet, statement of profits and losses, and the statement of cash flow of the latest 2 years, which have been audited by an eligible accounting firm; (3) a name list of the member entities, and the relevant testimonials issued by an authoritative department; (4) the "Enterprise Group Registration Certificate", photocopies of the Business Licenses of the applicant and other investors, and their guaranty for capital contribution; (5) Whoever intends to establish a foreign capital finance company needs to provide the Certificate for Approval of the Foreign-Funded Enterprise of the foreign-funded investment company and each of its investment enterprises; (6) testimonials signed by the legal representative of the parent company to confirm the authenticity of the abovementioned documents; and (7) other documents required by China Banking Regulatory Commission to be submitted. Article 15. With respect to the application for preparation prior to the establishment of a finance company, if it has been approved by China Banking Regulatory Commission after examination, the applicant shall, within 3 months as of receipt of the documents on approval of the preparation, complete the preparatory work prior to the establishment of the finance company, and file an application to China Banking Regulatory Commission for opening business, and meanwhile submit the following documents: (1) a draft of the articles of association of the finance company; (2) operational guidelines and plans of the finance company; (3) a register of the shareholders of the finance company, their respective amounts and proportions of investments; (4) a capital verification certificate issued by a legal capital verification institution on the capital contributions of the shareholders of the finance company; (5) a name list of the directors and officers who plan to hold their posts, their detailed resumes, and testimonials on their qualifications to hold such posts; (6) a name list of the employees who plan to engage in risk management and concentrated fund management, and their detailed resumes; (7) testimonials of the relevant personnel proving that they have engaged in banking or financial work for 5 years or more; (8) the finance company's business rules and risk prevention system; (9) documents on the finance company's business place and other related operational facilities; and (10) other documents required by China Banking Regulatory Commission to be submitted. Article 16. After the application of a finance company for opening business has been approved by China Banking Regulatory Commission, China Banking Regulatory Commission shall issue the "Financial Business Permit" and make an announcement. The finance company may not open business until it has made registration in the administration for industry and commerce upon strength of the "Financial Business Permit", and has obtained the "Business License of Enterprise Legal Person". Article 17. A finance company may, in light of the needs in its business, and upon examination and approval from China Banking Regulatory Commission, establish a branch in an area where it has dense member entities and large amount of businesses. The branch of a finance company shall not have the status as a legal person, and shall carry out its business activities upon authorization of the finance company in accordance with these Measures, and its civil liabilities shall be borne by the finance company. Article 18. A finance company may, in light of the needs in its business management, establish a representative office in the area where its member entities are dense, and report to China Banking Regulatory Commission for archival purposes. None of the representative offices of the finance company may operate business, except for undertaking work such as business recommendation, customer services, pressing for payment of debts, information collection, and feedback, etc. Article 19. A finance company applying for establishing a branch shall meet the following conditions: (1) It really needs to develop its business and provide financial management services to its member entities; (2) It has been established for 2 years or more, and its registered capital is no less than RMB 300 million Yuan, while its capital adequacy ratio is no lower than 10%; (3) There shall be no less than 10 member entities which the branch under planned establishment will serve, and the total assets of such member entities shall be no less than RMB 1 billion Yuan; or if there are less than 10 member entities, the total assets of such member entities shall be no less than RMB 2 billion Yuan; and (4) It is in good operational status, and has no operational records in violation of laws or rules within 2 years; Article 20. The branch of a finance company shall meet the following conditions: (1) Having the minimum amount of operational funds prescribed in these Measures; (2) Having the managerial personnel with qualifications to hold their posts prescribed by China Banking Regulatory Commission; (3) Having well-developed systems on business operation, internal control, risk management, and assumption of liabilities; (4) Having, as required, the business place, preventive measures for the sake of safety, and other facilities related to the business; and (5) Other conditions prescribed by China Banking Regulatory Commission. Article 21. The operational funds of the branch of a finance company shall be no less than RMB 50 million Yuan. The total amount of the operational funds allotted by a finance company to all its branches shall be no more than 50% of its registered capital. Article 22. Where a finance company applies for establishing a branch, it shall submit the following documents to China Banking Regulatory Commission: (1) an application letter, whose contents shall include the name, locality, operational funds, business scope of the branch planned to be established, and the objects of services, etc.; (2) the feasibility study report, whose contents shall include the forecasted amount of business of the branch planned to be established, the conditions of production and operation of the member entities at the locality, the analysis on flow of funds, as well as mid and long-term development planning, etc.; (3) relevant testimonials conforming to Article 20; (4) the resolution of the finance company's board of directors on applying for the establishment of the branch, and the draft of the resolution on authorization to the business scope of the branch planned to be established; and (5) other documents required by China Banking Regulatory Commission to be submitted. Article 23. China Banking Regulatory Commission shall issue the "Financial Business Permit" to a finance company's branch that is approved to be established, and shall make an announcement. The branch may not open its business until it has gone through the registration formalities in the administration for industry and commerce by bringing the "Financial Business Permit", and has obtained the Business License. Article 24. Where a finance company or its branch that is approved to be established does not open its business within 6 months as of obtaining the Business License without any justifiable reasons, or suspends, without any justifiable reasons, its business for 6 consecutive months as of opening its business, its "Financial Business Permit" shall be revoked by China Banking Regulatory Commission, and such revocation shall be announced to the public. Article 25. A finance company shall use the "Financial Business Permit" in accordance with laws, administrative regulations, and the provisions of China Banking Regulatory Commission, and is prohibited from forging, altering, transferring, lending or leasing the "Financial Business Permit". Article 26. The nature, organizational form and organizational structure of a finance company shall conform to the "Company Law of the People's Republic of China" and other relevant laws and regulations, and shall be stated in the company's articles of association. Article 27. Where a finance company intends to modify any of the following items, it shall report to China Banking Regulatory Commission for approval: (1) its name ; (2) its business scope ; (3) its registered capital ; (4) its shareholder(s) or share right structure; (5) its articles of association ; (6) its director(s) or managerial personnel; (7) its business place; or (8) other items prescribed by China Banking Regulatory Commission. Where a finance company's branch intends to modify its name, operational funds, business place or to replace any of the managerial personnel, the finance company shall report to China Banking Regulatory Commission for approval. CHAPTER III BUSINESS SCOPE Article 28. A finance company may operate the whole or part of the following businesses: (1) Providing its member entities with financial and financing advising, credit authentication, as well as related consulting and agency services; (2) Assisting its member entities in collection and payment of money for transactions; (3) Providing approved insurance agency services; (4) Providing guaranty for member entities; (5) Handling entrusted loans and entrusted investments between member entities; (6) Handling acceptance and discount of bills for member entities; (7) Handling internal transfer settlement between member entities, and designing programs for settlement and liquidation accordingly; (8) Absorbing deposits from its member entities; (9) Granting loans to and handling financing lease for the member entities; (10) Engaging in inter-bank borrowing; and (11) Other business approved by China Banking Regulatory Commission. Article 29. A finance company that meets the conditions may apply to China Banking Regulatory Commission for engaging in the following businesses: (1) Issuing its bonds upon approval; (2) Underwriting enterprise bonds of the member entities; (3) Contributing share right investments to financial institutions; (4) Investing securities; and (5) Undertaking consumption credit, buyer's credit and financing lease on the products of the member entities. Article 30. A finance company must, when it engages in the businesses listed in Article 29 of these Measures, strictly abide by the relevant provisions of the state and the relevant requirements of China Banking Regulatory Commission on prudential supervision, and shall also meet the following conditions: (1) It has been established for no less than 1 year, and is in good management conditions; (2) Its registered capital is no less than RMB 300 million Yuan; and if it engages in consumption credit, buyer's credit and financing lease of the products of its member entities, its registered capital shall be no less than RMB 500 million Yuan; (3) It has been approved by the shareholders' meeting and authorized by the board of directors; (4) It has well-developed mechanism for investment decision making, system of risk control, working rules and corresponding management information system; (5) It has corresponding qualified professionals; and (6) Other conditions prescribed by China Banking Regulatory Commission. Article 31. A finance company may not engage in offshore business, nor may it engage in any form of trans-territorial funds business except those prescribed in Paragraph 2 of Article 28 of these Measures. Article 32. The business scope of a finance company shall, after approved by China Banking Regulatory Commission, be stated in the finance company's articles of association. The finance company may not handle industrial investment, trade or other non-financial business. A finance company shall, when classifying its business into detailed items within the approved business scope, report to China Banking Regulatory Commission for archival purposes, but the intermediary business involving no credits or debts shall be excluded. Article 33. The business scope of a finance company's branch shall be authorized by the finance company within its business scope in compliance with the principle of prudential operation, and shall be reported to China Banking Regulatory Commission for archival purposes. No branch of a finance company may provide guaranty, engage in inter-bank borrowing and the businesses prescribed in Article 29 of these Measures. CHAPTER IV SUPERVISION, ADMINISTRATION AND RISK CONTROL Article 34. A finance company shall, when running its business, abide by the following requirements on liability/asset ratio: (1) Its capital adequacy ratio may not be lower than 10%; (2) The balance of its borrowed money shall not be more than the total amount of its capital; (3) The balance of guaranty may not be more than the total amount of its capital; (4) The proportion of its short-term securities investment to the total amount of its capital may not be higher than 40%; (5) The proportion of its long-term investments to the total amount of its capital may not be higher than 30%; and (6) The proportion of its own fixed assets to the total amount of its capital may not be higher than 20%. China Banking Regulatory Commission may, in light of the need in the business development of finance companies or in prudential supervision, make adjustments to the above mentioned proportions. Article 35. A finance company shall, by following the principle of prudential operation, set forth its business rules and procedures, as well as set up and improve its internal control system. Article 36. A finance company shall establish respectively a risk management department and an auditing department which are responsible to the board of directors, and shall draft risk control and auditing systems for various items of businesses, regularly report to the board of directors in each year, and report to China Banking Regulatory Commission. Article 37. The board of directors of a finance company shall entrust a qualified intermediary institution in each year to audit the company's business activities of the last year, and shall, before April 15 of each year, submit the annual auditing report which has been signed and confirmed by the chairman of the board to China Banking Regulatory Commission. Article 38. A finance company shall set up and improve its financial and accounting systems in accordance with the relevant provisions of the state. A finance company shall comply with the prudential accounting principles, genuinely record and entirely reflect its business activities and financial status. Article 39. A finance company shall submit to China Banking Regulatory Commission according to the provisions its balance sheet, statement of profits and losses, statement of cash flow, statement of appraisal on its non-on-site supervision index, and other statements required by China Banking Regulatory Commission to be submitted, and shall, within 1 month after the end of each accounting year, submit the financial statements and documents of the last year. The legal representative of the finance company shall be responsible for the authenticity of the above mentioned statements submitted bearing his signature. Article 40. A finance company shall, by the end of April in each year, submit to China Banking Regulatory Commission the directory of the member entities under the enterprise group to which it belongs, and shall provide the said enterprise group's operational status of the last year and relevant data, as well. A finance company shall, before carrying out business towards a new member entity, timely report to China Banking Regulatory Commission for archival purposes, and provide the relevant information of the member entity; if a member entity having business contacts with the finance company is separated from the enterprise group due to property change, the finance company shall timely report to China Banking Regulatory Commission for archival purposes; and if there is any remaining business, it shall meanwhile submit a solution to this remaining business. Article 41. China Banking Regulatory Commission shall have the power to require a finance company at any time to submit reports and information on the relevant business and financial status. Article 42. When a finance company meets with bank run, is unable to pay debts due, has exceeded the period of large amount of loans, advances money for providing guaranty, meets with serious computer breakdown, is robbed or deceived, or any of its directors or officers is involved in major events such as serious violation of disciplines or criminal case, etc., it shall immediately take emergent measures and timely report to China Banking Regulatory Commission. When an enterprise group or any of its member entities meets with a major institutional change, a share right transaction or an operational risk, etc. which might impair the normal operation of the finance company, the finance company shall timely report to China Banking Regulatory Commission. Article 43. A finance company shall pay deposit reserve and draw loss reserve in accordance with the provisions of the People's Bank of China, and write off its losses in accordance with the relevant provisions. Article 44. A finance company shall abide by the relevant provisions of the People's Bank of China on interest rate management; those operating foreign exchange business shall abide by the relevant provisions of the state on foreign exchange control. Article 45. China Banking Regulatory Commission shall have the power to, in light of the requirements on prudential supervision, take the following measures in accordance with the relevant procedures and provisions to make on-site inspections on finance companies: (1) Entering a finance company for inspection; (2) Inquiring of employees of a finance company, and requiring them to explain the inspected particulars; (3) Consulting and reproducing documents of a finance company which are related to the inspected particulars, sealing up the documents which might be transferred, concealed or damaged; and (4) Inspecting a finance company's computer management data system. Article 46. Where a finance company grants to a single shareholder loans with the balance exceeding 50% of the finance company's registered capital or of the shareholder's capital contributions to the finance company, it shall timely report to China Banking Regulatory Commission. Article 47. Where the liabilities of a finance company's shareholder to the finance company have remained unpaid for 1 year or more, China Banking Regulatory Commission may order the shareholders' meeting of the finance company to transfer the shareholder's capital contributions and other interests to repay his/its liabilities to the finance company. Article 48. China Banking Regulatory Commission may, in light of the needs in performing duties and on the basis of the problems found in daily supervision, have supervisory talks with the directors and managerial personnel of the finance company, requiring them to explain the finance company's business activities and major events such as risk management, etc. Article 49. The directors and managerial personnel of a finance company shall have experiences in concentrated management of finance company funds. If a director or any of the managerial personnel is to hold his post, the relevant documents of him shall be reported according to the provisions to China Banking Regulatory Commission for examination on his qualification for the post. If his qualification for the post has not been examined or he is examined as unqualified for the post, he may not hold the post of director or managerial personnel of the finance company. The specific measures for the administration of qualification for such posts shall be separately formulated. If a director or any of the managerial personnel of a finance company leaves his post, an audit on such leaving shall be made by the parent company in accordance with the relevant provisions, and the auditing report shall be submitted to China Banking Regulatory Commission. Article 50. Where a finance company violates the principle of prudential operation, China Banking Regulatory Commission shall, pursuant to the procedures, order it to make corrections within a time limit. If it fails to make corrections within the time limit, or its behavior seriously endangers its stable operation, or damages the lawful rights and interests of depositors or other clients, China Banking Regulatory Commission may take the following measures pursuant to the relevant procedures: (1) Ordering it to suspend part of its business, and stopping approving it to run new business; (2) Restricting its distribution of dividends and other income; (3) Restricting its asset transfer; (4) Ordering the controlling shareholder to transfer its share rights or restricting the rights of the relevant shareholder; (5) Ordering it to adjust its directors and officers or restricting its rights; and (6) Stopping approving it to establish any additional branch. Article 51. Finance companies may form a vocational self-disciplinary organization. China Banking Regulatory Commission shall provide business guidance to the vocational self-disciplinary organization of finance companies. CHAPTER V RECTIFICATION, TAKEOVER AND TERMINATION Article 52. Where a finance company is under any of the following circumstances, China Banking Regulatory Commission may order it to make rectification: (1) It runs into serious payment crisis; (2) Its deficiency in the current year exceeds 30% of the registered capital or it has been in a situation for 3 consecutive years where its deficiency exceeded 10% of the registered capital; or (3) It seriously violates the laws and administrative regulations of the state or the relevant rules. The time for rectification shall be no longer than 1 year. Article 53. During the rectification of a finance company, part or all of its businesses shall be temporarily suspended. Article 54. A finance company may, after rectification, restore its normal business, if it meets the following conditions: (1) It has restored the payment capability; (2) Its deficiency has been made up; and (3) It has corrected its acts in violation of laws or rules. Article 55. When a finance company has run into or is possible to run into payment crisis, thus seriously impairing creditors' benefits or the stability of financial order, China Banking Regulatory Commission may lawfully take over the finance company or make it go into institutional restructuring. The takeover or institutional restructuring shall be decided on and organized for implementation by China Banking Regulatory Commission. Article 56. A finance company shall be dissolved upon approval from China Banking Regulatory Commission, if it is under any of the following circumstances: (1) The enterprise group which established the finance company is dissolved, and the finance company is unable to be merged or restructured; (2) Any of the causes prescribed in the articles of association for dissolution occurs; (3) The shareholders' meeting decides on dissolution; or (4) There is no need for the finance company to continue existing due to division or merger. Article 57. Where a finance company is in a situation of illegal operation, ill management, etc., and will seriously endanger financial order and damage public benefits if it is not revoked, China Banking Regulatory Commission shall have the power to revoke it. Article 58. Where a finance company is taken over, restructured or cancelled, China Banking Regulatory Commission shall have the power to require the directors, managerial personnel and other employees of this finance company to perform their duties in light of the requirements of China Banking Regulatory Commission. Article 59. Where a finance company is dissolved or cancelled, its parent company shall lawfully form a liquidation team to, pursuant to the legal procedures, carry out liquidation, which shall be publicly announced by China Banking Regulatory Commission. China Banking Regulatory Commission may directly appoint the members of the liquidation team and supervise the liquidation process. Article 60. When the liquidation team finds in its liquidation that the assets of the finance company are insufficient for paying off its debts, it shall immediately cease the liquidation, and report to China Banking Regulatory Commission. It shall also, upon approval from China Banking Regulatory Commission, apply in accordance with the law to the people's court for declaring bankruptcy of the finance company. CHAPTER VI SUPPLEMENTARY PROVISIONS Article 61. Whoever violates the relevant provisions in these Measures shall be punished by China Banking Regulatory Commission in accordance with the "Banking Regulatory Law of the People's Republic of China" and other relevant provisions. If a finance company refuses to accept the decision of China Banking Regulatory Commission on punishment, it may apply for administrative reconsideration or bring an administrative lawsuit to the people's court in accordance with the law. Article 62. Any finance company that was established prior to the promulgation of these Measures and does not conform to the relevant provisions of these Measures, shall make rectifications within the prescribed time limit, and shall, within the rectification period, abide by the provisions in these Measures on prudential supervision such as paid-up capital, capital adequacy ratio, etc. The specific requirements shall be separately formulated by China Banking Regulatory Commission. Article 63. The responsibility to interpret these Measures shall remain with China Banking Regulatory Commission. Article 64. These Measures shall come into force on September 1, 2004. The former "Measures for the Administration of Finance Companies of Enterprise Groups" (No. 3 [2000] of the People's Bank of China) shall be repealed simultaneously. |
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