January 7, 2009

With a view to further promoting the sound development of the inter-bank bond market and protecting the interests of the investors, the review and approval policy regarding bond trading and circulation is adjusted as follows:

1. The floor restriction of 500 million yuan for bonds to be issued on the inter-bank market shall be rescinded, and Article 4(4) of the Rules on the Review and Approval of Bond Trading and Circulation on the Inter-Bank Market (PBC Announcement No.19 [2004]), Article 2 of PBC Announcement No.15 [2005] and Article 1(4) of PBC Announcement No.30 [2005] shall be abolished.

2. The National Inter-Bank Funding Center and the Central Government Bond Depository Trust and Clearing Co., Ltd shall improve the work related to bond trading and circulation in accordance with this Announcement and other relevant regulations of the People’s Bank of China.

3. This Announcement shall come into effect upon its release.