China Banking Regulatory
Commission on the issuance of Notice of
"Financing Guarantee Company Information Disclosure Guidelines"

Provinces, autonomous regions and municipalities financing guarantee
institutions regulatory authorities:

"Financing guarantee company information disclosure guidelines"
has been examined and approved in the Regulatory Financial Guarantee
Business Inter-ministerial meeting on July 23, 2010, it is issued
to you, please implement it conscientiously when
practically possible.

Please forward this
notice to the jurisdiction of the financing guarantee
institutions.

Nov. 25, 2010

     

 

The Financing Guarantee Company
Information Disclosure Guidelines

 Chapter One - General Principle

Article 1 in order to regulate
the financing guarantee company information disclosure behavior, promote the financing
guarantee company and banking financial institutions and other creditors
business cooperation, stability and healthy development, according to the"
Interim Measures for the administration of financing guarantee company ","accounting
standards for business enterprises" and other relevant provisions, these
guidelines have been formulated.

Article 2 in these guidelines, the
term of “supervision department” refers to the department determined by the
province, autonomous region, municipality directly under the Central People's government,
for the responsibility for the supervision and management of the financing
guarantee company

Article 3 according to these
guidelines, the disclosure of the creditors and other stakeholders will be responsibility
of the financing guarantee company

Article 4 for the basis of encouraging
the financing guarantee company in compliance with this guidance, to disclose
the information to the public.

Article 5 the financing
guarantee company shall follow the principle of the authenticity, accuracy,
completeness, timeliness and comparability to disclose the information.

Article 6 the financing
guarantee company information disclosure shall abide by the laws, regulations,
rules and regulations, national accounting system and other relevant
provisions.

Article 7 to disclose the
annual financial accounting report, disclosed by the financing guarantee company
should be audited by a qualified intermediary institution.

Article 8 the supervision
department shall enhance supervision and guidance for the financing guarantee company
information disclosure, according to the laws, regulations and rules.

Chapter
2 The Content of Information Disclosure

Article 9 the financing
guarantee company shall disclose information in accordance with the guidelines
including:

(1) The annual report.

(2) Major issues Interim
report.

(3) Laws, regulations, rules and supervisory departments requiring
disclosure of other information.

Article 10 the financing
guarantee company shall, according to the guideline, compile and disclose the
annual report and the annual report shall at least include the following
contents:

(1) Company profile.

(2) Corporate governance and
internal control.

(3) Risk management.

(4) Guarantee business overall situation and the financing
guarantee business situation.

(5) Capital composition and
funds use.

(6) The financial accounting
report.

Financing
guarantee company entrusts an external ratings agencies to assess
credit rating, and shall submit the company credit rating report summary content
in its annual report for disclosure.

Article 11 the financing
guarantee company shall disclose the following information in the company
profiles:

(1) Company profile.

(2) Business plan.

(3) Organizational structure,
the establishment of branches and staff.

(4) Cooperative financial
institutions.

Article 12 the financing
guarantee company shall, in the corporate governance and internal control,
disclose the following information:

(1) The company’s ten largest
shareholders or actual controller’s name, basic situation as well as the
changes during reporting period.

(2) Significant resolution in the
shareholders (AGM) meeting in the present year.

(3) The board structure and their
working conditions.

(4) The board of supervisor’s
structure and working condition.

(5) The senior management structure
and its basic situation.

(6) Internal control, focus on
disclosure of internal control construction and implementation of the company.

Article 13 the financing
guarantee company shall disclose the following risk management conditions:

(1) Risk management overview.
Including: risk management principles, processes, organizational structure and
responsibilities as well as new system business risk, reserve standard
compensation for losses of the verification standard, counter-guarantee measure
of security, risk early-warning mechanism and emergency response mechanism.

(2) Credit risk management.
Including: credit risk management methods, business activities generating a
credit risk, the closing amount exposed by credit risk.

(3) The liquidity risk
management. Including: the factors affecting the liquidity, the relevant
indicators reflecting the liquidity situation as well as the matching condition
of liquidity and one- year due warranty liability, Liquidity risk management
method.

(4) The market risk management.
Including: interest rate, exchange rate and other factors, which change and
produce the overall market risk level and different level of market risk,
market risk management method.

(5) The operational risk
management. Including: the risk caused by internal procedures, personnel, imperfect
system or poorly enforcement, or external events risk. The operation risk
management method.

(6) Other risk management.
Including: the other risk factors may cause serious adverse conditions to the
company, creditors and other stakeholders, and the company risk management
method for this kind of risk.

Article 14 the financing
guarantee company shall, in respect of the yearly guarantee business situation
and the financing guarantee business, disclose the following information:

(1) Underwriting: the final guarantee
balance, the current year cumulative amount of guarantee, recent three year cumulative
amount of guarantee.

(2)
Compensatory situations: the current year amount of additional compensation, total compensation amount
of the last three years.

(3) The recovery and losses:
the current year compensatory recovery amount, recent three year cumulative
total
compensatory recovery amount and the cumulative loss amounts after verification
cancellation.

(4) The reserve:
the reserve balance of the outstanding liability, indemnity reserve balance,
the general risk reserve balance.

(5) Concentration: top ten
customers concentration details, largest three related customer concentration
details.

(6) Magnification: guarantee
business magnification, the financing guarantee business magnification.

(7) Service quality: guarantee
compensation rate, compensatory recovery rate, guarantee loss rate, provision
coverage rate.

(8) The acceptance from the
supervision department’s inspection and rectification.

Article
15 the financing
guarantee company shall disclose the capital structure at the end of year and
the annual detailed use of funds.

Article 16 the financing
guarantee companies disclosure of the financial and accounting reports shall at
least include: balance sheet, income statement, cash flow statement, owner’s
changes in equity and the financial statements annotation.

.

The financing guarantee
companies disclosure of the financial and accounting reports should compile in
accordance with the" accounting standards for business enterprises"
regulation.

Article 17 if the financing
guarantee company has any major incidents happened; it shall make a major incidents
interim report and time disclosure. The forbidden release of information about laws,
regulations, rules and relevant regulations that are prohibited from disclosure
of information will be accepted. Major events including but not limited to the following:

(1) The company's largest
shareholder changes and causes.

(2) Chairman, supervisory
board chairman (Supervisors), general manager changes and causes.

(3)The company name, the company
name, company articles of association, registered capital and
residence changes.

(4) Merger,
division, the dissolution etc.

(5) The company's major
litigation matters.

(6) The events that may
seriously jeopardize the company normal business operation, solvency and credit
level, and effect regional financial order and social stability

.

Article 18 the financing
guarantee companies to disclose the interim report of major events shall at
least include: major matters occurring time, basic situation, possible effects,
have been taken and proposed measures.

Chapter
3 Management of Information Disclosure

Article 19 the financing
guarantee institute shall establish a sound information disclosure system,
improve information disclosure process, and designate a person responsible for
information disclosure.

Article 20 the financing
guarantee institute shall disclose the annual report from the
previous year before
April 30 each year. If it cannot be disclosed due to special reason, a disclosure extension from
the supervision department shall be applied for at least 10
working days in advance