Each Financing Guarantee Agency:

Refer to financial guarantee business regulatory authority inter-ministerial conference “On Financing Guarantee Agency’s Illegal and Imprudent Operation Risks Warning Letter "(Finance guarantee document No. [2011] 1), recently, a prefectural-level financing guarantee company of a province, due to its imprudent operation on business development and capital use, has had compensation risk caused by amount of bad guarantee loans, hundreds of millions of short-term bridging loans are overdue and can not be recovered. The bank has stopped any new business cooperation with this company. Joint has announced this risk to provincial regulatory authorities and pointed out that, once the risk is triggered, it may easily lead to a regional or systematic financial risk. For regulating the financing guarantee agencies’ business activities, preventing our province financial guarantee industry risk, and effectively maintaining normal economic and financial order, hereby, make the following risk warning to each municipal finance office (commissions, bureaus):

Firstly, to establish prudent operation concept, to strengthen the compliance operation and risk management, prudently use of capital in compliance to law to prevent the risk, and make sure no mobility risk happened.

Secondly, once guarantee fraud has occurred, and its amount has reached more than 5% of the net assets of the guarantee compensatory or investment losses, as well as directors, supervisors, senior management involving in strict major illegal events, need to immediately take emergency measures and report to the local regulatory departments.

Thirdly, prohibit the behaviors of false investment, capital flight, illegal fund-raising or deposits, and illegal loans. Once found, they will be severely punished.

Notice is hereby given.

June 30, 2011

Cc: Liaoning Banking Regulatory Bureau, Dalian Banking Regulatory Bureau