Department of Public Offering Supervision of the China Securities Regulatory Commission, Standards for Examination and Verification of Share Issues Memorandum No.17: Examination and Verification Requirements for Fund Raising of Companies Initially Offering Shares to the Public

Promulgated: May 11 2004

Main contents: The Memorandum states that the amount of funds raised by companies through initial offering of shares to the public shall not exceed twice the unaudited net asset value, one year prior to the submission of its application documents to the Share Issuance Examination Committee for voting, less roll-over undistributed profits individually enjoyed by shareholders prior to the offering (Item One). Companies distributing dividends to shareholders prior to the offering shall perform the relevant formalities prior to the offering and complete the amendments on registration for industry and commerce (Item Two). The prospectus shall provide a special notice on the amount of roll-over undistributed profits individually enjoyed by shareholders prior to the offering, and disclose the distribution plan of such profits (Item Three).