(Act No. 311 of the People's Government Order No. 311 of 11 January 2013)

Chapter I General

Article 1, in order to improve the enterprise State asset monitoring system, protect corporate asset security, achieve value added to the corporate State asset insurance, develop this approach in line with the provisions of relevant laws, regulations, such as the People's Republic of China Enterprise Assets Act, the People's Republic of China Companies Act, the Business State Asset Regulatory Regulation.

Article 2 oversees the management of enterprise State assets in this province and applies this approach.

The enterprise State assets referred to in this approach refer to the rights created by the Government of the above-mentioned people at the provincial level for various forms of financial contributions, including State-owned, controlled and participating enterprises.

The State-funded enterprises referred to in this approach refer to the State-owned enterprises funded by the Government of the above-mentioned province, the State-owned company, the National Capital Control Unit and the National Capital Participation Unit.

Article 3. State assets of the enterprise are governed by sub-groups of the population at the district level, separate administrative entrepreneurship, social public management functions from State-owned asset-funded functions, separation of ownership and the principle of non-intervention in the management of enterprise ownership by law.

Article IV. Governments of more than communes should strengthen the leadership of the management of enterprise State assets, establish and improve systems such as the enterprise-owned asset management and oversight system, the enterprise-State asset base management system, the value-added appraisal of corporate assets and accountability, and innovate the management of State assets, implement the value-added responsibility of the enterprise State's asset insurance and improve the overall quality of the State's economy.

Article 5

The authorities, such as financial, inspection, audit, etc., at the district level, are responsible for overseeing the management of enterprise-owned assets.

More than 6 people at the district level should take measures to advance the concentration of State capital in key industries and key areas, to optimize State economic downturns and structures, to promote technological innovation and progress, and to increase the control and impact of national economies.

Article 7. The Government of the people at the district level should establish a national capital operating budget system to manage State capital revenues and their expenditures.

The State capital operation budget should be based on a separate annual budget to incorporate the Government budget of the people at this level. State capital operating budget expenditures are not reflected in the current budget income arrangement.

Article 8. Any unit and individual have the right to prosecute and prosecute acts that undermine the legitimate rights and interests of the State.

Chapter II

Article 9. The State asset monitoring authority represents the Government of the people at this level and performs the responsibilities of the State-funded enterprise.

In accordance with the needs of the above-mentioned people's governments, other agencies, including sectors, are authorized to carry out their responsibilities on behalf of the Government of the people at this level.

Agencies that fulfil the responsibilities of the Fund are published by the Government of the people at this level and receive social oversight.

Article 10 institutions that perform the responsibilities of the treasury may entrust some of the responsibilities of the treasury to the relevant sectors, agencies.

A written agreement should be signed to expressly entrust matters, deadlines and their respective rights, obligations, responsibilities and reporting to the Government of the people at this level.

Article 11. Agencies that perform the responsibilities of the financier represent the Government of the people at this level, with financial rights such as asset benefits, participation in major decision-making and choice-holders, in accordance with the law.

Agencies performing the responsibilities of the treasury should preserve the dominant position and operational ownership of the State-funded enterprises and, in addition to the performance of their responsibilities under the law, may not interfere with business activities and shall not use the shareholders' position to abuse rights and to undermine the legitimate rights and interests of State-owned and medium-sized shareholders.

Article 12. Agencies that perform the responsibilities of the financiers shall be established by law or involved in the development of amendments to the statutes of the State-funded enterprise and shall submit the relevant chapter to the Government of the people at this level.

Article 13 agencies that perform the responsibilities of the financiers should strengthen the supervision of property transfers, investments, liabilities, guarantees, donations, etc. of State-owned enterprises, State-owned companies and State capital control units, and establish sound systems to prevent loss of State assets.

More than the people at the district level, institutions that perform the responsibilities of the treasury and the sectors, agencies that are entrusted to perform some of the responsibilities of the financiers, shall not designate the State to provide guarantees or donation outside the country.

Article 14. Agencies that perform the responsibilities of the treasury shall strengthen the supervision of the remuneration of employees of the State-owned enterprises, the State-owned company and the State Capital Control Unit and regulate the distribution of income.

Article 15. The executive normative documents developed by institutions that perform the responsibilities of the treasury shall be reported to the Government of the people at this level within 30 days of the date of publication of the document.

Article 16 agencies that perform the responsibilities of the Fund shall report annually to the Government of the people at this level on the performance of the responsibilities of the fund and receive the supervision and appraisal of the Government of the people at this level.

Chapter III

Article 17 State-funded enterprises are identified and published by all levels of people's governments and are reported to the Government of the people at the highest level and its state-owned asset monitoring authority.

Article 18

(i) The right to hold, use, benefit and dispose of their movable, immovable property under the law;

(ii) Business ownership;

(iii) The rights of financial contributors such as the proceeds of assets, participation in major decision-making and selection of managers, in accordance with the law;

(iv) Other rights to be enjoyed by law.

Article 19

(i) Be governed by law and subject to the supervision of the relevant sectors, institutions;

(ii) Establish a sound internal management system for enterprises;

(iii) Social responsibility;

(iv) Other obligations to be assumed by law.

Article 20 states-owned enterprises, State-owned companies and State capital control units should develop a comprehensive budget management system that prepares budget reports for all business activities such as the annual production of enterprises, investment, capital operation, and implement the full process control.

Article 21 Matters relating to State-owned enterprises, State-owned companies and State capital control units should be addressed collectively, in accordance with the law, and documented.

The major matters set out in the preceding paragraph are determined in accordance with the provisions of the State, the people at the current level and the institutions that perform the responsibilities of the Funding.

Article 22 State-owned enterprises, State-owned companies and State capital control units shall, in accordance with the relevant provisions of the State and the province, be open to democratic management and business affairs through, inter alia, the General Assembly of Employers, the right to know-how, participation, expression and oversight, the defence of the legitimate rights of workers.

Corporate trade union organizations have been established to implement the relevant provisions of the Trade Union Act of the People's Republic of China and the Chinese Trade Union Constitution.

Article 23: State-owned enterprises, State-owned companies and State capital control units should establish enterprise claims management systems and annual debt risk assessment reporting systems to strengthen corporate claims, debt management.

Article 24 provides that State-owned enterprises, State-owned companies and State capital control units should establish a security tracking monitoring early warning system and donation reporting system to strengthen security and donation management.

Article 25 State-owned enterprises, State-owned companies and State capital control units should establish an enterprise annual investment plan analysis system that organizes dynamic monitoring activities such as evaluation of investment effectiveness and post-assessments of major investment projects to enhance investment management. In accordance with the relevant provisions of the State and the province, the Government of the people at this level or the relevant departments, institutions shall be governed by their provisions.

Investments by State-owned enterprises, State-owned companies and State capital control units outside the China continent should be in line with the following provisions:

(i) Investment projects should be validated in accordance with national industrial policies, national and local (zone) laws and relevant international provisions.

(ii) Business managers in offshore enterprises should be rotated on a regular basis and should not be able to have other investments and positions in the country (zone).

(iii) Industrial property rights may not be held outside the country; it is true that legal proceedings in which the law in the country (zone) is required should be properly certified.

(iv) Other provisions for investment outside the country and provinces.

Article 26 restructured enterprises, associated transactions and State asset transfers are implemented in accordance with the relevant laws, regulations and regulations, such as the People's Republic of China Enterprise Assets Act.

Article 27, State-owned enterprises, State-owned companies, in the context of enterprise rejuvenation, asset restructuring, crediting for nuclear resources and the adverse assets generated by the production process, shall be sold publicly by the competent trading body or transferred to the State's company for the disposal of the State's adverse asset management company, and shall be submitted in advance to the Government of the current people or to the institutions authorized to carry out the responsibilities of the financiers. The determination criteria for adverse assets are implemented in accordance with the relevant provisions of the State and the province.

Article twenty-eighth State-owned enterprises, State-owned companies and State capital control units should establish an internal audit body to monitor and evaluate the authenticity, legitimacy and effectiveness of enterprise economic activities and internal controls.

Article 29 provides that State-owned enterprises, State-owned companies and State capital control units should establish a system of corporate legal advisers to ensure that corporate legal advisers operate in accordance with the law.

The corporate legal advisers are responsible for dealing with the legal affairs of business management and decision-making and have the right to make observations and recommendations on actions that undermine the legitimate rights and interests of enterprises.

Chapter IV

Article 31 Elects and conducts the sole-source enterprise of the State, the sole-source company, the management of the State capital control unit, and institutions that perform the responsibilities of the treasury shall be governed by the relevant laws, administrative regulations and enterprise charters, such as the People's Republic of China Enterprise Assets Act, the People's Republic of China Companies Act. In accordance with the relevant provisions, the personnel management is responsible for selecting and valuating the enterprise manager of the State.

The management of the enterprise of the National Capital Participation Unit shall be implemented in accordance with the statute of the enterprise.

The management of the enterprise, as described in this approach, refers to directors, heads of State-funded enterprises and senior management.

Article 31 governs the sole-source enterprise of the State, the sole-source company and the State capital control unit, and should develop and improve the medium- and long-term incentives for the management, in accordance with the principles of incentives and combinations, effectiveness and development, efficiency and equity, rights and responsibility.

Article 32 governs the sole-source enterprise, the State-owned company and the State Capital Control Unit company, which has a faithful obligation and hard-court obligation to the enterprise, and should be in compliance with the enterprise charter stipulating that there shall be no use of the authority to receive bribes or other illegal incomes and inappropriate interests, nor shall it be intrusive, diverted from the assets of the enterprise, not to go beyond its mandate or to determine the major matters of the enterprise, without any other violation of the rights and interests of the owner of the enterprise's assets.

Article 33 does not perform the functions of the treasury or the personnel management concerned agree that a State-owned enterprise, a director of the State-owned company and a senior management may not be part of any other enterprise, and the director of the State-owned company shall not act as a manager.

Without the concurrence of the shareholders' conference, the director of the National Capital Control Unit, the National Capital Participation Unit, the senior management shall not be present in any other business and the director of the National Capital Control Unit shall not serve as the manager.

Directors, senior managers shall not be appointed as heads of office.

Article 34 provides for the introduction of a national property rights reporting system by a State-funded enterprise. The Chief Representative shall report on changes in corporate property and personal functions, either on a regular or dedicated basis, to the agencies that perform the responsibilities of the fundor.

The Principal representative of the State's property referred to in the previous paragraph refers to the director of the State-owned enterprise, the State-owned company and the State Capital Control Unit company, which is not the manager of the Board, and to persons designated by the Government and the relevant departments, agencies.

In the relevant sectors, institutions, such as the Government of the communes, the agencies and personnel management responsible for the implementation of the responsibilities of the treasury, should take measures to progressively implement the National Funding System of Directors, Heads of State and Professional Managers, and to improve the governance structure of national corporate finances.

Chapter V

Article 36 State asset monitoring authorities should guide the management of property rights, property registration, asset statistics, in accordance with national, provincial and local government provisions.

Article 37 State asset monitoring authorities should carry out dynamic monitoring of the distribution and change of corporate assets in the country and establish a mechanism for the management of information-sharing on enterprise asset dynamics in such sectors as finance.

Article 338 The State asset monitoring authority should conduct statistical analysis of the financial situation and the operation of national-funded enterprises and report statistical analysis to the current people's Government on a regular basis.

Article 39 provides that State-owned enterprises, State-owned companies and State capital control units have one of the following conditions, and the asset assessment shall be carried out:

(i) Business mergers, separations and liquidation;

(ii) Business conversion;

(iii) The transfer of corporate State assets or changes in the proportion of the shareholders' unit of the enterprise (other than the municipality);

(iv) The transfer of property by the enterprise or the enterprise rental assets (except the licence to operate the asset);

(v) Foreign investment in non-monetary property or debt repayment;

(vi) accept funds or debts from other units for non-monetary property;

(vii) The acquisition of assets of other units;

(viii) Other circumstances in which an asset assessment should be carried out under national, provincial and enterprise charters.

Non-reimbursable transfers between State Unit rights may be exempted from assessment.

Article 40 brokering in the financial audit and asset assessment operations of State-owned enterprises, State-owned companies and State capital control units shall be carried out in accordance with the law, objective and impartial manner and shall have the following conditions:

(i) The quality of the institution provided for by law, administrative regulations;

(ii) The institution has been established for a period of three years and has no criminal record over the past three years;

(iii) Other conditions established by States and provinces.

The financial audit and asset assessment operations of State-owned enterprises, State-owned companies and State Capital Control Unit companies may not be transferred to an intermediary agency.

Article 40 provides for conciliation between the State-funded enterprises, the State-funded enterprises and other enterprises in disputes such as property rights, contracts, etc.

Chapter VI State asset monitoring

Article 42

Article 43

The Government of the above-mentioned people at the district level and its national asset monitoring authority should guide and monitor the management of State-owned asset monitoring in the lower-level government.

Article 44 governs the financial payments of State-owned enterprises, State-owned companies and State capital control units, and conducts economic responsibility audits for the main heads.

More than forty-five people at the district level should regularly disclose the state of corporate State assets, the performance of the responsibilities of the financier and the management of enterprise State assets, with social public oversight.

Chapter VII Legal responsibility

Article 46, in violation of the provisions of this approach, provides for legal responsibilities, such as the National Assets Act of the People's Republic of China, the Civil People's Republic of China, the Companies Act of the People's Republic of China, the Provisional Regulations on the Regulatory of Enterprise Assets.

Article 47, the agency responsible for the performance of the responsibilities of the treasury, the State asset monitoring authority and other related oversight management, institutions and their staff are one of the following acts by the authority to dispose of the law by the competent and other direct responsibilities:

(i) Contrary to State-funded business activities;

(ii) The cost of the contribution of the enterprise to the State in violation of the law or the property to which it is intended;

(iii) Disclosure of unpublic information from State-funded enterprises;

(iv) The use of shareholders in abuse of rights, which undermines the legitimate rights of State-owned companies and small shareholders;

(v) There are other acts of negligence, abuse of authority, provocative fraud.

Article forty-eight State-funded enterprise managers misuse their duties and play a role, causing the loss of corporate State assets to be liable under the law; they belong to national staff and are disposed of by law by the competent authority.

Chapter VIII

Article 49 oversees the management of commercial and other operating State assets other than their sole-source, controlled and participating in the enterprise of the Unit, which is implemented by sector or agency established by the Government of the more than the district.

The Government of the communes (at the streets' offices) oversees the management of State-owned assets generated by various forms of corporate funding, which is implemented by the commune government in the light of this approach.

The supervision of State assets in cultural, financial and corporate enterprises is also provided by law, administrative regulations.

The State also provides for the supervision of the State's assets in the Upperi City.

Article 50 is implemented effective 1 March 2013.