" The Regulations of the People's Republic of China Governing the Renminbi " was passed on December 12, 1999 by the Twenty-forth Standing Meeting of the State Council. They are hereby promulgated and shall come into force on May 1, 2000.

Zhu Rongji
Premier
February 3, 2000

Translated by the People's Bank of China

Chapter I
General Provisions

Article 1 To strengthen the governing of the Renminbi; to safeguard the credibility of the Renminbi; and to stabilize financial order, these regulations have been formulated in accordance with " the Law of the People's Republic of China on the People's Bank of China ".

Article 2 The Renminbi as stated in these regulations indicates the currency, including paper money and coins, issued by the People's Bank of China according to law.
All activities pertaining to the design, printing, issuance, circulation and withdrawal of the Renminbi shall abide by these regulations.

Article 3 The legal tender of the People's Republic of China is the Rrenminbi. The Renminbi shall be used to defray all public and private liabilities within the People's Republic of China. No organization or individual may refuse to accept it.

Article 4 The unit of the Renminbi is the yuan and its fractional currency is the jiao and fen. One yuan is equivalent to 10 jiao and 1 jiao is equivalent to 10 fen.
The Renminbi shall be paid out according to its denominations.

Article 5 The People's Bank of China is the state institution in charge of governing the Renminbi. It is responsible for organizing the implementation of these regulations.

Article 6 All organizations and individuals shall take good care of the Renminbi. It is forbidden to damage the Renminbi and to hinder its circulation.

Chapter II
Design and Printing

Article 7 The People's Bank of China shall organize the design of new series of Renminbi and shall submit the designs to the State Council for approval.

Article 8 Renminbi shall be printed by special enterprises appointed by the People's Bank of China.

Article 9 The enterprises responsible for printing Renminbi shall do the printing according to the quality standards and printing plans laid down by the People's Bank of China.

Article 10 The enterprise responsible for printing Renminbi shall hand over under guard all up-to-standard Renminbi products to the Renminbi Issue Vault of the People's Bank of china. The enterprise shall destroy in their entirety those Renminbi products that are not up to standard in accordance with the stipulations of the People's Bank of China.

Article 11 The original plates and original molds used in printing Renminbi shall after use be sealed up for safekeeping by the People's Bank of China.

Article 12 The special material, technology production process, and specialized equipment and other important matters pertaining to the printing of Renminbi are classified as state secrets. The enterprise engaged in the printing of Renminbi and related personnel shall keep these state secrets. Without the approval of the People's Bank of China, no organization or individual shall divulge to outsiders the above information.

Article 13 Without the approval of the People's Bank of China, no organization or individual shall engage in the research, copy, import, sale, purchase and use of the material, techniques, technology and craft as well as special equipment used to produce Renminbi.

Article 14 The specimen of Renminbi are standard samples used to examine the quality of printed Renminbi and to authenticate it. They are printed by the enterprise responsible for printing Renminbi according to the stipulations laid down by the People's Bank of China. The Renminbi sample shall bear the printed words " the specimen".

ChapterIII
Issuance and Withdrawal

Article 15 The Renminbi shall be solely issued by the People's Bank of China.

Article 16 The People's Bank of China shall gain the approval of the state Council before issuing new currency.
The People's Bank of China shall make public announcement of the time of issuance, denominations, patterns, designs, specifications, major hue, major characteristics, etc, of a new Renminbi issue.
The People's Bank of China may not disburse the new series of Renminbi to financial institutions before the issuance of such banknotes is formally announced to the public.

Article 17 The People's Bank of China shall decide for the purpose of anti-counterfeiting or other purpose, whether the material, technology and production process employed in printing Renminbi need to be changed.
The People's Bank of China shall make public announcement of the time of issuance, deniminations and major characteristics of the bank notes with the up grad.
The People's Bank of China may not disburse the Renminbi with changed impressions to financial institutions before the issuance of such banknotes are formally announced to the public.

Article 18 The People's Bank of China may issue commemorative currencies according to needs. The commemorative currencies are a sort of Renminbi with special themes and a limitation of issuing quantity. They include general commemorative currencies and precious metal commemorative currencies.

Article 19 The People's Bank of China shall determine the theme, denomination, design, material and quality, style, specifications, and volume of and time of issue of the commemorative currencies. However, themes involving major political or historical subjects shall be submitted to the State Council for approval.
The People's Bank of China shall announce to the public, the theme, denomination, design, material and quality, style, specifications, and volume of and time of issue of the commemorative currencies.
The People's Bank of China may not disburse the commemorative currencies to the financial institutions before the issuance of such banknotes or coins are formally announced to the public.

Article 20 The People's Bank of China shall establish a branch vault and its branches shall establish a branch vault for the safekeeping of the Renminbi Issue Fund. The directors of the various vaults at different levels shall be the presidents of the People's Bank of China of equivalent levels.
The Renminbi Issue Fund is the Renminbi which is not in circulation and is kept by the Renminbi Issue Vault of the People's Bank of China.
The allocation of the Renminbi Issue Fund shall be conducted according to the stipulations laid down by the People's Bank of China. No organization or individual may draw on the Renminbi Issue Fund in violation of the abovementioned stipulations. Neither may they interfere with nor obstruct the allocation of the Renminbi Issue Fund.

Article 21 Withdrawing from circulation the specified series of Renminbi shall be approved by the State Council and publicly announced by the People's Bank of China.
Financial institutions handling the deposit and withdrawal of Renminbi, according to the stipulations laid down by the People's Bank of China, shall take in and exchange the Renminbi that have been withdrawn from circulation and hand them over to the local branch of People's Bank of China for safekeeping.
The People's Bank of China may not disburse the financial instiutions those Renminbi withdrawn from circulation. Financial institutions may not pay out the Renminbi withdrawn from circulation.

Article 22 Financial institutions handling the deposit and withdrawl of Renminbi shall according to the stipulations laid down by the People's Bank of China exchange free of charge for the public Renminbi that have parts missing or have been dirtied and damaged; and shall pick out the Renminbi that have parts missing or have been dirtied and damaged. These bank notes shall be handed over to the local People's Bank of China for safekeeping. The People's Bank of China may not disburse to financial institutions Renminbi that have parts missing or have been dirtied and damaged; and financial institution may not pay out Renminbi that have parts missing or have been dirtied and damaged.

Article 23 The People's Bank of China shall be responsible for collecting and destroying Renminbi that have been withdrawn from circulation and have parts missing or have been dirtied and damaged. Detailed plans shall be drawn up by the People's Bank of China.

Chapter IV
Circulation and Safeguards

Article 24 Financial institutions handling the deposit and withdrawl of Renminbi shall according to the priciple of reasonable needs conduct swaps of the various kinds of Renminbi notes.

Article 25 Illegal buying and selling of circulating Renminbi is forbidden. The buying and selling of commemorative currency shall adhere to related stipulations laid down by the People's Bank of China.

Article 26 Mounting and decorating circulating Renminbi and circulating Renminbi for sales shall gain the approval of the People's Bank of China.

Article 27 The following acts aimed at impairing Renminbi are forbidden:
1. Intentionally damaged the Renminbi;
2. Make, copy and buy and sell Renminbi designs and patterns;
3. Make use of Renminbi designs and patterns on propaganda items, publications and other commercial articles without the approval of the People's Bank of China;
4. Other acts stipulated by the People's Bank of China as acts impairing the Renminbi.
The abovementioned Renminbi designs and patterns include those that are enlarged, reduced in size and of the same size.

Article 28 Circulation of sample Renminbi is forbidden. The People's Bank of China shall lay down regulations governing Renminbi samples.

Article 29 No organization or individual may print and sell ersatz vouchers and certificates and circulate them on the market as substitutes of the Renminbi.

Article 30 A quota system shall be in place to govern the amount of Renminbi that may be taken out or brought in by Chinese citizens leaving and returning to China and by foreigners entering China. Quota limits shall be stipulated by the People's Bank of China.

Article 31 Counterfeiting or altering Renminbi is forbidden. Smuggling, transporting, possessing or using counterfeit or altered Renminbi is forbidden.

Article 32 Those organizations and individuals that have in their possession counterfeit or altered Renminbi shall hand them over in a timely fashion to the People's Bank of China, Public security organs or financial institutions handling the deposit and withdrawl of Renminbi. Organizations or individual shall immediately report to public security organs when they discover other
holding counterfeit or altered Renminbi.

Article 33 The People's Bank of China and the public security organs upon discovery of counterfeit or altered Renminbi shall confiscate them, stamp them with the words " counterfeit note " and compile registration. Should a possessor take exception to the authenticity of the Renminbi confiscated by a public security organ, the possessor may appeal to the People's Bank of China for appraisal. The public security organs shall send under guard the counterfeit or altered Renminbi they confiscated to the local People's Bank of China.

Article 34 Financial institutions handling the deposit and withdrawl of Renminbi shall immediately report to public security organs when they discover large amounts of counterfeit or altered Renminbi; or clues of new series of counterfeit or altered Renminbi; or the production and selling of counterfeit or altered Renminbi. If the amount is rather limited, two or more personnel of a financial instution shall take over the counterfeit or altered Renminbi in the presence of the holder; stamp each bank note with the words " counterfeit note "; compile registration; provide the holder with a takeover certificate solely printed by
the People's Bank of China; and inform the holder that he / she may apply to the People's Bank of China or the business section of a solely state-owned and financial commercial bank authorized by the People's Bank of China for appraisal. Detailed ways of taking over and appraising counterfeit or altered Renminbi shall be laid down by the People's Bank of China. Financial institutions handling the deposit and withdrawl of Renminbi shall hand over under guard the counterfeit and altered Renminbi bank notes to the local People's Bank of China.

Article 35 The People's Bank of China and the business sections of solely state-owned and financed commercial banks authorized by the People's Bank of China shall provide free service of appraising the authenticity of Renminbi.
Those Renminbi stamped with the words " counterfeit note " but determined to be authentic ones shall be exchanged at par value by the People's Bank of China or the business sections of solely state-owned and financed commercial banks authorized by the People's Bank of China. Those bank notes that are determined to be counterfeit ones shall be confiscated by
the People's Bank of China or the business sections of solely state-owned and financed commercial banks authorized by the People's Bank of China. The business sections of solely state-owned and financed commercial banks authorized by the People's Bank of China shall hand over under guard the counterfeit or altered Renminbi to the local People's Bank of China.

Article 36 Financial institutions handling the deposit and withdrawl of Renminbi shall adopt effective measures to guard against the disbursement of counterfeit and altered Renminbi. Financial institutions handling the deposit and withdrawl of Renminbi shall provide at their business locations free service for the appraisal of the authenticity of Renminbi.

Article 37 Counterfeit and altered Renminbi bank notes shall be destroyed solely by the People's Bank of China.

Article 38 Anti-bogus Renminbi appraisal instruments shall be produced according to the standards laid down by the state.
The state standard of the anti-bogus Renminbi appraisal instruments shall be laid down by the People's Bank of China in conjunction with the related departments. The bank shall assist in organizing its implememtation.

Article 39 Renminbi in any one of the following conditions may not be circulated:
1. Those that have parts missing and / or dirted and damaged; and
2. Those that have been withdrawn from circulation.

Chapter V
penalties

Article 40 The enterprise printing Renminbi and related personnel responsible for any one of the following conditions shall be given a disciplinary warning; shall have their illegal gains confiscated; and shall be fined over twice and under 3 times the amount of their illegal gains by the People's Bank of China. Those that have not acquired illegal gains shall be ordered to pay a fine of over RMB 10000 yuan and under RMB 100000 yuan by the People's Bank of China. Disciplinary measures according to law shall be taken by the People's Bank of China against those in charge and are directly responsible and other personnel that bear direct responsibility.
1. Failed to print Renminbi according to the quality standard and printing plan laid down by the People's Bank of China;
2. Failed to hand over under guard the entire amount of up-to-standard Renminbi products to the Renminbi Issue Vault of the People's Bank of China;
3. Failed to comply by the stipulations of the People's Bank of China and destroy in their entirely the Renminbi products that are not up to standard;
4. Without the approval of the People's Bank of China provide outsiders with state secrets such as the special material, technology, craft or specialized equipment used in the printing of Renminbi.

Article 41 Those violating Article 13 of these regulations shall be given disciplinary warnings; shall have their illegal gains and unlawful money and goods confiscated; and shall be fined over twice and under 3 times the amount of their illegal gains by the industry and commerce administrations and other administrative and law enforcement organs. Those that have not acquired illegal gains shall pay a fine of over RMB 20000 yuan and under RMB 200000 yuan.

Article 42 Financial institutions handling the deposit and withdrawl of Renminbi violating the second and third paragraph of Article 21 and Article 22 shall be given a disciplinary warning and ordered to pay a fine of over RMB 1000 yuan and under RMB 5000 yuan by the People's Bank of China. Disciplinary measures according to law shall be taken by the People's Bank of China against those in charge and directly responsible and other personnel that bear direct responsibility.

Article 43 Those intentionally damaging the Renminbi shall be warned by public security organs and fined less than RMB 10000 yuan.

Article 44 Those violating Article 25, Article 26 and paragraph 1, items 2 and 4 of Article 27 of these regulations shall be given disciplinary warnings; shall have their illegal gains and unlawful money and goods confiscated; and shall be fined over twice and under 3 times the amount of their illegal gains by industry and commerce administrations and other administrative and law enforcement organs. Those that have not acquired illegal gains shall pay a fine of over RMB 1000 yuan and under RMB 50000 yuan. The industry and commerce administrations and other administrative and law enforcement organs shall destroy the Renminbi designs and patterns that were unlawful used.

Articel 45 Financial institutions handling the deposit and withdrawl of Renminbi and the business section of solely state-owned and financed commercial banks authorized by the People's Bank of China violating Articles 34,35 and 36 of these regulations shall be given a disciplinary warning and fined over RMB 1000 yuan and less than RMB 50000 yuan by the People's Bank of China against those in charge and are directly responsible and other personnel that bear direct responsibility.

Article 46 Those in charge and are directly responsible and other personnel that bear direct responsibility of the People's Bank of China, public security organs, industry and commerce administrations as well as their functionaries violating these regulations shall receive administrative punishment according to law.

Article 47 Those violating the third paragraph of Artcle 20, item 3 of the first paragraph of Articel 27, Articel 29 and Articel 31 of these regulations shall be penalized according to the stipulations of " the Law of the People's Republic of China on the People's Bank of China." Among them however, those violating Articel 31 of these regulations and whose violations constitute criminal offenses shall be investigated for their criminal responsibilities.

Chapter Vi
Supplementary Provisions

Article 48 These regulations shall come into force on May 1, 2000.