II. Simplify the Access Control of Institutions to the PFTZ

6. (Applicable Institutions) Any establishment, alternation or termination of subsidiaries including sub-branches, sub-branch offices and savings offices of Chinese-funded national commercial banks (excluding the Postal Savings Bank of China), Shanghai-based banks, foreign-funded legal-person banks and foreign banks are not required to be approved by the CBRC Shanghai Bureau in advance but shall be reported afterwards. However, this provision is not applied to banks that have not established branches or higher-level offices in the PFTZ.

These Detailed Rules are also applicable to institutions of banks based in Hong Kong, Macau and Taiwan that are established in the PFTZ.

7. (Reporting Content) Content to be reported afterwards includes establishment, alteration and termination of institutions, in which alteration refers to relocation, change of name, upgrading or downgrading.

8. (Reporting Entity) The higher-level offices which have a direct reporting relationship with the institutions established in the PFTZ that have undergone establishment, alteration or termination shall report to the CBRC Shanghai Bureau in accordance with the provisions in these Detailed Rules.

9. (Information to Be Reported) In accordance with the administrative permission or reporting requirements on establishment, alteration or termination of the offices of Chinese domestic and foreign banks, the banks shall set up internal management system for self-evaluation and verification in which the standards and requirements are clarified and duties and responsibilities are defined to ensure that the newly-established or altered offices meet the requirement of compliance and prudence and that the termination of institutions are completed and in compliance with regulations. The following information shall be submitted to the CBRC Shanghai Bureau:

(1) For establishment

(i) Report on establishment, including the amount of funds allocated to this new institution for operation, its business address and the names of its main officers;

(ii) Document of approval issued by its head office or higher-level office or board resolution;

(iii) Asset verification report;

(iv) Verification certificates issued by public security authority and fire department;

(v) A List of internal management systems;

(vi) Self-evaluation and verification management system (to be submitted only when the system is established and amended and re-submission is not needed. Same below) and corresponding verification certificate in which each evaluation result bears the seal of appropriate verification department and signature of its officer;

(vii) A feasibility study report;