On October 28, 2013, the Ministry of Finance and the State Administration of Taxation jointly released the Circular on Continuous Implementation of Policies for Taxation on Futures Investor Security Fund (the "Circular") for implementation as of January 1, 2013 to December 31, 2014.

According to the Circular, relevant income earned by China Futures Margin Monitoring Center Co., Ltd. will not be calculated into taxable corporate income. Such income includes: income of futures security funds paid by futures exchanges at 15% of the total amount in risk reserves accounts and 3% of transaction fees, income of futures security funds paid by futures companies at 500-1,000 billionths of the amount of agency trading, income from recovery from involved responsible party according to the law, income from liquidation of bankrupt futures companies and donations.

Additionally, the Circular provides that corporate income tax shall be temporarily exempted on such income obtained by futures security fund companies as income of interests on bank deposits, income of interests on purchase of national debts and central bank bonds and bonds issued by financial institutions at the state level as well as income earned from the utilization of other funds as approved by the China Securities Regulatory Commission and the Ministry of Finance.