On 18 June 2008 the State-owned Assets Supervision and Administration Commission of the State Council released the Opinions on Regulating Shareholding and Investments by Staff of State-owned Enterprises (the “Draft”) for public consultation. The public input process will be closed on 5 July 2008.

The Draft suggests that staff members of a state-owned enterprise should not invest directly or indirectly in enterprises which supply fuels, raw materials, equipment, accessories, designs, constructions, repairs, sales services or intermediary services to such state-owned enterprise. Such staff members are also prohibited from investing in enterprises which engage in the same kind of business as that of the state-owned enterprise.

Mid-level managers of state-owned enterprises who have made investments in the above-mentioned enterprises before the promulgation of the Opinions should either sell their shares or resign from their job within one year after the issuance of the Opinions.

For more information, please refer to the full text of the Draft at http://www.sasac.gov.cn/n1180/n1566/n258252/n258629/4947768.html