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1. The enterprise drafts and submits an EA plan to a staff meeting, and representatives from both sides sign the final EA plan;
2. The enterprise files the EA plan with the local HR and social security authorities. Centrally controlled enterprises must also submit the plan to the Ministry of Human Resources and Social Security. Replies are given within 15 workdays;
3. The enterprise selects and signs a trustee contract with the trustee, who in turn selects and enters management contacts with the account manager, investment manager, and custodian;
4. The trustee files the trustee contract EA plan with the local HR and social security authorities. A trustor for a centrally-controlled enterprise must also submit the plan to the Ministry of Human Resources and Social Security. Replies are given within 15 workdays. An EA registration number is sent to approved applicants;
5. As stipulated in the trustee and the custodian contract, the custodian opens two escrow accounts, one for EA fiduciary property and one for EA investments. The investment manager opens an account with the custodian bank for investment management risk control;
6. After the enterprise registers the EA and pays the first contribution into the fund account, the EA fund becomes operational.

Filing Procedures for EA Plans and Fund Management Contracts

I. EA Plans

1. In accordance with the Trial Measures for Enterprise Annuity, Measures on Managing Enterprise Annuity Funds, and relevant government regulations, the enterprise drafts an EA plan for filing after the plan is agreed with employees and signed by authorized representatives of both sides.

2. The enterprise files the EA plan the local HR and social security authorities at county level or above.

A centrally-controlled enterprise files its EA plan with the Ministry of Human Resources and Social Security, with copies submitted to the local HR and social security authorities where its subsidiaries are located. Subsidiaries file their own EA plans with the local HR and social security authorities at county level or above.

3. Documents Required for Filing an EA Plan

1) Application of XX Company for Filing the EA Plan
2) Six copies of the EA plan including one original.
3) Resolution on Adopting the Draft EA Plan through Negotiation with Employees
4) Important Clauses of the EA Plan; and
5) Certificate of Payment of Basic Endowment Insurance for the Last Two Years

4. EA Plan Submission and Review

1) The enterprise files the EA plan with the local HR and social security authority within 10 days of the plan being signed by authorized representatives of the enterprise and employees.
2) The local HR and social security authority sends a Response to the EA Plan Filing Application from XXX Company to the enterprise within 15 days of receiving the EA plan.
3) The enterprise is required to re-file a revised EA plan within 10 days of making the revisions.

II. Fund Management Contracts

1. The enterprise (as the trustor) signs a trustee contract with the trustee and fund management contracts with the account manager, custodian, and investment manager. The trustor files these contracts with the local HR and social security authority. If the trustee serves concurrently as the account and investment manager, the trustee contract can cover terms and conditions relating to fund management.

2. If the trustor is a centrally-controlled enterprise, the trustee files the contracts with the Ministry of Human Resources and Social Security, with copies submitted to the HR and social security authorities in that cities with independent planning power or provinces where its subsidiaries are located.
If the trustor is another type of enterprise, including centrally-controlled enterprises, the trustee submits these contracts to the HR and social security authorities of the cities with independent planning power or the provinces where their EA plans are registered.

3. Documents Required for Filing an EA Plan Fund Management Contract
1) Application of XX Company for Filing the EA Fund Management Contract
2) Contracts of XX Company for EA Plan Trustee and Fund Management
3) Response to the Application of XX Company for EA Plan Filing issued by the local HR and social security authority
4) Copies of the qualification certificates of the trustee, account manager, custodian, and investment; articles of association and members of the EA plan board, and their resumes

4. Submission and Review of EA Plan Fund Management Contracts
1) The trustee files the EA fund management contract with the local HR and social security authority within 10 days of signing the contract.
2) The local HR and social security authority sends a Confirmation of the EA Plan of XXX Company to the trustee within 15 days of receiving the EA fund management contract, and assigns a registration number to the plan. The registration number contains 12 digits. The first six digits represent the code of the administrative region where the enterprise is located, as defined in the GB/T 2260-1999 rules on regional codes. The last six digits denote the filling serial number assigned by the provincial HR and social security authority.
3) The trustee is required to re-file the revised EA fund management contract within 15 days of making the revisions.

Procedure for setting up a Jinfu Plan

1.  Sign the Jinfu Plan Service Contract;
2.  Formulate a solution;
3.  Open a capital account;
4.  Select investment products;
5.  Pay the first installment into the account;
6.  come into operation.

Note:

All the contents stated above are for your reference only. Please consult the local branch of China Merchants Bank for further information. China Merchants Bank reserves the ultimate right of interpretation for the contents in this page.