Measures for Calculation of Business Turnover for the Reporting of Concentrations of Business Operators in the Financial Sector

Order of Mofcom, PBOC, CBRC, CSRC and CIRC [2009] No.10

(Promulgated by the Ministry of Commerce, People's Bank of China, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission on July 15 2009 and effective 30 days after the date of promulgation.)

Article 1: These Measures have been formulated pursuant to the Anti-monopoly Law and the State Council, Provisions on the Reporting Thresholds for Concentrations of Business Operators (Provisions) in order to clarify the reporting thresholds for concentrations of business operators in the financial sector.

Article 2: These Measures shall govern the calculation of business turnover for the reporting of concentrations of business operators in the financial sector, such as banking financial institutions, securities companies, futures companies, fund management companies and insurance companies.

Banking financial institutions include commercial banks, urban credit co-operatives, rural credit co-operatives and other such financial institutions that take deposits from the public as well as policy banks.

The provisions of these Measures on calculation of the business turnover of banking financial institutions shall apply to financial asset management companies, trust companies, finance companies, lease financing companies, motor vehicle finance companies and money brokerages as well as other financial institutions whose establishment has been approved by the banking regulatory authority.

Article 3: The elements making up the business turnover of banking financial institutions shall include the following:

(1) net interest income;

(2) net service fee and commission income;

(3) investment returns;

(4) returns on changes in fair value;

(5) exchange gains; and

(6) other business income.

Article 4: The elements making up the business turnover of securities companies shall include the following:

(1) net service fee and commission income (including those from brokerage business, asset management business, underwriting and sponsorship business and financial advisory business);

(2) net interest income;

(3) investment returns;

(4) exchange gains; and

(5) other business revenue.

Article 5: The elements making up the business turnover of futures companies shall include the following:

(1) net service fee and commission income; and

(2) net interest income from bank deposits.

Article 6: The elements making up the business turnover of asset management companies shall include the following:

(1) management fee income; and

(2) service fee income.

Article 7: The formula for the calculation of business turnover for the reporting of the aforementioned concentrations of business operators is as set forth below:

business turnover = (total of elements making up business turnover – business tax and surcharges) × 10%.

Article 8: The formula for the calculation of business turnover for the reporting of concentrations of insurance companies is as set forth below:

business turnover = (premium income – business tax and surcharges) × 10%;

of which, premium income = original premium income under insurance contracts + inward reinsurance premiums – reinsurance premiums ceded.

Article 9: The foregoing methods of calculating business turnover shall be used solely for the reporting of concentrations of business operators.

Article 10: These Measures shall enter into effect 30 days from the date of promulgation.