Chapter I General Provisions Article 1 These Measures are formulated in accordance with the Banking Supervision and Administration Law of the People's Republic of China and other laws and administrative regulations in order to strengthen the supervision and management of financial subsidiaries of commercial banks (hereinafter referred to as bank financial subsidiaries), promote the safe and steady operation of bank financial subsidiaries and protect the legitimate rights and interests of investors. And Guiding Opinions on Standardizing the Asset Management Business of Financial Institutions, Measures for the Supervision and Administration of Financial Management Business of Commercial Banks, and Measures for the Administration of Financial Management Subsidiaries of Commercial Banks. Article 2 These Measures shall apply to bank subsidiaries established in People's Republic of China (PRC) according to law. Article 3 A bank wealth management subsidiary shall implement net capital management in accordance with the provisions of these Measures, and establish a net capital monitoring and replenishment mechanism according to its own business development, so as to ensure continuous compliance with the requirements of net capital supervision. Article 4 A bank's wealth management subsidiary shall, in accordance with the Measures for the Supervision and Administration of Wealth Management Business of Commercial Banks and other regulatory provisions, conduct regular stress tests to calculate the net capital adequacy level under different stress scenarios, so as to ensure the effective application of the stress test results. Article 5 The board of directors of a bank wealth management subsidiary is ultimately responsible for the company's net capital management, and is responsible for determining the net capital management objectives, approving and supervising the implementation of the net capital management plan. Article 6 The senior management of a bank wealth management subsidiary is responsible for organizing the implementation of net capital management, including formulating and implementing net capital management policies and procedures, regularly evaluating the net capital adequacy level, and reporting the net capital management to the board of directors in writing at least once every quarter. In case of major events that may affect the level of net capital adequacy, it shall make timely assessment and report to the board of directors. Article 7 Banking supervision institutions shall supervise and manage the net capital management of bank wealth management subsidiaries according to law. Chapter II Supervision Standards for Net Capital Article 8 The calculation formula of net capital is:

Net capital = net assets-∑ (balance of accounts receivable × deduction ratio)-∑ (balance of other assets × deduction ratio)-contingent liabilities adjustment items+/-other adjustment items recognized by the State Council Banking Regulatory Authority.

The bank's wealth management subsidiary shall consolidate and calculate similar assets in different accounts, and make unified adjustments according to asset attributes. Article 9 When calculating the net assets, a bank wealth management subsidiary shall make full provision for asset impairment and confirm the estimated liabilities. Contingencies that are not recognized as expected liabilities, but may still lead to the outflow of economic benefits, shall be deducted when calculating the net capital as contingent liabilities, and shall be explained in the notes to the net capital calculation table.

If a bank's wealth management subsidiary fails to make full provision for asset impairment or fully confirm its estimated liabilities, the banking regulatory institution may require it to deduct it when calculating its net capital. Article 10 The calculation formula of venture capital is:

Risk capital = ∑ (balance of various assets invested by self-owned funds × risk coefficient)+∑ (balance of various assets invested by wealth management funds × risk coefficient)+∑ (balance of other businesses × risk coefficient)

Risk coefficient refers to the weight given to all kinds of assets by the bank's wealth management subsidiaries when they carry out their own capital investment, wealth management business and other businesses in accordance with the regulations of the the State Council Banking Regulatory Authority. All kinds of assets invested by wealth management funds are basic assets determined according to the penetration principle (except public securities investment funds). Article 11 A bank wealth management subsidiary shall continuously meet the following net capital supervision standards:

(a) the net capital is not less than 500 million yuan or the equivalent in a freely convertible currency, and not less than 40% of the net assets;

(2) The net capital shall not be less than 100% of the venture capital. Article 12 A banking regulatory institution may adjust the regulatory requirements for its net capital according to the governance structure, risk control and compliance management of different banking financial subsidiaries, but it shall not be lower than the minimum regulatory standards. Chapter III Supervision and Management Article 13 A bank wealth management subsidiary shall, in accordance with the provisions, regularly submit to the banking supervision and management institution regulatory statements such as net capital calculation table, risk capital calculation table and net capital management index calculation table. In case of major issues affecting the net capital management index, it shall be reported in time.

The banking regulatory institution may, according to the regulatory needs, require the banking financial subsidiaries to increase the frequency of submitting regulatory statements. Article 14 A banking subsidiary shall be responsible for the authenticity, accuracy and completeness of the relevant regulatory statements of the Company.

The chairman and general manager (CEO and president) of the Bank's wealth management subsidiary shall sign the confirmation opinions on the company's annual net capital calculation table, risk capital calculation table and net capital management index calculation table, and ensure that the statements are true, accurate and complete, and there are no false records, misleading statements and major omissions. Article 15 A bank wealth management subsidiary shall disclose the net capital management in its annual report. The data disclosed shall be consistent with the data in the regulatory statements. Article 16 If the net capital, the ratio of net capital to net assets and the ratio of net capital to venture capital of a bank wealth management subsidiary change by more than 20% compared with the end of the last reporting period, it shall make a written report to the banking regulatory institution within 5 working days from the date of this situation, and explain the reasons.

If the net capital, the ratio of net capital to net assets, and the ratio of net capital to venture capital of a bank wealth management subsidiary do not meet the regulatory standards, it shall make a written report to the banking regulatory institution within 2 working days from the date of the occurrence of the situation, and explain the reasons.