(Provisional Translation)
February 22, 2008
Financial Services Agency

FSA establishes framework for regulatory cooperation with China
related to QDII (''Qualified Domestic Institutional Investors'') system

1. Today, the Financial Services Agency of Japan (FSA) and the China Banking Regulatory Commission (CBRC) exchanged letters concerning the establishment of the framework for regulatory cooperation related to the QDII (''Qualified Domestic Institutional Investors'') system (and reached an agreement thereon).

2. This framework enables Chinese commercial banks to conduct wealth management business in Japan and contributes to the vitalization and strengthening of the competitiveness of Japan's financial and capital markets, as referred to in ''The Plan for Strengthening the Competitiveness of Japan's Financial and Capital Markets'' released at the end of 2007.
3. Based on this plan, The FSA held its first periodic meetings with the Chinese supervisory authorities and others in January, with the intention of enhancing bilateral cooperation with authorities in fast growing Asian markets.
   
   It is becoming increasingly important for both Japanese and Chinese regulators to strengthen their relationships with respect to financial services. The establishment of this framework exemplifies concrete progress being made in enhancing bilateral cooperation.