SAIC issued the Interim Measures for the Administration of Internet Advertising and it shall come into effect as of September 1, 2016. The purpose for this regulation is to regulate on the internet advertising activities. We found the following points.

• Paid search was considered as the internet advertisement.
• For the advertisement on the medical treatment, medicines, foods for special medical purpose (FSMP), medical devices, pesticides, veterinary medicines, dietary supplement or other special commodities or services are subject to examination by an advertising examination authority and should get the special approval.
• An Internet advertisement shall be identifiable and clearly identified as an "advertisement" so that the public can easily identify it as an advertisement.
• Paid search advertisement shall be clearly distinguished from natural search results.
• Advertisements shall be published or distributed by means of the Internet without affecting the normal use of the network by users. Advertisements published on Internet pages in the form of pop-up or other forms shall be clearly marked with a "Close" sign to ensure a "Click to Close".
• No entity and individual may induce users to click on the contents of an advertisement through deception.
• No entity and individual may attach advertisements or links to advertisements to an e-mail sent by a user without his permission.
• Internet advertisers shall be responsible for the authenticity of the contents of their advertisements.

Dongjin comments: we advise the company should have a self check on its website, weibo and wechat and eliminate the potential risks.

If you have any questions, please send the email to me.

Ms. Jojo Hu

TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021

Email: jojohu@shanghaiinvest.com