Article 1 With a view to regulating pawning activities, strengthening supervision and administration, and accelerating
the healthy development of the pawn industry, the present Measures are formulated according to the relevant legal
provisions.

Article 2 The present Measures shall be applicable to the establishment of pawnshops and the undertaking of pawning
activities within the territory of the People's Republic of China.

Article 3 The term "pawning" as mentioned in the present Measures, shall refer to the act that a pawner gives his or
her chattel or property rights to a pawnshop as a pledge for pawned item or gives his or her real estate to the pawnshop as
a mortgage for the pawned item, pays expenses at a certain rate, obtains pawn money and then, within the agreed period of
time, redeems the pawned item by repaying the pawn money and the interest thereof.
The term "pawnshop" as mentioned in the present Measures, shall refer to an enterprise juridical person that is
established according to the present Measures and specially engages in the pawning activities. And its organizational form
and its institutions shall accord with the relevant provisions of the Company Law of the People's Republic of China.

Article 4 The competent department of commerce shall conduct supervision and administration on the pawn industry. And the public security organ shall carry out public security administration on the pawn industry.

Article 5 The name of a pawnshop shall accord with the relevant provisions on the administration of enterprise name
registration with the word "pawn" indicated in the name. No other business organization and institution may include the
word "pawn" in their names, nor may they undertake pawn businesses overtly or in any disguised form.

Article 6 When undertaking business activities, a pawnshop shall abide by the laws, regulations and rules, and follow the
principles of equality, free will, good faith and mutual benefit.

Chapter II Establishment

Article 7 When applying for the establishment of a pawnshop, one shall meet the following conditions:
1. having its own articles of association conforming to the provisions of laws and regulations;
2. having the minimum registered capital as prescribed in the present Measures;
3. having a business place meeting the requirements and the facilities that are necessary for business operations;
4. having managers and appraisers who are familiar with the pawn business;
5. having two or more shareholders with legal person status, and the institutional shares as comparative controlling
shares;
6. complying with the requirements for management of public security as prescribed in Articles 9 and 10 of the present
Measures; and
7. complying with the state requirements for overall planning and reasonable arrangement of pawnshops.

Article 8 The minimum registered capital of a pawnshop shall
be RMB 3 million Yuan; for the pawnshop that undertakes the
pawn business of mortgage of real estates, the minimum
registered capital shall be RMB 5 million Yuan; for the
pawnshop that undertakes the pawn business of pledge of
property rights, the minimum registered capital shall be RMB
10 million Yuan.
The minimum registered capital of a pawnshop shall be the
monetary capital actually paid by shareholders, not including
the capital contributed in the form of in-kind, industrial
property rights, know-how and the land use right.
Article 9 A pawnshop shall establish and improve the
following safety systems:
1. the system for checking the certificates or licenses for
accepting, renewal of a pawn and redeeming any pawned item;
2. the system for checking and keeping pawned items;
3. the system for assisting in the investigation and ordering
circularly the arrest of a criminal at large;
4. the system for reporting suspicious instances; and
5. the system of equipment of security personnel.
Article 10 The building construction and business facilities
of a pawnshop shall conform to the relevant security standards
and provisions on fire control of the state. The specific
safety facilities are as follows:
1. video equipments set up in the business place (the video
materials shall be kept for at least two months);
2. safeguard facilities shall be set up at the business
counters;
3. warehouses for keeping pawned items and safe boxes
(counters or deposits), which meet the safety requirements;
4. the alarm device;
5. safeguard facilities for doors and windows; and
6. necessary fire control facilities and equipments.
Article 11 When establishing a pawnshop, an applicant shall
submit the following documents to the competent department of
commerce at the level of districted city (prefecture) of the
locality where the pawnshop is to be established:
1. an application for the establishment, which shall specify
the name, residence, registered capital, shareholders and
their amount of capital contributions, business scope of the
pawnshop to be established and etc., and a feasibility study
report;
2. the articles of association of the pawnshop, the agreement
on capital contributions and the commitment on capital
contributions;
3. business rules, internal management system and safeguard
measures of the pawnshop;
4. the capital verification certificate issued by a capital
verification institution that has legal qualification;
5. resumes of the individual shareholders, the legal
representative to be appointed and other senior managers as
issued by the personnel department of the entity where their
archives are placed;
6. the recent financial auditing report of the shareholders
with legal person status and the certificate of capability for
capital contribution as issued by the accountant firm that has
legal qualification, the resolution of the board of directors
or the shareholders' meeting of the shareholders with legal
person status and a photocopy of the duplicate of the business
licenses thereof;
7. the effective certification documents of ownership or use
right of the business place, which meet the requirements; and
8. the Notice of Approval of Enterprise Names in Advance as
issued by the administrative department for industry and
commerce.
Article 12 Any pawnshop that meets the following conditions
may establish a trans-province (autonomous region or
municipalities directly under the Central Government)
branches:
1. having engaged in the pawn business for three years or
more with the registered capital of not less than RMB 15
million Yuan;
2. making profits consecutively in the past two years; and
3. having no records of violating laws and regulations in its
business operations during the past two years.
The branches of any pawnshop shall implement the safety
system as prescribed in Article 9 of the present Measures, and
shall have the safety facilities as prescribed in Article 10
of the present Measures.
Article 13 A pawnshop shall allocate the working capital of
not less than RMB 5 million Yuan to each of its branch.
The total working capital of all the branches of a pawnshop
shall not exceed 50% of the registered capital of the
pawnshop.
Article 14 When applying for establishing any branch, a
pawnshop shallsubmit the following materials to the competent
department of commerce at the level of districted city
(prefecture) of the locality where the branch is to be
established:
1. the application report for establishment of the branch
(which shall specify the name, residence, person-in-charge,
amount of working capital and etc. of the branch to be
established), a feasibility study report and the resolution of
the board of directors (or the shareholders' meeting);
2. the financial report of the pawnshop in the past two years
as issued by a qualified accountant firm;
3. the resume of the person to be appointed in charge of the
branch, which is issued by the personnel department at the
locality where his archives are placed;
4. the effective certification documents of ownership or use
right of the business place, which meet the requirements; and
5. the certificate of having no records of violating any law
or regulation in the past two years as issued by the competent
department of commerce at the provincial level and the public
security organ of the people's government at the level of the
county where it is located.
Article 15 After receiving an application for establishing a
pawnshop or an application of a pawnshop for establishing a
branch, the competent department of commerce at the level of
districted city (prefecture) shall report it for examination
to the competent department of commerce at the provincial
level which shall in turn submit the examination opinions and
the application documents to the Ministry of Commerce for
approval and issuance of a License for Operation of Pawn
Business. The competent department of commerce at the
provincial level shall circulate a report on the relevant
conditions to the public security organ of the people's
government at the same level within 5 days (workdays, the same
hereinafter) after receiving the approval documents of the
Ministry of Commerce. And the public security organ of the
people's government at the provincial level shall notify the
public security organ of the people's government at the level
of districted city (prefecture) of the report within 5 days.
Article 16 After receiving a License for Operation of Pawn
Business, the applicant shall apply for a License of Special
Trades for the pawnshop to the public security organ of the
people's government at the level of the local county within 10
days, and submit the following materials:
1. an application report;
2. the License for Operation of Pawn Business and its
photocopy;
3. the resumes of the legal representative, individual
shareholders and other senior managers as well as the
photocopies of their effective identity certificates;
4. the certificate of having no records of intentional crimes
as issued by the respective public security organ of the
people's government at the level of the county where the
registered permanent residences of the legal representative,
individual shareholders and other senior managers are placed;
5. the ichnography and constructional drawing of the business
place and the warehouse of the pawnshop;
6. the video equipments, safeguard facilities, safe boxes
(counters, warehouses) and the distribution plan of the sites
for the installation and setup of fire control facilities;
7. various rules on public security safeguarding and fire
control; and
8. basic information of the public security safeguarding
organizations and personnel.
Article 17 The public security organ of the people's
government at the level of the county where the applicant
resides shall, within 10 days after accepting the application,
report the application documents and the result of preliminary
examination to the public security organ of the people's
government at the level of districted city (prefecture) which
shall finish the examination and approval within 10 days and
issue a License of Special Trades to those to whom approval is
granted.
The public security organ of the people's government at the
level of districted city (prefecture) shall finish the
examination and approval on the applications accepted directly
by itself within 20 days. And, upon approval, a License of
Special Trades shall be issued
The public security organ of the people's government at the
level of districted city (prefecture) shall, within 5 days
after issuing a license, report the conditions of examination
and approval to the public security organ of the people's
government at the provincial level for archival filing; and
the public security organ of the people's government at the
provincial level shall report the relevant matters to the
competent department of commerce at the same level within 5
days.
The applicant shall, within 10 days after receiving the
License of Special Trades, apply for checking in and
registration at the administrative department for industry and
commerce, and shall not conduct business operations until
having received the business license.

Chapter III Alteration and Termination
Article 18 Where a pawnshop alters its name and registered
capital (excluding those whose registered capital is more than
RMB 50 million Yuan after alteration), replaces its legal
representative, or changes its residence within the scope of
the city (region, prefecture, or league), transfers stocks
(excluding those that transfer stocks to anyone else for up to
50% of its total shares accumulatively), it shall be subject
to the approval of the competent department of commerce at the
provincial level. The competent department of commerce at the
provincial level shall report it to the Ministry of Commerce
for archival filing within 20 days after approval. The
Ministry of Commerce shall change the License for Operation of
Pawn Business collectively in June and December each year.
Where any pawnshop is split, merged, or moves its residence
to another city (region, prefecture, or league), or transfers
its stocks to anyone else for up to 50% of its total shares
accumulatively, or the registered capital after alteration is
more than RMB 50 Yuan, it shall, upon the approval of the
competent department of commerce at the provincial level,
report it to the Ministry of Commerce for approval and change
the License for Operation of Pawn Business.
The applicant shall, after receiving the License for
Operation of Pawn Business, apply for changing the License of
Special Trades and the business license according to the
relevant provisions of Article 17 of the present Measures.
Article 19 When increasing its registered capital, a pawnshop
shall meet the following conditions:
1. The time interval between the increase of registered
capital and the time when it started its business operations
or the preceding increase of registered capital shall be one
year or more; and
2. having no record of operation in violation of any law or
regulation within one year.
Article 20 If any pawnshop alters its registered capital or
adjusts the structure of its capital stocks, the new
individual shareholders and the senior managers to be
appointed shall accept qualification examination; and the new
shareholders with legal-person status and the shareholders
with legal person status after capital increase shall have the
corresponding capability and qualification for investment.
Article 21 Where anyone fails to obtain the License of
Special Trades or the business license as required without
justifiable reasons, or fails to start business without
justifiable reasons for more than 6 months as of the date of
being issued of the business license, or stops the business
operation for more than 6 consecutive months after starting
business, the competent department of commerce at the
provincial level and the public security organ of the people's
government at the level of districted city (prefecture) shall
take back the License for Operation of Pawn Business and the
License of Special Trades respectively, and the original
approval documents shall be revoked automatically. The License
for Operation of Pawn Business that has bee taken back shall
be returned to the Ministry of Commerce.
Where any competent department of commerce at the provincial
level takes back the License for Operation of Pawn Business or
any public security organ of the people's government at the
level of districted city (prefecture) takes back the License
of Special Trades, it shall report to each other the relevant
matters through the public security organ of the people's
government at the provincial level within 10 days.
After its license is taken back, the pawnshop shall apply for
writing-off registration to the administrative department for
industry and commerce according to law.
Article 22 A pawnshop shall, three months before its
dissolution, file an application to the competent department
of commerce at the provincial level, and shall stop other
business operations except redeeming pawned objects or
disposing the absolutely pawned objects upon approval and set
up a liquidation group according to law to make liquidation.
Article 23 After the liquidation to a pawnshop is completed,
the liquidation group shall submit a liquidation report for
confirmation to the competent department of commerce at the
provincial levelwhich shall take back the License for
Operation of Pawn Business and notify the public security
organ of the people's government at the same level within 5
days.
The public security organ of the people's government at the
provincial level shall notify the public security organ of the
people's government at the level of districted city
(prefecture) that has made the original approval decision to
take back the License of Special Trades within 5 days.
The pawnshop shall, after the liquidation is completed, apply
for writing off registration to the administrative department
of industry and commerce according to law.
Article 24 The competent department of commerce at the
provincial level shall make a public announcement on any
pawnshop that has terminated its business operations, and
report it to the Ministry of Commerce for archival filing.

Chapter IV Business Scope
Article 25 A pawnshop may undertake the following business
operations upon approval:
1. the pawn business of pledge of chattel;
2. the pawn business of pledge of property rights;
3. the pawn business of mortgage of real estates (excluding
the real estates of other provinces, autonomous regions, and
municipalities directly under the Central Government or the
projects under construction for which the licenses for advance
sale of commercial houses has not been obtained);
4. sale of the absolutely pawned objects within a certain
value;
5. appraisal and counseling consultation; and
6. other pawn businesses as approved by the Ministry of
Commerce according to law.
Article 26 No pawnshops may undertake any of the following
businesses:
1. the sale of non-absolutely pawned objects or the purchase
or consignment of old objects;
2. the business of mortgage of chattel;
3. raising funds or absorbing deposit overtly or in any
disguised form;
4. granting credit loans; or
5. other businesses not approved by the Ministry of Commerce.
Article 27 No pawnshop may accept any of the following
properties in its pawn business:
1. property that has been lawfully sealed up, detained or
property against which other protective measures have been
taken;
2. ill-gotten goods and items without clear sources;
3. any item that is inflammable, easily explosive, severely
toxic or radioactive and the containers thereof;
4. knife tools under control, guns, ammunitions, marks used
by army or police, uniforms and instruments;
5. the official documents and seals of the state organs and
the properties under its control;
6. the certificates or licenses except the certificate of
real right issued by the state organs and the effective
identity certificates;
7. property over which the pawner has no ownership or fails
to obtain the right of disposition according to law; and
8. natural resources or other property or items that are
prohibited from circulating by laws, regulations and the
relevant provisions of the state.
Article 28 No pawnshops may have any of the following acts:
1. borrowing money from entities or individuals except
commercial banks;
2. making inter-bank capital borrowing with other pawnshops
overtly or in any disguised form;
3. getting loans from commercial banks beyond the prescribed
limit; or
4. making foreign investment.
Article 29 To accept those items that are subject to uniform
purchase, exclusive sale or monopolistic sale of the state,
the pawnshop shall obtain the approval of the relevant
departments of the government.

Chapter V Pawn Tickets
Article 30 A pawn ticket is a loan contract between a
pawnshop and a pawner, and is the credence for payment of pawn
money to the pawner by the pawnshop.
If a pawnshop comes to any agreement with a pawner on any
matter beyond the pawn ticket, they shall sign a supplementary
written contract. But the contents stipulated in the contract
shall not violate the relevant laws, regulations and the
provisions of the present Measures.
Article 31 A pawn ticket shall specify the following items:
1. name and residence of the pawnshop;
2. name and residence (or address) of the pawner, relevant
certificates (licenses) and their numbers thereof;
3. name, quantity, quality and status of the pawned item;
4. the estimated value and the amount of pawn money;
5. the interest rate and comprehensive premium rate;
6. date and term of the pawn, the term of renewal of the
pawn; and
7. points for attention to the pawners.
Article 32 No pawnshop or pawner may transfer, lend or pledge
his/its pawn ticket to any third person.
Article 33 The pawnshop and the pawner shall record their
pawn ticket in truth and well keep it.
In case any pawn ticket is lost, the pawner shall in time
report the loss to the pawnshop. In case the pawner fails to
report the loss of the pawn ticket to the pawnshop, or the
pawned item has been redeemed by any other person before the
pawner reports the loss to the pawnshop, the pawnshop shall
not be regarded as blamable and shall not compensate the loss.

Chapter IV Rules for Business Operation
Article 34 No pawnshop may entrust any other entity or
individual to handle the pawn business as an agent, nor may it
assign any operating person to any other organization,
institution or business place to conduct the pawn business.
Article 35 When a pawner pawns an item or redeems any pawned
item, he/it shall show his/its own effective identity
certificate. If the pawner is an entity, the pawn handler
shall show the certificate of the entity and the effective
identity certificate of himself; in the case of a pawn by
entrustment, the entrusted person shall show the power of
attorney of the pawner, and the effective identity
certificates of himself and the client.
Except the certificates as listed in the preceding paragraph,
the pawner shall, when pawning any item, provide the source of
the pawned item and the relevant certificate documents
according to the facts to the pawnshop. When redeeming the
pawned item, the pawner shall show the pawn ticket.
The pawnshop shall check the certificate documents as listed
in paragraph two of this Article, which are issued by the
pawner.
Article 36 Both parties shall determine the estimated value
and the amount of pawn money of any pawned item through
negotiation.
In case both parties cannot come to an agreement on the
pawned value of any real estate through negotiation, they may
entrust a real estate price appraisal institution that has the
competent qualification to make an appraisal, and the
estimated value may be regarded as a reference for determining
the pawned value.
The time limit of a pawn shall be stipulated by both parties,
and shall not exceed 6 months at the maximum.
Article 37 The interest rate for the pawn value shall apply
the six-month legal interest rate of loans to a banking
institution as announced by the People's Bank of China after
converting the term of pawn.
The interest for the pawn value shall not be deducted in
advance.
Article 38 The comprehensive premium of a pawn shall include
all kinds of service fees and overhead expenses.
In the case of a pledged pawn of chattel, the monthly
comprehensive premium rate shall not exceed 42‰ of the pawn
value.
In the case of a mortgaged pawn of real estate, the monthly
comprehensive premium rate shall not exceed 27‰ of the pawn
value.
In the case of a pledged pawn of property right, the monthly
comprehensive premium rate shall not exceed 24‰ of the pawn
value.
Where the term of a pawn is less than 5 days, the premium
shall be charged as that the term is 5 days.
Article 39 Upon the agreement of both parties during the
period of a pawn or within 5 days after the expiration of the
pawn term, the pawn may be renewed for 6 months at maximum
each time. The renewed term of the pawn shall be calculated
from the day when the pawn term expires or when the former
renewed term of the pawn expires. To renew a pawn, the pawner
shall settle all the interest for the pawn in the form term
and the premium in the present term.
Article 40 After a pawn term or a renewed term expires, the
pawner shall redeem the pawned item or renew the term within 5
days. In case the pawner fails to redeem the item or renew the
term, it shall be deemed as an absolute pawn.
Where a pawner redeems a pawned item during the period
between the expiration of the pawn term or the renewed term
and the time for absolute pawn, he shall, apart from repaying
the pawn value and the interest thereof as well as the
comprehensive premium, make up the interest for the pawn value
and other relevant expenses in light of the penalty level of
interest rate of an overdue loan for banks and other financial
institutions as prescribed by the People's Bank of China, and
the premium rates for the pawn and the number of days overdue
as formulated by the pawnshop.
Article 41 The pawnshop shall not lease, pledge, mortgage or
use any pawned item within the term of a pawn.
Where a pledged item of a pawn is lost or damaged during the
pawn term or the renewed term, the pawnshop shall make
compensation pursuant to the estimated value. Where the
pledged item of a pawn is damaged due to force majeure, the
pawnshop shall not be responsible for the compensation.
Article 42 Where a pawnshop undertakes the pawn business of
real estate mortgage, it shall handle mortgage registration in
advance with the pawner at the relevant departments according
to law, and then go through the formalities for a mortgaged
pawn.
When conducting the pawn business of pledge of motor
vehicles, the pawnshop shallgo through the formalities for
registration of the pledge at the administrative department of
vehicles.
Where any other pawn business managed by the pawnshop is
subject to registration according to relevant laws and
regulations, the pawnshop shall go through the registration
formalities according to law.
Article 43 The pawnshop shall treat with the absolutely
pawned items according to the following provisions:
1. If the estimated value of a pawned item is more than RMB
30,000 Yuan, it may be treated with according to the Guaranty
Law of the People's Republic of China or may be publicly
auctioned by an entrusted auction house pursuant to the
agreement reached upon by both parties concerning absolute
pawns. The proceeds from auction shall be returned to the
pawner after deducting the expenses of auction as well as the
pawn value and the interest thereof; in case the proceeds from
auction are lower than the estimated value, the pawnshop may
demand the pawner to make up the margin.
2. If the estimated value of an absolutely pawned item is
less than RMB 30,000 Yuan, the pawnshop may sell off it by
itself or deal with it by converting it into money, and shall
be responsible for the profit or loss thereof.
3. The absolutely pawned items, which are restricted by the
state from circulating, shall be treated with after being
reported to and approved by the relevant administrative
departments or being handed over to the designated entities
for disposal.
4. When setting up spots for the sale of absolutely pawned
items outside its business place, the pawnshop shall report to
the competent department of commerce at the provincial level
for archival filing, and shall voluntarily accept the
supervision and inspection of the local competent department
of commerce. And
5. When disposing of the shares of any listed company
belonging to absolutely pawned items, the pawnshop shall win
the consent and cooperation of the pawner, and shall not sell
off the shares or convert them into money by itself, or
entrust any auction house to auction them publicly.
Article 44 The assets of a pawnshop shall be managed pursuant
to the proportions below:
1. Where a pawnshop gets loans from a commercial bank within
the time when it starts business operation till it first
submits the annual financial reports to the competent
department of commerce at the provincial level and the local
competent department of commerce, the balance of the loan
shall not exceed its registered capital. Where a pawnshop gets
loans from a commercial bank after submitting the financial
reports for the first time to the competent department of
commerce at the provincial level and the local competent
department of commerce, the balance of the loan shall not
exceed the rights and interests of the owners as stated in the
financial reports submitted to the competent department in the
previous year. The pawnshop shall not get loans from any
commercial bank outside its own city (region, prefecture, or
league). No branch of any pawnshop may get loans from any
commercial bank.
2. The balance of a pawn paid to the same legal person or
natural person by a pawnshop shall not exceed 25% of its
registered capital;
3. The balance of a pawn paid to a shareholder of a pawnshop
shall not exceed the contributions made by the shareholder,
and the conditions of pawn shall not be more preferential than
common pawners.
4. In case the net assets of a pawnshop is less than 90% of
its registered capital, all shareholders shall make it up
pursuant to the proportions or apply for reducing the
registered capital. However, the registered capital after
reduction shall not violate the provisions on the minimum
registered capital of a pawnshop as prescribed in the present
Measures. And
5. The balance of a pledged pawn of property rights of a
pawnshop shall not exceed 50% of the registered capital. The
balance of a pawn of real estate mortgage shall not exceed the
registered capital. If the registered capital is less than RMB
10 million Yuan, the pawn money of a single pawn of real
estate mortgage shall not exceed RMB 1 million Yuan. If the
registered capital is more than RMB 10 million Yuan, the pawn
money of a single pawn of real estate mortgage shall not
exceed 10% of the registered capital.
Article 45 The pawnshop shall, according to the relevant laws
and the unified accounting system of the state, establish and
improve its own financial accounting system and internal
auditing system.
The pawnshop shall, according to the relevant provisions of
the state, truthfully note down and thoroughly reflect its
business activities and financial status, work out monthly
financial statements and annual financial reports and submit
them to the competent department of commerce at the provincial
level and the competent department of commerce at the level of
districted city (prefecture) where the pawnshop is situated.
The annual financial reports of a pawnshop shall be subject
to the inspection and verification of accountants' firms or
other legal institutions.

Chapter VII Supervision and Administration
Article 46 The Ministry of Commerce shall implement
centralized and specialized administration over pawnshops and
perform the following regulatory functions:
1. formulating the relevant regulations and policies;
2. being responsible for the administration of market access
and exit on pawnshops;
3. being responsible for the supervision over routine
businesses of pawnshops; and
4. making business guidance to the self-disciplinary
organizations of the pawn industry.
Article 47 The Ministry of Commerce shall make adjustment and
control over the total number, overall arrangement and capital
scale of the pawnshops all over the country by referring to
the annual development plan worked out by the competent
department of commerce at the provincial level.
Article 48 The License for Operation of Pawn Business shall
be printed uniformly by the Ministry of Commerce. The uniform
coding system shall be applied to the administration of
Licenses for Operation of Pawn Business; and the measures for
the coding administration shall be formulated by the Ministry
of Commerce separately.
The pawn tickets shall be designed uniformly by the Ministry
of Commerce, and be subject to the supervision of the
competent department of commerce at the provincial level which
shall report the conditions on printing and use of pawn
tickets to the Ministry of Commerce half a year. No entity or
individual may forge or alter any pawn ticket.
Article 49 The competent department of commerce at the
provincial level shall submit the conditions on the operation
of local pawnshops to the Ministry of Commerce on the
quarterly basis. The concrete requirements and format of
report forms shall be prescribed by the Ministry of Commerce
separately.
Article 50 The practicing personnel of a pawnshop shall hold
effective identity certificates; if any foreigner or any other
oversea personnel is employed in any pawnshop, he shall obtain
the license for alien employment according to the relevant
provisions of the state.
No pawnshops may employ any person who fails to provide the
certificates as listed in the preceding paragraph.
Article 51 The pawnshop shall record down and make statistics
on the pledged items of pawn and the information of pawners
according to the facts, and submit them for future reference
according to the requirements of public security organs of the
people's government at or above the level of the county where
it is located.
Article 52 Where a pawnshop discovers any person on whom a
report has been circulated by the public security organ for
assistance in investigation or any ill-gotten goods or any
other property as listed in Article 27 of the present
Measures, it shall report it to the public security organ
immediately.
Article 53 For any ill-gotten goods or any pawned item that
is suspected to be ill-gotten goods, the public security organ
shall detain it according to law and dispose it according to
the relevant provisions of the state.
Article 54 The competent department of commerce at the
provincial level and the competent department of commerce at
the level of districted city (prefecture) shall establish the
system of regular inspection and irregular spot check
according to the fact of their local regions so as to discover
and solve relevant problems in time. In the case of stealing
or robbing, fire disasters, absorbing savings through raising
funds or other major cases involving litigation occurred in
any pawnshop within its jurisdiction, it shall report the case
to the upper level competent department of commerce and the
local people's government within 24 hours, and circulate a
report to the public security organ of the people's government
at the corresponding level.
Article 55 The national association of pawn industry shall be
the national self-disciplinary organization of pawn industry,
and shall be established upon the approval and registration of
the civil affairs department of the State Council, and accept
the business guidance of such departments as commerce and
public security of the State Council.
The local association of pawn industry shall be the local
self-disciplinary organization of pawn industry, and shall be
established upon the approval and registration of the local
civil affairs department, and accept the business guidance of
such departments as commerce and public security at its
locality.
Article 56 The Ministry of Commerce shall authorize the
competent departments of commerce at the provincial level to
make annual examination on pawnshops. The concrete measures
shall be formulated by the Ministry of Commerceseparately.
The competent departments of commerce at the provincial level
shall, within 10 days after annual examination, circulate a
report on the relevant matters to the public security organs
and administrative departments of industry and commerce of the
people's government at the corresponding level.
Article 57 The state shall implement the system of
certification on the level of pawn practicing. The concrete
measures shall be formulated by the Ministry of Commerce
together with the administrative department of personnel of
the State Council.

Chapter VIII Penalties
Article 58 Where anyone establishes any pawnshop or any
branch or illegally undertakes any pawn business by other
means, he/it shall be subject to punishment according to the
Measures for the Investigating and Punishing and Banning
License-less Business Operations.
Article 59 Where any pawnshop violates the provisions of item
(3) and (4) of Article 26 of the present Measures and
constitutes a crime, it shall be subject to criminal
responsibilities according to law.
Article 60 Where any pawnshop violates the provisions of item
(1), (2) or (3) of Article 28 or the provisions of item (1),
(2) or (5) of Article 44 of the present Measures, the
competent department of commerce at the provincial level shall
charge it to make corrections, and impose a fine of RMB 5000
Yuan up to RMB 30,000 Yuan on it; if a crime is constituted,
it shall be subject to criminal responsibilities according to
law.
Article 61 Where any pawnshop violates the provisions of item
(1) of Article 37 or the provisions of item (2) (3) or (4) of
Article 38 of the present Measures, the competent department
of commerce at the provincial level shall charge it to make
corrections, and impose a fine of RMB 5000 Yuan up to RMB
30,000 Yuan on it; if a crime is constituted, it shall be
subject to criminal responsibilities according to law.
Article 62 Where any pawnshop violates the provisions of
Article 45 of the present Measures, conceals its real
management conditions, provides false financial reports or
financial statements or evades taxation and supervision by any
other means, the competent department of commerce at the
provincial level shall charge it to make corrections, and
circulate a report to the relevant departments to make
investigation and punishment according to law; if any crime is
constituted, it shall be subject to criminal responsibilities
according to law.
Article 63 Where any pawnshop violates the provisions of
Article 27 of the present Measures, the public security organ
of the people's government at or above the county level shall
charge it to make corrections, and impose a fine of RMB 5000
Yuan up to RMB 30,000 Yuan on it; if any crime is constituted,
it shall be subject to criminal responsibilities according to
law.
Article 64 Where any pawnshop violates the provisions of item
(1), (2) or (5) of Article 26, item (4) of Article 28, or
Article 34 of the present Measures, the competent department
of commerce at the level of districted city (prefecture) where
it is located shall charge it to make corrections, and/or
impose a fine of RMB 5000 Yuan up to RMB 30,000 Yuan on it.
Where any pawnshop violates the provisions of Article 29 or
item (3) or (5) of Article 43 of the present Measures, accepts
pawned items restricted from circulating or disposes any
absolutely pawned item without obtaining the corresponding
approval or consent, the competent department of commerce at
the level of districted city (prefecture) where it is located
shall charge it to make corrections, and impose a fine of RMB
1000 Yuan up to RMB 5,000 Yuan concurrently.
Where any pawnshop violates the provisions of item (3) or (4)
of Article 44 of the present Measures, has no actual capital
and disturbs the order of business operation, the competent
department of commerce at the level of the city (prefecture)
where it is located shall charge it to make up the amount of
capital or reduce its registered capital within a prescribed
time limit, and impose a fine of RMB 5000 Yuan up to RMB
30,000 Yuan concurrently.
Article 65 Where any pawnshop violates the provisions of
paragraph three of Article 35 or the provisions of Article 51
of the present Measures, the public security organ of the
people's government at or above the county level shall charge
it to make corrections and impose a fine of RMB 200 Yuan up to
RMB 1000 Yuan.
Article 66 Where any pawnshop violates the provisions of
Article 52 of the present Measures, the public security organ
of the people's government at or above the county level shall
charge it to make corrections and impose a fine of RMB 2000
Yuan up to RMB 10,000 Yuan; if serious consequences are
resulted in or the pawnshop refuses to make corrections
despite of repeated admonitions, it shall be given a fine of
RMB 5000 Yuan up to RMB 30,000 Yuan.
Where any pawnshop knowingly shelters, destroys or transfers
any ill-gotten goods, it shall be subject to the
administrative punishment of public security according to law;
if it a crime is constituted, it shall be subject to criminal
responsibilities according to law.
Article 67 Where any pawnshop forces any person to pawn any
item by means of violence or menace, or infringes the lawful
rights and interests of any pawner by any other illegal means,
it shall be deemed as violating the public security
administration, and shall be subject to administrative
punishment of public security by the public security organ
according to law; if a crime is constituted, it shall be
subject to criminal responsibilities.
Article 68 The competent department of commerce and the
public security organ shall cooperate with each other during
the process of investigation and spying into any illegal and
criminal act of any pawnshop. If any act of pawnshops
violating the present Measures is discovered by them, they
shall make investigation and verification on it, and circulate
a report to each other on the results of investigation and
punishment; if a pawnshop is suspected of committing a crime,
the competent department of commerce shall transfer it to the
public security organ in time for disposal.
Article 69 Where any staff member of the competent department
of commerce or the public security organ violates laws,
regulations or the provisions of the present Measures during
the process of examination and approval for the establishment,
alteration and termination of any pawnshop, or abuses its
power, seeks private gains or is derelict of duty in the
supervision and administration, the person-in-charge who is
directly responsible and other personnel directly liable shall
be subject to administrative punishment according to law; if a
crime is constituted, he shall be subject to criminal
responsibilities according to law.

Chapter IX Supplementary Provisions
Article 70 The competent departments of commerce and public
security organs of all the provinces, autonomous regions, and
municipalities directly under the Central Government may,
according to the present Measures, formulate concrete
implementation measures or make provisions on the relevant
matters relating to the administration of entrustment or
authorization, and report them to the Ministry of Commerce and
the Ministry of Public Security for archival filing.

Article 71 The measures for the administration of
foreign-funded pawnshops and pawnshops invested by Hong Kong,
Macao and Taiwan investors shall be formulated by the Ministry
of Commerce together with other relevant departments
separately.

Article 72 The power to interpret the present Measures shall
remain with the Ministry of Commerce and the Ministry of
Public Security.

Article 73 The present Measures shall come into force as of
April 1st, 2005. The Measures for the Administration of
Pawnshops (Order No.22 of the State Economic and Trade
Commission) and the Measures for the Public Security
Administration of Pawn Industry (Order No.26 of the Ministry
of Public Security) shall be abolished simultaneously.