Regulations Governing the Management and Utilization of the Labor Insurance Fund Article 7

The restrictions on foreign investment of the Fund are as follows:1. The total cost for the investment in any single equity securities, debt securities or offshore fund may not exceed five percent of the total amount of the Fund at the time of investment;2. The total amount for the investment in any equity securities or debt securities may not exceed ten percent of the total amount of each securities issued at the time of investment;3. All foreign debt securities and asset-backed securities or bonds purchased shall be issued by institutions rated as of certain rankings by internationally renowned credit rating agencies or approved by securities authorities;4. In addition to domestic and overseas branches of ROC banks, foreign currencies may be deposited in foreign banks rated as of certain rankings by internationally renowned credit rating agencies or approved by securities authorities;5. The amount of foreign currencies deposited in the same bank may not exceed three percent of the total amount of the Fund but foreign currencies deposited in custodian banks are not subject to this limitation.The Bureau of Labor Funds shall determine the certain rankings stated in subparagraphs 3 and 4 of the preceding Paragraph.