Major Stock Exchange Introduction

B-share is a RMB special type of shares, of which foreign companies can be listed on domestic market, with the permission from China Securities Regulatory Commission (the CSRC). B-share markets are established in February 1992. The two exchanges, Shanghai and Shenzhen stock Exchange has its own B shares issued by listed companies to trade. For the first 10 years, the Chinese government permits overseas investors to hold B share only. The overall development is unsatisfactory as the number of investors is small, compared to A-share market. Since February 19, 2001, China Securities Regulatory Commission allows domestic residents to own B-share accounts opened by foreign currency. This attracts more foreign investment and significantly alters the development of B share market afterwards.

The characteristic of market operation:

Shenzhen Stock Exchange (SZSE)

Shenzhen Stock Exchange (SZSE)，established on 1st December 1990. Its main functions include providing venue and facility for securities trading, formulating operational rules, arranging securities listing, organizing and supervising securities trading, offering membership supervision and oversight of listed companies, managing and publicizing market information and other capacities permitted by CSRC.

SZSE launched the SME Board in May 2004. The ChiNext Market was inaugurated in October 2009. And the OTC market began its pilot program in Zhongguancun Science Park in January 2006. Thus SZSE has basically completed its framework for the multi-tier capital market system with coordinated development in the main board, SME board and ChiNext market.

By 30 June 2010, SZSE was home to 1,012 listed companies, with 485 on the main board, 437 on the SME board and 90 on the ChiNext market. The total market capitalization was valued at 5.6 trillion yuan (US$828.7 billion). A total of 69 companies in Zhongguancun Science Park were quoted on the OTC market. In the first half of 2010, SZSE raised 154.3 billion yuan (US$22.7 billion) in IPO proceeds and recorded a total trading value of 9.73 trillion yuan (US$1.43 trillion).

Major Index Introduction

Shanghai Stock Exchange Composite Index

Shanghai constituent index (SSE 180 index)

Shanghai constituent index (SSE 180 index), is created by restructuring and renaming SSE30 Index. It selects constituents with best representation through scientific and objective method. SSE is a benchmark index reflecting Shanghai market and serving as a performance benchmark for investment and a basis for financial innovation.

SSE A-Share Index

Constituents for SSE A-Share Index are all listed A- shares at Shanghai Stock Exchange. The Base Day for SSE A Share Index is December 19, 1990. The Base Period is the total market capitalization of all A shares of that day. The Base Value is 100. The code is 000002.

SSE B-Share Index

Constituents for SSE B-Share Index are all listed B-shares at Shanghai Stock Exchange. The Base Day for SSE B Share Index is February 21, 1992. The Base Period is the total market capitalization of all B shares of that day. The Base Value is 100. The code is 000003.

Shenzhen Exchange Composite Index

SSE A-Share Index

Constituents for SSE A-Share Index are all listed A-shares at Shenzhen Stock Exchange. The Base Day for SSE A Share Index is April 3, 1991. The Base Period is the total market capitalization of all A shares of that day. The Base Value is 100. The code is 399107.

SSE B-Share Index

Constituents for SSE B-Share Index are all listed B-shares at Shenzhen Stock Exchange. The Base Day for SSE B Share Index is February 28, 1992. The Base Period is the total market capitalization of all B shares of that day. The Base Value is 100. The code is 399108.

SSE Component Index

Constituents for SSE Component Index are selected of 40 companies listed at Shenzhen Exchange. The Base Day for SSE Component Index is July 20, 1992. The Base Period is the total market capitalization of 40 selected companies of that day. The Base Value is 1000. The code is 399001.

Account Opening Procedures

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Trading Information

Commission

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China Stock Coding Rule

Securities code includes 6 figures. When trading on the Shenzhen B share, .SZ should be added after the code. When trading on Shanghai B share, .SS should be added after the code. Alphabet such as [PT] or [ST] may appear in front of some shares’ name. Those shares belong to high-risk shares.

Particular transfer [PT] facilitates the transfer of suspended listed shares. Special treatment [ST] shows the performance of listed companies that have deficit for two consecutive years or share per assets less than the par value.

Trading Unit

100 shares per lot for buying Shenzhen B share, 1 shares per lot for selling.

100 shares per lot for buying Shanghai B share, 1 shares per lot for selling.

Less than 1 lot is regarded as Odd lot.

Trading Halt China B Share

The price of securities shall not be changed over 10% on each day relative to the closing price of previous trading day.

The stock with [PT] quotation means the price of stock shall not be increased over 5% on each day, but there is no limit for decrease.

The stock with [ST] quotation means the price of stocks shall not be increased or decreased for 5% on each day.

Important items prior to trading:

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