Fund China

First State Cinda Fund Management Co. Ltd (the “Company”), is a joint venture between China Cinda Asset Management Corporation (China Cinda) and Colonial First State Group (CFSG), a wholly owned subsidiary of the Commonwealth Bank of Australia. It is the first fund management company held by a state-owned asset management company, and also the first Australian joint venture fund management in China.

The Company has its registered office in Shenzhen China with a registered capital of RMB100 million. China Cinda invested 54 million yuan in a 54 per cent stake of the fund company, while CFSG contributed 46 million yuan for the remaining 46 percent.

Shareholders Background

China Cinda Asset Management Corporation, the Chinese shareholder of the Company, was established on April 20, 1999 with approval from the State Council. It is China’s first financial asset management company with a registered capital of RMB 10 billion. Throughout China, the Company has 31 offices and a number of subsidiaries including Cinda Investment Corporation, Well Kent International Holding Company Limited, ZhongRun Economic Development Company and Huida Asset Trusteeship Co., Ltd. Etc, which reflect its strong strength and diversified nature.

Colonial First State Group, the foreign shareholder of the Company, is a wholly owned subsidiary of the Commonwealth Bank of Australia. It is broadly engaged in the business of Colonial First State Global Asset Management which is the largest fund manager in Australia. As of 30 June 2006, the group has funds under management both within Australia and internationally of more than AUD124.2 billion. Colonial First State Group has offices in Sydney, London, Edinburgh, Hong Kong, Singapore, and Indonesia. The Commonwealth Bank of Australia, established in 1911, was once the central bank of Australia. The Commonwealth Bank of Australia today takes a leading position in the field of integrated financial services in Australia. Besides, it is one of the biggest listed companies in the Australian Stock Exchange with total assets of AUD 499.8 billion as of as of 30 June 2006.

Corporate Governance

The Company has established a sound corporate governance structure, balancing Shareholder’s Meeting, Board of Directors and Supervisors in accordance with “Company Law of the People’s Republic of China”. The Company has established an Advisory Committee which reports to the Shareholdings’ Meeting. The Board of Directors has established two specialist committees, namely Audit & Compliance Committee and Remuneration Review Committee. Three independent Directors have been appointed to the Board. The General Manager is responsible for the daily management of the Company and various committees including the Investment Review Committee and the Risk Control Committee will facilitate the affair-discussion and decision-making.

The Company is dedicated in fostering a fine internal relationship and a well motivated management team and work force through a perfect corporate governance structure, a sound performance evaluation system and incentive mechanism, a high degree of accountability, diligence, obligation, and responsibility of directors and management team. We believe in this way we will generate attractive return for the investors and shareholders.

Staff Team

Currently, the Company has 39 employees, of which, 18 hold master’s degree and 3 hold doctorate degree, and employees with master’s degree or above representing 55% of the total staff.
All key operating staff are qualified fund management professionals, with an average of over 7 years’ work experience in the security industry.

Company Operation Philosophy

Standardization, Accountability, Innovation, and Return
☉ Standardization: operate in accordance with law, structured operation and stable growth.
☉ Accountability: build investor confidence and accountable to the market and society.
☉ Innovation: be innovative for promoting development, improving service delivery and enhancing efficiency.
☉ Return: return to our shareholders, our customers and the society.

Fund Manager

Mr. Zeng Zhaoxiong

Current Position
Fund Manager of First State Cinda Leaders Growth Equity Fund & Company Investment Officer of First State Cinda Fund Management Co., Ltd

Work Experience
Deputy Director of the Market Service Department of Shenzhen Exchange
General Manager of the International Operation Department of Union Securities Corporation
Asia-Pacific Strategy Analyst& Assistant to Fund Manager of Dresdner Asset Management Co., Ltd in London Headquarter
Assistant to CEO of ABN AMRO Xiangcai Fund Management Co., Ltd
Deputy Investment Director of Invesco Great Wall Fund Management Co., Ltd
Assistant to CEO, Fund Manager of Social Security 110 of China Merchants Fund Management Co., Ltd

Awards
Mr Zeng was awarded “Fund Manager of 2004” from China Securities. Under his management,
Xiangcai Hefeng Lifecycle Fund received 4-Star Morningstar Rating and its performance ranked 5th of all the Morningstar Equity Funds.
Invesco Best-selection Fund was rated by Morningstar as 5-Star Fund in 2005 and he earned the nomination of “Morningstar Equity Fund Manager Award of the Year 2004”.
Invesco Dynamic Balanced Fund was awarded “Golden Bull Award” from China Securities and “Top Ten Star Fund Award” from the China Finance Bulletin in 2004, ranked second in the performance of Morningstar Allocation Funds in 2004, won 5-Star Morningstar Rating in 2005. He also won the nomination of “Morningstar Allocation Fund Manager Award of the Year 2004” and “Top Ten Star Fund Manager of 2004” from the China Finance Bulletin.

Investment Philosophy

We believe active investment management creates value for our investors. We pursue the steady wealth growth for the investors through investment on the quality companies which offer steady earnings growth and long-term investment value. We adopt bottom-up investment analysis approach and look for growth companies with long-term competitiveness and investment opportunities generated by the underestimation of the market through in-depth analysis of the companies and their developing environment.

Under general circumstances, we grasp the investment opportunities through investment on the quality companies when the market inefficiency occurs and the steady growth in earnings per share is underestimated by the market. Our investment philosophy is based on the following three principles,
We invest on the companies with high quality management team and outstanding franchise.
We strongly believe the earnings per share growth facilitates the long-term increase of the stock price.
We make great endeavor to set reasonable price for the potential earnings per share growth of the companies.

Besides stock investment, we also actively resort to the relative value analysis system to assess the relative investment value of the various fixed income products, the financial derivatives and stocks with the aim to raise the investment return of the fixed income products for the investors through active management of investment portfolio.

Products Series

Before choosing a fund product, let’s have a bird’s view about the basic situations of the fund. The following are the most thorough and detailed introduction of our fund products which will guide you through a quick understanding of the fund profile, fund managers, investment concept, net asset value of the fund and relevant legal documents so as to find the most suitable fund products for you.

Fund Overview

Product Profile
Fund Name First State Cinda Leaders Growth Equity Fund (the Fund)

Investment Goal
The Fund picks out the quality companies which offer steady earnings growth, makes long-run investment on them in accordance with strict investment management procedures and achieves long-term capital appreciation of the Fund through a share of the sustainable value growth of those companies.

Investment Scope
Stock assets account for 60%-95% of the fund assets. Bond assets constitute 0%-35% of the fund assets. Cash and other financial tools make up 5%-40% of the fund assets, and the reserved cash or the government bonds within 1 year of expiration should be no less than 5% of the net asset value of the fund.

Investment Strategy
The Fund trails the successful experience of the Colonial First State Group of the Commonwealth Bank of Australia on the stock investment in the global newly emerging market and absorbs the investment concept of the First State China Growth Fund, making assessment and research into the Chinese market from the global view. Meanwhile, the Fund gives full consideration to the operation features of the domestic financial market, centers on the bottom-up well-chosen securities strategy, utilizes properly the asset allocation and sector allocation to strategically adjust the investment orientation, controls the risks systematically and effectively, picks out the quality companies which can combat against multi-wave economic fluctuations and offer steady earnings growth, makes long-run investment on them in accordance with strict investment management procedures and achieves long-term capital appreciation of the Fund through a share of the sustainable value growth of those companies.

Benchmark
Shanghai Shenzhen 300 Index Yield* 80% + China Bonds Index Yield* 20%
Risk& Return Features
Fund products with relatively high return and high risks.

Products Features

Fund Features:

Well-chosen Individual Stocks　　　Pursue Growth
Utilize solid bottom-up value investment concept; select the quality companies which offer steady earnings growth and long-term investment value; keep pursuing sustainable growth of the fund asset.

Win-win Cooperation　　　Stabilize Growth
Trail the successful experience of the Colonial First State Group of the Commonwealth Bank of Australia on the stock investment in the global newly emerging market; absorb the investment concept of the First State China Growth Fund; make research and investment on the Chinese market from the global view; pursue the steady wealth growth for the investors.

Excellent Teams　　　Generate Growth
The investment research team of the Company possesses rich experience in security investment and analysis, draws upon the advanced management expertise of the foreign shareholders, utilizes varied research and investment approaches creatively, manages the fund asset strategically and generates wealth growth opportunities for the investors.

Timely Entry　　　Witness Growth
The unceasing boost of the running efficiency of the Chinese economy and the future growth potential, the gradual solution to the fundamental and institutional problems in the security market and the entry of the reasonable valuation range of the stock market present the best time to invest on funds and witness the growth.

Website: http://www.fscinda.com

Copyright Fund China 2008.

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