Contents:

INTRODUCTION Definitions & Report Coverage Glossary Executive Summary 1 MARKET BACKGROUND 1.1 Fast Facts 1.2 RMB Exchange Rates 1.2.1 Exchange Rates: China Table 1.1 AVERAGE ANNUAL EXCHANGE RATES, 1997¨C2003 1.2.2 Exchange Rates: Hong Kong Table 1.2 AVERAGE ANNUAL EXCHANGE RATES, 1997¨C2003 1.3 The Regions of China Map 1.1 CHINA: PROVINCES AND MUNICIPALITIES 1.4 China’s GDP Table 1.3 GDP AND COST OF LIVING INDEX, 1997¨C2003 2 THE DEVELOPMENT OF ASSET MANAGEMENT IN CHINA 2.1 The Background to the Opening of the Asset Management Market in China Table 2. TOTAL LOANS OUTSTANDING IN CHINA 2000-2003 Table 2.1 DISPOSAL & RECOVERY OF NPLS & ASSETS BY CHINA’S AMC 2002 Table 2.2 DISPOSAL & RECOVERY OF NPLS & ASSETS BY CHINA’S AMC 2003 2.2 The Frame of Reference for Asset Management Companies (AMCs) in China 2.3 Debt-Equity Swaps in China 2.4 Institutional Links Between State Banks & AMCs 2.5 Initial Asset Management Business 2.6 Ongoing Asset Management Business Table 2.3 CHINESE GOVERNMENT DEBT AS OF END 2002 2.7 Problems Facing the Asset Management Companies 2.8 Problems Facing the Central Bank with the AMCs Table 2.4 GOVERNMENT DEBT IN CHINA AS A % OF GDP 2.8 Financial Sector Reform 2.9 The Current State of China’s State Owned Enterprises (SOEs) Table 2.5 INDUSTRIAL VALUE ADDED IN CHINA BY ENTERPRISE OWNERSHIP TYPE 2003* Table 2.6 LISTED LOSS-MAKING FIRMS ON CHINA¡¯S STOCKMARKETS 1996-2000 Table 2.7 REAL GROWTH IN FIXED ASSET INVESTMENT IN CHINA 2000-2003 Table 2.8 NEW LOAN GROWTH IN CHINA 2000-2003 Table 2.9 NEW LOANS SHARE OF GDP IN CHINA 2002-2003 2.10 Foreign Involvement in China’s Asset Management Sector 2.11 Factors Influencing Market Growth Table 2.10 CONSUMER LOANS SHARE OF NEW LOANS IN CHINA 2001-2003 3 ASSET MANAGEMENT COMPANY PROFILES 3.1 China Huarong Asset Management Corporation (CHAMC) 3.1.1 China Huarong: Company Details 3.1.2 China Huarong: Company Background 3.1.3 China Huarong: Future Strategy 3.2 China Great Wall Asset Management Company 3.2.1 China Great Wall: Company Details 3.2.2 China Great Wall: Company Background 3.2.3 China Great Wall: Company Structure 3.2.4 China Great Wall: Future Strategy 3.3 China Xinda Asset Management Company (Cinda) 3.3.1 China Xinda: Company Details 3.3.2 China Xinda: Company Background 3.3.3 China Xinda: Future Strategy 3.4 Dongfang Asset Management Company (Oriental) 3.5 Guangdong Guangye Asset Management Company 3.5.1 Guangdong Guangye: Company Details 3.5.2 Guangdong Guangye: Company Background 3.6 Initial Foreign Involvement 4 CONTACTS 4.1 Trade Organisations 4.1.1 The China Banking Industry Association 4.1.2 The Guangdong Bank Association 4.2 Government Departments 4.2.1 Ministry of Finance 4.2.2 China Insurance Regulatory Committee (CIRC) 4.2.3 State Economic & Trade Commission 4.2.4 China Securities Regulatory Commission (CSRC) 5 APPENDIX - REGULATIONS ON FINANCIAL ASSET-MANAGEMENT COMPANIES Chapter I: General Provisions Article 1 Article 2 Article 3 Article 4 Chapter II: Company Establishment and Business Scope Article 5 Article 6 Article 7 Article 8 Article 9 Article 10 Chapter III: Scope, Amount and Capital Source for Purchasing Bad Loans Article 11 Article 12 Article 13 Article 14 Article 15 Chapter IV: Debt-equity Swap Article 16 Article 17 Article 18 Article 19 Article 20 Article 21 Article 22 Article 23 Chapter V: Company Operation and Management Article 24 Article 25 Article 26 Article 27 Article 28 Article 29 Article 30 Chapter VI: Termination and Liquidation Article 31 Article 32 Chapter VII: Supplementary Provisions Article 33 Article 34