On December 9 2003, Lion Fund Management Co., Ltd., on approval of China Securities Regulatory Commission（Ref: No.132 [2003] CSRC）, was officially established by China Foreign Economy and Trade Trust & Investment Co., Ltd. which is a subsidiary of Sinochem Corporation, Shenzhen Jielong Investment Co., Ltd. and Beijing Zhongguancun Science Park Construction Co., Ltd., with registered capital of RMB 110 million currently.

Even though established under the system of “Qualified Institutional Buyer (QIB)”, Lion Fund Management Co., Ltd. has established standardized corporate governance structure, complete internal control system and scientific fund management process since it was established. Meanwhile, the company built up the determination system with transparent regulations and democratic process, the execution system with clear task distribution and the integration of right and responsibility, and the supervision system with mutual constraints and scientific operation.

In terms of fund management, Lion Fund Management Co Ltd. has established two special institutions, Investment Plan Committee and Risk Control Office. Investment Plan Committee is responsible for directing the operation of fund assets, determining the basic investment strategies and the principles of investment combination. While Risk Control Office is responsible for fully evaluating the operation risks the company and proposing prevention measures.

At present, Lion Fund Management Co., Ltd. has established a complete set of management systems, such as internal risk control system, internal audit system, financial management system, human resources management system, information disclosure system and employee disciplines, etc.

Business Performance

By the end of June 2007, Lion Fund Management Co., Ltd. has managed five open funds, such as Lion Balanced Securities Investment Fund, Lion Monetary Market Fund, Lion Stock Securities Investment Fund, Lion Mid-term and Short-term Securities Investment Fund, Lion Value Growth Stock Investment Fund. The total amount of management assets is about RMB 30 Billion.