Quarterly Highlights 1. Quarterly Highlights. 3 rd Quarter, 2007

Transcription

1 Quarterly Highlights 1 Quarterly Highlights 3 rd Quarter, 2007

2 Quarterly Highlights 2 8/F Building B Tongtai Plaza, 33 Jinrong Street Beijing , China lizx@chinaamc.com Tel: Dear Sir or Madam: Please find enclosed Quarterly Highlights for the third quarter of 2007, including ChinaAMC Fund Family We hope that you will find them useful and we do very much appreciate your interest in our products and services. If you have any further inquiries regarding our company or our funds, please do not hesitate to contact me, or my colleague Ms. Pearl Chen at and chenh@chinaamc.com. Sincerely yours, John Li Chief International Business Officer ChinaAMC

3 Quarterly Highlights 3 China 50 ETF Quarterly Report Long-term Strategic Investment in China s Strongest Shares: Transparent Access to China s Growth Historical Performance July August September 3-month Since China 50 ETF Establishing (12/30/2004) China 50 ETF NAV 15.89% 21.23% 3.37% 45.23% % China 50 ETF Market Price 16.29% 20.76% 4.51% 46.77% N.A. SSE 50 Index 16.32% 22.36% 3.79% 47.72% % SSE Composite Index 17.02% 16.73% 6.39% 45.32% % SSE 50 Index Constituent Stocks (as of Sept 30, 2007) Code Stock Weighting Code Stock Weighting Pudong Development Bank 6.72% Kweichow Moutai 2.61% Handan Iron & Steel 0.92% Offshore Oil Engineering 1.02% Wuhan Iron and Steel 2.04% Founder Technology 0.52% Shanghai Airport 1.67% Shenergy 1.02% BaoTou Steel 1.09% Shanghai Petrochem 0.71% Huaneng Power 2.30% Tianjin Harbor 0.74% Hua Xia Bank 1.53% GD Power 1.21% Minsheng Banking 5.05% Oriental Group 0.83% Shanghai Port Container 1.50% Shanghai Oriental Pearl 0.71% Baoshan Iron & Steel 4.68% Long March Launch 0.39% China Shipping 0.79% Yili Industrial 0.64% China PetroChem 2.49% Yangtze Power 3.34% Citic Securities 11.78% Daqin Railway 2.43% China Merchants Bank 6.77% Air China 1.36% Beijing Gehua CATV 0.76% Industrial Bank 2.07% Poly Real Estate 1.68% Ping An Insurance 4.75% China Unicom 2.91% Bank of Communications 1.06% Tsinghua Tongfang 0.57% Guangshen Railway 0.82% Shanghai Automotive 2.13% ICBC 2.23% Youngor 1.37% Beijing North Star 0.51% Gan Yue Express Way 0.47% China Aluminum 3.14% Yantai Wanhua 1.20% China Life 2.06% Zhenhua Port Machinery 1.60% Merchants Shipping 0.51% Sichuan Hongda 0.76% Bank of China 1.13% Jiangxi Copper 0.65% CITIC Bank 0.72%

4 Quarterly Highlights 4 Price 1 and Trading Volume Trading Volume (million shares) Trading Volume[million shares] Price 2-Jul Jul Jul Jul-07 9-Aug Aug Aug-07 7-Sep Price (RMB) Tracking the SSE 50 Index 2 Since Listing SSE 50 Index/1000 China 50 ETF NAV (RMB) Feb Jun Sep Jan May-06 5-Sep Dec Apr Aug-07 Premium/Discount 1.50% 1.00% 0.50% 0.00% -0.50% -1.00% 2-Jul Jul Jul Jul-07 9-Aug Aug Aug-07 7-Sep Based on closing price of China 50 ETF. 2. Based on closing price of SSE 50 Index. The tracking deviation is caused by dividend and non-tradable shares reform recently. 3. China 50 ETF distributed dividend on May 19, 2006 ((0.24 RMB /10 units) and Nov 16, 2006 (0.37 RMB/10 units).

5 Quarterly Highlights 5 ChinaAMC Fund Family I. Open-end Funds ChinaAMC Growth Fund (Equity Fund) ChinaAMC Large-cap Select Fund (Equity Fund) ChinaAMC Advantage Growth Fund (Equity Fund) ChinaAMC Return Fund (Balanced Fund) ChinaAMC Return Fund II (Balanced Fund) ChinaAMC Dividend Fund (Balanced Fund) ChinaAMC Stable Growth Fund (Balanced Fund) ChinaAMC Core Bluechip Fund (Balanced Fund) ChinaAMC Bond Fund (Pure Bond Fund) ChinaAMC Cash Income Fund (Money Market Fund) II. ETFs China 50 ETF China SME ETF III. Closed-end Funds Xing Hua Fund (2bn) Xing He Fund (3bn, enhanced index fund) Xing An Fund (0.5bn)

6 Quarterly Highlights 6 Investment Fund Name China AMC Growth Fund ( ) Date of Establishment : 12/18/2001 Auditor of the Investment Fund : Price Waterhouse Coopers Fund Manager : China AMC Fund Manager Shareholders : Shareholder 1 Shareholder 2 Shareholder 3 Southwest China Sci-Tech CITIC Securities Securities Securities Fee Structure : Fixed (RMB) Variable (%) - Subscription Fee : 0-1.8% back-load applicable - Management Fee : 1.50% - Custodian Fee : 0.25% - Redemption Fee <=0.5% - Performance Fee : - Type of Fund : Equity Fund(*) - Open-end Fund : X - Closed-end fund : Maturity Minimum Subscription : 1000 RMB Frequency of the NAV Calculation : - Daily : X - Weekly : - Monthly : Fund Financials 9/30/ /31/ /31/2005 Net Asset Value (RMB) : 13,694,513, ,315,758, ,030,420, Outstanding Units : 6,154,565, ,320,866, ,118,310, Investment Scope Domestic Max by issuer (**) - Investment Funds : - - Shares-listed : <80% <10% - Bonds : >=20% - Other (Cash) : >=5% Return (as of 09/30/2007)(***) : YTD 3 Year Period 5 Year Period NAV Growth % % % SSE Composite Index % % % (*) Investment in government bonds shall not be less than 20% of the assets (**) It is required by regulation that aggregated investment in one security by all funds from one fund manager shall not exceed 10% of the total shares of that security. (***) Data source: ChinaAMC and Tianxiang Securities Analysis System.

7 Quarterly Highlights 7 ChinaAMC Growth Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 77.55% Bond 20.20% Warrant 0.68% ABS - Cash & Other Asset 1.58% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and Hunting 0.26% 2 Mining 8.45% 3 Manufacturing, amongst 30.27% Food, Beverage 7.85% Textile, Apparel, Leather 0.01% Wood Product - Paper, Printing 4.59% Petroleum, Chemical Product, Plastics, Rubber 0.10% Electrical Equipment 0.02% Metal, Nonmetallic Mineral Product 5.94% Machinery, Equipment, Meter 10.57% Medicine, biologic Product 0.74% Other Manufacturing 0.46% 4 Electricity, Gas, Water Supply 0.19% 5 Construction 0.74% 6 Transport, Storage 0.83% 7 Information, Technology 1.37% 8 Wholesale and Retail Trade 12.53% 9 Finance, Insurance 11.82% 10 Real Estate 6.07% 11 Social Services 1.62% 12 Transmission, Culture 0.05% 13 Conglomerate 4.45% Total 78.64%

8 Quarterly Highlights 8 Investment Fund Name China AMC Large-cap Select Fund ( ) Date of Establishment : 08/11/2004 Auditor of the Investment Fund : Price Waterhouse Coopers Fund Manager : China AMC Fund Manager Shareholders : Shareholder 1 Shareholder 2 Shareholder 3 Southwest CITIC Securities China Sci-Tech Securities Securities Fee Structure : Fixed (RMB) Variable (%) - Subscription Fee : 0-1.8% back-load applicable - Management Fee : 1.50% - Custodian Fee : 0.25% - Redemption Fee <=0.5% - Performance Fee : - Type of Fund : Equity Fund - Open-end Fund : X - Closed-end fund : Maturity Minimum Subscription : 1,000 RMB Frequency of the NAV Calculation : - Daily : X - Weekly : - Monthly : Fund Financials 9/30/ /31/ /31/2005 Net Asset Value (RMB) : 5,798,318, ,980,249, ,392, Outstanding Units : 826,843, ,520, ,592, Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : 40-95% <10% - Bonds : - Other (Cash) : >=5% Return (as of 09/30/2007)(**) : YTD 1 Year Period 2 Year Period NAV Growth % % % FTSE A % % % (*) It is required by regulation that aggregated investment in one security by all funds from one fund manager shall not exceed 10% of the total shares of that security. (**) Data source: ChinaAMC and Tianxiang Securities Analysis System.

9 Quarterly Highlights 9 ChinaAMC Large-cap Select Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 63.39% Bond 4.80% Warrant - ABS - Cash & Other Asset 31.81% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage Agriculture, Forestry, Fishing and 5.83% 1 Hunting 2 Mining 4.70% 3 Manufacturing, amongst 28.55% Food, Beverage 0.36% Textile, Apparel, Leather 0.70% Wood Product - Paper, Printing 1.83% Petroleum, Chemical Product, 8.79% Plastics, Rubber Electrical Equipment 0.05% Metal, Nonmetallic Mineral 10.55% Product Machinery, Equipment, Meter 6.24% Medicine, biologic Product 0.00% Other Manufacturing 0.03% 4 Electricity, Gas, Water Supply 3.30% 5 Construction 0.01% 6 Transport, Storage - 7 Information, Technology 4.37% 8 Wholesale and Retail Trade 2.72% 9 Finance, Insurance 0.07% 10 Real Estate 9.97% 11 Social Services 3.99% 12 Transmission, Culture 1.95% 13 Conglomerate 0.34% Total 65.78%

10 Quarterly Highlights 10 Investment Fund Name China AMC Advantage Growth Fund ( ) Date of Establishment : 11/24/2006 Auditor of the Investment Fund : Price Waterhouse Coopers Fund Manager : China AMC Fund Manager Shareholders : Shareholder 1 Shareholder 2 Shareholder 3 CITIC Securities Southwest Securities China Sci-Tech Securities Fee Structure : Fixed (RMB) Variable (%) - Subscription Fee : 0-1.5% back-load applicable - Management Fee : 1.50% - Custodian Fee : 0.25% - Redemption Fee <=0.5% - Performance Fee : - Type of Fund : Equity Fund - Open-end Fund : X - Closed-end fund : Maturity Minimum Subscription : 1,000 RMB Frequency of the NAV Calculation : - Daily : X - Weekly : - Monthly : Fund Financials 9/29/2007 3/31/2007 Net Asset Value (RMB) : 23,633,177, ,160,737, Outstanding Units : 9,162,909, ,277,559, Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : 60-95% <10% - Bonds : 0-40% - Other (Cash) : >5% Return (as of 09/30/2007)(**) : YTD NAV Growth % SSE Composite Index % (*) It is required by regulation that aggregated investment in one security by all funds from one fund manager shall not exceed 10% of the total shares of that security. (**) Data source: ChinaAMC and Tianxiang Securities Analysis System.

11 Quarterly Highlights 11 ChinaAMC Advantage Growth Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 77.12% Bond 3.61% Warrant - ABS - Cash and Other 19.28% Asset Top 10 Equity Holdings Rank Percentag Stock Code e % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and Hunting 0.63% 2 Mining 8.75% 3 Manufacturing, amongst 29.95% Food, Beverage 5.63% Textile, Apparel, Leather 0.01% Wood Product - Paper, Printing 0.38% Petroleum, Chemical Product, Plastics, Rubber 3.99% Electrical Equipment 0.01% Metal, Nonmetallic Mineral Product 12.18% Machinery, Equipment, Meter 7.11% Medicine, Biologic Product 0.33% Other Manufacturing 0.32% 4 Electricity, Gas, Water Supply 1.47% 5 Construction 0.00% 6 Transport, Storage 10.32% 7 Information, Technology 0.66% 8 Wholesale and Retail Trade 5.20% 9 Finance, Insurance 13.41% 10 Real Estate 6.80% 11 Social Services - 12 Transmission, Culture 0.17% 13 Conglomerate 1.44% Total 78.82%

12 Quarterly Highlights 12 Investment Fund Name China AMC Return Fund ( ) Date of creation : 9/5/2003 Auditor of the Investment Fund : Price Waterhouse Coopers Fund Manager : China AMC Fund Manager Shareholders : Shareholder 1 Shareholder 2 Shareholder 3 CITIC Securities Southwest Securities China Sci-Tech Securities Fee Structure Fixed (RMB) Variable (%) - Subscription Fee : 0-1.8% back-load applicable - Management Fee : 1.50% - Custodian Fee : 0.25% - Redemption Fee <=0.5% - Performance Fee : - Type of Fund : Balanced Fund - Open-end Fund : X - Closed-end fund : Maturity Minimum Subscription : 1000 RMB Frequency of the NAV Calculation : - Daily : X - Weekly : - Monthly : Fund Financials 9/30/ /31/ /31/2005 Net Asset Value (RMB) : 23,264,647, ,963,202, ,195,789, Outstanding Units : 16,875,401, ,020,391, ,134,679, Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : <80% <10% - Bonds : >=20% - Other (Cash) : Return (as of 09/30/2007)(**) : YTD 1 Year Period 2 Year Period NAV Growth % % % One Year Deposit Rate 1.47% 1.71% 3.22% (*) It is required by regulation that aggregated investment in one security by all funds from one fund manager shall not exceed 10% of the total shares of that security. (**) Data source: ChinaAMC and Tianxiang Securities Analysis System.

13 Quarterly Highlights 13 ChinaAMC Return Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 49.09% Bond 19.35% Warrant - ABS - Cash and Other Asset 31.55% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and Hunting 0.14% 2 Mining 6.19% 3 Manufacturing, amongst 20.15% Food, Beverage 1.17% Textile, Apparel, Leather 0.01% Wood Product - Paper, Printing 1.34% Petroleum, Chemical Product, Plastics, Rubber 2.22% Electrical Equipment 0.01% Metal, Nonmetallic Mineral Product 9.36% Machinery, Equipment, Meter 5.40% Medicine, Biologic Product 0.50% Other Manufacturing 0.14% 4 Electricity, Gas, Water Supply 2.34% 5 Construction 0.01% 6 Transport, Storage 5.42% 7 Information, Technology 0.40% 8 Wholesale and Retail Trade 2.02% 9 Finance, Insurance 10.48% 10 Real Estate 3.70% 11 Social Services 0.07% 12 Transmission, Culture 0.02% 13 Conglomerate 0.78% Total 51.71%

14 Quarterly Highlights 14 Investment Fund Name China AMC Return II Fund ( 2 ) Date of creation : 8/14/2006 Auditor of the Investment Fund : Price Waterhouse Coopers Fund Manager : China AMC Fund Manager Shareholders : Shareholder 1 Shareholder 2 Shareholder 3 CITIC Securities Southwest Securities China Sci-Tech Securities Fee Structure Fixed (RMB) Variable (%) - Subscription Fee : 0-2.0% back-load applicable - Management Fee : 1.50% - Custodian Fee : 0.25% - Redemption Fee <=0.5% - Performance Fee : - Type of Fund : Balanced Fund - Open-end Fund : X - Closed-end fund : Maturity Minimum Subscription : 1000 RMB Frequency of the NAV Calculation : - Daily : X - Weekly : - Monthly : Fund Financials 9/30/ /31/2006 Net Asset Value (RMB) : 10,430,761, ,126,563, Outstanding Units : 7,279,033, ,119,341, Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : <80% <10% - Bonds : >=20% - Other (Cash) : Return (as of 09/30/2007)(**) : YTD NAV Growth % SSE Composite Index 1.47% (*) It is required by regulation that aggregated investment in one security by all funds from one fund manager shall not exceed 10% of the total shares of that security. (**) Data source: ChinaAMC and Tianxiang Securities Analysis System.

15 Quarterly Highlights 15 ChinaAMC Return II Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 71.00% Bond 19.31% Warrant 0.02% ABS - Cash and Other Asset 9.67% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and Hunting 0.23% 2 Mining 9.85% 3 Manufacturing, amongst 37.32% Food, Beverage 6.42% Textile, Apparel, Leather 0.01% Wood Product - Paper, Printing - Petroleum, Chemical Product, Plastics, Rubber 4.98% Electrical Equipment 0.02% Metal, Nonmetallic Mineral Product 16.66% Machinery, Equipment, Meter 9.22% Medicine, Biologic Product 0.00% Other Manufacturing 0.02% 4 Electricity, Gas, Water Supply 1.24% 5 Construction 0.45% 6 Transport, Storage 9.30% 7 Information, Technology 1.10% 8 Wholesale and Retail Trade 4.87% 9 Finance, Insurance 4.30% 10 Real Estate 5.69% 11 Social Services 0.06% 12 Transmission, Culture 0.17% 13 Conglomerate 1.04% Total 75.62%

16 Quarterly Highlights 16 Investment Fund Name China AMC Dividend Fund ( ) Date of creation : 6/24/2005 Auditor of the Investment Fund : Deloitte Touche Tohmatsu CPA Ltd. Fund Manager : China AMC Fund Manager Shareholders : Shareholder 1 Shareholder 2 Shareholder 3 CITIC Securities Southwest Securities China Sci-Tech Securities Fee Structure Fixed (RMB) Variable (%) - Subscription Fee : 0-1.5% back-load applicable - Management Fee : 1.50% - Custodian Fee : 0.25% - Redemption Fee <=0.5% - Performance Fee : - Type of Fund : Balanced Fund - Open-end Fund : X - Closed-end fund : Maturity Minimum Subscription : 1000 RMB Frequency of the NAV Calculation : - Daily : X - Weekly : - Monthly : Fund Financials 09/30/ /31/ /31/2005 Net Asset Value (RMB) : 28,097,897, ,855,102, ,578, Outstanding Units : 8,782,167, ,181,770, ,763, Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : 20%-95% <10% - Bonds : - Other (Cash) : =<80% Return (as of 09/30/2007)(**) : YTD 1 Year Period 2 Year Period NAV Growth % % % Bench Mark 65.05% 63.54% % (*) It is required by regulation that aggregated investment in one security by all funds from one fund manager shall not exceed 10% of the total shares of that security. (**) Data source: ChinaAMC and Tianxiang Securities Analysis System.

17 Quarterly Highlights 17 ChinaAMC Dividend Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 74.08% Bond 4.00% Warrant 0.29% ABS - Cash and Other Asset 21.63% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and Hunting 2.07% 2 Mining 8.36% 3 Manufacturing, amongst 20.60% Food, Beverage 2.33% Textile, Apparel, Leather 0.00% Wood Product 0.15% Paper, Printing 0.33% Petroleum, Chemical Product, Plastics, Rubber 1.27% Electrical Equipment 0.72% Metal, Nonmetallic Mineral Product 8.63% Machinery, Equipment, Meter 5.67% Medicine, Biologic Product 1.45% Other Manufacturing 0.04% 4 Electricity, Gas, Water Supply 1.12% 5 Construction 0.14% 6 Transport, Storage 10.83% 7 Information, Technology 1.12% 8 Wholesale and Retail Trade 10.84% 9 Finance, Insurance 13.95% 10 Real Estate 7.59% 11 Social Services 0.92% 12 Transmission, Culture 0.33% 13 Conglomerate 0.80% Total 78.67%

18 Quarterly Highlights 18 Investment Fund Name China AMC Stable Growth Fund ( ) Date of creation : 08/09/2006 Auditor of the Investment Fund : Price Waterhouse Coopers Fund Manager : China AMC Fund Manager Shareholders : Shareholder 1 Shareholder 2 Shareholder 3 Southwest China Sci-Tech CITIC Securities Securities Securities Fee Structure : Fixed (RMB) Variable (%) - Subscription Fee : % - Management Fee : 1.50% - Custodian Fee 0.25% - Redemption Fee : 0-0.5% (519029) 0-3% (519028) - Performance Fee : - Type of Fund : Balance Fund - Open-end Fund : X - Closed-end fund : Minimum Subscription : 1,000 RMB Frequency of the NAV Calculation : - Daily : X - Weekly : - Monthly : Fund Financials 9/30/ /31/2006 Net Asset Value (RMB) : 11,638,336, ,332,765, Outstanding Units : 5,201,709, ,749,501, Investment Scope Domestic - Investment Funds : - - Shares-listed : 0-95% -Warrants: 0-3% - Bonds : 0-95% -ABS: 0-20% - Other (Cash) : >5% Return (as of 09/30/2007)(**) : YTD NAV Growth % Bench Mark 60.66% (*) It is required by regulation that aggregated investment in one security by all funds from one fund manager shall not exceed 10% of the total shares of that security. (**) Data source: ChinaAMC and Tianxiang Securities Analysis System.

19 Quarterly Highlights 19 ChinaAMC Stable Growth Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 84.10% Bond 4.42% Warrant 2.26% ABS - Cash and Other Asset 9.23% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and 0.04% Hunting 2 Mining 9.17% 3 Manufacturing, amongst 35.06% Food, Beverage 5.06% Textile, Apparel, Leather 0.01% Wood Product 0.97% Paper, Printing 0.40% Petroleum, Chemical Product, 3.83% Plastics, Rubber Electrical Equipment 1.48% Metal, Nonmetallic Mineral 11.39% Product Machinery, Equipment, Meter 7.99% Medicine, Biologic Product 3.56% Other Manufacturing 0.37% 4 Electricity, Gas, Water Supply 0.61% 5 Construction 0.68% 6 Transport, Storage 4.45% 7 Information, Technology 1.78% 8 Wholesale and Retail Trade 10.32% 9 Finance, Insurance 9.72% 10 Real Estate 12.35% 11 Social Services 0.97% 12 Transmission, Culture 0.05% 13 Conglomerate 0.00% Total 85.22%

20 Quarterly Highlights 20 Investment Fund Name China AMC Core Bluechip Fund ( ) Date of creation : 04/24/2007 Auditor of the Investment Fund : Price Waterhouse Coopers Fund Manager : China AMC Fund Manager Shareholders : Shareholder 1 Shareholder 2 Shareholder 3 Southwest China Sci-Tech CITIC Securities Securities Securities Fee Structure : Fixed (RMB) Variable (%) - Subscription Fee : % - Management Fee : 1.50% - Custodian Fee 0.25% - Redemption Fee : 0.5% - Performance Fee : - Type of Fund : Balance Fund - Open-end Fund : X - Closed-end fund : Minimum Subscription : 1,000 RMB Frequency of the NAV Calculation : - Daily : X - Weekly : - Monthly : Fund Financials 9/30/2007 Net Asset Value (RMB) : 37,497,531, Outstanding Units : 26,955,852, Investment Scope Domestic - Investment Funds : - - Shares-listed : 20-95% -Warrants: 0-3% - Bonds : 0-80% -ABS: 0-20% - Other (Cash) : >5% Return (as of 09/30/2007)(**) : YTD NAV Growth 46.78% Bench Mark 33.91% (*) It is required by regulation that aggregated investment in one security by all funds from one fund manager shall not exceed 10% of the total shares of that security. (**) Data source: ChinaAMC and Tianxiang Securities Analysis System.

21 Quarterly Highlights 21 ChinaAMC Stable Growth Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 79.71% Bond 4.68% Warrant - ABS - Cash and Other Asset 15.60% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and Hunting 0.05% 2 Mining 9.43% 3 Manufacturing, amongst 28.85% Food, Beverage 3.96% Textile, Apparel, Leather 0.16% Wood Product - Paper, Printing 0.70% Petroleum, Chemical Product, Plastics, Rubber 2.38% Electrical Equipment 0.23% Metal, Nonmetallic Mineral Product 8.92% Machinery, Equipment, Meter 10.84% Medicine, Biologic Product 1.31% Other Manufacturing 0.34% 4 Electricity, Gas, Water Supply 1.73% 5 Construction 0.09% 6 Transport, Storage 3.62% 7 Information, Technology 3.05% 8 Wholesale and Retail Trade 9.06% 9 Finance, Insurance 15.39% 10 Real Estate 6.41% 11 Social Services 1.70% 12 Transmission, Culture 0.27% 13 Conglomerate 2.29% Total 81.94%

22 Quarterly Highlights 22 Investment Fund Name China AMC Bond Fund ( ) Date of creation : 10/23/2002 Auditor of the Investment Fund : Price Waterhouse Coopers Fund Manager : China AMC Fund Manager Shareholders : Shareholder 1 Shareholder 2 Shareholder 3 Southwest China Sci-Tech CITIC Securities Securities Securities Fee Structure : Fixed (RMB) Variable (%) - Subscription Fee : Back-load applicable - Management Fee : 0.60% - Custodian Fee 0.20% - Redemption Fee : 0 - Performance Fee : - Type of Fund : Bond Fund - Open-end Fund : X - Closed-end fund : Maturity Minimum Subscription : 1,000 RMB Frequency of the NAV Calculation : - Daily : X - Weekly : - Monthly : Fund Financials 9/30/ /31/ /31/2005 Net Asset Value (RMB) : 5,157,284, ,264,265, ,452,183, Outstanding Units : 5,990,458, ,217,213, ,428,652, Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : - - Bonds : >=80% - Other (Cash) : <20% Return (as of 09/30/2007)(**) : YTD 1 Year Period 2 Year Period NAV Growth 12.72% 12.56% 24.59% Bench Mark -1.69% -0.41% 3.14% (*) It is required by regulation that aggregated investment in one security by all funds from one fund manager shall not exceed 10% of the total shares of that security. (**) Data source: ChinaAMC and Tianxiang Securities Analysis System.

23 Quarterly Highlights 23 ChinaAMC Bond Fund Asset Allocation Asset Type % of Net Asset Value Equity 5.37% Bond Instruments 65.90% ABS 2.41% Cash and Other Assets 26.32% Top 5 Bond Holdings Rank Bond Instruments Percentage 1 Bond % 2 Bond % 3 Bond % 4 Bond % 5 Bond % Sector Allocation Code Security Type Percentage 1 Treasury Bonds 26.38% 2 Agency Bonds 23.57% 3 Central Bank Notes 15.58% 4 Corporate Bonds 15.55% 5 Convertible Bonds 1.31% Total 82.39%

24 Quarterly Highlights 24 Investment Fund Name China AMC Cash Income Fund ( ) Date of creation : 04/07/2004 Auditor of the Investment Fund : Price Waterhouse Coopers Fund Manager : China AMC Fund Manager Shareholders : Shareholder 1 Shareholder 2 Shareholder 3 China Sci-Tech CITIC Securities Southwest Securities Securities Fee Structure : Fixed (RMB) Variable (%) - Subscription Fee : 0 - Management Fee : 0.33% - Custodian Fee 0.10% - Redemption Fee : 0 - Marketing and Sales Fee : 0.25% Type of Fund : Money Market Fund - Open-end Fund : X - Closed-end fund : Maturity Minimum Subscription : 1000 RMB Frequency of the NAV Calculation : - Daily : X - Weekly : - Monthly : Fund Financials 9/30/ /31/ /31/2005 Net Asset Value (RMB) : 7,555,132, ,333,624, ,299,686, Outstanding Units : 7,555,132, ,333,624, ,299,686, Investment Scope Domestic Max by issuer (*) - Shares-listed : - - Bonds : >=80% - Other (Cash) : <20% Return (as of 09/30/2007)(**) : YTD 1 Year Period Rank among peers Return Yield % % 1/24 (**) It is required by regulation that aggregated investment in one security by all funds from one fund manager shall not exceed 10% of the total shares of that security. (***) Data source: ChinaAMC and Tianxiang Securities Analysis System.

25 Quarterly Highlights 25 ChinaAMC Cash Income Fund (Money Market Fund) Asset Allocation Asset Type % of Net Asset Value Bond Instruments 70.40% ABS 0.72% REPO 21.18% Cash and Other Asset 7.70% Top 10 Bond Holdings Rank Bond Instruments Percentage 1 Bond % 2 Bond % 3 Bond % 4 Bond % 5 Bond % 6 Bond % 7 Bond % 8 Bond % 9 Bond % 10 Bond % Sector Allocation Code Security Type Percentage 1 Treasury Bonds - 2 Financial Bonds 11.20% Policy Financial Bonds 9.88% 3 Central Bank Notes 6.70% 4 Corporate Bonds 53.42% Total 71.31%

26 Quarterly Highlights 26 Investment Fund Name China 50 ETF ( 50ETF) Date of creation : 12/30/2004 Auditor of the Investment Fund : Deloitte Touche Tohmatsu CPA Ltd. Fund Manager : China AMC Fund Manager Shareholders : Shareholder 1 Shareholder 2 Shareholder 3 CITIC Securities Southwest Securities China Sci-Tech Securities Fee Structure Fixed (RMB) Variable (%) - Creation Fee : <=0.5% Charged by PD - Management Fee : 0.50% - Custodian Fee : 0.10% - Redemption Fee <=0.5% Charged by PD - Performance Fee : - Type of Fund : Equity Fund - Open-end Fund : X - Closed-end fund : Maturity Minimum Creation : 1,000,000 units Frequency of the NAV Calculation : - Daily : X - IOPV : Calculated every 15 seconds : Fund Financials 9/30/ /31/ /31/2005 Net Asset Value (RMB) : 8,513,079, ,490,684, ,601,139, Outstanding Units : 2,025,566,757 3,113,566,757 8,111,566, Investment Scope Domestic - Investment Funds : - - Shares-listed : X - Bonds : - Other (Cash) : Invest mainly in the constituent stocks and proxy stocks of the SSE 50 Index, enhancing with small quantities of new stocks and bonds. Return (as of 09/30/2007)(**) : YTD 1 Year Period 2 Year Period NAV Growth % % % SSE Composite Index % % % SSE 50 Index % % % (*) It is required by regulation that aggregated investment in one security by all funds from one fund manager shall not exceed 10% of the total shares of that security. (**) Data source: ChinaAMC and Tianxiang Securities Analysis System.

27 Quarterly Highlights 27 China 50 ETF Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 95.48% Bond 0.04% Warrant - ABS - Cash & Other Asset 4.48% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and - Hunting 2 Mining 3.97% 3 Manufacturing, amongst 24.92% Food, Beverage 3.12% Textile, Apparel, Leather 1.60% Wood Product - Paper, Printing - Petroleum, Chemical Product, Plastics, Rubber 2.48% Electrical Equipment - Metal, Nonmetallic Mineral Product 12.78% Machinery, Equipment, Meter 4.93% Medicine, Biologic Product - Other Manufacturing 0.00% 4 Electricity, Gas, Water Supply 7.81% 5 Construction - 6 Transport, Storage 10.10% 7 Information, Technology 4.89% 8 Wholesale and Retail Trade - 9 Finance, Insurance 41.58% 10 Real Estate 1.47% 11 Social Services - 12 Transmission, Culture 1.08% 13 Conglomerate 1.74% Total 97.55%

28 Quarterly Highlights 28 Investment Fund Name China SME ETF ( ETF) Date of creation : 06/08/2006 Auditor of the Investment Fund : Price Waterhouse Coopers. Fund Manager : China AMC Fund Manager Shareholders : Shareholder 1 Shareholder 2 Shareholder 3 CITIC Securities Southwest Securities China Sci-Tech Securities Fee Structure Fixed (RMB) Variable (%) - Creation Fee : <=0.5% Charged by PD - Management Fee : 0.50% - Custodian Fee : 0.10% - Redemption Fee <=0.5% Charged by PD - Performance Fee : - Type of Fund : Equity Fund - Open-end Fund : X - Closed-end fund : Maturity Minimum Creation : 1,000,000 units Frequency of the NAV Calculation : - Daily : X - IOPV : Calculated every 15 seconds : Fund Financials 9/30/ /31/2006 Net Asset Value (RMB) : 3,213,887, ,347,111, Outstanding Units : 1,148,201, ,965,122, Investment Scope Domestic - Investment Funds : - - Shares-listed : X - Bonds : - Other (Cash) : Invest mainly in the constituent stocks and proxy stocks of the SSE 50 Index, enhancing with small quantities of new stocks and bonds. Return (as of 09/30/2007)(**) : YTD 1 Year Period NAV Growth % % SME Index % 89.35% SSE Composite Index % % (*) It is required by regulation that aggregated investment in one security by all funds from one fund manager shall not exceed 10% of the total shares of that security. (**) Data source: ChinaAMC and Tianxiang Securities Analysis System.

29 Quarterly Highlights 29 China SME ETF Asset Allocation Asset Type % of Net Asset Value Equity 97.65% Bond 0.21% Warrant - ABS - Cash & Other Asset 2.14% Top 5 Constituent stocks Percentage Rank Stock Code Percentage % % % % % Top 5 New Issued stocks Percentage Rank Stock Code Percentage % % % % % Industry Allocation Constituent New Issued Code Industry stocks stocks Percentage Percentage 1 Agriculture, Forestry, Fishing and Hunting 1.31% - 2 Mining 0.36% - 3 Manufacturing, amongst 56.33% 0.40% Food, Beverage 0.90% 0.30% Textile, Apparel, Leather 3.99% 0.06% Wood Product 0.29% - Paper, Printing 3.06% - Petroleum, Chemical Product, Plastics, Rubber 11.00% - Electrical Equipment 7.17% 0.02% Metal, Nonmetallic Mineral Product 7.01% 0.02% Machinery, Equipment, Meter 12.99% - Medicine, Biologic Product 7.90% - Other Manufacturing 2.02% - 4 Electricity, Gas, Water Supply Construction 1.65% - 6 Transport, Storage 1.03% - 7 Information, Technology 3.78% - 8 Wholesale and Retail Trade 29.95% - 9 Finance, Insurance 1.34% - 10 Real Estate Social Services 1.59% 0.06% 12 Transmission, Culture Conglomerate 0.49% - Total 97.83% 0.46%

30 Quarterly Highlights 30 Investment Fund Name Date of creation : 4/28/1998 Xing Hua Fund ( ) Auditor of the Investment Fund : Price Waterhouse Coopers Fund Manager : China AMC Fund Manager Shareholders : Shareholder 1 Shareholder 2 Shareholder 3 CITIC Securities Southwest Securities China Sci-Tech Securities Fee Structure : Fixed (RMB) Variable (%) - Subscription Fee : 1.00% - Management Fee : 1.50% - Custodian Fee : 0.25% - Redemption Fee n/a - Performance Fee : - Type of Fund : - Open-end Fund : Equity Fund(*) - Closed-end fund : X Maturity 28/4/2013 Minimum Subscription : n/a RMB Frequency of the NAV Calculation : - Daily : - Weekly : X - Monthly : Fund Financials 9/30/ /31/ /31/2005 Net Asset Value : 7,477,257, ,372,440, ,041,295, Number of Shares Issued : 2,000,000,000 2,000,000,000 2,000,000,000 Investment Scope Domestic Max by issuer (**) - Investment Funds : - - Shares-listed : <80% <10% - Bonds : >=20% - Other (Cash) : <20% Return (as of 09/30/2007)(***) : YTD 2 Year Period 5 Year Period 8 Year Period NAV Growth % % % % SSE Composite Index % % % % (*) Investment in government bonds shall not be less than 20% of the assets (**)It is required by regulation that aggregated investment in one security by all funds from one fund manager shall not exceed 10% of the total shares of that security. (***)Data source: ChinaAMC and Tianxiang Securities Analysis System.

31 Quarterly Highlights 31 ChinaAMC Xing Hua Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 70.95% Bond 18.36% Warrant - ABS - Cash and Other Asset 10.69% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage Agriculture, Forestry, Fishing and 0.81% 1 Hunting 2 Mining 5.89% 3 Manufacturing, amongst 28.00% Food, Beverage 6.34% Textile, Apparel, Leather 0.02% Wood Product - Paper, Printing 0.46% Petroleum, Chemical Product, 7.64% Plastics, Rubber Electrical Equipment 0.04% Metal, Nonmetallic Mineral 9.19% Product Machinery, Equipment, Meter 2.82% Medicine, biologic Product 0.99% Other Manufacturing 0.51% 4 Electricity, Gas, Water Supply 0.77% 5 Construction 3.50% 6 Transport, Storage 5.76% 7 Information, Technology 0.59% 8 Wholesale and Retail Trade 10.37% 9 Finance, Insurance 9.84% 10 Real Estate 11.06% 11 Social Services 1.80% 12 Transmission, Culture 0.13% 13 Conglomerate 0.66% Total 79.20%

32 Quarterly Highlights 32 Investment Fund Name Xing He Fund ( ) optimized index fund Date of creation : 7/14/1999 Auditor of the Investment Fund : Price Waterhouse Cooper Fund Manager : China AMC Fund Manager Shareholders : Shareholder 1 Shareholder 2 Shareholder 3 Southwest CITIC Securities China Sci-Tech Securities Securities Fee Structure : Fixed (RMB) Variable (%) - Subscription Fee : 1.00% - Management Fee : 1.25% - Custodian Fee : 0.25% - Redemption Fee n/a - Performance Fee : - Type of Fund : Equity Fund(*) - Open-end Fund : - Closed-end fund : X Maturity 13/7/2014 Minimum Subscription : n/a RMB Frequency of the NAV Calculation : - Daily : - Weekly : X - Monthly : Fund Financials 9/30/ /31/ /31/2005 Net Asset Value (RMB) : 9,534,042, ,595,229, ,830,865, Outstanding Units : 3,000,000,000 3,000,000,000 3,000,000,000 Investment Scope Max by issuer (**) - Investment Funds : - - Shares-listed : <80% <10% - Bonds : >=20% - Other (Cash) : <20% Return (as of 09/30/2007)(***) : YTD 2 Year Period 7 Year Period NAV Growth % % % SSE Composite Index % % 97.22% (*) Investment in government bonds shall not be less than 20% of the assets (**) It is required by regulation that aggregated investment in one security by all funds from one fund manager shall not exceed 10% of the total shares of that security. (***) Data source: ChinaAMC and Tianxiang Securities Analysis System.

33 Quarterly Highlights 33 ChinaAMC Xing He Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 75.22% Bond 19.86% Warrant 0.04% ABS - Cash and Other Asset 4.87% Top 5 Equity Holdings (Active Management) Rank Stock Code Percentage % % % % % Top 5 Equity Holdings (Index) Rank Stock Code Percentage % % % % % Code Industry Percentage (Index) Percentage (Active Management) 1 Agriculture, Forestry, Fishing and Hunting 0.06% 0.59% 2 Mining 1.49% 6.00% 3 Manufacturing, amongst 10.41% 18.24% Food, Beverage 1.65% 2.09% Textile, Apparel, Leather 1.71% 0.07% Wood Product - - Paper, Printing % Petroleum, Chemical Product, Plastics, Rubber 0.71% 1.57% Electrical Equipment % Metal, Nonmetallic Mineral Product 4.75% 6.54% Machinery, Equipment, Meter 1.52% 5.45% Medicine, biologic Product 0.07% 1.37% Other Manufacturing % 4 Electricity, Gas, Water Supply 2.26% 0.58% 5 Construction % 6 Transport, Storage 2.81% 3.21% 7 Information, Technology 1.23% 0.40% 8 Wholesale and Retail Trade 0.95% 6.86% 9 Finance, Insurance 8.82% 4.54% 10 Real Estate 2.27% 2.85% 11 Social Services 0.68% 0.73% 12 Transmission, Culture 0.19% 0.15% 13 Conglomerate % Total 31.17% 46.25%

34 Quarterly Highlights 34 Investment Fund Name Xing An Fund ( ) Date of creation : 7/20/2000 Auditor of the Investment Fund : Price Waterhouse Coopers Fund Manager : China AMC Fund Manager Shareholders : Shareholder 1 Shareholder 2 Shareholder 3 Southwest CITIC Securities China Sci-Tech Securities Securities Fee Structure : Fixed (RMB) Variable (%) - Subscription Fee : 1.00% - Management Fee : 1.50% - Custodian Fee : Redemption Fee n/a - Performance Fee : - Type of Fund : Equity Fund(*) - Open-end Fund : - Closed-end fund : X Maturity 29/12/2007 Minimum Subscription : n/a RMB Frequency of the NAV Calculation : - Daily : - Weekly : X - Monthly : Fund Financials 9/30/ /31/ /31/2005 Net Asset Value (RMB) : 2,190,364, ,083,904, ,766, Outstanding Units : 500,000, ,000, ,000,000 Investment Scope Domestic Max by issuer (**) - Investment Funds : - - Shares-listed : <80% <10% - Bonds : >=20% - Other (Cash) : <20% Return (as of 09/30/2007)(***) : YTD 1 Year Period 5 Year Period NAV Growth % % % SSE Composite Index % % % (*) Investment in government bonds shall not be less than 20% of the assets (**) It is required by regulation that aggregated investment in one security by all funds from one fund manager shall not exceed 10% of the total shares of that security. (***) Data source: ChinaAMC and Tianxiang Securities Analysis System.

35 Quarterly Highlights 35 ChinaAMC Xing An Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 77.11% Bond 20.12% Warrant 0.37% ABS - Cash and Other Asset 2.40% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and Hunting 1.24% 2 Mining 9.95% 3 Manufacturing, amongst 30.71% Food, Beverage 3.55% Textile, Apparel, Leather 0.05% Wood Products - Paper, Printing 3.28% Petroleum, Chemical Product, Plastics, Rubber 2.15% Electrical Equipment 0.10% Metal, Nonmetallic Mineral Product 19.80% Machinery, Equipment, Meter 1.69% Medicine, biologic Product 0.01% Other Manufacturing 0.08% 4 Electricity, Gas, Water Supply - 5 Construction 1.22% 6 Transport, Storage 8.46% 7 Information, Technology 0.09% 8 Wholesale and Retail Trade 9.76% 9 Finance, Insurance 10.01% 10 Real Estate 4.45% 11 Social Services 2.32% 12 Transmission, Culture - 13 Conglomerate - Total 78.24%