Quarterly Highlights 1. Quarterly Highlights. 2 nd Quarter, 2007

Transcription

1 Quarterly Highlights 1 Quarterly Highlights 2 nd 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 second 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 April May June 3-month Since China 50 ETF Establishing (12/30/2004) China 50 ETF NAV 18.56% 7.66% 0.42% 28.17% % China 50 ETF Market Price 18.42% 7.63% 0.42% 27.98% N.A. SSE 50 Index 20.52% 6.62% -0.83% 27.43% % SSE Composite Index 20.64% 6.99% -7.03% 20.00% % SSE 50 Index Constituent Stocks (as of June 29, 2007) Code Stock Weighting Code Stock Weighting Pudong Development Bank 7.53% Jiangxi Copper 0.44% Handan Iron & Steel 1.06% Anhui Jianghuai Automobile 0.44% Wuhan Iron and Steel 1.83% Kweichow Moutai 3.31% Shanghai Airport 2.64% Tianwei Baobian 0.62% BaoTou Steel 1.36% Offshore Oil Engineering 1.25% Huaneng Power 2.31% Founder Technology 0.84% Hua Xia Bank 1.55% Shenergy 1.22% Minsheng Banking 5.65% Shanghai Raw Water 0.91% Shanghai Port Container 1.94% Shanghai Petrochem 0.67% Baoshan Iron & Steel 3.33% Tianjin Harbor 1.07% China Shipping 0.80% GD Power 1.00% China PetroChem 2.75% Shanghai Oriental Pearl 0.92% Southern Airlines 0.68% Long March Launch 0.58% Citic Securities 7.49% Yili Industrial 0.94% China Merchants Bank 6.85% Zhangjiang Hi-tech Park 0.65% Beijing Gehua CATV 1.03% Yangtze Power 4.09% Poly Real Estate 0.89% Daqin Railway 2.24% China Unicom 2.81% Industrial Bank 2.07% Tsinghua Tongfang 0.84% Ping An Insurance 4.02% Shanghai Automotive 2.01% Bank of Communications 1.03% Youngor 2.14% ICBC 2.65% Gan Yue Express Way 0.54% China Aluminum 2.37% Yantai Wanhua 1.83% China Life 2.22% Zhenhua Port Machinery 1.66% Bank of China 1.50% Sichuan Hongda 0.80% CITIC Bank 0.62%

4 Quarterly Highlights 4 Price 1 and Trading Volume Trading Volume (million shares) Trading Volume[million shares] 2-Apr Apr Apr-07 8-May May May-07 6-Jun Jun-07 Price Price (RMB) Tracking the SSE 50 Index 2 Since Listing SSE 50 Index/1000 China 50 ETF NAV (RMB) 23-Feb-05 7-Jun Sep Dec Apr Jul-06 6-Nov Feb-07 5-Jun-07 Premium/Discount 2.00% 1.00% 0.00% -1.00% -2.00% 2-Apr Apr Apr-07 8-May May May-07 6-Jun Jun 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 CITIC Securities Beijing 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 6/30/ /31/ /31/2005 Net Asset Value (RMB) : 10,817,357, ,315,758, ,030,420, Outstanding Units : 6,759,290, ,320,866, ,118,310, Investment Scope Domestic Max by issuer (**) - Investment Funds : - - Shares-listed : <80% <10% - Bonds : >=20% - Other (Cash) : >=5% Return (as of 06/30/2007)(***) : YTD 3 Year Period 5 Year Period NAV Growth 66.89% % % SSE Composite Index 42.80% % % (*) 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 70.29% Bond 19.37% Warrant 2.19% ABS - Cash & Other Asset 8.14% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and Hunting - 2 Mining 4.32% 3 Manufacturing, amongst 25.11% Food, Beverage 8.03% Textile, Apparel, Leather 0.66% Wood Product - Paper, Printing 4.38% Petroleum, Chemical Product, Plastics, Rubber 0.08% Electrical Equipment 0.03% Metal, Nonmetallic Mineral Product 1.18% Machinery, Equipment, Meter 9.90% Medicine, biologic Product 0.85% Other Manufacturing 0.01% 4 Electricity, Gas, Water Supply 0.12% 5 Construction 0.67% 6 Transport, Storage 0.28% 7 Information, Technology 7.92% 8 Wholesale and Retail Trade 12.37% 9 Finance, Insurance 8.64% 10 Real Estate 5.92% 11 Social Services 3.07% 12 Transmission, Culture 1.31% 13 Conglomerate 5.58% Total 75.30%

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 Beijing 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 6/30/ /31/ /31/2005 Net Asset Value (RMB) : 3,979,898, ,980,249, ,392, Outstanding Units : 847,628, ,520, ,592, Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : 40-95% <10% - Bonds : - Other (Cash) : >=5% Return (as of 06/30/2007)(**) : 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 88.92% Bond 5.32% Warrant - ABS - Cash & Other Asset 5.77% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and Hunting 1.33% 2 Mining 0.08% 3 Manufacturing, amongst 53.11% Food, Beverage 4.24% Textile, Apparel, Leather 0.65% Wood Product - Paper, Printing 4.01% Petroleum, Chemical Product, Plastics, Rubber 11.83% Electrical Equipment 0.11% Metal, Nonmetallic Mineral Product 16.87% Machinery, Equipment, Meter 11.51% Medicine, biologic Product 1.64% Other Manufacturing 2.25% 4 Electricity, Gas, Water Supply 0.39% 5 Construction 1.42% 6 Transport, Storage 4.51% 7 Information, Technology 4.29% 8 Wholesale and Retail Trade 4.99% 9 Finance, Insurance - 10 Real Estate 19.10% 11 Social Services 2.83% 12 Transmission, Culture 0.20% 13 Conglomerate 0.32% Total 92.57%

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 Beijing 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 6/29/2007 3/31/2007 Net Asset Value (RMB) : 13,102,901, ,160,737, Outstanding Units : 7,758,923, ,277,559, Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : 60-95% <10% - Bonds : 0-40% - Other (Cash) : >5% Return (as of 06/30/2007)(**) : YTD NAV Growth 66.77% SSE Composite Index 42.80% (*) 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 86.72% Bond 5.20% Warrant - ABS - Cash and Other Asset 8.09% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and Hunting - 2 Mining 4.40% 3 Manufacturing, amongst 43.95% Food, Beverage 8.97% Textile, Apparel, Leather 0.01% Wood Product - Paper, Printing 0.38% Petroleum, Chemical Product, 6.63% Plastics, Rubber Electrical Equipment 0.03% Metal, Nonmetallic Mineral 9.75% Product Machinery, Equipment, Meter 15.31% Medicine, Biologic Product 2.87% Other Manufacturing 0.01% 4 Electricity, Gas, Water Supply 1.74% 5 Construction 1.29% 6 Transport, Storage 6.10% 7 Information, Technology 2.11% 8 Wholesale and Retail Trade 11.42% 9 Finance, Insurance 8.67% 10 Real Estate 6.09% 11 Social Services 1.67% 12 Transmission, Culture 0.18% 13 Conglomerate 2.80% Total 90.42%

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 Beijing 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 6/30/ /31/ /31/2005 Net Asset Value (RMB) : 3,750,738, ,963,202, ,195,789, Outstanding Units : 2,524,546, ,020,391, ,134,679, Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : <80% <10% - Bonds : >=20% - Other (Cash) : Return (as of 06/30/2007)(**) : YTD 1 Year Period 2 Year Period NAV Growth 75.88% % % One Year Deposit Rate 0.87% 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 66.66% Bond 18.10% Warrant - ABS - Cash and Other Asset 15.23% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and Hunting 2.45% 2 Mining 5.76% 3 Manufacturing, amongst 36.06% Food, Beverage 4.90% Textile, Apparel, Leather 0.02% Wood Product - Paper, Printing 6.69% Petroleum, Chemical Product, Plastics, Rubber 4.95% Electrical Equipment 0.38% Metal, Nonmetallic Mineral Product 3.31% Machinery, Equipment, Meter 11.28% Medicine, Biologic Product 2.94% Other Manufacturing 1.59% 4 Electricity, Gas, Water Supply 0.67% 5 Construction 2.55% 6 Transport, Storage 3.24% 7 Information, Technology 5.80% 8 Wholesale and Retail Trade 9.47% 9 Finance, Insurance 0.42% 10 Real Estate 3.98% 11 Social Services 3.92% 12 Transmission, Culture 0.08% 13 Conglomerate 0.81% Total 75.20%

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 Beijing 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 6/30/ /31/2006 Net Asset Value (RMB) : 8,226,286, ,126,563, Outstanding Units : 6,830,067, ,119,341, Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : <80% <10% - Bonds : >=20% - Other (Cash) : Return (as of 06/30/2007)(**) : YTD NAV Growth 58.49% SSE Composite Index 0.87% (*) 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 54.75% Bond 14.23% Warrant 0.05% ABS - Cash and Other Asset 30.97% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and Hunting 1.93% 2 Mining 2.26% 3 Manufacturing, amongst 32.76% Food, Beverage 6.35% Textile, Apparel, Leather 0.23% Wood Product - Paper, Printing 2.04% Petroleum, Chemical Product, Plastics, Rubber 4.56% Electrical Equipment 0.36% Metal, Nonmetallic Mineral Product 8.32% Machinery, Equipment, Meter 7.29% Medicine, Biologic Product 3.46% Other Manufacturing 0.14% 4 Electricity, Gas, Water Supply 0.50% 5 Construction 1.64% 6 Transport, Storage 4.06% 7 Information, Technology 2.00% 8 Wholesale and Retail Trade 5.34% 9 Finance, Insurance - 10 Real Estate 5.08% 11 Social Services 2.73% 12 Transmission, Culture 0.12% 13 Conglomerate 0.83% Total 59.25%

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 Beijing 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 06/30/ /31/ /31/2005 Net Asset Value (RMB) : 9,094,641, ,855,102, ,578, Outstanding Units : 4,405,824, ,181,770, ,763, Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : 20%-95% <10% - Bonds : - Other (Cash) : =<80% Return (as of 06/30/2007)(**) : YTD 1 Year Period 2 Year Period NAV Growth 77.78% % % Bench Mark 35.51% 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 86.95% Bond 4.63% Warrant 0.42% ABS - Cash and Other Asset 8.00% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and Hunting 0.70% 2 Mining 7.24% 3 Manufacturing, amongst 33.07% Food, Beverage 3.84% Textile, Apparel, Leather - Wood Product - Paper, Printing 0.48% Petroleum, Chemical Product, Plastics, Rubber 1.22% Electrical Equipment 2.53% Metal, Nonmetallic Mineral Product 6.50% Machinery, Equipment, Meter 15.03% Medicine, Biologic Product 2.50% Other Manufacturing 0.95% 4 Electricity, Gas, Water Supply 2.37% 5 Construction 0.62% 6 Transport, Storage 4.77% 7 Information, Technology 3.34% 8 Wholesale and Retail Trade 11.59% 9 Finance, Insurance 10.28% 10 Real Estate 11.92% 11 Social Services 2.35% 12 Transmission, Culture 0.30% 13 Conglomerate 1.14% Total 89.69%

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 CITIC Securities Beijing 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 6/30/ /31/2006 Net Asset Value (RMB) : 7,342,636, ,332,765, Outstanding Units : 4,947,140, ,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 06/30/2007)(**) : YTD NAV Growth 72.00% Bench Mark 32.27% (*) 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 89.87% Bond 4.70% Warrant 0.33% ABS - Cash and Other Asset 5.09% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and 0.44% Hunting 2 Mining 4.22% 3 Manufacturing, amongst 49.49% Food, Beverage 5.91% Textile, Apparel, Leather 1.56% Wood Product - Paper, Printing 1.99% Petroleum, Chemical Product, 5.05% Plastics, Rubber Electrical Equipment 1.52% Metal, Nonmetallic Mineral 8.00% Product Machinery, Equipment, Meter 17.50% Medicine, Biologic Product 7.72% Other Manufacturing 0.24% 4 Electricity, Gas, Water Supply 0.83% 5 Construction 1.12% 6 Transport, Storage 4.67% 7 Information, Technology 1.08% 8 Wholesale and Retail Trade 9.04% 9 Finance, Insurance 7.88% 10 Real Estate 10.54% 11 Social Services 1.28% 12 Transmission, Culture 0.05% 13 Conglomerate 2.07% Total 92.71%

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 CITIC Securities Beijing 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 6/30/2007 Net Asset Value (RMB) : 34,164,230, Outstanding Units : 32,646,596, Investment Scope Domestic - Investment Funds : - - Shares-listed : 20-95% -Warrants: 0-3% - Bonds : 0-80% -ABS: 0-20% - Other (Cash) : >5% Return (as of 06/30/2007)(**) : YTD NAV Growth 11.58% Bench Mark 5.57% (*) 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 63.38% Bond 3.05% Warrant - ABS - Cash and Other Asset 33.57% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and - Hunting 2 Mining 3.52% 3 Manufacturing, amongst 19.42% Food, Beverage 3.02% Textile, Apparel, Leather 0.18% Wood Product - Paper, Printing 0.27% Petroleum, Chemical Product, 1.20% Plastics, Rubber Electrical Equipment 0.03% Metal, Nonmetallic Mineral 5.51% Product Machinery, Equipment, Meter 8.05% Medicine, Biologic Product 1.01% Other Manufacturing 0.14% 4 Electricity, Gas, Water Supply 1.79% 5 Construction 0.63% 6 Transport, Storage 2.97% 7 Information, Technology 5.00% 8 Wholesale and Retail Trade 6.87% 9 Finance, Insurance 14.74% 10 Real Estate 5.37% 11 Social Services 2.18% 12 Transmission, Culture 0.40% 13 Conglomerate 1.66% Total 64.55%

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 CITIC Securities Beijing 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 6/30/ /31/ /31/2005 Net Asset Value (RMB) : 5,157,284, ,264,265, ,452,183, Outstanding Units : 4,873,523, ,217,213, ,428,652, Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : - - Bonds : >=80% - Other (Cash) : <20% Return (as of 06/30/2007)(**) : YTD 1 Year Period 2 Year Period NAV Growth 7.84% 12.56% 24.59% Bench Mark -2.11% -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 1.13% Bond Instruments 51.47% ABS 2.38% Cash and Other Assets 45.02% 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 30.86% 2 Agency Bonds 18.81% 3 Central Bank Notes 21.82% 4 Corporate Bonds 9.08% 5 Convertible Bonds 2.50% Total 83.08%

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 CITIC Securities Southwest Securities Beijing 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 6/30/ /31/ /31/2005 Net Asset Value (RMB) : 9,643,079, ,333,624, ,299,686, Outstanding Units : 9,643,079, ,333,624, ,299,686, Investment Scope Domestic Max by issuer (*) - Shares-listed : - - Bonds : >=80% - Other (Cash) : <20% Return (as of 03/31/2007)(**) : 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 59.25% ABS 0.44% REPO 14.45% Cash and Other Asset 25.85% Top 10 Bond Holdings Rank Bond Instruments Percentage 1 Bond Bond Bond Bond Bond Bond Bond Bond Bond Bond % 8.14% 6.74% 4.05% 3.11% 2.95% 2.49% 2.18% 2.14% 2.08% Sector Allocation Code Security Type Percentage 1 Treasury Bonds - 2 Financial Bonds 19.63% Policy Financial Bonds 11.36% 3 Central Bank Notes 12.22% 4 Corporate Bonds 44.66% Total 76.51%

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 Beijing 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 6/30/ /31/ /31/2005 Net Asset Value (RMB) : 5,981,364, ,490,684, ,601,139, Outstanding Units : 2,066,566,757 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 06/30/2007)(**) : YTD 1 Year Period 2 Year Period NAV Growth 64.15% % % SSE Composite Index 42.80% % % SSE 50 Index 61.52% % % (*) 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 91.54% Bond - Warrant - ABS - Cash & Other Asset 8.46% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and - Hunting 2 Mining 6.35% 3 Manufacturing, amongst 22.36% Food, Beverage 3.64% Textile, Apparel, Leather 2.22% Wood Product - Paper, Printing - Petroleum, Chemical Product, 2.74% Plastics, Rubber Electrical Equipment 0.01% Metal, Nonmetallic Mineral 8.40% Product Machinery, Equipment, Meter 5.34% Medicine, Biologic Product - Other Manufacturing - 4 Electricity, Gas, Water Supply 8.03% 5 Construction 0.01% 6 Transport, Storage 10.34% 7 Information, Technology 5.03% 8 Wholesale and Retail Trade - 9 Finance, Insurance 38.04% 10 Real Estate 0.79% 11 Social Services - 12 Transmission, Culture 1.23% 13 Conglomerate 1.94% Total 94.11%

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 Beijing 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 6/30/ /31/2006 Net Asset Value (RMB) : 3,729,923, ,347,111, Outstanding Units : 1,770,461, ,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 06/30/2007)(**) : YTD 1 Year Period NAV Growth 76.47% % SME Index 72.28% 89.35% SSE Composite Index 42.80% % (*) 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 94.99% Bond 0.14% Warrant - ABS - Cash & Other Asset 4.88% 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 2.34% - 2 Mining % 3 Manufacturing, amongst 61.47% 0.15% Food, Beverage 0.94% - Textile, Apparel, Leather 5.70% - Wood Product 0.34% - Paper, Printing 3.33% - Petroleum, Chemical Product, Plastics, Rubber 10.97% 0.02% Electrical Equipment 8.83% 0.03% Metal, Nonmetallic Mineral Product 8.29% 0.02% Machinery, Equipment, Meter 11.00% 0.03% Medicine, Biologic Product 9.91% - Other Manufacturing 2.15% 0.04% 4 Electricity, Gas, Water Supply Construction 1.62% 0.03% 6 Transport, Storage 0.94% 0.03% 7 Information, Technology 3.96% - 8 Wholesale and Retail Trade 22.51% - 9 Finance, Insurance Real Estate % 11 Social Services 1.95% - 12 Transmission, Culture Conglomerate 0.49% - Total 95.28% 0.31%

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 Beijing 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 6/30/ /31/ /31/2005 Net Asset Value : 5,803,314, ,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 06/30/2007)(***) : YTD 2 Year Period 5 Year Period 8 Year Period NAV Growth 64.64% % % % SSE Composite Index 42.80% % % % (*) 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 66.93% Bond 18.20% Warrant - ABS - Cash and Other Asset 14.87% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and Hunting - 2 Mining 2.95% 3 Manufacturing, amongst 27.92% Food, Beverage 7.74% Textile, Apparel, Leather 0.01% Wood Product - Paper, Printing 0.32% Petroleum, Chemical Product, Plastics, Rubber 5.66% Electrical Equipment 0.07% Metal, Nonmetallic Mineral Product 5.80% Machinery, Equipment, Meter 6.93% Medicine, biologic Product 1.22% Other Manufacturing 0.17% 4 Electricity, Gas, Water Supply 0.50% 5 Construction 1.35% 6 Transport, Storage 3.61% 7 Information, Technology 3.37% 8 Wholesale and Retail Trade 8.41% 9 Finance, Insurance 11.27% 10 Real Estate 10.97% 11 Social Services 1.71% 12 Transmission, Culture 1.96% 13 Conglomerate 1.33% Total 75.35%

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 Beijing 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 6/31/ /31/ /31/2005 Net Asset Value (RMB) : 7,835,697, ,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 06/30/2007)(***) : YTD 2 Year Period 7 Year Period NAV Growth 63.33% % % SSE Composite Index 42.80% % 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 67.17% Bond 18.33% Warrant - ABS - Cash and Other Asset 14.50% Top 5 Equity Holdings (Active Management) Rank Stock Code Percentage % % % % % Top 5 Equity Holdings (Index) Rank Stock Code Percentage % % % % % Code 1 Industry Percentage (Index) Percentage (Active Management) Agriculture, Forestry, Fishing and Hunting 0.06% 1.05% 2 Mining 1.50% 1.03% 3 Manufacturing, amongst 11.01% 19.37% 4 Food, Beverage 2.12% 2.80% Textile, Apparel, Leather 2.43% 0.01% Wood Product - - Paper, Printing % Petroleum, Chemical Product, Plastics, Rubber 0.76% 1.79% Electrical Equipment 0.15% 0.14% Metal, Nonmetallic Mineral Product 3.95% 0.90% Machinery, Equipment, Meter 1.38% 8.88% Medicine, biologic Product 0.21% 4.52% Other Manufacturing % Electricity, Gas, Water Supply 2.35% 0.58% 5 Construction % 6 Transport, Storage 2.80% 1.03% 7 Information, Technology 1.37% 5.10% 8 Wholesale and Retail Trade 0.88% 7.75% 9 Finance, Insurance 7.76% 0.76% 10 Real Estate 2.06% 2.38% 11 Social Services 0.60% 1.36% 12 Transmission, Culture 0.28% 1.32% 13 Conglomerate % Total 30.67% 45.10%

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 Beijing 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 6/30/ /31/ /31/2005 Net Asset Value (RMB) : 1,520,497, ,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 06/30/2007)(***) : YTD 1 Year Period 5 Year Period NAV Growth 68.84% % % SSE Composite Index 42.80% % % (*) 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 60.25% Bond 17.52% Warrant 1.95% ABS - Cash and Other Asset 20.27% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and Hunting - 2 Mining 5.05% 3 Manufacturing, amongst 37.57% Food, Beverage 8.36% Textile, Apparel, Leather - Wood Products - Paper, Printing 2.81% Petroleum, Chemical Product, 2.22% Plastics, Rubber Electrical Equipment 0.06% Metal, Nonmetallic Mineral 4.75% Product Machinery, Equipment, Meter 12.72% Medicine, biologic Product 6.65% Other Manufacturing - 4 Electricity, Gas, Water Supply - 5 Construction 0.07% 6 Transport, Storage 6.13% 7 Information, Technology 6.70% 8 Wholesale and Retail Trade 6.59% 9 Finance, Insurance 5.40% 10 Real Estate 1.78% 11 Social Services 0.10% 12 Transmission, Culture 1.42% 13 Conglomerate 1.69% Total 72.52%