Quarterly Highlights 1. Quarterly Highlights. 4th Quarter, 2006

Transcription

1 Quarterly Highlights 1 Quarterly Highlights 4th Quarter, 2006

2 Quarterly Highlights 2 8/F Building B Tongtai Plaza, 33 Jinrong Street Beijing , China lizx@chinaamc.com Tel: February 1, 2007 Dear Sir or Madam: Please find enclosed Quarterly Highlights for the fourth quarter of 2006, including China 50 ETF Quarterly Report 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 October November December 3-month Since China 50 ETF Establishing (12/30/2004) China 50 ETF NAV 7.13% 18.64% 24.23% 57.89% % China 50 ETF Market Price 6.66% 14.84% 26.27% 54.67% N.A. SSE 50 Index 7.00% 19.38% 26.67% 61.81% % SSE Composite Index 4.88% 14.22% 27.45% 52.67% % SSE 50 Index Constituent Stocks (as of December 31, 2006) Code Stock Weighting Code Stock Weighting Pudong Development Bank 4.47% Gan Yue Express Way 0.62% Handan Iron & Steel 0.92% Yantai Wanhua 1.43% Baiyun Airport 0.46% Zhenhua Port Machinery 1.66% Wuhan Iron and Steel 2.56% Sichuang Hongda 0.53% Shanghai Airport 2.31% Jiangxi Copper 0.41% BaoTou Steel 0.81% Jianghuai Automobile 0.45% Huaneng Power 0.52% COSCOL 0.43% Hua Xia Bank 1.50% Kweichow Moutai 3.88% Minsheng Banking 8.69% Tianwei Baobian Electric 0.33% Shanghai Port Container 3.50% Offshore Oil Engineering 1.29% Baoshan Iron & Steel 5.74% Founder Technology 0.59% China Shipping 0.76% Shenergy 1.29% China PetroChem 4.30% Shanghai Raw Water 0.51% Southern Airlines 0.65% Fuyao Glass 0.87% Citic Securities 5.93% Shanghai Petrochem 0.72% China Merchants Bank 9.20% Tianjin Harbor 0.78% Gehua CATV Network 1.16% GD Power 0.74% Poly Real Estate 0.89% Shanghai Oriental Pearl 1.36% China Unicom 5.02% Long March Launch 0.74% Tongrentang 0.47% Yili Industrial 1.27% Tsinghua Tongfang 0.54% Zhangjiang Hi-tech Park 0.52% Shanghai Automotive 1.98% Yangtze Power 3.85% Youngor 1.17% Daqin Railway 2.62% Yanzhou Coal 0.51% ICBC 4.94% ShanDong Aluminium 0.59% Bank of China 3.51%

4 Quarterly Highlights 4 Price 1 and Trading Volume 200 Trading Volume[million shares] Price 1.9 Trading Volume (million shares) Price (RMB) 0 9-Oct Oct Oct-06 7-Nov Nov Nov-06 6-Dec Dec Dec Tracking the SSE 50 Index 2 Since Listing SSE 50 Index/1000 China 50 ETF NAV (RMB) Feb-05 6-Apr May-05 6-Jul Aug Sep Nov Dec Feb-06 4-Apr May-06 4-Jul Aug Sep Nov Dec-06 Premium/Discount % 1.00% 0.00% -1.00% 9-Oct Oct Oct-06 7-Nov Nov Nov-06 6-Dec Dec Dec 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). 4. Based on NAV and closing price of China 50 ETF.

5 Quarterly Highlights 5 ChinaAMC Fund Family I. Open-end Funds ChinaAMC Growth Fund (Equity Fund) ChinaAMC Large-cap Select Fund (Equity Fund) ChinaAMC Return Fund (Balanced Fund) ChinaAMC Dividend Fund (Balanced Fund) ChinaAMC Stable Growth 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 Ke Fund (0.5bn) Xing An Fund (0.5bn) Xing Ye Fund (Delisted)

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 12/31/ /31/ /31/2006 Net Asset Value (RMB) : 2,801,847, ,030,420, ,315,758, Outstanding Units : 2,766,485, ,118,310, ,320,866, Investment Scope Domestic Max by issuer (**) - Investment Funds : - - Shares-listed : <80% <10% - Bonds : >=20% - Other (Cash) : >=5% Return (as of 12/31/2006)(***) : 1 Year Period 3 Year Period 5 Year Period NAV Growth % 114.5% % SSE Composite Index 50.93% 76.99% 63.19% (*) 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 72.27% Bond 18.92% Warrant 1.17% ABS - Cash & Other Asset 7.63% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage Agriculture, Forestry, Fishing and 0.92% 1 Hunting 2 Mining 4.90% 3 Manufacturing, amongst 41.96% Food, Beverage 13.17% Textile, Apparel, Leather 0.08% Wood Product - Paper, Printing - Petroleum, Chemical Product, 6.40% Plastics, Rubber Electrical Equipment 1.41% Metal, Nonmetallic Mineral 10.59% Product Machinery, Equipment, Meter 6.07% Medicine, biologic Product 4.24% Other Manufacturing - 4 Electricity, Gas, Water Supply 0.26% 5 Construction 0.98% 6 Transport, Storage 0.61% 7 Information, Technology 2.86% 8 Wholesale and Retail Trade 7.72% 9 Finance, Insurance 9.49% 10 Real Estate 1.45% 11 Social Services 2.47% 12 Transmission, Culture 2.78% 13 Conglomerate 1.64% Total 78.06%

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 12/31/ /31/ /31/2006 Net Asset Value (RMB) : 1,160,876, ,392, ,980,249, Outstanding Units : 1,157,220, ,592, ,520, Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : 40-95% <10% - Bonds : - Other (Cash) : >=5% Return (as of 12/31/2006)(**) : 1 Year Period 2 Year Period 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.

9 Quarterly Highlights 9 ChinaAMC Large-cap Select Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 87.29% Bond 4.65% Warrant 0.38% ABS - Cash & Other Asset 7.67% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and Hunting 4.10% 2 Mining 5.75% 3 Manufacturing, amongst 53.62% Food, Beverage 2.32% Textile, Apparel, Leather 1.97% Wood Product - Paper, Printing 0.66% Petroleum, Chemical Product, Plastics, Rubber 8.40% Electrical Equipment 0.03% Metal, Nonmetallic Mineral Product 22.88% Machinery, Equipment, Meter 13.14% Medicine, biologic Product 4.23% Other Manufacturing - 4 Electricity, Gas, Water Supply 1.16% 5 Construction 2.52% 6 Transport, Storage 10.11% 7 Information, Technology 7.85% 8 Wholesale and Retail Trade 1.13% 9 Finance, Insurance 1.07% 10 Real Estate 1.16% 11 Social Services 2.81% 12 Transmission, Culture 1.26% 13 Conglomerate 0.88% Total 93.41%

10 Quarterly Highlights 10 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 12/31/ /31/ /31/2006 Net Asset Value (RMB) : 2,985,660, ,195,789, ,963,202, Outstanding Units : 3,058,992, ,134,679, ,020,391, Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : <80% <10% - Bonds : >=20% - Other (Cash) : Return (as of 12/31/2006)(**) : 1 Year Period 2 Year Period 3 Year Period NAV Growth 113.7% % % SSE Composite Index % % 76.99% (*) 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 Return Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 71.19% Bond 18.54% Warrant - ABS - Cash and Other Asset 10.27% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and Hunting 0.39% 2 Mining 5.30% 3 Manufacturing, amongst 30.61% Food, Beverage 12.56% Textile, Apparel, Leather 0.05% Wood Product - Paper, Printing - Petroleum, Chemical Product, Plastics, Rubber 1.91% Electrical Equipment 0.02% Metal, Nonmetallic Mineral Product 8.96% Machinery, Equipment, Meter 5.85% Medicine, Biologic Product 1.21% Other Manufacturing 0.05% 4 Electricity, Gas, Water Supply 2.78% 5 Construction - 6 Transport, Storage 2.15% 7 Information, Technology 2.28% 8 Wholesale and Retail Trade 8.23% 9 Finance, Insurance 13.06% 10 Real Estate 4.41% 11 Social Services 2.89% 12 Transmission, Culture 2.27% 13 Conglomerate 4.10% Total 78.47%

12 Quarterly Highlights 12 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 : 0-1.8% 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 12/31/ /30/ /31/2006 Net Asset Value (RMB) : 535,578, ,101, ,855,102, Outstanding Units : 532,763, ,235, ,181,770, Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : 20%-95% <10% - Bonds : - Other (Cash) : =<80% Return (as of 12/31/2006)(**) : 1 Year Period 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.

13 Quarterly Highlights 13 ChinaAMC Dividend Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 75.07% Bond 4.64% Warrant 0.40% ABS - Cash and Other Asset 19.89% Code Industry Percentage 1 Agriculture, Forestry, Fishing and 2.11% Hunting 2 Mining 4.83% 3 Manufacturing, amongst 32.08% Food, Beverage 2.04% Textile, Apparel, Leather - Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Wood Product 0.22% Paper, Printing 1.84% Petroleum, Chemical Product, 4.00% Plastics, Rubber Electrical Equipment 1.92% Metal, Nonmetallic Mineral 9.59% Product Machinery, Equipment, Meter 6.38% Medicine, Biologic Product 6.09% Other Manufacturing - 4 Electricity, Gas, Water Supply 1.16% 5 Construction 0.14% 6 Transport, Storage 0.01% 7 Information, Technology 8.18% 8 Wholesale and Retail Trade 6.99% 9 Finance, Insurance 15.34% 10 Real Estate 1.51% 11 Social Services 4.18% 12 Transmission, Culture 2.71% 13 Conglomerate 2.67% Total 81.91%

14 Quarterly Highlights 14 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 9/30/ /31/2006 Net Asset Value (RMB) : 2,346,766, ,332,765, Outstanding Units : 2,346,459, ,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 12/31/2006)(**) : YTD NAV Growth 42.76% (*) 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 Stable Growth Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 85.53% Bond 6.41% Warrant - ABS - Cash and Other Asset 8.06% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and - Hunting 2 Mining 3.27% 3 Manufacturing, amongst 42.76% Food, Beverage 9.70% Textile, Apparel, Leather 1.14% Wood Product - Paper, Printing - Petroleum, Chemical Product, 7.37% Plastics, Rubber Electrical Equipment 1.07% Metal, Nonmetallic Mineral 11.53% Product Machinery, Equipment, Meter 9.31% Medicine, Biologic Product 2.64% Other Manufacturing - 4 Electricity, Gas, Water Supply 3.19% 5 Construction 1.15% 6 Transport, Storage 0.51% 7 Information, Technology 4.06% 8 Wholesale and Retail Trade 7.24% 9 Finance, Insurance 17.07% 10 Real Estate 4.50% 11 Social Services 1.32% 12 Transmission, Culture 1.50% 13 Conglomerate 3.09% Total 89.67%

16 Quarterly Highlights 16 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 : 0-1.8% 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 12/31/2006 Net Asset Value (RMB) : 7,126,563, Outstanding Units : 5,119,341, Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : <80% <10% - Bonds : >=20% - Other (Cash) : Return (as of 12/31/2006)(**) : YTD NAV Growth 41.8% SSE Composite Index 66.60% (*) 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 Return II Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 76.09% Bond 19.54% Warrant 0.36% ABS - Cash and Other Asset 4.01% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry 1 Agriculture, Forestry, Fishing and Percentage Hunting 0.25% 2 Mining 3.07% 3 Manufacturing, amongst 35.64% Food, Beverage 11.79% Textile, Apparel, Leather 0.10% Wood Product - Paper, Printing 1.71% Petroleum, Chemical Product, Plastics, Rubber 3.30% Electrical Equipment 0.14% Metal, Nonmetallic Mineral Product 13.17% Machinery, Equipment, Meter 3.25% Medicine, Biologic Product 2.15% Other Manufacturing 0.02% 4 Electricity, Gas, Water Supply 0.75% 5 Construction 0.01% 6 Transport, Storage 0.05% 7 Information, Technology 1.73% 8 Wholesale and Retail Trade 8.76% 9 Finance, Insurance 14.10% 10 Real Estate 7.41% 11 Social Services 3.41% 12 Transmission, Culture 0.46% 13 Conglomerate 3.30% Total 78.97%

18 Quarterly Highlights 18 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 12/31/ /31/ /31/2006 Net Asset Value (RMB) : 1,122,460, ,452,183, ,264,265, Outstanding Units : 1,135,862, ,428,652, ,217,213, Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : - - Bonds : >=80% - Other (Cash) : <20% Return (as of 12/31/2006)(**) : 1 Year Period 2 Year Period 3 Year Period NAV Growth 10.4% 20.47% 18.6% (*) 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 Bond Fund Asset Allocation Asset Type % of Net Asset Value Bond Instruments 78.26% ABS 10.77% Cash and Other Assets 10.98% 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 15.26% 2 Agency Bonds 26.98% 3 Central Bank Notes 4 Corporate Bonds 36.97% 5 Convertible Bonds 21.25% Total %

20 Quarterly Highlights 20 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 12/31/ /31/ /31/2006 Net Asset Value (RMB) : 4,771,634, ,299,686, ,333,624, Outstanding Units : 4,771,634, ,299,686, ,333,624, Investment Scope Domestic Max by issuer (*) - Shares-listed : - - Bonds : >=80% - Other (Cash) : <20% Return (as of 12/31/2006)(**) : 1 Year Period Rank among peers Return Yield 2.04% 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.

21 Quarterly Highlights 21 ChinaAMC Cash Income Fund (Money Market Fund) Asset Allocation Asset Type % of Net Asset Value Bond Instruments 60.87% ABS 1.01% REPO 9.95% Cash and Other Asset 28.18% 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 - 2 Agency Bonds 23.59% 3 Central Bank Notes 11.71% 4 Corporate Bonds 31.16% Total 66.46%

22 Quarterly Highlights 22 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 12/30/ /31/ /31/2006 Net Asset Value (RMB) : 5,435,331,306 6,601,139, ,490,684, Outstanding Units : 5,435,331,306 8,111,566, ,113,566,757 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 12/31/2006)(**) : 1 Year Period 2 Year Period NAV Growth % % SSE 50 Index % % 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.

23 Quarterly Highlights 23 China 50 ETF Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 97.97% Bond - Warrant - ABS - Cash & Other Asset 2.03% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and - Hunting 2 Mining 6.79% 3 Manufacturing, amongst 29.14% Food, Beverage 5.90% Textile, Apparel, Leather 1.35% Wood Product - Paper, Printing - Petroleum, Chemical Product, 2.56% Plastics, Rubber Electrical Equipment 0.32% Metal, Nonmetallic Mineral 13.23% Product Machinery, Equipment, Meter 5.17% Medicine, Biologic Product 0.49% Other Manufacturing 0.13% 4 Electricity, Gas, Water Supply 7.69% 5 Construction - 6 Transport, Storage 11.39% 7 Information, Technology 6.58% 8 Wholesale and Retail Trade 0.39% 9 Finance, Insurance 34.96% 10 Real Estate 0.28% 11 Social Services - 12 Transmission, Culture 0.36% 13 Conglomerate 2.11% Total 99.70%

24 Quarterly Highlights 24 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 12/31/2006 Net Asset Value (RMB) : 2,347,111, Outstanding Units : 1,965,122, 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 12/31/2006)(**) : YTD NAV Growth 19.40% SME Index 21.08% SSE Composite Index 68.32% (*) 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 China SME ETF Industry Allocation Asset Allocation Asset Type % of Net Asset Value Equity 93.90% Bond - Warrant - ABS - Cash & Other Asset 6.10% Top 5 Constituent stocks Percentage Rank Stock Code Percentage % % % % % Top 5 New Issued stocks Percentage Rank Stock Code Percentage % % % % % Constituent New Issued Code Industry stocks stocks Percentage Percentage 1 Agriculture, Forestry, Fishing and Hunting 1.13% - 2 Mining Manufacturing, amongst 54.79% 0.10% Food, Beverage 1.29% - Textile, Apparel, Leather 5.73% - Wood Product 0.60% - Paper, Printing 1.31% 0.02% Petroleum, Chemical Product, Plastics, Rubber 9.22% - Electrical Equipment 10.34% - Metal, Nonmetallic Mineral Product 5.62% 0.03% Machinery, Equipment, Meter 11.60% 0.03% Medicine, Biologic Product 7.24% - Other Manufacturing 1.83% 0.02% 4 Electricity, Gas, Water Supply 1.74% - 5 Construction 1.94% - 6 Transport, Storage 1.85% 1.83% 7 Information, Technology 3.74% - 8 Wholesale and Retail Trade 19.86% - 9 Finance, Insurance % 10 Real Estate Social Services 2.45% - 12 Transmission, Culture Conglomerate 0.05% - Total 87.55% 7.13%

26 Quarterly Highlights 26 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 12/31/ /31/ /31/2006 Net Asset Value : 2,312,894, ,041,295, ,372,440, 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 12/31/2006)(***) : 1 Year Period 3 Year Period 5 Year Period 8 Year Period NAV Growth % % % % SSE Composite Index % 76.99% 63.19% 133% (*) 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.

27 Quarterly Highlights 27 ChinaAMC Xing Hua Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 69.30% Bond 17.81% Warrant 0.06% ABS - Cash and Other Asset 12.84% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage Agriculture, Forestry, Fishing and 0.24% 1 Hunting 2 Mining 6.26% 3 Manufacturing, amongst 37.88% Food, Beverage 8.20% Textile, Apparel, Leather 0.06% Wood Product - Paper, Printing - Petroleum, Chemical Product, 4.34% Plastics, Rubber Electrical Equipment 0.87% Metal, Nonmetallic Mineral 15.45% Product Machinery, Equipment, Meter 7.53% Medicine, biologic Product 1.39% Other Manufacturing 0.04% 4 Electricity, Gas, Water Supply 0.37% 5 Construction 0.24% 6 Transport, Storage 0.51% 7 Information, Technology 0.71% 8 Wholesale and Retail Trade 9.78% 9 Finance, Insurance 13.95% 10 Real Estate 3.66% 11 Social Services 3.54% 12 Transmission, Culture - 13 Conglomerate 1.92% Total 79.06%

28 Quarterly Highlights 28 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 12/31/ /31/ /31/2006 Net Asset Value (RMB) : 2,916,479, ,830,865, ,595,229, 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 12/31/2006)(***) : 1 Year Period 3 Year Period 5 Year Period NAV Growth 97.67% 77.61% 99.75% SSE Composite Index % 76.99% 63.19% (*) 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.

29 Quarterly Highlights 29 ChinaAMC Xing He Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 69.86% Bond 17.96% Warrant 0.02% ABS - Cash and Other Asset 12.16% Top 5 Equity Holdings (Active Management) Rank Stock Code Percentage % % % % % Top 5 Equity Holdings (Index) Rank Stock Code Percentage % % % % % Code 1 Industry Agriculture, Forestry, Fishing and Hunting Percentage (Index) Percentage (Active Management) 0.17% 1.54% 2 Mining 4.51% 1.59% 3 Manufacturing, amongst 6.25% 14.94% 4 Food, Beverage 0.76% 2.55% Textile, Apparel, Leather 0.24% 1.79% Wood Product 0.03% 0.82% Paper, Printing 0.10% 0.02% Petroleum, Chemical Product, Plastics, Rubber 0.77% 0.14% Electrical Equipment 0.21% 0.31% Metal, Nonmetallic Mineral Product Machinery, Equipment, Meter Medicine, biologic Product 2.07% 0.82% 1.47% 2.69% 0.50% 5.77% Other Manufacturing 0.09% 0.03% Electricity, Gas, Water Supply 1.65% 0.61% 5 Construction 0.23% 2.76% 6 Transport, Storage 2.91% 1.93% 7 Information, Technology 0.71% 6.61% 8 Wholesale and Retail Trade 0.67% 9.05% 9 Finance, Insurance 12.61% - 10 Real Estate 0.73% - 11 Social Services 0.38% 0.47% 12 Transmission, Culture 0.12% 0.09% 13 Conglomerate 0.42% 8.16% Total 31.38% 47.74%

30 Quarterly Highlights 30 Investment Fund Name Xing Ke Fund ( ) Date of creation : 4/8/2000 Auditor of the Investment Fund : PriceWaterhouseCoopers 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 : 0.25% - Redemption Fee n/a - Performance Fee : - Type of Fund : Equity Fund(*) - Open-end Fund : - Closed-end fund : X Maturity 31/5/2007 Minimum Subscription : n/a RMB Frequency of the NAV Calculation : - Daily : - Weekly : X - Monthly : Fund Financials 12/31/ /31/ /31/2006 Net Asset Value (RMB) : 516,787, ,427, ,085,016, 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 12/31/2006)(***) : 1 Year Period 3 Year Period 5 Year Period NAV Growth % 98.7% % SSE Composite Index % 76.99% 63.19% (*) 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 Ke Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 65.29% Bond 17.39% Warrant - ABS - Cash and Other Asset 17.32% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and Hunting 0.22% 2 Mining 7.15% 3 Manufacturing, amongst 18.62% Food, Beverage 10.63% Textile, Apparel, Leather - Wood Product - Paper, Printing - Petroleum, Chemical Product, Plastics, Rubber 0.74% Electrical Equipment - Metal, Nonmetallic Mineral Product 5.75% Machinery, Equipment, Meter 0.55% Medicine, biologic Product 0.96% Other Manufacturing - 4 Electricity, Gas, Water Supply - 5 Construction - 6 Transport, Storage 0.38% 7 Information, Technology 3.77% 8 Wholesale and Retail Trade 9.88% 9 Finance, Insurance 18.48% 10 Real Estate 11.49% 11 Social Services 4.63% 12 Transmission, Culture 1.12% 13 Conglomerate 1.15% Total 76.90%

32 Quarterly Highlights 32 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 12/31/ /31/ /31/2006 Net Asset Value (RMB) : 496,986, ,766, ,083,904, 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 12/31/2006)(***) : 1 Year Period 3 Year Period 5 Year Period NAV Growth % % % SSE Composite Index % 76.99% 63.19% (*) 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 An Fund Asset Allocation Industry Allocation Asset Type % of Net Asset Value Equity 65.92% Bond 17.11% Warrant 0.61% ABS - Cash and Other Asset 16.37% Top 10 Equity Holdings Rank Stock Code Percentage % % % % % % % % % % Code Industry Percentage 1 Agriculture, Forestry, Fishing and Hunting 0.07% 2 Mining 6.15% 3 Manufacturing, amongst 36.26% Food, Beverage 8.51% Textile, Apparel, Leather 0.22% Wood Products - Paper, Printing 3.79% Petroleum, Chemical Product, Plastics, Rubber 2.57% Electrical Equipment 1.28% Metal, Nonmetallic Mineral Product 13.92% Machinery, Equipment, Meter 5.62% Medicine, biologic Product 0.35% Other Manufacturing - 4 Electricity, Gas, Water Supply 3.23% 5 Construction - 6 Transport, Storage 1.27% 7 Information, Technology 6.06% 8 Wholesale and Retail Trade 6.74% 9 Finance, Insurance 11.90% 10 Real Estate 5.00% 11 Social Services 1.10% 12 Transmission, Culture - 13 Conglomerate 0.49% Total 78.26%