Quarterly Highlights 1

Quarterly Highlights 2nd Quarter, 2005

2 Quarterly Highlights

Quarterly Highlights 3

8/F Building B Tongtai Plaza, No.33 Jinrong Street, Beijing, 100032, Email: [email protected] Tel: +86-10-88066988

July 20, 2005

Dear Sir or Madam:

Please find enclosed Quarterly Highlights for the second quarter of 2005, including

ChinaAMC Quarterly News

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 +86 10 8806 6990 and [email protected].

Sincerely yours,

John Li Chief International Business Officer ChinaAMC

4 Quarterly Highlights

ChinaAMC Quarterly News

Successful Launch of ChinaAMC Dividend Fund

Initial IPO Size was RMB 770 Million ChinaAMC Dividend Fund is a hybrid fund, with higher risk than that of bond funds and money market fund, but lower risk than equity funds. The product is targeted to pursue long-term appreciation of the fund assets through investment into stocks issued by listed companies with good cash-dividend distribution capability, sound financial performance, long-term growth potential and rational market evaluation

Asian Bond Fund 2

ChinaAMC was Designated as the Only Fund Manager of ABF2 China Fund

The EMEAP (Executives' Meeting of East Asia and Pacific Central Banks) Group, comprising 11 central banks and monetary authorities in the East Asia and Pacific region, announced on May 12, 2005 the appointment of the fund managers, master custodian and index provider and the completion of the funding of US$2 billion for the Asian Bond Fund 2 (ABF2). The ABF2 comprises a Pan-Asian Bond Index Fund (which is now named as ABF Pan-Asia Bond Index Fund (PAIF)) and eight Single-market Funds.

ChinaAMC was selected as the only fund manager of ABF China Bond Index Fund. The EMEAP Group has allocated RMB 1 billion for this Fund. ABF China Bond Index Fund is an index fund tracking iBoxx ABF China Index. The Fund will invest in sovereign bonds, agency bonds and central bank notes that are issued and traded in both Inter-Bank and Exchange Market in China. The Fund has started investment in June.

ABF China Bond Index Fund will be operated in two phases. In Phase 1, the format of independent account was adopted for investment management. As in Phase 2, the Fund will be in ETF format and listed.

China 50 ETF

Total Outstanding Shares Exceeded 10 Billion Units

The China 50 ETF has been increasing in size since it was listed on the Shanghai Stock Exchange on February 23, 2005 with an initial IPO size of 6.4 billon shares. China 50 ETF is a cost-effective investment vehicle and this advantage has been proven by it rapid growth.

Several factors contributed to the fund’s success including the index whose performance the ETF tracks. SSE 50 Index’s market representation and blue-chip characteristics are continuously

Quarterly Highlights 5 improving, with its outstanding market capitalization in the Shanghai Stock Market increased rapidly to 36.7% as of June 30, 2005 from 31.17% a year ago. The SSE 50 Index has become one of the most important indices in the market. The trading of China 50 ETF is very active, while discount/premium rate and tracking error are well-controlled. The China 50 ETF is well recognized by both retail and institutional investors, including QFIIs. The China 50 ETF provides investors with a good opportunity to purchase the best blue-chip stocks in the Chinese A-share market.

China 50 ETF Warrant

Société Générale issued the first warrant on China 50 ETF in Singapore on July 19, 2005. This call warrant was listed on Singapore Stock Exchange. This is also the first warrant in the world on Chinese A-Share market.

Participating Dealers Adjustment

ChinaAMC announced on August 2, 2005 became one of the Participating Dealers (PDs), while Guolian Securities and Xiangcai Securities would not act as temporary PDs any longer. Since then PDs of the China 50 ETF are:

China Galaxy Securities, Guotai Junan Securities, Shenyin & Wanguo Securities, China Merchants Securities, China Securities, Haitong Securities, Everbright Securities, CITIC Securities, Guangfa Securities, , Beijing Securities, Huatai Securities, United Securities, Changjiang Securities, Shanghai Securities, Zhongyuan Securities and CICC.

ChinaAMC’s 7th Anniversary

Total Dividend Distributed to Fund Investors is RMB 4.6 billion in Past 7 Years

ChinaAMC celebrated its 7th Anniversary on April 9th, 2005. In the past 7 years, ChinaAMC is one of the fund managers that distribute most dividends to investors in China, with cumulative dividends of over RMB 4.6 billion or USD 555.8 million.

Corporate Pension Investment Management Qualification

ChinaAMC among One of Nine Fund Houses Got the Qualification

China's Ministry of Labor and Social Security on August 2, 2005 announced the first batch of firms to obtain the right to manage corporate annuity funds. The annuity funds are part of the country's national insurance system for retirees. A maximum of 20 percent of the voluntary corporate pension can be invested in the stock market.

6 Quarterly Highlights

China 50 ETF Quarterly Report

Long-term Strategic Investment in China’s Strongest Shares: Transparent Access to China’s Growth

Historical Performance

Since China 50 ETF listing April May June 3-month (02/23/2005)

China 50 ETF NAV -0.54% -7.07% 5.03% -2.89% -11.96%

China 50 ETF Market Price -0.76% -6.35% 4.20% -3.15% -12.21%

SSE 50 Index -0.75% -7.44% 3.79% -4.64% -14.47%

SSE Composite Index -1.87% -8.49% 1.90% -8.49% -17.44%

SSE 50 Index Constituent Stocks (as of June 30, 2005)

Code Stock Weighting Code Stock Weighting 600000 Pudong Development Bank 3.39% 600210 Zijiang Enterprise 0.80% 600002 Qilu Petrochem 0.95% 600350 Shandong Infrastructure 1.18% 600004 Baiyun Airport 1.22% 600500 China Petro International 1.08% 600005 Wuhan Steel 3.22% 600569 Anyang Steel 0.86% 600006 Dongfeng Automobile 0.65% 600591 Shanghai Airline 0.44% 600008 Beijing Capital 1.12% 600601 Fangzheng Technology 1.29% 600009 Shanghai Airport 4.96% 600602 Guangdian Electronics 0.82% 600011 Huaneng (China Energy) 1.25% 600609 Jinbei Automot 0.30% 600015 Huaxia Bank 1.86% 600642 Shenneng Energy 2.40% 600016 Minsheng Bank 4.66% 600643 A J Co 0.70% 600018 Shanghai Port Container 3.36% 600649 Raw Water Sup 1.13% 600019 Baosteel 10.14% 600660 Fuyao Glass 1.06% 600020 Zhongyuan Expressway 0.98% 600688 Shanghai Petrochem 1.38% 600021 Shanghai Electricity 0.63% 600705 North Asia Group 0.46% 600026 Zhonghai Ocean Shipping 1.10% 600717 Tianjin Harbor 1.60% 600028 China Petrochem 3.87% 600780 Top Energy Co. Ltd. Shanxi 0.58% 600029 Southern Airline 1.44% 600795 Guodian Power 1.78% 600030 CITIC Securities 1.13% 600808 Maanshan Steel 1.11% 600033 Fujian Expressway 0.96% 600812 North China Pharma 0.46% 600036 China Merchant Bank 7.18% 600832 Oriental Pearl 1.55% 600050 China Unicom 8.75% 600839 Changhong Elec 1.70% 600100 Qinghua Tongfang 1.15% 600879 Long March Launch 0.60% 600104 Shanghai Auto 1.71% 600887 Yili Industrial 1.41% 600171 Shanghai Beiling 0.79% 600895 Zhangjiang Hi-tech Park 0.81% 600205 Shandong Aluminum 0.59% 600900 Changjiang Electricity 7.39%

Quarterly Highlights 7

Price1 and Trading Volume

1200 0.9 Trading Volume[million shares] Price 0.85 1000 0.8 800 0.75 600 0.7 0.65

400 Price (RMB) 0.6 200 0.55

Trading Volume (million shares) 0 0.5 4/1 4/7 4/13 4/19 4/25 4/29 5/12 5/18 5/24 5/30 6/3 6/9 6/15 6/21 6/27

2 Tracking the SSE 50 Index

0.85

0.81

0.77

0.73

SSE 50 Index/1000 0.69 China 50 ETF NAV (RMB)

0.65 4/1 4/7 4/13 4/19 4/25 4/29 5/12 5/18 5/24 5/30 6/3 6/9 6/15 6/21 6/27

3 Premium/Discount

1.80% 1.40% 1.00% 0.60% 0.20% -0.20% -0.60% -1.00% 4/1 4/7 4/13 4/19 4/25 4/29 5/12 5/18 5/24 5/30 6/3 6/9 6/15 6/21 6/27

1. Based on closing price of China 50 ETF. 2. Based on closing price of SSE 50 Index. 3. Based on NAV and closing price of China 50 ETF.

8 Quarterly Highlights

ChinaAMC Fund Family

I. Open-end Fund

ChinaAMC Growth Fund (Equity Fund)

ChinaAMC Large-cap Select Fund (Equity Fund)

ChinaAMC Return Fund (Balanced Fund)

ChinaAMC Dividend Fund (Balanced Fund)

ChinaAMC Bond Fund (Pure Bond Fund)

ChinaAMC Cash Income Fund (Money Market Fund)

II. Exchange Traded Fund

China 50 ETF

III. Closed-end Fund

Xing Hua Fund (2bn)

Xing He Fund (3bn, enhanced index fund)

Xing Ke Fund (0.5bn)

Xing An Fund (0.5bn)

Xing Ye Fund (0.5bn)

Quarterly Highlights 9

Investment Fund Name China AMC Growth Fund (华夏成长基金)

Date of creation : 12/18/2001 Auditor of the Investment Fund : Price Waterhouse Coopers Fund Manager : China AMC Fund Manager Shareholders : Shareholder 1 Shareholder 2 Shareholder 3 Beijing Southwest Beijing Securities State-owned Asset Securities Company Management Co. Company 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 : 5000 RMB

Frequency of the NAV Calculation : - Daily : X - Weekly : - Monthly : Fund Financials 12/31/2003 12/31/2004 06/30/2005 Net Asset Value : 3,076,159,755 2,801,847,979.95 2,056,648,354.35 Number of Shares Issued : 2,974,403,136 2,766,485,142.77 2,229,050,666.10

Investment Scope Domestic Max by issuer (**) - Investment Funds : - - Shares-listed : <80% <10% - Bonds : >=20% - Other (Cash) : <20%

Return (as of 6/30/2005)(***) : YTD 1 Year Period 3 Year Period NAV Growth -8.88％ -6.33% -5.7% SSE Composite Index -14.65% -23.27% -37.62% Rank Among Peers 42/51 25/41 4/5 (*) 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. 10 Quarterly Highlights

ChinaAMC Growth Fund

Asset Allocation Industry Allocation

Asset Type % of Net Asset Value Code Industry Percentage Equity 66.91% Agriculture, Forestry, Fishing and 1.12% Bond and Cash 33.09% 1 Hunting 2 Mining 2.01% 3 Manufacturing, amongst 20.66% Top 10 Equity Holdings Food, Beverage 5.74%

Textile, Apparel, Leather 1.06% Rank Listed Company Percentage Wood Product 0.02% Shanghai International Airport 1 8.22% Paper, Printing - (600009) Petroleum, Chemical Product, 0.29% China Southern Airlines 2 5.85% Plastics, Rubber Company Limited (600029) Electrical Equipment - 3 Suning Appliance (002024) 5.02% Metal, Nonmetallic Mineral 3.33% Financial Street Holding Co. Ltd. 4 4.63% Product (000402) Machinery, Equipment, Meter 3.95% Inner Mongolia Yili Industrial 5 4.32% Medicine, biologic Product 6.27% Group (600887) Other Manufacturing - Zhejiang Hisun Pharmaceutical 6 3.71% 4 Electricity, Gas, Water Supply 2.13% Co. Ltd. (600267) 5 Construction 0.83% China Co., Ltd. 7 3.55% 6 Transport, Storage 18.19% Shenzhen (000002) 7 Information, Technology - Zhejiang Huahai Pharmaceutical 8 1.95% 8 Wholesale and Retail Trade 8.93% Co., Ltd. (600521) 9 Finance, Insurance - Zhong Ke San Huan High-tech 9 1.82% 10 Real Estate 9.17% Co. Ltd. (000970) 11 Social Services 3.17% Shenzhen Overseas Chinese 12 Transmission, Culture - 10 Town Holdings Company 1.60% (000069) 13 Conglomerate 1.23% Total 67.44%

Quarterly Highlights 11

Investment Fund Name China AMC Large-cap Select Fund (华夏大盘精选基金)

Date of creation : 08/11/2004 Auditor of the Investment Fund : Price Waterhouse Coopers Fund Manager : China AMC Fund Manager Shareholders : Shareholder 1 Shareholder 2 Shareholder 3 Beijing Southwest Beijing Securities State-owned Asset Securities Company Management Co. Company

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 08/11/2004 12/31/2004 6/30/2005 Net Asset Value : 1,927,966,142.50 1,160,876,035.77 957,332,852.93 Number of Shares Issued : 1,927,966,142.50 1,157,220,063.63 997,424,222.67

Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : 40%-95% <10% - Bonds : >=5% - Other (Cash) :

Return (as of 6/30/2005)(**) : YTD 1 Year Period 2 Year Period NAV Growth -4.29% - - SSE Composite Index -14.65% - - Rank Among Peers 28/51 - - (*) 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. 12 Quarterly Highlights

ChinaAMC Large-cap Select Fund

Asset Allocation Industry Allocation

Asset Type % of Net Asset Value Code Industry Percentage Equity 73.62% Agriculture, Forestry, Fishing and 2.29% Bond and Cash 26.38% 1 Hunting 2 Mining 3.14% 3 Manufacturing, amongst 22.30% Top 10 Equity Holdings Food, Beverage 0.45%

Textile, Apparel, Leather 1.26% Rank Listed Company Percentage Wood Product - Shanghai International Airport 1 8.40% Paper, Printing - (600009) Petroleum, Chemical Product, 1.07% Zhejiang Hisun Pharmaceutical 2 3.79% Plastics, Rubber Co. Ltd. (600267) Electrical Equipment - Zhejiang Huahai Metal, Nonmetallic Mineral 3 Pharmaceutical Co., Ltd. 3.54% 5.46% Product (600521) Machinery, Equipment, Meter 6.44% China Nonferrous Metal Medicine, biologic Product 7.60% Industry’s Foreign Engineering 4 3.30% Other Manufacturing - and Construction Co., Ltd. 4 Electricity, Gas, Water Supply 5.37% (000758) 5 Construction 6.08% Huaneng Power International, 5 3.06% 6 Transport, Storage 17.43% Inc (600011) 7 Information, Technology 3.01% China United 6 3.01% 8 Wholesale and Retail Trade 6.77% Telecommunications (600050) 9 Finance, Insurance - Beijing Zhong Ke San Huan 7 2.69% High-Tech Co., Ltd. (000970) 10 Real Estate 0.52% Anhui Jianghuai Automobile 11 Social Services 5.64% 8 2.64% Co.,Ltd. (600418) 12 Transmission, Culture - Taiyuan Heavy Machinery 13 Conglomerate 2.48% 9 2.58% (Group) Co., Ltd. (600169) Total 75.02% China Yangtze Power Co., Ltd. 10 2.30% (600900)

Quarterly Highlights 13

Investment Fund Name China AMC Return Fund (华夏回报基金)

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 Beijing State-owned Southwest Beijing Securities Asset Management Securities Company Company Co.

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 12/31/2003 12/31/2004 6/30/2005 Net Asset Value : 3,469,305,145 2,985,660,782.25 2,365,451,643.92 Number of Shares Issued : 3,266,473,984 3,058,992,587.27 2,417,923,158.19

Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : <10% >=80% - Bonds : - Other (Cash) : <20%

Return (as of 6/30/2005)(**) : YTD 1 Year Period 2 Year Period NAV Growth 0.2% 4.6% - SSE Composite Index -14.65% -23.27% - Rank Among Peers 6/27 4/19 -

(*) 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.

14 Quarterly Highlights

ChinaAMC Return Fund

Asset Allocation Industry Allocation

Asset Type % of Net Asset Value Code Industry Percentage Equity 66.23% Agriculture, Forestry, Fishing and 1 0.03% Bond and Cash 33.77% Hunting 2 Mining 3.41% 3 Manufacturing, amongst 22.11% Top 10 Equity Holdings Food, Beverage 14.53%

Textile, Apparel, Leather 0.02% Rank Listed Company Percentage Wood Product 0.02% Shanghai International Airport 1 8.92% Paper, Printing - Co., Ltd. (600009) Petroleum, Chemical Product,

Kweichow Moutai Co. Ltd. 0.23% 2 6.15% Plastics, Rubber (600519) Electrical Equipment - Financial Street Holding Co. 3 5.10% Metal, Nonmetallic Mineral Ltd. (000402) 1.10% Product Inner Mongolia Yili Industrial 4 3.98% Machinery, Equipment, Meter 1.83% Group (600887) Medicine, Biologic Product 4.39% 5 Yunnan Baiyao (000538) 3.96% Other Manufacturing - Offshore Oil Engineering Co., 6 3.40% 4 Electricity, Gas, Water Supply 1.23% Ltd. (600583) 5 Construction 1.49% Shenzhen Chiwan Wharf 7 2.64% 6 Transport, Storage 19.68% Holdings (000022) 7 Information, Technology 2.16% China Merchants Bank Co., 8 2.31% 8 Wholesale and Retail Trade 6.70% Limited (600036) 9 Finance, Insurance 2.50% Yantai Changyu Pioneer 9 2.28% 10 Real Estate 5.10% Wine (000869) 11 Social Services - Dashang Group Co., Ltd. 10 2.26% 12 Transmission, Culture - (600694) 13 Conglomerate 2.11%

Total 66.51%

Quarterly Highlights 15

Investment Fund Name China AMC Bond Fund (华夏债券基金)

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 Beijing Southwest State-owned Asset Securities Beijing Securities Management Co. Company Company

Fee Structure : Fixed (RMB) Variable (%) - Subscription Fee : 0-1.2％ 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 : 5000 RMB

Frequency of the NAV Calculation : - Daily : X - Weekly : - Monthly : Fund Financials 12/31/2003 12/31/2004 6/30/2005 Net Asset Value : 2,131,849,325 1,122,460,747.24 929,019,714.23 Number of Shares Issued : 2,088,372,989 1,135,862,726.05 918,219,379.18

Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : - - Bonds : >=80% - Other (Cash) : <20% Return (as of 6/30/2005)(**) : YTD 1 Year Period 2 Year Period NAV Growth 4.48％ 2.82％ 3.39％ Rank Among Peers 6/13 6/13 4/4 (*) 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.

16 Quarterly Highlights

ChinaAMC Bond Fund

Asset Allocation Sector Allocation Asset Type % of Net Asset Value Bond Instruments 86.20% Code Security Type Percentage Cash and Other Assets 13.80% 1 Treasury Bonds 30.68% 2 Financial Bonds 18.66% 3 Central Bank Notes - Top 5 Bond Holdings 4 Corporate Bonds 6.22%

5 Convertible Bonds 41.94% Rank Bond Instruments Percentage Total 97.49% 1 Bond 010004 7.50% 2 Bond 110036 5.63% 3 Bond 000213 5.46% 4 Bond 010505 5.42% 5 Bond 010207 5.35%

Quarterly Highlights 17

Investment Fund Name China AMC Cash Income Fund (华夏现金增利基金)

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 Beijing State-owned Southwest Asset Management Securities Beijing Securities Co. Company Company

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 09/30/2004 12/31/2004 6/30/2005 Net Asset Value : 4,305,788,312.99 4,771,634,642.17 13,688,884,716.05 Number of Shares Issued : 4,305,788,312.99 4,771,634,642.17 13,688,884,716.05 Investment Scope Domestic Max by issuer (*) - Investment Funds : - - Shares-listed : - - Bonds : >=80% - Other (Cash) : <20%

Return (as of 6/30/2005)(**) : YTD Annualized NAV Growth 2.9104% Rank Among Peers 1/19 (**) 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.

18 Quarterly Highlights

ChinaAMC Cash Income Fund (Money Market Fund)

Asset Allocation

Asset Type % of Net Asset Value Bond Instruments 55.04% REPO 35.35% Cash and Other Assets 9.61%

Top 5 Bond Holdings

Rank Bond Instruments Percentage 1 Bond 050603 8.24% 2 Bond 040210 7.38% 3 Bond 0501029 5.78% 4 Bond 0501022 4.39% 5 Bond 050406 4.38% 6 Bond 040217 4.25% 7 Bond 0401073 2.18% 8 Bond 0501057 2.16% 9 Bond 0401081 2.15% 10 Bond 0501002 1.79%

Bond Sector Allocation

Code Security Type Percentage 1 Treasury Bonds - 2 Financial Bonds 29.07% 3 Central Bank Notes 32.55% 4 Corporate Bonds 2.65% 5 Convertible Bonds - Total 64.26% Floating-rate Bonds with left duration of more than 397 days 18.33%

Quarterly Highlights 19

Investment Fund Name China 50 ETF (上证 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 Beijing State-owned Southwest Beijing Securities Asset Management Securities Company Company Co.

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 12/30/2004 06/30/2005 Net Asset Value : 5,435,331,306 6,962,919,803.36 Number of Shares Issued : 5,435,331,306 9,012,566,757

Investment Scope Domestic - Investment Funds : - - Shares-listed : X Invest mainly in the constituent stocks and proxy stocks of the SSE 50 Index, - Bonds : enhancing with small quantities of new stocks and bonds. - Other (Cash) :

Return (as of 06/30/2005)(*) : Since Listing (02/23/05) NAV Growth -11.96% - - SSE 50 Index -14.47% - - SSE Composite Index -17.44% - - (*) Data source: ChinaAMC and Tianxiang Securities Analysis System.

20 Quarterly Highlights

China 50 ETF

Asset Allocation Industry Allocation

Asset Type % of Net Asset Value Code Industry Percentage Equity 98.25% Agriculture, Forestry, Fishing and 1 - Cash 1.75% Hunting 2 Mining 4.45% 3 Manufacturing, amongst 29.88% Top 10 Equity Holdings Food, Beverage 3.26%

Textile, Apparel, Leather - Rank Listed Company Percentage Wood Product - Baoshan Iron & Steel Co., 1 10.11% Paper, Printing - Ltd. (600019) Petroleum, Chemical Product, 2.24% China United Plastics, Rubber 2 Telecommunications 8.39% Electrical Equipment 3.11% Corporation (600050) Metal, Nonmetallic Mineral China Yangtze Power Co., 16.68% 3 7.41% Product Ltd. (600900) Machinery, Equipment, Meter 3.33% China Merchants Bank Co., 4 7.05% Medicine, Biologic Product 0.46% Limited (600036) Other Manufacturing 0.79% Shanghai International Airport 5 4.96% 4 Electricity, Gas, Water Supply 15.66% Co., Ltd. (600009) 5 Construction - China Minsheng Banking 6 4.52% 6 Transport, Storage 15.84% Corp. Ltd. (600016) 7 Information, Technology 11.27% China Petroleum & Chemical 7 3.74% 8 Wholesale and Retail Trade 1.07% Corporation (600028) 9 Finance, Insurance 18.61% Shanghai Pudong 8 3.42% 10 Real Estate - Development Bank (600000) 11 Social Services - Shanghai Port Container Co., 9 3.32% Ltd. (600018) 12 Transmission, Culture - Wuhan Iron and Steel 13 Conglomerate 2.32% 10 3.07% (Group) Corp. (600005) Total 99.08%

Quarterly Highlights 21

Investment Fund Name Xing Hua Fund (兴华基金) Date of creation : 4/28/1998 Auditor of the Investment Fund : Price Waterhouse Coopers Fund Manager : China AMC Fund Manager Shareholders : Shareholder 1 Shareholder 2 Shareholder 3 Beijing Southwest State-owned Asset Securities Beijing Securities Management Co. Company Company

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 12/31/2003 12/31/2004 6/30/2005 Net Asset Value : 2,582,490,944 2,312,894,444.71 1,914,373,819.36 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 6/30/2005)(***) : YTD 3 Year Period 5 Year Period NAV Growth -5.63％ 10.34％ 35.96％ SSE Composite Index -14.65% -37.62% -44.20% Rank Among Peers 43/54 7/51 1/26 (*) 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.

22 Quarterly Highlights

ChinaAMC Xing Hua Fund

Industry Allocation Asset Allocation Code Industry Percentage Asset Type % of Net Asset Value Agriculture, Forestry, Fishing and 0.55% Equity 68.74% 1 Hunting Bond and Cash 31.26% 2 Mining 4.23% 3 Manufacturing, amongst 17.50% Food, Beverage 4.93% Top 10 Equity Holdings Textile, Apparel, Leather 0.86%

Wood Product 0.02% Rank Listed Company Percentage Paper, Printing 0.52% Shanghai International 1 7.61% Petroleum, Chemical Product, Airport Co., Ltd. (600009) 0.77% Plastics, Rubber China Vanke Co., Ltd. 2 6.47% Electrical Equipment - Shenzhen (000002) Metal, Nonmetallic Mineral Huaneng Power 3 5.50% Product 1.95% International, Inc (600011) Machinery, Equipment, Meter 6.31% Shenzhen Energy Investment 4 4.62% Medicine, biologic Product 1.61% Company Limited (000027) Other Manufacturing 0.54% Inner Mongolia Yili Industrial 5 4.45% 4 Electricity, Gas, Water Supply 12.81% Group (600887) 5 Construction 1.05% China Petroleum & Chemical 6 4.23% 6 Transport, Storage 11.61% Corporation (600028) 7 Information, Technology 3.95% China Merchants Bank Co., 7 4.11% 8 Wholesale and Retail Trade 3.06% Limited (600036) 9 Finance, Insurance 4.11% Anhui Jianghuai Auto Chassis 8 3.36% 10 Real Estate 9.13% (600418) 11 Social Services 1.36% China United 9 Telecommunications Co Ltd 2.49% 12 Transmission, Culture - (600050) 13 Conglomerate - China Yangtze Power Co Ltd Total 69.36% 10 2.41% (600900)

Quarterly Highlights 23

Investment Fund Name Xing He Fund (兴和基金)－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 Beijing Southwest State-owned Asset Securities Beijing Securities Management Co. Company Company

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 12/31/2003 12/31/2004 6/30/2005 Net Asset Value : 3,400,656,822 2,916,479,077.40 2,699,140,128.23 Number of Shares Issued : 3,000,000,000 3,000,000,000 3,000,000,000 Investment Scope Domestic Max by issuer (**) - Investment Funds : - - Shares-listed : <80% <10% - Bonds : >=20% - Other (Cash) : <20%

Return (as of 6/30/2005)(***) : YTD 3 Year Period 5 Year Period NAV Growth -7.46％ -9.44％ -1.17％ SSE Composite Index -14.65% -37.62% -44.20% Rank Among Peers 50/54 35/51 9/26 (*) 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.

24 Quarterly Highlights

ChinaAMC Xing He Fund

Industry Allocation

Asset Allocation Percentage Percentage Code Industry (Active (Index) Asset Type % of Net Asset Value Management) Agriculture, Forestry, Equity 73.95% 1 0.34% 0.64% Fishing and Hunting Bond and Cash 26.05% 2 Mining 4.08% 1.56%

3 Manufacturing, amongst 11.83% 21.07%

Top 5 Equity Holdings (Active Management) Food, Beverage 0.87% 2.86% Textile, Apparel, 0.44% 2.32% Leather Rank Listed Company Percentage Wood Product 0.03% 0.02% 1 Baoshan Iron & Steel (600019) 4.98% Paper, Printing 0.18% 0.89% Huaneng Power International, 4.86% 2 Inc (600011) Petroleum, Chemical Product, Plastics, 1.75% 2.88% Shenzhen Energy Investment 3.07% Rubber 3 (000027) Electrical Equipment 0.56% 0.48% 4 Shanghai Intl Airport (600009) 2.46% Metal, Nonmetallic Inner Mongolia Yili Industrial 4.78% 7.03% 2.00% Mineral Product 5 Group (600887) Machinery, 2.08% 3.69% Equipment, Meter

Medicine, biologic 1.00% 0.91% Product Top 5 Equity Holdings (Index) Other Manufacturing 0.13% - Electricity, Gas, Water 4 3.48% 9.73% Rank Listed Company Percentage Supply China Petroleum & Chemical 5 Construction 0.34% 2.00% 1 3.45% Corporation (600028) 6 Transport, Storage 3.00% 4.45% 2 Baoshan Iron & Steel (600019) 2.68% 7 Information, Technology 1.35% - China Yangtze Power Co Ltd Wholesale and Retail 3 1.11% 8 1.13% 2.06% (600900) Trade China Merchants Bank Co., 9 Finance, Insurance 2.42% - 4 1.01% Ltd. (600036) 10 Real Estate 0.59% 0.33% Huaneng Power International, 11 Social Services 1.43% 2.08% 5 0.86% Inc. (600011) 12 Transmission, Culture 0.15% - 13 Conglomerate 0.80% 0.15% Total 30.95% 44.05%

Quarterly Highlights 25

Investment Fund Name Xing Ke Fund (兴科基金)

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 Beijing Southwest State-owned Asset Securities Beijing Securities Managemet Co. Company Company

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 12/31/2003 12/31/2004 6/30/2005 Net Asset Value : 572,390,266 516,787,512.68 501,415,831.86 500,000,000 500,000,000 500,000,000 Number of Shares Issued Investment Scope Domestic Max by issuer (**) - Investment Funds : - - Shares-listed : <80% <10% - Bonds : >=20% - Other (Cash) : <20%

Return (as of 6/30/2005)(***) : YTD 1 Year Period 3 Year Period NAV Growth 0.1％ 0.25％ 3.11％ SSE Composite Index -14.65% -23.27% -37.62% Rank Among Peers 10/54 13/54 11/51 (*) 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. 26 Quarterly Highlights

ChinaAMC Xing Ke Fund

Asset Allocation

Asset Type % of Net Asset Value Industry Allocation Equity 71.75% Code Industry Percentage Bond and Cash 28.25% Agriculture, Forestry, Fishing and 0.12% 1 Hunting 2 Mining 3.45% Top 10 Equity Holdings 3 Manufacturing, amongst 31.47% Food, Beverage 9.69% Rank Listed Company Percentage Textile, Apparel, Leather 1.35% Shanghai International Wood Product - 1 6.55% Airport （600009） Paper, Printing 1.23% 2 Kweichow Moutai （600519） 5.09% Petroleum, Chemical Product, 1.59% Financial Street Holding Co. Plastics, Rubber 3 4.78% Ltd.（000402） Electrical Equipment - Offshore Oil Engineering Metal, Nonmetallic Mineral 4 2.98% 3.18% (600583) Product Inner Mongolia Yili Industrial 5 2.82% Machinery, Equipment, Meter 6.40% Group (600887) Medicine, biologic Product 8.03% China Yangtze Power Co., 6 2.68% Other Manufacturing - Ltd. (600900) 4 Electricity, Gas, Water Supply 2.68% China Merchants Bank Co., 7 2.34% 5 Construction 0.91% Limited. (600036) 6 Transport, Storage 12.78% 8 Yunnan Baiyao (000538) 2.33% 7 Information, Technology 0.57% Shanghai New World 9 2.19% 8 Wholesale and Retail Trade 7.73% (600628) 9 Finance, Insurance 3.01% Jiangxi Ganyue Expressway 10 2.15% 10 Real Estate 4.78% (600269) 11 Social Services 2.67%

12 Transmission, Culture -

13 Conglomerate 2.16%

Total 72.33%

Quarterly Highlights 27

Investment Fund Name Xing An Fund (兴安基金)

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 Beijing Southwest State-owned Asset Securities Beijing Securities Management Co. Company Company

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 29/12/2007 Minimum Subscription : n/a RMB

Frequency of the NAV Calculation : - Daily : - Weekly : X - Monthly : Fund Financials 12/31/2003 12/31/2004 6/30/2005 Net Asset Value : 517,649,615 496,986,683.23 492,643,697.76 Number of Shares Issued : 500,000,000 500,000,000 500,000,000

Investment Scope Domestic Max by issuer (**) - Investment Funds : - - Shares-listed : <80% <10% - Bonds : >=20% - Other (Cash) : <20%

Return (as of 6/30/2005)(***) : YTD 1 Year Period 3 Year Period NAV Growth -0.88% 2.74% 0.33% SSE Composite Index -14.65% -23.27% -37.62% Rank Among Peers 17/54 10/54 17/51 (*) 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. 28 Quarterly Highlights

ChinaAMC Xing An Fund

Asset Allocation Industry Allocation

Asset Type % of Net Asset Value Code Industry Percentage Equity 72.94% Agriculture, Forestry, Fishing and 0.13% Bond and Cash 27.06% 1 Hunting 2 Mining 4.84% 3 Manufacturing, amongst 26.66% Top 10 Equity Holdings Food, Beverage 10.46%

Textile, Apparel, Leather 0.28% Rank Listed Company Percentage Wood Products 0.09% Shanghai International 1 8.54% Paper, Printing - Airport Co., Ltd. (600009) Petroleum, Chemical Product, - Financial Street Holding Co. 2 4.86% Plastics, Rubber Ltd.（000402） Electrical Equipment - 3 Kweichow Moutai （600519） 4.66% Metal, Nonmetallic Mineral 3.22% Offshore Oil Engineering 4 3.36% Product (600583) Machinery, Equipment, Meter 5.78% Inner Mongolia Yili Industrial 5 3.32% Medicine, biologic Product 6.82% Group (600887) Other Manufacturing - 6 Yunnan Baiyao (000538) 3.03% 4 Electricity, Gas, Water Supply 2.16% 7 Henan Shuanghui (000895) 2.49% 5 Construction 2.47% Sinoma International 8 2.47% 6 Transport, Storage 17.44% Engineering (600970) 7 Information, Technology 4.89% Shenzhen Overseas 8 Wholesale and Retail Trade 2.97% 9 Chinese Town Holdings 2.16% 9 Finance, Insurance 1.68% Company (000069) 10 Real Estate 4.86% China Yangtze Power Co., 10 2.16% 11 Social Services 2.16% Ltd. (600900) 12 Transmission, Culture -

13 Conglomerate 4.14%

Total 74.39%

Quarterly Highlights 29

Investment Fund Name Xing Ye Fund (兴业基金)

Date of creation : 8/18/2000 Auditor of the Investment Fund : Price Waterhouse Coopers Fund Manager : China AMC Fund Manager Shareholders : Shareholder 1 Shareholder 2 Shareholder 3 Beijing Southwest State-owned Asset Securities Beijing Securities Management Co. Company Company

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 14/11/2006 Minimum Subscription : n/a RMB

Frequency of the NAV Calculation : - Daily : - Weekly : X - Monthly : Fund Financials 12/31/2003 12/31/2004 6/30/2005 Net Asset Value : 452,746,736.30 425,190,779.71 410,016,149.59 Number of Shares Issued : 500,000,000 500,000,000 500,000,000

Investment Scope Domestic Max by issuer (**) - Investment Funds : - - Shares-listed : <80% <10% - Bonds : >=20% - Other (Cash) : <20%

Return (as of 6/30/2005)(***) : YTD 1 Year Period 3 Year Period NAV Growth -3.57% -4.07% -10.17% SSE Composite Index -14.65% -23.27% -37.62% Rank Among Peers 27/54 28/54 36/54 (*) 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. 30 Quarterly Highlights

ChinaAMC Xing Ye Fund

Asset Allocation Industry Allocation

Asset Type % of Net Asset Value Code Industry Percentage Equity 69.23% Agriculture, Forestry, Fishing and 0.15% Bond and Cash 30.77% 1 Hunting 2 Mining 4.75% 3 Manufacturing, amongst 32.80% Top 10 Equity Holdings Food, Beverage 9.63%

Textile, Apparel, Leather 1.13% Rank Listed Company Percentage Wood Product 0.10% Shanghai International 8.50% Paper, Printing 0.41% 1 Airport Co., Ltd. (600009) Petroleum, Chemical Product, 7.15% Inner Mongolia Yili Industrial 5.30% Plastics, Rubber 2 Group (600887) Electrical Equipment - Sinoma International 2.96% Metal, Nonmetallic Mineral 3 Engineering (600970) 3.95% Product China Petroleum & Chemical 2.76% Machinery, Equipment, Meter 6.31% 4 Corporation (600028) Medicine, biologic Product 4.12% Financial Street Holding Co. 2.76% Other Manufacturing - 5 Ltd. (000402) 4 Electricity, Gas, Water Supply 2.60% Anhui Liuguo Chemical 2.53% 5 Construction 3.52% 6 Co.,Ltd. (600470) 6 Transport, Storage 16.66% 7 Henan Shuanghui (000895) 2.36% 7 Information, Technology - Sichuan Haite High-tech 2.02% 8 Wholesale and Retail Trade 3.92% 8 (002023) 9 Finance, Insurance 2.09% Shanghai 3F New Materials 2.01% 10 Real Estate 3.90% 9 (600636) 11 Social Services - 10 (000568) 1.96% 12 Transmission, Culture -

13 Conglomerate -

Total 70.38%