(Issued by the China Securities Regulatory Commission on May 19 2008.)

Notice of the CSRC [2008] No.22

Article 12 of the Measures for the Administration of Initial Public Offerings of Shares and the Listing Thereof (Order of the CSRC No.32; the “IPO Measures”) requires that no major change shall have occurred in an issuer’s core business during the most recent three years. Recently, there have been circumstances where, during the most recent three years (the Reporting Period), certain companies that have applied for an initial public offering of shares and the listing thereof (Issuers) have reorganized identical, similar or related businesses under the same corporate controller, and numerous Issuers have asked whether such circumstances are in compliance with the aforementioned requirement of the IPO Measures. After consideration, we are of the opinion that:

1. Many reorganizations of identical, similar or related businesses under the same corporate controller by an Issuer are market acts effected by an enterprise group for the purpose of realizing an overall offering and listing of the core business, reducing management costs, leveraging the advantages of business synergies and enhancing the enterprise’s economies of scale. From a capital market perspective, the reorganization and integration by an Issuer of businesses under the same corporate controller that are identical, similar or related to its own prior to an offering and listing is helpful in avoiding intra-industry competition, reducing affiliated transactions, optimizing corporate governance, ensuring compliant operation and has a positive role in enhancing the quality of listed companies, optimizing the resource allocation function of capital markets, protecting the lawful rights and interests of investors, particularly small and medium investors, and promoting the healthy and stable development of capital markets.