Guiding Opinion on Intensifying Reform of the System for Offering of New Shares

With a view to further enhancing the system for offering of new shares and reinforcing the market constraint mechanism, on June 10 2009, the China Securities Regulatory Commission (the CSRC) issued the Guiding Opinion on Further Reform and Enhancement of the System for Offering of New Shares, initiating reform of the system for offering of new shares. With regards to specific implementation, the reform is to be implemented in stages and progressively improved, and the various reform measures are to be initiated gradually in stages. The measures for the first stage of reform of the system for offering of new shares have already been put in place and the market-oriented reform direction has been widely accepted by the public. The deepening of the offering system reform has become the market consensus and the market conditions for rolling out the next round of reform measures are essentially satisfied. Following intensive study and widely listening to the opinions of market parties and based on the uniform arrangements for the reform, we hereby put forth the measures for the second stage of reform as follows: