Third stage: 1999-2008 Third Stage: 1999-2008 January 7 th, 2002: "Guidelines for Corporat tradable and non-tradable shares (split share Nov, 2002: QFIl introduced structure)announced by CSrC ° August2004:“ Security Laws" revised May 30th, 2007: stamp tax increased to 0.3% SME board launched April 24 h, 2008: stamp tax cut to O1% January It, 2005: Approval Approach(enacted Aug 2008: CSRC required that only listed in 2001)replaced by Recommendation companies that distribute cash dividend no ss than 30% of the net income in the recent Jan 24, 2005: stamp tax reduced to o1% years are qualified for refinancing Third stage: 999-2008 Third Stage: 1999-2008 Traded Securities No of a shares listed ° A shares o Convertibles Closed-end funds Open-end Funds ETF(Exchange Traded Fund) SE SZSE-main board SME Board Third stage: 1999-2008 Third Stage: 1999-2008 Total Market Capitalization(in Billion of RMB) Market Capitalization of Tradable Shares(in Billion of RMB Ihh 1191119x0m加c02046 5-31 Third Stage: 1999~2008 — Regulations ◦ January 7th , 2002: “Guidelines for Corporate Governance in Listed Companies” ◦ Nov, 2002: QFII introduced ◦ August 2004: “Security Laws” revised ◦ SME board launched ◦ January 1st , 2005:Approval Approach (enacted in 2001) replaced by Recommendation Approach ◦ Jan.24th , 2005: stamp tax reduced to 0.1% 5-32 Third Stage: 1999~2008 — Regulations ◦ April 29th, 2005:Attempts in integrating tradable and non-tradable shares (split share structure) announced by CSRC ◦ May 30th , 2007: stamp tax increased to 0.3% ◦ April 24th , 2008:stamp tax cut to 0.1% ◦ Aug. 2008: CSRC required that only listed companies that distribute cash dividend no less than 30% of the net income in the recent 3 years are qualified for refinancing 5-33 Third Stage: 1999~2008 — Traded Securities ◦ A shares ◦ B shares ◦ Corporate Bonds ◦ Treasury Bonds ◦ Convertibles ◦ Closed-end Funds ◦ Open-end Funds ◦ ETF (Exchange Traded Fund) ◦ Warrants Third Stage: 1999~2008 — No. of A shares listed 5-34 472 560 639 705 773 827 823 832 850 854 450 499 494 494 491 484 481 464 455 454 38 50 102 202 273 0 100 200 300 400 500 600 700 800 900 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 SSE SZSE-main board SME Board 5-35 Third Stage: 1999~2008 Total Market Capitalization (in Billion of RMB) 0 5,000 10,000 15,000 20,000 25,000 30,000 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 SSE SZSE 5-36 Third Stage: 1999~2008 Market Capitalization ofTradable Shares (in Billion of RMB)