Differentiation in Chinese Capital Markets Non-tradable Share Reform in Chinese Capital markets 3500 LI2 Stocks by Fundamentals Shanghai Comp. Index 2000 1500 1998 2000 2001 2002 2003 OR INTERNAL USE ONLY this communication may be reproduced or redistributed ② 中国证券监督管理委员会 CHINA SECUIRITIES E ATDRYCDFOR INTERNAL USE ONLY – No portion of this communication may be reproduced or redistributed. Non-tradable Share Reform in Chinese Capital markets 1000 1500 2000 2500 3000 3500 1998 1999 2000 2001 2002 2003 112 Stocks by Fundamentals Shanghai Comp. Index Differentiation in Chinese Capital Markets Differentiation in Chinese Capital Markets