Guotai Jinying Growth Securities Investment Fund

Profile
Transaction code: 020001
Date of establishment: May 8, 2002
Size: 398 million
Type: Contract type open-end
Fund trustee: Bank of Communications

Investment Conception
Market efficiency determines the analysis method, market efficiency determines the investment strategy, the rotary investment strategy is the magic weapon, which can obtain the extra profit and the financial engineering is the available tool of integrating multiple analysis methods with the investment strategy.

Fund Manager’s Comment
From the investment effect, the investment policy of Jingying Fund corresponded to its investment performance and it reached our anticipative aim in the main. The market will face many uncertain factors, and the larger market variables mean the larger market risks and investment opportunities. The Fund adopts the relatively active investment strategy as a whole in order to answer for the larger market variables and complex value-estimation standard system. We plan to increase the force on band operation, keep the relatively steady combination structure, pay attention to the fluidity and flexibility of combination, steady participate in the new stick bid issue, purse the average profit of market, hold and intensify investment thought of risk management based on improving the research on basic surface.

Investment Objective
The investment objective of the fund is to achieve the fund’s assets growth in the medium and long term which is mainly subject to share economy growth success and investment on growth public company, on the premise of ensuring the fund’s asset safety and mobility in order to maintain a lower inherent risk of investment

Investment Strategy
The Fund seeks enhanced investment returns by following a top-down approach to assets and industries allocation and a bottom-up approach to stock selection. The fund assets proportion of stock assets investment is 60%-95%, bond assets investment is 0-35%, and cash or government bond maturity within one year is no less than 5%. The proportion of medium and long-term stock investment exceeds 80% against 20% for short term.

In its recent half year report(2007), It is indicated that PLICC (People’s Life Insurance Company of China), Dare Technology Co.,Ltd., China Yangtze Power Co., Ltd., Shanxi Xishan Coal and Electricity Power Co.,Ltd., and Guomai Technologies,Inc. were specially focused on made the large contribution to the increase of net value.