Presentation for National Press Foundation Teh-Hsiu Fu CEO Everbright Pramerica Fund Management Company Shanghai China June 8, 2007

1 Established in April 2004; A joint venture between Everbright Securities Company, Ltd., a subsidiary of China Everbright Group and the investment management business of Prudential Financial, Inc. ; Everbright Pramerica has a registered capital of RMB 160 million with 67% by Everbright Securities and 33% by Pramerica. Current staff number at 59. Introduction of Everbright Pramerica

2 As of June 2007, the company manages four investment funds in China, i.e., Quantitative Core Equity Fund, Dividend Equity Fund, New Growth Equity Fund and Money Market Fund; The fund assets were invested in the Chinese equity and bond markets; Denominated in RMB, the funds were distributed primarily by banks and brokerage firms to Chinese investors; The total AuM of the four funds were RMB 6.63 billion as of May 31, EPF Fund Family

3 Market Background Economy The Chinese economy grew at a rate of around 10% in the last few years, mostly driven by infrastructure investment and domestic consumption needs; Real Estate The government launched several austerity measures in to curb the overheating real estate market especially in Beijing and Shanghai;Currency The government adopted a more flexible foreign exchange mechanism in July 2005 which prompted the RMB to appreciate from the previous level of 8.27 to the current level of 7.65 to 1 US$.

4 Recent Market Development The most significant transformation of the Chinese stock market was the reform program of state-owned shares which began in mid 2005; Record number of retail investors flocked to open security trading accounts, providing fresh capital which lifted the Chinese equity market to record high; Fear of market bubble led many institutional investors to reduce equity exposure in recent weeks.

5 QFII Update The Chinese government introduced the QFII (Qualified Foreign Institutional Investors) program in 2003 in order to allow foreign capital to invest in the Chinese market in an orderly and controlled manner; So far, there were 52 approved foreign institutions to use the QFII quota to invest in China with an approved amount of USD 10 billion; The government recently indicated that the total QFII quota will be increased to USD 30 billion.

6 QDII Update QDII (Qualified Domestic Institutional Investors) program was launched by selected banks, insurance companies and fund management companies with government approval; The program allows Chinese investors to invest in offshore markets, with Hong Kong as the current focus; Investor interest to invest in US or other international markets is modest at this stage due to the hot local equity market and the concern about the appreciating RMB; Overtime, we expect that Chinese investors will be more interested in QDII products as experience in Hong Kong and Taiwan will demonstrate.

7 The Investment Grid Local funds Local bank products Local insurance products Local brokerage products QDII approval needed (RMB to foreign currencies) QFII approval needed (Foreign currencies to RMB) Open Chinese Investors International Investors Chinese Market International Market

8 Fund Market Overview China’s fund Industry has been developed since 1997, and the first open-end fund was launched in 2001; Number of fund companies in existence: 58; There are 34 local companies and 24 joint venture companies, of which 4 are linked with domestic big banks; Foreign partners of the fund companies include: Prudential (US), ING, J.P.Morgan, Fortis, Invesco, Allianz, Paribas, Prudential (UK), UBS, Principal, Franklin Templeton, BMO, CSFB, SG, Deutsche, ABN AMRO, AIG, Merrill Lynch, Schroders, HSBC, etc.

9 As of March 31, 2007, there were 332 funds in the Chinese fund industry, with total assets under management of RMB 1,175 billion; Total AuM of 41 close-end funds were RMB 185 billion, accounting for 16% of total AuM; Total AuM of 291 open-end funds were RMB 990 billion, accounting for 84% of total AuM. Fund Market Overview

10 Fund Market Overview No. of Funds Total assets under management (RMB billion) Dec 2005Dec 2006Mar 2007Dec 2005Dec 2006Mar 2007 Close-end Funds Open-end Funds Total

11 Fund AuM 2002-March

12 Open-end Fund Asset Breakdown As of March 2007 Equity Funds Guarantee Funds Hybrid Funds Bonds Funds Money Market Funds Total Size (RMB billion)

13 Discussion Points – What global areas might China’s new investment fund be looking at? Regions Sectors US Europe Japan Emerging Markets Equities Bonds Money Market Real Estate Commodities Hedge Funds

14 Everbright Pramerica Fund Management Co. Address: 46/F Bund Center, No. 222 Yan An Road (E), Shanghai, China Postcode: Tel: (86) Fax: (86) Website ：