1. In China,the private enterprise has become an important component of the national economy. Many excellent private enterprisers have obtained the absolute or relative control powers in some listed companies through public offering or buying shell (买壳) listing,which have been the important members of Shanghai Stock Exchange and Shenzhen Stock Exchange. As Chinaentering WTO,capital globalization,and Chinaprivate firms becoming more and more influential,there is urgent need to indicate the performance of the private listed companies objectively in order to meet the diversifyiag investment demands of the numerous investors all over the world to the best of our abilities. Therefore,the investment service department of Chinaprivate firms of the Shuang Bao Liang Investment Corporation of Shengzhen compiled the SBL(CN) P-share Composite Index and SBL (CN) P-share Component Index...

　2. Riyin Huabao(瑞银华宝) company compiled and publicized the Chinap-share component index (including Hong Kong,Singapore and U.S.) which is very welcomed by the foreign fund managers,specially institutional investors (see ,June 2002 ). At the same time,we should note that the Chinap-share component index does not include the private listed companies in Shanghai Stock Exchange and Shenzhen Stock Exchange,so it is not proper for the investors who want to invest in Chinasecurities market. The SBL(CN) P-share Composite Index and SBL (CN) P-share Component Index reflect the development of the Chinaprivate listed companies comprehensively. So for the investors both here and abroad,specially the foreign institutional investors,these both indexes are agreat help in understanding the development of Chinaprivate enterprises and making rational investment decisions in Chinaprivate firms.

　　3. Because of the historical reasons,the stock rights of the companies listed in the Shanghai Stock Exchange and Shenzhen Stock Exchange are artificially divided into circulating shares and non-circulating shares. And The SBL (CN) P-share Composite Index and SBL (CN) P-share Component Index are both value-weighted indexes. So we use the total equity capitalization(including circulating shares and non-circulating shares) as the weights to calculate the SBL (CN) P-share Composite Index. Correspondingly,we use the circulating stocks capitalization as the weights to calculate the SBL(CN) P-share Component Index. We think that this handling can truly indicate the full views and the performances of the private listed companies in Chinasecurities market,and it also is favorable to maintain the continuance and stability of these indexes when the non-circulating stocks become circulating in the future.

　　4.We believe that the SBL (CN) P-share Composite Index and SBL (CN) P-share Component Index must be able to more and more scientific,representative and authoritative by our persisting efforts and general public's supports and encouragements;we also believe that the investment instruments that base on these indexes must be developed in the near future and become an important reference for numerous investors at home and abroad as they making investment decisions. Let us make great efforts all together to accelerate the development of the capital markets in big Chinacircle(大中华圈).

　　The description of compiling the component index series of the listed Private-owned enterprises of SBL (overseas)

　　With our own professional power as well as the supports from our international strategic partners,Shenzhen Shuangbaoliang (SBL) Investment Co.,Ltd create aseries of products and services within one year,such as “the component index of the SBL New York Private-owned enterprises”,“the component index of The SBL NASDAQ Private-owned enterprises”,“the component index of the SBL Tokyo Private-owned enterprises”,“the component index of The SBL Singapore Private-owned enterprises”,““the component index of The SBL London Private-owned enterprises”,“the component index of The SBL Hong Kong Private-owned enterprises”,“the component index of The SBL Toronto Private-owned enterprises”,

　　the series

　　These series of products are compiled by the investment service department of China’s private-owned enterprises of Shenzhen Shuangbaoliang (SBL) Investment Co.,Ltd. We inspected the listed private-owned enterprises of New York stock exchange,NASDAQ stock exchange,Tokyo stock exchange,Singapore stock exchange,London stock exchange,Hong Kong stock exchange,Toronto stock exchange and selected the sample stocks which are the most representatives of the market in 　　these seven stock exchanges for calculating and take circulated capital stock as the weighted stock index and adopt the liquid market value of June 30 of 2006 as the index & base and the index of the base period is decided to be 1000P. The followings are the description of compiling the index series of SBL New York private-owned enterprises,SBL NASDAQ private-owned enterprises,SBL Tokyo private-owned enterprises,SBL Singapore private-owned enterprises,SBL London private-owned enterprises,SBL Hong Kong private-owned enterprises,SBL Toronto private-owned enterprises.

　　1、the private economy has played an important part in the national economy. There is apopular saying goes like in China:“when the kingdom is divided into three part,there must be one part that I can own”and lots of excellent private-owned enterprises have already gained the shareholding or the relative

　　shareholding of the listed companies viathe stock exchanges of New York,Nasdaq,Tokyo,Singapore,London,Hongkong,Toronto or by means of backdoor listing,they have already become the part of all the listed companies in the above mentioned stock exchanges. With china’s entry to WTO,the international capitals will integrate with one another and the private-owned enterprises will developed greatly,therefore,there is an urgent demand for the track and the trend of the development of the listed private-owned enterprises which are reflected objectively in the stock exchanges of New York,Nasdaq,Tokyo,Singapore,London,Hongkong,Toronto in order to meet the demands of the investors in domestic and overseas who prefer the diverse investment to the best of our abilities. And that’s reason why our investment service department compiled these series of products such as “SBL New York Private Enterprises (PE) index”,“SBL NASDAQ PE index”,“SBL Tokyo PE index”,“SBL Singapore PE index”,“SBL London PE index”,“SBL HongKong PE index”,“SBL Toronto PE index”and you can enjoy these products and services in our websites at www.SBL52.com (Chinese and English version) and www.ebtob.cn( China’s PE Ebtob)

　　2、The index series,“SBL New York Private Enterprises (PE) index”,“SBL NASDAQ PE index”,“SBL Tokyo PE index”,“SBL Singapore PE index”,“SBL London PE index”,“SBL HongKong PE index”,“SBL Toronto PE index”,can reflect the development of the China’s Private-owned enterprises listed in the above mentioned seven overseas stock exchanges in comprehensive way. It is helpful for the domestic and overseainvestors especially The QDII institutions in overseas to have afull understanding of the developments of the China’s private-owned enterprises for making the rational strategies of the investment.

　　3. ”The journey of athousand miles begins beneath your feet!”,we firmly believe that our index series,“SBL New York Private Enterprises (PE) index”,“SBL NASDAQ PE index”,“SBL Tokyo PE index”,“SBL Singapore PE index”,“SBL London PE index”,“SBL HongKong PE index”,“SBL Toronto PE index”,will be more scientific,representative and authoritative with our constant efforts and your supports. And we will develop the investment tools correspondingly in order to offer an important reference for the overseas and domestic investors to make an important investment strategy as well as promote the development and the progress of the capital markets in big Chinacircle.