I. Definition
Assets Custody is a service to safeguard customers' assets under their trust, exercise supervising responsibility and provide relative investment services.

II. Product Introduction
On Feb. 24, 1998, approved by China Securities Regulatory Commission and The People's Bank of China, ICBC became the first custody bank of security investment fund in China. During last eight years, taking healthy and regular development as target, "Integrity and Credibility, Sedulity and Responsibility" as executive standard, ICBC conduct the business in accordance with the responsibilities entrusted by laws and regulations such as Law of People's Republic of China on Securities Investment Fund and Operational Management Regulations of Securities Investment Fund, and requirements of supervisory department, conscientiously safeguard the benefits of assets client, and provide safe, efficient and professional custody service to fund management companies and numerous asset regulatory agencies ,on the basis of strict and scientific risk management and internal control system, regular operation control mode, perfect custody system and powerful marketing capability

(I) Development of Asset Custody Service
By the end of December 2005, the assets under custody by ICBC had exceeded RMB 200 billion, and the annual average growth of custody scale reached 73%. The number of securities investment funds under ICBC custody reached 54, accounting for 32.6% of market share in total assets amount. Meanwhile, the domestic securities investment assets of 3 QFIIs which are Switzerland Credit, Daiwa Security and Dresdner Bank, The Corporate Annuity assets of China Life Insurance Co., Ltd., China Re-insurance Group Co., Huatai Property Insurance Co, China Pacific Life Insurance Co., other large enterprises (group), and several asset securitization products are also under ICBC custody.

In the past eight years, the market share of ICBC asset custody service has been in the leading position, and business range of custody has been continuously expanding, extending from original single securities investment funds to today's many fields such as social insurance, securities, trust, insurance and QFII, etc. Until now, ICBC has established an asset custody service system covering ten categories and fourteen varieties of products, and has established the relationship of mutual promotion and joint development with investment funds and assets management industry.

After being honored as the "Best Custody Bank of China" by Asiamoney and Global Custodian successively in 2004, ICBC again was awarded as the "Best Custody Bank of China" by Global Custodian and The Asset, which indicated the good reputation of ICBC custody service in the global custody industry.

In 2005, ICBC Assets Custody service took the lead to obtain SAS70 Internal Audit International Accreditation, which is a full recognition on the healthy and effective risk management and internal control of ICBC custody service by an independent, fair third party.

(II) Organization Structure & Personal Assignment
ICBC Asset Custody Department is a special functional department engaged in asset custody service, with two subsections in Shanghai and Shenzhen. By now, majority of ICBC branches have possess the ability to provide custody service, of which 29 branches have gained the authorization for handling assets custodian service. ICBC Asset Custody Department is consisted of Comprehensive Management Division,Securities Investment Fund Division, Entrusted Assets DivisionⅠ,Entrusted Assets DivisionⅡ, Global Assets Division, Research and Development Division, Internal Risk Control Division,Information Service Division,Business Operation Center, and Trade Supervision Division.

ICBC Asset Custody Department has 77 personnel, more than 75% of whom possess above three years of fund practitioner experience, and more than 90% of personnel have university degree of above and qualification of fund practitioner, and the managers above department level all have master degree or above or senior technical titles.

(III) Scope of Service
ICBC is willing and able to provide excellent capital market participants with professional consultation and service. The custody scope of service includes:

Basic service
1. Asset custody
2. Capital settlement
3. Investment supervision
4. Financial reports
5. Keeping records
6. QFII business

Value-added service
In accordance with the flow of custody operation, the custody value-added specific services provided include more than twenty varieties of four categories before, during and after transactions, and others. Please contact relevant divisions of ICBC Asset Custody Department if needed.

III. Solution
(I) Cooperation Procedure
The Securities Investment Fund Division, Entrusted Assets DivisionⅠ,Entrusted Assets DivisionⅡ, Global Assets Division of ICBC Asset Custody Department are the windows for ICBC's external contact of various custody businesses. For custody business cooperation of various assets of fund management company, please contact with Securities Investment Fund Division. For custody business cooperation of various assets of insurance company, please contact with Entrusted Assets DivisionⅡ. For other organizations (such as securities company, trust company, finance company and other customers with fund custody needs) who want to establish custody business cooperation with ICBC in the fields of entrusted assets including corporate annuity, social insurance fund, and trust plan, etc., please contact with Entrusted Assets DivisionⅠ. For QFII custody business and QDII custody business cooperation, please contact with Global Assets Division.

After knowing customers' needs, Entrusted Assets DivisionⅠ,Entrusted Assets DivisionⅡ, Global Assets Division will communicate with customers with regard to matters of concern for business cooperation, and arrange relevant operating departments and supervisor to meet with customers. Once cooperative projects are determined, the above divisions will appoint customer managers to take the responsibility of contacting with customers and providing consultation and conceptual design, etc. Meanwhile, Entrusted Assets DivisionⅠalso undertakes partial management responsibilities of branches.

The Business Operation Center of ICBC Asset Custody Department undertakes the function of handling custody business, specifically handles the asset account management, accounting, asset estimation, fund settlement and investment transaction supervision of securities investment fund, QFII assets,QDII assets and other entrusted assets.

The Trade Supervision Division is responsible for supervision of custody assets trading.

The Research and Development Division of ICBC Asset Custody Department is responsible for taking the lead to organize and fulfill the research and development of new custody products, and develop new functions of custody system.

The Information Service Division is responsible for collection of the information of the customers,the market and the macro-policies, and analysis of entrustmeng assets investment.

The Comprehensive Management Division of ICBC Asset Custody Department is responsible for the information release, sales promotion and business training about custody products and business.

The Internal Risk Control Division of ICBC Asset Custody Department is responsible for risk control and verifying legal instrument, and providing relevant business divisions with consultation regarding to law, so as to make all legal instruments more standard and accurate. On this basis, ICBC Legal Affairs Department will carry out verification upon all legal instruments.

In addition, for different business cooperative projects, ICBC will respectively establish different project groups to carry out relevant work, and keep the counterpart negotiation and exchange with customers in the aspects of product research, technical realization, business processing, marketing and planning, and laws, regulations and documents, etc. All departments related with business including technical guarantee department, marketing department, custody department, law and internal control department will participate in relevant projects to jointly guarantee the implementation and achievement of project plan.

(II)Contact Us
1. Securities Investment Fund Division:
Li Zheng Tel: (010) 66108768
Deng Lei Tel: (010) 66106897
Fax: (010) 66107879

2. Entrusted Assets DivisionⅠ:
Yan Qiusheng Tel: (010) 66106882
Gao He Tel: (010) 66108485
Fax: (010) 66107663

3. Entrusted Assets DivisionⅡ:
Zhuang Wei Tel: (010) 6610686891
Lu Jia Tel: (010) 66106908
Fax: (010) 66107663

4. Global Assets Division:
Cui Yan Tel: (010) 66108761
Fan Wei Tel: (010) 66106884
Fax: (010) 66107662

IV. Features & Advantages
1. Powerful Technical Force
Relying on solid technical force, ICBC possesses perfect BCP (Business Contingency Program) and disaster prevention and control center. It supports business information interchange under many communication protocols, realizes the STP (Straight Processing) of custody services including accounting, asset valuation, fund settlement, investment monitoring, and account management, etc., and provides individualized value-added services such as risk analysis, performance evaluation, market information and various reports, etc.

2. Quick Settlement Network
ICBC possesses the safest and most effective RMB and foreign currency fund transfer settlement system in China, which can realize real-time allocating and transfer (account credit within 2 hours) of funds cross the country, with a whole year settlement business volume accounting for more than 50% of the banking system of the whole country.

3. Excellent Customer Base
ICBC provides overall financial service to2.5 million corporate customers, 150 million personal customers and more than 1000 institutional customers. ICBC has established good cooperative relationship with them, and enjoyed extremely high identity degree among its customers.

4. Huge Business Office Resource
ICBC has established more than 18000 business offices and 1610 self-service banks in the Mainland China. In addition, there are 98 oversea agencies and 1250 correspondent banks in the world. It enables ICBC to provide convenient banking service for customers.

5. Solid Local Advantages
ICBC has established good reliance and cooperative basis with relevant supervisory departments, and has good understanding of state policy, Chinese capital market and its service providers. It can assist oversea institutional investors to enter Chinese market and enjoy various advantageous resources more quickly and effectively.

6. Professional Management Team
ICBC is the first commercial bank engaged in custody business in China. It has rich custody products, almost covering all innovative products concerning securities investment fund and other sectors, which occupying larger shares of the custody market, and it has accumulated rich experience in custody business. The ICBC practitioners of custody business are enterprising, energetic and of high comprehensive quality, they are ready to provide customers with satisfactory custody services.