Executive Summary 
Chapter One Historical Development 
1.1 Before 1997: the Unregulated Market 
1.2 1998 to 2002: Sprucing-Up of the Industry 
1.3 2003 - Year of theFund Management 
1.4 2004 : Explosive Growth, But Still A long Way Ahead 
1.5 Comparing China’s Fund Management Industry around the World 

Chapter Two Supervision of Securities Industry 
2.1 China Securities Regulatory Commission (CSRC) 
2.1.1 Basic Functions of the CSRC 2.1.2 Major Responsibilities 
2.1.3 Organization Structure of the CSRC 
2.2 Stock Exchanges 
2.3 China’s Banking System 
2.3.1 Securities Investment Fund Law 
2.3.2 Other New Rules 
2.3.3 Rules on the Establishment of Joint Venture fund Management Companies 

Chapter Three Who Manages the Money? 
3.1 A Quick Look at FMCs 
3.1.1 Where FMCs Are Located 
3.1.2 Size of FMCs 
3.2 Big Players 3.2.1 China Southern Fund Managment Companies 
3.2.2 Hua’an Fund Management Co. 
3.2.3 China Asset Management Co
3.2.4 Boshi Fund Management Co. 
3.2.5 Harvest Fund Management Co. 
3.2.6 E Fund Management Co. 
3.3 Foreign FMCs in China 
3.3.1 The Ways to Set-up JV FMCs 
3.3.2 Number of Funds and Total NAV Managed by JV FMCs. 
3.3.3 Go Beyond 33%, the Story of UBS 
3.4 A Sketch of China’s Fund Managers 
3.4.1 Age and Gender. 
3.4.2 Qualifications 
3.4.3 Fund Management, a High Turnover Career 

Chapter Four Where to Invest? 
4.1 China’s Domestic Stock Markets 
4.1.1 Types of Shares 
4.1.2 An Overview on China’s Domestic Stock Markets 
4.1.3 Recent Development of China’s Stock Markets 
4.2 Fixed Income and Money Markets 
4.2.1 An Overview on China’s fixed income and money markets 
4.2.2 Bond issues and Outstanding Value 4.2.3 Recent Situation 
4.2.4 Popular Stocks 
4.3 Fund Managers Investment Portfolio 
4.3.1 Asset Allocation 
4.3.2 Sector Peference 
4.3.3 Largest Equity Positions 
4.3.4 Largest Bond Positions 
4.3.4 Assets breakdown by Types of Funds (Open-ended Funds) 

Chapter Five Fund Performance 
5.1 Close-ended Funds 
5.1.1 Close-ended Funds, a Marginalized Concept 
5.1.2 Close-ended Funds in 2004 
5.2 Open-ended Funds 
5.2.1 Type of Funds 
5.2.2 NAV per Share 
5.2.3 Returns During Period Held 

Tables and Figures in this Report
Chapter One
Timeline: Development of China’s Fund Management Industry 
Figure 1.1 Expanding Gradually: China’s Fund Management Industry, 1998 - 2002 
Figure 1.3 Number of Funds 
Figure 1.4 Number of Fund management Companies 
Figure 1.5 The Number of Total Units and Total NAV, 1998 to 2004 -
Figure 1.6 Ratio of Total NAV to Market Cap of Tradable Shares 
Table 1.1 The First Five Fund Management Companies, Established in 1998 
Table 1.2 Industry statistics, 1998 - 2002 

Chapter Two
Figure 2.1 Organizational Structure of the CSRC 
Figure 2.2 China’s Financial System 
Figure 2.3 Banking Sector’s Market Shares by Asset, 2003 
Table 2.1 Close-ended Funds Listed on Stock Exchanges 

Chapter Three
Figure 3.1 Number of non-tradable shares and tradable shares (as at end-2003, billion) 
Figure 3.2 Breakdown of Non-tradable Shares (as at end-2003, billion) .
Figure 3.3 Breakdown of Tradable Shares (as at end-2003, billion) 
Figure 3.4 The Market Cap of China’s Domestic Stock Markets (RMB billion) 
Figure 3.5 Ratio of Market Capitalization to GDP, 1992 - 2004 
Figure 3.6 Shanghai Stock Exchange Index and Trading Volume (RMB 100 million)
Figure 3.7 Number of Listed Companies 
Figure 3.8 Sector Distribution of Listed Companies (as at September 30, 2004) 
Figure 3.9 Composition of the Various Industries within the Manufacturing Sector (as at September 30, 2004) 
Figure 3.10 Value of Outstanding Bonds (as at end-2003, RMB billion) 
Table 3.1 China’s Shares Structure 
Table 3.2 Ratio of Market Capitalization to GDP, 1992 - 2004 
Table 3.3 Number of Listed Companies, by Share Capital, in 2003 
Table 3.4 Classification of Listed Companies 
Table 3.5 Top 20 Stocks in terms of Market Capitalization of A-shares 

Chapter Four
Figure 4.1 Comparison of Fund Management Companies (NAV, RMB billion) 
Figure 4.2 Weighting of Big Players, Graphical Representation 
Figure 4.3 Joint Venture FMCs vs. Domestic FMCs (in terms of NAV, RMB billion) 
Figure 4.4 Joint Venture FMCs vs. Domestic FMCs (in terms of number of funds)
Figure 4.5 Geographical Distribution of FMCs (as at September 30, 2004) 
Figure 4.6 Newly Founded FMCs 
Figure 4.7 Number of Newly Founded Joint Venture FMCs 
Figure 4.8 Geographical Distribution of Joint Venture FMCs (as at September 30, 2004) 
Figure 4.9 Asset Allocation of the 34 Fund Management Companies (as at September 30, 2004) 
Figure 4.10 Sector Segmentation of Stocks Held by Fund Management Companies 
Figure 4.11 Weighting of Sector Allocation (% of NAV) 
Figure 4.12 Breakdown of Industries within the Manufacturing Sector (RMB billion) 
Table 4.1 Summary of Joint Venture Fund Management Companies
Table 4.2 Ranking of Fund Management Companies (in terms of NAV) 
Table 4.3 Weighting of Big Players (as at September 30, 2004) 
Table 4.4 Distribution of Funds in terms of NAV (as at September 30, 2004) 
Table 4.5 Ranking of Funds (in terms of NAV) 
Table 4.6 Summary of Asset Allocations (as at September 30, 2004) 
Table 4.7 Sector Distribution of Stocks Held by FMCs (as at September 2004)
Table 4.8 Top 30 Stocks Most Widely Held (as at September 30, 2004) 

Chapter Five
Figure 5.1 Diverging NAV per Share and Trading Price: the Case of Jintai Fund 
Figure 5.2 Decreased Liquidity of Close-ended Funds: the Case of Jintai Fund
Figure 5.3 Variations in NAV of Close-ended Funds in 2004 (%) 
Table 5.1 Closing Price vs. NAV per Share of Close-ended Funds 
Table 5.2 Changes in NAV per Share (between Jan 2, 2004 and Oct 29, 2004)
Table 5.3 Dividends Distributed (between Jan 2, 2004 and Oct 29, 2004)
Table 5.4 Open-ended Funds’ NAV per Share: Rankings 
Table 5.5 Summary of Performance of Close-ended Funds in the First 10 Months of 2004