Subsidiary's Capital to be Increased

At the 14th Meeting of the 4th Board of Directors and the 7th Meeting of the 4th Board of Supervisors, both held on 18 Aug 2008, the following proposals were examined and approved:

1. the 2008 Semiannual Report and its Abstract
2. a special report on the deposit and use of raised funds
3. a joint liability guarantee with a term of no more than one year provided by Wuxi Puhui Investment Development Co., Ltd., of which a 90% stake is held by the company, on a loan of no more than 80 mln for Shanghai Puxing Investment Development Co., Ltd., of which a 93.41% stake is held by the company
4. to increase the capital of Shanghai Pudong Development Group Finance Co., Ltd.
5. to revise management rules for information disclosure

As suggested by Shanghai Pudong Development (Group) Co., Ltd., the largest shareholder of the company, the board of directors agreed to submit proposal 4 to the 1st 2008 Extraordinary General Meeting of Shareholders as an interim proposal for examination and consideration for approval.

Board of Directors and Board of Supervisors
20 Aug 2008


Source: Shanghai Stock Exchange

Date: 20 Aug 2008

CN01/CJ/JL/BT/KM