Response to Unusual Share Price Movement

The recent increase in the company's closing stock price over three consecutive trading sessions on 19, 20 and 21 Nov 2008 represents a deviation of 20%, thus constituting an unusual price movement.

It is verified that on 12 Nov 2008, the company's application to issue up to RMB 1 bln worth of corporate bonds was conditionally approved by the Issuance Review Committee of the China Securities Regulatory Commission.

The board of directors confirms that other than the aforementioned issues, there are no issues, related to private placements or major asset restructuring, planned for the next three months, which would materially impact the company's operation, nor are there any significant undisclosed issues or related plans, negotiations, intentions or agreements outstanding, pursuant to relevant regulations, nor are there any remaining undisclosed information that would materially impact the company's stock price or the prices of its derivatives.

The China Securities Journal, the Shanghai Stock Exchange and the Shanghai Stock Exchange website (www.sse.com.cn) are the company's designated media for information disclosure. Investors are advised to exercise caution when dealing in the company's shares.

Board of Directors
24 Nov 2008


Source: Shanghai Stock Exchange

Date: 24 Nov 2008

CN01/SS/MR/JW