With the approval of the State Council, the pilot project for agency share transfer in Zhongguancun was officially initiated in January 2006. It is a share transfer platform that is based on the contracts between security companies and the parties concerned and relies on the Shenzhen Stock Exchange, the technical system of China Securities Depository and Clearing Corporation Limited and the service networks of securities companies. The project is an agent for clients to buy or sell the shares of listed companies. Its main function is to provide services of share transfer and private placement of equity for unlisted limited liability companies.

1. Prerequisites for a pilot enterprise: a. It's an unlisted limited liability company registered in Zhongguancun Science Park. b. The company has existed for at least two years. c. It has outstanding performance in the company's main business and a record of continuous operation. d. The company has a sound administrative structure and an operation to the industrial standards. e. Other conditions required by the Securities Association of China.

2. Listing procedure for a pilot enterprise: The listing, quotation and transfer of the shares of unlisted joint stock companies in Zhongguancun Science Park adopt a record system. a. Before a company applies for listing in the agency share transfer system, it must file an application to the competent department (the Administrative Committee of Zhongguancun Science Park) of the Beijing Municipal Government and obtain a letter of confirmation on the qualification of the pilot enterprise. b. Then the securities company investigates its due diligence and issues a reference report. c. A securities trader submits related application materials to the association for record. d. After the recording procedure is completed, the company may have its shares listed in the agency system.

3. System function and transaction procedure: Quotation service is provided for share transfer of the unlisted joint stock companies in Zhongguancun Science Park. The agency share transfer system releases share transfer information and quotations to investors. If the two parties reach the intent of transfer through negotiation, they will entrust a securities company to complete system transaction confirmation. After the confirmation, information will be sent to the securities depository and clearing organization to go through a transfer procedure and capital handover and takeover one by one.

Note: The Administrative Committee of Zhongguancun Science Park grants 200,000 yuan and 500,000 yuan of subsidy to enterprise restructuring and listing in the agency share transfer system.