Regulations Governing Securities Investment Trust Enterprises Article 12-1

When a SITE invests in any enterprise(s) under paragraph 2 of the preceding article and mainland China area securities investment fund management company(ies), the total amount of its equity investments in all such enterprises may not exceed 40 percent of the SITE's net worth, and shall comply with Article 13 of the Company Act. The restriction to 40 percent of its net worth does not apply, however, where the condition of ad hoc approval is met under the proviso to subparagraph 7 of paragraph 1, Article 25 hereof.A SITE shall establish mechanisms for management and risk-assessment in connection with its investment in other enterprises, and shall expressly adopt in its internal control system measures for preventing any conflicts of interest that could arise from such investment, and strictly implement such measures, to ensure that the SITE shall not do anything in conflict with or injurious to the rights and interests of any beneficiary or customer.