On the morning of September 25th 2013, a group headed by Mr. TuGuangshao, member of Shanghai Municipal Committee and Executive ViceMayor of Shanghai, visited Sailing Capital Management Co., Ltd. (hereafter referred to as “Sailing Capital”). XuQuan, Deputy Secretary of the CPC Committee of Shanghai Financial Sector and Vice Director of Shanghai Finance Office, as well as officials from General Administrative Office of Shanghai Municipality and Shanghai Finance Office, accompanied them.

In the survey, Mr. TuGuangshao first looked around the office of Sailing Capital, and then had a panel discussion with executives of the company.

Mr. Shao Yaliang, President of SIG and Chairman of Sailing Capital, extended welcome to Mr. Tu and his delegation, and introducedthe management team of Sailing Capital. Mr. Liu Xiaodong, President of Sailing Capital, made a detailed report on the business model, capitalstructure, investment team, and development objectives of Sailing Capital. Both sides conducted extensive exchanges on risk management, regulatorypolicies, investment projects, the internationalization of the RMB currency, etc.

Mr. TuGuangshao said, in the short time after its establishment, Sailing Capital has built a good foundation for its future development in terms of organizational structure, operating model, management mechanism, and investment team building. As a pioneer in building Shanghai into an international financial center and implementing the nation’s new economic strategy, Sailing Capital has successfully facilitated domestic enterprises to enter the international market by managing the RMB international investment and lending fund.

As Sailing Capital plays a critical role in Shanghai’s construction of an international financial center and the nation’s going-out strategy, Mr. Tu made three suggestions on the future development of the company.

Firstly, build solid foundation. Currently, Sailing Capital has been doing well in its overall business. But with a vision for the next several decades, the company needs to further enhance its foundation in team building and system improvement.

Secondly, grow steadily. Sailing Capital has to develop in a sound and solid manner. The pace of building sub-funds needs to be scientific and reasonable. Blindexpansion should be avoided. On the other hand, risk management needs to be reinforced in choosing investment projects. The company should be alert to risky projects and decisive in abandoning bad projects.

Thirdly, grasp opportunities and embrace challenges. Sailing Capital should be responsiveto the changesin the marketby adjusting investment strategies and market layoutwith the advantages being brought to full play .

Last but not least, Mr. Tu required that all municipal government divisions should support the market-oriented operation of Sailing Capital in their supervision. He also expressed that the municipal government is committed to taking proactive role in coordinating the communicationbetween Sailing Capital and Central Ministries of the nation including the Central Bank, so as to obtain more policy support for the development of Sailing Capital.