On August 22nd, Group President Mr. Shao Yaliang met with J.P.Morgan Asset Management Global Chairman Paul Bateman. Both parties engaged in a friendly exchange on growth strategy, management system and innovation capability of China International Fund Management Co., Ltd. (or “CIFM”).

Mr. Shao Yaliang first congratulated Paul Bateman on his recent appointment as Director of CIFM. He commented: Over the past two years, SIG and J.P.Morgan Asset Management have both devoted extraordinary efforts in their role as major shareholders and have witnessed CIFM’s stable growth. As a financial institution focusing on asset management, CIFM will need to accelerate its transition into a modern wealth management institution. CIFM will speed up creative development, follow a clear creative strategy, strengthen its market-oriented and client-centered management philosophy, commit itself into product innovation, and design a wide selection of financial products to fulfill the different needs of investors. The company will need to operate under the principle of localization and market-orientation, continuously improve its management system, and further clarify the obligations and rights of shareholders, board of directors and management to ensure each party’s commitment in excellence. The board of directors will put more emphasis on performance appraisal of the company’s management, and build a scientific and market-driven performance appraisal system, including fund performance and shareholder return as major KPIs for management appointment and rewards. The company will encourage management and fund managers to personally hold the funds managed by the company, creating a culture of sharing the risk and return within the company. CIFM will also need to put emphasis on product innovation and investment analysis infrastructure, raise its product development capability, and form an optimized product line, a mature investment style and stable fund performance, in order to assume the position of a market leader. At the same time, CIFM will further clarify its overseas strategy, fully utilize the capabilities of both shareholders, and position its overseas business mainly represented by QFII as a major differentiator of the company.

Mr. Paul Bateman expressed gratitude for meeting with Mr. Shao Yaliang. He commented: Fund performance, innovation capability and brand image are the key evaluation criteria of the comprehensive competitiveness of an asset management institution. Wealth management industry in mature overseas markets has entered an era of diversified portfolio management. CIFM will need to clarify its strategy and map out a clear and measurable mid and long term goal to become a top tier wealth management institution in China. J.P.Morgan Asset Management values this partnership with SIG very highly, and will provide more technical support for CIFM in the areas of investment, marketing and international market experience.

Group Vice President Yang Dehong, General Manager of Financial Business ManagementDepartmentGong Dexiong, J.P. Morgan Funds (Asia) Limited Executive President Yang Qiaolong were present at the meeting.