September 28-- CCB-Principal Asset Management Company, Ltd, jointly established by China Construction Bank (CCB), the Principal Financial Group (the Principal) and China Huadian Group (Huadian), announced today in Beijing that the company commences business officially. Representatives from the People’s Bank of China, the China Banking Regulatory Commission, the China Securities Regulatory Commission, securities companies and fund management companies attended this opening ceremony.

The opening ceremony was presided by President of CCB Chang Zhenming. Chairman of CCB Guo Shuqing, Chairman of the Principal J. Barry Griswell, and Deputy General Manager of Huadian Chen Feihu were present at this ceremony.

Reportedly, the company is headquartered in Beijing, with a registered capital of RMB 200 million. The joint venture is 65 percent owned by CCB, 25 percent owned by the Principal and 10 percent owned by China Huadian Group. Now, CCB has total assets exceeding RMB 4 trillion, and is awarded the Best Bank in China for 2005 by The Banker Magazine of UK and is the only chosen bank with this award among China’s banks for this year. The Principal is a leader in offering individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance and banking through its diverse family of financial services companies. As a member of the Fortune 500, the Principal has $187.8 billion in assets under management and serves some 15.2 million customers worldwide. And China Huadian Group, with the total asset of RMB119.7 billion, is one of the biggest Chinese state-owned power companies.

Experts said, the commercial bank establishing a fund management company can not only push forward the multi-operation of financial institutions, but also help promote the long-term stable and sound development of China’s capital market. As for a commercial bank, entering the fund management sector can improve business income structure, spread operational risks, and provide more financial wealth management tools and services to customers, so that the comprehensive competitiveness of the bank can be enhanced. As to a fund management company, the advanced mechanism, culture and technology of the bank will benefit the company and support the sound growth of the fund sector. And from the perspective of the capital market, with the bank entering into the fund management sector, the institutional investors become stronger, and the stable operation and professional management of the bank will definitely push forward the development of China’s capital market in a sound manner.

Chairman of CCB-Principal Asset Management, Ltd. Jiang Xianzhou said, the company is born under the environment of the rapid development of China’s fund sector as well as the reform of China’s capital market, which is also a historical opportunity for the company. The company will make full use of the advantages and strength of CCB and Huadian in China’s market and refer to the investment management experience of the Principal, so that it can build up an advanced corporate governance structure and scientific internal management mechanism and try its best to make itself a leading professional asset management company in China. In this way, the company makes its own contributions to the sound development of China’s fund sector.

Jiang Xianzhou also said, the company will unswervingly uphold the operation philosophy of ‘There isn’t anything more important than subscribers interests’ in an honest, hardworking and due-diligent manner. The company will stably expand its securities investments, actively explore asset management business including institutional wealth management, and provide quality service to customers by using the sound operation, professional investment and outstanding investment performance.

General Manager of CCB-Principal Asset Management, Ltd. Sun Zhichen said, the company will draw upon the advanced investment expertise of the Principal in line with the practical status of China’s Market to establish a complete and efficient investment management system; as for its marketing and customer service, the company will build up an easy and convenient investment channel for customers via its efficient sales network, and provide a coverall service platform to customers through various modern communication approaches and methods; in terms of risk management, the company will establish a standardized internal control and risk management system covering all lines of its business; as to the products, the company will be committed to offering a scientific fund products portfolio including equity fund, bond fund, and money market fund to customers; on human resources administration, the company will uphold the principle of ‘fair competition and recruiting in public’ and provide more career development opportunities to employees via a good incentive mechanism. The company, guided by a best strategy, guaranteed by a scientific system, and based on an advanced culture, is trying its best to create a sound environment to make itself a leading fund management company in China.