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English translation of Market Close Summary by Guotai Junan (Hong Kong), translated by Michael Shea Apr. 30, 2007 (Monday) The People Bank of China, the central bank in the PRC, announced an increase in the required reserve ratio of banks engaged in deposit business, thus sparking across-the-board sell-off of Hong Kong stocks. In morning session, the H-Share Index had ever tumbled over 200 points to hit 9,918 points. The Hang Seng Index also faced heavy selling pressure and tried to reach the threshold of 20,100 points. However, strength of the mainland stock markets remained unchanged, with Shanghai Composite Index closing over 2% to breach the barrier of 3,800 points. The Hang Seng Index held steady in the afternoon, and narrowed the losses to 106 points or 1.05% to stay at the 10,000-point mark. The HSI edged down 208 points to 4-week low level of 20,319 points. Financial markets on the Mainland will close across the board from May 1 to May 7. Turnover at midday was thin today, with trading volume falling drastically 22% to less than HK$50 billion. May Hang Seng Index futures traded at a 224-point discount to cash and closed at 20,095 points. May H-Share Index futures significantly traded at a 125-point discount to cash and dived to near the threshold of 9,900 points. As for blue chip stocks, HSBC Holdings (0005) closed 0.14% lower at HK$144.30. China telecommunications plays tumbled broadly. China Mobile Limited (0941) recorded a 1.04% decline again. China Netcom (0906) and China Unicom (0762) also dipped 2.62% and 1.88%. Utilities plunged heavily on this trading day – CLP Holdings (0002) and Hongkong Electric (0006) slid 2.38% and 2.80% respectively; Hong Kong and China Gas (0003) also slipped 0.64%. China financial and property counters were down amid sell-off, as the PRC Government has begun introducing macroeconomic control measures by increasing the required reserve ratio of banks. Large bank stocks extended the recent sluggish performance. China Construction Bank (0939) and Bank of Communications (3328) slumped 1.24% and 1.43%, respectively. ICBC (1398), China Merchants Bank (3968) and Bank of China (3988) also 1 closed 1.15%, 0.82% and 0.77% lower, respectively. CITIC International Financial Holdings (0183), which holds a 15% stake in China CITIC Bank (0998), kept falling, down 1.82%. Among insurance stocks, China Life Insurance (2628) and PICC Property & Casualty (2328) sank 1.81% and 1.87%, respectively. Ping An Insurance (2318), which announced satisfactory first-quarter results last Friday, also inched down 0.59%. In addition, Anhui Conch Cement (0914), China’s largest cement manufacturer, issued additional A shares to the controlling shareholder and connected party to acquire assets; the connected transaction was granted approval by the China Securities Regulatory Commission. Trading in shares of Anhui Conch Cement (0914) was suspended today. There were both gainers and losers in 2 new stocks, which saw their trading debut last week. China CITIC Bank (0998) (601998.SS) was trading for the 2nd day. H-Share of China CITIC Bank closed down 1.65% to end at HK$6.57, up 12.12% compared with its IPO price of HK$5.86. A-Share of China CITIC Bank, whose first-day performance was buoyant, retreated 9.06% to finish at Rmb10.34, up 78.28% compared with its IPO price. China Molybdenum Co., Ltd. or CMOC, (3993) was in favor continuously, and continued to gain, up 4.87%, to HK$12.48, up 83.53% compared with its IPO price. Eventually, the Hang Seng Index slipped 208 points or 1.01% to end at 20,319 points. The H-Share Index dipped 106 points or 1.05% to close at 10,035 points. Turnover was sharply down 22.3% to HK$49.844 billion from the last trading day. Both May Hang Seng Index futures and May H-Share Index futures significantly traded at a discount to cash. To conclude, the Hang Seng Index opened at 20,526 points, down 208 points or 1.01% to close at 20,319 points, with volatility ranging from 20,130 points to 20,526 points. Today’s turnover amounted to HK$49.844 billion (last trading day’s HK$64.166 billion). The Hang Seng Index accounted for 31% of today’s turnover, whereas the H-Share Index constituted 25%. Hang Seng Finance Sub-Index skidded 201 points to close at 32,359 points; Hang Seng Utilities Sub-Index slumped 1,047 points to finish at 36,736 points; Hang Seng Properties Sub-Index dropped 141 points to end at 24,354 points; Hang Seng Commerce & Industry Sub-Index was down 138 points to close at 10,904 points. May Hang Seng Index futures fell 252 points to close at 2 20,095 points, traded at a 224-point discount to cash and settled 51,765 contracts. The H-Share Index opened at 10,168 points, down 106 points or 1.05% and ended at 10,035 points, with volatility ranging from 9,918 points to 10,168 points. Today’s turnover amounted to HK$12.472 billion (last trading day’s HK$11.501 billion). May H-Share Index futures dived 175 points to close at 9,910 points, traded at a 125-point discount to cash and settled 27,078 contracts. 3