Announcement of the Investment Situation of the Asia Wealth Creation Choice Fund

Note: The difference in the net values of RMB subscription unit and the RMB redemption unit is due to the use of different applicable rates.For details, please refer to the prospectus.

Frequently asked questions on the Asia Wealth Creation Choice Fund

Recently, CCB has from time to time received queries on the Asia Wealth Creation Choice Fund.For this, we would like to thank our investors for their interest.In order that our investors have better understanding of the operation of this product, we are summarising our answers to the various questions as follows:

1.Renminbi is used for subscribing this product.What currencies are used in investing locally, for example, in Hong Kong, Indian and China?

A:The Asia Wealth Creation Choice Fund invests mainly in a basket of single country market funds and money market funds in the Asian Pacific region.Although the price of this product is reckoned in renminbi, in investing in equity funds in various local markets, conversionsto the respective local currencies will first be carried out.

2.This year, the trend is for renminbi to appreciate against the US dollar.How would this affect this product and what countermeasures will you be taking?

A.It is expected that in the coming year, renminbiwill keep on appreciating against the US dollar.As far as exchange rate policy is concerned, all central banks (including the People s Bank of China) have a common responsibility and duty, that is, to ensure that fluctuationsin exchange rates in their respective country are within control (no matter it is appreciation or depreciation).

Judging from the trend of other Asian currencies with respect to the renminbi, it can be discerned that, since China s exchange rate reform, the main Asian currencies are all appreciating in step with the renminbi.In particular, appreciation of the Thai baht, the Malaysia ringgit, the Philippine peso and the Singapore dollars are all much greater than that of the renminbi.Investing in the markets of these countries not only allows higher returns in the respective local markets but also brings in additional earnings from changes in exchange rates.Therefore, compared to products investing in American and European markets, this product is exposed to significantly less currency risk.

From the following diagrams, it can be seen that Asian currencies have substantial potentials for appreciation:

[ Currency Exchange Trends

3-month Moving Average

Real Effective Exchange Rate (REER)

Nominal Effective Exchange Rate (NEER)

= Rise=Appreciation

--Source

/ Estimation of Over or Under-valuation of Asian Currencies According to Purchasing Parity Calculations]

3.Currently, fluctuations in global financial markets are getting more violent.Under such circumstances, what are the considerations of CCB s Asia Wealth Creation Choice Fund in choosing Asia markets for investment?

A:There are four main considerations in deciding to invest in Asia:

First, around the world, Asia has the highest rate of economic growth and the largest potential for further growth.On the one hand, Asian markets in the last few years have far out-performed those in Europe and America and, with average returns of 33.4% in the last three years, Asian stocks have outraced the global index and the Standard & Poor indices for three consecutive years.Thus their excellent performance is apparent to everyone.On the other hand, economic growth of many Asian countries is just beginning and, at such a prime age of economic development, their potentials for further development are huge.Moreover, with an average P/E ratio of their stock markets at a mere 15.3 (according to JP Morgan Chase s research report on September 17th 2007), momentum for follow-on growth is strong.As such, it is perhaps an excellent investment opportunity.

Second, it is apparent that the Asian economies are complementary to each other, and complementation in advantages can provide extra stability in the economic development of the whole region.Meanwhile, since our scope of investment covers the whole of Asia (including Australia), we can effectively avoid or lower investment risks brought about economic fluctuations in any one location.So, in comparison to products investing solely in Hong Kong stocks or A-shares, theAsia Wealth Creation Choice Fund has a much higher degree of risk dispersion.

Third, with the incessant inflow of foreign funds, Asian currencies are generally appreciating.In fact, many of them are appreciating much more against the US dollar than the renminbi.

Fourth, the recent sub-prime crisis in the US is having serious impacts on European and American markets, so much so that Alan Greenspan has recently expressed his concerns in this matter in a very pessimistic tone.Asian markets, however, are relatively untouched by the crisis and so investing in Asia at this juncture is a relatively safer choice.