CCB will issue the Jianxin permanent value equity fund as an agent for CCB-Principal Asset Management, Ltd. from November 7 to December 9, 2005.

As the first product of CCB-Principal Asset Management, Ltd., Jianxin permanent value equity fund defines the investment goal as “effectively controlling investment risks and pursuing the long-term stable value increase of fund asset”. The product has the following characteristics: first, as an equity fund with medium risks and income it is designed for investors favoring moderate risk and income and having a medium and long-term investment vision; second, focusing on research and investing in value. Based on research, the asset management company tries to identify those undervalued equities by analyzing the capacity and process of creating value and the sustainability of listed companies and pursues the long-term stable value increase of fund asset; third, selecting good companies and buying good stocks. The fund makes best use of the mature ISAR model of The Principal Financial Group and based on its professional investment research skills tries to figure out the undervalued equities, select good companies and stocks and seek long-term stable return on investment for its fund holders; fourth, taking the lead in using the MSCI China A Index and targeting at the international capital market. The fund takes the lead in using the transparent and objective MSCI China A Index as the benchmark to assess the performance of equity investment of certain fund, paving the way for later integration in the international capital market; fifth, advanced instruments and sophisticated risk control. The product uses a sophisticated investment process integrating portfolio investment, research management and risk control. The Principal Financial Group’s IR optimized investment portfolio risk management system monitors the whole investment process to control risk.

By issuing the fund as an agent, CCB hopes to offer investors the fund products wanted in the market and better and more bank services to meet the wealth management needs of investors. Clients can inquire or subscribe the Jianxin permanent value equity fund at the over 14,000 CCB outlets nationwide.

The CCB-Principal Asset Management, Ltd., in which China Construction Bank (CCB) holds a 65% stake, The Principal Financial Group (The Principal) holds 25% and China Huadian Group holds 10%, is among the first group of fund management joint ventures set up by a Chinese commercial bank with domestic and foreign partners. The majority shareholder CCB is a shareholding commercial bank which is the first Chinese state-owned commercial bank conducting the shareholding trial reform and getting listed. The foreign shareholder The Principal was established in 1879 and has a 126-year history of providing financial services. In 2005, with rich expertise and good track record of fund management, the company receives two top awards of "Best Overall Fund Group" and "Best Mixed Equity Fund Group" from Lipper which as a Reuters company is a leading global fund rating agency. China Huadian Group is one of the biggest power companies in China with a registered capital of RMB12 billion and by the end of 2004 its total assets rose to RMB119.7 billion. It can be said that the launch of CCB-Principal Asset Management, Ltd. is the result of integrating the oriental and western wisdom and leading market players and a major step of the Chinese capital market reform.