China Development Financial Holding Stock

China Development Financial Holding Corporation (CDFH) operates as a domestic financial holding company that specializes in institutional finance. Its operations span the major core areas of business: direct investment, banking, financial services and securities. The company’s major subsidiaries include China Development Industrial Bank, Inc. and Grand Cathay Securities (GCS). As of December 31, 2003, the bank operated 31 branches.

Direct Investment

Direct investment is primarily focused on principal investments employing CDFH’s own funds. This includes domestic investment, overseas investment and small and medium enterprises (SME). It is also involved in fund management and provides asset management services. Direct Investment focuses on the manufacturing sectors, such as semiconductors, computers, communications and electronic components.

Overseas Investment has a portfolio comprising of investments in 18 countries, with an emphasis on telecoms, wireless communication, TFT LCD and IC design.

SME Business targets domestic SMEs with growth potential and provides integrated financial services, including equity investment, commercial lending and advisory services.

Banking

CDFH’s banking and financial business is primarily focused on institutional banking with the following core services that include:

Banking business provides lending services and financing solutions to corporations, public sector entities and institutions.

Trust services sector provides trust services for institutional clients in two major areas that include securities investment management and asset securitization of financial assets, such as auto loans, commercial leasing and credit card financing.

Project finance provides financial advisory services for large-scale infrastructure and commercial development projects, to act as the arranger of loans for equity investment and to participate as an investor or lender on a selective basis.

Securities Business

GCS is involved in all aspects of the securities business, including securities brokerage, proprietary dealing, underwriting, share registrar services, futures brokerage and trading and investment advisory services. GCS is the domestic securities firm for the underwriting of equity and bond issues.

History

China Development Financial Holding Corporation was incorporated in 2001 through a share swap with China Development Industrial Bank, Inc.