We obtained the requisite qualification for margin financing and securities lending business from the CSRC in June 2010 and started to conduct such business in July 2010. We offer collateralized financing through our margin financing services to brokerage clients who wish to finance their securities purchases, thereby enabling them to improve investment returns through financial leverage. We lend securities held in our own accounts to our brokerage clients through our securities lending services, enabling our clients to take advantage of potential short-selling opportunities in the market.

Our margin financing and securities lending balance grew rapidly in the first three months of 2013. As at March 31, 2013, total margin financing and securities lending balance reached RMB9,651 million, an increase of 79.5% since the end of 2012.

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