November 29, 2004

═══ The Shanghai Stock Exchange (SSE) and the Moscow Interbank Currency Exchange (MICEX) have signed a memorandum of understanding.

═══The Memorandum is seen as a way to intensify cooperation between the two exchanges, aimed at developing the sphere of financial services and improving the organized securities markets of China and Russia.

═══Both parties expressed their intention to promote cooperation in the following main areas:

• organizing regular meetings between the top managers of the two exchanges with the aim of getting better understanding of financial markets of China and Russia;
• building contacts with the view of sharing experience in developing exchange markets;
• implementing joint research projects or holding seminars on the issues which are of mutual interest.

═══According to the MICEX CEO Alexander Potemkin, mutually beneficial cooperation between the two leading exchanges of Russia and China has a history of more than ten years. When the currency market was created in Russia in the early 1990s, the MICEX specialists established contacts with their Chinese colleagues. A number of innovations, which they initiated during the first years of the MICEX work, were implemented taking into account the experience of the Shanghai Exchange.

═══At present, the MICEX is preparing for Russian companies' mass entering of the open market with their IPOs. The MICEX is studying the experience of foreign countries, hoping to make use of the SSE's unique knowledge of organizing the primary placement of shares of state-run enterprises in the stock market in the course of their privatization.

═══The MICEX CEO emphasized that the signing of the Memorandum demonstrates the strengthening of relations between the two exchanges and reflects the growing importance of the whole spectrum of business relations between China and Russia.

Brief information:
The Shanghai Stock Exchange(SSE) was founded on Nov. 26th,1990 and in operation on Dec.19th the same year. It is a non-profit-making institution directly governed by the China Securities Regulatory Commission (CSRC). The SSE bases its development on the principle of "legislation, supervision, self-regulation, standardization" to create a transparent, open, safe and efficient marketplace. The SSE endeavours to realize a variety of functions: providing marketplace and facilities for the securities trading; formulating business rules; accepting and arranging listings; organizing and monitoring securities trading; regulating members and listed companies; managing and disseminating market information.

After eleven-year operation, the Shanghai Stock Market has become the prominent stock market in Mainland China in terms of number of listed companies, number of shares listed, total market value, tradable market value, securities turnover in value, stock turnover in value and the T-bond turnover in value. December 2003 ended with over 36 million investors and 780 listed companies. The total market capitalization of SSE hit RMB 2.98 trillion, or 26.8% of the country's GDP in 2003. Capital raised from SSE market surpassed RMB 500 billion. A large number of companies from key industries, infrastructure and high-tech sectors have not only raised capital, but also improved their operation mechanism through listing on Shanghai stock market.

MICEX Stock Exchange (MICEX) is Russia's leading exchange. In the 1990s, it served as a basis for the nation-wide system of trading in the currency, stock and derivative markets in Moscow and in Russia's largest financial and industrial centers. The MICEX is the leading stock floor where daily trading is held in the stocks and bonds of over 250 Russian issuers with the total capitalization of about 180 billion dollars. More than 550 banks and financial companies — members of the Stock Market Section — participate in trading. In January — October 2004, the total volume of transactions on the MICEX reached 405 billion dollars (transactions in non-government securities accounted for about 123 billion dollars) or over 80% of the total turnover of leading exchanges in the Russian market.

For further information, please contact:
Alexey Gerasyuk, PR Director, MICEX
+7 (095) 232-0555 or email: [undefined macro showEmail]

Press Office, Shanghai Stock Exchange Chen Ji, Manager, Executive Office
Phone: 86-21-6880 9606 Fax: 86-21-6880 7813 E-mail: jichen@sse.com.cn

Notes to editors:
The signing ceremony has been held today on the SSE (Shanghai). The Memorandum was signed by the MICEX CEO Alexander Potemkin and Chairman of the SSE Geng Liang.