Llinks Corporate Finance Bulletin May 2007

MARKET AND REGULATION

1. Please give a brief overview of the public M&A market in your

jurisdiction. (Has it been active? What were the big deals over the past year?)

The Chinese public M&A market has developed rapidly since 2005, attracting both domestic and international investors. In particular, with the Share Reform almost completed, 2006 has seen the China A share market enter a period of full circulation.

The recent enactment of a new series of M&A laws and regulations have also had a significant impact on M&A activity in China’s securities market (for a list of key legislation, see Question 4).

Major deals announced in 2006 include the following:

Carlyle Group’s acquisition of Xu Gong Group Construction

Machinery;

如果您需要本出版物的中文本，请与 下列人员联系： Switzerland Holcim’s acquisition of 160 million A shares of

Huaxin Cement through a private placement;

韩东红: (86 21) 6881 8100 - 6609

Publication@llinkslaw.com

Goldman Sachs’ investment of approximately CNY1,800

million (about US$231 million) into three listed companies If you would like other Llinks

via private placement. Goldman acquired 60 million shares publications, please contact:

of Chengdu Yangzhiguang Industrial for CNY240 million Lily Han: (86 21) 6881 8100 - 6609 (about US$31 million), 111 million shares of Fuyao Group Publication@llinkslaw.com

Class Industries Co for CNY890 million (about US$114

million), and 75.595 million shares of Guangdong Midea Llinks Law Offices

Electric Appliances for CNY717 million (about US$92

million);