The valuation of the Fund shall follow the following principles: the fund management company shall evaluate the investment varieties held by the Fund in strict accordance with the new accounting standards for business enterprises, the relevant provisions of the China Securities Regulatory Commission and the agreement on valuation in the fund contract according to the following principles:

(1) For the investment products with active market, if there is a market price on the valuation date, the fair value shall be determined by using the market price; If there is no market price on the valuation date, but the economic environment has not changed significantly after 20 13, and there is no major event affecting the securities price by the securities issuer, the fair value must be determined by using the trading market price.

(2) For the investment products with active market, if there is no market price on the valuation date, and the economic environment changes significantly after 20 13, or the securities issuer has a major event that affects the securities price, so that the impact of potential valuation adjustment on the fund's net asset value on the previous valuation date exceeds 0.25%, the fair value should be determined by adjusting the trading market price with reference to the current market price and major changes of similar investment products.

(3) When there is no active market for investment products, and the impact of its potential valuation adjustment on the net asset value of the fund on the previous valuation date is more than 0.25%, the fair value of the investment products shall be determined by the valuation technology generally recognized by market participants, and verified by the actual transaction price in the past. In the process of fund valuation, especially in compliance with the provisions of Article 1 (2) or (3), the fund management company shall follow the following principles and procedures:

(1) The fund management company shall ensure that the valuation of the fund is fair and reasonable, especially that the valuation is not distorted, so as not to adversely affect the fund share holders.

(2) A fund management company shall formulate sound and effective valuation policies and procedures, which shall be implemented after being approved by the management of the fund management company. Valuation policies and procedures should clearly define the division of labor and responsibilities of all parties and personnel involved in the valuation process, and clarify the valuation methods of all fund investment varieties, especially the valuation models, assumptions, parameters and their verification mechanisms used in the valuation in accordance with the provisions of Article 1 (2) or (3).

(3) A fund management company shall maintain the consistency of valuation policies and procedures when valuing investment varieties. Considering the investment strategy, the valuation policies, procedures and related methods of the same securities held by different funds managed by the same fund management company should be consistent. Unless it is necessary to update the valuation policies or procedures, the established valuation policies and procedures should be applied continuously. In order to ensure the implementation of the principle of consistency, fund management companies should establish relevant internal control mechanisms.

(4) The fund management company shall evaluate the valuation policies and procedures on a regular basis, and revise the valuation methods in a timely manner after the occurrence of situations that affect the effectiveness and applicability of the valuation policies and procedures to ensure their continuous application. The proposed revision of valuation policies and procedures shall be approved by the management of the fund management company before implementation. When adopting new investment strategies or investing in new varieties, funds should evaluate the applicability of existing valuation policies and procedures.

(5) When adopting valuation policies and procedures, fund management companies should fully consider the experience, professional ability and independence of all parties and personnel involved in the valuation process, and reduce or avoid the occurrence of valuation deviation by setting up valuation committees, referring to the valuation opinions of industry associations and the valuation data of independent third parties. When a fund management company changes its valuation from the first paragraph of Article 1 to the principle stipulated in the second or third paragraph, resulting in a change of more than 0.25% in the net asset value of the fund, it shall hire an accounting firm to conduct an audit. The accounting firm shall issue audit opinions and reports on the appropriateness of the relevant valuation models, assumptions and parameters adopted by the fund management company.

When issuing an audit report on the annual financial report of the fund, an accounting firm shall fully consider the valuation policy and major changes of the fund during the reporting period, especially the appropriateness of applying the principles stipulated in the second or third paragraph of Article 1 above, the objectivity and reliability of valuation by using external information, and the adequacy and timeliness of relevant disclosure. If the accounting standards have new specific provisions on the accounting and valuation of securities investment funds; China Securities Industry Association Fund Valuation Working Group shall promptly guide fund management companies to revise valuation methods.