In order to unify and standardize the calculation methods of fund subscription fees and subscription shares and better protect the legitimate rights and interests of fund investors, the China Securities Regulatory Commission issued unified regulations on the calculation methods of subscription fees and subscription shares in March 2007.

According to regulations, fund subscription fees will be uniformly charged based on the net subscription amount. The corresponding calculation formula for fund subscription fees and subscription shares is: net subscription amount = subscription amount/(1 + subscription rate); subscription fee = subscription amount -

Net subscription amount (note: for subscriptions where a fixed amount of subscription fee is applicable, subscription fee = fixed subscription fee amount); subscription share = (net subscription amount + subscription interest) / face value of fund share.