On July 8, 2005, Professor Xiao Zhuoji, renowned Chinese economist and member to the Standing Committee of the CPPCC National Committee, gave a speech on "Analysis of hotspots in China's current macro-economy" to the management team of CIIC Group, all management personnel of Beijing International Information Park were present at the seminar.

Talking about China's macro-economic situation, Professor Xiao made an analysis of current hotspots by "One objective", "Two bright spots", "Three market" and "Four difficulties".

"One objective" refers to the objective of continuous, rapid and healthy development of China's economy.

"Two bright spots" refers to exemption of agricultural tax of peasants and "two exemptions (tuition fees and book fees" and one subsidy for students in rural areas (subsidy for student from poor families)".

"Three markets" refers to cooling down of investment and financing market, maintenance of real estate market and warm up of stock market.

"Four difficulties" refers to difficulties in energy consumption, income differentials, awareness of social issues and urban public order situations.

Talking about the corporate management, Professor Xiao believed that the "Five conversions" should be completed at an earlier date, namely, conversion from primitive accumulation to capital accumulation; conversion from monopolist profit to average profit, conversion from sheer pursuit of profit maximization to the pursuit of maximization of social benefit, conversion from excessive dependence on capital to dependence on multiple factors and conversion from family business management to social management.

Speech of Professor Xiao was well acclaimed by the audience. "As an independent director of CIIC Group, Professor Xiao has paid great attention to the development and management of CIIC Group, the management team of CIIC Group will benefit greatly from this speech." Dr. Wang Tianyi, President of CIIC Group, said in expressing his gratitude to Professor Xiao. President Wang requested that all specialized companies make an adequate audit of their performances in the first half of this year pursuant to the internationally generally accepted accounting principles before the mid-year working conference and build the team of professional managers by following the principle of "internationalization", "professionalization" and "rejuvenation". In addition, President Wang also instructed all subsidiaries to prepare the working plan for the second half of year on the basis of the micro-economic situations outlined by Professor Xiao by combining with their actual circumstances