The 1st Annual Forum of Investors Relation of China & Investors Relation Selection for A-share Company of China 2004

May 2005
Beijing ,china

Significance of 1st Investors Relation Selection for A-share Company of China
The essential issue of China's securities market is the company management. The IRM (Investors Relation Management), which has a history of decades of development in other countries, stretches across the two fields of the company management and company development strategy; and is in the beginning of China IRM leaving vast developing space in the future.
IRM evaluation is a kind of activity based on the evaluation the outside conducting to the listed company on its IRM level. By establishing a scientific, systematic, precise and practical IRM evaluation guideline system, IRM evaluation would be helpful for securities monitoring office to supervise and manage the listed company, for investors to make investing decision and for listed company itself to consummate its IRM activities. The establishment and execution of such a evaluation system can not only dictate the listed company to establish its comprehensive IRM system, but also, and more importantly, promote the credit and reputation of China's securities market.

That SECURITIES MARKET WEEKLY conduct the IRM evaluation activity, which is in compliant with the spirit of instruction for promoting the opening and reform and stable development of capital market which is constituted by the State Council, would help to promote China's IRM of which the significance for the near future is that it provide a intercommunication platform for the listed companies to launch the IRM under the price consulting system and classified system.

Introduction of 1st Investors Relation Selection for A-share Company of China
The content of comprehensive program of 1st Investors Relation Selection for A-share Company of China: to select top 10 IRM from China's listed companies through two round of vote; to establish the award; release China's IRM Annual Report; to hold the Award Presentation Ceremony and Profession Symposium

This IRM Evaluation is greatly supported by SECURITIES MARKET WEEKLY and conducted by NAN JING UNIVERSITY and relevant research institutes. It established a innovating evaluation system applying comprehensively the practice of other countries for reference in the light of current situation of China's capital market. Its main features are as follows: a common IR evaluation aims just at some specific aspects of a company as release of proclamation, information revealing, material distribution and in time information publication; while in this system, the IRM would be analyzed according to its level and structure and be adjusted according quality guideline and management guideline. The result would be brought into the whole evaluation system so as to show to the outside the real IR level of the company.
Methodologically speaking, the research of this system will begin with proposing the frame and selected guideline of IRM evaluation guideline system by trimming document in existence, then conduct inspection to the execution mechanism of the IRM evaluation guideline system frame by SEM (Structural Equations Modeling); at last, calculate the IRM comprehensive indicator by Delphi Method, Method of Analytical Hierarchy Process, least square method.

About the obtainment of the basic data, we would use the survey network carefully constructed by SECURITIES MARKET WEEKLY which covers all the listed company, institute investors and securities holders and analyzers in China, and ensure that the data recall rate will meet the requirement of the system. At the same time, according to the international practice, we would employ authorized notarization office to monitor the entire survey process so as to ensure the integrity and reality of the data we get.
Effect Evaluation of 1st Investors Relation Selection for A-share Company of China
Listed company which can win the front place of the IRM Evaluation will surely have wider financing channels, promote its financing scale and reduce the financing cost, and finally promote its financing ability in the securities market. Thus this selection will draw comprehensive attention among the listed companies, especially from the top management officers of the listed company.

The design theory of this evaluation process presents the institute investors (securities analyzers) the ultimate selection power, thus promote their enthusiastic participation and highly appreciate the result, which would be brought into the listed company value evaluation system.

This evaluation activity is highly recognized by both the listed companies and institute investors so that it also draws high attention from the investor banks and other agents.