ANBOUND has earlier analyzed and predicted that the country will take vigorous action to "clean up" the securities market by investigating and probing into the various problems in the securities market with the view to reduce the grey area.

Unfortunately, this prediction has come true. Three of the China's ten largest securities firms - Citic Securities Ltd., Guosen Securities Ltd.and Haitong Securities Ltd are under investigation by China Securities Regulatory Commission.

Based on our judgement, the consolidation of market will be on-going, however, the targets of the decision making departments are not to do a complete settlement, but rather to develop a stable, healthy stock market.