09:27 CHINA ASSETS<00170>-Announcement & Resumption of Trading (2) the General Partner, formulate and render investment recommendations and related management services to the Fund, including investigating, structuring and negotiating potential project investments, monitoring the performance of projects, and advising the Fund as to exit opportunities, and, with the approval of the investment committee of the Fund, the acquisition, sale or other disposition of projects by the Fund. The Fund will pay to the Fund Manager a management fee calculated with reference to the amount of total capital commitments (less that made to liquidated projects) to the Fund. Apart from the raising of funds from investors, the negotiation and execution of documentation relevant to setting up the Fund as a close ended investment fund, the Fund has not carried on any business since its establishment. Each of the General Partner and the Fund Manager is an Independent Third Party and was specifically incorporated for the purpose of assuming their respective roles in the Fund and has not carried on any other business since their respective dates of incorporation. To the best of the Directors' knowledge, information and belief, having made all reasonable enquiries, each of the General Partner and the Fund Manager is a wholly owned subsidiary of CITIC Capital Investment Holdings Limited, which in turn is a wholly owned subsidiary of CITIC Capital Markets Holdings Limited. CITIC Capital Markets Holdings Limited is co-owned by CITIC International Financial Holdings Limited and CITIC Pacific Limited, companies whose shares are listed on the Stock Exchange. It is however intended that the Company will acquire 25% equity interests in the General Partner. Such acquisition of interests in the General Partner is still in negotiation and there are no specific terms or timetable available yet. The Company will make appropriate disclosure in the circular to be issued by the Company in respect of the Investment should such acquisition of interest in the General Partner eventuate. III. Information regarding the terms of the Fund The following is a summary of the terms of the Fund. The final terms of the Fund are subject to the detailed provisions of the Partnership Agreement. The Company does not expect there to be any material changes to the final terms of the Fund, but will make appropriate disclosure in such event in the circular to be issued by the Company in respect of the Investment to keep Shareholders informed. Fund objectives The Fund has been established by the General Partner and the nominee limited partner specifically for the purpose of raising capital from investors and investing in property projects in the PRC which fall within the following criteria: - high projected internal rate of return; - located in the prime cities of the PRC; - individual property projects duration of no more than the remaining life of the Fund unless the investment committee of the Fund believes that the project has strong potential for resale before its completion; and - principally residential and/or commercial in nature. Capital commitments to the Fund The minimum Fund size as at the first drawdown will be capital commitments of US$45 million (equivalent to approximately HK$351 million). The proposed capital commitment of the Company to the Fund is US$13.5 million (equivalent to approximately HK$105.3 million). A wholly owned subsidiary of CITIC Capital Markets Holdings Limited will provide a capital commitment of up to US$15 million (equivalent to approximately HK$117 million) or one-third of the aggregate capital commitments of all limited partners of the Fund, whichever is the lower. As at the date of this announcement and to the best of the Directors' knowledge, information and belief, having made all reasonable enquiries, the General Partner has not yet signed any commitment letters in respect of the remaining US$16.5 million in the Fund. Duration of the Fund The Fund will have an investment period of two years following the Initial Closing Date; no new investments may be made by the Fund after this investment period. This investment period may, however, be extended by the General Partner with the approval of limited partners representing a majority of all limited partner's capital commitments in the Fund for two additional periods of one year each. The initial term of the Fund will be three years (which may be extended by the General