China's Largest Diversified Financial Institution Takes Equity Stake in ChinaWeb, a Leading Chinese Financial Portal; CITIC Joins ChinaWeb Investor Group.

Business Editors/Hi-Tech Writers

BEIJING--(BUSINESS WIRE)--Feb. 7, 2000

ChinaWeb, Ltd., China's largest online provider of bilingual financial news and services, today announced that China International Trust and Investment Corporation (CITIC) has taken an equity position in the company.

CITIC, China's largest diversified financial institution, has taken a 10 percent equity stake in ChinaWeb.

&uot;CITIC's investment marks a significant milestone for ChinaWeb, which is now positioned to play a leadership role in online trading, B-to-B web solutions, online transactions and other broad based e-commerce activities in China,&uot; stated Mr. Boming Wang, ChinaWeb's Chairman and CEO.

The relationship between CITIC and ChinaWeb began in October, 1999, when the financial services giant signed an exclusive partnership agreement with ChinaWeb to bring new e-commerce platforms to the emerging Chinese Internet community.

On a test basis, certain CITIC accountholders already have access to online trading of Chinese securities through ChinaWeb's trading platform, and development is underway to develop e-Banking, e-Forex and other online financial services such as e-Cards and back-end transaction settlements and clearing for online merchants.

CITIC's securities unit, CITIC Securities Company Limited, has in excess of 750,000 accountholders with assets of more than 250 billion RMB.

CITIC and ChinaWeb plan to formally launch their online trading service, named the Trading Online Platform for Securities (&uot;TOPS&uot;), in late February. ChinaWeb's parent, the Stock Exchange Executive Council of China (SEEC), was instrumental in developing several early stage trading systems for China's fledgling securities markets, including the STAQS System (Securities Trading and Automated Quotation System).

&uot;We are delighted to welcome CITIC to the ChinaWeb family,&uot; stated Mr. Wang. &uot;With this outstanding new stakeholder, ChinaWeb can benefit from an expanding network to build and consolidate China's most extensive financial e-commerce network.&uot;

Mr. Chang Zhiming, Chairman of CITIC Securities Co. Ltd., and Group Executive Director and Vice President of CITIC Ltd., has joined ChinaWeb's board as an independent outside director. Mr. Zhiming has been with CITIC since 1983.

Mr. Wang stated further &uot;Mr. Zhiming brings extensive contacts and knowledge of China's financial markets to ChinaWeb's board. We are privileged to have a director of his caliber on our board.&uot;

As China's first major financial information website, ChinaWeb's new equity stakeholder, CITIC, joins a distinguished private and public sector group including: the Stock Exchange Executive Council of China (SEEC) - a Beijing-based organization that has been instrumental in the development of China's capital markets; the South China Morning Post (SCMP) - Hong Kong's largest English language newspaper; Talisman Capital - a US-based private technology investment firm; and several leading Chinese organizations such as the China Foreign Exchange Consulting Company, Central State Bond Registration and Clearance LLC (ChinaBond), and China Merchants Bank.

ChinaWeb Ltd., originally founded in 1995, offers a broad array of Internet services through its bilingual financial portals, www.chinaweb.com (English) and www.homeway.com.cn (Chinese), including extensive China-related financial news, real-time equity, bond and Foreign Exchange quotes, free email and other Internet tools.

These offerings enable end-users to conduct online financial and commercial transactions in partnership with China's largest banks and financial institutions. ChinaWeb's Homeway portal is one of China's most popular websites - consistently ranking amongst the top ten most visited and popular sites.