CITICS Futures Co., Ltd. (CITICS Futures) is a wholly-owned subsidiary of CITIC Securities, with a registered capital of RMB 300 million and engaged in the business of financial futures brokerage and commodities futures brokerage. It is a general clearing member with China Financial Futures Exchange, as well as a member with Shanghai Futures Exchange, Dalian Commodity Exchange, Zhengzhou Commodity Exchange, and also a member of China Futures Association. CITICS Futures has business outlets in Shanghai, Dalian, Zhengzhou, Qingdao, Hangzhou and Beijing.

Leveraging on the strong funding position, brand and client resources of CITIC Securities, CITICS Futures has grown into the regional leader in futures sector in Shenzhen by providing clients with professional and quality financial services through over a decade of prudent operation under the philosophy of “integrity, compliance, professionalism and innovation”.

CITIC Futures focuses on the research and services of stock index futures and the commodity futures including metals, agricultural products, energy and chemicals, based on which the authoritative and timely research products, together with investment strategy supports, are offered to clients. A research system that features “three-folded focus”, i.e., the fundamentals research as the basis, the quantitative strategy as the body, and the funding management as the core, has been established, reinforced by an efficient organizational structure that can provide the needed support. Breakthroughs have been achieved in product innovation. CITIC Futures took the lead in 2010 to launch a total solution of “hedging participated by institutional clients”, assisting a number of institutions in their successful application of hedge quotas. It has also introduced the arbitrage products and employed its self-developed index to minimize the tracking errors, thus enabling an over 25% annualized return in its ETF arbitrage products. It built up an industry-leading trading behavior analysis platform as a means to provide clients with professional and personalized solutions.

CITIC Futures earned a series of honor in 2010: named the “Futures Company with the Greatest Growth Potential” by Securities Times; the “Excellent Member Award”, “Aluminum Enterprises Service Award” and “Zinc Enterprises Service Award” by Shanghai Futures Exchange; the “Member with the Greatest Growth Potential” and the “First Place in Top 10 Chemicals Futures Research Team” by Dalian Commodity Exchange; and the “Professional Financial Institute Most Welcomed by Investors” by Hexun.com.

CITICS Futures recorded an exceptional growth in all business indicators in 2010, thanks to the launch of stock index futures. As of the end of 2010, CITIC Futures recorded a total asset of RMB 3.219 billion, net asset of RMB 358 million, sales revenue of RMB 150.14 million and net earnings of RMB 42.52 million.