On July 26,2006,the China Securities Regulatory Commission entrusted Gaopeng Law Firm to organize the establishment of the Zhongfu Securities Administrative Cleanup Working Group,appointing our lawyer Wang Mingtao as the leader of the Administrative Cleanup Group to exercise the authority of the company's legal representative and enter Zhongfu Securities Co.,Ltd.,one of the securities companies affiliated to the Delong family,to carry out administrative cleanup work.

After more than two years of comprehensive governance by financial institutions under the State Council,up to now,30 high-risk securities companies have been closed down and disposed of nationwide.Law firms authorized by the CSRC to act as clearing groups to lead the disposal of securities companies include 10 firms,including Gaopeng,Jindu,Jincheng Tongda,Hanhua,Guantao,Dacheng,Bangxinyang,Changjiu,Saide Tianqin,and Zhongwen.Other clearing institutions are led by government departments or accounting firms.

Before the implementation of the new Bankruptcy Law,law firms were entrusted with the administrative liquidation of financial enterprises before bankruptcy,which helped maintain the normal order of the capital market,maintain social stability,and protect national interests from harm.At the same time,it has actively and beneficially explored the bankruptcy legislation of financial enterprises for the State Council.

Currently,the administrative liquidation of Zhongfu Securities has lasted nearly half a year,and various administrative liquidation tasks such as account liquidation,personal debt acquisition,securities asset disposal,and employee placement are nearing the completion stage.The next step is to prepare for the transfer to the court and officially enter the judicial bankruptcy stage.Leaders from the Risk Office of the China Securities Regulatory Commission,the Shanghai Commissioner's Office,China Securities Investor Protection Fund Co.,Ltd.,and the on-site working group of Zhongfu Securities have repeatedly affirmed and praised the performance and business level of our lawyers in handling the bankruptcy liquidation work of high-risk financial institutions on different occasions.

(This article is translated by software translator for reference only.)