CITIC East China and Calyon Financial Announce Joint Venture Agreement to Form Chinese Futures Brokerage

Shanghai, China, and Chicago (ots/PRNewswire) -

CITIC East China (Group) Corp., Ltd. and Calyon Financial Hong
Kong Ltd. today announced the signing of a joint venture agreement,
forming a new futures brokerage entity established under the Closer
Economic Partnership Arrangement (referred as CEPA).

If all approvals are obtained as per schedule, the joint venture
may become the first futures brokerage in Shanghai and second futures
brokerage in China that is jointly owned by a Chinese firm and a Hong
Kong brokerage firm. CITIC East China will be the majority
shareholder.

CITIC Futures is part of China's top State-Owned Enterprise,
namely CITIC Group. CITIC Futures currently has memberships on the
Shanghai Futures Exchange, Dalian Commodity Exchange and Zhengzhou
Commodity Exchange.

Calyon Financial Hong Kong is a part of the Calyon Financial
Group, which is wholly owned by Calyon Credit Agricole CIB and part
of the Credit Agricole Group in France. Calyon Financial is a leading
global futures brokerage firm and has access to more than 70 global
financial and commodity exchanges.

After signing the agreement, the joint venture will seek
regulatory approval from the China Securities Regulatory Commission
(CSRC) and relevant required regulatory bodies. The overall approval
process is anticipated to conclude within three to six months.

"We're enthusiastic about the opportunities for the new joint
venture," said Mr. CAI, Xiliang, General Manager of the CITIC East
China (Group) Corp., Ltd., the majority shareholder of CITIC Futures.
"The company will be well-positioned to participate in China's
rapidly developing financial and commodity futures industry."

"The joint venture will combine the access and experience of CITIC
Futures in the Chinese markets with Calyon Financial, a proven leader
in global futures brokerage industry," said Mr. LUO, Heng, Chairman
of CITIC Futures. "One of the primary reasons we selected Calyon
Financial for this partnership is the company's proven system of
internal risk control and its IT systems."

The China Securities Regulatory Commission has announced plans to
open the Chinese futures markets to foreign investors. Currently,
fully or majority-owned Chinese futures firms are the only
participants on the Chinese markets. The joint venture will seek
qualification as a majority-owned Chinese firm.

The China Financial Futures Exchange, the country's first
financial derivatives exchange, was inaugurated on Sep. 8, 2006, and
trading on its first financial product, the Shanghai-Shenzhen 300
(Hu-Shen 300) index, is anticipated in 2007. The new joint venture
will seek membership on the exchange.

"We have the highest respect for the CITIC Group and for CITIC
Futures," said Richard Ferina, Calyon Financial's Chairman and Chief
Executive Officer. "We're pleased to have formed this partnership and
look forward to working with CITIC Futures to continue developing
China's futures markets."

"The joint venture will give us the opportunity, at the
appropriate time, to provide our institutional clients with entry to
a fast-growing and promising market," said Pierre Gay, Managing
Director of Calyon Financial Asia. "We're looking forward to working
with CITIC Futures in developing this new company through both
companies' existing experience as well as Calyon Financial's global
network."

About CITIC Futures Brokerage Co. Ltd.

CITIC Futures is one of the oldest futures companies approved by
CSRC with registered capital RMB30.30 million, registered addresses
on the 3rd floor of CITIC Penta-Bull Building at No 1085 Pudong
Avenue in Shanghai, and its shareholder CITIC East China (Holdings)
Ltd. and CITIC Shanghai Import and Export Co. Ltd. Since its
establishment in October 1993, CITIC Futures has consistently adhered
to the directive of Mr. WANG, Jun, former chairman of CITIC Group, to
"abide by the law, and regulate transactions." By taking advantage of
the strength and reputation of China CITIC Group, CITIC Futures
insists on sound operation and firm risks control. In addition to a
high-quality team with rich experience in transactions and
management, sound operation (consistent profitability during the past
five consecutive years), steady growth, and commitment to ensure
customer's legal interest, CITIC Futures enjoys a good reputation in
China's futures industry.

About Calyon Financial

Calyon Financial (www.calyonfinancial.com) is a leading global
brokerage firm dedicated to providing institutional clients efficient
access to all major markets. The firm has access to over 70 financial
and commodity exchanges. Headquartered in Chicago, Calyon Financial
has presence in 16 major global financial centers. Calyon Financial
is a wholly owned subsidiary of Calyon S.A. (www.calyon.com), the
corporate banking arm of the Credit Agricole Group.

SHANGHAI
Ms. Ying Yao
CITIC Futures - General Manager's Office
+86-21-5860-6488
yaoying@citic.com
CHICAGO
Mr. Barry Neumann
Calyon Financial Corporate Communications
+1-312-441-4564
barry.neumann@calyonfinancial.com
Web site: http://www.calyonfinancial.com
http://www.calyon.com

ots Originaltext: Calyon Financial
Im Internet recherchierbar: http://www.presseportal.de

Contact:
SHANGHAI, Ms. Ying Yao, of CITIC Futures - General Manager's Office,
+86-21-5860-6488, or yaoying@citic.com; or CHICAGO, Mr. Barry Neumann
of Calyon Financial Corporate Communications, or +1-312-441-4564, or
barry.neumann@calyonfinancial.com