An overview of Investment Strategies

● The investment procedure is quantified, systematized and research-driven, and aims to identify explanatory variables that have the power of prediction in the market through its risk-driven procedure. The investment procedure is based on statistical rather than fundamental analysis.

● The strategy constantly monitors the daily price fluctuations and other financial metrics and uses this information to decide the daily long/short position adjustment through quantitative methods that maximizes profit

● Starwint uses the multi-factor neutral strategy to hedge risks, a method tested by many years of research that is also used by China’s securities and stock index futures markets

● Research shows that each trade carried out by this strategy is statistically advantageous, which increases the potential for continuous profits over long periods

● Scope of investment

Including but not limited to :
• Domestic legal stocks
• Futures (i.e. treasury bond, commodity, stock index)
• Funds (i.e. hybrid, exchange traded, stock, bond)
• Bonds (i.e. treasury, Central Bank Bills, corporat, enterprise, convertible)
• Short term commercial paper
• Medium term notes
• Asset backed securities
• China SME private bond placements
• Bond reverse-repurchases
• Cash
• Bank deposits (i.e. current account, fixed term, agreement)
• Monetary market funds
• Cash management plans
We can also participate in:
• Bond reverse-repurchases
• Financing and securities lending (including underlying securities)

Futures：

The Chinese futures market encompasses four exchanges, with thirty different kinds of securities in areas such as :

industrial products
• agricultural products
• precious metals
• base metals
• energy
• stock indexes

● Pursue long-term asset accretion

Our diverse strategies keep track of medium and long term trends and employ high frequency trading as well as other direct, quantitative, and systemized methods to acquire maximum return.

● Our systems utilize multifactor variable inputs

Our systems can analyze data from any database in predicting trends and conducting technical analysis.

● Objective

We adopt scientific methods in exploring and organizing trading strategies that strive to increase risk-adjusted returns and maintain low long term correlation with other investments.

Risk Control

1.Initially, 100 risk-independent strategies are simultaneously executed with equal fund distribution, and the system then adjusts strategy utilization according to market conditions and results.

2.Less than 30% of the security deposit is allocated to the trading fund, minimizing risk of loss of capital.

3.The automated trading system is vigilantly monitored by human staff, who will minimize any possible loss in case of technical difficulties.

Risk Control Workflow

How the Trend Tracking Strategy Operates in a Sample Market

● The trend tracking strategy performs best during a rising or falling market trend. But if there is a trend reversal or consolidation, the trend tracking strategy will perform poorly.

● Different futures products which have little connection with each other always demonstrate different trends at any specific time.

Disclaimer: The above graphic of the trend tracking strategy profit/loss values may not be representative of all market situations.

Risk Diversification across Markets

*Graphics depict differing market trend of several domestic futures over time

● We aim for the greatest risk diversification by trading futures contracts in markets following different trends in a given period of time.

● We adjust the number of positions according to the intensity of trading signals.

● Our goal is to avoid big fluctuations and obtain high, risk-adjusted return.

Characteristics of our Futures Investment Portfolio

● Target investment portfolio fluctuation rates

20% on average, annually

● Target trading leverage

Security deposit to equity ratio is 20%

● Targets speed/frequency

Our systems simultaneously trade at different speeds to reduce trading costs

● 2001: Investment Director of the Starwint team enters securities, futures, and foreign exchange investment markets.

● 2005: Starwint began to conduct program trading by using third-party software.

● 2011: Starwint team developed and started to use its own software for program trading.

● Jan. 2011 - Aug. 2013: The cummulative rate of return and individual account reached 139.55%, and the annual rate of return was 38.87%.

● Jan. 2012: Shanghai Starwint Investment Co., Ltd., established.

● Apr. 2013: Shanghai Startwint Asset Management Co., Ltd., established.

● Jan. 2014: Chance Capital-Starwint Asset Management Plan established.

Historical profit curve of Starwint strategy portfolio with an initial fund of USD 32 million (RMB 200 million)

Notice: The performance takes into account trading costs, but no product management fees, commissions, custody fees, etc. were deducted. However, the fund still generates a positive 3% increase in interest income annually.

Monthly performance distribution of Starwint portfolio strategy historical tests

Note: The performance takes into account trading costs, but no product management fees commissions, custody fees, etc. were deducted. The graphic depicts overall fund performance under this portfolio strategy, not the performance of any specific financial product.

Disclaimer: The historical performance of other products of asset managers and the historical performance of Starwitnt company make no predictions on the future performance of this product, and they cannot serve as a guarantee for the performance of this product.

Firm offer performance of investment strategies (Jan. 2011 to Aug. 2013)

From January 1, 2011 to August 30, 2013 Past performance

Notice: The performance has taken the trading costs into consideration, and no product management fees, commissions, custody fees and so on were deducted. The performance demonstrates the overall performance of the funds operated by this portfolio strategy, so it is different from specific product performance.

Declaration: The historical performance of other products of asset managers and the historical performance of Starwitnt company make no predictions on the future performance of this product, and they cannot be served as a guarantee for the performance of this product.

Disclosure of risks

Although asset managers commit to operating under the most rigorous professional and ethical standards, we cannot guarantee profit nor minimum return.

Historical performances of Starwint company and its asset management products shall not be regarded as a prediction nor guarantee of the company or product’s future positive performance.

Bu investing under this, or any plan, you are subject to and responsible for certain risks, including but not limited to:

1.Market risks: Changes in market conditions and the influence of many factors can induce price fluctuations in securities and futures which may create potential risks for assets und the Starwint plan.

2.Management risks: Performance of investment products are subject to human judgment of asset managers as they make decisions based on relevant information, economic trends, and price trends of securities and futures.

3.Liquidity risks: Insufficient market liquidity can cause a delay in the low cost adjustment of the investment plan (i.e. adding or reducing property under plan), which may decrease planned return (due to an insufficient/excessive amount of cash).

4.Financial model risks: The effectiveness of financial models may be compromised due to market changes (including but not limited to fluctuations in liquidity or correlation as well as changes in policies and regulations) as well as more technical factors.

5.Reation time risk: Trend tracking strategies cannot guarantee an accurate reaction in a timely manner during all periods of fluctuations in market price and general market volatility.

6.Special risks of futures investment:

Leverage risks: In futures trading, the change in profit or less due to price fluctuations may be multiplied via leverage.

Rate of fluctuation risks: As the amount of spot goods in the bulk commodity market is jointly decided by suppliers and buyers and influenced by a volatile macro-economic environment, the price of bulk commodities has a higher fluctuation rate and greater price uncertainty and risk.

Risks brought by supplemented payment of security deposits and enforced position closing: If the market trend is unfavorable to the participant of futures trading or the proportion of the security deposit of futures is raised and the balance of the futures account is insufficient, supplementary payment of security deposits is required. If the participant of futures investment fails to add a due amount of security deposit within the appointed time, part of the futures positions will be closed to make up for the deficiency of account balance. The fund allocation order sent by asset managers will be carried out by trust fund banks, where there are longer operation procedures, and correspondingly, added risks. Furthermore, if the total amount of positions of a futures contract held by the participant of futures trading exceeds the limitation stipulated in trading rules, the futures exchange may enforce closing of the positions he/she holds and confiscate returns.