Free Float Share Increase For Sany Heavy Industry Co., Ltd. In The S&P/CITIC 300 Index

As part of the China Securities Regulatory Commission (CSRC) Full Circulation Scheme trial, Sany Heavy Industry Co. Ltd. (China, Ticker: SH600031, SEDOL: 6648824, GICS: Industrials, GICS Codes: 20106010), a member of S&P/CITIC 300, announced following shareholder approval that the company’s controlling shareholders will give public shareholders 48 million RMB and 21 million shares, equivalent to 0.8 RMB and 0.35 shares per public share held. This corporate action will become effective on June 17, 2005. Accordingly, Standard and Poor’s and CITIC Securities will make the following changes in the S&P/CITIC 300 index effective after the close of trading Thursday, June 16, 2005:

(1) As the source of the cash distribution comes from the controlling shareholders instead of the corporate treasury, this cash distribution will be treated as a regular cash dividend at the rate of 0.8 RMB/share for 60 million outstanding float shares in the index, and the corresponding adjustment will be made to S&P/CITIC 300 Total Return index.

(2) As the source of the 21 million shares comes directly from the controlling shareholders, and the current public shareholders are receiving the shares at zero cost, the 21 million shares will be added to the index at zero cost without an adjustment to the divisor.

Following is a summary of the announced changes:

S&P/CITIC 300 - effective on June 16, 2005 after the market close
Index	Company Name	New Total Float Shares	New IWF	Index Divisor	Cash Distribution
S&P/CITIC 300	Sany Heavy Industry Co. Ltd.	81,000,000	0.3375	No change	0.8 RMB/share, corresponding adjustment will be made to total return index

Standard & Poor’s states, that the handling of this corporate action should not be viewed as a precedent for the treatment of future corporate actions of similar nature.

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Standard & Poor's is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research, data and valuations. With approximately 6,500 employees located in 22 countries, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit www.standardandpoors.com.

About CITIC Securities

CITIC Securities Co., Ltd. is a subsidiary of CITIC Holdings, with core businesses in securities underwriting, brokerage, asset management, trading and investment consultation. By the end of 2002, CITICS' net assets reached over 5 billion RMB with 1,200 employees and 40 branch offices located in Mainland China. In the 2003 and 2004 AsiaMoney ranking of domestic financial institutions in key Asia-Pacific markets, CITIC Securities ranked No.1 among all the Chinese securities firms. The Company undertook an initial public offering of 400 million Ashares towards the end of 2002 and was listed on the Shanghai Stock Exchange on January 6, 2003. The CITIC indices are recognized as one of the most influential non-exchange index series in Mainland China. For more information, visit http://www.citics.com.