Incentive grants of restricted stock is not below market price.

<P> Promulgated by China Securities Regulatory Commission on January 1 this year from the implementation of the "Equity Incentive Measures for the Administration of Listed Companies (Trial)" on the stock option exercise price floor made it clear that the grant of restricted stock for prices .No description. .The upcoming official release of the "pilot scheme" is on the grant price and exercise price provided for a unified, clearly were not less than market value. .</ P> <P> "pilot scheme" provides that the fair market value based on the principle of equity to determine the grant price (exercise price), grant price shall not be less than the price of the higher of: First, the draft summary of the equity incentive plan announced .the subject of the previous trading day closing stock price of the company, the second is the draft summary of the equity incentive plan within 30 trading days before the announcement of the company's average closing price of the underlying stock. .</ P> <P> for the listed company when the IPO equity incentive plan to be implemented, the price of their option grants in the initial public offering of listed companies at least 30 trading days after listing, according to the principles above the market price .OK. .</ P> <P> due to "pilot scheme" on restricted stock incentive and stock option grant price and exercise price provided for a unified, effective way to eliminate the internal control of listed companies in person through an object to encourage low-cost incentive options granted .possible. .</ P> <P> According to our statistics, this year the first half of the equity incentive plan specific programs of six state-controlled listed companies, there are three uses of the restricted stock incentives, in which S has used a "pilot scheme" .prohibited a single state-owned shares of state-owned shares to pay the way, W Company, H Company and directed respectively Repurchase of restricted stock issued to resolve the source of motivation. .</ P> <P> for the grant of restricted stock incentive prices with reference to the three companies did not market pricing. .S in mid-2005 the company net assets per share price, the market price at that time only 91%; W companies simply are free to grant incentive target, granted the price is zero; H price is 7 yuan were granted, and only 52% of the then market price. .</ P> <P> "pilot scheme" after the enactment of the low-cost phenomenon of restricted stock granted will cease to exist, over-excitation of the situation will gradually ebb. .</ P> <P> compare the CSRC promulgated the "Regulations" and the SASAC issued the "pilot scheme", within the state holding listed companies access to restricted stock incentive target will greatly enhance the cost incentive, incentive only to improve the object .the company's governance structure, enhance the company's profitability, the performance support to maintain the stock price rose steadily to increase the share from the market value of equity incentive joy. .Otherwise, not only can not obtain the expected benefits, they may even bear the risk of price decline. .</ P>.