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China Cocoon & Silk Exchange
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Circular to all members
Date: Dec.11, 2005
Subject: Regarding resumption of electronic contract transaction from Dec.12

China Cocoon & Silk Exchange announces it will resume electronic contract transaction from Dec.12.The issues related are presented as follows:

1.The trading of new electronic contract building before and including May’05 delivery month is suspended. Contracts before and including May’05 delivery month that have been built can only be transferred. The ratio of Trading Margin shall be in accordance with relative clauses of Trial Implementing Regulations on Contract Transaction Clearing of Jiaxing China Cocoon & Silk Exchange Clearing Co., Ltd.

2.Last trading day and delivery day of Dec.’05 contracts shall be postponed to Dec. 26,2005 and Jan. 9,2006 respectively; Last trading day and delivery day of Jan.’06 contracts shall be postponed to Jan. 25,2005 and Feb. 8,2006 respectively. Whether or not the Exchange adjusts Last trading day and delivery day of Mar. Apr. and May’06 contracts shall be contingent on the specific circumstances.