Response on IAS 24 Related Party Disclosures—State-Controlled Entities and the Definition of Related Party. Distinguished Board, Recently,we know that the International Accounting Standards proposal to amend IAS 24 Relationships with the State, then, we welcome any helpful amendments and simplifications in this standard. Our response to the specific questions about State-controlled Entities and the Definition of a Related Party in the comments are set out below. Question 1—State-controlled entities We agree the proposed exempt, and strongly support to simplify the disclosures that entities must provide when the exemption applies. Our reasons are as follows; (ⅰ) Potential risks of incomplete disclosures are prone to happen under current standard. In such instance with large number of State-controlled entities, because of the complexity of stock right structure of those state-controlled entities and industry dispersion covering all fields within their domestic economy, different accountants will make various judgements for the same transaction entities and even confuse about whose relative parties they should belong to by themselves. Furthermore, lacking of concrete standards for judgement and consideration for commercial secrets also make it difficult to acquire the information between transaction entities. Under current standard, any small transactions between state-controlled entities need to be disclosed, which will not only results in disunity of the disclosures, but importantly the risk of incomplete disclosure due to lacks of unite professional standard of the reporting entity. (ⅱ) The listed company is independent and equal with others existing as the same state-controlled entity. Requirement for these entities to disclose as related parties will cause huge cost while limited value, and also difficult to understand considering logistic. In the listed company, director board is the decision-makers and acts the significant part in the operation of the company. Under current supervision, any independent director and the director board of the listed company can not permit any negative influence to company’s operation and strategy just because of belonging to the state-controlled or state-important influenced entities. In other words, it will not bring any influence to the operation and strategy within a company which possesses good corporate governance and efficient operation. (ⅲ) With the improvement of market economy mechanism, the state exerting more controls over the macro-economic policies while weakening the controls and influence over single entities. The so-called state-controlled entity is only a formally property right connection. Various state-controlled entities can equally and freely choose their transaction item, transaction mode, price and way of payment under certain market competing context and the fairness of these transaction is also restricted by government code, securities transactions and supervising regulations. For the investors, the vast information and complicated businesses among state-controlled entities are nearly the same as what have been disclosed in the financial statements, thus the valuable and essential information are always hidden. The investors can not find real valuable information in a short time, and may even result cost over benefit in the searching of information. So, we can believe that it will solve the problems above through amending the requirement for state-controlled entity disclosure, considering the specific exemption for transactions among entities controlled or significantly influenced by the state, amending the disclosure requirement of the state controlled entities, enhancing the maneuverability of distinguishing the related parties and . This will guarantee the disclosures of the related party transactions more veritably and integrated. Question 2 —Definition of a related party We agree with the amendment of the wording and the content about the definition of related party and the definition of related party transactions by the Board, which will provide an explicit standard in the disclosure of transactions between related parties. However,if we follow the unmodified standard with expanded definition, we need not only to disclosure the vast information about the related parties but their transactions. In such situation, financial statement users are very difficult to identify the valuable information which has been hidden. We hope our comments will be helpful to the amendments on IAS 24 Related Party Disclosures—State-controlled Entities and the Definition of a Related Party. Thank you. Aluminum Corporation of China Limited March,12th,2009