JiaYuan represented China CITIC Securities (“CITIC Securities”) in its cross-shareholding plan with Bear Stearns. CITIC Securities and Bear Stearns agreed to a cross-shareholding plan and to form a strategic alliance. Under the term of deal, CITIC Securities was to invest US$1 billion in Bear Stearns and receive securities that will convert over time into a roughly 6% equity stake in Bear Stearns, CITIC Securities also would have the right to buy a stake of as much as 3.9 percent of Bear Stearns in the public market, for total eventual holdings of no more than 9.9 percent of Bear Stearns’ stock. On the other side, Bear Stearns would invest US$1 billion in CITIC Securities’ convertible debt which over time would amount to a 2 percent stake in CITIC Securities. Bear Stearns also would be given options to buy an additional 5 percent of CITIC Securities, exercisable over the course of five years. They also planned to set up a Hong Kong-based joint venture investment bank. CITIC Securities pulled out of the cross-shareholding plan after the announcement that Bear Stearns was being sold to JPMorgan Chase.