================================================================================

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                   __________________________________________

                                   FORM 10-QSB


[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

         For the quarterly period ended June 30, 2001

                                       OR

[ ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

  For the transition period from ___________________ to ______________________.

                        COMMISSION FILE NUMBER 000-28345

                              CHINA BROADBAND CORP.
        (Exact name of small business issuer as specified in its charter)

            NEVADA                                          72-13812
(Jurisdiction of incorporation)             (I.R.S. Employer Identification No.)

                             2080-440-2 AVENUE S.W.,
                                CALGARY, ALBERTA
                                 CANADA T2P 5E9
(Address of principal place of business or intended principal place of business)

                                 (403) 234-8885
                           (Issuer's telephone number)

                                 NOT APPLICABLE
(Former name, former address and former fiscal year, if changed since last
report)

         Check  whether  the issuer:  (1) has filed all reports  required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
past 12 months (or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing requirements for the
past 90 days.

                         Yes  X         No
                            -----         -----

         The number of outstanding common shares, with $0.001 par value, of the
registrant at June 30, 2001 was 19,474,517.

         Transitional Small Business Disclosure Format (check one):

                         Yes            No  X
                            -----         -----


<PAGE>


                              CHINA BROADBAND CORP.

                            INDEX TO THE FORM 10-QSB
                  FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2001


                                                                            PAGE

PART I - FINANCIAL INFORMATION .............................................  2

         ITEM 1.    Financial Statements....................................  2

                    China Broadband Corp.

                           Condensed Consolidated Balance Sheet.............  2

                           Condensed Consolidated Statement of
                           Operations and Deficit...........................  3

                           Condensed Consolidated Statement of
                           Stockholders' Equity.............................  4

                           Condensed Consolidated Statement of
                           Cash Flows.......................................  6

                           Notes to the Condensed Consolidated
                           Financial Statements ............................  8


         ITEM 2.    Management's Discussion and Analysis of Financial
                    Condition AND Results of Operations .....................15

PART II - OTHER INFORMATION

         ITEM 1.    Legal Proceedings ...................................... 23

         ITEM 2.    Changes in Securities AND USE OF PROCEEDS............... 23

         ITEM 3.    Defaults Upon Senior Securities ........................ 23

         ITEM 4.    Submission of Matters to a Vote of Security Holders..... 23

         ITEM 5.    Other Information....................................... 24

         ITEM 6.    Exhibits and Reports on Form 8-K........................ 24


SIGNATURES.................................................................. 27


                                       i


<PAGE>


                                     PART I

ITEM 1.  FINANCIAL STATEMENTS



<PAGE>

<TABLE>
<CAPTION>


CHINA BROADBAND CORP.
(A DEVELOPMENT STAGE ENTERPRISE)
CONDENSED CONSOLIDATED BALANCE SHEET

(EXPRESSED IN UNITED STATES DOLLARS)
--------------------------------------------------------------------------------------------------------
                                                              JUNE 30, 2001        DECEMBER 31, 2000
                                                               (UNAUDITED)
                                                                    $                      $
                                                          ---------------------- -----------------------
<S>                                                             <C>                    <C>

ASSETS
CURRENT
   Cash and cash equivalents (Note 6)                           2,880,374              4,668,128
   Interest and Goods and Services Tax receivable                  88,414                 64,201
   Due from affiliates                                             48,536                      -
   Prepaid expenses                                                30,981                117,119
                                                          ---------------------- -----------------------
                                                                3,048,305              4,849,448

Investment in Shekou joint venture                              2,291,680              2,482,018
Investment in Chengdu joint venture                             1,629,171              1,321,884
Property and equipment, net                                       206,165                220,799
Intangible assets:
   Intellectual property (Note 5)                                 758,705                819,402
   Shekou joint venture (Note 5)                                2,166,826              2,421,788
   Chengdu joint venture (Note 5)                               4,333,650              4,843,575
   Goodwill (Note 5)                                            1,830,492              2,046,031
                                                          ---------------------- -----------------------
                                                               16,264,994             19,004,945
                                                          ====================== =======================

LIABILITIES
CURRENT
   Accounts payable and accrued liabilities                       263,108                250,840
   Promissory note (Notes 5 and 9)                              1,700,000              1,700,000
                                                          ---------------------- -----------------------
                                                                1,963,108              1,950,840
                                                          ---------------------- -----------------------

CONTINUING OPERATIONS (Note 3)
CONTINGENCIES (Note 7)
COMMITMENTS (Note 8)

STOCKHOLDERS' EQUITY
   Common stock
     $0.001 par value, shares authorized: 50,000,000;              77,936                 77,936
     shares issued and outstanding: 19,474,517
   Additional paid-in capital                                  21,441,331             20,631,344
   Deferred compensation                                         (729,958)               (57,995)
   Accumulated deficit                                         (6,487,423)            (3,597,180)
                                                          ---------------------- -----------------------
                                                               14,301,886             17,054,105
                                                          ---------------------- -----------------------
                                                               16,264,994             19,004,945
                                                          ====================== =======================

See notes to condensed consolidated financial statements.

</TABLE>
                                       2

<PAGE>

<TABLE>
<CAPTION>


CHINA BROADBAND CORP.
(A DEVELOPMENT STAGE ENTERPRISE)
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND DEFICIT (UNAUDITED)

(EXPRESSED IN UNITED STATES DOLLARS)
-----------------------------------------------------------------------------------------------------------------------
                                                                                                        CUMULATIVE
                                                                                                        PERIOD FROM
                                                                                                          DATE OF
                                                                                                         INCEPTION
                                      THREE MONTHS                 SIX MONTHS        PERIOD FROM        FEBRUARY 1,
                                          ENDED                       ENDED           FEBRUARY 1          2000 TO
                                        JUNE 30,                    JUNE 30,         TO JUNE 30,         JUNE 30,
                                 2001               2000              2001               2000              2001
                                   $                 $                  $                 $                  $
                            ----------------- ----------------- ------------------ ----------------- ------------------
<S>                           <C>                    <C>           <C>                     <C>             <C>

REVENUE
   Technical consulting                -             83,333                 -              83,333          208,333

GENERAL AND
   ADMINISTRATIVE
   EXPENSES                   (1,441,107)          (199,513)       (2,660,955)           (457,089)      (6,346,354)
                            ----------------- ----------------- ------------------ ----------------- ------------------
                              (1,441,107)          (116,180)       (2,660,955)           (373,756)      (6,138,021)
LOSS IN BIG SKY
   NETWORK CANADA
   LTD.                                -            (80,099)                -             (80,099)        (181,471)

LOSS IN SHEKOU
   JOINT VENTURE                 (50,881)                 -          (104,624)                  -         (307,045)

LOSS IN CHENGDU
   JOINT VENTURE                (150,560)                 -          (205,570)                  -         (249,276)

INTEREST INCOME                   24,484            125,608            80,906             125,608          388,390
                            ----------------- ----------------- ------------------ ----------------- ------------------
NET LOSS                      (1,618,064)           (70,671)       (2,890,243)           (328,247)      (6,487,423)

DEFICIT, BEGINNING
   OF PERIOD                  (4,869,359)                 -        (3,597,180)                  -                -
                            ----------------- ----------------- ------------------ ----------------- ------------------
DEFICIT, END OF
   PERIOD                     (6,487,423)           (70,671)       (6,487,423)           (328,247)      (6,487,423)
                            ================= ================= ================== ================= ==================
LOSS PER SHARE
   Basic and diluted               (0.08)              0.00             (0.15)              (0.03)            0.00
                            ================= ================= ================== ================= ==================
SHARES USED IN
   COMPUTATION
   Basic and diluted          19,474,517         15,415,070        19,474,517           9,679,276                -
                            ================= ================= ================== ================= ==================

See notes to condensed consolidated financial statements.


                                       3

</TABLE>


<PAGE>

<TABLE>
<CAPTION>



CHINA BROADBAND CORP.
(A DEVELOPMENT STAGE ENTERPRISE)
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

(EXPRESSED IN UNITED STATES DOLLARS)
-----------------------------------------------------------------------------------------------------------------------------
                                                           Additional                                            TOTAL
                                     Common Stock           Paid-in         Deferred        Accumulated      STOCKHOLDERS'
                                  Shares       Amount       Capital       Compensation        Deficit            EQUITY
                                                 $             $                $                $                 $
                               ------------- ----------- --------------- ---------------- ----------------- -----------------
<S>                               <C>           <C>          <C>              <C>           <C>                <C>

Balance,                          1,509,850     59,971               -              -                -             59,971
   February 1, 2000

Issue of common stock
   for the outstanding
   shares of China
   Broadband (BVI)
   Corp.                         13,500,000     13,500       696,529                -                -            710,029

Stock issued pursuant to
   private placement
   agreements at $0.20 per
   share                            500,000        500        98,835                -                -             99,335

Stock issued pursuant to
   private placement
   agreements at $1.00 per
   share                          1,530,000      1,530     1,518,289                -                -          1,519,819

Stock issued pursuant to
   private placement
   agreements at $7.50 per
   share                          1,301,667      1,302     9,696,236                -                -          9,697,538

Acquisition of the shares
   of Big Sky Network
   Canada Ltd.                    1,133,000      1,133     8,496,367                -                -          8,497,500

Issuance of warrants                      -          -        44,472                -                -             44,472

Non-cash compensation                     -          -        15,235                -                -             15,235

Deferred compensation                     -          -        65,381          (65,381)               -                  -

Amortization of deferred
   compensation                           -          -             -            7,386                -              7,386

Net loss                                  -          -             -                -       (3,597,180)        (3,597,180)
                               ------------- ----------- --------------- ---------------- ----------------- -----------------
Balance,
   December 31, 2000             19,474,517     77,936    20,631,344          (57,995)      (3,597,180)        17,054,105
                               ------------- ----------- --------------- ---------------- ----------------- -----------------

Deferred compensation                     -          -       809,987         (809,987)               -                  -


                                       4


<PAGE>


Amortization of deferred
compensation                              -          -             -          138,024     -                       138,024

Net loss                                  -          -             -                -     (2,890,243)          (2,890,243)
                               ------------- ----------- --------------- ---------------- ----------------- -----------------
BALANCE,
   JUNE 30, 2001
   (UNAUDITED)                   19,474,517     77,936    21,441,331         (729,958)    (6,487,423)         (14,301,886)
                               ============= =========== =============== ================ ================= =================


See notes to condensed consolidated financial statements.

</TABLE>
                                       5

<PAGE>

<TABLE>
<CAPTION>

CHINA BROADBAND CORP.
(A DEVELOPMENT STAGE ENTERPRISE)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

(EXPRESSED IN UNITED STATES DOLLARS)
----------------------------------------------------------------------------------------------------------- ----------------
                                                                                                              CUMULATIVE
                                                                                                             PERIOD FROM
                                                                                                               DATE OF
                                                                                                              INCEPTION
                                            THREE MONTHS                 SIX MONTHS        PERIOD FROM       FEBRUARY 1,
                                                ENDED                       ENDED           FEBRUARY 1         2000 TO
                                              JUNE 30,                    JUNE 30,         TO JUNE 30,         JUNE 30,
                                       2001               2000              2001               2000              2001
                                         $                 $                  $                 $                 $
                                 ------------------ ----------------- ------------------ ----------------- -----------------
<S>                                   <C>                   <C>            <C>                  <C>             <C>

CASH FLOWS
   RELATED TO THE
   FOLLOWING
   ACTIVITIES

OPERATIONS
Net loss                              (1,618,064)           (70,671)       (2,890,243)          (328,247)       (6,487,423)
Adjustments for:
   Depreciation and
     amortization                        676,830                  -         1,210,509                  -         1,789,522
   Loss in Big Sky Network
     Canada Ltd.                               -             80,099                 -             80,099           181,471
   Loss in Shekou joint
     venture                              50,881                  -           104,624                  -           307,045
   Loss in Chengdu joint
     venture                             150,560                  -           205,570                  -           249,276
   Non-cash stock
     compensation                         85,359             15,235           138,024             15,235           205,117

Changes in operating assets
   and liabilities
     Interest and Goods and
       Services Tax
       receivables                         5,043            (39,240)          (24,213)           (39,240)          (88,414)
     Due from officers and
       employees                               -           (186,114)                -           (215,056)                -
     Prepaid expenses                     36,138            (64,217)           86,138            (64,217)          (30,981)
     Accounts payable and
       accrued liabilities              (322,743)            34,889            12,268             34,889          (390,690)
     Shareholder advances                      -            (24,719)                -                  -                 -
     Unearned revenue                          -            416,666                 -            416,666                 -
                                 ------------------ ----------------- ------------------ ----------------- -----------------
                                        (935,996)           161,928        (1,157,323)           (99,871)       (4,265,077)
                                 ------------------ ----------------- ------------------ ----------------- -----------------


                                       6


<PAGE>


FINANCING
   Decrease in due to
     affiliates                          (48,536)                 -           (48,536)                 -           (48,536)
   Issue of common stock
     for cash (net of
     issuance costs)                           -         11,342,320                 -         11,842,320        11,816,692
                                 ------------------ ----------------- ------------------ ----------------- -----------------
                                         (48,536)        11,342,320           (48,536)        11,842,320        11,768,156
                                 ------------------ ----------------- ------------------ ----------------- -----------------

INVESTING
   Purchases of property
     and equipment                             -                  -                 -                  -          (291,287)
   Fixed asset additions                    (275)           (56,910)          (11,895)           (56,910)                -
   Investment in Chengdu
     joint venture                             -                  -          (570,000)                 -        (1,935,590)
   Increase in due from Big
     Sky Network Canada
     Ltd.                                      -         (2,495,465)                -         (1,995,465)                -
   Acquisition of Big Sky
     Network Canada Ltd
     (net of cash acquired)                    -                  -                 -                  -        (2,395,828)
                                 ------------------ ----------------- ------------------ ----------------- -----------------
                                            (275)        (2,552,375)         (581,895)        (2,052,375)       (4,622,705)
                                 ------------------ ----------------- ------------------ ----------------- -----------------
NET (DECREASE)/
   INCREASE IN
   CASH AND CASH
   EQUIVALENTS                          (984,807)         8,951,873        (1,787,754)         9,690,074         2,880,374

CASH AND CASH
   EQUIVALENTS,
   BEGINNING OF
   PERIOD                              3,865,181            738,201         4,668,128                  -                 -
                                 ------------------ ----------------- ------------------ ----------------- -----------------

CASH AND CASH
   EQUIVALENTS,
   END OF PERIOD                       2,880,374          9,690,074         2,880,374          9,690,074         2,880,374
                                 ================== ================= ================== ================= =================

SUPPLEMENTAL
   CASH FLOW
   INFORMATION:
     Cash paid for income
       taxes                                  -                  -                 -                  -                 -
                                 ================== ================= ================== ================= =================
     Cash paid for interest                   -                  -                 -                  -                 -
                                 ================== ================= ================== ================= =================


See notes to condensed consolidated financial statements.

</TABLE>


                                       7


<PAGE>


CHINA BROADBAND CORP.                                                          1
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(EXPRESSED IN UNITED STATES DOLLARS)
--------------------------------------------------------------------------------


1.       BASIS OF PRESENTATION

         The consolidated financial statements include the accounts of China
         Broadband Corp. (the "Corporation") and its wholly-owned subsidiaries.
         All significant inter-company accounts and transactions have been
         eliminated.

         The accompanying unaudited condensed consolidated financial statements
         have been prepared in accordance with generally accepted accounting
         principles for interim financial information and with the instructions
         to Form 10-QSB and Article 10 of Regulation S-X. Accordingly, they do
         not include all of the information and notes required by generally
         accepted accounting principles for annual financial statements. In the
         opinion of management, all adjustments (consisting of normal recurring
         accruals) considered necessary for a fair presentation have been
         included. Operating results for the three and six months ended June 30,
         2001 are not necessarily indicative of the results that may be expected
         for the year ending December 31, 2001. For further information, refer
         to the consolidated financial statements and notes thereto included in
         the Corporation's 2000 "Annual Financial Report to Shareholders"
         attached as an appendix to the Proxy Statement for the 2000 Annual
         Meeting of Shareholders.

     2.  INCORPORATION AND BACKGROUND

         The Corporation was incorporated in Nevada in February 1993 under the
         name "Institute for Counselling, Inc." On April 27, 2000, Institute for
         Counselling, Inc. changed its name to China Broadband Corp. The
         Corporation is a development stage enterprise and is seeking to become
         a leading facilities based provider of equipment and technical services
         to support Internet usage in major urban markets throughout The
         People's Republic of China (the "PRC").

         On April 14, 2000, the Corporation, a public shell company, acquired
         China Broadband (BVI) Corp. ("CBB - BVI") through a reverse
         acquisition, which was accounted for as a recapitalization. This
         recapitalization was effected through the issuance of 13,500,000 common
         shares of the Corporation, constituting approximately 90% of its shares
         outstanding after the acquisition, in exchange for all of the
         outstanding shares of CBB - BVI.

         As a result of the application of the accounting principles governing
         recapitalization, CBB - BVI (incorporated on February 1, 2000) is
         treated as the acquiring or continuing entity for financial accounting
         purposes.

         The recapitalization of CBB - BVI was affected through the issuance of
         stock by CBB - BVI in exchange for the acquisition of the tangible net
         assets of the Corporation at fair value, which approximates the
         Corporation's net assets historical costs. As a result, the
         consolidated financial statements are deemed to be a continuation of
         CBB - BVI's historical financial statements.


                                       8


<PAGE>


CHINA BROADBAND CORP.                                                          2
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(EXPRESSED IN UNITED STATES DOLLARS)
--------------------------------------------------------------------------------


     3.  CONTINUING OPERATIONS

         The Corporation's operations may be adversely affected by significant
         political, economic and social uncertainties in the PRC. Although the
         government of the PRC has been pursuing economic reform policies, no
         assurance can be given that it will continue to pursue such policies or
         that such policies may not be significantly altered, especially in the
         event of a change in leadership, social or political disruption or
         unforeseen circumstances affecting the PRC's political, economic and
         social conditions. There is also no guarantee that the pursuit of
         economic reforms by the government of the PRC will be consistent or
         effective.

         The PRC has recently enacted new laws and regulations governing
         Internet access and the provision of online business, economic and
         financial information. Current or proposed laws aimed at limiting the
         use of online services could, depending upon interpretation and
         application, result in significant uncertainty to the Corporation,
         additional costs and technological challenges in order to comply with
         any statutory or regulatory requirements imposed by such legislation.
         Additional legislation and regulations that may be enacted by the
         government of the PRC could have an adverse effect on the Corporation's
         business, financial condition and results of operations.

         The success of the Corporation will depend on the acceptance of
         broadband Internet services, which remains unproven in the PRC. The
         Corporation's Chinese joint venture partners may not be able to attract
         and retain subscribers to their Internet access services to whom the
         Corporation could sell equipment and technical services, or the Chinese
         joint venture partners may face intense competition, which could have
         an adverse effect on the Corporation's business, financial condition
         and results of operations. The Corporation's Shekou Joint Venture's
         ("Shekou JV") services were launched on June 30, 2000. The
         Corporation's Chengdu Joint Venture's ("Chengdu JV") services were
         launched on October 26, 2000 and as of June 30, 2001, it had connected
         a small number of subscribers. The Shekou JV and Chengdu JV are
         currently expanding their subscriber base in the Shekou Industrial Zone
         and Chengdu. Services in Deyang are expected to commence upon receipt
         of approvals required for the establishment of the Deyang joint venture
         and for our Chinese partner to provide Internet access services.

         PRC legal restrictions permit payment of dividends by a Sino-foreign
         joint venture only out of its net income, if any, determined in
         accordance with PRC accounting standards and regulations. Under PRC
         law, a Sino-foreign joint venture will also be required to set aside a
         portion of its net income each year to fund certain reserve funds.
         These reserves are not distributable as cash dividends. If the
         Corporation does not receive distributions from the joint ventures or
         if the joint ventures are not profitable, the Corporation may be unable
         to meet its financial obligations or to continue as a going concern.

         Substantially all of the Corporation's revenues and operating expenses
         of the Corporation's joint ventures in the PRC will be denominated in
         Chinese Renminbi. Such currency is now convertible into foreign
         exchange for "current account" payments, such as the remittance of
         dividends to the Corporation and the purchase of imported equipment.
         However, there can be no assurance such convertibility will continue in
         the future.


                                       9


<PAGE>


CHINA BROADBAND CORP.                                                          3
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(EXPRESSED IN UNITED STATES DOLLARS)
--------------------------------------------------------------------------------


     3.  CONTINUING OPERATIONS (CONTINUED)

         These consolidated financial statements have been prepared on a going
         concern basis. The Corporation's ability to continue as a going concern
         is dependent upon its ability to generate profitable operations in the
         future and to obtain the necessary financing to meet its obligations
         and repay its liabilities arising from normal business operations when
         they come due. The outcome of these matters cannot be predicted with
         any certainty at this time. These consolidated financial statements do
         not include any adjustments to the amounts and classification of assets
         and liabilities that may be necessary should the Corporation be unable
         to continue as a going concern.

         Management anticipates that the Corporation currently has sufficient
         working capital to fund the Corporation's current operations through
         2001. The Corporation's costs to fund its plan of operation for the
         fiscal year ending December 31, 2001 is expected to increase (primarily
         for salaries, travel, office and other similar expenses). The working
         capital is intended to fund the business operations of Big Sky Network
         Canada Ltd. ("BSN"), including funding the capital requirements of new
         and existing joint ventures, funding additional technical, management
         and marketing/sales personnel and funding comprehensive joint venture
         marketing and promotional programs to increase market awareness and
         subscription sales. Management believes that additional funding will be
         required to fund the implementation of BSN's business of entering into
         joint ventures.

         The consolidated operations of the Corporation requires cash of
         $200,000 to $225,000 per month to operate in the PRC and in Canada. The
         operating cash break even point for the facilities in Shekou and
         Chengdu is estimated by the Corporation to be the equivalent of 7,000
         to 7,500 combined subscribers on an annualized basis at present pricing
         structures. The Corporation is in discussions with various equipment
         suppliers for vendor financing or lease packages for capital equipment.
         However, failing any new debt or equity financing, the Corporation
         could continue the Shekou and Chengdu joint ventures as they are and
         inaugurate one additional joint venture with existing capital and
         modest growth in the subscriber base. Other low cost value added
         services may be added to the revenue mix with minimal capital
         requirements, primarily by outsourcing to a variety of potential
         partners seeking access to the Chinese market.

4.       ACCOUNTING POLICIES

         PER SHARE INFORMATION

         Basic loss per share ("EPS") excludes dilution and is computed by
         dividing net loss attributable to common stockholders by the weighted
         average of common shares outstanding for the period. Diluted EPS
         reflects the potential dilution that could occur if securities or other
         contracts to issue common stock (warrants to purchase common stock and
         common stock options using the treasury stock method) were exercised or
         converted into common stock. Potential common shares in the diluted EPS
         computation are excluded in net loss periods as their effect would be
         antidilutive.


                                       10


<PAGE>


CHINA BROADBAND CORP.                                                          4
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(EXPRESSED IN UNITED STATES DOLLARS)
--------------------------------------------------------------------------------


     4.  ACCOUNTING POLICIES (CONTINUED)

         NEW ACCOUNTING PRONOUNCEMENTS

         In June 2001, the FASB approved SFAS No. 141, "Business Combinations"
         and issued this statement in July 2001. SFAS No. 141 establishes new
         standards for accounting and reporting requirements for business
         combinations and will require that the purchase method of accounting be
         used for all business combinations initiated after June 30, 2001. Use
         of the pooling-of-interests method will be prohibited. The Corporation
         expects to adopt this statement during the first quarter of fiscal
         2002. Management does not believe that SFAS No. 141 will have a
         material impact on the Corporation's consolidated financial statements.

         In June 2001, the FASB approved SFAS No. 142, "Goodwill and Other
         Intangible Assets," which supercedes APB Opinion No. 17, "Intangible
         Assets". The FASB issued this statement in July 2001. SFAS No. 142
         establishes new standards for goodwill acquired in a business
         combination and eliminates amortization of goodwill and instead sets
         forth methods to periodically evaluate goodwill for impairment. The
         Corporation expects to adopt this statement during the first quarter of
         fiscal 2002. During the six months ended June 30, 2001, goodwill
         amortization totaled $215,372.

     5.  ACQUISITION OF BIG SKY NETWORK CANADA LTD.

         On September 29, 2000, the Corporation closed a common stock purchase
         agreement to buy 50,000 common shares of BSN, increasing its ownership
         to 100% of BSN. The acquisition was accounted for as a purchase. The
         purchase price was US$12.7 million, consisting of $2.5 million cash, a
         $1.7 million promissory note and 1,133,000 common shares of the
         Corporation valued at the fair market value of the common shares of
         $8,497,500. The purchase price has been allocated as follows:
                                                      -------------------
                                                              $
                                                      -------------------

        Assets acquired, excluding cash
          Net working capital deficiency                     (742,327)
          Investment in Shekou joint venture                2,684,438
          Intellectual property                               849,750
          Chengdu joint venture                             5,098,500
          Shekou joint venture                              2,549,250
          Goodwill                                          2,153,717
                                                      -------------------
                                                      -------------------
                                                           12,593,328

        Cash acquired                                         104,172
                                                      -------------------
                                                      -------------------

        Net assets acquired                                12,697,500
                                                      ===================


                                       11


<PAGE>


CHINA BROADBAND CORP.                                                          5
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(EXPRESSED IN UNITED STATES DOLLARS)
--------------------------------------------------------------------------------


     5.  ACQUISITION OF BIG SKY NETWORK CANADA LTD. (CONTINUED)

         The promissory note bears interest at 8% per annum and is payable at
         maturity. The principal is due on September 29, 2001 (see Note 9).

         The values ascribed to the acquired intangibles including intellectual
         property, Shekou joint venture and Chengdu joint venture were based on
         an estimation of fair value. The Shekou joint venture and Chengdu joint
         venture intangibles represent government approved contracts to provide
         Internet services in the PRC. The valuation of the assets was performed
         by management. In preparing the valuation management made a number of
         assumptions which included the estimated subscriber base in both Shekou
         and Chengdu, the market value of subscribers based on values assigned
         subscribers in the United States and in Europe, the relationships
         established with the governments in the municipalities the Corporation
         was considering having operations in, the value of the extensive legal
         work in establishing the framework to have operations in China and
         discussions on the value of those operations with various vendors.

     6.  RELATED PARTY TRANSACTION

         During the period ended June 30, 2001, the Corporation deposited
         $2,000,000 in a bank account in the name of Daming Yang, President, to
         fund on-going joint ventures activities. The Corporation intends to use
         these funds to open a bank account in Hong Kong once the appropriate
         documentation can be processed. As at June 30, 2001, $1,538,886 is held
         in this bank account.

     7.  CONTINGENCIES

         On March 29, 2001, The Orbiter Fund Ltd., The Viator Fund Ltd., Lancer
         Offshore Inc. and Lancer Partners Limited Partnership (collectively,
         the "Plaintiffs") filed an action in the Court of Queen's Bench of
         Alberta, Judicial District of Calgary (Action No. 0101-07232), naming
         Matthew Heysel, CEO and China Broadband Corp. as defendants. The action
         alleges that Mr. Heysel made certain misrepresentations to the
         Plaintiffs in connection with the Plaintiffs' purchase of 500,000
         shares of the Corporation's common stock at $1.00 per share and 866,667
         shares of China Broadband Corp.'s common stock at $7.50 per share. The
         Plaintiffs are seeking, among other things, damages in the amount of
         $7,000,000, an accounting of profits and a preservation order
         preserving the funds obtained from the Plaintiffs.

         The Corporation believes the claims are without merit and intends to
         vigorously defend against the claims.


                                       12


<PAGE>


CHINA BROADBAND CORP.                                                          6
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(EXPRESSED IN UNITED STATES DOLLARS)
--------------------------------------------------------------------------------


     8.  COMMITMENTS

              a)  On February 13, 2001, the Corporation announced that it had
                  entered into an agreement with a supplier to purchase
                  equipment and services relating to the Internet services
                  provided by the joint ventures in the PRC. Under the terms of
                  the agreement, the Corporation has the option of purchasing up
                  to $250 million in equipment and services at discounted prices
                  over the five year term.

              b)  On March 8, 2001, BSN entered into a cooperative joint venture
                  agreement with Changsha Guang Da Television Broadcast Network
                  Ltd. ("Changsha Guang Da") to provide Internet technology
                  service in Hunan Province, PRC. The agreement, subject to
                  government approvals, commits Changsha Guang Da to provide
                  exclusive access to its HFC network, facilities and
                  frequencies to allow the joint venture to provide Internet
                  connectivity services to cable TV subscribers of Changsha
                  Guang Da. The contract duration is 18 years. BSN will receive
                  65% of the net revenue during the first five years, 50% for
                  the next five years and 40% thereafter. Under the terms of the
                  agreement, BSN is required to invest $18 million of capital
                  and equipment, staged over the life of the joint venture
                  agreement.

              c)  On May 1, 2001, the Corporation entered into an agency
                  agreement for financial advisors services for a period of six
                  months commencing May 1, 2001. As compensation for services,
                  the Corporation will pay a monthly fee of Cdn$10,000
                  (US$6,540).

     9.  SUBSEQUENT EVENT

         On July 27, 2001, the Corporation completed a transaction to cancel a
         promissory note payable (see Note 5).

         The promissory note was surrendered for a warrant to purchase 500,000
         shares of the Corporation's common stock at a price of $1.00 per share.
         The warrant expires on July 27, 2003. A payment of $115,290.43 was also
         made representing the accrued interest on the promissory note from
         September 29, 2000 to the closing date at a rate of 8% per annum. Using
         the Black-Scholes method of valuing warrants, the warrants have a value
         of $277,775, that will result in an extraordinary gain of $1,422,225
         in the third quarter. The gain will result in an income tax expense of
         approximately $498,000, however, the Corporation has sufficient losses
         carried forward to offset the expense.

         UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

         The following table represents unaudited pro forma consolidated
         information as at June 30, 2001 and December 31, 2000, had the
         promissory note been cancelled on December 31, 2000. The pro forma data
         is presented for illustrative purposes only and is not necessarily
         indicative of the results of operations of future periods or the
         results that actually would have occurred had the promissory note been
         cancelled for the entire six month period ending June 30, 2001.

         The pro forma results include the impact of certain adjustments
         primarily cash, liabilities, paid in capital, accumulated deficit and
         interest expense.


                                       13


<PAGE>


CHINA BROADBAND CORP.                                                          7
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(EXPRESSED IN UNITED STATES DOLLARS)
--------------------------------------------------------------------------------


     9.  SUBSEQUENT EVENT (CONTINUED)
                                                   -------------- --------------
                                                     JUNE 30,      December 31,
                                                       2001            2000
                                                   -------------- --------------

        Pro forma cash                                2,766,348       4,554,102
        Pro forma liabilities                           149,082         212,831
        Pro forma additional paid in capital         21,719,106      20,909,119
        Pro forma accumulated deficit                 4,998,146       2,254,981
        Pro forma interest expense/fees                       -         114,026
        Pro forma extraordinary gain                  1,422,225       1,422,225
        Pro forma earnings per share before
          extraordinary item                              (0.15)          (0.21)
        Pro forma earnings per share including
          extraordinary item                              (0.08)          (0.13)

        Number of shares                             19,474,517      19,474,517









                                       14


<PAGE>


ITEM 2:           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                  AND RESULTS

FORWARD-LOOKING STATEMENTS

         Included in this report are various forward-looking statements, which
can be identified by the use of forward looking terminology such as "may,"
"will," "expect," "anticipate," "estimate," "continue," "believe" or other
similar words. We have made forward-looking statements with respect to the
following, among others: our goals and strategies; our expectations related to
growth of the Internet in China and the performance of our joint ventures; our
joint venture partners' ability to obtain licenses and permits to operate as
Internet service providers in China; our ability to earn sufficient revenues
from our joint ventures; the importance and expected growth of Internet
technology and the demand for Internet services in China; our ability to
continue as a going concern; and our future revenue performance and our future
results of operations. These statements are forward-looking and reflect our
current expectations. They are subject to a number of risks and uncertainties,
including but not limited to, changes in the economic and political environments
in China, changes in technology, changes in the Internet marketplace in China,
competitive factors and other risks described in our annual report on Form
10-KSB and on Form S-1, Amendment No. 5 which were filed with the United States
Securities and Exchange Commission. In light of the many risks and uncertainties
surrounding China Broadband, China and the Internet marketplace, you should keep
in mind that we cannot guarantee that the forward-looking statements described
in this report will transpire and you should not place undue reliance on forward
looking statements.

SUMMARY FINANCIAL DATA


<TABLE>
<CAPTION>


STATEMENT OF OPERATIONS DATA:
---------------------------------------------------------------------------------------------------------------------
                                                 THREE MONTH PERIOD                            PERIOD FROM FEBRUARY
                          THREE MONTH PERIOD            ENDED          SIX MONTH PERIOD ENDED       1, 2000 TO
                          ENDED JUNE 30, 2001       JUNE 30, 2000          JUNE 30, 2001           JUNE 30, 2000
                              (unaudited)            (unaudited)            (unaudited)             (unaudited)
---------------------------------------------------------------------------------------------------------------------
<S>                                       <C>               <C>                          <C>               <C>

Net Sales                                 $0                $83,333                      $0                $83,333
Loss from operations              $1,441,107               $116,180              $2,660,955               $373,756
Net loss                          $1,618,064                $70,671              $2,890,243               $328,247
Basic loss per share                 ($0.08)                ($0.00)                 ($0.15)                ($0.03)
Basic weighted average
common shares
outstanding                       19,474,517             15,415,070              19,474,517              9,679,276
---------------------------------------------------------------------------------------------------------------------

</TABLE>

<TABLE>
<CAPTION>


BALANCE SHEET DATA:
----------------------------------------------------------------------------------------------
                                                    June 30, 2001        December 31, 2000
                                                     (unaudited)             (audited)
----------------------------------------------------------------------------------------------
<S>                                                      <C>                     <C>

Cash and cash equivalents                                $2,880,374              $4,668,128
Working capital                                          $1,085,197              $2,898,608
Total assets                                            $16,264,994             $19,004,945
Long-term obligations                                             -                       -
Total stockholders' equity                              $14,301,886             $17,054,105
----------------------------------------------------------------------------------------------

</TABLE>


         The following discussion and analysis should be read in conjunction
with the financial statements and notes thereto appearing elsewhere in this Form
10-QSB.

OVERVIEW

         We were inactive from the date of our incorporation on February 9, 1993
through December 31, 1997. Through December 31, 1997, no significant capital was
raised and no significant expenses incurred. Our share capital at December 31,
1997 consisted of 100 common shares which was paid in capital of $100. During
our fiscal year ended


                                       15


<PAGE>


December 31, 1998, we raised $59,971 in capital by selling 2,319,000 common
shares, and incurred start up expenses of $25,095.

         On April 14, 2000, we completed a reverse-split of our common stock on
a .65104 for 1 basis reducing our issued and outstanding share capital to
1,509,850 shares of common stock. All information contained in this prospectus
gives effect to the reverse-split.

         On April 14, 2000, we acquired all of the issued and outstanding shares
of China Broadband (BVI) Corp., in exchange for 13,500,000 shares of our common
stock. Because we had only 1,509,850 (post reverse-split) shares issued and
outstanding on the date of our acquisition, the former shareholders of China
Broadband (BVI) Corp., acquired control over the predecessor company. In
instances like this, accounting principles require that the transaction be
reflected in financial statements as a reverse acquisition. In this case, common
control started immediately after the completion of the acquisition, effectively
April 14, 2000. Consequently, under the principles of reverse acquisition
accounting China Broadband (BVI) Corp. was deemed to be the acquirer and our
consolidated financial statements are presented as a continuation of the
financial position and results from operations of China Broadband (BVI) Corp.

         Following our acquisition of China Broadband (BVI) Corp., SoftNet
Systems Inc. acquired an additional 40,000 common shares of China Broadband
(BVI) Corp.'s subsidiary, Big Sky Network Canada Ltd. at a price of $2 million.
The 40,000 shares of Big Sky Network, when added to 10,000 shares of Big Sky
Network previously acquired by SoftNet for $500,000, increased SoftNet's
ownership in Big Sky Network to 50%. The original $500,000 invested in Big Sky
Network was used for working capital and the further $2.0 million was used to
fund Big Sky Network's Shekou joint venture. On September 29, 2000, we purchased
SoftNet's 50% interest in Big Sky Network through China Broadband (BVI) Corp.,
bringing our indirect ownership interest in Big Sky Network to 100%, for
$12,697,500 in the form of the following consideration:

         o    $2,500,000 in cash;

         o    a promissory note in the principal  amount of $1,700,000,  due
              September 29, 2001, with interest payable at maturity at the rate
              of 8% per annum;

         o    forgiveness  of debt owed, if any, as at the closing date of the
              transaction. No debt was owed as of the closing date; and

         o    1,133,000 shares of our common stock at a deemed value of $7.50
              per share.

         Subsequent to our  acquisition of China  Broadband  (BVI) Corp.,  China
Broadband  Corp.  completed three private placements totaling 3,331,667 shares
of common stock for net proceeds of $11,316,692.

         We, China Broadband Corp., are a development stage company, which means
we are in the process of developing our business. We have incurred losses since
our inception, and we anticipate that we will continue to incur losses in the
foreseeable future. Our auditors have expressed considerable doubt that we will
be able to continue. Management is addressing this concern with a plan of equity
and debt financing and profits from future dividends from our joint ventures.

RESULTS OF OPERATIONS

Revenues

CHINA BROADBAND CORP.

         For the 3 months and 6 months ended June 30, 2001, the Company did not
earn revenues compared to $83,333 for the 3 months and 6 months ended June 30,
2000. The Company provided technical consulting services to Big Sky Network from
May 1, 2000 to April 30, 2001 pursuant to a Technical Services Agreement with
Big Sky Network. The acquisition of the remaining 50% interest of Big Sky
Network by the Company on September 29, 2000 required that the revenue from this
arrangement be eliminated on consolidation from the acquisition date forward.

         The Company earns revenues through its ownership interest in the
operating joint ventures in China.


                                       16


<PAGE>


SHEKOU JOINT VENTURE

         For the 3 months ended and 6 months ended June 30, 2001, the Company
received subscriber revenue of approximately $89,900 and $199,900, respectively,
compared to nil for the comparative periods of 2000.

         The Shekou joint venture commenced to provide services on June 30,
2000. As at June 30, 2001, the Shekou Joint Venture has 3,046 subscribers
connected, and 3,206 subscribers awaiting connection. We anticipate
approximately 1,600 new subscribers will be connected during the upcoming
quarter ending September 30, 2001.

CHENGDU JOINT VENTURE

         The Chengdu joint venture commenced operations on October 26, 2000. At
June 30, 2001, the Chengdu joint venture has 554 subscribers connected, and 120
subscribers awaiting connection. We anticipate approximately 500 new subscribers
will be connected during the upcoming quarter ending September 30, 2001. The
Chengdu joint venture connected 513 subscribers during June 2001. In order to
penetrate this new market, new subscribers are provided with free Internet
access for a period of three months. As a result, this joint venture has not
reported any revenue during 2001 and 2000.

         We anticipate revenues from the Shekou and Chengdu joint ventures to
increase in the quarter ending September 30, 2001, as we connect more
subscribers and the free access period in Chengdu expires.

DEYANG JOINT VENTURE

         We supplied equipment and technical expertise to our joint venture
partner to conduct a beta test to determine the compatibility of our systems. We
will commence commercial operations once our joint venture partner has conducted
a successful beta test and obtained the appropriate governmental permits and
approvals. Management does not anticipate any significant revenues from this
joint venture during 2001.

         Our joint ventures generate revenues from fees charged to subscribers
for use of the joint ventures modems that enable connection to the Internet
through the cable television system. Under the terms of the existing joint
venture contracts, the net profits will be distributed to each of the joint
venture parties each year after the joint venture has paid applicable taxes and
set aside the reserve, expansion and staff welfare and bonus funds mandated by
the joint venture contract and Chinese law. The net profits to be distributed
will be paid to Big Sky Network. These payments may be exchanged into US
currency and repatriated under Chinese law and with the Department of Foreign
Trade and Economic Cooperation approval. The payment of dividends and
distributions from our joint ventures are subject to restrictions under Chinese
law. Our operations in China are also subject to significant legal and
operational uncertainties, such as the potential application of regulations that
prohibit foreign investment in the telecommunications industry in China or that
restrict the remittance of foreign exchange outside of China and the uneven
quality and reliability of telecommunications networks in China.

Expenses

         During the 3 months ended June 30, 2001, and 6 months ended June 30,
2001, we incurred operating expenses of $1,441,107 and $2,660,955 respectively
compared to expenses of $199,513 and $457,089 for the respective quarters of
2000. Expenses have increased during the second quarter of 2001 over the first
quarter of 2001 due to executive management spending more time in China to
increase the subscriber base in Chengdu, assist in the beta test in Deyang, and
oversee our increased investment in China.

         The following table shows comparative expenses for the 3 months ended
June 30, 2001, and 6 months ended June 30, 2001, with their comparative amounts
for 2000.


                                       17


<PAGE>


<TABLE>
<CAPTION>


General Operating Expenses
---------------------------------------------------------------------------------------------------------------------
                           THREE MONTHS ENDED     THREE MONTH ENDED    SIX MONTH PERIOD ENDED  PERIOD FROM FEBRUARY
                                                                                                    1, 2000 TO
                             JUNE 30, 2001          JUNE 30, 2000          JUNE 30, 2001           JUNE 30, 2000
                              (unaudited)            (unaudited)            (unaudited)             (unaudited)
---------------------------------------------------------------------------------------------------------------------
<S>                                 <C>                     <C>                    <C>                    <C>

Calgary Office Costs                $342,328                $98,310                $530,695               $124,084
Beijing Office Costs                $128,200                                       $368,200
Professional Services                $85,069                $75,426                $233,948               $209,788
Investor Relations                   $96,042                                       $115,655
Amortization                        $676,831                                     $1,210,510
Non Cash Compensation                $85,359                $15,235                $138,024                $13,235
Misc.                                $27,278                $10,542                 $63,923                $10,982
                          -          -------                -------                 -------                -------
TOTAL                             $1,441,107               $199,513              $2,660,955               $457,089
---------------------------------------------------------------------------------------------------------------------

</TABLE>


         Calgary office expense includes the costs of 6 executive management
consultants (including the Chief Executive Officer, President, Chief Financial
Officer, Chief Technology Officer, Vice President-Network Engineering, and Vice
President-Systems Engineering) and 1 administrative consultant in Canada,
travel, rent, telephone, insurance, and other offices costs associated with
maintaining a principal business office in North America. Calgary office costs
have increased for the 3 months ended June 30, 2001 and for the 6 months ending
June 30, 2001, compared to the same periods of 2000. The increase in cost is
attributable to the implementation of our business plan during the second half
of 2000. We expect our travel costs to increase in the upcoming quarter as we
work to secure additional financing.

         Beijing office costs include the costs of maintaining business
operations in China. These include salaries and contract fees for 5 non-joint
venture management consultants and their travel, office rent, insurance, and
other non joint venture costs. Also included is a one-time bonus paid to the
staff of $40,000. The Beijing office was not in place for the first half of 2000
and there are no comparative amounts. We plan to recruit a financial controller
in the third quarter of 2001 to centralize our financial accounting activities
in China. This will increase costs in the upcoming quarters.

         Professional services include costs for accounting, audit and legal
advisory expense related to the preparation of our reports under the Securities
Exchange Act of 1934 as amended and other government reporting costs as well as
the preparation of contractual agreements. We expect our accounting and audit
fees to remain constant. We expect our legal costs to increase as we defend
legal action filed against us. See "Note 7 - Contigencies" to the unaudited June
30, 2001 financial statements.

         Investor relations expense includes those costs related to public
relation activities and fees paid to investor relations services under two
investor relations arrangements. We paid Canaccord Capital Europe $30,000 under
an arrangement extended until April 20, 2001. We also retained Armor Capital for
the period May 1, 2001, to November 1, 2001, for a monthly fee of Cdn$10,000
(approximately US$6,500) to introduce us to institutional investors as we work
towards securing additional financing in the upcoming quarter. We do not
anticipate entering into any further arrangements during the quarter ending
September 30, 2001.

         Amortization and depreciation expense result from the amortization of
the cost of the acquisition of Big Sky Network and depreciation of office
equipment and leasehold improvement's in the North American office.

         Non-cash compensation relates to amortization of 100,000 warrants
issued on November 1, 2000, amortization of 450,000 options granted on February
2, 2001, and amortization of 10,000 options granted on June 29, 2001. This
results in a non-cash compensation expense of $85,359 for the 3 months ended
June 20, 2001, and $138,024 for the 6 months ended June 30, 2001. There were no
comparative amounts for the 3 months ended June 30, 2000, and 6 months ended
June 30, 2000.


                                       18


<PAGE>


         Overall, we anticipate that expenses will increase during 2001 compared
to 2000 for the following reasons:

         o    We intend to continue to negotiate and finalize letters of
              intent and definitive agreements to form joint ventures;

         o    We intend to support our joint ventures' efforts as they begin
              extensive marketing and promotional campaigns to build
              subscription bases in Shekou and Chengdu;

         o    We will incur expenses related to the launch of joint venture
              services in Deyang and other potential areas;

         o    We will incur costs associated with finance raising activities;

         o    We will incur costs related to hiring additional
              personnel/consultants to provide management, technical and support
              services to our growing organization; and

         o    We will incur other costs related to implementing our business
              plan and financing our joint venture obligations.

Losses

         For the 3 months ended June 30, 2001, and 6 months ended June 30, 2001,
we incurred a loss from operations of $1,441,107 and $2,660,955, respectively.
We had an equity loss from the Shekou and Chengdu joint ventures' activities in
China for the 3 months ending June 30, 2001, and the 6 months ending June 30,
2001, of $201,441 and $310,194, respectively. Our loss was reduced by interest
income of $24,484 for the 3 months ended June 30, 2001, and $80,906 for the 6
months ended June 30, 2001, to a net loss of $1,618,064 for the 3 months ended
June 30, 2001, and a net loss of $2,890,243 for the 6 months ended June 30,
2001.

         For the comparable period of 2000, we incurred a net loss of $70,671
for the 3 months ended June 30, 2000, and a net loss of $328,247 for the 6
months ended June 30, 2000, after interest income of $125,608 for the 3 and 6
months ending June 30, 2000.

         We anticipate losses to continue as we build our subscriber base in the
Chengdu and Shekou joint ventures.

         Since we are in the development stage, all losses accumulated since
inception have been considered as part of our development stage activities.

LIQUIDITY AND CAPITAL RESOURCES

         As of June 30, 2001, we had cash and cash equivalents of $2,880,374 and
working capital, including cash and cash equivalents, of $1,085,197. Since
inception, we have financed operations primarily through sales of equity
securities and have raised a total of $11,316,692 net of share issuance costs of
$75,811. On a consolidated basis, our current operating cash expenditures are
expected to be approximately $200,000 to $225,000 per month through March 31,
2002. Our future capital requirements may increase based on a number of factors,
including:

         o    rate of expansion of existing joint ventures,
         o    rate of signing new joint ventures,
         o    capital equipment requirements for new joint ventures,
         o    the level of marketing required to expand our service offerings,
         o    our joint venture partners' ability to lease additional bandwidth
              as our subscriber base expands, and
         o    price competition in our markets.

         During the period ended June 30, 2001, the Corporation deposited
$2,000,000 in a bank account in the name of Daming Yang, President, to fund
ongoing joint venture activities. The Corporation intends to use these funds to
open a bank account in Hong Kong once the appropriate documentation can be
processed. As at June 30, 2001, $1,538,886 was held in this bank account.

         Our ability to continue as a going concern is dependent upon our
ability to generate profitable operations in the future and to obtain the
necessary financing to meet our obligations and repay our liabilities arising
from normal business operations when they come due. We will be unable to
continue as a going concern if we are unable to earn sufficient revenues from
our operations or to raise additional capital through debt or equity financings
to meet our working capital and joint venture capital contribution obligations.
The outcome of these matters cannot be predicted with any certainty at this
time.


                                       19


<PAGE>


         We anticipate that we will be required to raise an additional $6
million to fund our current plan of growth and existing operations through June
30, 2002. See "Plan of Operation." In addition, on March 8, 2001, Big Sky
Network Canada Ltd. entered into a preliminary agreement to form a joint venture
with Changsa Guang Da Television Broadcast Network Ltd. to provide Internet
technology service in Hunan Province. The term of the contract is 18 years, and
Big Sky Network will receive 65% of the net revenue during the first five years,
50% for the next five years and 40% thereafter. Under the terms of the
agreement, we have committed to invest $18 million of capital and equipment,
staged over the life of the joint venture agreement. Our initial investment
during 2001 is anticipated to be $1 million, with subsequent investments in
amounts to be determined through our negotiations of the definitive joint
venture agreements with our Chinese joint venture partner. We cannot assure you
that the joint venture will receive government regulatory approval or that
sufficient financing will be available to meet our investment commitment.

         As disclosed in our Form 10-QSB filed on May 15, 2001, a legal action
was filed on March 29, 2001, against us and our Chief Executive Officer by
certain investors, seeking among other things, damages in the amount of
$7,000,000, an accounting of profits and a order which may prohibit us from
expending funds to fund our business. Although we believe the claim is without
merit and will vigorously defend ourselves against the claims, we cannot assure
you that the court will not grant the plaintiffs interim relief, which could
affect our ability to fund our plan of operation. The lawsuit may adversely
affect our ability to obtain additional financing.

         Our principal source of capital has been equity financing from
investors and our founders. We are exploring opportunities for equity financing,
vendor financing, bank credit facilities and export credit agency arrangements.
Meeting our future financing requirements is expected to be dependent on access
to equity capital markets. We may not be able to raise additional equity when
required or on favorable terms that are not dilutive to existing shareholders.

         The growth of our business in China will require capital investments in
China for the foreseeable future. The joint ventures have generated nominal
revenues to date and any future profits will likely be re-invested in additional
joint ventures. At a future date when surplus earnings in the joint ventures
occurs, there can be no assurance that the joint ventures will be able to pay
dividends from China due to restrictions under Chinese law. We estimate that the
operating cash break even point for the facilities in Shekou will require the
equivalent of 3,000 - 3,500 subscribers on an annualized basis at present
pricing structures. The Chengdu Joint Venture's efforts to obtain paying
subscribers has been slower than anticipated, and we estimate that operating
cash break even point for the facilities in Chengdu will require the equivalent
of 4,000 subscribers on an annualized basis at present pricing structures. We
cannot assure you that our joint ventures will attract a sufficient number of
subscribers to become commercially profitable or that our projections will not
change as a result of changes in the economy or other conditions.

         During the six-month period ended June 30, 2001, we completed the
following transactions:

         On February 2, 2001, we issued an additional 550,000 stock options
under the 2000 Stock Option Plan. The Options were granted at an exercise price
of $7.50, fully vested, for a term of three years.

         On February 13, 2001, we announced that we had entered into an
agreement with Nortel Networks to purchase equipment and services relating to
the Internet services provided by the joint ventures in China. Under the terms
of the agreement, we have the option of purchasing up to $250 million in
equipment and services at discounted prices over a five-year term.

         On June 1, 2001, Shanghai Min Hang Cable Television Center forwarded to
Big Sky Network an expression of interest in the two companies working together
to form a joint venture.

         On June 18, 2001, Big Sky Network entered into a Memorandum of
Understanding with Beijing Gehua Cable TV Networks Co., Ltd. to jointly develop
broadband Internet network services. We are to supply equipment, technology,
capital and personnel. Beijing Gehua will supply a network of 10,000 subscribers
as a test group.

         On June 20, 2001, Big Sky Network entered into a Letter of Intent with
Chongqing Branch of Ji Tong Network Communications Co., Ltd. to jointly build
Internet networks. Under the terms of the agreement, we will provide 80 million
RMB (US$ 9.64 million) and technical personnel. The agreement calls for the
project to be deployed in two stages. The first stage consisting of connecting
60,000 households before the end of 2001 and stage two calls for the number of
connected households to be 100,000.


                                       20


<PAGE>


         On June 29, 2001 we issued an additional 460,000 stock options under
the 2000 Stock Option Plan. These options were granted at $1.00 for a term of 5
years. One third of the options vested upon granting with the balance vesting
one third on the first anniversary of the grant and the last third vesting on
the second anniversary of the grant.

         Subsequent to the six-month period ended June 30, 2001, we completed
the following transactions:

         On July 10, 2001, Big Sky Network entered into a Memorandum of
Understanding with Fujian Provincial Radio and TV Network Co. Ltd. to pursue
negotiations to develop and build a broadband data transmission network jointly.

         On July 27, 2001, China Broadband Corp. and Canaccord International
Ltd. completed a promissory note cancellation transaction, under which the
$1,700,000 Promissory Note we issued to SoftNet was surrendered for cancellation
Canaccord International Ltd. for the following consideration:

         o    A Warrant to purchase 500,000 shares of our common stock at a
              price of $1.00 per share, exerciseable until July 27, 2003. The
              Warrant has not been registered and the Warrant was issued
              pursuant to an exemption from registration under Regulation S
              promulgated under the Securities Act of 1933.

         o    A payment of $115,290.43 representing the accrued interest on the
              Promissory Note to the date to closing at the rate of 8% per
              annum.

         The Promissory Note, originally issued to SoftNet Systems, Inc. on
September 29, 2000, was acquired by Canaccord International Ltd. in a private
transaction between SoftNet and Canaccord.

         We are in discussions with prospective investors for additional cash
equity investments and equipment suppliers for vendor financing or leasing
opportunities. We cannot give any assurance that any additional financing can be
finalized in the near future.

OUTLOOK

         Our Shekou and Chengdu joint ventures demonstrated that providing
equipment and technical services to users of broadband Internet services can be
operational with investment of capital, equipment and technical skills. We
believe that the demand for Internet access and services for individuals,
schools and businesses in China will continue to increase. We estimate that our
operational facilities in Shekou and Chengdu can be profitable with a subscriber
base of approximately 3,000 and 4,000 users, respectively. Our third joint
venture in Deyang is expected to receive governmental approval and permits prior
to the end of 2001. Our preliminary agreement to form a joint venture with
Changsha Guang Da, Beijing Gehua, Chongqing and Shanghai Min Hang are also
expected to receive governmental approval and permits prior to the end of 2001.
We believe that our marketing efforts in China will result in increased
opportunities to expand our services to other key cities. Our goal is to enter
into exclusive arrangements in provincial capital cities and other strategic
locations in China

         We estimate that it requires approximately $1 million of capital,
equipment and technical services to commence commercial Internet service in a
new joint venture. Our current capital resources are limited. There can be no
assurance that we will have sufficient financial, technical and human resources
to undertake new joint ventures or maintain the joint ventures currently in
service.

PLAN OF OPERATION

         As of August 7, 2001, our management anticipates that we currently have
sufficient working capital to fund our current operations through 2001.

Estimated Capital Requirements

         To fund our operations for the twelve months ending June 30, 2002,
management estimates that we will require additional capital of approximately $6
million. Our current capital and any additional funds raised are intended to
fund the business operations of Big Sky Network, including the following:


                                       21


<PAGE>



--------------------------------------------------------------------------------
                                                             ESTIMATED FINANCIAL
                                                            REQUIREMENTS FOR THE
DESCRIPTION                                                 TWELVE MONTH PERIOD
                                                            ENDING JUNE 30, 2002
--------------------------------------------------------------------------------
Shekou Joint Venture - Capital Contributions                             $0
Chengdu Joint Venture - Capital Contributions1                      750,000 2
Deyang Joint Venture - Capital Contributions1                     1,000,000 3
Changsha Guang Da Joint Venture - Capital Contributions1          1,000,000 4
Shanghai Min Hang Joint Venture - Capital Contributions1            500,000 5
Beijing Gehua Joint Venture - Capital Contributions 1               500,000 5
Chongquing Joint Venture - Capital Contributions1                   500,000 6
Technical Consulting Expenditures                                   100,000
Management Consulting Expenditures                                  500,000
Sales and Marketing Expenses                                        600,000
Legal and Professional Expenses                                     200,000
General Administrative Expenses                                     700,000
Capital Raising Expenditures                                        100,000
Overhead Expenses                                                   100,000
Miscellaneous                                                      $100,000
                                                                   --------
TOTAL                                                            $6,650,000
                                                                 ==========
--------------------------------------------------------------------------------

1)            These estimates represent capital investments only and do not
              represent contributions of equipment or technical services. We
              intend to obtain vendor financing for the equipment required for
              these joint ventures.
2)            Under the terms of the Chengdu joint venture  agreement,  of the
              total  investment of $3,000,000  required
              over the term of the agreement.
3)            Under the terms of the Deyang joint venture agreement, of the
              total investment of $4,500,000 required over the term of the
              agreement, we must provide $500,000 within 10 days of the joint
              venture partner obtaining all approvals and permits.
4)            The payment terms of our obligation of investing $18,000,000 is to
              be determined through our negotiations of the definitive joint
              venture agreement with our Chinese joint venture partner. We
              estimate our initial contribution will be $1 million in 2001.
5)            The capital investment terms are to be determined through further
              negotiations of joint venture agreements. We estimate our initial
              capital contribution will be $500,000 in 2001.
6)            The payment terms of our obligation of investing 80 million RMB
              (US$9.64 million) is to be determined through negotiations of the
              definitive joint venture agreement. We estimate our initial
              contribution will be $500,000 in 2001.

         The amount and timing of expenditures during the twelve months ending
June 30, 2002 will depend on the success of any contracts we secure, and there
is no assurance the Company will receive significant revenues or operate
profitably. We anticipate that our current working capital is sufficient to
satisfy our cash requirements through 2001, thereafter we will require
additional financing to continue as a going concern. Current cash resources are
not anticipated to be sufficient to fund the next phase of our development and
management intends to seek additional private equity or debt financing. There
can be no assurances that any such funds will be available, and if funds are
raised, that they will be sufficient to achieve our objective, or result in
commercial success.

         We anticipate that we will continue to make capital and equipment
contributions to our joint ventures. We have entered into an agreement with
Nortel Networks to purchase up to $250 million of equipment, software and
services at special pricing for our joint ventures. We cannot assure you that we
will be able to obtain sufficient capital to satisfy all of our obligations
under our joint venture agreements or that any of our joint ventures will be
commercially successful.

         We anticipate that we will hire additional technical, administrative
and sales and marketing personnel during the twelve months ending June 30, 2002,
although we have no current plans to do so. We also anticipate that our joint
ventures will hire technical, administrative and sales and marketing personnel
during 2001 to support their operations and to launch their services. We
estimate that each joint venture will hire between 8 and 15 employees during
2001, subject to the joint venture's needs and the development stage of their
business.

         We do not engage in research and development activities.


                                       22


<PAGE>


RECENTLY ISSUED ACCOUNTING STANDARDS

         In June 2001, the FASB approved SFAS No. 141, "Business Combinations"
and issued this statement in July 2001. SFAS No. 141 establishes new standards
for accounting and reporting requirements for business combinations and will
require that the purchase method of accounting be used for all business
combinations initiated after June 30, 2001. Use of the pooling-of-interests
method will be prohibited. The Corporation expects to adopt this statement
during the first quarter of fiscal 2002. Management does not believe that SFAS
No. 141 will have a material impact on the Corporation's consolidated financial
statements.

         In June 2001, the FASB approved SFAS No. 142, "Goodwill and Other
Intangible Assets," which supercedes APB Opinion No. 17, "Intangible Assets".
The FASB issued this statement in July 2001. SFAS No. 142 establishes new
standards for goodwill acquired in a business combination and eliminates
amortization of goodwill and instead sets forth methods to periodically evaluate
goodwill for impairment. The Corporation expects to adopt this statement during
the first quarter of fiscal 2002. During the six months ended June 30, 2001,
goodwill amortization totaled $215,372.

                                     PART II

ITEM 1.  LEGAL PROCEEDINGS

         See the following forms filed with the United States Securities and
Exchanged Commission:

         o    Form 8-K filed on April 24, 2001
         o    Form 10-QSB - Item 1. Legal Proceedings filed on May 15, 2001

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

a)       SALES OF UNREGISTERED SECURITIES

         None.

b)       USE OF PROCEEDS FROM SALES OF REGISTERED SECURITIES

         Not Applicable.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         The annual meeting of Shareholders was held on June 29, 2001 at which
the following items were voted upon:

<TABLE>
<CAPTION>

                           ITEM                                  FOR          AGAINST        ABSTAIN      NON-VOTE
<S>                                                             <C>              <C>             <C>         <C>


1) Election of members of the Board of Directors
     Ian Aaron                                                  10,738,066       250,000             --           --
     John Brooks                                                10,738,066       250,000             --           --
     Matthew Heysel                                             10,737,966       250,100             --           --
     Richard Hurwitz                                            10,738,066       250,000             --           --
     Thomas Milne                                               10,738,066       250,000             --           --
     Daming Yang                                                10,738,066       250,000             --           --

2) Approve the appointment of Deloitte & Touche LLP             10,988,066             0             --           --

3) Approval and adoption of the China Broadband                 10,367,628       250,200         10,100      360,138
    Corp. 2000 Stock Option Plan

</TABLE>


                                       23


<PAGE>


ITEM 5.  OTHER INFORMATION

         On July 27, 2001, China Broadband Corp. and Canaccord International
Ltd. completed a promissory note cancellation transaction, in which Canaccord
International Ltd. surrendered our promissory note in the amount of $1,700,000
in exchange for:

         o    A Warrant to purchase 500,000 shares of our common stock at a
              price of $1.00 per share. The Warrant has an expiry date of July
              27, 2003. The shares underlying the Warrant have not been
              registered and these securities were issued pursuant to an
              exemption from registration under Regulation S promulgated under
              the Securities Act of 1933.

         o    A payment of $115,290.43 representing the accrued interest on the
              Promissory Note to the date to closing at the rate of 8% per
              annum.

     The Promissory Note was originally issued to SoftNet Systems, Inc. on
September 29, 2000.

     See Note 9 to the Condensed Consolidated Financial Statements contained
herein.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

a) Exhibits.


<TABLE>
<CAPTION>


   EXHIBIT NO.                                           DESCRIPTION
<S>                 <C>

   3.1 (1)          Certificate of Incorporation of the Company consisting of the Articles of
                    Incorporation filed with the Secretary of the State of Nevada on February 9, 1993

   3.2 (5)          Certificate of Amendment to Articles of Incorporation of Institute For Counseling,
                    Inc. filed with the Secretary of the State of Nevada on March 22, 2000

   3.3 (3)          Certificate of Amendment to Articles of Incorporation of Institute For Counseling,
                    Inc. filed with the Secretary of the State of Nevada on April 14, 2000

   3.4 (1)          By-Laws of the Company, dated November 9, 1993

   3.5 (13)         Amended and Restated By-Laws of the Company, dated August 8, 2001

   10.1(2)          Purchase Agreement for the Acquisition of China Broadband (BVI) Corp. among Institute
                    For Counseling, Inc. and China Broadband (BVI) Corp.

   10.2 (2)         Cooperative Joint Venture Contract For Shenzhen China Merchants Big Sky Network Ltd.

   10.3 (4)         Common Stock Purchase Agreement dated September 29, 2000, among SoftNet Systems,
                    Inc., China Broadband Corp. and Big Sky Network Canada Ltd.

   10.4 (4)         Termination Agreement dated September 29, 2000, among SoftNet Systems, Inc., China
                    Broadband Corp., Big Sky Network Canada Ltd. and Matthew Heysel, for himself and as
                    attorney-in-fact for Daming Yang, Kai Yang, Wei Yang, Jeff Xue, Donghe Xue, Lu Wang,
                    Wallace Nesbitt and Western Capital Corp.

   10.5 (4)         Termination Agreement dated September 29, 2000, among SoftNet Systems, Inc., China
                    Broadband Corp., Big Sky Network Canada Ltd., China Broadband (BVI) Corp., Matthew
                    Heysel and Daming Yang.

   10.6 (5)         Cooperative Joint Venture Contract For Sichuan Huayu Big Sky Network Ltd. dated July
                    8, 2000

   10.7 (5)         Strategic Partnership Agreement Between Chengdu Huayu Information Industry Co., Ltd.
                    and Big Sky Network Canada Ltd.


                                       24


<PAGE>


   10.8 (5)         Cooperative Joint Venture Contract For Deyang Guangshi Big Sky Ltd. dated November
                    25, 2000

   10.9 (5)         Consulting Agreement MH Financial Management, for the services of Matthew Heysel

   10.10 (5)        China Broadband Stock Option Plan

   10.11 (5)        Form of Stock Option Agreement

   10.12 (5)        Form of Restricted Stock Purchase Agreement

   10.13 (5)        Letter Agreement dated July 25, 2000 by and between China Broadband Corp. and
                    Canaccord International Ltd.

   10.14 (5)        Joint Development Agreement of City-Wide-Area High Speed Broadband and Data
                    Transmission Services Networks of China Between Big Sky Network Canada Ltd. and
                    Jitong Network  Communications Co. Ltd.

   10.15 (5)        Consulting Agreement Daming Yang

   10.16 (5)        Consulting Agreement and Precise Details Inc. for the services of Thomas Milne

   10.17 (8)        Agreement to the Establishment of Cooperation Joint Venture between Big Sky Network
                    Canada Ltd. and Zhuhai Cable Television Station, dated May 27, 1999

   10.18 (8)        Letter of Intent, dated March 1, 2000, between Big Sky Network Canada Ltd. and Dalian
                    Metropolitan Area Network Center

   10.19 (8)        Letter of Intent, dated November 8, 2000, between Big Sky Network Canada Ltd. and
                    Hunan Provincial Television and Broadcast Media Co. Ltd.

   10.20 (8)        Preliminary Agreement to Form a Contractual Joint Venture, dated March 8, 2001
                    between Big Sky Network Canada Ltd. and Changsha Guang Da Television

   10.21 (6)        Purchase and License Agreement, dated September 28, 2000, between China Broadband
                    Corp. and Nortel Networks Limited

   10.22 (6)        Amendment, dated January 1, 2001, to the Purchase and License Agreement between China
                    Broadband Corp. and Nortel Networks Limited

   10.23 (8)        Consulting Agreement, dated December 22, 2000, between China Broadband Corp and Barry
                    L. Mackie

   10.24 (8)        Consulting Agreement, dated October 1, 2000, between China Broadband Corp and Richard
                    Lam

   10.25 (8)        Consulting Agreement, dated October 1, 2000, between China Broadband Corp and Ping
                    Chang Yung

   10.26 (8)        Consulting Agreement, dated October 1, 2000, between China Broadband Corp and YungPC
                    AP

   10.27 (7)        Common Stock Purchase Agreement dated September 29, 2000, among SoftNet Systems,
                    Inc., China Broadband Corp. and Big Sky Network Canada Ltd.

   10.28 (7)        Termination Agreement dated September 29, 2000, among SoftNet  Systems,  Inc., China
                    Broadband Corp., Big Sky Network Canada Ltd. and Matthew  Heysel,  for himself and as
                    attorney-in-fact  for Daming Yang, Kai Yang, Wei Yang, Jeff Xue, Donghe Xue, Lu Wang,
                    Wallace Nesbitt and Western Capital Corp.

   10.29 (7)        Termination Agreement dated September 29, 2000, among SoftNet Systems, Inc., China
                    Broadband Corp., Big Sky Network Canada Ltd., China Broadband (BVI) Corp., Matthew
                    Heysel and Daming Yang

                    Letter of Intent dated June 1, 2001 between Big Sky Network Canada Ltd. and Shanghai
   10.30 (11)       Min Hang Cable Television Center


                                       25


<PAGE>


   10.31 (11)       Memorandum of Understanding dated June 18, 2001 between Big Sky Network Canada Ltd.
                    and Beijing Gehua Cable TV Networks Co., Ltd.

   10.32 (11)       Letter of Intent between Big Sky Network Canada Ltd. and Chong Qing Branch of Ji Tong
                    Network Communications Co., Ltd.

   10.33 (11)       Consulting Agreement dated April1, 2001 between China Broadband Corp. and Precise
                    Details Inc.

   10.34 (11)       Consulting Agreement dated April 1, 2001 between China Broadband Corp. and M.H.
                    Financial

   10.35 (11)       Consulting Agreement dated April 1, 2001 between China Broadband Corp. and Daming Yang

                    Indemnity Agreement dated June 29, 2001 between China Broadband Corp. and Matthew
   10.36 (11)       Heysel

   10.37 (12)       Memorandum of Understanding between Big Sky Network Canada Ltd. and Fujian Provincial
                    Radio and Television Network Co. Ltd. dated July 10, 2001

   10.38 (13)       Note Cancellation Agreement between China Broadband Corp. and Canaccord International
                    Ltd.

   16.1 (9)         Change in Auditor Letter of Amisano Hanson

   16.2 (10)        Change in Auditor Letter of Arthur Anderson LLP

   21.1 (5)         List of subsidiaries of registrant

(1)      Previously filed on Form 10-SB on December 2, 1999.
(2)      Previously filed on Form 8-K filed on April 28, 2000.
(3)      Previously filed on Form 10-KSB on July 11, 2000.
(4)      Previously filed on Form 8-K filed on September 29, 2000.
(5)      Previously filed on Form S-1 filed on December 6, 2000.
(6)      Previously filed on Form 10-QSB on March 15, 2001, excluding schedules
         and exhibits. Amended to include schedules and exhibits and re-filed on
         Amendment No. 3 to Form S-1. Amended to mark omitted material and
         re-filed on Amendment No. 5 to Form S-1. Certain portions of the
         material have been omitted pursuant to an application for confidential
         treatment which has been filed with the United States Securities and
         Exchange Commission under Rule 406 of the Securities Exchange Act of
         1933, as amended.
(7)      Previously filed on Form 8-K/A on December 12, 2000.
(8)      Previously filed on Form 10-KSB on March 28, 2001.
(9)      Previously filed on Form 8K on August 25, 2000.
(10)     Previously filed on Form 8K on September 26, 2000.
(11)     Previously filed on Form S-1, Amendment No. 3 on July 2, 2001.
(12)     Previously filed on Form S-1, Amendment No. 4 on July 27, 2001.
(13)     Previously filed on Form S-1, Amendment No. 5 on August 10, 2001.


   b) Reports on Form 8-K.

           i. Form 8-K filed April 24, 2001 reporting a legal action instigated against the Company.


</TABLE>


                                       26


<PAGE>


                                   SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                    CHINA BROADBAND CORP.

Date:  August 14, 2001              By: /s/ MATTHEW HEYSEL
                                            ------------------
                                    Name: Matthew Heysel
                                    Title:   Chief Executive Officer
                                    (Principal Executive Officer)


Date:  August 14, 2001              By: /s/ THOMAS MILNE
                                            ----------------
                                    Name: Thomas Milne
                                    Title:  Chief Financial Officer
                                    (Principal Accounting Officer)









                                       27


<PAGE>


<TABLE>
<CAPTION>



                                 EXHIBIT INDEX


   EXHIBIT NO.                                           DESCRIPTION
<S>                 <C>

   3.1 (1)          Certificate of Incorporation of the Company consisting of the Articles of
                    Incorporation filed with the Secretary of the State of Nevada on February 9, 1993

   3.2 (5)          Certificate of Amendment to Articles of Incorporation of Institute For Counseling,
                    Inc. filed with the Secretary of the State of Nevada on March 22, 2000

   3.3 (3)          Certificate of Amendment to Articles of Incorporation of Institute For Counseling,
                    Inc. filed with the Secretary of the State of Nevada on April 14, 2000

   3.4 (1)          By-Laws of the Company, dated November 9, 1993

   3.5 (13)         Amended and Restated By-Laws of the Company, dated August 8, 2001

   10.1(2)          Purchase Agreement for the Acquisition of China Broadband (BVI) Corp. among Institute
                    For Counseling, Inc. and China Broadband (BVI) Corp.

   10.2 (2)         Cooperative Joint Venture Contract For Shenzhen China Merchants Big Sky Network Ltd.

   10.3 (4)         Common Stock Purchase Agreement dated September 29, 2000, among SoftNet Systems,
                    Inc., China Broadband Corp. and Big Sky Network Canada Ltd.

   10.4 (4)         Termination Agreement dated September 29, 2000, among SoftNet Systems, Inc., China
                    Broadband Corp., Big Sky Network Canada Ltd. and Matthew Heysel, for himself and as
                    attorney-in-fact for Daming Yang, Kai Yang, Wei Yang, Jeff Xue, Donghe Xue, Lu Wang,
                    Wallace Nesbitt and Western Capital Corp.

   10.5 (4)         Termination Agreement dated September 29, 2000, among SoftNet Systems, Inc., China
                    Broadband Corp., Big Sky Network Canada Ltd., China Broadband (BVI) Corp., Matthew
                    Heysel and Daming Yang.

   10.6 (5)         Cooperative Joint Venture Contract For Sichuan Huayu Big Sky Network Ltd. dated July
                    8, 2000

   10.7 (5)         Strategic Partnership Agreement Between Chengdu Huayu Information Industry Co., Ltd.
                    and Big Sky Network Canada Ltd.

   10.8 (5)         Cooperative Joint Venture Contract For Deyang Guangshi Big Sky Ltd. dated November
                    25, 2000

   10.9 (5)         Consulting Agreement MH Financial Management, for the services of Matthew Heysel

   10.10 (5)        China Broadband Stock Option Plan

   10.11 (5)        Form of Stock Option Agreement

   10.12 (5)        Form of Restricted Stock Purchase Agreement

   10.13 (5)        Letter Agreement dated July 25, 2000 by and between China Broadband Corp. and
                    Canaccord International Ltd.

   10.14 (5)        Joint Development Agreement of City-Wide-Area High Speed Broadband and Data
                    Transmission Services Networks of China Between Big Sky Network Canada Ltd. and
                    Jitong Network  Communications Co. Ltd.

   10.15 (5)        Consulting Agreement Daming Yang

   10.16 (5)        Consulting Agreement and Precise Details Inc. for the services of Thomas Milne

   10.17 (8)        Agreement to the Establishment of Cooperation Joint Venture between Big Sky Network
                    Canada Ltd. and Zhuhai Cable Television Station, dated May 27, 1999


                                       28


<PAGE>


   10.18 (8)        Letter of Intent, dated March 1, 2000, between Big Sky Network Canada Ltd. and Dalian
                    Metropolitan Area Network Center

   10.19 (8)        Letter of Intent, dated November 8, 2000, between Big Sky Network Canada Ltd. and
                    Hunan Provincial Television and Broadcast Media Co. Ltd.

   10.20 (8)        Preliminary Agreement to Form a Contractual Joint Venture, dated March 8, 2001
                    between Big Sky Network Canada Ltd. and Changsha Guang Da Television

   10.21 (6)        Purchase and License Agreement, dated September 28, 2000, between China Broadband
                    Corp. and Nortel Networks Limited

   10.22 (6)        Amendment, dated January 1, 2001, to the Purchase and License Agreement between China
                    Broadband Corp. and Nortel Networks Limited

   10.23 (8)        Consulting Agreement, dated December 22, 2000, between China Broadband Corp and Barry
                    L. Mackie

   10.24 (8)        Consulting Agreement, dated October 1, 2000, between China Broadband Corp and Richard
                    Lam

   10.25 (8)        Consulting Agreement, dated October 1, 2000, between China Broadband Corp and Ping
                    Chang Yung

   10.26 (8)        Consulting Agreement, dated October 1, 2000, between China Broadband Corp and YungPC
                    AP

   10.27 (7)        Common Stock Purchase Agreement dated September 29, 2000, among SoftNet Systems,
                    Inc., China Broadband Corp. and Big Sky Network Canada Ltd.

   10.28 (7)        Termination Agreement dated September 29, 2000, among SoftNet  Systems,  Inc., China
                    Broadband Corp., Big Sky Network Canada Ltd. and Matthew  Heysel,  for himself and as
                    attorney-in-fact  for Daming Yang, Kai Yang, Wei Yang, Jeff Xue, Donghe Xue, Lu Wang,
                    Wallace Nesbitt and Western Capital Corp.

   10.29 (7)        Termination Agreement dated September 29, 2000, among SoftNet Systems, Inc., China
                    Broadband Corp., Big Sky Network Canada Ltd., China Broadband (BVI) Corp., Matthew
                    Heysel and Daming Yang

                    Letter of Intent dated June 1, 2001 between Big Sky Network Canada Ltd. and Shanghai
   10.30 (11)       Min Hang Cable Television Center

   10.31 (11)       Memorandum of Understanding dated June 18, 2001 between Big Sky Network Canada Ltd.
                    and Beijing Gehua Cable TV Networks Co., Ltd.

   10.32 (11)       Letter of Intent between Big Sky Network Canada Ltd. and Chong Qing Branch of Ji Tong
                    Network Communications Co., Ltd.

   10.33 (11)       Consulting Agreement dated April1, 2001 between China Broadband Corp. and Precise
                    Details Inc.

   10.34 (11)       Consulting Agreement dated April 1, 2001 between China Broadband Corp. and M.H.
                    Financial

   10.35 (11)       Consulting Agreement dated April 1, 2001 between China Broadband Corp. and Daming Yang

                    Indemnity Agreement dated June 29, 2001 between China Broadband Corp. and Matthew
   10.36 (11)       Heysel

   10.37 (12)       Memorandum of Understanding between Big Sky Network Canada Ltd. and Fujian Provincial
                    Radio and Television Network Co. Ltd. dated July 10, 2001

   10.38 (13)       Note Cancellation Agreement between China Broadband Corp. and Canaccord International
                    Ltd.


                                       29


<PAGE>


   16.1 (9)         Change in Auditor Letter of Amisano Hanson

   16.2 (10)        Change in Auditor Letter of Arthur Anderson LLP

   21.1 (5)         List of subsidiaries of registrant

(1)      Previously filed on Form 10-SB on December 2, 1999.
(2)      Previously filed on Form 8-K filed on April 28, 2000.
(3)      Previously filed on Form 10-KSB on July 11, 2000.
(4)      Previously filed on Form 8-K filed on September 29, 2000.
(5)      Previously filed on Form S-1 filed on December 6, 2000.
(6)      Previously filed on Form 10-QSB on March 15, 2001, excluding schedules
         and exhibits. Amended to include schedules and exhibits and re-filed on
         Amendment No. 3 to Form S-1. Amended to mark omitted material and
         re-filed on Amendment No. 5 to Form S-1. Certain portions of the
         material have been omitted pursuant to an application for confidential
         treatment which has been filed with the United States Securities and
         Exchange Commission under Rule 406 of the Securities Exchange Act of
         1933, as amended.
(7)      Previously filed on Form 8-K/A on December 12, 2000.
(8)      Previously filed on Form 10-KSB on March 28, 2001.
(9)      Previously filed on Form 8K on August 25, 2000.
(10)     Previously filed on Form 8K on September 26, 2000.
(11)     Previously filed on Form S-1, Amendment No. 3 on July 2, 2001.
(12)     Previously filed on Form S-1, Amendment No. 4 on July 27, 2001.
(13)     Previously filed on Form S-1, Amendment No. 5 on August 10, 2001.


</TABLE>


                                       30