Capital Market Services. Greater China IPO Watch 2009

Capital Market Services Greater China IPO Watch 29

This Greater China IPO Watch provides an overview of the initial public offerings (IPOs) and listing activities on Greater China s principal stock markets, including Hong Kong, Shanghai, Shenzhen and Taiwan. The analysis covers companies which were listed on these markets from 1 January to 31 December 29. For comparability purposes, all figures in this report have been translated into United States Dollars (USD) at the applicable closing exchange rate at the end of each year. Initial public offering in this publication is defined to include all share listings on a platform where the entity s shares have not been listed previously. This report has been prepared by the China/Hong Kong Capital Market Services Group of PricewaterhouseCoopers. Introduction to the four stock markets The Hong Kong stock market consists of two separate boards: the Main Board (MB) and the Growth Enterprise Market (GEM). The MB facilitates fund raising by companies with track records of certain minimum profit, revenue, operating cash flow and/or market capitalisation levels as set out in the Hong Kong listing rules. The GEM focuses on companies which do not fulfil the profitability/track record requirements of the Main Board but have growth potential. Companies established in Mainland China (the People s Republic of China) that are listed in Hong Kong are referred to as H-share companies. Companies owned by Mainland China nationals or enterprises which are listed in Hong Kong through Hong Kong or overseas incorporated holding companies are referred to as Red Chip companies. Both the Shanghai and Shenzhen Stock Exchanges consist of A-share and B-share listing platforms on which companies established in Mainland China can list. The Shenzhen Stock Exchange has a Small and Medium Enterprise (SME) Board and a ChiNext Board to facilitate fund-raising of small and medium-sized enterprises and growing venture enterprises. Shanghai and Shenzhen A-share, and shares listed on SME and ChiNext can only be traded by Mainland China nationals and enterprises, while B-share can only be traded by overseas investors. The Taiwan Stock Exchange (TSEC) facilitates capital raising by companies (both Taiwan and foreign companies) with track records of certain minimum profit and capital base. Technology-based companies without track records but with a certain minimum amount of paid-in capital and projected net worth can also be listed. Most of the companies in Taiwan have to list their shares for a minimum of six months on the over-the-counter market, Emerging Stock on the Gretai Securities Market (GTSM) before listing on TSEC. This review does not include data from the GTSM. Greater China IPO Watch 29

Contents Page Foreword 1 Overview of the IPO markets in Greater China 2 IPOs by stock exchange 3 A/H-share perspective 4 IPO vs. other equity fund raising 5 IPOs by P/E multiples 6 IPOs by share price performance on the first day of listing 7 IPOs by industry sector 8 Turnover value and market capitalisation 9 Top ten IPOs in Greater China from 25 to 29 1 Top ten IPOs in world history and top ten IPOs worldwide in 29 11 Comparison with the US markets 12 Comparison with the European markets 13 Comparison with major Asian markets 14 Comparison of market capitalisation with GDP 15 Greater China IPO Watch 29

Foreword There was a significant rebound of IPO activities in the Greater China capital markets in the second half of 29, even though other capital markets over the world were still suffering from the global financial crisis and contracting economy. There were 28 IPOs in Greater China with total funds raised amounting to USD59.7 billion in 29, compared to 157 IPOs with USD23.9 billion funds raised in 28. The Greater China capital markets regained the leading role with the highest total funds raised among the world s major capital markets in 29. United States (New York Stock Exchange and NASDAQ) ranked second in 29 as there was a lack of mega size company listings. Looking ahead, with the economy stimulation plans still being put in place by various governments, it is expected that both stock markets and IPO activities will continue to be prosperous. The Chinese Government has announced its intention to transform Shanghai into an international financial centre by 22. In this regards, Shanghai is expected to establish an International Board soon to attract red-chips or other sizeable overseas companies to list there. For Hong Kong, we believe that it will continue its well-established position to be a gateway for foreign investors to access to the China market. We expect that these will be more overseas companies offering and listing their shares in Hong Kong in the coming year. There were some sizable companies listed in Hong Kong and Shanghai this year. The average deal size increase from USD.15 billion in 28 to USD.29 billion in 29. In addition, the trend of H-share companies (Mainland China companies listed on the Hong Kong Stock Exchange) offering and listing their shares on the Shanghai A-share market continue in 29. In 29, there was one existing H-share listing its shares on the Shanghai A-share market and there was a company listing its shares in Hong Kong and Shanghai almost the same time. In 29, Shenzhen ChiNext was launched and successfully attracted 36 companies with IPO funds raised of USD3 billion. ChiNext offers a new capital platform for Chinese enterprises engaged in innovation and other growing industries. All these IPOs were offered at a P/E multiple of over 3 times. There was a general increase in pricing, in terms of Price Earnings multiples (P/E), in Hong Kong, Shanghai and Shenzhen. 38% of those newly listed companies in Hong Kong offered shares at a P/Es of more than 2 times while it was only 29% in 28. In Shanghai, most of the IPOs were offered at a P/E multiples of over 3 times in 29 while all the IPOs in Shenzhen were offered at P/E multiples of over 3 times in 29. Kennedy Liu Head of China/Hong Kong Capital Market Services Group PricewaterhouseCoopers 1 Greater China IPO Watch 29

Overview of the IPO markets in Greater China Number of IPOs 3 25 2 15 1 5 Number of IPOs from 25 to 29 242 28 14 157 98 25 26 27 28 29 Year The number of IPOs in Greater China increased from 157 in 28 to 28 in 29. The amount of funds raised from IPOs significantly increased by 15% from USD23.9 billion in 28 to USD59.7 billion in 29. The severe financial crisis in 28 substantially reduced the global IPO activities in 28. A number of IPO projects were suspended in the second half of 28. The capital markets in Greater China regained its momentum in 29 as its economies gradually recovered. Clearing of backlogs is a major factor contributing to the increased number of IPOs and amount of funds in Greater China in 29. Amount of IPO funds raised from 25 to 29 (in USD billion) 12 1 14. USD billion 8 6 4 2 25.6 62. 23.9 59.7 25 26 27 28 29 Year Source: PricewaterhouseCoopers Research Greater China IPO Watch 29 2

IPOs by stock exchange In 29, Hong Kong regained the leading position, with the IPO funds raised amounting to USD32 billion, representing a 276% increase over 28. The significant increase was primarily due to clearing of backlogs as a result of the substantially reduced IPO activities in 28 in line with the global financial crisis. In 27 and 28, Shanghai had the highest amounts of funds raised from IPOs which accounted for 57.7% and 45.2% of total funds raised from IPOs in the Greater China Region. Shenzhen had the highest number of IPOs from 27 to 29. After the shares reforms in 25, the Shenzhen SME Board became active starting from the second half of 26 and had over 5 new listings every year since that year. In 29, Shenzhen ChiNext was launched and successfully attracted 36 companies with IPO funds of USD3 billion raised. ChiNext offers a new capital platform for Chinese enterprises engaged in innovation and other growing industries. In Hong Kong, the number of new listings increased from 49 in 28 to 73 in 29 and the Price-Earnings (P/E) multiples in 29 were generally higher than 28. In Taiwan, the aggregate amount of funds raised remained at USD.2 billion, with the number of new listings (including listing through Taiwan Depositary Receipts) increased slightly from 31 in 28 to 36 in 29. (Funds raised in USD billion) 25 Hong Kong Main Board Hong Kong GEM Shanghai A Shenzhen A Shenzhen SME Board Shenzhen ChiNext Taiwan Total No. of IPOs 6* # 1 3 12-13 98 % of total 61.2% 1.2% 3.1%.% 12.2% - 13.3% 1% Funds raised 24.6.1.3..4 -.2 25.6 % of total 96.1%.4% 1.2%.% 1.5% -.8% 1% 26 No. of IPOs 58* # 6 13 52-11 14 % of total 41.4% 4.3% 9.3%.% 37.1% - 7.9% 1% Funds raised 43.9.2 15.1. 2.1 -.7 62. % of total 7.8%.3% 24.4%.% 3.4% - 1.1% 1% 27 No. of IPOs 84* # 2 25^ 1^ 1-3 242 % of total 34.7%.8% 1.4%.4% 41.3% - 12.4% 1% Funds raised 37.8.2 6.. 5.4 -.6 14 % of total 36.3%.2% 57.7%.% 5.2% -.6% 1% 28 No. of IPOs 47 # 2 6^ 71-31 157 % of total 29.9% 1.3% 3.8%.% 45.2% - 19.8% 1% Funds raised 8.5. 1.8. 4.4 -.2 23.9 % of total 35.6%.% 45.2%.% 18.4% -.8% 1% 29 No. of IPOs 68 # 5 9 54 36 36 28 % of total 32.7% 2.4% 4.3%.% 26.% 17.3% 17.3% 1.% Funds raised 32.. 18.3. 6.2 3..2 59.7 % of total 53.6%.% 3.7%.% 1.4% 5.%.3% 1.% * - included Real Estate Investment Trusts (REITs): 3 in 25, 2 in 26 and 2 in 27 # - included listing by introduction & switch from GEM to Main Board without raising funds in Hong Kong: 3 in 25, 3 in 26, 4 in 27, 2 in 28 and 8 in 29 ^ - included listing companies by shares swap, without raising funds: 2 in Shanghai A-share and 1 in Shenzhen A-share in 27; 1 in Shanghai A-share in 28 Source: PricewaterhouseCoopers Research 3 Greater China IPO Watch 29

A/H-share perspective Companies incorporated in Mainland China can be listed on the Shanghai Stock Exchange and the Shenzhen Stock Exchange as A-share companies. These companies can also be listed in Hong Kong as H-share companies if they fulfil certain criteria. At present, no overseas incorporated companies are listed in Shanghai or Shenzhen. As of 31 December 29, there were a total of 156 Mainland China companies listed as H-share companies on the Hong Kong Stock Exchange, which accounted for 12% in terms of the total number of listed companies in Hong Kong and 26% in terms of market capitalisation of the Hong Kong stock market. Out of these 156 companies, there were 61 companies listed on both the Hong Kong Stock Exchange and the Shanghai or the Shenzhen Stock Exchange. Over the five-year period, a majority of the H-share and A-share dually listed companies had their H-share listings completed before their A-share listings. From 26 to 29, there were some H-share companies listed in Shanghai first and then in Hong Kong shortly afterwards. As of the end of 29, 23 out of the top 5 listed companies (by market capitalisation) in Shanghai had not issued H-share and 47 out of the top 5 listed companies (by market capitalisation) in Shenzhen had not issued H-share. At the same time, 95 H-share companies listed in Hong Kong had not issued A-share. Some of these companies are potential candidates seeking to list on the other stock exchanges and will contribute to fund raising activities in Greater China over the next few years. Number of H-share IPOs from 25 to 29 25 23 2 Number of IPOs 15 1 5 12 9 7 6 25 26 27 28 29 Year As at 31 December 29 Number H-share companies already listed A-share 61 H-share companies without issued A-share 95 Total H-share listed companies in Hong Kong 156 As at 31 December 29 A-share companies (out of 5 according to market capitalisation) in Shanghai without H-share issued A-share companies (out of 5 according to market capitalisation) in Shenzhen without H-share issued Number 23 47 Source: PricewaterhouseCoopers Research Greater China IPO Watch 29 4

IPO vs. other equity fund raising USD billion 2 15 1 5 Total equity funds raised from 25 to 29 (in USD billion) 44% 62% 37% 56% 78% 47% 63% 38% 53% 22% 25 26 27 28 29 Year Other equity funds raised (USD billion) IPO funds raised (USD billion) The relative proportion of funds raised from IPOs in Greater China versus total equity funds raised increased from 22% in 28 to 38% in 29. This was due to the significant increase in total equity funds raised from IPOs in Greater China by 15% from USD23.9 billion in 28 to USD59.7 billion in 29. The amounts of other equity fund raising in the Greater China continued its growth trend and had increased by 2% from USD82.5 billion in 28 to USD99.3 billion in 29. In 29, the relative proportion of funds raised from IPOs versus total equity funds raised was dropped from 1% to 2% in London while the proportion dropped from 16% to 7% in NYSE. In 29, the lower proportion of funds raised from IPOs in London and NYSE is mainly because of these markets were still suffering from the global financial turmoil that started in 28. Hong Kong Shanghai Shenzhen Taiwan Greater China Total (Amounts in USD billion) Amount % Amount % Amount % Amount % Amount % 25 IPO funds raised 24.7 59%.3 8%.4 1%.2 9% 25.6 53% Other equity funds raised 17.5 41% 3.4 92%. % 2. 91% 22.9 47% Total equity funds raised 42.2 1% 3.7 1%.4 1% 2.2 1% 48.5 1% 26 IPO funds raised 44.1 64% 15.1 68% 2.1 33%.7 33% 62. 63% Other equity funds raised 24.5 36% 7.1 32% 4.2 67% 1.4 67% 37.2 37% Total equity funds raised 68.6 1% 22.2 1% 6.3 1% 2.1 1% 99.2 1% 27 IPO funds raised 38 5% 6. 66% 5.4 35%.6 26% 14. 56% Other equity funds raised 38.2 5% 3.6 34% 1.2 65% 1.7 74% 8.7 44% Total equity funds raised 76.2 1% 9.6 1% 15.6 1% 2.3 1% 184.7 1% 28 IPO funds raised 8.5 15% 1.8 33% 4.4 24%.2 25% 23.9 22% Other equity funds raised 46.6 85% 21.6 67% 13.7 76%.6 75% 82.5 78% Total equity funds raised 55.1 1% 32.4 1% 18.1 1%.8 1% 16.4 1% 29 IPO funds raised 32. 39% 18.3 38% 9.2 37%.2 8% 59.7 38% Other equity funds raised 5.8 61% 3.2 62% 15.9 63% 2.4 92% 99.3 62% Total equity funds raised 82.8 1% 48.5 1% 25.1 1% 2.6 1% 159. 1% Source: PricewaterhouseCoopers Research 5 Greater China IPO Watch 29

IPOs by P/E multiples Number of IPOs Number of IPOs Number of IPOs 14 12 1 8 6 4 2 1 8 6 4 2 8 6 4 2 2 1 4 <5 5-9.99 125 7 13 14 18 12 16 17 11 113 15 1-14.99 15-19.99 P/E ratio by year 2-29.99 36 63 45 6 6 2 2 3 1 1 3-49.99 P/E ratio 5-99.99 27 28 29 9 1-299.99 42 24 28 >3 N/A 21 19 11 11 12 1 9 13 7 8 2 1 1 5 2 3 4 1 23 1 2 1 2 1 <5 5-9.99 1-14.99 15-19.99 P/E ratio for 27 2-29.99 3-49.99 P/E ratio P/E ratio for 28 5-99.99 1-299.99 >3 N/A 7 7 2 5 1 4 2 2 4 2 3 1 1 2 3 1 1 1 1 <5 5-9.99 1-14.99 15-19.99 2-29.99 3-49.99 5-99.99 N/A P/E ratio 64 21 2 In 29, there was a general increase in P/E multiples in the Greater China capital market after the general economic recovery in the region since the global financial turmoil. The percentage of IPOs offered at a P/E multiple of over 2 times increased from 68% to 71%. The percentage of IPOs offered at a P/E multiple of over 3 times increased significantly from 7% in 28 to 62% in 29. The increase was in line with the increase in various stock indexes in the Greater China capital markets. Hang Seng Index in Hong Kong and Shanghai Stock Exchange Composite Index were both up by 52% and 8% respectively in 29. In Hong Kong, most of the IPOs were offered at a P/E multiple of below 2 times. However, there was a general increase in the P/E multiples in 29 because of the improving market conditions. The percentage of IPOs offered at a P/E multiples of over 2 times increased from 29% in 28 to 38% in 29. For Shanghai, most of the IPOs were offered at a P/E multiple of over 3 times in 29. In 29, all the IPOs in Shenzhen were offered at a P/E multiple of over 3 times with 2 over 1 times. In Taiwan, more than half of the IPOs were offered at a P/E multiple of below 1 times in both 28 and 29. Number of IPOs 6 5 4 3 2 1 P/E ratio for 29 15 1 12 13 7 6 3 4 5 1 1 1 1 3 3 3 1 2 1 <5 5-9.99 1-14.99 15-19.99 2-29.99 Hong Kong Shanghai Shenzhen Taiwan 49 3-49.99 P/E ratio 39 5-99.99 1-299.99 9 >3 N/A 19 Source: PricewaterhouseCoopers Research Greater China IPO Watch 29 6

IPOs by share price performance on the first day of listing Number of IPOs 6 5 4 3 2 1 1 Share price performance by year % change of first day closing price over IPO price 29 21 13 14 11 11 11 11 7 5 6 6-2% to -1% to -.1% to -29.99% -19.99% -9.99% % to 9.99% 1% to 19.99% 25 21 2% to 49.99% 5 52 39 32 5% to 99.99% 51 24 19 32 9 2 1% to 2% to 199.99% 299.99% 27 28 29 16 4 3% to 499.99% 2 17 39 >5% N/A 27 Most of the new listings closed their first day of trading with a price above the IPO issue price. In 29, 14% of the IPOs enabled investors to have a first day gain of more than 1% and most of these companies were listed on the Shenzhen SME Board or ChiNext. This phenomenon indicates that companies in Greater China have a practice of issuing shares at prices which are favourable to IPO investors. In 29, 1% (excluding those without an IPO price) of the IPOs had their first day closing prices below the issue prices (28: 14%). Share price performance by stock exchange % change of first day closing price over IPO price 27 Number of IPOs 4 3 2 1 6 11 1 2-1% to -.1% to -19.99% -9.99% 24 5 % to 9.99% 1 1 1% to 19.99% 19 1 1 9 3 3 2 2 2 1 2 1 2% to 49.99% 17 5% to 99.99% 38 1% to 199.99% 31 2% to 299.99% 13 3% to 499.99% 2 >5% 4 N/A 13 % change of first day closing price over IPO price 28 Number of IPOs 3 2 1 3-1% to -19.99% 9 9 2 2 1 1 -.1% to -9.99% % to 9.99% 3 3 4 4 1% to 19.99% 9 2% to 49.99% 27 4 2 3 5% to 99.99% 1 18 1% to 199.99% 9 2% to 299.99% 4 3% to 499.99% 2 N/A 19 % change of first day closing price over IPO price 29 Number of IPOs 5 4 3 2 1 1-2% to -29.99% 6-1% to -19.99% 11 -.1% to -9.99% 16 5 % to 9.99% 12 12 1 1 2 1% to 19.99% 33 3 2% to 49.99% 5 39 8 5% to 99.99% 16 5 2 1 2 1% to 199.99% 2% to 299.99% 8 N/A 19 Hong Kong Shanghai Shenzhen Taiwan Source: PricewaterhouseCoopers Research 7 Greater China IPO Watch 29

IPOs by industry sector Most of the Greater China IPO candidates were from the industrial and the retail, consumer goods and services sectors, which represented 68%, 77% and 73% of the total number of IPOs in 27, 28 and 29, respectively. In 29, companies in the industrials sector raised the highest amount of funds because two major Chinese construction companies raised substantial amounts from the A-share and H-share markets. The amount of funds raised by this sector accounted for 33% of the total funds raised in 29. As a result of the listing of two international casinos operation companies in 29, the gross funds raised by retail, consumer goods and services sector increased from USD6.2 billion in 28 to USD17.6 billion in 29. The amount of funds raised by this sector accounted for 3% of the total fund raised in 29. In 28, there was no sizable listing from state-owned banks or insurance companies. In 29, because of the listing of a state-owned bank and a state-owned insurance company, the amounts of funds raised from the financial sector increased significantly from USD.9 billion in 28 to USD16.1 billion in 29. The amount of funds raised by financial sector accounted for 27% of the total fund raised in 29. Fund raised from IPOs in the energy & utilities sectors accounted for 8% of total IPO funds raised in 29 as there was a lack of sizeable IPOs from this sector. Number of IPO by industry sector 27 (Total number of IPOs in 27: 242) Number of IPO by industry sector 28 (Total number of IPOs in 28: 157) Number of IPO by industry sector 29 (Total number of IPOs in 29: 28) 28% 6% 12% 34% 5% 6% 12% 35% 6% 8% 13% 14% 4% 43% 38% Funds raised by industry sector 27 (Total IPO funds raised in 27: USD14 billion) 21% 21% Funds raised by industry sector 28 (Total IPO funds raised in 28: USD23.9 billion) 26% 25% Funds raised by industry sector 29 (Total IPO funds raised in 29: USD59.7 billion) 3% 8% 1% 3% 2% 27% 4% 44% 44% 33% 2% Energy & utilities Financials Information technology & telecommunications Industrials Retail, consumer goods & services Source: PricewaterhouseCoopers Research Greater China IPO Watch 29 8

Turnover value and market capitalisation Both market capitalisation and turnover value of the Greater China capital markets increased significantly in 29 in comparison to 28. The market capitalisation increased significantly by 88% from USD3,463.7 billion at 31 December 28 to USD6,518.9 billion at 31 December 29. The increase was in line with the increase in various stock indices in the Greater China capital markets. Despite, the market capitalisation at 31 December 29 was still 16% lower than the market capitalisation at 31 December 27, before the global financial turmoil. Turnover increased by 54% from USD6,987.1 billion in 28 to USD1,779.6 billion in 29, which is similar to the 27 level. Turnover in the Greater China capital markets was 165% of its market capitalisation in 29 (28: 22%); while it was 63% (28: 26%) in the United Kingdom and 26% (28: 449%) in the United States. (Amounts in USD billion) 27 28 29 Stock exchange Number of listed companies Turnover value Market capitalisation Number of listed companies Turnover value Market capitalisation Number of listed companies Turnover value Market capitalisation Hong Kong Main Board Hong Kong GEM 1,48 2,757.4 2,633.1 1,87 2,271.2 1,323.1 1,145 1,991.1 2,291.5 193 2.4 2.7 174 6.7 5.8 174 9.8 13.5 Shanghai A 85 4,138.1 3,679.5 854 2,633.7 1,419.3 86 5,59.9 2,692.2 Shanghai B 54 47.6 18.4 54 9.8 5.5 54 15.6 12.5 Shenzhen A* 657 2,94.1 768.7 727 1,261.9 347.1 818 2,76.3 854.3 Shenzhen B 55 31.7 16.6 55 8.1 6.2 54 15.1 14. Taiwan 698 1,19. 663.8 718 795.7 356.7 741 927.8 64.9 Total 3,555 1,18.3 7,8.8 3,669 6,987.1 3,463.7 3,846 1,779.6 6,518.9 * including Shenzhen SME Board and Shenzhen ChiNext Source: PricewaterhouseCoopers Research 9 Greater China IPO Watch 29

Top ten IPOs in Greater China from 25 to 29 The top ten IPOs in Greater China accounted for 52% of the total funds from IPOs in 29. In 25 and 26, Hong Kong maintained its leading position in providing a fund raising platform to larger sized IPOs. In 27, Shanghai attracted most of the top ten IPOs which consisted of a number of H-share companies issuing A-shares. In 28 and 29, Hong Kong regained some of its ground and contributed more than half of the top ten IPOs. As there were some sizable IPOs in 29, the average deal size of the top ten IPOs in 29 were 96% higher than the average deal size of the top ten IPOs in 28. 25 Funds Raised (USD billion) Funds raised (USD million) Stock exchange China Construction Bank Corporation 9,231 Hong Kong China Shenhua Energy Co Ltd 3,287 Hong Kong The Link Real Estate Investment Trust* 2,79 Hong Kong Bank of Communications Co Ltd 2,171 Hong Kong China COSCO Holdings Co Ltd 1,23 Hong Kong Shanghai Electric Group Co Ltd 652 Hong Kong Dongfeng Motor Group Co Ltd 589 Hong Kong Foxconn International Holdings Ltd 479 Hong Kong Agile Property Holdings Ltd 467 Hong Kong Guangzhou R&F Properties Co Ltd 295 Hong Kong 21,191 (83%) 26 Company Funds raised (USD million) Stock exchange Industrial and Commercial Bank of China Ltd # 22,41 Hong Kong & Shanghai Bank of China Ltd # 11,152 Hong Kong China Merchants Bank Co Ltd 2,66 Hong Kong Bank of China Ltd # 2,562 Shanghai China Communications Construction 2,38 Hong Kong Co Ltd China Coal Energy Co Ltd 1,944 Hong Kong Daqin Railway Co Ltd 1,922 Shanghai Guangshen Railway Co Ltd 1,324 Shanghai Shui On Land Ltd 877 Hong Kong Kingboard Laminates Holdings Ltd 82 Hong Kong 47,682 (77%) * Real Estate Investment Trust (REIT) # Bank of China Ltd, China Railway Group Ltd, China Railway Construction Corporation Ltd, China South Locomotive & Rolling Stock Corporation Ltd and Metallurgical Corporation of China Ltd were listed in Hong Kong and Shanghai at different time, while Industrial and Commercial Bank of China Ltd and China CITIC Bank Corporation Ltd were listed in Hong Kong and Shanghai concurrently. Source: PricewaterhouseCoopers Research 27 Company Funds raised (USD million) Stock exchange PetroChina Co Ltd 9,154 Shanghai China Shenhua Energy Co Ltd 9,124 Shanghai China Construction Bank 7,955 Shanghai Corporation Ping An Insurance (Group) 5,327 Shanghai Company of China Ltd China CITIC Bank Corporation Ltd # 6,51 Hong Kong & Shanghai China Pacific Insurance (Group) 4,111 Shanghai Co Ltd China Life Insurance Co Ltd 3,881 Shanghai Bank of Communications Co Ltd 3,454 Shanghai China Railway Group Ltd # 3,75 Shanghai China Railway Group Ltd # 2,835 Hong Kong 54,968(53%) 28 Company Funds raised (USD million) Stock exchange China Coal Energy Co Ltd 3,761 Shanghai China Railway Construction 3,259 Shanghai Corporation Ltd # China Railway Construction 2,66 Hong Kong Corporation Ltd # Zijin Mining Group Co Ltd 1,462 Shanghai Jinduicheng Molybdenum Co Ltd 1,36 Shanghai Want Want China Holdings Ltd 1,52 Hong Kong China South Locomotive & Rolling 958 Shanghai Stock Corporation Ltd # China South Locomotive & Rolling 617 Hong Kong Stock Corporation Ltd # SJM Holdings Ltd 497 Hong Kong Renhe Commercial Holdings 437 Hong Kong Company Ltd 15,955(67%) 29 Company Funds raised (USD million) Stock exchange China State Construction 7,347 Shanghai Engineering Corporation Ltd China Minsheng Banking Corp Ltd 4,27 Hong Kong China Pacific Insurance (Group) 3,575 Hong Kong Co Ltd Metallurgical Corporation of China 2,779 Shanghai Ltd # China Longyuan Power Group 2,593 Hong Kong Corporation Ltd Sands China Ltd 2,53 Hong Kong Metallurgical Corporation of China 2,351 Hong Kong Ltd # China Shipbuilding Industry 2,157 Shanghai Company Limited China CNR Corporation Limited 2,36 Shanghai Wynn Macau Ltd 1,869 Hong Kong 31,237(52%) Greater China IPO Watch 29 1

Top ten IPOs in world history and top ten IPOs worldwide in 29 Greater China accounted for three out of the top ten IPOs in world history. The Industrial and Commercial Bank of China Ltd has remained to be the largest IPO, which was listed on the Hong Kong and Shanghai Stock Exchange concurrently in 26. Funds raised (USD billion) Rank Listing year Company Stock exchange Country USD million 1 26 Industrial and Commercial Bank of China Ltd Hong Kong Stock Exchange China 22,41 & Shanghai Stock Exchange 2 28 VISA Inc New York Stock Exchange United 19,65 States 3 1998 NTT Mobile Communications Network Inc Tokyo Stock Exchange Japan 18,379 4 1999 Ente Nazionale per I'Energia Elettrica Milan Stock Exchange Italy 17,48 5 1996 Deutsche Telekom Frankfurt Stock Exchange Germany 13,36 6 26 Bank of China Ltd Hong Kong Stock Exchange China 11,152 7 26 Rosneft Oil Company Russian Trading System Russia 1,656 8 2 AT&T Wireless Services Inc New York Stock Exchange United 1,62 States 9 1997 Telstra Corp Ltd Australian Stock Exchange Australia 9,997 1 25 China Construction Bank Corporation Hong Kong Stock Exchange China 9,231 Source: Thomson Financial Seven out of the top ten IPOs in the world in 29 were from Greater China. Funds raised (USD billion) Rank Listing month Company Stock exchange Country USD million 1 Oct 29 Banco Santander Brasil SA Brazil Stock Exchange Brazil 7,516 2 Jul 29 China State Construction Engineering Shanghai Stock Exchange China 7,347 Corporation Ltd 3 Jun 29 Visanet Brazil Stock Exchange Brazil 4,331 4 Nov 29 China Minsheng Banking Corp Ltd Hong Kong Stock Exchange China 4,27 5 Dec 29 China Pacific Insurance (Group) Co Ltd Hong Kong Stock Exchange China 3,575 6 Nov 29 Maxis Bhd Malaysia Stock Exchange Malaysia 3,315 7 Sept 29 Metallurgical Corp of China Ltd Shanghai Stock Exchange China 2,779 8 Dec 29 China Longyuan Power Group Corporation Ltd Hong Kong Stock Exchange China 2,593 9 Nov 29 Sands China Ltd Hong Kong Stock Exchange China 2,53 1 Sept 29 Metallurgical Corporation of China Ltd Hong Kong Stock Exchange China 2,351 Source: Thomson Financial 11 Greater China IPO Watch 29

Comparison with the US markets (Amounts in USD billion) 27 28 29 Stock exchange Number of IPOs Funds raised Average deal size Number of IPOs Funds raised Average deal size Number of IPOs Funds raised Average deal size Hong Kong 86 38. 49 8.5 73 32. Shanghai 25 6. 6 1.8 9 18.3 Shenzhen 11 5.4 71 4.4 9 9.2 Taiwan 3.6 31.2 36.2 Greater China total 242 14..43 157 23.9.15 28 59.7.29 NASDAQ 154 2.4 26 3. 33 7.7 NYSE 142 44.7 31 26.4 36 17.5 NASDAQ + NYSE total 296 65.1.22 57 29.4.52 69 25.2.37 USD billion 4, 3, 2, 1, 1,18 6,987 1,78 Value of equity trading (in USD billion) 28,116 23,845 13,68 29,21 27,651 Greater China NASDAQ NYSE 27 28 29 17,521 Note: For 27 and 28 figures of Nasdaq, the equity trading value include shares of NYSE, Arca and Alternext listed companies traded on Nasdaq Source: World Federation of Exchanges The amount of IPO funds raised in the US markets (NYSE and NASDAQ) decreased by 17% from USD29.4 billion in 28 to USD25.2 billion in 29, while it saw an increase of 15% in the Greater China capital markets. The average deal size in the US decreased from USD.52 billion in 28 to USD.37 billion in 29 as there was lack of sizable IPOs in 29. The average deal size in Greater China increased from USD.15 billion in 28 to USD.29 billion in 29, as a result of the better economical environment. The value of equity trading in Greater China increased by 54% to USD1,78 billion in 29. Although the value of equity trading in the US decreased from USD51,496 billion in 28 to USD31,129 billion in 29, the US still has the highest value of equity trading in the world. Greater China IPO Watch 29 12

Comparison with the European markets (Amounts in USD billion) 27 28 29 Stock exchange Number of IPOs Funds raised Average deal size Number of IPOs Funds raised Average deal size Number of IPOs Funds raised Average deal size Hong Kong 86 38. 49 8.5 73 32. Shanghai 25 6. 6 1.8 9 18.3 Shenzhen 11 5.4 71 4.4 9 9.2 Taiwan 3.6 31.2 36.2 Greater China total 242 14..43 157 23.9.15 28 59.7.29 London (Main Board) 99 4.3 38 1. 9.9 London (AIM) 22 13.9 58 2. 14 1. London (SFM + PSM) 5 2.8 3.4 2.5 London total 324 57..18 99 12.4.13 25 2.4.1 Europe total 819 117.4.14 295 19.5.7 126 1.2.8 USD billion 4, 3, 2, 1, 1,18 Source: World Federation of Exchanges 1,78 6,987 Greater China Value of equity trading (in USD billion) 32,278 27 28 29 21,449 Europe 12,535 The IPO markets in Europe (including exchanges in the EU member countries plus Switzerland and Norway) were still suffering from the global financial crisis. The number of IPOs decreased from 819 in 27 to 295 in 28 and further decreased to 126 in 29. The IPO funds raised in Europe dropped by 48% from USD19.5 billion in 28 to USD1.2 billion in 29. In 29, USD59.7 billion of IPO funds was raised in Greater China, which was higher than that in Europe. However, the value of equity trading in Europe still exceeded that of Greater China even though the value of equity trading in Europe decreased by 42% from USD21,449 billion in 28 to USD12,535 billion in 29 and the value of equity trading in Greater China capital markets increased by 54% from USD6,987 billion in 28 to USD1,78 billion in 29. 13 Greater China IPO Watch 29

Comparison with major Asian markets The number of IPOs in Japan decreased significantly from 49 in 28 to 19 in 29. The IPO funds raised in Japan decreased by 6% from USD1.5 billion in 28 to USD.6 billion in 29. The number of IPOs in Singapore (including Main Board, Catalist and SESDAQ) decreased from 3 in 28 to 23 in 29 while the funds raised increased by 77% from USD1.3 billion in 28 to USD2.3 billion in 29. The increase of IPO funds raised in Singapore is primarily due to the listing of a sizable company which raised USD2 billion. In 29, the average deal size in Japan and Singapore were USD.3 billion and USD.1 billion respectively, which were much less than the average deal size in the Greater China Capital markets of USD.29 billion. (Amounts in USD billion) 27 28 29 Stock exchange Number of IPOs Funds raised Average deal size Number of IPOs Funds raised Average deal size Number of IPOs Funds raised Average deal size Hong Kong 86 38. 49 8.5 73 32. Shanghai 25 6. 6 1.8 9 18.3 Shenzhen 11 5.4 71 4.4 9 9.2 Taiwan 3.6 31.2 36.2 Greater China total 242 14..43 157 23.9.15 28 59.7.29 Tokyo Stock Exchange (Main board) Osaka Stock Exchange (Main board) 13 2.9 7.5 6.2 - - - - - - JASDAQ 49.7 18.7 8.2 Mothers 23.5 12.2 4.2 Hercules 25.3 9.1 1. Others 11.1 3. - - Japan total 121 4.5.4 49 1.5.3 19.6.3 Main Board 53 5.7 23 1.2 9 2.2 Catalist & its predecessor - SESDAQ 8. 7.1 14.1 Singapore total 61 5.7.9 3 1.3.4 23 2.3.1 Source: PricewaterhouseCoopers Research Greater China IPO Watch 29 14

Comparison of market capitalisation with GDP The ratio of market capitalisation of companies listed in the United States to the Gross Domestic Product (GDP) was 142% in 27, 8% in 28 and 16% in 29. In the United Kingdom, the ratio of market capitalisation of listed companies to GDP was 14% in 27, 8% in 28 and 124% in 29. In 29, United States and United Kingdom had a negative 2.4% and negative 3.6% respectively on its GDP growth rate compared with 28. In Greater China, the ratio of market capitalisation of listed companies to GDP was 195% in 27, 69% in 28 and 118% in 29. The ratio increased significantly from 28 to 29 as there was a significant increase in share price of companies listed in Greater China. In 29, China GDP grew by 8.7% compared with 28; Hong Kong GDP and Taiwan GDP decreased by 2.5% and 1.4% respectively. (Amounts in USD billion) 27 28 29 Funds raised (USD billion) Country/Region Market Cap GDP Market Cap to GDP (%) Market Cap GDP Market Cap to GDP (%) Market Cap GDP Market Cap to GDP (%) Hong Kong Hong Kong 2,654 27 1282% 1,329 217 612% 2,35 211 192% Shanghai China 3,698 3,42 18% 1,425 4,45 32% 2,75 4,912 55% Shenzhen China 785 3,42 23% 353 4,45 8% 868 4,912 18% Taiwan Taiwan 664 383 173% 357 392 91% 641 379 169% Greater China total Greater China 7,81 4,1 195% 3,464 5,14 69% 6,519 5,52 118% NYSE United States 15,651 13,843 113% 9,29 14,265 65% 11,838 14,258 83% NASDAQ United States 4,14 13,843 29% 2,249 14,265 16% 3,239 14,258 23% NYSE + NASDAQ total United States 19,665 13,843 142% 11,458 14,265 8% 15,77 14,258 16% London United Kingdom 3,852 2,749 14% 1,868 2,34 8% 2,796 2,255 124% Source: National Bureau of Statistics of China, Census and Statistics Department of HKSAR, National Statistics Republic of China (Taiwan), US Department of Commerce Bureau of Economic Analysis, UK National Statistics Online, World Federation of Exchanges. 15 Greater China IPO Watch 29

Capital Market Services Group Capital Market Services Group is part of the Assurance practice of PricewaterhouseCoopers. It is comprised of a core team of specialists who provide a broad range of services to companies and/or investment banks in connection with all aspects of capital market transactions. These include preparation for becoming a public listed company, selecting the right market and advisory team, advising on group restructuring, accounting and regulatory issues and acting as reporting accountants. The China/Hong Kong Capital Market Services Group is part of the PricewaterhouseCoopers global network of capital markets specialists. China/Hong Kong Capital Market Services Group Partners and Directors: Kennedy Liu +852 2289 1881 kennedy.liu@hk.pwc.com Edmond Chan +852 2289 1128 edmond.chan@hk.pwc.com Rebecca Chan +852 2289 1287 rebecca.chan@hk.pwc.com Rayon Chu +852 2289 1531 rayon.wh.chu@hk.pwc.com Rita Chan +852 2289 2327 rita.chan@hk.pwc.com Charles Feng +86 (1) 6533 2399 c.feng@cn.pwc.com Pauline Leung +852 2289 189 pauline.pw.leung@hk.pwc.com Xuemei Li +86 (1) 6533 5179 xuemei.li@cn.pwc.com Thomas Lo +86 (1) 6533 2223 thomas.lo@cn.pwc.com About PricewaterhouseCoopers PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 163, people in 151 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice. PricewaterhouseCoopers China, Hong Kong and Singapore operate on a combined basis, subject to local applicable laws. Taken together, we have more than 47 partners and a strength of 13, people. The firm provides a wide range of services to help organisations solve business issues, identify and maximise opportunities. Our industry specialisation enables us to identify trends and customise solutions for your sector of interest. Each line of service is staffed with highly qualified, experienced professionals and leaders in our profession. These resources, combined with our global network, allow us to provide the support you need wherever you may be located. We are located in these cities: Beijing, Hong Kong, Shanghai, Singapore, Chongqing, Dalian, Guangzhou, Macau, Ningbo, Qingdao, Shenzhen, Suzhou, Tianjin, Xiamen and Xi an. PricewaterhouseCoopers refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity. For more information visit: www.pwchk.com For further copies of this publication please contact the PricewaterhouseCoopers Marketing and Communications Department in Hong Kong on +852 2289 875. Greater China IPO Watch 29 16

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