Morning Meeting Summary

29 Aug 2012,Wednesday 晨会报告 Research Highlights Nil Macro Monitor Nil Sector Updates Nil HK Indices Last price chg % chg HSI Finance Properties Utilities 19,811.80 13.13 0.00 26,428.78 29.13 0.00 26,701.85-102.45 0.00 47,917.76-8.11 0.00 Commerce&Industr 11,954.10 15.33 0.00 HSCEI 9,521.77-22.85 0.00 HSCCI 3,871.08-18.79 0.00 HKSPGEM 357.94 0.12 0.00 World Indices Last price chg % chg FTSE 100 DAX 30 CAC 40 DJIA S&P500 Nasdaq Composite Nikkei 225 5,775.71-0.89 0.00 7,002.68-44.77-1.00 3,431.55-31.28-1.00 13,102.99-21.68 0.00 1,409.30-1.14 0.00 3,077.14 3.95 0.00 9,041.01 7.72 0.00 Company Comments 1 China Life Insurance net profit down 26% YoY China Life Insurance announced 26% decline in net profit yoy to RMB9.64bn, due to drop in insurance premium. Total premium income and billing cost decreased 5% yoy to RMB184.74bn yuan. Investment yield declined to 2.83% from 4.5%. Provision charges was RMB15.12bn yuan, surged from last year due to continued downturn in domestic stock market. [Company announcement](elena Ye) 2 Samsonite H1 profit surges on lower finance costs U.S. luggage maker Samsonite International SA said Tuesday its first-half profit quintupled from a year earlier, boosted by strong global travel demand and the absence of finance costs and charges linked to the company's 2011 listing. The company, which makes suitcases, casual bags and other travel products, said net profit for the six months ended June 30 was US$82.3 million compared with US$16.4 million. Revenue rose 14% to US$846.7 million from US$743.8 million. It didn't recommend a first-half dividend. Samsonite, which sells products under its own name and that of American Tourister, recorded finance costs of just US$6.1 million in the first half, down substantially from US$59.9 million in the year-earlier period when the company settled listing-related finance charges and the repayment of a senior credit facility. The company also said its results were lifted by revenue growth in all its geographic markets. Samsonite's net sales in Asia grew 21.3% in the first half compared with the same period a year earlier, in spite of continued weakness in the global economy. It said that net sales in the U.S. were up 28%, while in Europe, in the midst of a huge debt crisis, the company's net sales fell 2%. Samsonite is Asia-Pacific Indices Last price chg % chg KOSPI 1,393.30-1.41 0.00 TWSE 7,361.94-106.28-1.00 STI 2,333.70-62.65-3.00 India BSE 30 14,665.92-437.63-3.00 S&P/ASX 200 3,971.20 36.60 1.00 HSI One Year 25000 20000 15000 10000 5000 Aug-11 Jan-12 May-12 Aug-12 HSCEI One Year 15000 12000 9000 6000 3000 Aug-11 Jan-12 May-12 Aug-12 Source:Bloomberg China Merchants Securities (HK) Research 852-3189-6888 1 1 of 14

in the process of expanding its product offerings. In July, the company disclosed plans to buy U.S. casual-bag company High Sierra for US$110 million in Samsonite's first major acquisition since it listed. Earlier this month, the company bought 135-year old U.S. luggage maker Hartmann for US$35 million.[wsj](ivy Zhao) Global Commodity Brent Oil Gold LME Aluminum LME Copper BDI API Coal Last price chg % chg 113.13-0.20 0.00 1,666.55-0.35 0.00 1,916.00-2.00 0.00 7,607.50-32.50 0.00 724.00 7.00 1.00 99.50-0.25 0.00 3 Sun art (6808.HK) announced interim results Total revenue increased by 14.4% to RMB39,416 million Net profit attributable to owners of the parent increased by 75.1% to RMB1373. million. Basic earnings per share for the period was RMB0.14. [HKEX](Tang Jingjing) 4 Yongda Auto (03669.HK) Announced Acquisition o f Yangzhou Yongda The Company announce that an indirect wholly-owned subsidiary of the Company, Shanghai Yongda Automobile Group Co., Ltd., has entered into the Equity Transfer Agreement on August 28 2012 with Yongda CLS, pursuant to which Shanghai Yongda Automobile Group Co., Ltd. agreed to acquire, and Yongda CLS agreed to sell, the entire equity interest in Yangzhou Yongda at a consideration of RMB10 million (equivalent to approximately HK$12,200,000). [Company Announcement] (Colleen Li) Exchange /Currency /Bond Market USD/RMB USD/HKD 1-YR RMB NDF EUR/USD 3-M Libor 3-M Shibor 10 YR US T-Note Yield Brent Oil One Year 140 120 100 80 60 40 20 Last price 0 Aug-11 Jan-12 May-12 Gold Comdty One Year chg % chg 6.34 0.00 0.00 7.76 0.00 0.00 6.45 0.00 0.00 125.59 0.03 0.00 0.69 0.00 0.00 3.64 0.01 0.00 1.64 0.00 0.00 2000 1500 1000 500 0 Aug-11 Dec-11 Apr-12 Aug-12 LME Alumnium Comdty One Year 3000 2500 2000 1500 1000 500 0 Aug-11 Jan-12 May -12 Aug-12 Source:Bloomberg 2 2 of 14

Economic Calendar LME Copper Comdty One Year 10000 Economic Data HK:Nil US:GDP - Second Estimate 8000 6000 4000 Date Ticker Stock Name Earnings Results 2012/08/29 00009 CHINA MANDARIN Interim 2012/08/29 00083 SINO LAND Final 2012/08/29 00115 GRAND FIELD GP Interim 2012/08/29 00128 ENM HOLDINGS Interim 2012/08/29 00133 CHINA MERCHANTS Interim 2012/08/29 00142 FIRST PACIFIC Interim 2012/08/29 00151 WANT WANT CHINA Interim 2012/08/29 00154 BEIJING DEV Interim 2012/08/29 00186 GRANDE HOLDINGS Interim 2012/08/29 00198 SMI CORP Interim 2012/08/29 00200 MELCO INT'L DEV Interim 2012/08/29 00228 CHINA ENERGY Interim 2012/08/29 00242 SHUN TAK HOLD Interim 2012/08/29 00245 CHINA SEVENSTAR Interim 2012/08/29 00247 TST PROPERTIES Final 2012/08/29 00263 CH YUNNAN TIN Interim 2012/08/29 00310 PROSP INV HOLD Interim 2012/08/29 00358 JIANGXI COPPER Interim 2012/08/29 00361 SINO GOLF HOLD Interim 2012/08/29 00366 LUKS GROUP Interim 2012/08/29 00379 PME Interim 2012/08/29 00433 NORTH MINING Interim 2012/08/29 00469 CAPXON INT'L Interim 2012/08/29 00487 SUCCESSUNIVERSE Interim 2012/08/29 00489 DONGFENG GROUP Interim 2012/08/29 00496 KASEN Interim 2012/08/29 00503 LANSEN PHARMA Interim 2012/08/29 00506 CHINA FOODS Interim 2012/08/29 00509 SUNSHINE Interim 2012/08/29 00524 E-KONG GROUP Interim 2012/08/29 00552 CHINACOMSERVICE Interim 2012/08/29 00585 IMAGI INT'L Interim 2012/08/29 00596 INSPUR INT'L Interim 2012/08/29 00606 CHINA AGRI Interim 2012/08/29 00651 CHI O SHIPBLDG Interim 2012/08/29 00656 FOSUN INTL Interim 3 2000 0 Aug-11 Jan-12 May-12 Aug-12 BDI One Year 2500 2000 1500 1000 500 0 Aug-11 Jan-12 May -12 API Coal One Year 140 120 100 80 60 40 20 0 Aug-11 J an-12 May-12 Source:Bloomberg 3 of 14

2012/08/29 00660 Wai Chun Mining Interim 2012/08/29 00685 MEDIA CHINESE 1st Quarter 2012/08/29 00695 DONGWU CEMENT Interim 2012/08/29 00696 TRAVELSKY TECH Interim 2012/08/29 00706 FINTRONICS Interim 2012/08/29 00750 SINGYES SOLAR Interim 2012/08/29 00757 SOLARGIGA Interim 2012/08/29 00764 ETERNITY INV Interim 2012/08/29 00767 PACIFIC PLYWOOD Interim 2012/08/29 00828 DYNASTY WINES Interim 2012/08/29 00842 LEOCH INT'L Interim 2012/08/29 00875 CYPRESS JADE Interim 2012/08/29 00889 DATRONIX HOLD Interim 2012/08/29 00905 MASTERMIND CAP Interim 2012/08/29 00998 CITIC BANK Interim 2012/08/29 01019 CONVOY Interim 2012/08/29 01039 CHANGFENG AXLE Interim 2012/08/29 01044 HENGANINTL Interim 2012/08/29 01057 ZHEJIANG SHIBAO Interim 2012/08/29 01071 HUADIAN POWER Interim 2012/08/29 01105 SING TAO Interim 2012/08/29 01110 KINGWORLD Interim 2012/08/29 01114 BRILLIANCE CHI Interim 2012/08/29 01143 TELEFIELD Interim 2012/08/29 01159 KARCE INTL HOLD Interim 2012/08/29 01208 MIN RESOURCES Interim 2012/08/29 01221 SINO HOTELS Final 2012/08/29 01228 SUPERB SUMMIT Interim 2012/08/29 01265 TIANJINTIANLIAN Interim 2012/08/29 01266 XIWANG STEEL Interim 2012/08/29 01288 ABC Interim 2012/08/29 01308 SITC Interim 2012/08/29 01336 NCI Interim 2012/08/29 01618 MCC Interim 2012/08/29 01699 PUTIAN FOOD Interim 2012/08/29 01798 DATANG RENEW Interim 2012/08/29 01823 HUAYUEXPRESSWAY Interim 2012/08/29 01863 SIJIA GROUP Interim 2012/08/29 01919 CHINA COSCO Interim 2012/08/29 02336 SUNLINK INT'L Interim 2012/08/29 02341 ECOGREEN Interim 2012/08/29 02866 CSCL Interim 4 4 of 14

2012/08/29 03330 LINGBAO GOLD Interim 2012/08/29 03331 VINDA INT'L Interim 2012/08/29 03382 TIANJINPORT DEV Interim 2012/08/29 03666 XIAO NAN GUO Interim 2012/08/29 03999 DACHAN FOOD Interim Date Ticker Stock Name Issue Price Nil 5 5 of 14

China Merchants Securities (Hong Kong) Stock Pool Update Weekly 2012-8-29 Stock Twelve Month EPS P/E Net Profits(Mn) Short Name Rating Currency Code Target Price(HK$) 2012E 2013E 2014E 2012E 2013E 2014E 2012E 2013E 2014E Analyst Commercial Banks 5 HSBC HLDGS PLC Neutral 74.00 USD 0.95 0.99 1.11 9.3 8.9 7.9 17,252 18,236 20,950 Ye Lian 1288 AGRICULTURAL BANK-H Buy 4.40 RMB 0.48 0.59 0.67 5.1 4.2 3.7 155,356 195,566 227,803 Ye Lian 939 CHINA CONST BA-H Buy 6.80 RMB 0.80 0.94 1.10 5.4 4.6 3.9 200,697 234,552 275,191 Ye Lian 998 CHINA CITIC BK-H Buy 5.10 RMB 0.69 0.77 0.84 4.6 4.2 3.8 35,871 39,324 42,749 Ye Lian 1398 IND & COMM BK -H Buy 6.20 RMB 0.70 0.81 0.92 5.1 4.4 3.9 243,686 282,147 322,702 Ye Lian 2888 STANDARD CHARTER Outperform 205.00 USD 2.27 2.51 2.61 9.9 8.9 8.6 5,376 6,050 6,285 Ye Lian 3328 BANK OF COMMUN-H Outperform 5.84 RMB 0.90 0.99 1.06 4.8 4.3 4.0 54,473 60,353 65,302 Ye Lian 3968 CHINA MERCH BK-H Buy 18.80 RMB 1.88 2.06 2.20 6.0 5.5 5.1 42,665 49,130 52,422 Ye Lian 3988 BANK OF CHINA-H Outperform 3.40 RMB 0.48 0.55 0.62 5.0 4.3 3.9 132,850 153,294 171,861 Ye Lian 3618 CHONGQING RURA-H Buy 4.80 RMB 0.57 0.69 0.86 4.6 3.8 3.0 5,253 6,650 8,297 Ye Lian Textiles, Apparel & Luxury Goods 589 PORTS DESIGN LTD Neutral 8.30 RMB 0.71 0.80 0.93 9.3 8.3 7.1 468 532 618 Ivy Zhao 1880 BELLE INTERNATIO Outperform 16.43 RMB 0.60 0.68 0.80 20.2 17.7 15.1 5,023 5,737 6,730 Ivy Zhao 1368 XTEP INTERNATION Neutral 2.74 RMB 0.43 0.44 0.48 5.5 5.3 4.9 957 1,003 1,102 Ivy Zhao 2020 ANTA SPORTS PROD Neutral 4.80 RMB 0.55 0.39 0.41 7.0 9.9 9.3 1,374 973 1,046 Ivy Zhao 1361 361 DEGREE Outperform 2.38 RMB 0.59 0.60 0.66 2.9 2.8 2.6 1,003 1,015 1,115 Ivy Zhao 1968 PEAK Buy 1.83 RMB 0.30 0.32 0.36 3.4 3.2 2.8 624 662 757 Ivy Zhao 2331 LI NING CO LTD Buy 5.31 RMB 0.24 0.45 0.63 13.4 7.2 5.1 250 466 657 Ivy Zhao 3818 CHINA DONGXIANG Neutral 0.72 RMB 0.03 0.03 0.04 18.8 18.3 15.1 183 190 230 Ivy Zhao 953 MEIKE INTERNATIONAL Buy 0.35 RMB 0.04 0.04 0.03 5.5 5.5 7.4 145 168 203 Ivy Zhao 1234 CHINA LILANZ LTD Outperform 6.75 RMB 0.55 0.67 0.87 8.6 7.0 5.4 660 814 1,058 Ivy Zhao 6 of 14 6

Stock Twelve Month EPS P/E Net Profits(Mn) Short Name Rating Currency Code Target Price(HK$) 2012E 2013E 2014E 2012E 2013E 2014E 2012E 2013E 2014E Analyst 891 TRINITY Buy 7.44 RMB 0.34 0.41 0.50 12.4 10.2 8.4 585 713 868 Ivy Zhao 873 INT L TAIFENG Buy 2.86 RMB 0.52 0.65 0.80 3.0 2.4 2.0 523 646 803 Ivy Zhao Materials 1863 SIJIA GROUP CO LTD Buy 4.59 RMB 0.46 0.59 0.77 3.3 2.6 2.0 382 497 643 Ivy Zhao Metals & Mining 1818 ZHAOJIN MINING-H Buy 15.50 RMB 0.78 0.82 0.76 11.1 10.6 11.5 2,273 2,389 2,204 Li Xiang 2899 ZIJIN MINING GRP Buy 3.90 RMB 0.29 0.32 0.33 7.1 6.5 6.3 6,219 6,999 7,100 Li Xiang 358 JIANGXI COPPER-H Neutral 19.30 RMB 1.96 1.94 1.63 7.5 7.6 9.0 6,775 6,720 5,629 Li Xiang 3993 CHINA MOLYBDENUM Outperform 3.50 RMB 0.24 0.27 0.28 10.2 9.1 8.6 1,144 1,291 1,370 Li Xiang 2600 ALUMINUM CORP-H Outperform 3.60 RMB 0.01 0.05 0.07 255.7 53.3 36.5 134 645 940 Li Xiang CHINA HONGQIAO 1378 GROUP LTD Buy 7.70 RMB 1.10 1.24 1.07 2.7 2.4 2.7 6,475 7,291 6,296 Li Xiang 486 UNITED CO RUSAL PLC Buy 7.10 USD 0.10 0.14 0.17 5.5 4.0 3.3 1,571 2,152 2,518 Li Xiang Auto & Others 1211 BYD CO. LTD Neutral 13.00 RMB 0.70 1.00 1.23 15.6 11.0 8.9 1,673 2,502 2,817 Colleen Li 489 Dongfeng Motor-H Buy 13.40 RMB 1.26 1.30 1.40 6.7 6.5 6.1 10,854 12,113 12,101 Colleen Li 175 Geely Auto Buy 3.45 RMB 0.22 0.24 0.25 9.7 8.9 8.5 1,777 1,954 2,159 Colleen Li 2333 Great Wall Mot-H Buy 21.01 RMB 1.54 1.75 1.92 9.2 8.1 7.4 4,347 4,917 5,406 Colleen Li 1114 Brilliance Auto Outperform 8.10 RMB 0.42 0.55 0.70 13.9 10.6 8.3 2,107 2,760 3,512 Colleen Li 425 Minth Group Ltd Buy 12.00 RMB 0.82 0.86 0.92 8.6 8.2 7.7 882 928 995 Colleen Li 1728 China Zhengtong Buy 7.28 RMB 0.42 0.75 1.08 8.3 4.7 3.2 877 1,561 2,255 Colleen Li 881 Zhongsheng Group Buy 13.80 RMB 0.58 1.04 1.54 13.4 7.5 5.1 1,110 1,980 2,937 Colleen Li Oil & Gas 857 PetroChina - H Outperform 10.77 RMB 0.73 0.79 0.83 10.6 9.8 9.3 146,832 159,374 166,778 Michael Yuk 7 of 14 7

Stock Twelve Month EPS P/E Net Profits(Mn) Short Name Rating Currency Code Target Price(HK$) 2012E 2013E 2014E 2012E 2013E 2014E 2012E 2013E 2014E Analyst 386 Sinopec - H Buy 10.10 RMB 0.99 1.01 1.05 6.1 6.0 5.8 92,140 94,822 98,764 Michael Yuk 883 CNOOC Outperform 17.34 RMB 1.52 1.55 1.58 8.0 7.8 7.7 67,717 69,381 70,703 Michael Yuk 603 China Oil & Gas Outperform 0.85 HKD 0.06 0.07 0.08 12.3 10.6 9.3 553 712 808 Michael Yuk 342 NewOcean Energy Buy 2.20 HKD 0.28 0.34 0.40 6.2 5.1 4.4 361 457 537 Michael Yuk Oil & Gas Services/Equipment 3899 CIMC Enric Outperform 5.30 RMB 0.29 0.36 0.44 12.7 10.2 8.4 556 693 830 Michael Yuk 569 China Automation Buy 2.50 RMB 0.26 0.29 0.33 4.6 4.1 3.6 240 292 332 Michael Yuk 3337 Anton Oilfield Neutral 1.50 RMB 0.07 0.11 0.16 18.2 11.6 8.2 148 240 331 Michael Yuk 1938 Chu Kong Petroleum and Natural Gas Steel Pipe Underperform 3.50 RMB 0.30 0.35 0.43 11.0 9.5 7.7 295 351 430 Michael Yuk 2883 COSL - H Neutral 14.00 RMB 1.03 1.16 1.25 10.1 9.0 8.3 4,685 5,200 5,675 Michael Yuk Property 16 SHK PPT Buy 137.00 HKD 6.85 7.23 7.63 14.8 14.1 13.3 17,661 18,588 19,617 101 HANG LUNG PPT Buy 38.00 HKD 0.95 1.41 1.62 28.2 19.0 16.5 4,097 6,081 6,987 1 CHEUNG KONG Buy 139.75 HKD 10.75 10.94 11.07 10.0 9.8 9.7 24,897 25,337 25,638 688 CHINA OVERSEAS Buy 22.56 HKD 1.53 1.80 1.91 11.7 9.9 9.4 11,527 12,508 14,552 410 SOHO CHINA Buy 7.58 HKD 0.59 1.07 1.52 8.5 4.7 3.3 3,080 5,555 7,903 813 SHIMAO PROPERTY Buy 17.75 HKD 1.42 1.63 1.79 7.8 6.8 6.2 4,205 3,981 5,570 8 of 14 8

Stock Twelve Month EPS P/E Net Profits(Mn) Short Name Rating Currency Code Target Price(HK$) 2012E 2013E 2014E 2012E 2013E 2014E 2012E 2013E 2014E Analyst 1109 CHINA RES LAND Buy 18.20 HKD 1.65 1.97 2.32 9.2 7.7 6.5 9,024 10,811 12,680 2777 R&F PROPERTIES Buy 14.90 HKD 2.27 2.63 2.89 3.9 3.4 3.1 4,801 5,671 6,347 2007 COUNTRY GARDEN Buy 4.20 HKD 0.35 0.35 0.37 7.8 7.8 7.4 5,813 5,670 6,236 2868 BJ CAPITAL LAND Buy 4.16 HKD 0.52 0.64 0.71 4.1 3.3 3.0 1,055 1,298 1,440 3383 AGILE PROPERTY Buy 15.20 HKD 1.52 1.76 2.02 6.1 5.3 4.6 5,322 6,162 7,072 3333 EVERGRANDE REAL Buy 7.92 HKD 0.88 1.27 1.43 3.6 2.5 2.2 13,288 19,177 21,593 0960 LONGFOR Outperform 13.13 HKD 1.01 1.28 1.67 11.3 8.9 6.8 5,226 6,623 8,641 1813 KWG PROPERTY Buy 7.56 HKD 0.63 0.77 0.92 6.5 5.3 4.5 1,823 2,228 2,662 3366 OCT (ASIA) Buy 4.00 HKD 0.31 0.60 0.84 9.3 4.8 3.4 159 305 431 3900 Greentown China Underperform 6.84 HKD 3.17 3.90 4.13 2.6 2.1 2.0 5,274 6,495 6,890 1918 SUNAC China Neutral 3.52 HKD 1.27 1.46 1.65 2.7 2.4 2.1 3,296 3,798 4,291 Consumer Discretionary 3308 Golden Eagle Buy 21.50 RMB 0.73 0.90 1.21 16.6 13.5 10.0 1,441 1,764 2,373 Tang JingJing 9 of 14 9

Stock Twelve Month EPS P/E Net Profits(Mn) Short Name Rating Currency Code Target Price(HK$) 2012E 2013E 2014E 2012E 2013E 2014E 2012E 2013E 2014E Analyst 1212 LIFESTYLE INTL Neutral 18.40 HKD 1.15 1.18 1.30 14.7 14.3 13.0 1,918 1,962 2,162 Tang JingJing INTIME DEPARTMENT 1833 STORE Buy 14.50 RMB 0.51 0.65 0.78 13.2 10.3 8.6 892 1,142 1,374 Tang JingJing Telecommunication 941 CHINA MOBILE Neutral 82.00 RMB 6.44 6.66 6.97 10.7 10.3 9.9 129,452 133,779 140,009 Jeff Hao 762 CHINA UNICOM Neutral 14.00 RMB 0.22 0.27 0.32 48.4 39.4 33.2 5,143 6,375 7,537 Jeff Hao 728 CHINA TELECOM Buy 5.62 RMB 0.22 0.26 0.31 16.3 13.8 11.6 17,789 20,737 24,811 Jeff Hao Information Technology 700 TENCENT Neutral 220.00 RMB 7.17 9.67 12.52 27.6 20.5 15.8 13,452 18,160 23,500 Jeff Hao 354 CHINASOFT INTERNATIONAL Buy 3.50 RMB 0.14 0.17 0.21 10.2 8.4 6.8 230 327 443 Jeff Hao 268 KINGDEE Buy 2.20 RMB 0.09 0.11 0.14 10.4 8.5 6.7 239 301 401 Jeff Hao Port China Merchants Holdings 144 Internatinal Outperform 26.37 HKD 1.79 2.03 2.19 13.1 11.6 10.7 4,436 5,012 5,430 Kate Li 1199 COSCO Pacific Buy 13.92 USD 0.14 0.16 0.17 9.6 8.4 7.9 388 439 460 Kate Li Alternative Energy GCL-Poly Energy Holding 3800 Ltd Buy 1.54 HKD 0.06 0.13 0.19 19.8 9.2 6.3 905 1,974 2,915 Lei Yin 819 Tianneng Power Buy 6.05 RMB 0.74 0.82 0.91 5.4 4.9 4.4 817 905 1,003 Lei Yin Healthcare 1099 Sinopharm Neutral 25.00 RMB 0.85 1.05 1.25 23.6 19.1 16.1 1,915 2,365 2,816 Alex Ng 2607 Shanghai Pharm Underperform 12.00 RMB 0.69 0.85 0.98 16.0 13.0 11.2 1,835 2,270 2,650 Alex Ng 3933 United Lab Intl Underperform 3.20 HKD 0.08 0.25 0.36 47.5 15.2 10.6 258 350 458 Alex Ng 10 of 14 10

Stock Twelve Month EPS P/E Net Profits(Mn) Short Name Rating Currency Code Target Price(HK$) 2012E 2013E 2014E 2012E 2013E 2014E 2012E 2013E 2014E Analyst 460 Sihuan Pharm Buy 3.90 RMB 0.20 0.25 0.29 13.0 10.4 9.0 1,100 1,403 1,694 Alex Ng 867 China Medical Systems Neutral 4.50 USD 0.05 0.07 1.00 10.6 7.6 0.5 899 1,165 1,610 Alex Ng Food Products 322 TINGYI HLDG CO Sell 17.50 USD 0.10 0.12 0.14 29.3 24.6 20.3 557 662 803 Ling Hua 2319 CHINA MENGNIU DA Neutral 21.02 HKD 1.06 1.37 1.61 21.8 16.9 14.4 1,882 2,419 2,860 Ling Hua 506 CHINA FOODS LTD Outperform 8.17 HKD 0.31 0.41 0.50 22.3 17.2 13.9 878 1,127 1,404 Ling Hua 168 TSINGTAO BREW-H Neutral 40.19 HKD 1.61 1.93 1.51 26.6 22.2 28.3 2,171 2,602 2,040 Ling Hua 151 WANT WANT CHINA Neutral 9.65 HKD 0.32 0.40 0.48 31.5 25.5 21.1 4,280 5,227 6,399 Ling Hua 606 CHINA AGRI-INDUS Buy 6.16 HKD 0.76 0.84 1.07 4.9 4.4 3.5 3,319 3,697 4,688 Ling Hua US Stock BIDU BAIDU INC Buy 149.29 USD 4.62 7.76 8.92 3.2 1.9 1.7 1,619 2,720 3,126 Mike Chen SINA SINA CORP Neutral 58.80 USD 0.18 1.08 1.73 40.3 6.7 4.2 11,647 70,199 112,439 Mike Chen SOHU SOHU.COM Buy 69.20 USD 5.41 7.14 8.46 1.0 0.8 0.7 280 369 437 Mike Chen NTES NETEASE INC Buy 68.20 USD 4.52 4.93 5.31 1.5 1.4 1.3 595 663 700 Mike Chen QIHU QIHOO 360 TECHNOLOGY Outperform 25.40 USD 0.69 1.01 1.72 4.3 3.0 1.7 50 72 123 Mike Chen YOKU YOUKU.COM Buy 244.83 USD -2.05-0.66 1.30-1.2-3.6 1.8-331 -106 210 Mike Chen FMCN FOCUS MEDIA HOLDINGS Buy 33.75 USD 1.92 2.30 2.65 1.7 1.4 1.2 260 318 382 Mike Chen NEW ORIENTAL EDUCATION & EDU TECHNOLOGY Buy 35.23 USD 0.93 1.23 1.48 2.0 1.5 1.2 144 190 229 Mike Chen CTRP CTRIP.COM Buy 25.70 USD 1.42 1.49 1.62 1.6 1.5 1.4 181 186 204 Mike Chen HMIN HOME INNS & HOTELS MANAGEMENT Outperform 25.40 USD 0.47 0.53 0.64 6.3 5.6 4.6 134 152 182 Mike Chen 11 of 14 11

HSI Index Components Performance HSCEI Index Components Performance Last price Code Name Price Chg 1D Chg 1D Code Name Price (%) (%) 1 CHEUNG KONG 107.40 0.3 168 TSINGTAO BREW-H 42.80 0.4 2 CLP HLDGS LTD 65.00-0.2 177 JIANGSU EXPRES-H 6.42-2.4 3 HONG KG CHINA GS 18.44 0.3 323 MAANSHAN IRON-H 1.59-3.1 4 WHARF HLDG 48.95-1.4 338 SINOPEC SHANG-H 2.06-0.5 5 HSBC HLDGS PLC 68.40 0.5 347 ANGANG STEEL-H 3.85-2.0 6 POWER ASSETS HOL 61.15-0.5 358 JIANGXI COPPER-H 18.02-0.9 11 HANG SENG BK 110.50-0.5 386 CHINA PETROLEU-H 7.40-0.1 12 HENDERSON LAND D 48.30-1.3 390 CHINA RAIL GR-H 3.06 0.7 13 HUTCHISON WHAMPO 68.20-0.6 489 DONGFENG MOTOR-H 10.40 1.8 16 SUN HUNG KAI PRO 101.60-0.3 552 CHINA COMM SER-H 4.09-1.5 17 NEW WORLD DEV 9.95-0.1 576 ZHEJIANG EXPRESS 5.10 0.0 19 SWIRE PACIFIC-A 92.45 0.1 694 BEIJING CAP AI-H 5.49 0.7 23 BANK EAST ASIA 28.45-0.4 728 CHINA TELECOM-H 4.39-0.5 66 MTR CORP 27.95 0.5 753 AIR CHINA LTD-H 4.84-3.6 83 SINO LAND CO 13.36-0.2 857 PETROCHINA CO-H 9.44-0.6 101 HANG LUNG PROPER 26.80 0.2 902 HUANENG POWER-H 5.39-0.4 144 CHINA MERCHANT 23.45-2.3 914 ANHUI CONCH-H 20.05-1.0 267 CITIC PACIFIC 10.74-2.2 939 CHINA CONST BA-H 5.24 0.4 291 CHINA RES ENTERP 22.70-1.3 991 DATANG INTL PO-H 2.65 0.8 293 CATHAY PAC AIR 12.80-1.1 998 CHINA CITIC BK-H 3.91 0.0 330 ESPRIT HLDGS 12.40 1.8 1088 CHINA SHENHUA-H 29.10 0.5 386 CHINA PETROLEU-H 7.40-0.1 1133 HARBIN ELECTRIC 6.23-0.6 388 HONG KONG EXCHNG 104.80-1.2 1138 CHINA SHIPPING-H 3.16-0.6 494 LI & FUNG LTD 12.82 0.0 1171 YANZHOU COAL-H 11.32-0.7 551 YUE YUEN INDUS 22.50-0.2 1186 CHINA RAIL CN-H 6.27 2.5 688 CHINA OVERSEAS 17.90-1.7 1398 IND & COMM BK-H 4.33 0.5 700 TENCENT HOLDINGS 242.60-1.0 1800 CHINA COM CONS-H 6.67-1.0 762 CHINA UNICOM HON 13.02 0.2 1898 CHINA COAL ENE-H 6.67-1.0 857 PETROCHINA CO-H 9.44-0.6 1919 CHINA COSCO HO-H 3.20-0.9 883 CNOOC LTD 14.84 0.7 2318 PING AN INSURA-H 57.20-0.6 939 CHINA CONST BA-H 5.24 0.4 2328 PICC PROPERTY & 9.35 1.9 941 CHINA MOBILE 84.05 0.6 2600 ALUMINUM CORP-H 3.13-0.3 1088 CHINA SHENHUA-H 29.10 0.5 2628 CHINA LIFE INS-H 20.30-1.2 1199 COSCO PAC LTD 10.40-0.4 2727 SHANGHAI ELECT-H 3.21 0.0 1398 IND & COMM BK-H 4.33 0.5 2777 GUANGZHOU R&F -H 8.95 1.0 2038 FOXCONN INTL HLD 2.65-8.0 2866 CHINA SHIPPING-H 1.77-1.1 2318 PING AN INSURA-H 57.20-0.6 2883 CHINA OILFIELD-H 12.74-2.0 2388 BOC HONG KONG HO 24.65 1.0 2899 ZIJIN MINING-H 2.53-2.3 2600 ALUMINUM CORP-H 3.13-0.3 3323 CHINA NATL BDG-H 7.59 0.8 2628 CHINA LIFE INS-H 20.30-1.2 3328 BANK OF COMMUN-H 5.24 1.8 3328 BANK OF COMMUN-H 5.24 1.8 3968 CHINA MERCH BK-H 13.82 0.0 3988 BANK OF CHINA-H 2.91-0.7 3988 BANK OF CHINA-H 2.91-0.7 3993 CHINA MOLYBDENUM 2.94 0.7 12 12 of 14

A+H Company Performance Last price Name(H) Code (H) Price (H) Code (A) Price (A) Spread (%) SINOPEC YIZHEN-H 1033 1.55 600871 6.22 389.9 NANJING PANDA-H 553 1.58 600775 5.25 305.7 NORTHEAST ELEC-H 42 0.63 000585 1.86 260.4 SHENJI GROUP-H 300 1.65 600806 4.79 254.4 TIANJIN CAP-H 1065 1.78 600874 4.90 236.1 GUANGZHOU SHIP-H 317 4.91 600685 13.45 234.4 HISENSE KELON -H 921 1.49 000921 3.98 226.1 SHANDONG XINHU-H 719 1.80 000756 4.77 223.5 CHONGQING IRON-H 1053 0.95 601005 2.48 218.7 BEIREN PRINT-H 187 1.98 600860 5.13 216.3 SINOPEC SHANG-H 338 2.06 600688 5.29 213.5 JINGWEI TEXTIL-H 350 3.93 000666 9.96 209.4 BEIJING NORTH-H 588 1.28 601588 2.61 148.9 ALUMINUM CORP-H 2600 3.13 601600 5.56 116.9 DATANG INTL PO-H 991 2.65 601991 4.47 105.9 GUANGZHOU PHAR-H 874 14.80 600332 24.79 104.5 YANZHOU COAL-H 1171 11.32 600188 18.03 94.4 HUADIAN POWER-H 1071 2.42 600027 3.67 85.1 CHINA SHIPPING-H 1138 3.16 600026 4.35 68.1 DONGFANG ELECT-H 1072 11.40 600875 14.59 56.2 SHENZHEN EXPRE-H 548 2.83 600548 3.43 48.0 MAANSHAN IRON-H 323 1.59 600808 1.92 47.4 HUANENG POWER-H 902 5.39 600011 6.36 44.1 GUANGSHEN RAIL-H 525 2.24 601333 2.63 43.3 JIANGXI COPPER-H 358 18.02 600362 20.45 38.5 ANHUI EXPRESS-H 995 3.35 600012 3.80 38.5 CHINA SOUTHERN-H 1055 3.50 600029 3.69 28.7 AIR CHINA LTD-H 753 4.84 601111 4.89 23.3 CHINA CITIC BK-H 998 3.91 601998 3.86 20.5 BANK OF CHINA-H 3988 2.91 601988 2.77 16.2 ANGANG STEEL-H 347 3.85 000898 3.62 14.8 ZTE CORP-H 763 10.98 000063 9.78 8.7 IND & COMM BK-H 1398 4.33 601398 3.85 8.6 CHINA PETROLEU-H 386 7.40 600028 6.23 2.8 BANK OF COMMUN-H 3328 5.24 601328 4.40 2.5 CHINA LIFE INS-H 2628 20.30 601628 16.72 0.6 LUOYANG GLASS-H 1108 1.38 600876 4.98 0.0 WEICHAI POWER-H 2338 21.15 000338 17.25-0.4 TSINGTAO BREW-H 168 42.80 600600 32.64-6.9 JIANGSU EXPRES-H 177 6.42 600377 4.81-8.5 CHINA MERCH BK-H 3968 13.82 600036 10.01-11.6 PING AN INSURA-H 2318 57.20 601318 38.88-17.0 ANHUI CONCH-H 914 20.05 600585 13.50-17.8 13 13 of 14

RATING DEFINITION & DISCLAIMER RATING OVERWEIGHT NEUTRAL UNDERWEIGHT DEFINITION Expected to outperform the market index over the next twelve months Expected to outperform or underperform the market index over the next twelve month Expected to underperform the market index over the next twelve months RATING BUY OUTPERFORM NEUTRAL UNDERPERFORM SELL DEFINITION Expected to outperform the market index by >20% over the next twelve months Expected to outperform the market index by 10-20% over the next twelve months Expected to outperform or underperform the market index by <10% over the next twelve month Expected to underperform the market index by 10-20% over the next twelve months Expected to underperform the market index by >20% over the next twelve months DISCLAIMER This document is prepared by China Merchant Securities (HK) Co., Limited ( CMS ). CMS is a licensed corporation to carry on Type 1 (dealing in securities), Type 2 (dealing in futures), Type 4 (advising on securities), Type 6 (advising on corporate finance) and Type 9 (asset management) regulated activities under Securities and Futures Ordinance (Chapter 571). This document is for information purpose only. Neither the information nor opinion expressed shall be construed, expressly or impliedly, as an advice, offer, invitation, advertisement, inducement, recommendation or representation of any kind or form whatsoever or any financial instrument in any jurisdiction where such advice, offer, invitation, advertisement or solicitation would be illegal. The information and opinions, and associated estimates and forecasts, contained herein have been obtained from or are based on sources believed to be reliable. CMS, its holding or affiliated companies, or any of its or their directors, officers or employees ( CMS Group ) do not represent and warrant that it is accurate, correct or complete and it should be relied upon. CMS Group will not accept any responsibility or liability whatsoever for any use of or reliance upon this document or any of the content thereof. The contents and information in this document will be subject to change without prior notice. Use of any information herein shall be at the sole discretion and risk of the user. Investors are advised to make their own investment decisions without relying on this publication. CMS Group may have a position, make markets or act as principal or engage in transactions in securities of companies referred to in this document and may also perform or seek to perform investment banking services for those companies. This document is for the use of intended recipients only and this document may not be reproduced, distributed or published in whole or in part for any purpose without prior consent of CMS. China Merchants Securities (HK) Co., Ltd 48/F, One Exchange Square, Central, Hong Kong Website:http://www.newone.com.hk Tel: (852) 3189-6888 Fax: (852) 3101-0828 14 14 of 14