China property weekly trend: Vol rose and inventory declined; land sales contracted

February 27, 217 China: Real Estate Developers China property weekly trend: Vol rose and inventory declined; land sales contracted Equity Research Highlights for the week Vol followed the recovery in the past two weeks, +8% wow/+16% yoy, and 15% higher than the Jan weekly average. Kunming topped the performance with +132% wow/+271% yoy. YRD cities without tightening outperformed, e.g., Ningbo (+65% wow) and Xuzhou (+41% wow). Inventory declined.5% wow and 12m moving average inventory months stood at 8.6 months. Inventory in Ningbo (-4%) and Nanjing (-2%) decreased the most due to strong transaction volume. Land transactions rewound from the rebound in the previous week, with vol/value -35%/-86% wow. Top 1 cities average land sales was Rmb1.9bn (vs Rmb7.5bn last week), led by Zhongshan (Rmb3.5bn), Shanghai (Rmb3.5bn) and Shenyang (Rmb2.9bn). Key news/events 1) MOHURD signaled that it would accelerate legislation for the property tax and rental market. 2) Nanjing announced plans to curb the overheating property market with enhanced ASP guidance for developers. Performance & Valuation Sunac and CMSK were the strongest share price performers in the past week among our offshore and onshore coverage. Our offshore coverage is now trading at an average 46% discount to end- 217E NAV and 1.X 217E P/B, vs. 2H213-214 down-cycle averages of 43% and 1.1X. Our onshore coverage is trading at an average 3% discount and 1.6X 217E P/B, vs. 2H213-214 downcycle averages of 52% and 1.6X. Top picks (CL-Buy): COLI, COGO and Poly (A) with 12m end-17e NAVbased TPs of HK$31., HK$3.7, and Rmb11.6. Vol in the 4th week of Feb increased Avg weekly vol for past 6 months from 215 to-date. 35 3 25 2 15 1 5 (k sqm) 2 years ago 1 year ago Current year -25-24 -23-22 -21-2 -19-18 -17-16 -15-14 -13-12 -11-1 (week) +1 +2 +3 +4-9 -8-7 -6-5 -4-3 -2-1 SUMMARY OF OUR ACTIONABLE STOCK IDEAS Rating LCY End-17E NAV 12-m TP Offshore listed COGO Buy* (HK$) 7.36 3.7 31% COLI Buy* (HK$) 34.44 31. 29% Poly Property (H) Buy (HK$) 9.13 4.2 27% Sino Ocean Buy (HK$) 1.52 4.7 26% Yanlord Buy (S$) 3.46 1.9 25% R&F Buy (HK$) 18.17 12.7 19% CRL Buy (HK$) 33.51 25.1 18% Agile Buy (HK$) 12.51 5.6 14% Longfor Buy (HK$) 27.95 14. 13% Evergrande Sell (HK$) 8.28 3.3-43% Offshore average 25% Onshore listed Poly (A) Buy* (Rmb) 12.94 11.6 23% CFLD Buy (Rmb) n.m. 3.1 17% CMSK Buy (Rmb) 28.9 2. 17% OCT Buy (Rmb) 16. 8.3 13% Gemdale Sell (Rmb) 14.98 11.2-7% Vanke (A) Sell (Rmb) 25.17 17.6-14% * denotes the stock is on our regional Conviction List. Priced as of 27 Feb, 217 market close. Source: Datastream, Gao Hua Securities Research. Potential upside/ downside Risks for top picks: Weaker-than-expected sales, deteriorating balance sheets on aggressive land acquisitions and/or macro hard landing. Source: China Real Estate Index System (CREIS), Gao Hua Securities Research. Yi Wang, CFA Goldman Sachs does and seeks to do business with companies +86(21)241-893 yi.wang@ghsl.cn Beijing Gao Hua Securities Company Limited Vicky Li +86(21)241-8926 vicky.li@ghsl.cn Beijing Gao Hua Securities Company Limited Scofield Chi +65-6654-5188 scofield.chi@gs.com Goldman Sachs (Singapore) Pte Doris Chen +65-6654-5182 doris.chen@gs.com Goldman Sachs (Singapore) Pte covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to www.gs.com/research/hedge.html. Analysts employed by non-us affiliates are not registered/qualified as research analysts with FINRA in the U.S. The Goldman Sachs Group, Inc. Global Investment Research

Primary market: Volume continued to recover while inventory declined Exhibit 1: Weekly average transaction volume (the horizontal dark blue line represents the weekly avg. transaction volume level in the prior week) (k sqm) 9, 36 cities weekly transaction volume 214 215 216 217 (k sqm) 1,4 Tier 1 cities weekly transaction volume 214 215 216 217 8, 7, 6, 1,2 1, 5, 8 4, 3, 2, 1, (months) 1 2 3 4 5 6 7 8 9 1 11 12 6 4 2 (months) 1 2 3 4 5 6 7 8 9 1 11 12 (k sqm) 5, Tier 2 cities weekly transaction volume 214 215 216 217 (k sqm) 3,5 Tier 3 cities weekly transaction volume 214 215 216 217 4,5 4, 3,5 3, 2,5 3, 2,5 2, 2, 1,5 1,5 1, 1, 5 (months) 1 2 3 4 5 6 7 8 9 1 11 12 5 (months) 1 2 3 4 5 6 7 8 9 1 11 12 Source: CREIS. Goldman Sachs Global Investment Research 2

Exhibit 2: Ytd transaction volume on median level was -8% yoy among the 24 cities with data available Weekly and ytd transaction volume comparison Cumulative weekly avg vol of Weekly Comparison current month YTD (Jan 2, 217-Feb 26, 217) comparison 22-226 wow yoy vs. 217 Jan 13-226 mom yoy 217 YTD vs 216 vs 215 vs 214 vs 213 vs 212 vs 211 vs 21 (k sqm) (%) (%) (%) (k sqm) (%) (%) (k sqm) (%) (%) (%) (%) (%) (%) (%) Pan-Bohai Rim & North China Beijing 122 94% 6% 21% 68-33% 3% 675-16% -49% -12% -61% 116% -33% -39% Tianjin n.a. n.a. n.a. n.a. 117-22% -27% 1,22-27% 9% -5% 3% 169% -32% 2% Qingdao 46 11% 48% 11% 279-24% 116% 2,585 82% 76% 99% 1% 361% 11% 184% Dalian 55 48% 64% 56% 32-8% 72% 268 16% -6% -3% -28% 219% -5% -42% Changchun n.a. n.a. n.a. n.a. 68-19% 41% 616-17% n.a. n.a. n.a. n.a. n.a. -1% Jinan 25-15% n.a. 23% 217 7% 314% 1,618 21% 25% n.a. n.a. n.a. -17% n.a. Harbin n.a. n.a. n.a. n.a. 94-22% -1% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Lianyungang 29 8% 4% 51% 197 42% 74% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Yangtze River Delta Region Shanghai 338 24% -34% 54% 21-4% -22% 1,72-47% -38% -4% -2% 26% -18% -3% Nanjing 12 7% -71% -33% 68-56% -65% 878-57% -21% -21% -22% 71% -11% 46% Suzhou 94 3% -68% 8% 5-43% -64% 547-68% -48% -35% -37% -41% -37% 53% Wenzhou 134 13% 68% 42% 112 19% 47% 824 45% 47% 48% 6% 839% 25% 87% Hangzhou 254 35% -1% 49% 149-13% 7% 1,28-16% -1% 31% 15% n.a. 27% n.a. Ningbo 142 65% 51% 168% 72 37% 61% 5-1% 3% -8% -25% 53% -33% 3% Xuzhou 299 41% 24% 9% 282 3% 54% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Yangzhou 1-5% 59% 9% 82-11% 46% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Southern China Shenzhen 2-4% -94% -56% 17-61% -86% 249-76% -75% -26% -62% -2% -48% -41% Guangzhou 263 6% 37% 45% 175-4% 72% 1,426 17% 11% 42% -18% 13% -1% 26% Fuzhou 32-11% -44% 62% 27 35% -21% 186-34% -48% -36% -51% 39% -37% -51% Sanya 149-1% 125% 76% 13 54% 162% 858 86% 161% 189% 96% 256% 113% 36% Xiamen n.a. n.a. n.a. n.a. 12-22% -37% 119-34% -54% -83% -84% -49% -71% -54% Dongguan 52-6% -76% -28% 38-48% -58% 441-73% -49% -3% -44% 37% -46% -24% Huizhou 45-9% -5% -27% 3-5% -34% 364-45% -2% 3% -15% n.a. -11% n.a. Haikou 134-6% 25% -8% 118-19% 68% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Shantou 98 28% 155% 82% 69 28% 25% 49 131% 358% 183% 135% 317% 154% 388% Central & Western China Chengdu n.a. n.a. n.a. n.a. 37-69% -59% 679-32% -44% -42% -53% -6% -74% -36% Changsha 185 n.a. -29% -19% 179-22% 22% 1,58 22% -35% -15% -19% 52% 18% -21% Nanchang 126-2% 16% 8% 18-8% 76% 898 71% 15% -43% 44% 153% 18% 186% Guiyang n.a. n.a. n.a. n.a. 51-19% 2% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Baotou 53 22% 12% 31% 31-24% 17% 283 25% -16% 44% 37% 46% -25% -29% Chongqing n.a. n.a. n.a. n.a. 335-39% 35% 3,667 7% 8% 85% 13% 17% 65% 37% Wuhan 45 32% -93% -86% 35-89% -9% 285 n.a. n.a. n.a. n.a. -81% -9% -87% Hefei n.a. n.a. n.a. n.a. 47-22% -63% 479-61% -51% -64% -65% n.a. -77% -74% Kunming 222 132% 271% 19% 11-41% 189% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Bengbu 54-52% -38% -1% 86 43% 51% 48 34% 77% 42% 38% n.a. 184% 382% Xi'an 263-28% 5% -3% 216-2% 6% 1,944 17% 1% 83% 53% 226% 35% 56% Median 13 8% 16% 15% 84-2% 38% 675-8% -6% -5% -19% 71% -14% -1% Tier 1 743 15% -14% 33% 47-14% -17% 4,7-31% -43% -8% -4% 65% -26% -21% Tier 2 1,552 21% -1% 8% 1,638-36% -1% 15,893-17% -15% -21% -19% 62% -17% -16% Tier 3 1,948-2% 32% 19% 1,835-5% 44% 7,178 25% 3% 42% 37% 219% -5% 44% Up cities 16 16 19 9 23 13 12 11 11 18 1 13 Down cities 11 11 9 27 13 15 15 15 15 5 18 13 Note: GFA numbers indicated in Hangzhou, Haikou, Kunming, Harbin, Yangzhou, and Lianyungang are for commodity properties; for others, the numbers refer to residential properties. Source: CREIS. Goldman Sachs Global Investment Research 3

Exhibit 3: Ytd ASP increased 19% yoy among the 14 cities with data available Weekly Comparison YTD (Jan 2, 217-Feb 26, 217) comparison 22-226 wow yoy vs. 217 Jan 217 YTD vs 216 vs 215 vs 214 vs 213 vs 212 vs 211 vs 21 (Rmb/sqm) (%) (%) (%) (Rmb/sqm) (%) (%) (%) (%) (%) (%) (%) Pan-Bohai Rim & North China Beijing 4,76-15% 22% 2% 41,33 31% 53% 48% 82% 117% 57% 113% Tianjin n.a. n.a. n.a. n.a. 15,572 33% 38% 59% 56% 7% 74% 73% Dalian 11,56-5% -4% -12% 11,768-4% 5% 13% 18% -6% -5% 28% Yangtze River Delta Region Shanghai 19,981-6% -22% -27% 24,176-2% 3% 35% 37% 89% 55% 92% Hangzhou 18,663 5% 16% -12% 2,385 22% 27% 27% 15% n.a. 15% n.a. Ningbo 15,543-4% 19% -6% 16,284 21% 27% 28% 37% 9% 14% 43% Southern China Shenzhen 55,215 6% 24% 1% 54,467 16% 14% 137% 172% 223% 171% 133% Guangzhou 16,655 11% 1% -1% 16,598 6% 13% 41% 22% 42% 42% 42% Sanya 23,352-7% 29% % 23,74 36% 15% -6% 1% -3% 1% % Dongguan 14,444-9% 34% -7% 15,727 38% 73% 73% 82% 83% 92% 99% Shantou 8,271 1% 13% 7% 7,94 7% 17% -2% -7% 26% 39% 5% Central & Western China Changsha 8,66 n.a. 37% 19% 7,715 23% 37% 21% 33% 37% 43% 74% Baotou 5,52 3% 13% 5% 5,371 8% 7% -4% 1% 17% 2% 37% Chongqing n.a. n.a. n.a. n.a. 7,779 18% 21% 12% 18% 25% 14% 53% Bengbu n.a. n.a. n.a. n.a. 5,638 2% 4% 5% 4% 5% 22% 39% Xi'an 6,975-7% 8% -1% 7,439 13% 2% -1% 6% 14% 18% 41% Median 14,994-4% 16% % 13,75 19% 3% 32% 35% 52% 42% 66% Up cities 6 11 7 23 24 21 22 22 25 24 Down cities 7 2 7 5 3 6 4 3 3 2 Note: GFA numbers indicated in Hangzhou are for commodity properties; for others, the numbers refer to residential properties. Source: CREIS. Goldman Sachs Global Investment Research 4

Exhibit 4: Major cities inventory months and total inventory breakdown by tiers (Months) Tier 1 inventory (RHS) Selective tier 3 inventory (RHS) Selective tier 2 inventory (RHS) Tier 1 inventory months (LHS) (mn sqm) 25 Selective tier 2 inventory months (LHS) Selective tier 3 inventory months (LHS) 16 2 14 12 15 1 8 1 6 5 4 2 Note: (1) Inventory months are calculated as sellable GFA divided by 12-m rolling GFA sold. (2) Tier 1 cities include Beijing, Shanghai, Shenzhen and Guangzhou. Selective tier 2 cities include Nanjing, Suzhou, Hangzhou, Xiamen, Qingdao. Selective tier 3 cities include Dongguan, Hefei, Wenzhou, Ningbo, Bengbu, Fuzhou and Huizhou. Source: CREIS, Gao Hua Securities Research. Goldman Sachs Global Investment Research 5

Valuation: -9%/-2% vs. 2H213-214 downcycle mean for off/onshore coverage on P/B Exhibit 5: Offshore developers existing NAV discount Exhibit 6: Onshore developers existing NAV discount % Offshore share price discount to NAV Average Avg+1 std Avg-1 std 213H2-214 Avg 1% Onshore share price discount to NAV Average Avg+1 std Avg-1 std 213H2-214 Avg -1% % -2% -1% -3% -2% -4% -3% -5% -4% -6% -5% -7% -6% -8% -7% Source: Datastream, Gao Hua Securities Research. Source: Datastream, Gao Hua Securities Research. Exhibit 7: Offshore developers P/B Exhibit 8: Onshore developers P/B 2.5 12mth trailing P/B(x) Average Avg+1std Avg-1std 3.5 12mth trailing P/B(x) Average Avg+1 std Avg-1 std 213H2-214 avg 2. 3. 2.5 1.5 2. 1. 1.5 1..5.5.. Source: Datastream, Gao Hua Securities Research. Source: Datastream, Gao Hua Securities Research. Goldman Sachs Global Investment Research 6

Exhibit 9: China developers valuation comparison Company Ticker Mkt Cap (US$ bn) Price as of Potential upside/ downside (%) Target price disc. to NAV Shr price (disc)/ prem to NAV FD Core P/E (x) P/B (exclude revaluation gain) (x) Dividend yield (%) 12 mth End-17 Rating 27/Feb/17 Price target NAV 16E 17E 18E 19E 16E 17E 18E 19E 16E 17E 18E 19E Hong Kong listed Agile 3383.HK 2.5 Buy 4.9 (HK$) 5.6 14-55% 12.51 (61) 5.9 4.9 4.7 5.1.5.5.5.5 6.9 8.6 9.2 8.5 China Vanke (H) 222.HK 3.3 Neutral 19.62 (HK$) 19. (3) -3% 26.78 (27) 9.4 8. 7.2 7.1 1.7 1.6 1.4 1.3 4.9 5.8 6.6 6.7 COGO 81.HK.8 Buy* 2.83 (HK$) 3.7 31-5% 7.36 (62) 5.8 4.8 4.2 4..6.6.5.4.... COLI 688.HK 33.8 Buy* 24.5 (HK$) 31. 29-1% 34.44 (3) 7.6 6.2 6.3 6.2 1.2 1..9.8 3.3 4. 4. 4. CRL 119.HK 18.9 Buy 21.25 (HK$) 25.1 18-25% 33.51 (37) 8.9 7.8 7.3 7.1 1.4 1.2 1.1 1. 3.2 3.6 3.9 4. CG 27.HK 15.1 Neutral 5.52 (HK$) 4.8 (13) -3% 7.38 (25) 9.9 7.8 7.1 6. 1.5 1.4 1.2 1.1 3.1 4. 4.5 5.3 Evergrande 3333.HK 1.2 Sell 5.8 (HK$) 3.3 (43) -6% 8.28 (3) 11.1 13.4 11.6 11.2 2.4 2.6 2.5 2.5 9.3 7.9 9.3 9.6 China Jinmao 817.HK 3.3 Neutral 2.43 (HK$) 2.54 5-4% 4.23 (42) 8.8 7.6 7.1 6.7 1..9.8.8 3.8 4.4 4.7 5. Greentown 39.HK 1.9 Neutral 6.96 (HK$) 7.6 9-5% 14.43 (52) 7.5 6.6 6.6 6.7.7.6.6.5.... R&F 2777.HK 4.4 Buy 1.68 (HK$) 12.7 19-3% 18.17 (41) 4.9 4.6 4.6 4.4.9.8.8.7 8.2 9. 9.2 9.6 Joy City 27.HK 2.2 Neutral 1.19 (HK$) 1.2 1-45% 2.11 (44) 25.6 17.2 14.1 13.1.8.8.8.8 4.6 1.5 1.9 2. KWG 1813.HK 1.9 Neutral 4.93 (HK$) 5.2 5-45% 9.45 (48) 4.6 4.4 4.1 4..7.6.6.5 7.2 7.6 8.4 8.7 Longfor 96.HK 9.3 Buy 12.42 (HK$) 14. 13-5% 27.95 (56) 7.8 7.5 7.3 8.6 1.3 1.2 1.1 1. 3.8 4.1 4.3 3.6 Poly Property (H) 119.HK 1.5 Buy 3.3 (HK$) 4.2 27-7% 9.13 (64) n.m. 43.4 29.7 26.2.5.5.5.5.... Red Star Macalline 1528.HK 3.8 Neutral 8.28 (HK$) 8.8 6-35% 13.34 (38) 9.6 9.9 1.2 1.2 1.6 1.6 1.5 1.4 6.4 6.3 6.3 6.3 Shimao 813.HK 4.8 Neutral 11.1 (HK$) 12.8 15-55% 28.35 (61) 5.2 5.1 5.3 5.3.8.7.7.6 5.9 6.1 6. 6. Shui On Land 272.HK 1.8 Neutral 1.73 (HK$) 2.1 21-55% 4.77 (64) n.m. n.m. n.m. n.m..4.4.4.4 3.1 1.8 1.9 2. Sino Ocean 3377.HK 3.6 Buy 3.74 (HK$) 4.7 26-55% 1.52 (64) 7. 5.6 5.2 4.6.6.6.6.5 4. 5.2 5.7 6.4 SOHO China 41.HK 2.7 Neutral 4.6 (HK$) 4.2 3-45% 7.63 (47) 36.7 26.9 21.4 19.5 1.1 1.3 1.3 1.3 11. 3.8 5. 5.5 Sunac 1918.HK 4. Neutral 8.15 (HK$) 7.3 (1) -45% 13.22 (38) 29. 13.8 5.9 5.4 1.2 1.2 1..9.8 1.5 3.6 3.9 HK listed average 9 (46) 8.9 7.4 6.5 6.4 1. 1..9.9 4.5 4.3 4.7 4.9 A-share listed CMSK 1979.SZ 18.4 Buy 17.12 (Rmb) 2. 17-3% 28.9 (39) 15.8 13.1 1.8 1.3 2.6 2.3 2. 1.7 1.9 2.3 2.8 2.8 CFLD 634.SS 11. Buy 25.62 (Rmb) 3.1 17 n.m. n.m. n.m. 11.7 9.1 7.2 6.1 2.9 2.2 1.8 1.4.9 1.1 1.4 1.4 Gemdale 6383.SS 7.9 Sell 12.9 (Rmb) 11.2 (7) -25% 14.98 (19) 17.1 14.2 14.2 14.2 1.8 1.7 1.6 1.5 3.4 4.2 4.2 4.2 OCT 69.SZ 8.7 Buy 7.35 (Rmb) 8.3 13-5% 16. (54) 12.3 11.2 1.2 9.9 1.4 1.3 1.1 1. 1. 1.1 1.2 1.2 Poly (A) 648.SS 16.2 Buy* 9.44 (Rmb) 11.6 23-1% 12.94 (27) 8.2 6.5 6.3 5.9 1.2 1.1 1..9 3.2 3.8 4. 4. SMC 6823.SS 2.8 Neutral 7.26 (Rmb) 7. (4) -25% 9.34 (22) 9. 9.5 9.5 1.3 1..9.8.8 1.2 1.1 1.1 1.1 Vanke (A) 2.SZ 28.9 Sell 2.52 (Rmb) 17.6 (14) -3% 25.17 (18) 11.3 9.1 8. 7.9 2. 1.8 1.6 1.4 4. 4.9 5.6 5.6 Onshore average 1 (3) 1.7 9.1 8.3 8.1 1.8 1.6 1.4 1.2 2.2 2.6 2.9 2.9 Singapore listed Yanlord YNLG.SI 2.4 Buy 1.52 (S$) 1.9 25-45% 3.46 (56) 8.6 6.9 6.6 6.9.8.8.7.6 1.7 2.2 2.3 2.3 Simple average of above 1 (45) 11.6 1.7 9.1 8.7 1.2 1.1 1..9 3.8 3.7 4. 4.1 (1) *denotes the stock is on our Conviction List. (2) Our 12-month target prices are based on end-217e NAV for our coverage universe except for RSM, which is based on SOTP given it is not a developer, and Greentown, Poly Property (H), for which our TP is a blend of our fundamental valuation (based on end-217e NAV) and theoretical M&A value. We derive M&A values based on the mean multiple implied by recent M&A deals, with the multiple adjusted for a premium/discount (P/B-ROE vs. sector), detailed in our report Poly H: Assessing asset value crystallization from possible M&A; up to Buy published Feb 3, 217. (3) Average P/E does not include SOHO, Poly (H), Joy City and Shui On Land, which are outliers. Source: Company data, Datastream, Gao Hua Securities Research. Goldman Sachs Global Investment Research 7

Disclosure Appendix Reg AC We, Yi Wang, CFA and Vicky Li, hereby certify that all of the views expressed in this report accurately reflect our personal views about the subject company or companies and its or their securities. We also certify that no part of our compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Investment Profile The Goldman Sachs Investment Profile provides investment context for a security by comparing key attributes of that security to its peer group and market. The four key attributes depicted are: growth, returns, multiple and volatility. Growth, returns and multiple are indexed based on composites of several methodologies to determine the stocks percentile ranking within the region's coverage universe. The precise calculation of each metric may vary depending on the fiscal year, industry and region but the standard approach is as follows: Growth is a composite of next year's estimate over current year's estimate, e.g. EPS, EBITDA, Revenue. Return is a year one prospective aggregate of various return on capital measures, e.g. CROCI, ROACE, and ROE. Multiple is a composite of one-year forward valuation ratios, e.g. P/E, dividend yield, EV/FCF, EV/EBITDA, EV/DACF, Price/Book. Volatility is measured as trailing twelve-month volatility adjusted for dividends. Quantum Quantum is Goldman Sachs' proprietary database providing access to detailed financial statement histories, forecasts and ratios. It can be used for in-depth analysis of a single company, or to make comparisons between companies in different sectors and markets. GS SUSTAIN GS SUSTAIN is a global investment strategy aimed at long-term, long-only performance with a low turnover of ideas. The GS SUSTAIN focus list includes leaders our analysis shows to be well positioned to deliver long term outperformance through sustained competitive advantage and superior returns on capital relative to their global industry peers. Leaders are identified based on quantifiable analysis of three aspects of corporate performance: cash return on cash invested, industry positioning and management quality (the effectiveness of companies' management of the environmental, social and governance issues facing their industry). Disclosures Coverage group(s) of stocks by primary analyst(s) Yi Wang, CFA: A-share Property, China Property. Vicky Li: A-share Property, China Property. A-share Property: CFLD, China Merchants Shekou Inds Zone, China Vanke (A), Gemdale Corp., Poly Real Estate Group, Shanghai Shimao Co., Shenzhen Overseas Chinese Town. China Property: Agile Property Holdings, China Evergrande Group, China Jinmao Holdings, China Overseas Grand Oceans Group, China Overseas Land, China Resources Land, China Vanke (H), Country Garden Holdings, Greentown China Holdings, Guangzhou R&F Properties, Joy City Property Ltd., KWG Property Holding, Longfor Properties Co., Poly Property Group, Red Star Macalline Group, Shimao Property, Shui On Land, Sino-Ocean Land Holdings, SOHO China, Sunac China Holdings, Yanlord Land. Company-specific regulatory disclosures The following disclosures relate to relationships between The Goldman Sachs Group, Inc. (with its affiliates, "Goldman Sachs") and companies covered by the Global Investment Research Division of Goldman Sachs and referred to in this research. Goldman Sachs has received compensation for investment banking services in the past 12 months: China Overseas Grand Oceans Group (HK$2.83) and China Overseas Land (HK$24.5) Goldman Sachs expects to receive or intends to seek compensation for investment banking services in the next 3 months: China Overseas Grand Oceans Group (HK$2.83) and China Overseas Land (HK$24.5) Goldman Sachs had an investment banking services client relationship during the past 12 months with: China Overseas Grand Oceans Group (HK$2.83) and China Overseas Land (HK$24.5) Goldman Sachs had a non-securities services client relationship during the past 12 months with: China Overseas Grand Oceans Group (HK$2.83), China Overseas Land (HK$24.5) and Poly Real Estate Group (Rmb9.44) Goldman Sachs makes a market in the securities or derivatives thereof: China Overseas Land (HK$24.5) Distribution of ratings/investment banking relationships Goldman Sachs Investment Research global Equity coverage universe Rating Distribution Investment Banking Relationships Buy Hold Sell Buy Hold Sell Goldman Sachs Global Investment Research 8

Global 32% 54% 14% 64% 6% 51% As of January 1, 217, Goldman Sachs Global Investment Research had investment ratings on 2,92 equity securities. Goldman Sachs assigns stocks as Buys and Sells on various regional Investment Lists; stocks not so assigned are deemed Neutral. Such assignments equate to Buy, Hold and Sell for the purposes of the above disclosure required by the FINRA Rules. See 'Ratings, Coverage groups and views and related definitions' below. The Investment Banking Relationships chart reflects the percentage of subject companies within each rating category for whom Goldman Sachs has provided investment banking services within the previous twelve months. Price target and rating history chart(s) Poly Real Estate Group (648.SS) Stock Price Currency : Chinese Renminbi China Overseas Grand Oceans Group (81.HK) Stock Price Currency : Hong Kong Dollar Goldman Sachs rating and stock price target history 6, 14. 1.7 11.3 5,5 12. 11 11 13.4 5, 1. 7.53 7.5 4,5 8. 4, 6. 3,5 4. 13.1 3, 2. 13.3 12.9 2,5 12.2. 2, B F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D 214 215 216 Source: Goldman Sachs Investment Research for ratings and price targets; FactSet closing prices as of 12/31/216. Rating Covered by Yi Wang, CFA Price target Stock Price Index Price Stock Price Goldman Sachs rating and stock price target history 8. 16, 6.6 5.4 15, 7. 5.9 3.6 14, 6. 5.5 13, 2.66 12, 5. 2.78 3.3 11, 3.4 2.7 1, 4. 9, 7.1 6 3. 8, 7.7 5 7, 2. 6, Apr 16 Aug 1 N B N F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D 214 215 216 Source: Goldman Sachs Investment Research for ratings and price targets; FactSet closing prices as of 12/31/216. Rating Oct 21, 216 to B from N Covered by Vicky Li Price target Index Price Price target at removal Not covered by current analyst Price target at removal Not covered by current analyst Shanghai - Shenzhen 3 Hang Seng China Ent. Index The price targets show n should be considered in the context of all prior published Goldman Sachs research, which may or may not have included price targets, as well as developments relating to the company, its industry and financial markets. The price targets show n should be considered in the context of all prior published Goldman Sachs research, which may or may not have included price targets, as well as developments relating to the company, its industry and financial markets. China Overseas Land (688.HK) Stock Price Currency : Hong Kong Dollar Stock Price Goldman Sachs rating and stock price target history 4 16, 26.4 32.3 32.6 15, 38.8 35 26.4 3.7 14, 37.6 29.2 29.5 13, 38.7 3 25.4 12, 35.4 11, 25 1, 9, 2 8, 27.3 7, 15 6, Oct 4 N B F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D 214 215 216 Source: Goldman Sachs Investment Research for ratings and price targets; FactSet closing prices as of 12/31/216. Rating Covered by Yi Wang, CFA Price target Index Price Price target at removal Not covered by current analyst Hang Seng China Ent. 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