China Overseas Land & Investment

China Overseas Land & Investment 1Q15 result in line; Buy on value emerging from asset injection Overweight 0688.HK, 688 HK Price: HK$30.40 Price Target: HK$33.50 Previous: HK$28.50 COLI reported 1Q15 results in line with our estimates. Growth in revenue and profit is the slowest in recent years, and this was also expected, due to slow sales in 2014. The asset injection from CSCEC should provide immediate earnings contribution, and together with COLI stepping up in sales of its luxurious inventory in Hong Kong, should help support the margin and earnings gap in 2015E-16E. We continue to like COLI in the medium term, expecting more value to emerge from the asset injection. This could bring forth potential upward revisions on earnings and valuation multiple pick-up. Stay OW with a Jun-2016 price target of HK$33.5 per share. Slow growth to be remedied by assets to be injected: Overall results were in line, with HK$6.32 bn operating profit, vs JPMe of HK$6.40 bn, up 4.5% Y/Y with an operating margin of 29.5%. Such margin is slightly lower than the 30.8% booked in FY2014 and is within expectations, due mainly to increases in land costs, in our view. We had been expecting COLI s 2015E earning growth to slow down due to slow sales in 2014, and the 1Q15 result supports our investment view. Due to abundant land premium payment, cash on hand decreased by about HK$10bn, with gearing up to 39%. But this need not be a concern, in our view, as we believe the share placement to the parentco will substantially bring down net gearing. Sales pick-up from Hong Kong: COLI has become more active in selling luxury homes in Hong Kong. Year-to-date according to HKET, COLI has sold two units in Stanley, at HK$522 mn (ASP HK$68K psf), with new launches in Kowloon Tong, Sai Ying Pun, Ap Lei Chau and Ma Tau Kok, and also the delivery in Macau (The Carat). We expect sales to pick up substantially in Hong Kong and provide support to earnings in 2015-17E. Stay OW on value emerging from asset injection: COLI released the circular on the injection earlier, and from the latest data, we expect the NAV accretion to be HK$21.7 bn, or HK$3.1 per share including share placement. The injected asset should soon be contributing to COLI s sales and earnings, and should provide another driver to COLI in the coming six to 12 months. Hence, we stay OW, with a Jun-2016 PT of HK$33.5, based on 10x 2015/16E avg P/E. We have revised up our 2015 earnings by +0.9% to reflect the better-than-expected home sales in HK. China China / Hong Kong Property Ryan Li, CFA AC Bloomberg JPMA RLI <GO> J.P. Morgan Securities (Asia Pacific) Limited Price Performance 28 24 HK$ 20 16 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 0688.HK share price (HK$) R-CHIP (rebased) YTD 1m 3m 12m Abs 15.4% 26.0% 17.3% 43.9% Rel -5.6% 6.0% -0.4% 15.8% Company reports: COLI: Further analysis on injection (April 17, 2015) COLI: 2014 result review (March 24, 2015) China Overseas Land & Investment Ltd. (Reuters: 0688.HK, Bloomberg: 688 HK) HK$ in mn, year-end Dec FY13A FY14A FY15E FY16E FY17E Revenue (HK$ mn) 82,469 119,997 124,907 142,637 162,231 Net Profit (HK$ mn) 23,044 27,730 25,805 28,698 31,411 Core Profit (HK$ mn) 18,994 23,824 25,805 28,698 31,411 EPS (HK$) 2.82 3.39 3.16 3.51 3.84 Core EPS (HK$) 2.32 2.91 3.16 3.51 3.84 Core EPS growth (%) 19.1% 25.4% 8.3% 11.2% 9.5% DPS (HK$) 0.47 0.55 0.62 0.69 0.76 ROE 19.3% 19.6% 17.9% 17.3% 16.5% P/E (Core) 13.1 10.4 9.6 8.7 7.9 P/BV (x) 2.3 1.9 1.6 1.4 1.2 BVPS (HK$) 13.46 16.31 18.90 21.77 24.90 RNAV/Share 26.34 31.78 - Dividend Yield 1.5% 1.8% 2.0% 2.3% 2.5% Source: Company data, Bloomberg, J.P. Morgan estimates. Company Data Shares O/S (mn) 8,174 Market Cap (HK$ mn) 248,489 Market Cap ($ mn) 32,062 Price (HK$) 30.40 Date Of Price 22-Apr-15 Free Float(%) 46.5% 3M - Avg daily vol (mn) 27.89 3M - Avg daily val (HK$ mn) 693.03 3M - Avg daily val ($ mn) 89.4 R-CHIP 5382.46 Exchange Rate 7.75 Price Target End Date 30-Jun-16 See page 7 for analyst certification and important disclosures, including non-us analyst disclosures. J.P. Morgan does and seeks to do business with companies 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. www.jpmorganmarkets.com

Key catalyst for the stock price: Upside risks to our view: Downside risks to our view: (1) high and stable ROE, (2) low gearing, (3) Stronger-than-expected sales Restrictive policy on property low funding cost and (4) potential asset injections from CSCEC. Faster-than-expected asset injection Tightening in mortgage Delay in asset injection Key financial metrics FY14 FY15E FY16E FY17E Revenues (LC) 119,997 124,911 142,652 162,259 Revenue grow th (%) 45.5% 4.1% 14.2% 13.7% EBITDA (LC) 36,851 38,489 42,831 47,212 EBITDA margin (%) 30.7% 30.8% 30.0% 29.1% Tax rate (%) 25.5% 25.0% 25.0% 25.0% Net profit (LC) 27,730 25,808 28,709 31,431 EPS (LC) 3.39 3.16 3.51 3.85 EPS grow th (%) 20.3% -6.9% 11.2% 9.5% DPS (LC) 0.55 0.62 0.69 0.76 BVPS (LC) 16.31 18.90 21.77 24.91 Operating cash flow (LC mn) (8,082) 39,330 75,802 102,250 Free cash flow (LC mn) (8,221) 38,694 75,176 101,636 Interest cover (X) NM NM NM NM Net margin (%) 23.1% 20.7% 20.1% 19.4% Sales/assets (X) 0.37 0.33 0.32 0.32 Debt/equity (%) 33.9% 30.8% 28.2% 26.1% Net debt/equity (%) -2.8% -28.0% -66.4% -107.4% ROE (%) 19.6% 17.9% 17.3% 16.5% Key model assumptions FY14E China residential ASP growth 0-10% China development WACC 7.43% Valuation and price target basis Our Jun-16 PT of HK$33.5 is based on a 10x 2015E/16E av erage P/E. The P/E we use is at the top range of the sector, reflecting COLI s exceptionally high ROA and defensiveness. GAV breakdown (Dec-15E) 1% 22% Development properties Investment properties Other investments 77% Source: Bloomberg, Company and J.P. Morgan estimates. Source: Bloomberg, Company and J.P. Morgan estimates. Sensitivity analysis NAV EPS JPMe vs. consensus, change in estimates Senstiv ity to Dec-13 Dec-14 FY14E EPS FY15E FY16E 5% chg in China residential ASP 4.3% 3.6% 0.0% JPMe old 3.13 3.51 1% change in China dev WACC 1.8% 1.5% n/a JPMe new 3.16 3.51 % chg 1% 0% Consensus 3.29 3.78 Source: Bloomberg, Company and J.P. Morgan estimates. Source: Bloomberg, Company and J.P. Morgan estimates. Comparative metrics CMP Mkt Cap P/E NAV discount P/BV YTD LC $Mn FY15E FY16E Dec-15 Dec-16 FY15E FY16E Stock perf. China Overseas Land Investment 28.85 31,739 9.1 8.2 9% -9% 1.5 1.3 25% China Resources Land 24.25 21,526 12.3 11.4-34% -42% 1.3 1.2 19% China Vanke - H shares 19.32 26,556 11.4 10.3-11% NA 1.6 1.4 60% Ev ergrande Real Estate 5.00 9,692 15.5 19.8-14% NA 1.2 1.1 59% Franshion Properties 2.99 3,545 7.8 8.0-38% NA 0.7 0.6 35% Sino-Ocean Land 5.64 5,906 8.4 7.2-56% NA 0.7 0.7 28% Shui On Land 2.25 2,333 20.6 11.9-58% NA 0.4 0.4 23% Shimao Properties 17.18 7,929 6.0 5.8-16% NA 0.9 0.8-1% Guangzhou R&F 8.84 3,824 4.2 3.6-39% -33% 0.6 0.5-7% Agile Property 5.57 2,956 5.0 5.0-12% NA 0.4 0.4 26% KWG Property 6.92 2,820 5.2 4.2-40% -45% 0.8 0.7 30% Longfor Properties 11.96 9,205 7.6 7.3-27% -35% 1.0 0.9 20% Country Garden 3.68 11,073 5.7 4.9-6% 3% 0.9 0.8 19% Source: Bloomberg, Company and J.P. Morgan estimates. Prices are as of Apr 21, 2015 2

Table 1: COLI quarterly result summary 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 China contracted sales (Rmb mn) 31.46 31.29 56.57 21.19 25.99 30.47 26.00 58.34 26.29 China contracted sales area (mn sqm) 2.56 2.67 4.68 1.96 1.95 2.47 2.32 2.66 1.74 China contracted sales ASP (Rmb psm) 12,301 11,735 12,074 10,820 13,311 12,347 11,209 21,959 15,100 Net gearing 18.8% 14.9% 29.6% 28.4% 43.1% 37.3% 47.6% 32.5% 39.0% Cash on hand (HK$ bn) 42.3 51.7 37.5 41.5 25.3 49.8 37.6 51.2 41.4 New land acquisition (mn sqm) 1.47 3.15 3.25 5.71 6.39 0.45 1.56 0.59 1.63 Turnover (HK$ bn) 14.69 17.50 22.13 28.15 20.34 29.23 11.61 58.82 21.81 Operating profit (HK$ bn) 4.82 5.88 7.35 10.30 6.05 10.00 3.13 17.74 6.43 Operating margin 32.8% 33.6% 33.2% 36.6% 29.7% 34.2% 27.0% 30.2% 29.5% Y/Y % 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 China contracted sales 83% 11% 163% 38% -17% -3% -54% 175% 1% China contracted sales area 90% 5% 146% 38% -24% -7% -50% 36% -11% China contracted sales ASP -4% 6% 7% 0% 8% 5% -7% 103% 13% Net gearing -16% -17% 6% 8% 24% 22% 18% 4% -4% Cash on hand 74% 94% 24% 1% -40% -4% 0% 23% 64% New land acquisition 101% 58% 379% -17% 335% -86% -52% -90% -75% Turnover 18% 36% 31% 25% 38% 67% -48% 109% 7% Operating profit 15% 7% 19% 35% 26% 70% -57% 72% 6% Operating margin -0.8% -9.1% -3.3% 2.7% -3.1% 0.6% -6.2% -6.5% -0.2% Sources: Company data, J.P. Morgan 3

Investment Thesis, Valuation and Risks China Overseas Land & Investment (Overweight; Price Target: HK$33.50) Investment Thesis We think COLI has spent effort in planning for the sales and delivery of the injected assets, and the potential earnings dilution due to the injection and share placement should be minimal, in our view. From now, the main rerating catalysts are likely to come from the gradual release of the value from the injected assets over the next six to 12 months, and this could help sustain COLI s growth and returns in the next two to three years, making it stand out among the large caps, over Vanke. Moreover, with an aggressive growth target of 20% Y/Y (from HK$140 bn to HK$168 bn), COLI has prepared an abundant supply of sellable resources, which should allow it to benefit most from a potential physical market improvement in 2Q and 3Q2015. We believe the announcement of details of the asset injection, together with the improvement in sales volume and potential policy easing, will be key catalysts for COLI. Valuation Our June-2016 price target is HK$33.50 per share based on 10.0x 2015/16E average P/E. We think COLI's valuation looks attractive at 9.0x P/E, versus the long-term average P/E (since Jan-2009) of 10.0x. Our PT is set at the historical mean, and there is potential uplift of valuation, coming from gradual value emerging from the asset injection, which could cause the stock to trade at above mean, in our view. Risks to Rating and Price Target Key downside risks to our price target and rating are a demand shock caused by substantial deterioration in the macro economy, substantial NAV dilutive injection, and further Rmb depreciation against the USD. 4

JPM Q-Profile China Overseas Land & Investment Limited (HONG KONG / Financials) As Of: 16-Apr-2015 Quant_Strategy@jpmorgan.com Local Share Price Current: 28.65 12 Mth Forward EPS Current: 3.50 35.00 4.00 30.00 3.00 25.00 20.00 15.00 2.00 1.00 10.00 0.00 5.00-1.00 0.00 Dec/00 Sep/01 Jun/02 Mar/03 Dec/03 Sep/04 Jun/05 Dec/06 Sep/07 Jun/08 Mar/09 Dec/09 Sep/10 Jun/11 Dec/12 Sep/13 Jun/14 Mar/15-2.00 PE (1Yr Forward) Current: 8.2x P/E Relative to Hong Kong Index Current: 0.52 30.0x 25.0x 20.0x 15.0x 10.0x 5.0x 0.0x Earnings Yield (& Local Bond Yield) Current: 12% Dividend Yield (Trailing) Current: 2.20 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 12Mth fwd EY Proxy Hong Kong BY ROE (Trailing) Current: 22.75 Price/Book (Value) Current: 1.8x 30.00 25.00 20.00 15.00 10.00 5.00 0.00-5.00-10.00 Summary China Overseas Land & Investment Limit 30215.36 As Of: 16-Apr-15 HONG KONG 77.32008 TICKER 688 HK Local Price: 28.65 Financials Real Estate Management & Devel EPS: 3.50 Latest Min Max Median Average 2 S.D.+ 2 S.D. - % to Min % to Max % to Med % to Avg 12mth Forward PE 8.19x 6.08 27.47 11.13 12.14 20.65 3.64-26% 235% 36% 48% P/BV (Trailing) 1.76 0.43 7.41 1.80 2.05 4.91-0.82-75% 322% 2% 17% Dividend Yield (Trailing) 2.20x 0.00 5.41 1.93 2.20 4.78-0.39-100% 146% -12% 0% ROE (Trailing) 22.75-3.86 26.80 16.97 14.86 33.03-3.31-117% 18% -25% -35% Source: Bloomberg, Reuters Global Fundamentals, IBES CONSENSUS, JPMorgan Quantitative & Derivative Strategy 2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 6.0 5.0 4.0 3.0 2.0 1.0 0.0 8.0x 7.0x 6.0x 5.0x 4.0x 3.0x 2.0x 1.0x 0.0x -1.0x -2.0x P/B Trailing P/B Forward 5

China Overseas Land & Investment: Summary of Financials Income Statement Cash flow statement HK$ in millions, year end Dec FY14 FY15E FY16E FY17E HK$ in millions, year end Dec FY14 FY15E FY16E FY17E Revenues 119,997 124,907 142,637 162,231 EBIT 42,425 40,078 44,341 48,685 % change Y/Y 45.5% 4.1% 14.2% 13.7% Depr. & amortization 0 36 38 0 EBIT 36,851 38,450 42,779 47,184 Change in working capital (5,974) 24,330 30,347 37,663 % change Y/Y 51.3% 4.3% 11.3% 10.3% Others (44,534) (25,125) 1,048 15,873 EBIT Margin 30.7% 30.8% 30.0% 29.1% Cash flow from operations (8,082) 39,317 75,773 102,220 Net Interest 69 56 39 20 Earnings before tax 42,425 40,078 44,341 48,685 Capex (106) (600) (600) (600) % change Y/Y 30.8% (5.5%) 10.6% 9.8% Disposal/(purchase) 11 0 0 0 Tax (14,170) (13,790) (15,494) (17,124) Net Interest (3,024) (3,604) (3,986) (4,408) as % of EBT 33.4% 34.4% 34.9% 35.2% Free cash flow (8,221) 38,681 75,147 101,607 Net income (reported) 27,730 25,805 28,698 31,411 % change Y/Y 20.3% (6.9%) 11.2% 9.5% Equity raised/(repaid) 2 0 0 0 Core net profit 23,824 25,805 28,698 31,411 Debt raised/(repaid) 21,819 8,881 9,119 9,381 % change Y/Y 25.4% 8.3% 11.2% 9.5% Other 2,168 0 0 0 Shares outstanding 8,174 8,174 8,174 8,174 Dividends paid (4,048) (4,659) (5,231) (5,804) EPS (reported) (HK$) 3.39 3.16 3.51 3.84 Beginning cash 40,876 50,238 93,106 172,116 % change Y/Y 20.3% (6.9%) 11.2% 9.5% Ending cash 50,326 93,106 172,116 277,286 Core EPS (HK$) 2.91 3.16 3.51 3.84 DPS (HK$) 0.55 0.62 0.69 0.76 % change Y/Y 25.4% 8.3% 11.2% 9.5% Balance sheet Ratio Analysis HK$ in millions, year end Dec FY14 FY15E FY16E FY17E %, year end Dec FY14 FY15E FY16E FY17E Cash and cash equivalents 50,238 93,106 172,116 277,327 EBIT margin 30.7% 30.8% 30.0% 29.1% Accounts receivable 7,671 7,671 7,671 7,671 Net margin 23.1% 20.7% 20.1% 19.4% Inventories 211,573 222,943 206,667 174,180 SG&A/Sales 3.0% 3.0% 3.0% 3.0% Others 14,539 14,539 14,539 14,539 Current assets 284,021 338,259 400,994 473,717 Sales per share growth 45.5% 4.1% 14.2% 13.7% LT investments - - - - Sales growth 45.5% 4.1% 14.2% 13.7% Net fixed assets 1,502 1,574 1,644 1,712 Net profit growth 20.3% (6.9%) 11.2% 9.5% Total Assets 350,937 407,818 473,146 548,418 EPS growth 20.3% (6.9%) 11.2% 9.5% Liabilities Interest coverage (x) NM NM NM NM ST loans 22,542 22,542 22,542 22,542 Net debt to total capital (2.9%) (38.9%) (197.0%) 1459.9% Payables 36,831 41,831 46,831 51,831 Net debt to equity (2.8%) (28.0%) (66.3%) (107.4%) Others 76,537 97,908 125,501 160,634 Sales/assets 0.4 0.3 0.3 0.3 Total current liabilities 135,910 162,282 194,874 235,007 Assets/equity 2.7 2.6 2.7 2.7 Long-term debt 23,813 26,194 28,814 31,695 ROE 19.6% 17.9% 17.3% 16.5% Other liabilities 54,406 60,906 67,406 73,906 ROCE 14.1% 13.2% 12.9% 12.6% Total Liabilities 214,129 249,382 291,094 340,609 Shareholder's equity 133,334 154,480 177,947 203,555 BVPS 16.31 18.90 21.77 24.90 Source: Company reports and J.P. Morgan estimates. 6

Analyst Certification: The research analyst(s) denoted by an AC on the cover of this report certifies (or, where multiple research analysts are primarily responsible for this report, the research analyst denoted by an AC on the cover or within the document individually certifies, with respect to each security or issuer that the research analyst covers in this research) that: (1) all of the views expressed in this report accurately reflect his or her personal views about any and all of the subject securities or issuers; and (2) no part of any of the research analyst's compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst(s) in this report. For all Korea-based research analysts listed on the front cover, they also certify, as per KOFIA requirements, that their analysis was made in good faith and that the views reflect their own opinion, without undue influence or intervention. Important Disclosures Client: J.P. Morgan currently has, or had within the past 12 months, the following company(ies) as clients: China Overseas Land & Investment. Client/Investment Banking: J.P. Morgan currently has, or had within the past 12 months, the following company(ies) as investment banking clients: China Overseas Land & Investment. Investment Banking (past 12 months): J.P. Morgan received in the past 12 months compensation from investment banking China Overseas Land & Investment. Investment Banking (next 3 months): J.P. Morgan expects to receive, or intends to seek, compensation for investment banking services in the next three months from China Overseas Land & Investment. Company-Specific Disclosures: Important disclosures, including price charts and credit opinion history tables, are available for compendium reports and all J.P. Morgan covered companies by visiting https://jpmm.com/research/disclosures, calling 1-800-477-0406, or e-mailing research.disclosure.inquiries@jpmorgan.com with your request. J.P. Morgan s Strategy, Technical, and Quantitative Research teams may screen companies not covered by J.P. Morgan. For important disclosures for these companies, please call 1-800-477-0406 or e-mail research.disclosure.inquiries@jpmorgan.com. China Overseas Land & Investment (0688.HK, 688 HK) Price Chart Price(HK$) 55 44 33 22 11 0 Oct 06 OW HK$13OW HK$15 OW HK$18.5 OW HK$19.5 N HK$23 N HK$24.5 OW HK$10.5 OW HK$19 N HK$10 OW HK$18 OW HK$16.5 OW HK$18.5N HK$26OW HK$27 OW HK$29 OW OW HK$9.6 HK$17.5 OW HK$20 Apr 08 Source: Bloomberg and J.P. Morgan; price data adjusted for stock splits and dividends. Initiated coverage Mar 18, 2007. N HK$9 OW HK$19.5 OW HK$17 OW OW HK$18 HK$21.3 OW HK$18.3 OW OW HK$21 HK$23.5 N HK$21.5 OW OW HK$26 HK$24.5 OW HK$2 Oct 09 Apr 11 Oct 12 Apr 14 Date Rating Share Price (HK$) 18-Mar-07 OW 8.37 9.60 18-Apr-07 OW 10.26 10.50 01-Jun-07 OW 10.60 13.00 19-Jul-07 OW 13.84 17.50 26-Nov-07 OW 15.74 20.00 01-Feb-08 OW 13.01 19.00 24-Mar-08 OW 11.43 15.00 20-Jan-09 N 11.10 9.00 24-Mar-09 N 12.48 10.00 08-Jun-09 OW 16.42 18.50 18-Aug-09 OW 17.46 19.50 07-Jun-10 OW 14.74 17.00 12-Aug-10 OW 16.30 18.00 11-Nov-10 OW 16.50 19.50 18-Mar-11 OW 13.14 18.00 10-Aug-11 OW 16.42 21.30 19-Oct-11 OW 12.36 16.50 23-Feb-12 OW 15.96 18.30 16-Mar-12 OW 15.36 18.50 12-Aug-12 OW 18.08 21.00 30-Nov-12 OW 22.50 23.50 17-Jan-13 N 25.00 26.00 19-Mar-13 N 21.10 23.00 22-Jul-13 N 20.75 21.50 24-Oct-13 OW 23.15 27.00 14-Mar-14 OW 18.80 26.00 22-Jun-14 OW 19.18 24.50 Price Target (HK$) 7

31-Jul-14 OW 22.75 29.00 30-Oct-14 N 21.85 24.50 25-Mar-15 OW 23.55 28.50 The chart(s) show J.P. Morgan's continuing coverage of the stocks; the current analysts may or may not have covered it over the entire period. J.P. Morgan ratings or designations: OW = Overweight, N= Neutral, UW = Underweight, NR = Not Rated Explanation of Equity Research Ratings, Designations and Analyst(s) Coverage Universe: J.P. Morgan uses the following rating system: Overweight [Over the next six to twelve months, we expect this stock will outperform the average total return of the stocks in the analyst s (or the analyst s team s) coverage universe.] Neutral [Over the next six to twelve months, we expect this stock will perform in line with the average total return of the stocks in the analyst s (or the analyst s team s) coverage universe.] Underweight [Over the next six to twelve months, we expect this stock will underperform the average total return of the stocks in the analyst s (or the analyst s team s) coverage universe.] Not Rated (NR): J.P. Morgan has removed the rating and, if applicable, the price target, for this stock because of either a lack of a sufficient fundamental basis or for legal, regulatory or policy reasons. The previous rating and, if applicable, the price target, no longer should be relied upon. An NR designation is not a recommendation or a rating. In our Asia (ex-australia) and U.K. small- and mid-cap equity research, each stock s expected total return is compared to the expected total return of a benchmark country market index, not to those analysts coverage universe. If it does not appear in the Important Disclosures section of this report, the certifying analyst s coverage universe can be found on J.P. Morgan s research website, www.jpmorganmarkets.com. Coverage Universe: Li, Ryan: Agile Property Holdings Ltd (3383.HK), COFCO Land Holdings Limited (0207.HK), China Overseas Land & Investment (0688.HK), China Resources Land (1109.HK), China Vanke - A (000002.SZ), China Vanke - H (2202.HK), Country Garden Holdings (2007.HK), Evergrande Real Estate (3333.HK), Franshion Properties (China) Ltd. (0817.HK), Guangzhou R&F Properties (2777.HK), KWG Property Holding Ltd. (1813.HK), Longfor Properties Co. Ltd. (0960.HK), Shimao Property Holdings (0813.HK), Shui On Land Ltd (0272.HK), Sino-Ocean Land (3377.HK) J.P. Morgan Equity Research Ratings Distribution, as of March 31, 2015 Overweight (buy) Neutral (hold) Underweight (sell) J.P. Morgan Global Equity Research Coverage 43% 44% 13% IB clients* 55% 49% 37% JPMS Equity Research Coverage 44% 48% 9% IB clients* 75% 68% 54% *Percentage of investment banking clients in each rating category. For purposes only of FINRA/NYSE ratings distribution rules, our Overweight rating falls into a buy rating category; our Neutral rating falls into a hold rating category; and our Underweight rating falls into a sell rating category. Please note that stocks with an NR designation are not included in the table above. Equity Valuation and Risks: For valuation methodology and risks associated with covered companies or price targets for covered companies, please see the most recent company-specific research report at http://www.jpmorganmarkets.com, contact the primary analyst or your J.P. Morgan representative, or email research.disclosure.inquiries@jpmorgan.com. 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