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Stock Market Performance Price Abs %

9 Dec chg chgHK Equities Hang Seng Index 21,804 (101) (0.5)- Spot mth fut. 21,779 (Prem.:-25)

H-share Index 9,559 (102) (1.1)- Spot mth fut. 9,574 (Prem.:15)

Turnover HK$bn 66.0 (10) (13.5)-% from HSI 29.7 (3)-% CBBC, wrnt 32.6 10

China Equities CSI 300 Index 3,636 13 0.4Sh Composite Index 12,180 15 0.1Sz Composite Index 2,214 (7) (0.3)Asian Equities Nikkei 225 19,301 (192) (1.0)Korea KOSPI 1,948 (1) (0.0)Taiwan TWSE 8,230 (114) (1.4)India Sensex 30 25,036 (274) (1.1)US/European Equities DJIA 17,492 (76) (0.4)S&P500 2,048 (16) (0.8)NASDAQ 5,023 (75) (1.5)UK FTSE 100 6,127 (9) (0.1)Germany DAX 10,592 (81) (0.8)France CAC40 4,637 (44) (0.9)Source: Bloomberg Other Indicators

Price Abs Chg9 Dec chg %

WTI oil $/bl 37.2 (0.4) (0.9)Gold $/troy oz 1,077.3 3.0 0.3 Cu fut. $/metric ton 4,588.0 0.0 0.0 Al fut. $/metric ton 1,477.0 0.0 0.0 Reuters/Jefferies CRB fut. 177.6 0.2 0.1 Baltic Dry Index 551.0 0.0 0.0 UST yield 3m % 0.25 (0.02)UST yield 10y % 2.22 (0.002)HIBOR 3m % 0.39 0.001 USD LIBOR 3m % 0.49 0.000

Source: Bloomberg HK Listco ADR US (Top Ten)

ADR cls HK cls ChgHK$ eqv. HK$ %

China Mobile 88.96 89.55 (0.66)Petrochina 5.20 5.23 (0.58)HSBC 59.88 60.25 (0.62)China Life 24.94 25.15 (0.83)Sinopec Corp 4.53 4.56 (0.64)Cheung Kong 100.37 101.80 (1.41)CNOOC 8.30 8.42 (1.41)China Telecom 3.54 3.58 (1.04)Sun Hung Kai 93.86 94.60 (0.79)China Unicom 9.08 9.16 (0.92)

Implied HK cls Chg ptHSI 21,786 21,804 (18)H-share Index 9,546 9,559 (13)(Note: ADRs account for 31.6% weighting of HSI, 19.8% of H-share Index) Source: Bloomberg

Equity Research

Market Report VIEWPOINTS EXPRESS 10 December 2015

Asset Allocation in 2016 Policy divergence as a key driver Policy divergence between key central banks is becoming obvious as we head into 2016, which would be a key driver in asset allocation in our view. Higher USD rates and USD strength would mean persisting pressure for commodities and emerging markets. Global bond market could also face an unfavourable backdrop amid higher USD rates, although some high-yield names could be more resilient. Equities however could shrug off the impact as robust growth in advance economies and continued easing by ECB and BoJ lending supports. Reduced volatility in A shares and a receded concern over a China hard landing would also lay a solid ground for global equities. China Internet Advertising Industry Precise Marketing and Programmatic Buying We reviewed China Internet advertising industry, which continued steady growth in 3Q15 with market size of Rmb 55.86 bn and growth rate of 37.9% YoY. We observe two trends of the market: 1) Precise marketing. Internet giants are integrating the resources including traffic, product matrix and technology to provide precise marketing solutions based on big data. We like Tencent, Alibaba and Cheetah Mobile’s strategies and progress. 2) Programmatic buying. IPINYOU is the biggest player with ~60% market share in this rapid growing area. We believe its PDB has the potential to see rapid growth due to its practicality and better advertising effect. TMT Sector TMT Daily Update HIGHLIGHTS: WeChat Plans To Invest $3.4M In Early-Stage African Startups Qihoo 360 President to Buy Qihoo's Enterprise Security Business Taiwanese Chip Maker TSMC to Invest USD 3 Bln in Nanjing Plant Google set for return to mainland Yahoo Abandons Plans To Spinoff $31B Alibaba Stake

VIEWPOINTS EXPRESS - 10 December 2015 2

Equity Research

Asset Allocation in 2016 Policy divergence as a key driver

Policy divergence between key central banks is becoming obvious as we head into 2016, which would be a key driver in asset allocation in our view. Higher USD rates and USD strength would mean persisting pressure for commodities and emerging markets. Global bond market could also face an unfavourable backdrop amid higher USD rates, although some high-yield names could be more resilient. Equities however could shrug off the impact as robust growth in advance economies and continued easing by ECB and BoJ lending supports. Reduced volatility in A shares and a receded concern over a China hard landing would also lay a solid ground for global equities.

Advance market equities outperforming in 2015. Global capital markets have experienced a bumpy year in 2015 as threat of Grexit, expectation of a Fed rate hike and concern over a China hard landing all added to the volatility. The USD strength meanwhile has led to an accelerated outflow from emerging markets, which caused benchmark index in Brazil to fall over 30% on a year-to-date basis. The advance markets, in general, have outperformed with the NASDAQ Index up over 7% so far, but the Dow Jones Index is likely to close the year flat following six years of consecutive gains. Benchmark indexes of Germany and France are little changed from their levels at the beginning of the year.

A similar story in bond market. This diverge performance between advance and emerging markets also exists in bond market during 2015. Overall, the USD-denominated bonds were supported by the delay in rate hike by the Federal Reserve. The high-grade bonds, in particular, have experienced a strong run between June and October 2015 as global equity market volatility led to a flight to safety. Although the market has retreated recently as expectation of a US rate hike renewed, the high-grade USD corporate bonds are still up over 1% on a year-to-date basis. Non-USD high-yield bonds however have extended their losses since mid-2014, falling by near 7%. Performance of emerging market bonds was even worse as local government bonds of the Latin American countries fell over 15%.

USD corporate bond index High-yield bonds (USD and non-USD)

130

132

134

136

138

140

142

144

146

148

115

117

119

121

123

125

127

129

131

Jan 14 Apr 14 Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 Oct 15

USD Corporate Bonds (AA/AAA-rated) (LHS)USD Corporate Bonds (BBB-rated) (RHS)

120

125

130

135

140

145

150

155

160


USD HY Corpore Bonds Non-USD HY Corporate Bonds

Source: Bloomberg Source: Bloomberg

10 December 2015

Angus To, CFA(852) 2683 3227

[email protected]


Equity Research

A look a fund flows. The diverge performance between advance and emerging markets is best reflected in flows of funds. Year-to-date, developed market equity funds have attracted USD 103.2bn of inflow while USD 67.9bn flowed out of emerging market equity funds based on data compiled by EPFR Global. Inflow to developed market bond funds was slightly higher as they attracted USD 107.3bn while USD 22.6bn flowed out from emerging market bonds. On aggregate, global equity funds attracted USD 35.3bn while bond funds attracted USD 84.6bn. The flight to safety as a result of an increased uncertainty is a factor driving funds to advance markets during 2015 in our view.

Global equity funds flows Global bond funds flows

(80,000)

(60,000)

(40,000)

(20,000)

0

20,000

40,000

60,000

80,000

100,000

120,000

All Developed Markets All Emerging Markets

USD mn

(40,000)

(20,000)

0

20,000

40,000

60,000

80,000

100,000

120,000

All Developed Markets All Emerging Markets

USD mn

Source: EPFR Global, data as of 2 December 2015 Source: EPFR Global, data as of 2 December 2015

Policy divergence to drive asset allocation in 2016. As the Fed set to raise rates for the first time in near 10 years at the time when the ECB and BoJ continuing to ease policies, policy divergence would be a key driver in global asset allocation as we head into 2016. A more diverge performance in asset classes could be expected. As yield differentials between USD, EUR and JPY widen, the USD strength is expected to remain in place although a period of correction could follow after the Fed hikes. This relative strength in USD would remain a key drag on global commodities. Meanwhile, industrial demand is not expected to pick up as China continues its transformation into a service-oriented economy. These place commodity prices under an unfavourable macro backdrop in 2016. However, as they are already at multi-year low, some upside surprises could be possible. Gold prices meanwhile could experience some upswings in periods of heightened geographical risk, but this should not undermine the backdrop of a strong USD.

USD index CRB commodity index

75

80

85

90

95

100

105


195

215

235

255

275

295

315

335


Source: Bloomberg Source: Bloomberg


Equity Research

Preferring high-yield to high-grade bonds. Higher USD rates would lay out an unfavourable backdrop for USD bonds as risk-free rates rise. As some funds could switch out from bonds into equities, we expect a generally weaker performance for bonds in 2016. However, high-yield bonds could outperform the high-grade bonds given their lower sensitivity to higher interest rates. They could also benefit from a higher risk appetite as a result of the sound economic fundamentals, which generally accompanied with tightening cycles. We therefore expect a more resilient performance for high-yield bonds. European bonds could stand out to outperform too with an extended period of quantitative easing by the ECB. Still, pressure on emerging markets would stay acute as capital outflow persists and their currencies remain under pressure amid a strong USD.

Chinese bonds to face a year of two halves. Expectation of more policy easing by the PBoC would also support the bull-run in Chinese bonds to extend into 1H 2016. Both onshore and offshore markets are set to benefit by further easing from the central bank. However, we would turn more cautious going into 2H 2016 as room for policy easing gradually diminishes. Higher fiscal deficit and surge in bond supply would then weigh on the market and could put a pause to the bull-run in onshore Chinese bonds. Higher credit risk could also weigh on as more default cases emerge, which is an unfavourable development for lower-rated name. However, we are more positive on offshore Chinese bonds. Despite a recent strong run, offshore bond yields are still higher than the onshore bonds, which could attract some buying as the two markets integrate. The opening of the onshore interbank bond market and more Panda bond issuances would promote convergence between the onshore and offshore markets in our view. The Rmb’s inclusion to the SDR basket is another positive factor offshore market as it adds to the global demand for Rmb assets; we believe the impact would be felt gradually. In the USD universe, we still like property names as their credit positions are improving on higher home sales. They also set to benefit from the authorities’ pushes to ease inventories. Lower risk premium could more than offset the impact of rising USD rates.

Chinese onshore bond performance Offshore Rmb bonds

100

102

104

106

108

110

112

94

96

98

100

102

104

106


AAA (LHS) AA- (RHS)

105

106

107

108

109

110

111

112

113

114

115

Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15

Source: Wind Source: Bloomberg

Reduced volatility in A shares bodes well for global market. Among major asset classes, we are more positive on equities. The boom and bust of A shares in 2015 has added to the global market volatility, but we believe this is unlikely to repeat in 2016 as the Chinese authorities now implementing more stringent control on leveraged trading. Balance of margin financing and


Equity Research

securities lending in A shares market now stands at less than Rmb 1.2tn, which is well below the peak of over Rmb 2.2tn in June before the market rout, but the authorities have already started to control risk through some pre-emptive measures. We believe a reduced volatility in A shares should pave way for a calmer market sentiment and bode well for global market stability. Expectation of more policy easing, capital market reform as well as further integration with the world are the additional rationales supporting our view for a more steady A share market going into 2016 after a bumpy year in 2015.

A generally positive view on equities. Still, global market may set for a brief period of unrest as the US Federal Reserve set to deliver its first rate hike in near ten years. However, calmness would return as global liquidity is remaining ample, as supported by the continued quantitative easing by ECB and BoJ. Equity market would also be supported by the sound economic fundamentals which are rationales behind impending rate hikes from the Fed. We also expect some funds to shift out from bonds and move into equities, which is another factor supporting our positive view on global equities in 2016. History actually suggests that US equities tend to rise in past hiking cycles European equities in particular would outperform the US equities in our view as we see a larger room of marginal improvement in the economy, as supported by an ultra-loose policy which is expected to last at least until 1Q 2017. However, as outflow pressure persisting and commodity prices staying at bay, we would remain cautious on emerging markets.

Margin trading and securities lending in A shares US equities tend to rise in rate hike cycle

5,0007,0009,000

11,00013,00015,00017,00019,00021,00023,00025,000

Jan15

Feb15

Mar15

Apr15

May15

Jun15

Jul15

Aug15

Sep15

Oct15

Nov15

Dec15

Rmb 100mn

0

1

2

3

4

5

6

7

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1993 1995 1997 1999 2001 2003 2005 2007

Dow Jones Index (LHS) Fed fund rate (RHS)

Source: Wind Source: Bloomberg


Equity Research

China Internet Advertising Industry Precise Marketing and Programmatic Buying We reviewed China Internet advertising industry, which continued steady growth in 3Q15 with market size of Rmb 55.86 bn and growth rate of 37.9% YoY. We observe two trends of the market: 1) Precise marketing. Internet giants are integrating the resources including traffic, product matrix and technology to provide precise marketing solutions based on big data. We like Tencent, Alibaba and Cheetah Mobile’s strategies and progress. 2) Programmatic buying. IPINYOU is the biggest player with ~60% market share in this rapid growing area. We believe its PDB has the potential to see rapid growth due to its practicality and better advertising effect.

Overview: China Internet advertising market maintains steady growth. China Internet advertising market is stepping into mature stage with stable growth rates for quarters. In 3Q15, the market size reached Rmb55.86 bn, up 37.9% YoY and 12.1% QoQ, according to iResearch. Despite the negative impact of soft macro, we believe Internet advertising market can keep steady growth as one of the primary advertising channels. The top 3 ad formats in terms of market share are search engine ad (34.8%), e-commerce ad (25.4%) and brand ad (15.8%). The top 3 ad formats in terms of growth rate are classified ad (64.2% YoY), others (mainly news feed ad, 61.6% YoY) and e-commerce ad (59.5% YoY).

Trend I: Precise marketing based on big data analysis. We observe a clear trend of precise marketing, especially for those Internet giants with huge traffic, enriched product matrix and latest technology. Tencent (0700.HK, TP HK$182) launched “Brand Commerce” (品商) marketing platform together with JD.com (JD.US) to provide enhanced precise marketing solutions to advertisers based on Tencent’s social behavioral data and JD.com’s purchasing data. Alibaba (BABA.US) launched “Da Mo Jian” (达摩剑) marketing platform with advantages in e-commerce data, comprehensive layout and closed-loop. Baidu (BIDU.US)’s O2O strategy also targets precise marketing which aims to connect people with the services they need, which, in our view, is a big upgrade of its search engine ad. The other players include Sohu (SOHU.US), Cheetah Mobile (CMCM.US), Soufun (SFUN.US), Autohome (ATHM.US), etc.

Trend II: Programmatic buying continued rapid growth. Programmatic buying (程序化购买) is in the stage of rapid growth because of the rise of RTB (Real time bidding) market, big advertisers’ acceptance, and the maturity of mobile DSP (Demand side platform). The programmatic buying market size is expected to reach Rmb18.76 bn in 2016 after years of growth rate over 100%. The programmatic buying market tends to have one big player with most market share because 1) a good DSP must have access to all mainstream Ad Exchange platform; 2) it needs precise Audience Targeting based on long-term user data accumulation; 3) it also needs core algorithms to match the advertisers’ demand and targeted users, which can be improved according to feedback. IPINYOU (品友互动) is the largest player with ~60% market share in 2014, according to Analysys. Moreover, we believe that IPINYOU’s PDB (Programmatic direct buying, 私有程序化购买) has the potential to see solid growth in near term due to its exclusive occupation of media resources bought by advertisers and better advertising effect.

10 December 2015

Jianpeng Yu (852) 2683 3212

[email protected] Sector Internet Price performance - Tencent

0102030405060708090

020406080

100120140160180

12/14 02/15 04/15 06/15 08/15 10/15 12/15Volume (RHS) Tencent (LHS)HSI (rebased) (LHS)

HK$ mn

% 1m 3m 6m700.HK 0.2 17.2 (1.6)HSI (2.7) 1.1 (18.3) Price performance - Alibaba

020406080100120140

020406080

100120140

12/14 02/15 04/15 06/15 08/15 10/15 12/15Volume (RHS) Alibaba (LHS)

NASDAQ (rebased) (LHS)

US$ mn

% 1m 3m 6mBABA.US 2.5 30.3 (4.7)NASDAQ (1.4) 5.6 0.2 Price performance - Baidu.com

0

5

10

15

20

25

30

0

50

100

150

200

250

300

12/14 02/15 04/15 06/15 08/15 10/15 12/15Volume (RHS) Baidu.com (LHS)


US$ mn

% 1m 3m 6mBIDU.US 3.3 33.5 (1.0)NASDAQ (1.4) 5.6 0.2 Price performance - Cheetah Mobile

0.0

1.0

2.0

3.0

4.0

5.0

6.0

0

8

16

24

32

40

48

12/14 03/15 06/15 09/15Volume (RHS) Cheetah Mobile (LHS)


US$ mn

% 1m 3m 6mCMCM.US (8.9) 1.6 (47.2)NASDAQ (1.4) 5.6 0.2 Source: HKEx, Bloomberg, Company data


Equity Research

Exhibit: 4Q13-3Q15 China Internet advertising market size

25.0%

-22.6%

30.8%

11.7%

22.2%

-22.5%

29.8%

12.1%

55.4%

37.7%42.6% 41.5%

38.2% 38.4% 37.3% 37.9%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

0

10

20

30

40

50

60

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

Market size (LHS) QoQ (RHS) YoY (RHS)Rmb bn

Source: iResearch, ICBCI

Exhibit: 4Q13-3Q15 China Internet ad format market share

28.6%36.7% 35.7% 35.5% 30.3% 36.1% 34.8% 34.8%

32.6% 21.5% 23.6% 21.9% 33.6% 23.8% 26.1% 25.4%

19.6% 18.4% 17.8% 19.7%15.9% 16.9% 16.5% 15.8%

7.0%7.8% 8.8% 8.6% 7.0% 8.3% 8.5% 8.8%

5.7% 8.2% 7.7% 7.8% 7.5% 8.1% 8.3% 9.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

Search engine E-commerce Brand Video Rich media

Classified Link Email Others

Source: iResearch, ICBCI

Exhibit: 3Q15 China Internet ad operator market share

Baidu31.1%

Alibaba21.0%Tencent

7.7%Sohu3.9%

Google China3.6%

Qihu3603.4%

Youku Tudou2.4%

Sina2.1%

Cheetah Mobile1.5%

Soufun1.4%

Leshi1.1%

Autohome1.0%

Netease1.0%

Phoenix New Media0.6%

Others18.2%

Source: Analysys, ICBCI


Equity Research

Exhibit: 2012-2016 China programmatic buying market size

0.812.17

5.23

11.64

18.76167.9%

141.0%

122.6%

61.2%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

0

2

4

6

8

10

12

14

16

18

20

2012 2013 2014 2015 2016

Market size (LHS) YoY (RHS)Rmb bn

Source: Analysys, ICBCI Exhibit: 2014 China programmatic buying market share

IPINYOU59.8%

AdChina12.0%

Yoyi9.5%

Google DBM7.0%

Hdt2.5%

Others9.2%

Source: Analysys, ICBCI


Equity Research

Exhibit: Demand side platform and supply side platform

Source: Internet, ICBCI Exhibit: Programmatic buying procedure

Source: Internet, ICBCI


Equity Research

Comp Table US listed companies

MktCap EV Last Price Price Performance

(%) 52-Wk Range

(USD) Adjusted EPS

(USD) PE(x)

EV/Sales (x)

GM(%)

Ticker (USD, mn) (USD, mn) (USD) 1Mon 3Mon 6Mon YTD High Low 14A 15E 16E 14A 15E 16E 14A 15E 16E 14A 15E 16EBaidu BIDU US 70,861 66,275 205.0 5.67 36.58 1.21 -10.07 237.4 100.0 6.06 5.50 7.04 37.92 37.45 29.23 9.54 6.44 5.14 61.5 59.4 59.3Sohu SOHU US 1,912 1,372 49.5 -7.04 12.63 -26.67 -6.96 71.8 40.2 -3.45 -0.49 0.54 -- -- 91.63 1.10 0.71 0.65 59.0 55.2 55.7Sina SINA US 2,963 2,187 50.8 -0.92 33.53 -10.25 35.74 61.3 31.9 2.94 0.85 1.49 47.96 60.09 34.20 1.82 2.55 2.22 62.2 61.7 63.0Bitauto BITA US 1,533 1,024 24.2 -16.66 -7.03 -59.67 -65.62 95.0 22.0 1.65 0.81 1.72 42.72 30.16 14.16 7.60 1.65 1.26 75.7 67.4 67.6Autohome ATHM US 3,460 3,228 31.3 -2.65 5.39 -30.83 -13.97 56.6 28.0 0.67 1.41 1.70 54.55 22.33 18.48 11.21 6.15 4.67 82.1 82.9 82.2Qihoo 360 QIHU US 9,171 9,658 71.1 18.12 57.17 15.81 24.21 72.7 41.6 1.50 3.44 4.55 33.60 20.70 15.62 5.22 5.01 3.73 78.0 77.4 76.8Youku YOKU US 5,295 4,378 27.0 2.50 65.32 -8.68 51.77 31.5 11.9 -0.72 -1.00 -0.75 -- -- -- 3.48 4.39 3.14 19.5 12.6 18.1Soufun SFUN US 3,059 3,110 7.1 -0.14 27.11 -17.39 -0.91 10.0 4.7 0.59 0.01 0.05 13.79 1416.00 136.15 4.02 3.57 2.54 79.3 40.8 34.9Vipshop VIPS US 9,417 9,086 16.2 -22.50 -0.37 -31.46 -17.14 30.7 12.0 0.23 0.54 0.73 85.17 29.99 22.12 2.77 1.51 1.09 24.9 24.9 25.0Ctrip CTRP US 20,149 21,336 53.0 8.21 60.67 41.90 132.88 57.4 20.4 0.13 1.18 0.77 178.43 44.75 69.16 5.07 12.52 8.75 71.4 71.5 72.758.com WUBA US 8,690 8,481 62.4 15.23 40.30 -23.25 50.23 83.7 37.2 0.26 -2.05 -0.57 159.81 -- -- 11.22 12.20 6.84 94.8 93.5 93.0Cheetah Mobile CMCM US 2,496 2,323 17.6 -6.92 3.83 -46.08 16.53 36.6 13.3 0.10 0.40 1.07 151.73 44.41 16.52 8.38 4.06 2.34 77.1 74.4 71.8Sungy Mobile GOMO US 152 -41 4.8 -- -- -- -- 5.6 3.3 -1.44 -- -- -- -- -- 2.13 -- -- 63.7 -- --Qunar QUNR US 6,770 6,599 51.4 27.85 67.71 5.85 80.69 54.2 23.6 -2.53 -2.67 -0.43 -- -- -- 11.48 10.50 6.08 74.1 68.4 66.1Tuniu TOUR US 1,519 853 15.5 7.86 26.63 -16.89 29.17 20.9 10.5 -2.13 -2.03 -1.73 -- -- -- -- 0.72 0.41 6.4 5.4 6.9Alibaba BABA US 208,917 201,237 84.4 3.69 31.76 -3.65 -18.82 111.2 57.2 1.64 2.18 2.63 -- 40.01 32.14 -- 17.06 13.18 74.5 69.2 68.3Weibo WB US 3,881 3,535 18.8 5.39 59.02 -2.64 31.88 20.7 8.8 -0.34 0.27 0.53 -- 70.07 35.37 2.09 7.42 5.55 75.0 70.4 70.7JD.com JD US 44,110 41,023 31.9 10.88 29.27 -12.46 37.81 38.0 21.6 -1.74 -0.09 0.10 -- -- 309.95 1.47 1.48 1.06 11.6 13.1 14.1Jumei JMEI US 1,298 901 9.1 -9.03 -12.54 -59.47 -33.41 28.2 7.5 0.45 0.25 0.46 30.43 36.57 19.76 0.90 0.77 0.57 39.5 28.1 28.0Perfect World PWRD US -- -- -- -- -- -- -- 20.2 14.8 1.63 2.29 2.67 -- -- -- -- -- -- 71.0 -- --NetEase NTES US 23,596 19,838 180.5 21.95 58.59 26.09 84.55 181.3 94.2 5.85 8.38 10.07 16.95 21.65 18.03 5.11 5.77 4.03 72.2 61.2 57.4Shanda Games GAME US 1,884 1,745 7.0 -- -- -- -- 7.0 4.9 0.62 -- -- -- -- -- -- -- -- 74.7 -- --Changyou CYOU US 1,104 788 20.9 -2.70 10.74 -33.22 -23.50 35.3 17.0 0.58 3.85 2.76 47.17 5.44 7.59 1.93 1.04 1.11 73.3 70.3 66.7iDreamSky DSKY US 552 452 12.7 5.57 20.28 20.51 -25.70 18.5 6.6 -7.36 0.87 1.13 -- 14.75 11.39 3.79 1.75 1.36 41.0 39.4 40.3Facebook FB US 301,153 285,445 106.5 0.00 17.75 32.01 36.49 110.7 72.0 1.10 2.17 2.86 70.93 49.16 37.18 16.63 16.35 11.85 82.7 84.9 84.8Twitter TWTR US 17,067 15,180 25.0 -7.75 -8.06 -30.35 -30.33 53.5 21.0 -0.96 0.35 0.55 -- 71.20 45.19 14.99 6.85 4.87 68.2 69.9 70.2Google GOOGL US 528,346 455,997 775.1 2.70 20.47 42.97 46.07 793.0 490.9 20.22 28.96 34.26 26.25 26.77 22.63 4.53 7.56 6.48 61.1 78.8 78.8

HK listed companies

MktCap EV Last Price Price Performance

(%) 52-Wk Range

(HKD) Adjusted EPS

(HKD) PE(x)

EV/Sales (x)

GM(%)

Ticker (HKD, mn) (HKD, mn) (HKD) 1Mon 3Mon 6Mon YTD High Low 14A 15E 16E 14A 15E 16E 14A 15E 16E 14A 15E 16ETencent 700 HK 1,417,040 1,398,938 150.7 -0.86 12.80 -2.77 34.25 171.0 104.5 2.86 3.99 5.15 34.92 37.95 29.39 10.49 11.63 9.07 60.9 59.1 58.3Kingsoft 3888 HK 25,112 21,325 19.3 1.58 19.90 -27.65 25.72 35.0 14.0 0.81 0.47 0.95 18.68 41.08 20.44 3.56 3.20 2.10 82.4 77.0 75.8NetDragon 777 HK 12,367 8,842 24.9 -5.33 37.60 -21.05 83.89 42.1 11.9 0.47 0.10 0.39 31.45 242.33 64.57 2.60 6.19 4.47 89.3 85.5 82.7Forgame 484 HK 1,836 300 13.1 -5.48 -6.16 -43.17 -10.88 29.0 10.2 -0.35 -0.09 0.35 -- -- 37.44 -- 0.39 0.30 66.1 37.9 34.9Igg 799 HK 4,370 3,034 3.1 -1.57 4.75 -40.23 19.56 9.2 2.5 0.34 0.36 0.46 7.29 8.78 6.84 1.50 1.72 1.45 71.2 69.3 69.7Boyaa 434 HK 2,456 908 3.2 -8.29 0.31 -50.99 -43.06 10.9 2.9 0.47 0.39 0.47 10.83 8.32 6.84 2.18 0.83 0.71 60.1 51.7 53.3Ourgame 6899 HK 4,031 3,827 5.1 18.75 35.00 -25.65 96.06 9.5 2.3 0.18 0.26 0.37 12.97 19.96 13.85 -- 4.31 3.10 61.9 55.5 55.3Cogobuy 400 HK 12,873 14,084 9.5 2.61 24.18 -18.53 122.88 16.8 3.2 0.21 0.33 0.47 20.20 28.59 20.29 0.71 1.21 0.92 7.8 8.2 8.5PC Group 543 HK 2,794 2,480 2.5 -7.49 10.76 -31.58 -28.95 5.2 1.8 0.25 0.22 0.32 14.49 11.37 7.87 -- 1.72 1.42 67.3 65.9 66.1Tian Ge 1980 HK 3,817 2,021 3.0 -7.19 -0.34 -46.96 -26.04 7.7 2.3 0.14 0.24 0.27 -- 12.62 11.19 4.07 2.47 2.35 84.8 80.0 78.3Alibaba Pictures 1060 HK 46,432 28,900 1.8 -14.02 0.55 -43.56 32.37 4.9 1.2 -0.02 -- -- -- -- -- 143.06 -- -- -49.4 -- --New Media 708 HK 18,144 17,567 2.1 44.83 52.17 218.66 491.55 2.6 0.2 0.00 -- -- 21.09 -- -- 0.31 -- -- 34.2 -- --

Source: Bloomberg, ICBCI


Equity Research

TMT Sector TMT Daily Update

HIGHLIGHTS: WeChat Plans To Invest $3.4M In Early-Stage African Startups Qihoo 360 President to Buy Qihoo's Enterprise Security Business Taiwanese Chip Maker TSMC to Invest USD 3 Bln in Nanjing Plant Google set for return to mainland Yahoo Abandons Plans To Spinoff $31B Alibaba Stake

WeChat Plans To Invest $3.4M In Early-Stage African Startups

Wechat will invest 50 million rand (about $3.4 million USD) in African startups. WeChat said in a blog post that will work with Cape Town tech strategy firm Batstone to find promising early-stage companies.

Qihoo 360 President to Buy Qihoo's Enterprise Security Business

Qi Xiangdong, president of Qihoo 360 (QIHU.US), is reportedly considering a USD 300 mln management buyout (MBO) of Qihoo 360's enterprise security business. Enterprise security accounts for only about 4% of Qihoo's total operating revenue.

Taiwanese Chip Maker TSMC to Invest USD 3 Bln in Nanjing Plant

Taiwan Semiconductor Manufacturing (TSMC) recently confirmed that it will build a 12-inch wafer manufacturing plant in Nanjing. TSMC will invest approximately USD 3 bln in the facility, including transfers of existing equipment and IC industry incentives provided by government sources on the mainland.

Google set for return to mainland

Google (GOOGL.US) will offer online search services via a facility it has set up in the Shanghai Free Trade Zone after its return to the Chinese mainland. The Google Play Store is expected to return to the Chinese mainland “as early as next year,” targeting millions of Chinese consumers using Android phones.

Yahoo Abandons Plans To Spinoff $31B Alibaba Stake

Yahoo (YHOO.US) has thrown out plans to spinoff their share in Alibaba (BABA.US), worth about $31 billion USD. The U.S. company will now consider selling its core business as an alternative to the spinoff, including their search and display advertising services.

10 December 2015

Jianpeng Yu(852) 2683 3212

[email protected]

VIEWPOINTS EXPRESS - 10 December 2015 i

Equity Research

Major equity indices, commodity prices, currencies, interest ratesName Price Price Price Value Chg ---- Change (%) ---- Trailing Forward Historic Earnings

9 Dec High Low 1d 1d 5d 1m YTD PER (x) PER (x) PBR (x) Yld (%)HK EquitiesHSI 21,804 21,872 21,756 -101 (0.46) (3.01) (4.06) (7.63) 9.58 10.91 1.18 10.43 -- HSI futures, Dec15 21,779 21,850 21,552 Prem: -25H-share Index 9,559 9,626 9,552 -102 (1.06) (4.89) (9.02) (20.24) 7.08 7.23 0.97 14.11 -- H-share futures, Dec15 9,574 9,645 9,494 Prem: 15 -HK$mn/% for below 3 series-HK mainboard turnover, HK$mn 65,986 76,267 79,189 79,539 43,938 HSI stocks to market turnover, % 29.7 32.3 32.3 29.1 28.8CBBC + warrants to mkt t/o, % 32.6 23.0 23.9 26.3 14.1China EquitiesShanghai Composite Index 3,472.4 3,495.7 3,454.9 2.37 0.07 (1.82) (4.78) 7.35 18.23 14.89 2.00 5.49SzSE Constituent Stock Index 12,179.8 12,257.6 12,091.8 14.86 0.12 (0.05) (2.20) 10.58 36.62 27.83 3.86 2.73Shanghai A-share Index 3,635.6 3,659.9 3,617.2 2.28 0.06 (1.83) (4.81) 7.26 18.16 14.83 2.00 5.51Shenzhen A-share Index 2,316.3 2,333.7 2,298.4 (7.59) (0.33) 1.12 1.01 56.67 51.98 35.46 4.56 1.92Shanghai B-share Index 388.2 390.4 381.0 5.62 1.47 1.22 3.74 33.51 31.71 24.03 1.88 3.15Shenzhen B-share Index 1,269.7 1,277.1 1,248.0 19.81 1.58 3.89 6.62 23.41 22.51 16.36 2.39 4.44Asian/Pacific EquitiesAustralia ASX200 Index 5,080.5 5,119.5 5,069.6 (28.15) (0.55) (3.38) (0.76) (6.11) 18.93 15.33 1.79 5.28Taiwan TWSE Index 8,229.6 8,343.4 8,229.6 (114.24) (1.37) (2.69) (4.78) (11.58) 13.11 12.68 1.46 7.63Singapore STI Index 2,861.2 2,874.2 2,860.0 (14.84) (0.52) (0.78) (4.55) (14.98) 13.25 12.56 1.14 7.55Thailand SET Index 1,297.8 1,316.2 1,294.4 (9.16) (0.70) (3.11) (7.47) (13.34) 16.84 14.68 1.73 5.94Malaysia KLCI Index 1,659.4 1,668.5 1,659.4 (9.88) (0.59) (1.04) (1.59) (5.79) 17.58 16.36 1.75 5.69Nikkei 225 19,301.1 19,475.4 19,260.1 (191.53) (0.98) (3.20) (1.74) 10.60 20.11 18.76 1.72 4.97Korea Composite Index 1,948.2 1,956.7 1,944.8 (0.80) (0.04) (3.04) (3.82) 1.70 na na 0.93 na India Sensex 30 25,036.1 25,317.0 25,012.2 (274.28) (1.08) (4.14) (4.16) (8.96) 19.88 16.87 2.59 5.03US/European EquitiesDow Jones Index 17,492.3 17,767.7 17,403.5 (75.70) (0.43) (1.34) (1.34) (1.86) 15.63 15.86 3.04 6.40S&P 500 Index 2,047.6 2,080.3 2,036.5 (15.97) (0.77) (1.53) (1.49) (0.55) 18.30 17.34 2.76 5.46NASDAQ Index 5,022.9 5,106.4 5,000.1 (75.38) (1.48) (1.96) (1.42) 6.06 30.73 22.80 3.78 3.25UK FTSE 100 Index 6,126.7 6,175.8 6,101.2 (8.54) (0.14) (4.58) (2.68) (6.69) 27.87 15.37 1.74 3.59Germany DAX Index 10,592.5 10,719.7 10,554.5 (81.11) (0.76) (5.34) (2.06) 8.03 22.84 13.04 1.68 4.38France CAC 40 INDEX 4,637.5 4,714.6 4,619.5 (44.41) (0.95) (5.47) (5.57) 8.54 20.95 15.22 1.42 4.77Precious Metals ($/troy oz)Gold spot 1,077.3 1,085.6 1,069.5 3.01 0.28 2.23 (1.19) (9.31)Silver spot 14.16 14.36 14.13 (0.01) (0.05) 1.12 (2.91) (9.81)Platinum spot 857.5 866.2 846.8 9.75 1.15 3.19 (6.12) (29.01)Palladium spot 551.1 556.2 544.4 2.40 0.44 4.56 (7.93) (30.92)Industrial Metals ($/metric ton)LME Copper 3-mth future 4,588.0 4,601.0 4,524.5 0.00 0.00 0.55 (7.57) (27.17)LME Aluminium 3-mth future 1,477.0 1,495.0 1,462.0 0.00 0.00 (0.57) (2.31) (20.27)LME Nickel 3-mth future 8,695.0 8,790.0 8,535.0 0.00 0.00 (3.17) (9.24) (42.61)LME Zinc 3-mth future 1,531.0 1,536.0 1,500.5 0.00 0.00 (1.16) (6.87) (29.71)Oil, Gas and Coal FuturesWTI crude, Jan16, $/barrel 37.16 38.99 36.87 (0.35) (0.93) (6.96) (17.64) (38.04)Heating oil, Jan16, cents/gallon 123.89 127.49 122.77 (2.03) (1.61) (5.06) (17.32) (35.82)Natural gas, Jan16, $/MMBtu 2.062 2.118 2.048 (0.01) (0.39) (4.76) (15.80) (41.60)Gasoline RBOB, Future, cents/gallon 123.17 125.34 120.02 2.81 2.33 (4.75) (10.13) (14.19)Coal, McCloskey, fob, Jan16, $/ton 45.79 -- -- 0.23 0.50 (1.34) (3.52) (27.19)Coal, McCloskey, cif, Jan16, $/ton 45.11 -- -- 0.44 0.99 (1.61) (4.65) (32.67)Commodity Composite FuturesReuters/Jefferies CRB futures, spot 177.56 180.05 176.49 0.17 0.09 (1.82) (6.16) (22.79)Shipping FreightsBaltic Dry Index 551.00 -- -- 0.00 0.00 (6.61) (12.26) (29.54)CurrenciesCNY 6.4277 6.4281 6.4155 6.4179 6.3987 6.3625 6.2055Rmb NDF 12-mth 2919.9277 3013.5581 2696.4255 2836.4179 2499.9087 1891.3625 2212.1055CNH 6.5068 6.5231 6.4857 6.4881 6.4475 6.3913 6.2165HKD 7.7502 7.7508 7.7500 7.7503 7.7505 7.7519 7.7551USD Trade Wgt Index 93.5290 -- -- 94.0411 94.8734 93.8732 85.1292Euro 1.1025 1.1043 1.0879 1.0892 1.0615 1.0752 1.2098GBP 1.5181 1.5192 1.5005 1.5008 1.4951 1.5115 1.5577Yen 121.4400 123.0500 121.0800 122.9300 123.2400 123.1800 119.7800AUD 0.7229 0.7246 0.7172 0.7215 0.7309 0.7047 0.8175NZD 0.6720 0.6759 0.6582 0.6647 0.6640 0.6533 0.7797CHF 0.9832 0.9945 0.9820 0.9924 1.0183 1.0036 0.9943CAD 1.3580 1.3620 1.3517 1.3585 1.3343 1.3287 1.1621Interest Rates (%)HIBOR 3-mth, HKD 0.388 -- -- 0.387 0.381 0.380 0.381LIBOR 3-mth, USD 0.487 -- -- 0.487 0.436 0.356 0.256SHIBOR 3-mth, Rmb 3.047 -- -- 3.051 3.042 3.033 5.135Bond Yields (%)US treasury yield, 3-mth 0.249 0.280 0.239 0.270 0.203 0.076 0.036US treasury yield, 2-yr 0.923 0.949 0.911 0.929 0.935 0.882 0.665US treasury yield, 10-yr 2.216 2.269 2.195 2.218 2.180 2.344 2.171China treasury yield, 2-yr 2.720 2.720 2.720 2.690 2.770 2.720 3.420China treasury yield, 10-yr 3.060 3.060 3.060 3.050 3.080 3.260 3.650Source: Bloomberg

--------- Price ---------

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VIEWPOINTS EXPRESS - 10 December 2015 ii

Equity Research

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ug7

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ep25

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US, China Treasury Yield

US, 2y US, 10y

China, 2y China 10y

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ug26

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p9

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ct21

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HIBOR, LIBOR, SHIBORSHIBOR 3m (L.S.) HIBOR 3m (R.S.)

$ LIBOR 3m (R.S.)

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un17

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ct21

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HK/China stock markets (Start = 100)HSI H-share Index

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ug26

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p9

Sep

16 S

ep23

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ep7

Oct

14 O

ct21

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ct4

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HK/US stock markets (Start = 100)

HSI Dow

S&P500 NASDAQ

70

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Metals (Start = 100)

Gold spot Copper future, LME Aluminium future, LME

40

60

80

100

120

10 J

un17

Jun

24 J

un1

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8 Ju

l15

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g12

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ug26

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p9

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ep7

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ct21

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Oil, gas, coal (Start = 100)Crude oil Natural gas

Gasoline RBOB Coal, f.o.b.

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10 J

un19

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84

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108

112

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128

132

136

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ov24

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$ Index, Yen, EuroYen per $ (L.S.)

Eur per $100 (R.S.)

$ trade weighted index (R.S.)

VIEWPOINTS EXPRESS - 10 December 2015 iii

Equity Research

HK Listco ADR US closing, as of 9/12/2015 HSI: 21,804 HSCEI: 9,559ADR HK % premium/ ADR HK Avg. 20-day t/o HSI Index pt HSCEI Index pt

ADR HK price price discount (-) turnover turnover ADR HK wgt moved wgt movedStock Code Code (HK$) (HK$) to HK close (HK$mn) (HK$mn) (HK$mn) (HK$mn) (%) (pt) (%) (pt)HSBC HLDGS PLC HSBC 0005 59.879 60.25 -0.62% 782.3 1,399.8 575.9 925.1 9.73 (13.07) 0.00 0.00CHINA MOBILE CHL 0941 88.959 89.55 -0.66% 326.3 1,095.7 296.8 1,390.4 0.00 0.00 0.00 0.00CHINA LIFE-H LFC 2628 24.941 25.15 -0.83% 58.3 724.1 59.6 973.5 2.58 (4.69) 7.34 (5.84)CNOOC CEO 0883 8.301 8.42 -1.41% 219.8 815.1 203.3 714.2 2.08 (6.37) 0.00 0.00PETROCHINA-H PTR 0857 5.200 5.23 -0.58% 90.1 328.0 99.8 613.1 1.52 (1.92) 4.33 (2.39)SHK PPT SUHJY 0016 93.857 94.60 -0.79% 2.8 243.8 1.7 356.1 2.07 (3.54) 0.00 0.00CKH HOLDINGS CKHUY 0001 100.368 101.80 -1.41% 15.0 495.0 23.7 512.9 3.80 (11.65) 0.00 0.00SINOPEC CORP-H SNP 0386 4.531 4.56 -0.64% 46.7 353.1 71.2 499.2 1.53 (2.12) 4.56 (2.78)CHINA SOUTHERN-H ZNH 1055 5.399 5.46 -1.12% 15.8 47.1 13.8 59.2 0.00 0.00 0.00 0.00CLP HOLDINGS CLPHY 0002 64.716 64.30 0.65% 3.1 118.9 1.0 212.6 1.68 2.37 0.00 0.00CHINA UNICOM CHU 0762 9.076 9.16 -0.92% 47.1 516.9 50.0 383.1 0.76 (1.52) 0.00 0.00SWIRE PACIFIC-A SWRAY 0019 84.247 84.80 -0.65% 1.3 41.1 1.3 138.5 0.69 (0.98) 0.00 0.00POWER ASSETS HGKGY 0006 70.064 69.65 0.59% 0.2 136.2 0.5 264.4 1.33 1.73 0.00 0.00BANK EAST ASIA BKEAY 0023 27.281 27.00 1.04% 0.3 55.2 0.0 77.0 0.54 1.22 0.00 0.00ALUMINUM CORP-H ACH 2600 2.334 2.30 1.50% 8.6 29.9 3.8 33.1 0.00 0.00 0.00 0.00CATHAY PAC AIR CPCAY 0293 13.241 13.28 -0.30% 0.3 52.8 0.3 52.7 0.22 (0.14) 0.00 0.00CHINA TELECOM-H CHA 0728 3.543 3.58 -1.04% 6.8 126.5 10.9 214.9 0.00 0.00 1.95 (1.94)YANZHOU COAL-H YZC 1171 3.348 3.43 -2.39% 1.2 21.1 1.6 25.6 0.00 0.00 0.00 0.00HUANENG POWER-H HNP 0902 6.749 6.81 -0.90% 20.0 167.8 19.6 308.8 0.00 0.00 1.13 (0.97)TSINGTAO BREW-H TSGTY 0168 33.699 33.05 1.96% 0.3 39.7 0.2 62.3 0.00 0.00 0.47 0.88SINOPEC SHANG-H SHI 0338 2.765 2.78 -0.53% 1.2 23.2 2.7 46.6 0.00 0.00 0.00 0.00CHINA EAST AIR-H CEA 0670 4.061 4.08 -0.46% 7.3 48.0 8.0 49.1 0.00 0.00 0.00 0.00GUANGSHEN RAIL-H GSH 0525 3.939 3.97 -0.79% 1.0 4.1 2.0 15.3 0.00 0.00 0.00 0.00LENOVO GROUP LNVGY 0992 8.215 8.32 -1.26% 5.6 192.3 5.1 402.9 0.00 0.00 0.00 0.00PCCW LTD PCCWY 0008 4.456 4.55 -2.06% 0.0 18.0 0.1 51.2 0.00 0.00 0.00 0.00SMIC SMI 0981 0.786 0.80 -1.76% 1.8 118.9 2.8 250.7 0.00 0.00 0.00 0.00TECHTRONIC IND TTNDY 0669 29.808 30.00 -0.64% 1.9 92.7 3.7 106.7 0.00 0.00 0.00 0.00US OTC Traded (Not ADR)HKEX HKXCF 0388 204.995 198.30 3.38% 0.0 1,720.6 0.2 943.6 3.11 22.86 0.00 0.00

Total: 31.62 (17.82) 19.78 (13.05)

Source: Bloomberg

VIEWPOINTS EXPRESS - 10 December 2015 iv

Equity Research

H shares dually listed in Shanghai A-share market

Stock Exch Price HKD Price change % A-share A-share price Price change % H/A-shr --- H-share P/E (x) --- H-shr Yld (%) --- P/B (x) --- Code 9 Dec 1d 5d 1m Code RMB HKD 1d 5d 1m disc (%) Rpted Cur Yr Next Yr 12mth Cur Yr Cur Yr Next Yr

LUOYANG GLASS-H 1108 5.45 0.6 (7.0) (3.2) 600876 34.91 42.67 1.1 (4.6) (5.7) (87.2) n/a n/a n/a n/a n/a n/a n/aYANZHOU COAL-H 1171 3.43 (1.7) (5.8) (13.2) 600188 9.31 11.38 0.6 (4.7) (11.2) (69.9) 1.5 1.5 1.4 0.7 20.3 0.37 0.32CHONGQING IRON-H 1053 1.14 (4.2) (8.8) (10.9) 601005 3.09 3.78 0.3 (3.4) (13.7) (69.8) 155.4 -ve E 38.9 n/a 8.9 n/a 0.31NANJING PANDA-H 553 7.28 (0.3) 4.0 2.0 600775 16.95 20.72 (2.5) 2.8 (15.3) (64.9) 425.4 n/a n/a 1.1 n/a 2.64 n/aCHINA OILFIELD-H 2883 7.02 (1.3) (10.0) (17.7) 601808 15.73 19.23 0.6 (3.4) (13.0) (63.5) 6.3 6.0 5.2 8.5 3.3 1.01 0.83CSSC OFFSHORE -H 317 15.94 (1.5) (8.6) (13.8) 600685 35.56 43.47 0.6 (3.1) (14.7) (63.3) 11.8 12.5 11.2 n/a 1.2 2.29 1.80DATANG INTL PO-H 991 2.41 (1.2) (6.2) (14.5) 601991 5.18 6.33 (0.4) (5.3) (10.4) (61.9) 9.4 11.7 9.6 6.7 3.1 0.79 0.67ALUMINUM CORP-H 2600 2.3 (1.3) (8.0) (9.8) 601600 4.9 5.99 0.0 (5.0) (11.7) (61.6) 31.4 17.9 13.6 n/a 1.2 0.49 0.47MAANSHAN IRON-H 323 1.6 (0.6) (3.0) (7.0) 600808 3.18 3.89 0.3 (7.3) (10.4) (58.8) 9.2 16.6 9.2 n/a 2.3 0.37 0.37BEIJING NORTH-H 588 2.58 (0.4) (4.4) 0.0 601588 5.12 6.26 0.8 (6.6) (2.5) (58.8) 6.5 11.1 n/a 2.9 n/a 0.56 n/aCHINA COAL ENE-H 1898 3.04 0.3 (5.0) (15.1) 601898 6 7.33 0.7 (4.8) (12.9) (58.6) 4.4 3.4 2.9 1.0 8.0 0.45 0.40SICHUAN EXP-H 107 2.55 (2.3) (4.1) (8.3) 601107 4.91 6.00 (1.4) (2.0) (5.2) (57.5) 5.6 5.5 5.0 3.9 5.7 0.77 0.70DALIAN PORT PD-H 2880 3.27 0.0 (9.2) 9.4 601880 5.92 7.24 (1.2) (6.0) (11.9) (54.8) 12.2 13.6 12.1 1.5 3.0 0.99 0.92ANHUI EXPRESS-H 995 6.75 0.3 (3.4) (1.2) 600012 12.17 14.88 0.7 (5.0) (4.1) (54.6) 11.6 10.1 9.2 4.3 4.6 1.56 1.43CHINA EAST AIR-H 670 4.08 (3.8) (4.0) (15.5) 600115 7.35 8.98 (2.8) (2.9) (14.9) (54.6) 7.6 9.4 9.3 n/a 0.4 2.46 1.89TIANJIN CAP-H 1065 6.05 0.3 (6.3) (1.1) 600874 10.63 12.99 (3.3) (4.5) (8.3) (53.4) 26.0 27.0 28.3 1.4 1.6 2.05 1.98CHINA RAIL GR-H 390 6.32 (1.4) (5.2) (11.7) 601390 11.03 13.48 (0.4) (5.5) (17.2) (53.1) 14.7 14.4 13.0 1.5 1.3 1.65 1.49ZIJIN MINING-H 2899 2.02 1.0 4.1 (1.9) 601899 3.48 4.25 0.6 (2.0) (8.2) (52.5) 7.5 5.4 4.5 5.0 5.4 1.65 1.27DONGFANG ELECT-H 1072 7.88 (2.6) (3.9) (11.0) 600875 13.4 16.38 (1.8) (3.5) (11.4) (51.9) 5.0 4.0 3.6 1.4 3.0 1.17 0.92JIANGXI COPPER-H 358 8.56 (3.5) (7.1) (17.4) 600362 14.48 17.70 (0.1) (5.5) (6.0) (51.6) 4.4 3.1 3.0 2.9 5.0 0.71 0.60PETROCHINA-H 857 5.23 (1.3) (8.2) (12.2) 601857 8.35 10.21 (0.4) (3.4) (9.6) (48.8) 5.6 5.2 4.9 3.7 8.5 0.83 0.76CITIC BANK-H 998 4.87 (1.4) (3.9) (7.2) 601998 7.5 9.17 0.5 (4.2) (2.1) (46.9) n/a 6.4 6.1 n/a 3.6 n/a 1.10SHENZHEN EXPRE-H 548 6.14 1.5 (4.4) (4.2) 600548 9.1 11.12 0.3 (2.9) 7.6 (44.8) 14.7 14.4 12.5 4.0 3.4 1.26 1.20CHINA SOUTHERN-H 1055 5.46 (4.2) (7.8) (12.8) 600029 7.93 9.69 (3.1) (3.4) (15.2) (43.7) 6.4 8.7 9.5 0.9 0.3 1.64 1.36BAIYUNSHAN PH-H 874 20 (1.0) (2.2) (2.4) 600332 28.48 34.81 (1.8) (0.8) (4.6) (42.6) n/a 40.0 34.4 1.7 0.3 n/a 3.40HUADIAN POWER-H 1071 4.84 (1.6) (6.7) (15.2) 600027 6.77 8.28 (0.1) (4.5) (11.7) (41.5) 158.4 -ve E 79.2 7.0 0.2 1.66 1.62AIR CHINA LTD-H 753 6.12 (3.8) (5.3) (13.7) 601111 8.35 10.21 (3.7) (2.9) (15.3) (40.0) 4.9 7.0 7.2 1.1 2.2 1.56 1.25CHINA RAIL CN-H 1186 10.36 (1.0) (2.6) (11.8) 601186 13.67 16.71 0.1 (5.8) (16.7) (38.0) 24.6 13.1 12.1 1.8 1.9 1.82 1.64HUANENG POWER-H 902 6.81 (1.2) (3.5) (16.2) 600011 8.84 10.81 0.2 (4.5) (10.4) (37.0) 19.9 28.4 22.0 7.0 2.1 1.46 1.43CRRC CORP LTD -H 1766 10.08 (0.8) (3.6) 1.8 601766 13.07 15.98 0.0 (4.7) (13.1) (36.9) 38.5 26.4 21.8 1.5 0.8 5.07 3.63GREAT WALL MOT-H 2333 9.95 5.6 1.5 (1.7) 601633 12.46 15.23 2.2 (2.9) 1.5 (34.7) 8.2 6.7 5.8 1.0 2.9 2.23 1.65CHINA SHENHUA-H 1088 11.94 (1.0) (4.6) (8.7) 601088 14.71 17.98 0.5 (3.3) (9.1) (33.6) 5.1 4.4 3.9 7.7 8.5 0.98 0.83BANK OF CHINA-H 3988 3.36 (1.5) (4.5) (6.1) 601988 4.11 5.02 1.2 (1.7) (1.9) (33.1) 7.0 6.4 5.8 7.1 5.8 1.19 1.06GUANGSHEN RAIL-H 525 3.97 0.5 (1.2) 0.3 601333 4.83 5.90 (1.0) 1.5 (6.2) (32.8) 15.5 12.8 12.7 1.6 3.3 0.95 0.91BANKCOMM-H 3328 5.38 (0.4) (4.1) (6.3) 601328 6.47 7.91 0.5 (2.6) (6.4) (32.0) 6.6 5.5 5.0 6.3 4.2 1.22 1.01MINSHENG BANK-H 1988 7.37 (0.5) (3.2) (7.1) 600016 8.71 10.65 0.1 (2.6) (4.6) (30.8) 9.1 6.8 6.3 3.1 2.2 1.55 1.29CHINA LIFE-H 2628 25.15 (1.6) (7.2) (12.1) 601628 28.14 34.40 1.0 (4.3) (5.7) (26.9) 17.3 20.4 15.7 2.0 1.6 2.79 2.64CCB-H 939 5.21 (1.1) (3.5) (6.8) 601939 5.81 7.10 1.0 (2.5) (2.5) (26.6) 7.6 6.4 5.7 7.2 6.0 1.53 1.32ABC-H 1288 2.92 (1.4) (3.6) (7.6) 601288 3.23 3.95 0.6 (0.3) (3.0) (26.0) 7.2 6.0 5.2 7.8 5.5 1.43 1.23SINOPEC CORP-H 386 4.56 0.2 (6.9) (16.3) 600028 4.89 5.98 (0.4) (3.9) (8.6) (23.7) 4.5 4.2 3.9 5.4 6.1 0.77 0.68CM BANK-H 3968 17.72 (1.0) (5.2) (17.0) 600036 17.39 21.26 (0.2) (2.9) (8.9) (16.6) 11.8 9.3 8.6 4.7 2.4 2.33 1.91TSINGTAO BREW-H 168 33.05 (2.2) (4.1) (9.9) 600600 31.14 38.07 (1.5) (4.3) (11.8) (13.2) 24.0 20.5 17.2 1.7 1.1 3.80 3.26CHINA PACIFIC-H 2601 30.6 (4.4) (8.4) (7.3) 601601 27.06 33.08 0.1 (5.8) (1.8) (7.5) 25.0 20.7 16.9 2.0 1.5 2.68 2.51JIANGSU EXPRES-H 177 10.22 (0.8) (1.5) (3.4) 600377 8.51 10.40 (0.1) (1.0) (3.8) (1.8) 16.7 15.9 14.4 4.6 4.5 2.58 2.44PING AN-H 2318 42.7 (1.4) (3.5) (6.8) 601318 34.44 42.10 0.1 (4.4) (5.5) 1.4 15.2 12.5 10.1 1.2 1.5 2.38 2.00ANHUI CONCH-H 914 21.15 (1.4) (5.6) (11.9) 600585 16.63 20.33 0.4 (5.2) (11.0) 4.0 14.9 7.4 6.6 3.8 2.4 2.66 2.02

H shares dually listed in Shenzhen A-share marketSHANDONG MOLON-H 568 3.17 (4.8) (11.0) 1.3 002490 9.56 11.69 (2.8) (4.6) 1.5 (72.9) 3.2 3.1 4.6 n/a 4.6 0.68 0.38NORTHEAST ELEC-H 42 2.73 0.0 0.0 27.0 000585 7.44 9.09 0.0 0.0 9.4 (70.0) n/a n/a n/a n/a n/a n/a n/aHISENSE KELON -H 921 3.93 0.0 1.0 (0.3) 000921 10 12.22 0.0 (2.2) 9.2 (67.9) 6.8 12.9 10.7 n/a n/a 8.70 n/aZOOMLION HEAVY-H 1157 3 (0.3) (6.0) (2.3) 000157 5.38 6.58 0.6 (5.6) (4.1) (54.4) 3.3 2.4 2.0 2.1 9.6 0.68 0.51SHANDONG CHEN-H 1812 5.49 (2.3) (1.4) 13.7 000488 8.5 10.39 0.2 (4.7) (15.3) (47.2) 7.7 7.8 5.8 3.2 4.5 0.70 0.66ANGANG STEEL-H 347 3 (2.6) (3.8) (8.0) 000898 4.56 5.57 0.9 (4.0) (9.9) (46.2) 8.6 23.4 10.9 1.9 2.6 0.33 0.33XINJIANG GOLD-H 2208 13.4 1.7 (3.2) 2.4 002202 18.29 22.36 10.0 5.4 10.5 (40.1) 11.1 38.5 39.0 3.7 1.3 2.22 2.20WEICHAI POWER-H 2338 7.96 0.6 (1.0) (6.5) 000338 9.71 11.87 (1.6) (2.3) (4.6) (32.9) 1.6 1.7 1.6 2.7 6.8 0.59 0.45ZTE-H 763 17.12 (0.8) (2.3) (8.5) 000063 17.52 21.42 0.1 (3.6) (11.0) (20.1) 14.4 14.0 11.6 1.2 1.8 2.09 1.78

Average: (43.8)Sources: Bloomberg, ICBCI

VIEWPOINTS EXPRESS - 10 December 2015 v

Equity Research

Top ten short-sold stocks, as of 9/12/2015

Stock CodePrice

(9/12)

1-trdg day chg

5-trdg day chg

20-trdg day chg

Short-selling

(SS) t/o% SS to

t/oAvg SS

price

%chg vs last

close

Average daily

SS t/o % SS to t/oAvg SS

price%chg vs last close

Average daily

SS t/o% SS to

t/oAvg SS

price

%chg vs last close

(HK$) (%) (%) (%) (HK$mn) (%) (HK$) (%) (HK$mn) (%) (HK$) (%) (HK$mn) (%) (HK$) (%)top hk <-------- 1-trading day --------> <-------- 5-trading day --------> <-------- 20-trading day -------->

Mainboard short-selling -- -- -- -- 7,614.5 11.5 -- -- 8,386.3 12.0 -- -- 8,314.2 11.5 -- -- Hang Seng Index stocks 21,803.8 -0.5 -3.0 -2.5 4,455.5 22.7 21,825.2 0.10 4,730.8 21.7 22,044.4 1.10 4,148.0 18.8 22,297.3 2.26H-share Index stocks 9,558.8 -1.1 -4.9 -6.7 1,827.5 16.1 9,588.0 0.31 1,840.6 13.1 9,747.8 1.98 2,039.4 14.7 9,998.9 4.60

Top Ten SS t/o, 1d

TENCENT 700 150.7 0.7 -2.0 -0.5 958.6 33.8 151.08 0.25 1,364.0 33.2 151.23 0.35 850.8 29.1 152.90 1.46HSBC HOLDINGS 5 60.25 -1.0 -4.1 -2.5 454.2 32.4 60.07 -0.30 241.5 23.3 60.82 0.94 135.3 14.6 61.39 1.89HKEX 388 198.30 -2.6 -4.0 -5.5 410.4 23.9 199.16 0.44 252.2 25.7 202.98 2.36 173.4 18.4 205.52 3.64CNOOC 883 8.42 1.4 -4.9 -0.1 291.9 35.8 8.41 -0.16 348.2 35.2 8.60 2.15 189.3 26.5 8.59 2.00PING AN 2318 42.70 -1.4 -3.5 -4.9 260.0 30.2 42.81 0.25 305.1 30.4 43.50 1.86 262.3 20.8 43.91 2.84A50CHINATRACKER* 2823 11.00 0.7 -3.8 -6.1 196.9 26.1 11.00 0.02 176.4 22.7 11.13 1.17 215.4 21.5 11.29 2.60TRACKER FUND* 2800 22.00 -0.5 -3.1 -2.4 164.8 20.6 22.01 0.03 156.8 22.8 22.24 1.08 396.1 35.3 22.59 2.68CHINA OVERSEAS 688 27.05 1.1 -1.3 6.7 154.7 31.0 27.03 -0.09 124.2 20.8 27.02 -0.11 113.4 20.7 26.55 -1.86CHINA MOBILE 941 89.55 -0.1 -1.2 -0.8 144.7 13.2 89.83 0.31 129.8 9.9 90.00 0.50 151.6 10.9 90.44 1.00AIA GROUP 1299 48.15 0.6 -0.7 3.1 137.2 17.1 47.77 -0.80 209.2 20.9 48.20 0.10 162.5 16.1 47.66 -1.02

Top Ten %SS to stock turnover, 1dTINGYI 322 11.08 -0.5 -1.8 -9.3 63.9 64.4 11.01 -0.65 44.8 54.2 11.13 0.43 38.7 44.2 11.56 4.36CATHAY PAC AIR 293 13.28 1.8 -1.0 -9.9 33.2 63.0 13.23 -0.37 26.3 50.6 13.23 -0.41 20.8 39.5 13.73 3.35CITIC PACIFIC 267 13.80 0.4 -2.0 -1.8 96.7 57.0 13.76 -0.28 87.7 52.3 13.86 0.46 78.3 38.4 13.88 0.61WEICHAI POWER 2338 7.96 0.6 -1.0 -3.3 15.3 54.3 7.90 -0.70 12.0 44.7 7.98 0.21 8.8 31.7 8.12 2.05CHINA OILFIELD 2883 7.02 -1.3 -10.0 -15.2 54.7 52.4 7.07 0.74 44.9 34.4 7.30 3.98 28.8 31.2 7.71 9.81YIZHENG CHEM 1033 2.04 -2.9 -10.5 -16.4 5.9 47.7 2.04 -0.07 4.6 28.6 2.08 2.04 2.6 15.1 2.20 7.60BANK OF E ASIA 23 27.00 -1.8 -3.7 -4.4 26.3 47.6 27.09 0.33 40.0 49.0 27.59 2.18 37.4 48.6 27.95 3.53CKI HOLDINGS 1038 67.70 -0.3 -1.1 -2.7 28.5 47.1 67.76 0.10 30.7 29.0 67.95 0.37 33.4 23.7 68.27 0.84NEW WORLD DEV 17 7.72 -1.9 -0.5 -3.3 48.0 44.4 7.74 0.23 19.5 19.2 7.79 0.86 17.4 16.7 7.87 1.96HOPEWELL INFRA 737 3.67 0.8 -1.1 2.8 1.6 44.2 3.66 -0.30 0.9 29.7 3.67 0.11 1.0 20.2 3.63 -1.13

Top Ten SS t/o, 5d

TENCENT 700 150.70 0.7 -2.0 -0.5 958.6 33.8 151.08 0.25 1,364.0 33.2 151.23 0.35 850.8 29.1 152.90 1.46CNOOC 883 8.42 1.4 -4.9 -0.1 291.9 35.8 8.41 -0.16 348.2 35.2 8.60 2.15 189.3 26.5 8.59 2.00PING AN 2318 42.70 -1.4 -3.5 -4.9 260.0 30.2 42.81 0.25 305.1 30.4 43.50 1.86 262.3 20.8 43.91 2.84HKEX 388 198.30 -2.6 -4.0 -5.5 410.4 23.9 199.16 0.44 252.2 25.7 202.98 2.36 173.4 18.4 205.52 3.64HSBC HOLDINGS 5 60.25 -1.0 -4.1 -2.5 454.2 32.4 60.07 -0.30 241.5 23.3 60.82 0.94 135.3 14.6 61.39 1.89AIA GROUP 1299 48.15 0.6 -0.7 3.1 137.2 17.1 47.77 -0.80 209.2 20.9 48.20 0.10 162.5 16.1 47.66 -1.02A50CHINATRACKER* 2823 11.00 0.7 -3.8 -6.1 196.9 26.1 11.00 0.02 176.4 22.7 11.13 1.17 215.4 21.5 11.29 2.60CSR 1766 10.08 -0.8 -3.6 4.9 108.8 39.4 10.06 -0.17 159.9 23.3 10.29 2.13 62.4 16.5 10.18 1.00TRACKER FUND* 2800 22.00 -0.5 -3.1 -2.4 164.8 20.6 22.01 0.03 156.8 22.8 22.24 1.08 396.1 35.3 22.59 2.68CHINA VANKE 2202 21.50 6.2 1.2 17.0 126.9 22.7 21.30 -0.92 155.5 23.5 21.59 0.42 85.4 24.5 20.60 -4.20

Top Ten %SS to stock turnover, 5dTINGYI 322 11.08 -0.5 -1.8 -9.3 63.9 64.4 11.01 -0.65 44.8 54.2 11.13 0.43 38.7 44.2 11.56 4.36CITIC PACIFIC 267 13.80 0.4 -2.0 -1.8 96.7 57.0 13.76 -0.28 87.7 52.3 13.86 0.46 78.3 38.4 13.88 0.61CATHAY PAC AIR 293 13.28 1.8 -1.0 -9.9 33.2 63.0 13.23 -0.37 26.3 50.6 13.23 -0.41 20.8 39.5 13.73 3.35BANK OF E ASIA 23 27.00 -1.8 -3.7 -4.4 26.3 47.6 27.09 0.33 40.0 49.0 27.59 2.18 37.4 48.6 27.95 3.53WEICHAI POWER 2338 7.96 0.6 -1.0 -3.3 15.3 54.3 7.90 -0.70 12.0 44.7 7.98 0.21 8.8 31.7 8.12 2.05SHANGRI-LA ASIA 69 7.12 -1.7 -0.8 -3.9 5.2 34.1 7.14 0.25 7.2 43.0 7.19 1.00 6.4 13.8 7.27 2.11AAC ACOUSTIC 2018 54.60 1.5 -2.2 10.3 65.5 32.8 54.40 -0.36 84.9 40.7 53.67 -1.71 55.6 20.3 53.68 -1.69ASM PACIFIC 522 62.60 0.3 3.0 4.3 11.2 31.0 62.75 0.25 14.0 40.5 62.16 -0.71 15.1 25.4 62.12 -0.76CHINA TRACKER* 2801 19.90 -0.3 -2.2 -1.2 0.0 - n/a n/a 0.7 39.9 20.33 2.17 0.2 1.2 20.33 2.17LUK FOOK HOLD 590 16.50 -3.8 -3.6 -16.7 10.0 41.1 16.48 -0.10 11.9 39.2 17.03 3.19 10.0 39.3 17.66 7.05

Top Ten SS t/o, 20d

TENCENT 700 150.70 0.67 -1.95 -0.53 958.6 33.8 151.08 0.25 1,364.0 33.2 151.23 0.35 850.8 29.1 152.90 1.46TRACKER FUND* 2800 22.00 -0.5 -3.1 -2.4 164.8 20.6 22.01 0.03 156.8 22.8 22.24 1.08 396.1 35.3 22.59 2.68PING AN 2318 42.70 -1.4 -3.5 -4.9 260.0 30.2 42.81 0.25 305.1 30.4 43.50 1.86 262.3 20.8 43.91 2.84A50CHINATRACKER* 2823 11.00 0.7 -3.8 -6.1 196.9 26.1 11.00 0.02 176.4 22.7 11.13 1.17 215.4 21.5 11.29 2.60CNOOC 883 8.42 1.4 -4.9 -0.1 291.9 35.8 8.41 -0.16 348.2 35.2 8.60 2.15 189.3 26.5 8.59 2.00HKEX 388 198.30 -2.6 -4.0 -5.5 410.4 23.9 199.16 0.44 252.2 25.7 202.98 2.36 173.4 18.4 205.52 3.64AIA GROUP 1299 48.15 0.6 -0.7 3.1 137.2 17.1 47.77 -0.80 209.2 20.9 48.20 0.10 162.5 16.1 47.66 -1.02CHINA MOBILE 941 89.55 -0.1 -1.2 -0.8 144.7 13.2 89.83 0.31 129.8 9.9 90.00 0.50 151.6 10.9 90.44 1.00HSBC HOLDINGS 5 60.25 -1.0 -4.1 -2.5 454.2 32.4 60.07 -0.30 241.5 23.3 60.82 0.94 135.3 14.6 61.39 1.89CCB 939 5.21 -1.1 -3.5 -4.8 83.3 10.4 5.24 0.49 81.0 7.0 5.29 1.63 129.1 9.2 5.42 3.94

Top Ten %SS to stock turnover, 20dBANK OF E ASIA 23 27.00 -1.8 -3.7 -4.4 26.3 47.6 27.09 0.33 40.0 49.0 27.59 2.18 37.4 48.6 27.95 3.53TINGYI 322 11.08 -0.5 -1.8 -9.3 63.9 64.4 11.01 -0.65 44.8 54.2 11.13 0.43 38.7 44.2 11.56 4.36CATHAY PAC AIR 293 13.28 1.8 -1.0 -9.9 33.2 63.0 13.23 -0.37 26.3 50.6 13.23 -0.41 20.8 39.5 13.73 3.35LUK FOOK HOLD 590 16.50 -3.8 -3.6 -16.7 10.0 41.1 16.48 -0.10 11.9 39.2 17.03 3.19 10.0 39.3 17.66 7.05CITIC PACIFIC 267 13.80 0.4 -2.0 -1.8 96.7 57.0 13.76 -0.28 87.7 52.3 13.86 0.46 78.3 38.4 13.88 0.61HENDERSON LAND 12 47.05 -1.7 -4.0 -0.9 38.9 26.9 47.11 0.14 52.3 24.7 47.88 1.77 53.8 38.3 48.22 2.49HENGAN INT'L 1044 78.30 -0.3 0.3 -3.0 26.2 31.9 78.63 0.42 41.1 32.8 78.27 -0.04 55.7 36.1 78.94 0.82TRACKER FUND* 2800 22.00 -0.5 -3.1 -2.4 164.8 20.6 22.01 0.03 156.8 22.8 22.24 1.08 396.1 35.3 22.59 2.68WANT WANT CHINA 151 5.72 -1.2 -6.1 -8.6 41.7 30.0 5.73 0.26 47.1 35.8 5.91 3.26 41.7 33.6 6.17 7.84MTR CORPORATION 66 36.25 0.3 -1.1 3.0 39.8 42.1 36.18 -0.20 40.8 32.8 36.36 0.30 37.9 32.9 36.17 -0.22

Source: B loomberg, ICBCI

VIEWPOINTS EXPRESS - 10 December 2015 vi

Equity Research

Short-selling on HSI and H-share Index constituents, sorted by 1-day short-selling turnover, as of 9/12/2015

Stock CodePrice

(9/12)

1-trdg day chg

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<-------- 1-trading day --------> <-------- 5-trading day --------> <-------- 20-trading day -------->(HK$) (%) (%) (%) (HK$mn) (%) (HK$) (%) (HK$mn) (%) (HK$) (%) (HK$mn) (%) (HK$) (%)

TENCENT 700 150.70 0.7 -2.0 -0.5 958.6 33.8 151.08 0.25 1,364.0 33.2 151.23 0.35 850.8 29.1 152.90 1.46HSBC HOLDINGS 5 60.25 -1.0 -4.1 -2.5 454.2 32.4 60.07 -0.30 241.5 23.3 60.82 0.94 135.3 14.6 61.39 1.89HKEX 388 198.30 -2.6 -4.0 -5.5 410.4 23.9 199.16 0.44 252.2 25.7 202.98 2.36 173.4 18.4 205.52 3.64CNOOC 883 8.42 1.4 -4.9 -0.1 291.9 35.8 8.41 -0.16 348.2 35.2 8.60 2.15 189.3 26.5 8.59 2.00PING AN 2318 42.70 -1.4 -3.5 -4.9 260.0 30.2 42.81 0.25 305.1 30.4 43.50 1.86 262.3 20.8 43.91 2.84CHINA OVERSEAS 688 27.05 1.1 -1.3 6.7 154.7 31.0 27.03 -0.09 124.2 20.8 27.02 -0.11 113.4 20.7 26.55 -1.86CHINA MOBILE 941 89.55 -0.1 -1.2 -0.8 144.7 13.2 89.83 0.31 129.8 9.9 90.00 0.50 151.6 10.9 90.44 1.00AIA GROUP 1299 48.15 0.6 -0.7 3.1 137.2 17.1 47.77 -0.80 209.2 20.9 48.20 0.10 162.5 16.1 47.66 -1.02BANK OF CHINA 3988 3.36 -1.5 -4.5 -3.7 132.7 11.0 3.37 0.41 90.3 9.0 3.43 2.09 97.0 8.8 3.48 3.51CHINA VANKE 2202 21.50 6.2 1.2 17.0 126.9 22.7 21.30 -0.92 155.5 23.5 21.59 0.42 85.4 24.5 20.60 -4.20CHINA LIFE 2628 25.15 -1.6 -7.2 -9.7 119.5 16.5 25.28 0.50 101.5 11.5 25.82 2.68 126.0 12.9 27.42 9.03CITIC PACIFIC 267 13.80 0.4 -2.0 -1.8 96.7 57.0 13.76 -0.28 87.7 52.3 13.86 0.46 78.3 38.4 13.88 0.61ICBC 1398 4.55 -1.7 -4.2 -4.8 94.3 11.2 4.58 0.67 69.9 7.9 4.63 1.80 119.2 11.1 4.75 4.32CCB 939 5.21 -1.1 -3.5 -4.8 83.3 10.4 5.24 0.49 81.0 7.0 5.29 1.63 129.1 9.2 5.42 3.94CHEUNG KONG 1 101.80 0.0 -1.7 -0.3 75.4 15.2 101.80 0.00 93.6 17.6 102.73 0.92 83.9 16.4 102.60 0.79BYD COMPANY 1211 42.90 5.3 0.7 -8.4 73.9 15.1 41.94 -2.23 71.4 25.2 41.24 -3.86 57.4 21.6 42.72 -0.42CHINA PACIFIC INSURAN 2601 30.60 -4.4 -8.4 -6.0 73.8 16.8 30.84 0.79 59.3 16.3 32.34 5.69 55.1 17.7 32.30 5.54 CITIC SECURITIES 6030 17.36 -0.8 -6.8 -8.6 73.0 39.1 17.53 0.98 30.7 18.6 17.84 2.79 58.1 21.5 18.49 6.51LENOVO GROUP 992 8.32 -1.4 -1.3 14.3 72.3 37.6 8.38 0.70 75.0 32.4 8.42 1.16 115.8 28.7 8.31 -0.12CHINA UNICOM 762 9.16 -1.1 -5.3 -6.0 71.2 13.8 9.15 -0.11 49.7 12.0 9.32 1.77 59.9 15.6 9.75 6.46GREAT WALL MOTOR 2333 9.95 5.6 1.5 1.4 68.0 15.0 9.74 -2.08 37.6 17.4 9.62 -3.28 37.7 18.4 9.75 -1.97TINGYI 322 11.08 -0.5 -1.8 -9.3 63.9 64.4 11.01 -0.65 44.8 54.2 11.13 0.43 38.7 44.2 11.56 4.36PICC P&C 2328 16.00 -0.7 -7.5 -7.2 59.8 16.2 16.01 0.08 103.7 6.4 16.49 3.05 73.5 13.0 16.99 6.20SHK PPT 16 94.60 -1.0 -3.4 -3.5 57.4 23.5 94.85 0.27 79.6 30.9 95.94 1.42 100.1 28.1 97.62 3.19CHINA OILFIELD 2883 7.02 -1.3 -10.0 -15.2 54.7 52.4 7.07 0.74 44.9 34.4 7.30 3.98 28.8 31.2 7.71 9.81ANHUI CONCH 914 21.15 -1.4 -5.6 -9.8 52.0 44.1 21.15 0.01 70.6 36.9 21.74 2.78 70.3 31.7 22.06 4.28MENGNIU DAIRY 2319 12.86 -0.6 4.2 -5.3 51.1 28.7 12.89 0.20 39.7 18.9 12.84 -0.13 30.5 14.9 13.10 1.83NEW WORLD DEV 17 7.72 -1.9 -0.5 -3.3 48.0 44.4 7.74 0.23 19.5 19.2 7.79 0.86 17.4 16.7 7.87 1.96MINSHENG BANKING 1988 7.37 -0.5 -3.2 -4.8 47.5 40.2 7.38 0.09 33.4 26.0 7.42 0.63 35.5 21.2 7.61 3.24SANDS CHINA 1928 26.15 0.6 -4.6 -6.3 45.4 22.6 26.06 -0.33 68.6 25.7 26.45 1.14 82.3 26.2 27.00 3.24AGRICULTURAL BANK 1288 2.92 -1.4 -3.6 -5.5 42.9 17.2 2.93 0.46 29.9 10.6 2.96 1.51 55.0 15.5 3.02 3.51WANT WANT CHINA 151 5.72 -1.2 -6.1 -8.6 41.7 30.0 5.73 0.26 47.1 35.8 5.91 3.26 41.7 33.6 6.17 7.84MTR CORPORATION 66 36.25 0.3 -1.1 3.0 39.8 42.1 36.18 -0.20 40.8 32.8 36.36 0.30 37.9 32.9 36.17 -0.22HENDERSON LAND 12 47.05 -1.7 -4.0 -0.9 38.9 26.9 47.11 0.14 52.3 24.7 47.88 1.77 53.8 38.3 48.22 2.49CHINA SHENHUA 1088 11.94 -1.0 -4.6 -6.0 38.6 21.4 11.99 0.42 67.4 27.9 12.39 3.74 60.2 29.5 12.49 4.61CM BANK 3968 17.72 -1.0 -5.2 -14.2 35.7 8.8 17.85 0.74 45.6 7.7 18.14 2.39 112.9 20.5 19.33 9.10HANG SENG BANK 11 143.30 0.6 0.1 0.7 35.5 13.2 143.41 0.07 49.7 28.2 142.55 -0.52 48.6 26.5 142.18 -0.78LINK REIT 823 46.30 -0.8 -2.4 2.2 33.9 19.6 46.17 -0.27 21.8 14.6 46.54 0.51 33.4 16.2 47.24 2.02PETROCHINA 857 5.23 -1.3 -8.2 -9.0 33.8 10.3 5.27 0.73 62.9 11.2 5.40 3.20 96.4 15.7 5.56 6.38CATHAY PAC AIR 293 13.28 1.8 -1.0 -9.9 33.2 63.0 13.23 -0.37 26.3 50.6 13.23 -0.41 20.8 39.5 13.73 3.35DONGFENG GROUP 489 10.84 5.7 1.1 -1.6 31.1 11.3 10.80 -0.41 8.8 5.6 10.70 -1.32 11.7 7.8 10.85 0.12SINOPEC CORP 386 4.56 0.2 -6.9 -12.8 28.5 8.1 4.57 0.25 37.3 9.0 4.69 2.94 53.2 10.7 4.93 8.01CHINA RES LAND 1109 22.10 2.1 -3.1 5.7 27.8 15.1 22.10 -0.02 23.2 8.9 22.17 0.30 27.7 10.5 21.74 -1.61BANK OF E ASIA 23 27.00 -1.8 -3.7 -4.4 26.3 47.6 27.09 0.33 40.0 49.0 27.59 2.18 37.4 48.6 27.95 3.53HENGAN INT'L 1044 78.30 -0.3 0.3 -3.0 26.2 31.9 78.63 0.42 41.1 32.8 78.27 -0.04 55.7 36.1 78.94 0.82CITIC BANK 998 4.87 -1.4 -3.9 -6.3 25.0 18.7 4.88 0.27 18.7 11.4 4.95 1.67 22.1 10.5 5.07 4.18CHINA LONGYUAN POW 916 6.02 -6.5 -9.1 -13.5 24.4 15.6 6.17 2.47 15.3 15.6 6.36 5.60 29.2 23.9 6.53 8.55CHINA RES POWER 836 14.62 -0.9 -5.4 -10.9 23.1 25.5 14.64 0.14 26.3 26.5 15.03 2.77 36.9 30.4 15.30 4.63CNBM 3323 3.86 -1.8 -9.2 -11.5 21.6 30.5 3.85 -0.14 25.0 27.7 4.01 3.93 29.1 29.3 4.19 8.55HK & CHINA GAS 3 15.02 -0.5 -3.3 -4.2 20.5 15.9 15.03 0.06 27.9 22.9 15.21 1.26 34.5 25.3 15.49 3.10WHARF HOLDINGS 4 43.75 -1.0 -2.6 -0.6 19.4 14.4 43.81 0.13 25.8 17.9 44.12 0.84 45.0 32.6 44.60 1.93HK ELECTRIC 6 69.65 -0.4 -0.6 -7.3 19.3 14.2 69.56 -0.12 29.4 13.7 69.91 0.38 30.6 11.6 71.16 2.17LI & FUNG 494 5.10 -0.4 -4.1 -11.9 18.9 13.9 5.09 -0.11 23.0 27.0 5.24 2.66 36.0 31.8 5.50 7.76GALAXY ENT 27 22.85 -0.2 -4.8 -9.3 18.5 12.0 22.75 -0.45 52.8 21.6 23.29 1.91 68.1 21.0 23.73 3.84CNPC(HONG KONG) 135 6.57 0.0 -5.6 8.1 18.3 29.8 6.57 0.02 25.4 24.8 6.71 2.11 33.3 26.6 6.58 0.17GUANGZHOU AUTOMOB2238 7.30 3.5 -1.4 -1.7 18.0 17.1 7.18 -1.61 12.6 11.9 7.16 -1.95 9.7 10.4 7.37 0.98JIANGXI COPPER 358 8.56 -3.5 -7.1 -15.6 16.8 15.0 8.70 1.58 33.9 15.6 9.04 5.62 40.8 26.4 9.44 10.29BOC HONG KONG 2388 23.70 -0.4 -1.7 -4.4 16.8 8.0 23.72 0.07 25.7 13.1 23.90 0.83 44.1 18.7 24.30 2.52BANKCOMM 3328 5.38 -0.4 -4.1 -4.1 16.3 13.7 5.37 -0.13 25.9 16.3 5.43 0.94 20.6 11.5 5.52 2.56WEICHAI POWER 2338 7.96 0.6 -1.0 -3.3 15.3 54.3 7.90 -0.70 12.0 44.7 7.98 0.21 8.8 31.7 8.12 2.05TSINGTAO BREW 168 33.05 -2.2 -4.1 -7.3 14.6 36.8 33.22 0.53 15.1 37.6 33.62 1.73 19.1 30.7 34.32 3.84CHINA RAILWAY 390 6.32 -1.4 -5.2 -8.8 14.0 12.5 6.32 0.02 14.5 11.9 6.43 1.72 17.0 11.8 6.62 4.82CHINA TELECOM 728 3.58 0.0 -6.8 -9.1 13.8 10.9 3.57 -0.31 21.5 9.7 3.60 0.56 28.3 13.2 3.84 7.31BELLE INT'L 1880 6.70 0.6 -5.0 -5.2 12.8 22.2 6.74 0.57 10.6 16.2 6.81 1.62 19.9 19.7 6.99 4.29CLP HOLDINGS 2 64.30 -0.5 -1.4 -2.5 12.5 10.5 64.55 0.39 14.4 9.9 64.75 0.70 26.3 12.4 65.72 2.20HUANENG POWER 902 6.81 -1.2 -3.5 -16.6 12.4 7.4 6.82 0.18 32.4 13.4 6.95 2.12 56.0 18.1 7.28 6.88HAITONG SECURITIES 6837 12.78 -1.4 -7.7 -13.4 11.6 7.8 12.92 1.09 17.7 8.9 13.28 3.90 32.2 11.3 14.19 11.04NEW CHINA LIFE 1336 33.20 0.0 -2.8 -4.3 11.1 9.5 33.20 -0.01 28.0 16.4 34.36 3.51 37.3 21.6 33.78 1.76CHINA CINDA ASSET 1359 2.80 0.0 -3.8 -4.4 10.3 12.3 2.79 -0.50 7.0 7.5 2.82 0.56 7.1 6.8 2.89 3.38SWIRE PACIFIC A 19 84.80 0.1 -2.8 -1.4 10.2 24.9 84.75 -0.06 16.9 22.8 85.12 0.37 17.7 12.8 86.37 1.85SINOPHARM GROUP 1099 33.25 -0.2 -1.3 1.4 7.2 6.3 33.28 0.08 13.0 9.5 33.53 0.84 15.4 10.7 32.83 -1.26SINO LAND 83 11.56 -0.9 -2.0 1.4 6.8 19.4 11.58 0.17 8.8 21.0 11.75 1.64 9.7 14.6 11.73 1.44CHINA MER HOLD 144 24.65 -2.2 -3.7 -2.4 5.9 8.1 24.71 0.24 15.7 18.1 25.55 3.63 16.8 18.8 25.69 4.22CHINA RESOURCES 291 14.82 -1.2 -2.6 6.0 4.6 13.4 14.86 0.25 5.5 8.4 15.01 1.29 8.6 13.1 14.85 0.23HANG LUNG PPT 101 18.02 -0.8 -2.5 -2.0 4.5 6.7 18.02 0.02 11.5 16.9 18.38 2.02 16.0 23.8 18.68 3.66CHINA COMM CONS 494 8.50 -1.3 -7.6 -16.8 3.4 2.8 8.49 -0.17 16.5 7.2 8.78 3.33 35.6 14.2 9.54 12.22SHANDONG WEIGAO 1066 5.64 0.4 -3.3 1.1 3.3 22.3 5.65 0.21 2.4 11.7 5.70 1.03 5.1 13.2 5.66 0.43 PEOPLE'S INSURANCE 1339 3.85 -1.8 -6.1 -5.9 2.1 3.5 3.85 0.06 6.5 6.3 3.93 1.96 8.9 9.2 4.04 4.88AIR CHINA 753 6.12 -3.8 -5.3 -12.3 1.1 2.6 6.13 0.22 5.8 12.1 6.20 1.27 6.5 11.2 6.47 5.68CHINA COAL 1898 3.04 0.3 -5.0 -12.6 0.4 2.4 3.07 0.83 1.2 7.0 3.16 3.93 2.2 9.0 3.33 9.53

Source: B loomberg, ICBCI

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