July 9, 2011

China Weekly Kickstart Portfolio Strategy Research July 4-8: Strong market after the long awaited rate hike

China equity markets rallied, with MXCN +2.1% (MXAPJ +1.8%) and CSI300 +1.9% . Vice Premier Wang Qishan said the govt needs to help SMEs tackle financing difficulties, which further raised expectations on possible loosening in 2H2011 (although we believe a quota allocation change is more likely than a total quota increase). PBOC hiked interest rates mid week, which was long expected and should be the last this year. Upbeat global trends (Greece etc) also contributed to the strong market. We expect 2Q GDP growth of 9.4% yoy (8.0% qoq sa ann), with June CPI rising to 6.4% from 5.5% in May; July may remain elevated or possibly even higher.

This week’s performance summary Key ideas from GS China Research Sectoral performance diverged between onshore We remain upbeat and expect performance to Helen Zhu +852-2978-0048 [email protected] and offshore this week. Cyclicals generally year-end to be driven largely by earnings growth Goldman Sachs (Asia) L.L.C. outperformed offshore in the rally. Building (some slight multiple expansion is possible by late materials and property topped the performance in the year). However, market expectations on Hanfeng Wang, Ph.D, CFA table on a possible switch in policy stance but loosening have risen significantly, so more +86(10)6627-3318 [email protected] Beijing Gao Hua Securities Company Limited underperformed onshore. Autos performed well volatility near-term is possible as the inflation data given newsflow (Xinhua News) on possible may remain concerning for June/July and we Timothy Moe, CFA supportive policies emerging. Other consumers believe loosening may not be imminent. +852-2978-1328 [email protected] lagged offshore. Sportswear companies dropped Goldman Sachs (Asia) L.L.C. Key China reports: 1) 2H2011 A-share outlook 2) sharply on Li Ning’s disappointing earnings China econ data preview 3) China Auto, initiate guidance. Banks continued to underperform Ben Bei Xingda and Minth 4) China solar industry move to +852-2978-1220 [email protected] offshore on continued LGFV uncertainties and block mid cycle 5) China insurance’s impact from rate Goldman Sachs (Asia) L.L.C. sales, but saw some buying in the A-share market hike. on the back of the NIM-positive rate hike. Oil price rebounded from recent corrections and helped to lift Valuation oil offshore at the expense of transport, but the MXCN: 11.4X 11E P/E; 20.0% 11E EPS growth. relationship was less obvious onshore. Telcos and CSI300: 13.9X 11E P/E; 25.3% 11E EPS growth. utilities lagged in both markets given the rally of the market. Key upcoming events to watch China: CPI, PPI, IP, FAI, GDP (July 9-13) Goldman Sachs 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. For Reg AC see the end of the text. For 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. Goldman Sachs Global Economics, Commodities and Strategy Research July 9, 2011 China

Goldman Sachs’ China strategy view at a glance

Goldman Sachs’ 12-month index target and EPS growth assumptions*

Implied fwd valuations 2011E EPS growth (%) Top-down Bottom-up Consensus Index Potential 30% MSCI China level +/(-) % P/E (X) P/B (X) Current index level 67.5 10.5 25% Bull case 106.8 58.2 14.0 2.7 20% Base case 83.2 23.2 12.0 2.1 Bear case 69.4 2.8 11.0 1.8 15% Implied fwd Index Potential 10% CSI300 level +/(-) % P/E (X) Current index level 3,109.2 12.4 5% Bull case 3,800 22.2 13.2 Base case 3,400 9.4 12.8 0% MSCI China CSI 300 Bear case 2,700 (13.2) 10.7

* CSI300 targets are 2011 Year-end.

Conviction Buy/Conviction Sell List Conviction Buy/Conviction Sell stocks rated by Goldman Sachs/Gao Hua Securities analysts, ranked by potential upside/downside to target price

Conviction Buy list Quoting Quoted price Potential Market cap 6M ADVT P/E (X) EPS growth (%) P/B (X) ROE (%) D/Y (%) Ticker Name currency 08-Jul-2011 Target price +/- to TP (%) (US$ mn) (US$ mn) 2010E 2011E 2010E 2011E 2010E 2011E 2010E 2011E 2010E 2011E 601318 CH Ping An Insurance Group (A) CNY 48.49 84.70 75% 55198.6 171.0 21.0 18.3 22% 15% 3.3 2.9 17% 16% 1% 2% 600036 CH China Merchants Bank (A) CNY 13.41 21.60 61% 41253.6 138.8 10.7 8.2 37% 31% 2.1 1.8 23% 24% 2% 3% 601888 CH China International Travel Service Corp. CNY 24.35 37.30 53% 3335.2 20.7 52.7 31.3 15% 68% 5.3 4.5 10% 14% 0% 0% 998 HK China CITIC Bank (H) HKD 4.91 7.34 49% 25240.2 21.8 8.0 6.0 49% 32% 1.3 1.1 19% 20% 0% 4% 867 HK China Medical System Holdings HKD 7.86 11.90 51% 1264.9 1.0 33.2 21.6 40% 54% 5.9 3.1 24% 19% 0% 0% YOKU US Youku.com Inc. USD 36.85 55.00 49% 4090.8 118.6 79% 46% 10.5 6.1 -13% -3% 0% 0% 3333 HK Evergrande Real Estate Group HKD 5.72 8.20 43% 10619.4 39.8 9.5 7.4 592% 28% 3.4 2.5 43% 37% 3% 3% 000002 CH China (A) CNY 8.82 12.72 44% 14948.9 82.9 13.2 8.3 37% 59% 2.2 1.8 15% 18% 1% 2% 601006 CH Daqin Railway CNY 8.23 12.00 46% 19057.6 63.1 11.8 9.2 38% 28% 2.2 2.0 21% 22% 4% 5% 600376 CH Beijing Capital Development Co. CNY 12.71 18.46 45% 2956.1 30.9 14.2 9.7 44% 47% 1.8 1.6 13% 17% 1% 2% 848 HK Maoye International Holdings HKD 3.68 5.20 41% 2397.3 3.9 28.0 20.5 24% 37% 4.1 3.5 13% 14% 0% 1% 358 HK Jiangxi Copper (H) HKD 27.05 37.30 38% 11768.0 49.2 14.5 8.1 104% 79% 2.3 1.8 17% 24% 1% 2% SVN US 7 Days Group Holdings Ltd. USD 21.2 29.00 37% 1057.7 2.9 62.0 30.6 140% 103% 5.1 4.3 9% 15% 0% 0% 1199 HK COSCO Pacific HKD 14.26 19.30 35% 4940.2 19.0 12.8 11.5 85% 12% 1.5 1.4 9% 11% 3% 3% 000527 CH GD Midea Holding CNY 17.98 24.30 35% 9508.6 55.3 18.1 14.4 10% 26% 4.6 3.1 21% 20% 1% 1% Conviction Sell list Quoting Quoted price Potential Market capP/E (X) EPS growth (%) P/B (X) ROE (%) D/Y (%) Ticker Name currency 08-Jul-2011 Target price target price (US$ mn) 2010E 2011E 2010E 2011E 2010E 2011E 2010E 2011E 2010E 2011E 1898 HK China Coal Energy (H) HKD 10.78 7.40 -31% 18296.3 42.0 16.2 13.1 -1% 24% 1.6 1.5 9% 10% 2% 2% 175 HK Geely Automobile Holdings HKD 3.3 2.61 -21% 2501.0 13.7 15.6 13.9 10% 12% 2.6 2.2 17% 15% 1% 1% 857 HK PetroChina (H) HKD 11.78 9.40 -20% 270901.8 129.9 13.1 9.9 37% 33% 1.9 1.7 14% 17% 3% 5%

Source: I/B/E/S, Goldman Sachs Research estimates, Gao Hua Securities Research estimates, Goldman Sachs Global ECS Research estimates.

Goldman Sachs Global Economics, Commodities and Strategy Research 2 July 9, 2011 China GS strategy preference 11P/E Weighting

Sector view from GS/GH China research team

GS Sector Offshore Onshore MXCN CSI300 MXCN CSI300 GS comment on sector trends and valuation

Positive outlook as commodities team has become more bullish on oil prices. Upstream earnings outlook Oil and gas OW Neutral 10.4 15.9 19% 9% is strong with easing downstream earnings pressure starting from 2H11. This sector is trading slightly below historical average valuation and could benefit from several positive regulatory reform catalysts.

NAV discount close to 08 market trough levels; although home purchase restriction (HPR) will stifle volume near-term, our estimates are already well below companies' targets and reflective of a 20% Property OW OW 9.8 10.6 6% 5% pullback in ASP from peak 2010 levels. Policy bad news is all out for the near to medium term. A-shares may be more volatile given more policy newsflow sensitivity/less valuation sensitivity. Favor dept stores with lower store vintage that pose better growth potential such as Intime and Maoye; Retail, hotels, consumer durables long-term positive on industry leading brands such as Belle. Beneficiary of wage increase/inflation and OW OW 19.6 16.0 4% 6% and apparel good operating leverage. A-sharesper have than more A-share exposure consumer to dept sta storeples. and travel names, which we like, and A-shareWe retailare positive is chea on copper and gold; the sector also includes coking coal. Valuations are reasonable and Diversified mining, precious metals OW OW 10.6 28.2 2% 7% the sector should perform strongly as volatility in oil price rises. Sensitive to tightening but MXCN sector constituents are allg tiht su pply commodities. Property/social housing/infrastructure FAI outlook still robust; more favorable supply outlook than other Building materials, paper, commodities, so prices may not correct as much as past years. Consolidation is likely to continue. Neutral OW 11.3 13.4 3% 2% packaging Valuations are not stretched but we think there may be better entry points after already very strong outperformance , and thus have taken profit on cement for now. Insurance and other financial Well positioned to rate hikes, but these are now fairly well-expected. Business assurance may be a drag Neutral Neutral 19.5 17.6 8% 10% services on growth in 1H11. Valuations reasonable but not distressed - A-shares are cheaper than H-shares. Beneficiary of pro R&D policies but may be exposed to ASP and cannibalization risks due to global Computer hardware/assemblers Neutral Neutral 12.0 21.9 1% 2% competition. Stron g performers recentl y due to bein g DM facin g. Staples may see more earnings pressure from inflation-related influences while healthcare faces Consumer staples and Health care Neutral OW 18.7 26.2 6% 11% gulatorre y risks. Both sectors were weak since 4Q10 but are still not chea p. Secular growth maintained for advertising and ecommerce-based models, whereas uncertainty over online gaming market dynamics remains. Internet/media are consumption beneficiaries, and software is Software and services Neutral Neutral 30.2 26.7 4% 1% likely to be positively influenced by govt policy to support innovation going forward. Valuation is the main concern. Policy outlook may be favorable for fertilizers and pesticides. However, crude oil price increase may put Chemicals Neutral Neutral 12.7 21.2 1% 2% refining margins at risk. Full y valued. Telcos have already underperformed the market ytd by about 5% and over the past 12 months by about 13%. China Mobile (which accounts for most of the index weight) has de-rated meaningfully to only about 9X PER, which prices in its ex-growth status adequately, in our view. The stock now shows upside Telecommunication services Neutral UW 12.2 38.2 11% 1% potential to our analyst’s 12-month SOTP-based TP of HK$82 (key upside risks: earlier-than-expected TD- LTE launch). While we are not so bearish on the markets to upgrade the sector to OW, we feel it no longer deserves an UW sector stance. Policy uncertainty is escalating. The potential RWA/CAR rules could negatively impact banks' CAR, Banks Neutral Neutral 7.9 7.2 21% 17% interbank liquidy and lead to more recap over time. Valuation is still at trough level, but it may be hard for g to emer ge until we see more clarit y on policy. re-ratin IPPs losses (P&L and CF) are intensifying due to the surging thermal coal price; but the recent power Utilities Neutral UW 14.2 16.5 2% 2% shortage in several provinces may catalyze more tariff hikes and/or stricter coal price control. We expect sector's margin ma y be have trou ghed. Earnings are facing double digit downside risks on 1) supply side disruptions from Japan earthquake 2) Weak demand and 2H growth will be lower due to tougher base 3) policy risks on demand rationing and Autos and components UW Neutral 12.6 10.6 2% 2% efficiency subsidy fade-out. Valuation is at mid cycle on current consensus but may be closer to peak level after earnings cut Still favorable on container shipping but bulk faces supply side pressures; airlines are fully priced and at Transportation UW Neutral 13.1 13.0 3% 4% risk of oil price rise, and transport infrastructure lacks meaningful incremental catalysts after strong outperformance in 4Q10. This sector represents mainly infrastructure construction services companies, alternative energy Industrials, conglomerates, equipment companies, and construction machinery companies. While the sector has already UW UW 10.4 16.1 5% 16% business services underperformed ytd and valuations look reasonable at low teens, our concern lies with downward earnings revision risks , particularl y for the construction machiner y sub-sector. Our commodities equities team is structurally very negative on steel / aluminum due to significant Steel, aluminium UW UW 20.0 16.2 1% 4% oversupply.This sector is extremely sensitive to a macro slowdown as well as to coal price increase. We pectex fundamentals to weaken further over the comin g quarter. Weight on OW sectors 31% 30% Weight on Neutral sectors 58% 47% Weight on UW sectors 11% 22% Note: OW = Overweight, UW = Underweight. Maoye (0848.HK; Buy, on CL, HK$3.68); Belle (1880.HK; Buy, on CL; HK$17.04); Intime (1833.HK; Buy, HK$13.70); China Mobile (0941.HK; Neutral; HK$73.80)

Source: I/B/E/S, Factset, Goldman Sachs Research estimates, Gao Hua Securities Research estimates, Goldman Sachs Global ECS Research.

Goldman Sachs Global Economics, Commodities and Strategy Research 3 July 9, 2011 China

Performance summary

Price performance of key Chinese equity indexes MSCI China index price performance (HKD)

Index Price % above (below) MSCI China index level level return (%) average 75 2011 YTD: 1.4% Ticker 07/08/11 1-wk YTD RSI 30-day 60-day China-related indexes 70 MSCI China (H, Red-chip & B-share) (HKD) MXCN 67.5 2.1 1.4 62.3 2.4 0.3 Hang Seng China Enterprise (H-share) (HKD) HSCEI 12,756.3 1.4 0.5 55.0 1.5 (0.9) 65 HS China-affiliated Corp (Red-chip) (HKD) HSCCI 4,362.4 4.1 4.6 71.6 5.1 3.2 USX China (US-listed China stocks) (USD) HXC 6,149.1 0.4 1.0 69.8 4.1 (0.3) 60 CSI 300 (Shanghai & Shenzhen A-share) (CNY) SHSZ300 3,109.2 1.9 (0.6) 65.3 3.9 0.6 Shanghai Composite (Shanghai A & B) (CNY) SHCOMP 2,797.8 1.4 (0.4) 61.4 2.6 (0.7) 55 Shenzhen Composite (Shenzhen A & B) (CNY) SZCOMP 1,201.5 3.4 (6.9) 76.2 6.5 2.4 50 Shanghai A (Shanghai A-share) (CNY) SHASHR 2,930.4 1.4 (0.3) 61.3 2.6 (0.7) Shanghai B (Shanghai B-share) (USD) SHBSHR 285.0 4.6 (6.4) 72.3 5.8 (1.4) Shenzhen A (Shenzhen A-share) (CNY) SZASHR 1,257.9 3.4 (6.9) 76.1 6.5 2.4 Apr-11 Apr-11 Apr-11 Apr-11 Apr-11 Jan-11 Jan-11 Jan-11 Jan-11 Jan-11 Jan-11 Feb-11 Feb-11 Feb-11 Feb-11 Feb-11 Mar-11 Mar-11 Mar-11 Mar-11 Mar-11 Mar-11 Mar-11 Dec-10 Shenzhen B (Shenzhen B-share) (HKD) SZBSHR 752.0 3.7 (8.8) 73.4 4.3 (1.0) CSI 300 index price performance (CNY) MSCI stndard market and regional indexes AC Asia Pacific (USD) MXAP 138.1 1.9 0.3 69.5 3.6 2.3 AC Asia Pacific ex Japan (USD) MXAPJ 492.5 1.8 2.8 67.8 3.1 1.4 CSI 300 index level USA (USD) MXUS 1,294.7 1.0 7.8 75.9 4.1 2.7 4000 Europe (EUR) MXEU 95.5 0.7 0.1 66.7 2.0 0.4 2011YTD: -0.6% Japan (JPY) MXJP 543.6 2.5 (3.3) 73.9 5.3 4.5 3500

MSCI China sector indexes (HKD) Materials MXCN0MT 1,180.2 5.0 7.7 74.4 5.6 2.3 3000 Energy MXCN0EN 850.0 2.9 7.4 66.4 3.5 3.1 Consumer Discretionary MXCN0CD 275.7 2.7 5.7 71.0 6.6 6.1 2500 Consumer Staples MXCN0CS 1,385.6 2.1 5.2 61.8 2.5 2.8 Information Technology MXCN0IT 130.0 1.8 17.0 66.9 2.6 0.3 Telecommunication Services MXCN0TC 128.3 1.8 3.3 60.9 3.3 3.4 2000 Utilities MXCN0UT 365.1 1.7 6.1 57.4 1.0 (0.1) Industrials MXCN0IN 153.9 1.6 (14.0) 61.6 1.9 (3.8) Apr-11 Jan-11 Feb-11 Jun-11 Mar-11 Dec-10 Financials MXCN0FN 489.2 1.4 (3.0) 50.9 0.5 (2.7) May-11 Health Care MXCN0HC 143.3 (1.1) (11.5) 57.1 (3.2) (5.9) Candle chart of the week - CSI 300 index CSI 300 sector indexes (CNY) Information Technology SH000915 1,674.8 4.2 (11.8) 73.2 5.6 1.0 MSCI China index CSI 300 index Consumer Staples SH000912 6,936.4 3.5 2.8 78.3 5.6 5.9 68 3150 Health Care SH000913 5,450.7 3.4 (14.2) 74.9 5.2 0.7 Materials SH000909 3,359.0 2.4 0.9 65.0 4.7 1.8 Industrials SH000910 2,746.2 1.8 (3.8) 64.1 4.0 0.1 Financials SH000914 3,826.6 1.8 1.2 56.4 2.6 (1.1) Consumer Discretionary SH000911 3,949.2 1.4 2.4 65.5 4.8 1.4 3100 Utilities SH000917 1,575.9 0.9 (4.4) 49.1 (0.4) (5.2) Energy SH000908 3,935.5 0.8 2.7 66.7 5.7 3.9 Telecommunication Services SH000916 2,599.9 0.6 0.1 53.0 1.2 (1.4) 67

3050

66 3000 7/4/2011 7/5/2011 7/6/2011 7/7/2011 7/8/2011 7/4/2011 7/5/2011 7/6/2011 7/7/2011 7/8/2011

Source: CSI, Bloomberg, MSCI, Goldman Sachs Global ECS Research.

Goldman Sachs Global Economics, Commodities and Strategy Research 4 July 9, 2011 China

Top- and bottom-10 performing China offshore-listed stocks last week Top- and bottom-10 performing China domestic-listed stocks last week (listed market cap > US$3 bn) (listed market cap > US$3 bn)

Ticker Stock name GS sector 1W Perf Ytd Perf RSI Ticker Stock name GS sector 1W Perf Ytd Perf RSI Top 10 Top 10 813 HK Shimao Prop Property 9% -5% 89 600132 CH Chongqing Brewery Staples 14% 22% 85 3333 HK Evergrande Real Estate Group Ltd. Property 9% 51% 87 600516 CH Fangda Carbon New Mat Industrials 12% 8% 81 3383 HK Agile Prop Property 7% 17% 81 000009 CH Shenzhen Baoan Ent Industrials 10% 19% 89 3323 HK China National Building Mat Building materials 6% 93% 79 600970 CG China Sinoma Intl Engg Industrials 9% -9% 64 1109 HK China Resources Land Property 5% 8% 87 002106 CS Shenzhen Laibao Hi-tech IT hardware 8% -28% 79 493 HK GOME Electrical Appliances Consumer 5% 22% 93 600893 CG China Resources Jilin Biochem Industrials 8% 21% 68 1313 HK China Resources Cement Holdings Ltd. Building materials 5% 33% 75 000629 CS Panzhihua New Steel & Vanadium Steel 6% 3% 79 291 HK China Resources Ent Staples 5% 6% 82 600085 CH Beijing Tongrentang Staples 6% 19% 92 691 HK China Shanshui Cement Group Co. Ltd. Building materials 4% 73% 73 600252 CH Guangxi Wuzhou Zhongheng Staples 5% 11% 88 1688 HK Alibaba.com Software 4% -9% 78 600406 CG NARI Tech Dev Industrials 5% 6% 89 Bottom 10 Bottom 10 631 HK Sany Heavy Equipment International Holdings Co Industrials -6% 5% 57 600372 CH Jiangxi Changhe Automobile Autos -6% 25% 43 2020 HK Anta Sports Products Consumer -5% 10% 48 600111 CG Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Mining -6% 43% 48 2601 HK China Pacific Insurance (Group) Co. Ltd. Non-bank financials -4% -2% 64 000776 CH Yan Bian Highway Constr Shares Non-bank financials -5% -29% 65 1387 HK Renhe Commercial Holdings Co. Ltd. Property -4% 7% 57 601808 CH China Oilfield Svcs (A) Oil and gas -5% -32% 61 939 HK China Constr Bank (H) Banks -4% -10% 35 600104 CG SAIC Motor Autos -5% 25% 73 151 HK Want Want China Staples -4% 12% 61 000402 CH Finl Street Property -5% 11% 55 3988 HK Bank of China (H) Banks -4% -9% 41 000800 CH FAW Car Autos -4% -8% 73 2600 HK Aluminum Corp of China (H) Steel -3% -9% 54 600068 CH Gezhouba Industrials -4% 1% 81 322 HK Tingyi Cayman Islands Staples -3% 21% 68 600166 CH Beiqi Foton Motor Autos -4% -24% 75 753 HK Air China (H) Transportation -3% -9% 72 600585 CH Anhui Conch Cement (A) Building materials -4% 38% 71 Price performance, 2011E earnings and valuation changes of MSCI China Price performance, 2011E earnings and valuation changes of CSI 300 index index (HKD), past 4 weeks (CNY), past 4 weeks

10% 8% Earnings change Earnings change 8% Valuation change Valuation change 6% Price performance 6% Price performance

4% 4%

2% 2% 0%

-2% 0%

-4% -2% -6%

-8% -4% I.T. I.T. Telcos Telcos Energy Energy Utilities Utilities 300CSI Materials Materials Financials Financials Industrials Industrials Cons. Disc. Health care Cons. Stap. Cons. Disc. Health care MSCI China MSCI Cons. Stap.

Source: CSI, FactSet, I/B/E/S, MSCI, Goldman Sachs Global ECS Research.

Goldman Sachs Global Economics, Commodities and Strategy Research 5 July 9, 2011 China

MSCI China movers and shakers

Performance Contribution Contribution % Sector 1 wk 2 wk 3 wk 4 wk 1 wk 2 wk 3 wk 4 wk 1 wk 2 wk 3 wk 4 wk Building materials, paper, packaging 8.6% 9.7% 21.5% 18.9% 0.3% 0.3% 0.7% 0.6% 12.3% 8.7% 9.0% 14.0% Property 8.6% 11.0% 19.1% 13.1% 0.5% 0.7% 1.1% 0.8% 23.0% 19.1% 15.2% 18.1% Computer hardware/assemblers 5.7% 7.9% 9.3% 6.3% 0.1% 0.1% 0.1% 0.1% 3.2% 2.8% 1.6% 1.9% Autos and components 3.7% 6.5% 20.5% 16.7% 0.1% 0.2% 0.5% 0.4% 4.1% 4.5% 6.6% 9.5% Insurance and other financial services 2.9% 5.8% 10.7% 4.7% 0.2% 0.5% 0.9% 0.4% 10.8% 14.0% 11.9% 9.2% Oil and gas 2.8% 4.9% 7.3% 4.4% 0.5% 0.9% 1.4% 0.9% 24.3% 27.0% 19.2% 21.2% Diversified mining, precious metals 2.7% 4.4% 7.4% 4.0% 0.1% 0.1% 0.2% 0.1% 2.6% 2.7% 2.2% 2.0% Industrials, conglomerates, business services 2.1% 4.1% 7.7% 6.1% 0.1% 0.2% 0.4% 0.4% 5.1% 6.3% 5.6% 8.1% Retail, hotels, consumer durables and apparel 2.0% 4.6% 12.5% 5.6% 0.1% 0.2% 0.5% 0.2% 4.0% 5.4% 6.5% 5.2% Steel, aluminium 1.9% 5.4% 8.6% 4.1% 0.0% 0.1% 0.1% 0.0% 1.0% 1.7% 1.2% 1.0% Telecommunication services 1.8% 1.4% 6.9% 4.7% 0.2% 0.2% 0.8% 0.5% 9.1% 4.7% 10.2% 12.2% Consumer staples and health care 1.7% 2.1% 2.6% 2.5% 0.1% 0.2% 0.2% 0.2% 4.9% 4.4% 2.8% 4.3% Utilities 1.7% 5.7% 3.9% 1.4% 0.0% 0.1% 0.1% 0.0% 1.5% 3.2% 1.0% 0.7% Chemicals 1.6% -2.2% -10.4% -9.0% 0.0% 0.0% -0.1% 0.0% 0.5% -0.4% -0.7% -0.9% Software and services 0.7% 1.6% 12.6% 4.1% 0.0% 0.1% 0.5% 0.2% 1.4% 2.0% 7.2% 4.1% Transportation 0.7% 1.9% 8.0% 0.8% 0.0% 0.0% 0.2% 0.0% 0.8% 1.4% 2.8% 0.8% Banks -0.9% -1.3% -0.9% -2.5% -0.2% -0.3% -0.2% -0.5% -8.7% -7.5% -2.2% -11.3% MSCI China 2.1% 3.3% 7.0% 4.0% 2.2% 3.5% 7.5% 4.3% 100% 100% 100% 100%

Source: Bloomberg, FactSet, MSCI, GS Global ECS Research.

CSI 300 movers and shakers

Performance Contribution Contribution % Sector 1 wk 2 wk 3 wk 4 wk 1 wk 2 wk 3 wk 4 wk 1 wk 2 wk 3 wk 4 wk Software and services 3.7% 5.1% 8.6% 6.1% 0.0% 0.0% 0.1% 0.0% 1.1% 1.0% 0.6% 0.7% Diversified mining, precious metals 3.6% 6.4% 10.1% 4.7% 0.3% 0.5% 0.7% 0.4% 12.8% 15.3% 9.0% 6.6% Consumer staples and health care 3.4% 5.7% 9.7% 5.6% 0.4% 0.6% 1.1% 0.7% 19.4% 21.9% 14.0% 12.0% Banks 2.3% -0.7% 4.0% 2.2% 0.4% -0.1% 0.7% 0.4% 19.9% -3.7% 8.7% 7.0% Computer hardware/assemblers 2.3%5.6%9.1%7.5%0.0%0.1%0.2%0.1%2.1%3.3%2.0%2.4% Chemicals 2.2%4.0%9.5%8.8%0.1%0.1%0.2%0.2%2.7%3.3%2.9%3.9% Industrials, conglomerates, business services 2.2% 3.6% 8.7% 6.3% 0.4% 0.6% 1.4% 1.0% 18.1% 20.0% 17.3% 18.7% Transportation 2.1% 0.9% 4.5% 1.4% 0.1% 0.0% 0.2% 0.1% 3.9% 1.3% 2.2% 1.1% Autos and components 1.9%2.3%11.5%8.7%0.0%0.1%0.2%0.2%2.1%1.9%3.1%3.4% Telecommunication services 1.3% 1.2% -1.2% -4.1% 0.0% 0.0% 0.0% 0.0% 0.6% 0.4% -0.1% -0.7% Oil and gas 1.1% 5.0% 10.4% 9.0% 0.1% 0.5% 0.9% 0.8% 5.3% 15.5% 11.8% 15.1% Retail, hotels, consumer durables and apparel 1.1% 2.0% 8.0% 5.5% 0.1% 0.1% 0.4% 0.3% 3.3% 4.0% 5.6% 5.7% Property 1.0%4.7%9.8%11.7%0.1%0.2%0.5%0.6%2.6%7.9%6.0%10.4% Steel, aluminium 1.0%1.6%4.3%1.9%0.0%0.1%0.2%0.1%1.8%2.0%2.0%1.3% Utilities 0.9%0.3%1.9%-1.4%0.0%0.0%0.0%0.0%1.0%0.3%0.6%-0.5% Insurance and other financial services 0.5% 1.2% 9.1% 5.6% 0.1% 0.1% 0.9% 0.4% 2.7% 4.4% 11.8% 7.8% Building materials, paper, packaging 0.3% 1.5% 11.0% 15.1% 0.0% 0.0% 0.2% 0.3% 0.3% 1.0% 2.7% 5.2% CSI300 1.9% 2.7% 7.5% 5.0% 2.0% 2.9% 8.0% 5.5% 100% 100% 100% 100% Note: Performance move % is bottom-up compiled based on most current constituents’ weightings, which may vary from the official indices over longer time periods due to change s of constituent stocks and constituents’ weighting.

Source: Bloomberg, FactSet, CSI, GS Global ECS Research.

Goldman Sachs Global Economics, Commodities and Strategy Research 6 July 9, 2011 China

Valuations

Valuation summary for Chinese and regional equity indices

Bloomberg P/E (X) EPS growth (%)P/B (X) D/Y (%) ROAE (%) P/E (X) EPS growth (%) P/B (X) ticker 2011E 2012E 2011EConsensus 2012E estimates 2011E 2011E 2011E 2011EGoldman 2012E Sachs 2011E Research 2012Eestimates 2011E MSCI China GICS sectors (HKD) Energy MXCN0EN 10.6 9.9 24.3 6.9 2.0 3.3 20.2 9.3 8.3 40.7 11.7 1.8 Materials MXCN0MT 12.1 10.2 51.4 17.9 2.0 1.8 17.7 12.0 9.9 51.0 21.5 1.8 Chemicals 12.2 10.7 22.4 14.2 1.8 2.2 16.1 11.9 11.2 24.2 5.8 1.7 Construction materials 11.4 9.3 100.0 23.3 3.0 1.4 29.6 12.4 9.6 84.4 29.6 2.5 Metals and mining 12.6 11.1 32.7 13.0 1.6 2.0 13.4 11.7 9.9 41.8 18.4 1.4 Industrials MXCN0IN 11.2 9.5 0.6 17.8 1.4 2.4 13.5 10.6 9.2 3.9 15.9 1.3 Capital goods 10.7 9.1 14.8 17.6 1.5 2.2 15.4 17.1 14.9 13.1 14.7 1.8 Transportation 13.2 11.2 (23.5) 18.2 1.3 2.6 10.2 11.0 9.9 (11.1) 11.3 1.1 Consumer discretionary MXCN0CD 16.0 13.3 12.5 20.6 3.0 1.7 20.2 16.4 13.6 9.1 20.1 2.9 Consumer durables 11.1 9.9 3.1 11.7 2.1 4.8 20.0 10.5 9.6 8.7 9.8 2.1 Retailing 24.9 20.0 28.7 24.7 4.5 1.4 19.5 24.2 19.3 29.9 25.0 4.6 Consumer staples MXCN0CS 17.9 14.7 21.9 21.5 3.1 1.9 18.6 17.9 14.8 9.8 20.7 3.0 Food beverage and tobacco 14.6 12.1 25.3 20.6 2.8 2.0 20.3 14.6 12.1 25.3 20.6 2.8 Household products 30.5 23.9 20.3 27.5 7.7 2.1 26.5 30.5 23.9 20.3 27.5 7.7 Financials MXCN0FN 9.7 8.0 20.1 20.9 1.7 3.5 18.9 9.7 7.8 20.3 23.5 1.7 Banks 8.0 6.8 23.1 18.5 1.5 4.6 20.9 7.9 6.5 27.3 20.9 1.5 Diversified financials 12.1 14.9 6.1 (18.2) 0.9 2.1 7.7 18.1 16.0 (20.5) 13.2 0.8 Insurance 19.9 15.8 18.2 26.4 3.0 1.3 16.4 21.9 14.6 7.5 50.2 3.0 Real estate 10.0 7.8 9.9 29.0 1.4 2.7 15.0 9.8 8.3 3.7 18.8 1.3 Information technology MXCN0IT 20.0 16.3 45.9 22.2 4.1 0.9 23.0 19.0 16.2 51.5 17.5 4.0 Telecommunication services MXCN0TC 12.4 11.4 9.2 8.5 1.7 3.5 14.8 12.4 12.0 8.2 3.1 1.7 Diversified telecom 28.0 20.0 27.1 39.8 1.4 1.3 5.2 29.2 20.9 22.6 39.8 1.4 Wireless telecom 10.2 9.6 7.1 4.1 1.9 4.4 19.9 10.1 10.3 6.5 (1.8) 1.9 Utilities MXCN0UT 14.3 11.8 17.8 21.4 1.5 2.3 10.7 15.6 11.8 2.8 32.3 1.2 CSI 300 CICS sectors (CNY) Energy SH000908 18.5 15.6 22.5 19.0 3.3 1.9 19.2 18.9 14.8 22.3 27.6 3.1 Materials SH000909 32.9 20.2 74.3 62.9 3.4 0.9 10.7 32.9 20.3 74.2 61.8 3.2 Industrials SH000910 19.2 15.2 52.4 26.2 2.8 1.0 16.4 19.5 15.6 49.4 24.7 2.8 Consumer discretionary SH000911 17.8 14.3 45.9 22.6 3.2 1.1 19.7 18.5 15.3 26.4 19.6 3.1 Consumer staples SH000912 40.4 28.0 23.2 42.0 7.8 0.8 21.2 40.4 28.0 23.2 42.0 7.8 Health care SH000913 29.8 23.3 7.7 27.8 5.7 0.8 20.8 29.9 23.7 6.1 25.7 5.6 Financials SH000914 11.6 9.7 26.1 19.9 2.0 1.9 18.5 11.7 9.7 28.7 20.6 1.9 Information technology SH000915 72.9 26.7 (24.6) 34.6 3.6 1.1 5.4 72.4 26.8 (24.5) 33.4 3.6 Telecommunication services SH000916 42.2 27.3 (18.1) 54.6 1.4 0.7 4.1 41.6 32.0 (17.5) 29.7 1.0 Utilities SH000917 17.8 16.4 18.0 4.3 1.9 2.2 10.3 18.8 17.8 12.3 1.7 1.7

Source: CSI, FactSet, I/B/E/S, MSCI, Goldman Sachs Global ECS Research, Goldman Sachs Research estimates.

Goldman Sachs Global Economics, Commodities and Strategy Research 7 July 9, 2011 China

Valuation summary for MSCI China/CSI 300 sectors

Consensus estimates Goldman Sachs Research estimates Local Bloomberg P/E (X) EPS growth (%)P/B (X) D/Y (%) ROE (%) P/E (X) EPS growth (%) P/B (X) currency ticker 2011E 2012E 2011E 2012E 2011E 2011E 2011E 2011E 2012E 2011E 2012E 2011E MSCI markets (unless otherwise stated) Australia AUD MXAU 12.5 11.1 13.8 13.1 1.8 4.5 15.2 14.0 11.5 22.3 21.2 1.9 China Offshore HKD MXCN 11.5 9.9 20.0 16.5 1.9 2.9 17.9 11.1 9.4 22.6 17.8 1.8 China Offshore CNY 11.4 10.0 15.0 14.6 1.9 2.9 17.9 11.1 9.6 17.6 15.9 1.8 China A shares CNY SHSZ300 13.9 11.5 25.3 21.2 2.3 1.8 17.8 14.1 11.6 25.6 21.4 2.2 China H shares HKD HSCEI 10.4 8.9 22.3 16.8 1.8 3.1 18.2 10.0 8.3 26.8 20.7 1.7 China red chips HKD HSCCI 14.1 12.0 7.8 17.7 1.7 2.2 13.0 13.5 11.8 5.4 14.2 1.5 China Offshore ex oils HKD 11.7 9.9 18.9 18.8 1.9 2.8 17.4 11.7 9.8 18.3 19.5 1.8 China Offshore ex oils, telcos HKD 11.6 9.7 20.5 20.4 1.9 2.6 17.9 11.6 9.5 20.0 21.9 1.8 Golden Dragon USD MXGD 12.8 11.2 19.1 13.9 1.8 3.2 14.8 12.7 10.9 8.3 16.1 1.7 Zhong Hua USD MXZH 12.1 11.0 21.0 10.5 1.8 2.8 15.3 11.8 10.5 8.9 12.3 1.6 FTSE ST China SGD FSTC 14.8 13.2 (20.6) 13.8 1.3 2.0 8.6 14.3 12.9 (61.8) 12.5 1.2 Hong Kong HKD MXHK 13.9 14.7 24.3 (6.0) 1.5 2.7 11.0 13.6 14.1 (16.1) (3.4) 1.3 India INR MXIN 16.0 13.6 17.3 17.0 2.7 1.3 18.2 15.5 13.5 18.8 16.2 2.6 Indonesia IDR MXID 15.1 12.9 19.6 17.1 3.7 2.6 26.7 15.1 13.1 19.9 15.4 3.4 Japan JPY MXJP 15.4 12.5 24.9 22.9 1.1 2.2 7.2 15.7 12.7 13.7 23.2 1.0 Korea KRW MXKR 10.2 9.0 12.4 13.0 1.4 1.3 14.0 10.1 9.0 16.3 12.2 1.3 Malaysia MYR MXMY 15.9 14.1 0.9 13.1 2.2 3.3 14.5 15.8 13.9 4.6 14.4 2.1 Philippines PHP MXPH 15.7 13.9 6.9 13.0 2.6 2.8 17.0 15.6 13.9 7.4 12.8 2.6 Singapore Free SGD SGY 14.7 13.5 5.9 9.0 1.7 3.3 12.1 14.4 12.8 4.8 12.1 1.6 Taiwan TWD MXTW 14.5 11.8 5.2 21.7 1.9 4.1 13.4 15.2 11.9 (1.8) 26.0 1.8 Thailand THB MXTH 12.4 10.8 17.2 14.4 2.2 3.4 18.5 11.9 10.4 18.9 14.3 2.1 AC Asia Pacific USD MXAP 13.7 11.7 25.4 16.4 1.4 2.7 11.0 13.9 11.7 20.2 18.3 1.4 AC Asia Pacific ex Japan USD MXAPJ 12.8 11.3 21.6 12.8 1.8 3.1 14.9 13.0 11.3 19.5 15.5 1.8 AC Asia ex Japan USD MXASJ 12.8 11.2 18.9 13.4 1.8 2.6 14.9 12.6 11.0 14.4 14.4 1.7 AC Far East ex Japan USD MXFEJ 12.5 11.0 18.9 13.4 1.7 2.7 14.6 12.3 10.7 13.9 14.6 1.6 USA USD MXUS 14.0 12.1 15.5 15.2 2.2 1.9 15.9 Europe USD MSDUE15 11.1 9.9 18.1 12.4 1.5 3.8 14.1 EAFE USD MXEA 12.0 10.6 21.3 13.6 1.4 3.5 12.1 World (developed mkt.) USD MXWO 13.0 11.4 19.0 14.4 1.7 2.6 13.7 Emerging Markets USD MXEF 11.6 10.3 19.7 12.7 1.8 2.8 15.2 AC World USD MXWD 12.8 11.2 19.1 14.1 1.7 2.6 13.6 Comparison China Offshore HKD MXCN 11.5 9.9 20.0 16.5 1.9 2.9 17.9 11.1 9.4 22.6 17.8 1.8 AC Asia Pacific ex Japan USD MXAPJ 12.7 11.2 21.6 12.8 1.8 3.1 14.9 Regional ex-China USD 13.2 11.7 13.3 11.4 1.9 3.2 14.8 13.6 11.8 10.6 15.7 1.8

Difference % (China over regional ex-China) (12.9) (15.9) 50 44.3 1.2 (9.9) 20.7 (18.3) (19.7) 113 13.2 (1.0) Favorable? √ √ √ √ хх √ √ √ √ √ √

Source: CSI, FactSet, I/B/E/S, MSCI, Goldman Sachs Global ECS Research, Goldman Sachs Research estimates.

Goldman Sachs Global Economics, Commodities and Strategy Research 8 July 9, 2011 China

12-month forward P/E and P/B for MSCI China, past 1 year 12-month forward P/E and P/B for CSI 300, past 1 year

MXCN 12m fP/E MXCN 12m fP/B (RHS) CSI300 12m fP/E CSI300 12m fP/B (RHS) 26 4.5 40 8

24 4.0 35 7 22 6 20 3.5 30

5 18 3.0 25 16 4 2.5 20 14 P/E: 10.4; P/B:1.7 P/E:12.1; P/B:2.0 3

12 2.0 15 2 10 1.5 10 1 8

6 1.0 5 - -08 -06 t t Oct-10 Feb-11 Oct-09 Oct-07 Oc Jun-11 Oc Feb-10 Mar-11 Feb-09 Jun-10 Feb-07 Feb-08 Jun-11 Mar-10 Jun-09 Jun-07 Jun-08 Jun-06 Jun-10 Dec-10 Jun-06 Jun-07 Jun-08 Jun-09 Sep-10 Dec-06 Mar-07 Dec-07 Mar-08 Dec-08 Mar-09 Dec-09 Sep-06 Sep-07 Sep-08 Sep-09

Current 12-month forward P/E vs.1-year range, based on MSCI China index Current 12-month forward P/E vs.1-year range, based on CSI 300 index

12M forward P/E (X) High/low +/- 1 Std.dev. Current 12M forward P/E (X) High/low +/- 1 Std.dev. Current 70 70 5 years historical data used 5 years historical data used 60 60

50 50

40 40

30 30 29.3 29.9 20 24.9 20 23.5 21.3 22.4 16.6 17.3 10 16.8 18.0 10 16.1 15.4 13.9 13.813.8 13.6 15.2 15.5 10.4 10.6 12.5 10.5 11. 6 11. 8 12.5 12.1 11. 1 11. 9 9.7 9.8 9.2 9.8 8.0 9.3 8.8 0 7. 2 0 6.5 … Auto Auto Banks Banks Media Teleco Teleco CSI300 MXCN MXCN Utilities Utilities Property Property Insurance Insurance Chemicals Chemicals Industrials Industrials Oil and Oil gas Oil and Oil gas Discretionary Discretionary Metals/Mining Transportation Metals/Mining Transportation Steel, aluminium Steel, aluminium Steel, Building materials Building materials Building Staples and health and Staples Computer hardware Computer Computer hardware Computer Software and services Software Software andservices

and health Staples care

Source: CSI, FactSet, I/B/E/S, MSCI, Goldman Sachs Global ECS Research.

Goldman Sachs Global Economics, Commodities and Strategy Research 9 July 9, 2011 China

Earnings momentum and revision

MSCI China sector ranking by earnings revision, past four weeks CSI 300 sector ranking by earnings revision, past four weeks

12M EPS sentiment (Bottom) 11E EPS revision (Top) 12M EPS sentiment (Bottom) 11E EPS revision (Top) -6% -4% -2% 0% 2% 4% 6% -5% -3% -1% 1% 3% 5% 7% 9%

MSCI China CSI 300

Materials Health Care

Cons. Stap. Cons. Stap.

Energy Financials

Financials Materials

Telecom Cons. Disc.

I.T. Energy

Cons. Disc. Industrials

Utilities I.T.

Industrials Utilities

Health Care Telecom

-15% -10% -5% 0% 5% 10% 15% -9% -4% 1% 6% 11% 16%

Top- and bottom-10 ranking China offshore-listed stocks last week by Top- and bottom-10 ranking domestic-listed stocks last week by earnings earnings momentum (EM) (listed market cap > US$3 bn) momentum (EM) (listed market cap > US$3 bn)

Ticker Stock name GS sector 1W EM 1W Perf 2011 EM Ticker Stock name GS sector 1W EM 1W Perf 2011 EM Top 10 Top 10 151 HK Want Want China Staples 13% -4% -15% 600010 CG Inner Mongolian Baotou Steel Union Steel 20% -3% 30% 691 HK China Shanshui Cement Group Co. Ltd. Building materials 12% 4% 81% 600058 CG Minmetals Dev Industrials 16% -3% 24% 914 HK Anhui Conch Cement (H) Building materials 11% 4% 117% 000623 CS Jilin Aodong Medicine Ind Staples 15% -1% N/A 316 HK Orient Overseas Intl Transportation 8% 0% -13% 600111 CG Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Mining 14% -6% 176% 1833 HK Intime Dept Store Consumer 8% 1% 12% 000625 CH Chongqing (A) Autos 11% -4% -5% 1208 HK Minmetals Resources Mining 5% -2% N/A 600307 CH Gansu Jiu Steel Hongxing Iron & Steel Steel 9% 0% 7% 1313 HK China Resources Cement Holdings Ltd. Building materials 5% 5% 32% 600307 CH Gansu Jiu Steel Hongxing Iron & Steel Steel 9% 0% 7% 3800 HK GCL Poly Energy Semiconductors 5% -1% 90% 000709 CS Tangshan Iron & Steel Steel 7% -1% 5% 3323 HK China National Building Mat Building materials 5% 6% 95% 601118 CH Hainan Rubber Industry Group Co. Ltd. Chemicals 5% -1% N/A 1898 HK China Coal Energy (H) Oil and gas 3% 2% -24% 002304 CS Jiangsu Yanghe Brewery JSC Ltd. Staples 5% 2% 21% Bottom 10 Bottom 10 SINA UW Sina Software -19% 2% -51% 000937 CS Hebei Jinniu Energy & Resources Oil and gas -5% 0% -1% 2689 HK Nine Dragons Paper Building materials -13% 0% -30% 600208 CG Xinhu Zhongbao Property -5% 0% -11% 2600 HK Aluminum Corp of China (H) Steel -5% -3% -4% 000895 CS Henan Shuanghui Inv & Dev Staples -5% 4% 38% 322 HK Tingyi Cayman Islands Staples -3% -3% -3% 601899 CG Zijin Mining (A) Mining -5% 0% -11% 358 HK Jiangxi Copper (H) Mining -3% 1% 49% 600030 CH Citic Sec Non-bank financials -5% -1% -3% 3968 HK China Merchants Bank (H) Banks -3% 0% 5% 000983 CS Shanxi Xishan Coal & Electricity Power Oil and gas -5% -3% -18% 992 HK Lenovo IT hardware -2% 3% -4% 600875 CH Dongfang Electric (A) Industrials -5% 0% 6% 762 HK China Unicom Telecoms -2% -2% -33% 000728 CH Guoyuan Sec Non-bank financials -3% -2% -5% 998 HK China Citic Bank (H) Banks -2% 0% 15% 601992 CH BBMG Corp. Building materials -3% -3% 2% 489 HK Dongfeng Motor Autos -2% -2% -5% 600005 CG Wuhan Iron & Steel Steel -3% -1% -16% Note: Ranking for markets and sectors are based on average of percentile ranks of earnings momentum and earnings revisions. Earnings momentum is the % change of the calendarized consensus median EPS estimate. Earnings revisions is a market cap- weighted index of sell-side analyst earnings upgrades/downgrades for individual stocks, adjusted by the number of companies in the index. Individual stock revision 7= (no. of revisions up – no. of revisions down)/no. of analysts.

Source: CSI, FactSet, I/B/E/S, MSCI, Goldman Sachs Global ECS Research.

Goldman Sachs Global Economics, Commodities and Strategy Research 10 July 9, 2011 China

Turnover and velocity

Average daily value traded (ADVT), in US$ mn Top 20 stocks ranked by short-selling volume as % of total share volume, past 1 week (US$ mn) 35,000 Year-to-date avg. daily turnover Last week avg. daily turnover Total vol Short vol Ticker Stock name GS sector ('000 shrs) ('000 shrs) Short vol as % total 29,324 30,000 Week-to-date avg. daily turnover 1919 HK China COSCO (H) Transportation 73,683 34,426 46.7 3368 HK Parkson Retail Consumer 21,084 8,055 38.2 25,000 2020 HK Anta Sports Products Consumer 49,290 18,430 37.4 347 HK Angang Steel (H) Steel 72,881 27,140 37.2 20,000 410 HK Soho China Property 46,025 15,988 34.7 15,000 522 HK ASM Pacific Tech Semiconductors 3,502 1,172 33.5 762 HK China Unicom Telecoms 114,948 34,900 30.4 9,655 9,807 10,000 737 HK Hopewell Highway Infrastructure Transportation 1,084 327 30.2 1211 HK Byd IT hardware 46,497 12,944 27.8 2,996 5,000 1766 HK China South Locomotive (H) Industrials 56,765 15,403 27.1 104 713 629 0 1688 HK Alibaba.com Software 42,835 11,468 26.8 2777 HK Guangzhou R&F Prop Property 90,812 23,614 26.0 A shares B shares HSCEI (H HSCCI (red SEHK HK Short HK Warrants 1833 HK Intime Dept Store Consumer 21,971 5,567 25.3 (SH+SZ) (SH+SZ) shares) chips) (MB+GEM) Selling 168 HK Tsingtao Brewery (H) Staples 7,637 1,878 24.6 Annualized velocity of H shares and HSCEI index 1988 HK China Minsheng Banking Corp Ltd Banks 94,077 22,483 23.9 2038 HK Foxconn Intl IT hardware 29,293 6,867 23.4 2343 HK Pacific Basin Shipping Transportation 30,383 6,777 22.3 682 HK Chaoda Modern Agriculture Staples 87,502 18,902 21.6 Annualized velocity HSCEI (RHS) Index level 600% 22000 2727 HK Shanghai Electric Industrials 55,688 12,012 21.6 20000 323 HK Maanshan Iron & Steel (H) Steel 58,253 12,512 21.5 500% 18000 A-share releases in the coming week 16000 Releasing As % of Non-tradable 400% Releasing Source of Bloomberg Stock market cap freefloat market cap 14000 date release (USD mn) market cap (USD mn) 300% 12000 600755 CG Xiamen International Trade Group Corp 11-07-2011 NTS 121.6 35% 0.1 10000 000753 CS Fujian Zhangzhou Development Co Ltd 14-07-2011 NTS 28.3 9% 0.0 200% 000701 CS Xiamen Xindeco Co Ltd 28-07-2011 NTS 72.8 22% 0.1 8000 600723 CG Beijing Xidan Department Store Co Ltd 02-08-2011 NTS 190.5 29% 3.2 100% 6000 000623 CS Jilin Aodong Medicine Industry Groups Co Ltd 04-08-2011 NTS 55.2 2% 487.0 4000 600398 CG Canal Scientific & Technological Co Ltd 05-08-2011 NTS 20.0 9% 23.7 000948 CS Yunnan Nantian Electronics Information Co Ltd 07-08-2011 NTS 88.3 43% 0.0 0% 2000 000666 CS Jingwei Textile Machinery 08-08-2011 NTS 296.8 48% 0.1 600143 CG Kingfa Sci & Tech Co Ltd 09-08-2011 NTS 219.8 16% 263.9 002150 CS Jiangsu Tongrun Equipment Technology Co Ltd IPO lock-up expiry -04 -06 10-08-2011 1.1 1% 2.2 r r 002019 CS Zhejiang Hangzhou Xinfu Pharmaceutical Co Ltd 12-08-2011 NTS 213.4 60% - Mar-11 Jun-11 Jun-10 Mar-10 Dec-10 Ma Mar-09 Ma Mar-08 Mar-05 Mar-07 Dec-03 Dec-09 Sep-10 Dec-08 Jun-09 Dec-05 Dec-07 Jun-08 Dec-04 Jun-05 Dec-06 Jun-07 Jun-04 Jun-06 Sep-03 Sep-09 Sep-08 Sep-05 Sep-07 Sep-04 Sep-06 600079 CG Wuhan Humanwell Healthcare Group Co Ltd 19-08-2011 NTS 33.8 3% 157.7 600098 CG Guangzhou Development Industry Holdings Co 22-08-2011 NTS 1,213.5 135% 266.2 Annualized velocity of all A shares (SH+SZ) and CSI 300 index Note: NTS = Non-tradable shares ; P.P. = private placement

Annualized velocity CSI 300 (RHS) Index level 600% 6500 500% 5500 400% 4500 300% 3500 200% 2500 100% 1500 0% 500 -05 -06 -09 r r r Jun-11 Mar-11 Jun-10 Mar-10 Dec-10 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Sep-10 Ma Sep-05 Ma Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Ma Sep-09

Note: Turnover velocity is defined as the annualized turnover divided by market cap.

Source: CSI, Bloomberg, FactSet, HKEx, Wind, Goldman Sachs Global ECS Research.

Goldman Sachs Global Economics, Commodities and Strategy Research 11 July 9, 2011 China

FX, rates, and commodities

Major commodities futures SHIBOR and China sovereign bond yield (percentage pa)

Price change (%) Commodity Bloomberg Unit Curncy Last Close 1-wk 1-mo 3-mo YTD Rates BloombergyLast Closek 1-mo Currenc1-w 3-mo YTD 1-wk 1-mo 3-mo YTDD 1-wk 1-mo 3-mo YT Shipping SHIBOR Baltic Dry Bulk Index BDIY Index N/A USD 1,453.0 2.18 (0.21) 3.71 (18.05) SHIBOR - 1D SHIFON Index CN Y 4.998 26.86 133.20 323.20 47.66 5.68 36.33 182.98 10.54 4.73 3.67 1.77 4.52 Oil spots SHIBOR - 1 W SHIF1W IndexY 6.254 CN 30.59 254.42 378.50 (13.25) 5.14 68.58 153.29 (2.07) 5.95 3.71 2.47 6.39 WTI USCRWTIC Comdty per barrel USD 98.7 3.93 (0.42)SHIBOR (10.54) - 2 7.98 W SHIF2W IndexY 6.418 CN 15.00 218.66 352.11 (9.42) 2.39 51.67 121.53 (1.45) 6.27 4.23 2.90 6.51 Brent EUCRBRDT Comdty per barrel USD 117.8 5.75 0.30SHIBOR (7.07) - 1M 24.90 SHIF1M Index CN Singapore Jet JETKSIFC Comdty per barrel USD 126.7 1.85 (1.17) (8.92) 21.37 Y 5.889 (138.35) 102.25 236.75 (27.98) (19.02) 21.01 67.23 (4.54) 7.27 4.87 3.52 6.17 SHIBOR - 3M SHIF3M Index CN Metals (nearby) Y 6.306 (8.10) 165.14 205.26 168.23 (1.27) 35.48 48.26 36.39 6.39 4.65 4.25 4.62 SHIBOR - 6M SHIF6M Index CN CMX Gold GC1 Comdty per oz. USD 1,527.7 3.04 (0.68) 3.69 7.48 Y 5.233 1.73 46.52 67.30 167.14 0.33 9.76 14.76 46.93 5.22 4.77 4.56 3.56 SHIBOR - 9M SHIF9M Index CN Y 5.168 6.00 37.71 47.83 157.40 1.17 7.87 10.20 43.79 5.11 4.79 4.69 3.59 LME Copper LP1 Comdty per ton USD 9,728 3.08 6.56 0.76 0.87 Yield change (bp) Price change (%) SHIBOR - 12M SHIF1Y Index CN LME Aluminum (high grade) LA1 Comdty per ton USD 2,565 3.46 (3.72) (3.05) 4.30 Y 5.198 5.73 30.80 41.69 156.66 1.11 6.30 8.72 43.14 5.14 4.89 4.78 3.63 Sovereign Bond Shanghai Gold AUA1 Comdty per gram CNY 274.7 (12.81) (1.13)China 5.00 Sovereign 6.06 - 3M C0203M Index CN Shanghai Copper CU1 Comdty per ton CNY 59,800 (14.67) 4.82 (0.77) 2.16 Y 3.300 (2.00) 39.99 57.99 52.01 (1.49) 13.79 21.32 18.71 3.32 2.90 2.72 2.78 China Sovereign - 6M C0206M Index CN Shanghai Aluminum AA1 Comdty per ton CNY 15,425 (10.84) 2.60 5.59 6.88 Y 3.350 (2.00) 39.01 56.99 51.01 (1.76) 13.18 20.50 17.96 3.37 2.96 2.78 2.84 China Sovereign - 12M C0201Y Index CN Shanghai Steel Wire WRT1 Comdty per ton CNY 4,321 (6.07) (3.10) (5.76) (2.13) Y 3.440 (2.00) 40.01 59.00 42.01 (1.43) 13.16 20.70 13.91 3.46 3.04 2.85 3.02 Shanghai Rebar RBT1 Comdty per ton CNY 4,326 (17.32) 3.45China 8.52 Sovereign 5.28 - 2 Y C0202Y IndexY 3.450 CN (2.00) 27.00 27.99 10.02 (1.15) 8.49 8.83 2.99 3.47 3.18 3.17 3.35 Agriculture (nearby) China Sovereign - 3 Y C0203Y IndexY 3.440 CN (2.00) 9.99 9.99 4.98 (0.29) 2.99 2.99 1.47 3.46 3.34 3.34 3.39 NYB Cotton CT1 Comdty per lbs. USD 119.2 (26.15) (17.82)China (41.27) Sovereign (17.69) - 4 Y C0204Y IndexY 3.490 CN (2.00) 6.00 (1.02) 0.00 (1.41) 1.75 (0.29) 0.00 3.51 3.43 3.50 3.49 NYB Sugar SB1 Comdty per lbs. USD 29.4 7.89 17.84China 14.58 Sovereign (8.47) - 5 Y C0205Y IndexY 3.480 CN 2.00 5.99 (1.01) (13.00) 0.29 1.75 (0.29) (3.60) 3.46 3.42 3.49 3.61 CBOT Soybean Meal SM1 Comdty per ton USD 343.0 0.62 (7.99)China (3.98) Sovereign (7.37) - 7 Y C0207Y IndexY 3.830 CN 1.00 10.00 4.99 10.00 1.32 2.68 1.32 2.68 3.82 3.73 3.78 3.73 CBOT Soybean Oil BO1 Comdty per 100 gal. USD 56.5 2.37 (2.52)China (3.17) Sovereign (2.20) - 8 Dalian Corn AC1 Comdty per ton CNY 1,986.0 (10.58) (4.48) (0.18) 10.50 Y C0208Y IndexY 3.880 CN 2.00 10.02 3.99 10.02 1.04 2.65 1.04 2.65 3.86 3.78 3.84 3.78 China Sovereign - 9 Dalian Soybean AK1 Comdty per ton CNY 3,852.0 (6.41) 1.85 (1.67) 5.17 Y C0209Y IndexY 3.900 CN 2.00 7.01 (2.99) 5.00 0.52 1.83 (0.76) 1.30 3.88 3.83 3.93 3.85 China Sovereign - 10Y C02010Y Index CN Dalian Soy Meal AE1 Comdty per ton CNY 3,369.0 10.46 2.87 (3.17) (8.98) Y 3.930 2.00 5.01 (4.01) 0.00 0.51 1.29 (1.01) 0.00 3.91 3.88 3.97 3.93 Dalian Soybean Oil SH1 Comdty per ton CNY 7,890.0 (16.60) (4.52) (7.15) (6.09) Zhengzhou Wheat Strng Glu VN1 Comdty per ton CNY 2,426.0 (3.73) (1.56) (4.18) 4.39

Major Chinese Yuan exchange rate and relevant non-deliverable futures China sovereign term structure

Price change (%) (%) Spot 1-month ago 3-month ago Currency Bloomberg Last Close 1-wk 1-mo 3-mo YTD 4.5 US Dollar / Chinese Yuan USDCNY Curncy 6.465 0.01 0.17 1.10 2.20 US Dollar / Chinese Yuan - 3M NDF CCN+3M Curncy 6.445 (0.09) 0.29 0.43 1.78 4.0 US Dollar / Chinese Yuan - 6M NDF CCN+6M Curncy 6.424 (0.05) 0.14 0.16 1.40 US Dollar / Chinese Yuan - 12M NDF CCN+12M Curncy 6.381 (0.15) (0.15) (0.15) 0.90 3.5 US Dollar / Chinese Yuan - 18M NDF CCN+18M Curncy 6.336 (0.11) (0.44) (0.20) 0.44 US Dollar / Chinese Yuan - 24M NDF CCN+2Y Curncy 6.288 (0.16) (0.63) (0.61) 0.16 3.0 US Dollar index spot DXY index 75.100 1.01 1.58 0.05 (4.97) Euro / Chinese Yuan EURCNY Curncy 9.252 1.40 2.59 1.74 (4.63) 2.5 Japanese Yen / Chinese Yuan JPYCNY Curncy 0.079 0.61 2.02 (2.98) 2.45 Australian Dollar / Chinese Yuan AUDCNY Curncy 6.969 (0.07) (1.02) (0.87) (2.99) 2.0 Hong Kong Dollar / Chinese Yuan HKDCNY Curncy 0.831 0.01 0.17 1.23 2.06 Note: A positive price change in percentage terms means the latter currency appreciates against the first 1.5 currency. 1.0 3M 6M 12M 2Y 3Y 4Y 5Y 7Y 8Y 9Y 10Y Source: Bloomberg, Goldman Sachs Global ECS Research.

Goldman Sachs Global Economics, Commodities and Strategy Research 12 July 9, 2011 China

Style investing monitor

Large caps versus small caps (MSCI China) Large caps versus small caps (CSI) Relative perf. (Small cap/large cap) - RHS MSCI China (Rebased) Relative index (CSI 800/CSI 100) - RHS CSI 300 (Rebased) 450 140 700 140 400 130 600 350 130 120 500 300 110 120 250 400 100 110 200 300 90 150 200 100 100 80 100 90 50 70 0 60 0 80 Jul-10 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Oct-10 Apr-10 Jan-11 Apr-05 Oct-05 Apr-06 Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Jan-10 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jun-10 Mar-10 Dec-10 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Sep-10 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09

Growth versus value (MSCI China) Growth versus value (CSI)

Relative perf. (Growth/value) - RHS MSCI China (Rebased) Relative index (Growth/Value) - RHS CSI 300 (Rebased) 450 150 700 130 400 140 600 350 120 300 130 500 250 400 110 120 200 300 100 150 110 200 100 100 100 90 50 0 90 0 80 Jul-10 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Oct-10 Apr-10 Jan-11 Apr-05 Oct-05 Apr-06 Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Jan-10 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jun-10 Dec-10 Mar-10 Sep-10 Jun-09 Jun-08 Jun-07 Jun-06 Jun-05 Dec-09 Dec-08 Mar-09 Dec-07 Mar-08 Dec-06 Mar-07 Dec-05 Mar-06 Dec-04 Mar-05 Sep-09 Sep-08 Sep-07 Sep-06 Sep-05 Growth, value and GARP investing, by MSCI China sector Growth, value and GARP investing, by CSI300 sector

80 150

70 130 Telecom 60 Building mat 110 Mining 50

90 40 Software Hardware Building mat Mining Retail/CD Banks Chemicals 30 Utlities 70 Insurance 20 Property Industrials CS/health care 50 Steel&Aluminium CS/healthcare Chemicals EPS % Growth in 2011 EPS % Growth in in EPS % Growth 2011 10 Oil&Gas Property Banks Industrials Software Steel&Aluminium 30 0 Tel ecom Retail/CD Hardware 5 1015202530Auto Transportation 10 Utlities (10) Auto Oil&Gas Insurance

5 101520253035 (20) -10 12m fP/E (x) Transportation 12m fP/E (x)

Source: CSI, FactSet, MSCI, I/B/E/S, Goldman Sachs Global ECS Research.

Goldman Sachs Global Economics, Commodities and Strategy Research 13 July 9, 2011 China

Macro indicators summary

Key macroeconomic indicators (monthly) Goldman Sachs proprietary macro indexes 2011 2010 May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Activity Indicators Industrial Production % chg yoy GSCA and GS China‐FCI Inde % yoy 13.3 13.4 14.8 14.1 14.1 13.5 13.3 13.1 13.3 13.9 13.4 13.7 16.5 17.8 18.1 20.7 % qoq (sa, ann) 10.9 16.3 20.5 20.8 19.6 17.8 15.2 12.5 8.9 6.7 6.4 8.3 12.3 16.1 19.0 19.4 20 102 % mom (sa) 2.7 -9.2 22.5 16.8 19.6 25.4 19.2 16.8 15.2 16.3 5.8 5.4 5.4 6.0 13.0 15.6 Nominal Retail Sales % yoy 16.9 17.1 17.4 15.8 15.8 19.1 18.7 18.6 18.8 18.4 17.9 18.3 18.7 18.5 18.0 22.1 % qoq (sa, ann) 19.1 14.6 7.3 11.2 13.9 19.5 18.9 19.6 19.2 19.9 19.4 20.0 17.9 18.5 16.8 17.7 18 GSCA (% yoy) % mom (sa) 18.1 22.2 27.1 32.0 -23.8 29.3 14.8 19.3 18.0 22.9 16.9 19.1 20.1 25.1 9.5 27.7 Fixed Asset Investment % yoy 26.7 26.1 25.1 24.9 24.9 21.9 29.1 23.6 22.8 24.2 22.3 24.6 25.4 25.5 26.3 26.6 GS China FCI (RHS, inverted) % qoq (sa, ann) 35.5 32.9 29.8 26.9 24.1 21.0 18.1 16.7 18.2 22.6 28.5 33.7 35.9 33.8 28.4 21.9 16 104 % mom (sa , ann) 37.6 38.1 36.8 33.0 29.3 26.5 24.9 21.8 16.9 13.9 16.0 21.5 29.3 36.3 39.7 36.5 Price Indicators Consumer Price Index % yoy 5.5 5.3 5.4 4.9 4.9 4.6 5.1 4.4 3.6 3.5 3.3 2.9 3.1 2.8 2.4 2.7 14 % qoq (sa, ann) 5.2 4.5 4.9 5.7 8.0 8.3 7.4 5.3 4.1 3.3 3.1 3.2 2.8 3.0 3.2 4.0 % mom (sa, ann) 5.7 3.5 6.4 4.9 5.1 -0.8 14.9 10.4 5.0 5.6 5.1 0.6 3.9 4.6 0.5 5.2 Producer Price Index % yoy 6.8 6.8 7.3 7.2 6.6 5.9 6.1 5.0 4.3 4.3 4.8 6.4 7.1 6.8 5.9 5.4 12 106 % qoq (sa, ann) 6.2 11.6 18.1 20.4 19.1 12.1 5.6 -0.6 -3.5 -3.1 -0.6 2.5 4.5 8.0 12.6 14.6 % mom (sa, ann) 0.8 -0.5 4.3 12.4 20.5 20.9 33.2 3.8 7.4 1.1 -10.2 -5.1 1.2 5.5 1.8 5.2

2011 2010 10 May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Trade Indicators Exports % yoy 19.4 29.9 35.8 2.4 37.6 17.9 34.9 22.8 25.1 34.3 38.0 43.9 48.4 30.4 24.2 45.6 % qoq (sa, ann) 40.7 41.0 43.6 40.1 43.5 28.7 8.6 -10.3 -1.7 25.4 54.1 37.3 8.8 15.2 39.8 79.1 8 108 % mom (sa, ann) 23.0 26.1 47.4 44.0 69.0 -5.9 98.1 56.0 -9.2 -17.0 -17.8 -24.4 355.4 67.5 -60.1 42.8 Imports % yoy 28.4 21.8 27.3 19.6 51.2 25.9 38.3 25.6 24.3 35.4 22.9 33.9 48.3 49.9 66.3 45.1 6 % qoq (sa, ann) -4.6 19.2 58.2 94.6 103.9 95.6 56.2 26.0 -3.9 -13.5 -10.6 2.7 16.5 31.1 49.3 81.2 % mom (sa, ann) 35.6 -34.9 -31.4 39.3 84.0 75.6 153.7 156.4 -0.5 115.3 -31.7 -33.1 5.0 -19.4 57.3 34.0 Trade Balance means financial USD bn 13.0 11.4 0.1 -7.5 6.3 12.7 22.4 26.8 16.6 19.8 28.5 20.2 19.4 1.4 -7.4 7.3 4 conditions loosening 110 Financial Indicators M2 % yoy 15.1 15.3 16.6 15.7 17.2 19.7 19.5 19.3 19.0 19.2 17.6 18.5 21.0 21.5 22.5 25.5 2 % qoq (sa, ann) 17.3 16.7 15.9 9.5 12.4 17.1 17.9 20.6 17.4 15.9 11.7 16.0 19.8 24.6 28.7 24.7 % mom (sa, ann) 14.3 3.6 36.3 12.6 1.5 15.1 21.5 14.9 17.3 30.3 6.0 12.8 16.7 18.5 24.2 31.4 CNY Loans % yoy 17.1 17.5 17.9 17.7 18.5 19.9 19.8 19.3 18.5 18.6 18.4 18.2 21.5 22.0 21.8 27.2 0 112 % qoq (sa, ann) 12.5 12.7 16.6 16.1 18.5 21.0 22.5 23.2 17.9 17.6 15.9 16.2 14.8 16.5 24.7 24.7 % mom (sa, ann) 16.7 10.6 10.4 17.1 22.6 8.8 24.6 30.8 12.8 26.9 14.4 11.9 21.5 15.2 8.1 27.0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 FX Reserves USD bn 3,045 2,991 2,932 2,847 2,768 2,761 2,648 2,548 2,539 2,454 2,440 2,491 2,447 2,425

GS economic forecasts

2009 2010 2011E 2012E Real GDP Growth (%) 9.2 10.3 9.4 9.2 Domestic Demand (%) 14.1 9.8 8.7 9.0 Private Consumption 9.0 5.9 6.8 7.5 Government Consumption 8.9 12.9 8.0 7.8 Fixed Investment 23.3 11.8 10.4 10.5 Net Exports (contribution to growth) (%) -3.6 0.9 1.1 0.7 Exports -17.1 30.3 18.0 18.5 Imports -14.5 31.3 17.8 19.0

CPI Inflation (period average) (%) -0.7 3.3 4.7 3.0 US$/CNY exchange rate 6.8 6.6 6.3 5.9

Source: CSI, FactSet, MSCI, I/B/E/S, Goldman Sachs Global ECS Research estimates.

Goldman Sachs Global Economics, Commodities and Strategy Research 14 July 9, 2011 China

Key rating/target price changes from GS/GH China research team

Key changes to ratings/12-month target prices Goldman Sachs/Gao Hua Securities analysts’ revisions to ratings or target prices, ranked by target price change

Rating Quoted price Price Target price Percentage FY1 EPS estimates Percentage Bloomberg Name Current 1-week ago 7/8/2011 currency Current 1-week ago change Currency Current 1-week ago change 175 HK Geely Automobile S* S* 3.30 HKD 2.61 2.28 14% CNY 0.20 0.20 0% 600104 CG SAIC Motor B B 18.31 CNY 21.75 19.59 11% CNY 1.70 1.64 4% 489 HK Dongfeng Motor N B 15.46 HKD 15.72 14.51 8% CNY 1.21 1.20 1% 2338 HK (H) N N 46.50 HKD 46.11 42.90 7% CNY 3.59 3.59 0% 000338 CS Weichai Power (A) N N 46.21 CNY 47.26 44.22 7% CNY 3.59 3.59 0% 2333 HK Great Wall Motor N N 12.98 HKD 14.67 13.82 6% CNY 1.15 1.15 0% 2238 HK Guangzhou Auto N N 9.62 HKD 9.51 8.99 6% CNY 0.68 0.73 -8% 3808 HK Sinotruk Hong Kong B N 6.15 HKD 6.65 6.30 6% CNY 0.30 0.43 -31% 000800 CH FAW Car N N 14.74 CNY 14.35 14.96 -4% CNY 1.16 1.18 -1% 1072 HK Dongfang Electric (H) N N 29.55 HKD 30.00 31.50 -5% CNY 1.57 1.67 -6% 601998 CH China Citic Bank (A) N N 4.55 CNY 6.08 6.40 -5% CNY 0.67 0.70 -5% 600875 CH Dongfang Electric (A) N N 26.36 CNY 28.30 30.10 -6% CNY 1.57 1.67 -6% 1211 HK Byd S S 25.40 HKD 21.39 25.31 -15% CNY 0.57 0.48 17% 000063 CS ZTE (A) N N 23.49 CNY 28.00 33.60 -17% CNY 1.17 1.41 -17% 2369 HK China Wireless Tech N N 1.83 HKD 1.90 2.30 -17% HKD 0.15 0.19 -19% 658 HK China High Speed Transmission Equip N N 8.31 HKD 8.90 11.00 -19% CNY 0.75 0.92 -19% 002202 CS Xinjiang S&T S S 15.49 CNY 8.90 14.60 -39% CNY 0.56 0.91 -39% 2208 HK Xinjiang Goldwind Science & Technology Co. Ltd. S S 7.90 HKD 7.30 12.00 -39% CNY 0.56 0.91 -39% 000625 CH Chongqing Changan Automobile (A) N N 5.27 CNY 4.97 9.40 -47% CNY 0.36 0.67 -46% 200625 CH Chongqing Changan Automobile (B) S N 3.23 HKD 2.62 5.72 -54% CNY 0.36 0.67 -46% Stock ratings: B-Buy; S-Sell; N-Neutral; List memberships: B*- On Conviction Buy list; S*-On Conviction Sell List.

Source: FactSet, Goldman Sachs Research estimates, Gao Hua Securities Research estimates.

Key events

Economics data release

Expected Country Data Consensus release date US Unemployment rate Jun 9.1% 8-Jul China CPI Jun 6.2% 9-Jul China PPI Jun 6.9% 9-Jul China Industrial production Jun 13.1% 9-Jul China Retail sales Jun 17.0% 9-Jul China Fixed asset investment Jun 25.7% 9-Jul China Trade Jun US$14.2 bn 10-Jul China GDP 2Q 9.3% 13-Jul US PPI Jun 7.4% 14-Jul US Advance retail sales Jul 0.0% 14-Jul US CPI Jun 3.6% 15-Jul US Industrial production Jun 0.4% 15-Jul

Source: Bloomberg, Wind, Goldman Sachs Global ECS Research.

Goldman Sachs Global Economics, Commodities and Strategy Research 15 July 9, 2011 China

A breakdown of the Chinese alphabet soup

US$ mn Monthly Annualized % of 2010 GDP

# of active Share class Est float mkt Avg share Velocity-- Velocity-- Share class mkt Est float mkt cos cap cap 6-mo ADVT class cap Avg float cap Avg turnover float (%) float (%) cap cap A shares 2,164 4,120,492 1,509,185 31,415 1,904 697 14.5 41.6 541.2 70% 26% Shanghai 892 2,815,012 917,198 17,934 3,156 1,028 20.1 39.1 508.4 48% 16% Shenzhen 1,272 1,305,480 591,987 13,480 1,026 465 10.6 45.5 592.1 22% 10% B shares 104 29,684 24,822 100 285 239 1.0 8.0 104.4 1% 0% Shanghai 53 14,176 12,300 57 267 232 1.1 9.3 121.3 0% 0% Shenzhen 51 15,508 12,522 42 304 246 0.8 6.7 87.7 0% 0% H shares 215 701,742 413,327 2,640 3,264 1,922 12.3 12.8 166.0 12% 7% Red chips 120 578,937 212,893 1,066 4,824 1,774 8.9 10.0 130.1 10% 4% ADRs (dual-listed) 38 527,363 1,396 415 13,878 37 10.9 594.5 7,727.9 9% 0% ADRs (primary listings) 132 114,829 20,256 3,013 870 153 22.8 297.5 3,867.1 2% 0% Singapore 114 28,716 11,194 84 252 98 0.7 15.0 195.5 0% 0% P chips & others (Offshore) 503 591,316 244,603 3,987 1,176 486 7.9 32.6 423.8 10% 4% P chips & others (A shares) 403 500,914 237,437 5,720 1,243 589 14.2 48.2 626.3 9% 4% P chips & others (Hong Kong) 322 463,266 216,616 1,247 1,439 673 3.9 11.5 149.7 8% 4% SOEs (Offshore) 479 1,264,539 623,753 3,652 2,640 1,302 7.6 11.7 152.2 22% 11% SOEs (A shares) 1,761 3,619,578 1,271,748 25,695 2,055 722 14.6 40.4 525.3 62% 22% H shares + red chips 335 1,280,679 626,220 3,705 3,823 1,869 11.1 11.8 153.8 22% 11% Offshore China 982 1,855,855 868,356 7,639 1,890 884 7.8 17.6 228.7 32% 15% All China 3,146 5,976,347 2,377,541 39,054 1,900 756 12.4 32.9 427.1 102% 40% MSCI China index 147 1,398,274 691,451 3,790 9,512 4,704 25.8 11.0 142.5 24% 12% CSI 300 index 300 2,657,227 832,196 12,398 8,857 2,774 41.3 29.8 387.3 45% 14% Note: Non-tradable shares are not listed or traded publicly on organized exchanges. Market cap for such shares is calculated using available tradable share prices, which may overestimate the true economic size of the company. All of the shares issued are listed on organized exchanges (a.k.a. tradable) for red chips, P chips and others. Public float of such shares, however, varies. For stocks for which we do not have free float data, we assume 30% float on share-class number of shares. Numbers of A-share companies include those with A-H or A-B dual listings. Numbers of H-share, red-chip, P-chip and other companies include only primary listings. We refer primary listings generally as listings on foreigners-accessible boards, such as the Hong Kong Exchange and B-share board of the Mainland exchanges. Number of companies in "All China" does not include dual listings. Every effort has been made to make sure market cap data is not being double-counted. Source: FactSet, Goldman Sachs Global ECS Research.

Goldman Sachs Global Economics, Commodities and Strategy Research 16 July 9, 2011 China

A-H premium

A-share premium for all dual A/H-listed stocks, since 2000 All A/H dual-listed stocks at a glance

1400% H share Price A-share 1Y avg Average A/H Premium Total-cap weighted A/H premium Bloomberg ticker quoted A share H share premium premium A share H share currency Company name CNY Quoted % % 1200% 600876 CH 1108 HK HKD Luoyang Glass Co Ltd 12.12 3.27 346 387 600775 CH 553 HK HKD Nanjing Panda Electronics Co Ltd 7.50 2.04 343 365 600871 CH 1033 HK HKD Sinopec Yizheng Chemical Fibre Co Ltd 9.47 2.78 310 377 000585 CH 42 HK HKD Northeast Electric Development Co Ltd 4.72 1.49 281 238 1000% 600806 CH 300 HK HKD Shenji Group Kunming Machine Tool Co Ltd 12.00 4.04 258 137 000756 CH 719 HK HKD Shandong Xinhua Pharmaceutical Co Ltd 7.56 2.69 238 191 600874 CH 1065 HK HKD Tianjin Capital Environmental Protection Group Co Ltd 6.13 2.31 219 206 600860 CH 187 HK HKD Beiren Printing Machinery 7.17 2.71 218 215 800% 600688 CH 338 HK HKD Sinopec Shanghai Petrochemical Co Ltd 8.75 3.54 198 238 600329 CH TIAN SP USD Tianjin Zhong Xin Pharmaceutical Group Corp Ltd 12.22 0.65 193 212 601005 CH 1053 HK HKD Chongqing Iron & Steel Co Ltd 4.37 1.83 187 138 600685 CH 317 HK HKD Guangzhou Shipyard International Co Ltd 30.88 13.62 173 95 600% 600027 CH 1071 HK HKD Huadian Power International Co 3.49 1.56 169 161 601991 CH 991 HK HKD Datang International Power Generation Co Ltd 5.73 2.72 154 167 600332 CH 874 HK HKD Guangzhou Pharmaceutical Co Ltd 16.46 8.07 146 92 400% 000921 CH 921 HK HKD Hisense Kelon Electrical Holdings Co Ltd 6.50 3.20 145 144 601588 CH 588 HK HKD Beijing North Star Co Ltd 3.64 1.85 137 133 002202 CH 2208 HK HKD Xinjiang Goldwind Science & Technology Co Ltd 15.49 7.90 136 526 000666 CH 350 HK HKD Jingwei Textile Machinery 14.01 7.27 132 277 200% 600029 CH 1055 HK HKD China Southern Airlines Co Ltd 8.27 4.38 127 138 601727 CH 2727 HK HKD Shanghai Electric Group Co Ltd 6.92 4.02 107 161 601600 CH 2600 HK HKD Aluminum Corp of China Ltd 10.81 6.46 101 81 600115 CH 670 HK HKD China Eastern Airlines Corp Ltd 5.29 3.52 81 130 0% 601107 CH 107 HK HKD Sichuan Expressway Co Ltd 5.68 4.06 68 96 601919 CH 1919 HK HKD China COSCO Holdings Co Ltd 8.25 5.93 67 40 601866 CH 2866 HK HKD China Shipping Container Lines Co Ltd 3.64 2.62 67 63 600362 CH 358 HK HKD Jiangxi Copper Co Ltd 36.24 27.05 61 52 600011 CH 902 HK HKD Huaneng Power International Inc 5.37 4.15 56 70 Oct-01 Oct-10 Feb-11 Oct-02 Oct-03 Oct-04 Oct-05 Oct-06 Oct-07 Oct-08 Oct-09 Jun-11 Oct-00 Feb-01 Feb-10 Jun-01 Feb-02 Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 Feb-08 Feb-09 Jun-10 Feb-00 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-00 601618 CH 1618 HK HKD Metallurgical Corp of China Ltd 3.93 3.04 56 32 601111 CH 753 HK HKD Air China Ltd 10.20 7.93 55 66 A-share premium for all dual A/H-listed stocks, 2005 to present 601899 CH 2899 HK HKD Zijin Mining Group Co Ltd 5.28 4.18 52 41 601333 CH 525 HK HKD Guangshen Railway Co Ltd 4.10 3.29 50 57 601808 CH 2883 HK HKD China Oilfield Services Ltd 17.41 14.76 42 61 250% 600188 CH 1171 HK HKD Yanzhou Coal Mining Co Ltd 35.81 30.60 41 35 Average A/H Premium Total-cap weighted A/H premium 600026 CH 1138 HK HKD China Shipping Development Co Ltd 8.51 7.36 39 10 600548 CH 548 HK HKD Shenzhen Expressway Co Ltd 4.84 4.42 32 61 601390 CH 390 HK HKD China Railway Group Ltd 3.97 3.69 30 2 600028 CH 386 HK HKD China Petroleum & Chemical Corp 8.09 7.93 23 76 200% 000338 CH 2338 HK HKD Weichai Power Co Ltd 46.21 46.50 20 143 000157 CH 1157 HK HKD Changsha Heavy Industry Science and Technolo 15.55 15.86 18 NA 601766 CH 1766 HK HKD CSR Corp Ltd 7.16 7.33 18 3 600808 CH 323 HK HKD Maanshan Iron & Steel 3.51 3.70 14 2 601898 CH 1898 HK HKD China Coal Energy Co Ltd 10.19 10.78 14 4 601998 CH 998 HK HKD China Citic Bank Corp Ltd 4.55 4.91 12 31 150% 601186 CH 1186 HK HKD China Railway Construction Corp Ltd 5.95 6.46 11 (9) 601857 CH 857 HK HKD PetroChina Co Ltd 10.88 11.78 11 48 600875 CH 1072 HK HKD Dongfang Electric Corp Ltd 26.36 29.55 7 12 600012 CH 995 HK HKD Anhui Expressway Co 5.45 6.36 3 39 601988 CH 3988 HK HKD Bank of China Ltd 3.13 3.73 1 8 100% 000063 CH 763 HK HKD ZTE Corp 23.49 28.20 0 2 601088 CH 1088 HK HKD China Shenhua Energy Co Ltd 31.41 38.95 (3) (7) 601328 CH 3328 HK HKD Bank of Communications Co Ltd 5.57 6.94 (3) (5) 600016 CH 1988 HK HKD China Minsheng Banking Corp Ltd 5.77 7.20 (4) (5) 000898 CH 347 HK HKD Angang Steel Co Ltd 6.88 8.85 (6) (11) 600377 CH 177 HK HKD Jiangsu Expressway Co Ltd 5.52 7.13 (7) 9 50% 601939 CH 939 HK HKD China Construction Bank Corp 4.84 6.30 (8) (7) 600600 CH 168 HK HKD Tsingtao Brewery Co Ltd 35.37 46.45 (8) 2 601398 CH 1398 HK HKD Industrial & Commercial Bank of China 4.34 5.87 (11) (11) 601601 CH 2601 HK HKD China Pacific Insurance Group Co Ltd 22.45 31.55 (14) (12) 600036 CH 3968 HK HKD China Merchants Bank Co Ltd 13.41 19.10 (15) (15) 0% 601628 CH 2628 HK HKD China Life Insurance Co Ltd 18.87 27.50 (17) (15) 600585 CH 914 HK HKD Anhui Conch Cement Co Ltd 27.25 39.80 (18) (9) 601288 CH 1288 HK HKD Agricultural Bank of China Ltd 2.69 4.03 (20) (17) 601318 CH 2318 HK HKD Ping An Insurance Group Co 48.49 82.30 (29) (15) A-share 1Y avg Feb-11 Feb-10 Feb-05 Feb-06 Feb-07 Feb-08 Feb-09 Bloomberg ticker Quoted A Share Red chip Nov-10 premium premium Aug-10 May-11 Nov-05 Nov-06 Nov-07 Nov-08 Nov-09 Aug-05 Aug-06 Aug-07 Aug-08 Aug-09 May-10 May-05 May-06 May-07 May-08 May-09 A Share Red chip currency Company name CNY Quoted % % 600050 CH 762 HK HKD China Unicom Hong Kong Ltd 5.20 15.88 5% 78 Average 83.1 100.3 8/19/2010 Cap-weighted 12.0 38.8 Source: Bloomberg, DataStream, Goldman Sachs Global ECS Research. Report priced as of Jul 8, 2011 .

Goldman Sachs Global Economics, Commodities and Strategy Research 17 July 9, 2011 China

Other disclosures Research written by Donald Lu on companies listed in Taiwan is written by him in his capacity as consultant to Goldman Sachs (Asia) L.L.C.. Any other research is written in his capacity as employee of Beijing Gao Hua Securities Company Limited.

All MSCI data used in this report is the exclusive property of MSCI, Inc. (MSCI). Without prior written permission of MSCI, this information and any other MSCI intellectual property may not be reproduced or re-disseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an “as is” basis, and the user of this information assumes the entire risk of any use made of this information. Neither MSCI, any of its affiliates nor any third party involved in, or related to, computing or compiling the data makes any express or implied warranties or representations with respect to this information (or the results to be obtained by the use thereof), and MSCI, its affiliates and any such third party hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of this information. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in, or related to, computing or compiling the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. MSCI and the MSCI indexes are service marks of MSCI and its affiliates. The Global Industry Classification Standard (GICS) were developed by and is the exclusive property of MSCI and Standard & Poor’s. GICS is a service mark of MSCI and S&P and has been licensed for use by The Goldman Sachs Group, Inc.

Goldman Sachs Global Economics, Commodities and Strategy Research 18 July 9, 2011 China

Reg AC

We, Helen Zhu, Hanfeng Wang, Ph.D, CFA, Timothy Moe, CFA and Ben Bei, 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.

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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.

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Disclosure Appendix

Coverage group(s) of stocks by primary analyst(s)

Compendium report: please see disclosures at http://www.gs.com/research/hedge.html. Disclosures applicable to the companies included in this compendium can be found in the latest relevant published research.

Company-specific regulatory disclosures

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Distribution of ratings/investment banking relationships

Goldman Sachs Investment Research global coverage universe

Rating Distribution Investment Banking Relationships Buy Hold Sell Buy Hold Sell Global 32% 54% 14% 52% 41% 37% As of July 1, 2011, Goldman Sachs Global Investment Research had investment ratings on 3,167 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 NASD/NYSE rules. See 'Ratings, Coverage groups and views and related definitions' below.

Price target and rating history chart(s)

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Regulatory disclosures

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See company-specific regulatory disclosures above for any of the following disclosures required as to companies referred to in this report: manager or co-manager in a pending transaction; 1% or other ownership; compensation for certain services; types of client relationships; managed/co-managed public offerings in prior periods; directorships; for equity securities, market making and/or specialist role. Goldman Sachs usually makes a market in fixed income securities of issuers discussed in this report and usually deals as a principal in these securities. The following are additional required disclosures: Ownership and material conflicts of interest: Goldman Sachs policy prohibits its analysts, professionals reporting to analysts and members of their households from owning securities of any company in the analyst's area of coverage. Analyst compensation: Analysts are paid in part based on the profitability of Goldman Sachs, which includes investment banking revenues. Analyst as officer or director: Goldman Sachs policy prohibits its analysts, persons reporting to analysts or members of their households from serving as an officer, director, advisory board member or employee of any company in the analyst's area of coverage. Non-U.S. Analysts: Non-U.S. analysts may not be associated persons of Goldman Sachs & Co. and therefore may not be subject to NASD Rule 2711/NYSE Rules 472 restrictions on communications with subject company, public appearances and trading securities held by the analysts. Distribution of ratings: See the distribution of ratings disclosure above. Price chart: See the price chart, with changes of ratings and price targets in prior periods, above, or, if electronic format or if with respect to multiple companies which are the subject of this report, on the Goldman Sachs website at http://www.gs.com/research/hedge.html.

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The following disclosures are those required by the jurisdiction indicated, except to the extent already made above pursuant to United States laws and regulations. Australia: This research, and any access to it, is intended only for "wholesale clients" within the meaning of the Australian Corporations Act. Brazil: Disclosure information in relation to CVM Instruction 483 is available at http://www.gs.com/worldwide/brazil/gir/index.html. Where applicable, the Brazil-registered analyst primarily responsible for the content of this research report, as defined in Article 16 of CVM Instruction 483, is the first author named at the beginning of this report, unless indicated otherwise at the end of the text. Canada: Goldman Sachs & Co. has approved of, and agreed to take responsibility for, this research in Canada if and to the extent it relates to equity securities of Canadian issuers. Analysts may conduct site visits but are prohibited from accepting payment or reimbursement by the company of travel expenses for such visits. Hong Kong: Further information on the securities of covered companies referred to in this research may be obtained on request from Goldman Sachs (Asia) L.L.C. India: Further information on the subject company or companies referred to in this research may be obtained from Goldman Sachs (India) Securities Private Limited; Japan: See below. Korea: Further information on the subject company or companies referred to in this research may be obtained from Goldman Sachs (Asia) L.L.C., Seoul Branch. Russia: Research reports distributed in the Russian Federation are not advertising as defined in the Russian legislation, but are information and analysis not having product promotion as their main purpose and do not provide appraisal within the meaning of the Russian legislation on appraisal activity. Singapore: Further information on the covered companies referred to in this research may be obtained from Goldman Sachs (Singapore) Pte. (Company Number: 198602165W). Taiwan: This material is for reference only and must not be reprinted without permission. Investors should carefully consider their own investment risk. Investment results are the responsibility of the individual investor. United Kingdom: Persons who would be categorized as retail clients in the United Kingdom, as such term is defined in the rules of the Financial Services Authority, should read this research in conjunction with prior Goldman Sachs research on the covered companies referred to herein and should refer to the risk warnings that have been sent to them by Goldman Sachs International. A copy of these risks warnings, and a glossary of certain financial terms used in this report, are available from Goldman Sachs International on request. European Union: Disclosure information in relation to Article 4 (1) (d) and Article 6 (2) of the European Commission Directive 2003/126/EC is available at http://www.gs.com/client_services/global_investment_research/europeanpolicy.html which states the European Policy for Managing Conflicts of Interest in Connection with Investment Research. Japan: Goldman Sachs Japan Co., Ltd. is a Financial Instrument Dealer under the Financial Instrument and Exchange Law, registered with the Kanto Financial Bureau (Registration No. 69), and is a member of Japan Securities Dealers Association (JSDA) and Financial Futures Association of Japan (FFAJ). Sales and purchase of equities are subject to commission pre-determined with clients plus consumption tax. See company-specific disclosures as to any applicable disclosures required by Japanese stock exchanges, the Japanese Securities Dealers Association or the Japanese Securities Finance Company.

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Ratings, coverage groups and views and related definitions

Buy (B), Neutral (N), Sell (S) -Analysts recommend stocks as Buys or Sells for inclusion on various regional Investment Lists. Being assigned a Buy or Sell on an Investment List is determined by a stock's return potential relative to its coverage group as described below. Any stock not assigned as a Buy or a Sell on an Investment List is deemed Neutral. Each regional Investment Review Committee manages various regional Investment Lists to a global guideline of 25%-35% of stocks as Buy and 10%-15% of stocks as Sell; however, the distribution of Buys and Sells in any particular coverage group may vary as determined by the regional Investment Review Committee. Regional Conviction Buy and Sell lists represent investment recommendations focused on either the size of the potential return or the likelihood of the realization of the return. Return potential represents the price differential between the current share price and the price target expected during the time horizon associated with the price target. Price targets are required for all covered stocks. The return potential, price target and associated time horizon are stated in each report adding or reiterating an Investment List membership. Coverage groups and views: A list of all stocks in each coverage group is available by primary analyst, stock and coverage group at http://www.gs.com/research/hedge.html. The analyst assigns one of the following coverage views which represents the analyst's investment outlook on the coverage group relative to the group's historical fundamentals and/or valuation. Attractive (A). The investment outlook over the following 12 months is favorable relative to the coverage group's historical fundamentals and/or valuation. Neutral (N). The investment outlook over the following 12 months is neutral relative to the coverage group's historical fundamentals and/or valuation. Cautious (C). The investment outlook over the following 12 months is unfavorable relative to the coverage group's historical fundamentals and/or valuation. Not Rated (NR). The investment rating and target price have been removed pursuant to Goldman Sachs policy when Goldman Sachs is acting in an advisory capacity in a merger or strategic transaction involving this company and in certain other circumstances. Rating Suspended (RS). Goldman Sachs Research has suspended the investment rating and price target for this stock, because there is not a sufficient fundamental basis for determining, or there are legal, regulatory or policy constraints around publishing, an investment rating or target. The previous investment rating and price target, if any, are no longer in effect for this stock and should not be relied upon. Coverage Suspended (CS). Goldman Sachs has suspended coverage of this company. Not Covered (NC). Goldman Sachs does not cover this company. Not Available or Not Applicable (NA). The information is not available for display or is not applicable. Not Meaningful (NM). The information is not meaningful and is therefore excluded.

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The Global Investment Research Division of Goldman Sachs produces and distributes research products for clients of Goldman Sachs, and pursuant to certain contractual arrangements, on a global basis. Analysts based in Goldman Sachs offices around the world produce equity research on industries and companies, and research on macroeconomics, currencies, commodities and portfolio strategy. This research is disseminated in Australia by Goldman Sachs & Partners Australia Pty Ltd (ABN 21 006 797 897) on behalf of Goldman Sachs; in Brazil by Goldman Sachs do Brasil Banco Múltiplo S.A.; in Canada by Goldman Sachs & Co. regarding Canadian equities and by Goldman Sachs & Co. (all other research); in Hong Kong by Goldman Sachs (Asia) L.L.C.; in India by Goldman Sachs (India) Securities Private Ltd.; in Japan by Goldman Sachs Japan Co., Ltd.; in the Republic of Korea by Goldman Sachs (Asia) L.L.C., Seoul Branch; in New Zealand by Goldman Sachs & Partners New Zealand Limited on behalf of Goldman Sachs; in Russia by OOO Goldman Sachs; in Singapore by Goldman Sachs (Singapore) Pte. (Company Number: 198602165W); and in the United States of America by Goldman Sachs & Co. Goldman Sachs International has approved this research in connection with its distribution in the United Kingdom and European Union. European Union: Goldman Sachs International, authorized and regulated by the Financial Services Authority, has approved this research in connection with its distribution in the European Union and United Kingdom; Goldman Sachs & Co. oHG, regulated by the Bundesanstalt für Finanzdienstleistungsaufsicht, may also distribute research in Germany.

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Goldman Sachs Global Economics, Commodities and Strategy Research 21 July 9, 2011 China

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