China Vanke Bloomberg: 2202 HK Equity | 000002 CH Equity | Reuters: 2202.HK | 000002.SZ Refer to Important Disclosures at the End of This Report

China / Hong Kong Company Focus China Vanke Bloomberg: 2202 HK Equity | 000002 CH Equity | Reuters: 2202.HK | 000002.SZ Refer to important disclosures at the end of this report

DBS Group Research . Equity 6 January 2016

H: HOLD (Downgrade from BUY) Shareholding uncertainty overshadows Last Traded Price (H): HK$20.80 (CSI300 Index : 3,540) strong fundamentals Price Target (H): HK$19.60 (6% downside) (Prev HK$23.41) Better-than-expected sales/acquisitions in Dec 2015 will likely  lead to decent sales growth in 2016 A: BUY (Under review) Yet, shareholding structure is unlikely to improve in the near Last Traded Price (A): RMB24.43 (HSI : 20,981)  term and potential asset restructuring is uncertain Price Target (A): RMB19.31 (21% downside) Shareholding competition will likely distract management  Potential Catalyst: Better-than-expected shareholding structure efforts and affect Vanke’s long-term strategy Where we differ: Our FY15-17F EPS are below consensus Share price is under pressure after trading resumption;  Analyst Downgrade Vanke-H from BUY to HOLD Ken HE CFA, +86 21 6888 3375 Uncertainty in potential asset restructuring (Details on page 3). The [email protected] difficulties are in: (i) identifying potential acquisition targets to fall in Carol WU +852 2863 8841 the definition of “material asset restructuring”, and to improve [email protected] shareholding structure (or mitigate Baoneng’s influence in Vanke’s Danielle WANG CFA, +852 2820 4915 board/strategy), as well as to strengthen Vanke’s traditional [email protected] residential and new business lines; and (ii) obtaining shareholders’ Andy YEE CFA, +852 2971 1773 approval given current shareholding structure and rich valuation. In [email protected] fact, Vanke-H’s trading resumption was earlier than expected, implying that it has yet to have a concrete plan. Price Relative Shareholding war may continue and spread to H-shares. So far, the HK$ Relative Index RMB Relative Index

240 shareholding war has been contained within the A-share market only. 25.9 24.0 209 220 It is possible for the battlefield to switch to the H-share market, but 22.0 189 20.9 200 this will not change the story as Vanke’s H-share only accounts for 20.0 169 180 160 11.9% of total shares. In fact, this may only add uncertainty to the 18.0 149 15.9 140 shareholding structure, which will likely distract management’s 16.0 129 10.9 120 efforts and affect Vanke’s long-term strategy. 14.0 109 100 12.0 89 5.9 80 Expect >10% growth in 2016. Better-than-expected new starts and Jun-14 Nov-14 Apr-15 Sep-15 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 new acquisitions in 2015 will likely fuel 2016 growth. We expect its China Vanke (LHS) Relative HSI INDEX (RHS) China Vanke-A (LHS) Relative SHSZ300 Index (RHS) 2016 sales to grow >10% y-o-y to Rmb290-300bn, supported by Forecasts and Valuation sufficient saleable resources (36m sm), rising ASPs, and improving FY Dec (RMB m) 2014A 2015F 2016F 2017F sell-through. Management also aims >15% y-o-y growth in Turnover 137,994 172,058 202,972 221,956 EBITDA 28,619 34,355 41,387 44,599 completion in 2016. This, coupled with better gross margin and Pre-tax Profit 29,987 33,898 40,791 44,036 lower interest costs, lays a solid foundation for earnings growth. Net Profit 15,745 17,053 19,882 20,917 Downgrade Vanke-H to HOLD. After today’s correction, Vanke-H is Core Profit 13,768 16,912 19,882 20,917 now trading at 9.7x FY16F PE, still a 31% premium over COLI’s 7.4x. Core Profit Gth (%) (8.6) 22.8 17.6 5.2 We have revised down our TP to HK$19.60/share, pegged at 8.9x EPS (RMB) 1.43 1.55 1.80 1.90 EPS (HK$) 1.70 1.84 2.14 2.25 FY16F PE (vs. previously 12.5x FT15F PE), which is in line with what EPS Gth (%) 4.1 8.1 16.6 5.2 we applied for COLI. Downgrade to HOLD from BUY. Our PE (X) 12.3 11.3 9.7 9.2 recommendation and TP for Vanke-A is under review. P/Cash Flow (X) 4.6 nm 12.9 14.4 At A Glance EV/EBITDA (X) 7.9 7.2 6.0 5.6 Issued Capital - H shares (m shs) 1,315 DPS (HK$) 0.59 0.64 0.75 0.79 - Non H shrs (m shs) 9,733 Div Yield (%) 2.9 3.1 3.6 3.8 H shs as a % of Total 12 Net Gearing (%) 5.4 16.2 8.8 4.5 Total Mkt. Cap (HK$m/US$m) 309,778 / 39,963 ROE (%) 19.1 18.2 18.6 17.3 Major Shareholders Book Value (HK$) 9.51 10.73 12.23 13.73 SZ Jushenghua Co. Ltd. (%) 24.3 P/Book Value (X) 2.2 1.9 1.7 1.5 China Resources Co. Ltd. (%) 15.3

Earnings Rev (%): Nil Nil Nil Anbang Insurance(%) 6.2 Consensus EPS (RMB) 1.61 1.87 2.12 Major H Shareholders (%) Other Broker Recs: B: 15 S: 1 H: 3 JPMorgan Chase & Co. (%) 14.6 First State Investments (%) 9.7 ICB Industry: Financials Commonwealth Bank of Australia (%) 6.9 ICB Sector: Real Estate Holding & Development BlackRock, Inc. (%) 6.5 Principal Business: Property development and management H Shares-Free Float (%) 61.5 Source of all data: Company, DBSV, Thomson Reuters, HKEX 3m Avg. Daily Val. (US$m) 32.4

ed-TH / sa- AL

Company Focus China Vanke

INVESTMENT THESIS

Profile Rationale China Vanke was founded in 1984. It is now the largest Sufficient resources to drive growth of core residential residential developer in China, with extensive exposure in 65 business cities across the nation. Sales exceeded Rmb215bn in 2014, Vanke’s landbank size is underestimated by the market again the highest in the global real estate industry. The The landbank is more efficient given smaller project size and company had completed the conversion from B-share to mass market focus H-share on Jun 25, 2014, which enables Vanke to enjoy better funding channels and trading liquidity. Cooperation with Wanda could accelerate land acquisition

Management-fee based model will generate additional income from JV projects

New growth drivers in the near-term Property management business will see decent organic growth as well as M&A opportunites. The segment may also have spin-off potential to unlock values Vanke aims to become the second largest warehouse player in China in 3-5 years, given their advantage in acquiring land and partnerships with investors and 3PLs.

Yet shareholding shareholding uncertainty overshadows strong fundamentals Shareholding structure is unlikely to improve in the near term. Potential asset restructuring is another uncertainty.

Valuation Risks Our valuation for Vanke-A/-H is based on 8.9x FY1F PE, on Macroeconomic risk par with its nearest comparable COLI’s average PE multiple If China’s economy slows faster than expected and triggers a since 2011. hard landing, the property sector will be substantially affected.

Policy risk Unexpected sector tightening and loosening which are likely to trigger a sector-wide re-rating or de-rating, in which bottom up research will become less important.

Source: DBS Vickers

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Company Focus China Vanke

Uncertainty in identifying potential acquisition targets asset restructuring, as (i) the size of potential target should be large as analysed above; and (ii) management needs to place Potential target likely to be large in size. On Dec 21, 2015, shares to allied parties to dilute the Baoneng consortium's Vanke announced the suspension of trading due to “material influence. asset restructuring (重大資產重組)”. In our view, it is difficult to identify the potential targets. Based on definition of An ideal way is asset injection in exchange for shareholding. “material asset restructuring”, the potential target should be Therefore, CR Group is widely expected by most investors. Yet, large in size. The table below indicates that the potential we think the possibility is not high, as: (i) CR group has limited target needs to be at least Rmb44bn in size. property assets that can be injected into Vanke. CR Group still owns Shenzhen Bay project in Shenzhen, which is promised to Potential target should support Vanke’s existing and newly be injected into CR Land (1109.HK). According to CR Group’s growing businesses. As reiterated by chairman Wang Shi, the website, it also owns CR Property which owns/operates CR asset restructuring is intended to strengthen Vanke’s Building in HK and hotel assets in HK/China, and a commercial traditional residential business or accelerate the growth of its complex in downtown Bangkok. Therefore, injecting CR new businesses, or a combination of both. Property into Vanke seems to make sense. But (ii) if CR Group is injecting assets into Vanke, the former cannot vote at the A Share placement is needed to dilute Baoneng’s influence. In shareholders’ meeting. It is unlikely for the deal to be our view, there might be a share placement for the potential approved by A shareholders’ vote (detailed discussion later).

Any one of the below scenario could be viewed as “material asset restructuring”

Scenario Vanke's End-FY14 financials Implied target size Total assets of potential target to be Total asset: Rmb508bn Total asset >= Rmb254bn acquired/sold >= 50% of listco's total assets for the recent financial year Total revenue of potential target to be Total revenue: Rmb138bn Total revenue >= Rmb69bn acquired/sold >= 50% of listco's total revenue for the recent financial year Net equity of potential target to be Net equity: Rmb88bn Net equity >= Rmb44bn acquired/sold >= 50% of listco's net equity for the recent financial year, and >= Rmb50m

Source: China Securities Regulatory Commission (CRIC), DBS Vickers

Uncertainty in obtaining shareholders’ approval for Latest key shareholders and ownership share placement A share holding A share holding Three votes needed for the share placement. The share as % of total as % of total placement needs three votes (vote from A-shareholders, vote number of number of A from H-shareholders and overall vote), given its dual-listing shares shares status. It needs at least two-thirds of attendants’ agreement Baoneng consortium 24.26% 27.55% (Jushenghua and Foresea Life (出席股東/代表贊成 ) to pass the proposal in each vote. In Insurance) other words, disagreement cannot exceed one-third, China Resources Group (or CR 15.29% 17.36% otherwise, there is no way to pass the proposal. Group) Anbang Insurance 6.18% 7.02% Based on the latest announcement, the key shareholders (all Yingan Partnership 4.48% 5.09% of them hold A-shares only) are as follows: (management partnership scheme) Source: Company, DBS Vickers

Please note: Vanke-A/H accounts for 88.1%/11.9% of total number of shares respectively

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Company Focus China Vanke

implies the low end of placing price in A-share market should The main uncertainty is A shareholders’ vote, as all the key be Rmb16.33, representing 9.1x FY16F PE, which is not parties are holding A-shares so far. In addition, the key to pass particularly attractive. The low end of placement price in H- the proposal would be Anbang’s vote. There is no way to pass share market could be lower than that in the A-share market the proposal if both Baoneng and Anbang reject it as the two placement. However, A-shareholders may not approve H- parties jointly own 34.57% of total A-shares (already larger share placement if the placement price in H-share market is than one-third). If Anbang is neutral, it is also difficult for the too low. proposal to be passed as another 32.65% agreement, in addition to CR Group and Yingan’s 22.45%, is required. The low end of placing prices in A/H market

Scenario analysis of A shareholders’ vote: Anbang’s The low end Implied attitude is important of placing FY16 Secured Requirement price PE agreement A-share <10% discount to the last Rmb16.33 9.1 Total assuming CR placement 20-day close price average disagreement, Group and assuming Agreement management H-share <20% discount to last Rmb15.33 8.5 Baoneng will needed to pass partnership will placement close or 5 day close price Anbang disagree the proposal agree average, whichever is Disagree 34.57% No way to pass 22.45% higher Neutral 27.55% 55.10% 22.45% Agree 27.55% 55.10% 29.47% Source: CRIC, Reuters, Company, DBS Vickers

Source: Company, DBS Vickers Who will likely participate in the placement? Resumption of H-share is adding uncertainties to H shareholders’ vote. So far, the shareholding competition has The placement is more likely to be a private placement, as (i) been contained within the A-share market only. All the key SOE shareholder – CR Group needs to pay 10% of the shareholders - Baoneng consortium (24.26%), Anbang proceeds from placement to social insurance funds if there is a (6.18%), CR Group (15.29%) and management partnership public placement, which does not make sense for CR Group. scheme (4.48%), are holding A-shares. After trading (ii) Baoneng consortium can also subscribe for the placement resumption of Vanke-H, it is possible for the battlefield to if it is a public placement, which will not dilute Baoneng switch to H-share market: (i) Vanke-A’s trading suspension will consortium’s influence in Vanke. Therefore, it is more likely to continue; (ii) Vanke-H was trading at a discount to Vanke-A; be a private placement, if any, which means shares will be (iii) Anbang has experience in acquiring developers' H-share placed to <= 10 investors. (Sino-Ocean, 3377.HK) while Baoneng also owns a platform - Given the large scale of private placement, we think only China Goldjoy, (1282.HK) in H-share market. selected investors have capabilities/aspirations to participate. However, Vanke-H shares only accounts for 11.9% of Vanke’s Anbang is likely. Anbang is on the management side. total shares. Anbang’s purchase of more H-shares will not According to the management, Anbang will not affect change the fact that Baoneng consortium will remain the Vanke’s strategy and business operations in the future, largest single shareholder of Vanke. On the other hand, although we are doubtful on this. (Anbang previously denied another key shareholder – CR Group, which was proven to be Gemdale’s management partnership scheme in mid-2014). a responsible shareholder of Vanke, seems to be conservative Yet, Anbang’s participation might not be able to change the at this moment. In our view, the competition adds fact that Baoneng will remain the single largest shareholder. uncertainties on H-shareholders’ vote and increases difficulties of potential asset restructuring. Likelihood for CR Group is medium, although share placement to CR Group is highly expected by most investors. Rich valuation of Vanke-A adds to difficulty in placement (i) CR Group is likely to remain conservative on Vanke’s Higher A-share price leads to uncertainty in placement prices. shareholding competition, as Chairman Fu Yuning used to be According to CRIC, placement prices should not be below conservative and Vanke’s placing prices might not be 90% of the last 20-day close price average (can be the last attractive. 20-day/60-day/120-day close price average, but we think the last 20-day average is more reasonable for Vanke’s case). This

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Company Focus China Vanke

(ii) If CR Group is injecting assets into Vanke, CR Group is be approved in A shareholders’ vote, as Baoneng's 24.26% connected party and cannot vote for the asset injection at the stake in Vanke already accounts for one-third of the A shareholders’ meeting. It is unlikely for Vanke’s proposal to remaining A-shares (88.1%-15.3%=72.8%).

Who will likely participate in Vanke’s placement

Current stake in Parties Vanke Reason Possibility Anbang Insurance 6.18% Anbang has capability and is thirsty for developers. In High addition, it indicated it is on the management side and won't affect Vanke's strategy and business operations CR Group 15.29% Widely expected for potential asset injection in exchange Medium for a bigger stake in Vanke Sinochem group, China Nil Ning Gaoning who used to be the chairman of CR Group Low Jinmao (817.HK)'s parentco and has a close relationship with Wang Shi, just became the chairman of Sinochem Group COLI (688.HK) Nil COLI is holding above HK$100bn cash on hand and is well Low, as COLI's share price is prepared for potential M&A more attractive

Source: DBS Vickers

estimated to be 34m sm, including 24m sm new saleable As such, we think uncertainties in shareholder structure and resources and 10m sm inventory. Assuming a flat ASP of potential asset restructuring will persist. On a positive note, Rmb12.5k/sm, total saleable resources could reach Rmb42-43bn. Anbang Insurance said it is on the management side. Then, the Assuming a flat sell-through, 2016 sales could reach Rmb29- management alliance (CR Group, Anbang and management 30bn, implying >10% y-o-y growth. partnership scheme) owns an aggregate of 25.95% stake in Vanke, higher than Baoneng consortium’s 24.26%. The alliance Completion is estimated to grow 15% y-o-y in 2016. Gross could mitigate Baoneng’s influence in Vanke’s board, although margin will be slightly lower in 2015, but should improve in Baoneng will likely to remain the largest shareholder for a 2016, given higher ASP in 2015 presales. Funding cost will certain period. continue to trend down after the issuance of domestic corporate bonds and inter-bank mid-term notes. All of these Nevertheless, 2016 outlook remain decent should lay a solid foundation for 2016 earnings growth.

Sales/acquisitions in December were better than expected. December sales was better than expected, partly driven by sales Targeted and actual new starts contribution from JV project in US. In fact, new subscription Actual Actual Target Target sales in December was Rmb35bn, while Rmb14bn will be new starts completion new starts completion brought forward to contracted sales in Jan-2016. Full-year sales m sm m sm m sm m sm concluded at Rmb261bn, up 22% y-o-y. 2007 7.8 4.5 7.0 6.0 2008 5.2 5.3 5.7 5.9 Better-than-expected acquisitions as well. Land banking in 2009 5.6 5.4 4.0 6.2 December was also above expectations, adding 21 projects with 2010 12.5 4.4 8.6 5.0 total GFA of 5m sm, concluding full-year acquisitions at 22m sm 2011 14.5 6.6 13.3 7.3 (vs. 2014 acquisition of 9m sm). This should remove investors’ 2012 14.3 9.8 13.3 8.9 concerns over its land bank scale. Vanke continues to widen its 2013 21.3 13.0 16.5 12.9 acquisition channels. In 2015, 30% of total acquisitions were 2014 17.3 13.9 22.4 14.8 from other developers, vs. 20% in 2014. 2015 19.9 16.6 16.8 15.8 Source: Company, DBS Vickers Sufficient saleable resources to drive 2016 sales. Actual new GFA starts went up 15% y-o-y to c.20m sm in 2015. This, 2015 actual numbers are estimated by DBS Vickers coupled with higher new acquisitions in 2015, should result in sufficient saleable resources in 2016. 2016 total saleable GFA is

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Company Focus China Vanke

Vanke’s land acquisition vs. property sales

Tota l Avg GFA Acquisition Tota l land land Tota l GFA Tota l acquired costs vs Land cost GFA cost cost sold value ASP vs sold property sales vs ASP m sm Rmb bn Rmb/sm m sm Rmb bn Rmb/sm % % % 2007 1.8 10.7 5,931 6.0 49.9 8,366 30% 21% 71% 2008 7.0 14.7 2,098 5.6 47.9 8,594 126% 31% 24% 2009 12.4 30.7 2,470 6.6 63.4 9,558 187% 48% 26% 2010 31.1 82.3 2,645 9.0 108.1 12,047 347% 76% 22% 2011 18.8 49.1 2,613 10.8 121.7 11,294 174% 40% 23% 2012 18.7 54.2 2,899 13.0 141.2 10,901 144% 38% 27% 2013 33.5 112.6 3,358 14.9 170.9 11,473 225% 66% 29% 2014 9.0 43.5 4,845 17.8 215.1 12,084 50% 20% 40% 2015 22.1 100.8 4,558 20.7 261.5 12,649 107% 39% 36%

Source: Company, DBS Vickers

Price premium of Vanke-H over Vanke-A Monthly contracted sales

HK$ Rmb bn 35 Average H-Premium: 12% 35 30 30 25 25 20 20 15 10 15 5 10 0 Jul Jan Jun Feb Oct Apr Sep Dec Nov Mar Aug May Jan-15 Jan-16 Jun-14 Jun-15 Oct-14 Apr-15 Sep-15 Nov-14 Nov-15 Mar-15 Aug-14 Aug-15 2012 2013 2014 2015 Vanke-H Vanke-A

Source: Thomson Reuters, DBS Vickers Source: Company, DBS Vickers

Monthly contracted GFA Monthly contracted ASP

m sm Rmb/sm 2.5 16,000 15,000 2.0 14,000 1.5 13,000 12,000 1.0 11,000 10,000 0.5 9,000 0.0 8,000 Jul Jul Jan Jan Jun Jun Oct Oct Feb Feb Sep Sep Apr Apr Dec Dec Nov Nov Mar Mar Aug Aug May May 2012 2013 2014 2015 2012 2013 2014 2015

Source: Company, DBS Vickers Source: Company, DBS Vickers

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Company Focus China Vanke

Discount to NAV (H-share) Discount to NAV band (H-share)

HK$ % 5 24.0 2% 23.0 0 22.0 (5) -5% +1SD -8.4% 21.0 (10) 20.0 -13% Avg: -16.4% (15) 19.0 18.0 -21% (20) 17.0 (25) -28% -1SD -24.4% 16.0 (30) 15.0 Jul-15 Jul-15 Jan-16 Jan-16 Jun-15 Oct-15 Sep-15 Jun-15 Dec-15 Oct-15 Sep-15 Dec-15 Nov-15 Nov-15 Aug-15 Aug-15 Source: Thomson Reuters, DBS Vickers Source: Thomson Reuters, DBS Vickers

PE chart PB chart

x x 12.0 2.0 1.9 11.0 1.8 +1SD: 1.7x 1.7 10.0 +1SD: 9.9x 1.6 Avg: 1.6x Avg: 9x 9.0 1.5 1.4 -1SD: 1.4x 8.0 1.3 -1SD: 8.2x 1.2 7.0 1.1 6.0 1.0 Jul-15 Jul-15 Jan-15 Jan-16 Jun-14 Jun-15 Oct-15 Sep-14 Apr-15 Jan-16 Dec-14 Jan-15 Nov-14 Jun-15 Jun-14 Nov-15 Oct-15 Mar-15 Apr-15 Sep-14 Dec-14 Aug-14 Aug-15 Nov-15 Nov-14 Mar-15 Aug-15 Aug-14 Source: Thomson Reuters, DBS Vickers Source: Thomson Reuters, DBS Vickers

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Company Focus China Vanke

Valuation comparison

3-mth daily Ne t Disc/ 6-Jan Mkt trading 12-m EPS gth PE PE Yield Yield ROE ROE Gearing P/Bk NAV (Prem) Price Cap value Recom target 15F 16F 15F 16F 15F 16F 15F 16F 1H15 1H15 to NAV Company Name Code HK$ US$bn US$m HK$ % % x x % % % % % x HK$ % Large cap C hina Overseas* 688 HK 25.25 32.1 69. 7 Buy 30. 30 (8) 9 8.1 7.4 2.5 2. 7 17. 2 15.8 13. 0 1.3 28.1 10.0 C ountry Garden* 2007 HK 3.11 9.1 6. 5 Buy 3. 66 ( 20) 7 6.0 5.6 5.4 5. 8 15. 4 14.7 54. 1 0.9 4.4 29.3 C R Land* 1109 HK 21.1 18.9 31. 4 Buy 26. 01 ( 24) 14 10.9 9.6 2.5 2. 8 11. 6 11.3 39. 4 1.3 27.5 23.3 C hina Vanke 'H' * 2202 HK 20.8 40.0 31. 6 H old 19. 60 8 17 11.3 9.7 3.1 3. 6 18. 2 18.6 15. 8 2.2 22.4 7.1 D alian Wanda 'H ' 3699 HK 42.5 24.8 14. 8 NR n.a. ( 43) 23 9.1 7.4 3.1 3. 7 11. 1 13.0 73. 7 1.0 n.a. n. a. Evergrande* 3333 HK 6.28 11.3 40. 0 H old 6. 45 ( 44) 18 11.1 9.4 4.5 5. 3 12. 7 13.1 85. 8 1.4 9.4 33.3 Longfor 960 HK 11.24 8.5 4. 8 NR n.a. ( 18) 12 7.5 6.7 3.1 3. 4 14. 4 14.3 61. 1 1.1 n.a. n. a. Shimao Property* 813 HK 12.94 5.8 11. 0 Buy 16. 53 (7) 6 5.0 4.7 6.8 7. 4 15. 2 14.6 57. 5 0.8 28.5 54.6 Average (19) 13 8. 6 7.6 3. 9 4.4 14.5 14. 4 50.1 1.2 26.3

Mid cap A gile Property* 3383 HK 4.17 2.1 2. 6 H old 3. 66 ( 27) ( 10) 4.0 4.4 6.3 5. 7 8. 8 7.4 72. 4 0.4 16.6 74.9 C hina South City*^^ 1668 HK 1.62 1.7 3. 3 Buy 1. 94 ( 82) 45 18.0 12.4 3.1 4. 4 2. 9 4.2 65. 3 0.6 3.6 54.7 C OGO* 81 HK 2.97 0.9 0. 9 Buy 4. 25 29 49 4.1 2.8 1.7 1. 7 12. 5 16.1 81. 4 0.3 9.2 67.7 C hina Jinmao Hldgs* 817 HK 2.52 3.5 3. 8 Buy 3. 00 ( 47) 25 8.8 7.0 3.2 4. 3 7. 4 9.3 49. 5 0.7 4.5 44.4 Greentow n 3900 HK 7.5 2.1 4. 4 NR n.a. 58 7 5.0 4.7 3.4 3. 8 10. 1 10.2 78. 0 0.6 18.5 59.5 Guangzhou R&F 2777 HK 9.25 3.8 7. 3 NR n.a. 4 11 4.6 4.1 7.0 7. 5 13. 2 13.2 119. 4 0.7 18.1 48.9 H ops on Dev 754 HK 7.48 2.2 0. 9 NR n.a. ( 57) 8 13.4 12.4 0.0 0. 0 2. 5 2.0 73. 5 0.3 n.a. n. a. KWG Property 1813 HK 5.35 2.1 4. 4 NR n.a. (9) 18 4.4 3.8 7.5 8. 7 13. 8 14.8 69. 8 0.6 10.8 50.5 Poly (Hong Kong) 119 HK 2.4 1.1 4. 6 NR n.a. ( 67) 58 28.6 18.0 1.3 1. 7 0. 7 1.8 109. 2 0.3 13.1 81.7 Shenzhen Inv 604 HK 3.45 3.3 6.0 NR n.a. (24) 16 8.5 7.3 4.6 5.2 8.9 9.8 57.7 0.8 n.a. n.a. Shui On Land* 272 HK 2.06 2.1 3. 4 H old 2. 07 17 (105) 6.7 n.a. 3.5 1. 4 5. 4 (0.3) 86. 9 0.3 4.9 58.2 Sino-Ocean La nd* 3377 HK 4.71 4.6 29. 4 Buy 6. 70 ( 21) 26 8.5 6.8 3.9 4. 7 8. 2 9.7 62. 6 0.7 8.4 43.7 Soho China* 410 HK 3.72 2.5 5. 6 FV 3. 60 ( 93) 67 59.1 35.5 0.9 1. 5 0. 7 1.2 26. 4 0.4 9.0 58.6 Sunac C hina 1918 HK 5.4 2.4 8. 5 NR n.a. 9 22 4.3 3.6 4.3 5. 2 19. 7 20.7 70. 7 0.9 n.a. n. a. Yanlord Land*^ YLLG SP 1 1.4 0. 8 Buy 1. 35 ( 34) 45 9.9 6.8 1.4 1. 5 4. 6 6.4 39. 2 0.5 1.9 48.6 Yuexiu Property* 123 HK 1.29 2.1 2.8 Hold 1.35 (41) 16 8.0 6.8 5.2 5.9 5.7 6.3 65.5 0.4 3.1 58.6 Average# (22) 24 9. 3 7.2 3. 8 4.3 8.5 9. 4 72.5 0.5 57.6 Small cap BJ Cap Land 'H' 2868 HK 3.38 1.8 1. 5 NR n.a. (8) 24 3.7 3.0 7.1 8. 0 13. 4 16.7 155. 3 0.6 n.a. n. a. BJ North Star 'H' 588 HK 2.56 1.1 0.5 NR n.a. 6 31 8.8 6.7 3.2 3.2 4.7 4.8 84.7 0.4 n.a. n.a. C C Land* 1224 HK 2.45 0.8 0. 4 H old 2. 06 6 ( 79) 5.6 27.0 3.6 0. 7 7. 4 1.5 19. 9 0.4 2.8 11.5 C entral China* 832 HK 1.58 0.5 0. 2 Buy 1. 89 ( 15) 8 4.3 4.0 6.9 7. 5 11. 1 11.2 66. 9 0.5 6.1 73.9 China SCE 1966 HK 1.71 0.8 0.5 NR n.a. 11 24 4.9 4.0 5.1 6.3 15.1 15.7 62.0 0.7 n.a. n.a. C IFI Holdings 884 HK 1.64 1.4 1. 4 NR n.a. 8 21 4.1 3.4 6.4 7. 7 18. 8 19.1 72. 5 0.8 n.a. n. a. First Sponsor*^ FSG SP 1.23 0.5 0. 1 Buy 1. 57 112 13 6.7 5.9 2.8 2. 8 11. 8 12.7 n.a. 0.8 4.1 70.0 Glorious Property 845 HK 0.9 0.9 0. 4 NR n.a. (106) 58 31.6 19.9 0.0 0. 0 1. 2 1.9 142. 5 0.4 5.9 84.7 Hydoo Int'l 1396 HK 1.03 0.5 0.1 NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 60.4 0.8 n.a. n.a. Kaisa Group 1638 HK 1.56 1.0 0. 0 NR n.a. n. a. 13 2.5 2.2 11.6 n.a. 16. 9 16.4 70. 4 0.3 n.a. n. a. Lai Fung* 1125 HK 0. 131 0.3 0. 1 NR n.a. 50 n.a. 6.2 n.a. 2.4 0. 0 2. 6 0.0 24. 3 0.2 0.6 77.4 Minmetals Land 230 HK 0.87 0.4 0.1 NR n.a. 43 44 4.8 3.3 2.1 3.0 7.3 9.7 45.4 0.3 n.a. n.a. Powerlong 1238 HK 1.63 0.8 0.4 NR n.a. (13) 24 4.6 3.7 5.1 6.2 7.1 8.7 68.3 0.3 n.a. n.a. Renhe Commercial 1387 HK 0. 335 1.9 1. 4 NR n.a. n. a. n.a. n.a . n.a. n.a . n.a. n.a. n.a. 26. 0 0.4 2.7 87.8 Road King 1098 HK 6.66 0.6 0.3 NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 81.8 0.4 n.a. n.a. Greenland* 337 HK 2.87 1.0 2. 0 Buy 4. 97 345 195.9 6.5 3.2 0.0 0. 0 6. 4 10.9 193. 0 0.8 6.4 54.9 SRE Group 1207 HK 0. 335 0.9 0. 6 NR n.a. n. a. n.a. n.a . n.a. n.a . n.a. n.a. n.a. 182. 3 0.2 n.a. n. a. Wuzhou Int' l 1369 HK 0.81 0.5 1. 9 NR n.a. ( 12) 60 13.5 8.4 0.0 0. 0 6. 4 10.0 81. 4 0.8 n.a. n. a. Ying Li^ YINGLI SP 0. 161 0.3 0. 9 NR n.a. n. a. n.a. n.a . n.a. n.a . n.a. n.a. n.a. n.a. 0.4 0.9 82.5 Yuzhou Properties* 1628 HK 2 1.0 1. 1 NR n.a. 31 39 3.5 2.5 8.8 12. 1 18. 3 21.7 69. 0 0.7 5.0 60.0 Zhong An 672 HK 0.8 0.2 0.0 NR n.a. n.a. n.a. n.a . n.a. n.a . n.a. n.a. n.a. 75.2 0.3 n.a. n.a. Average** (5) 22 7.7 4.1 5.0 5.0 10.6 11.4 80.2 0.5 66.7 Average (Overall)@ (16) 21 7.9 6.3 4.2 4.5 10.7 11.3 71.3 0.7 51.8~ ^ Denominated in SGD for price ~ Simple average discount to NAV; Market cap weighted average NAV = 25% # Exclude Soho China & Shui On Land ** Exclude Greenland, First Sponsor & Lai Fung @ Exclude Soho China, Shui On Land, Greenland, First Sponsor & Lai Fung ^^ FY15: 16F; FY16: FY17F Source: Thomson Reuters, *DBS Vickers

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Company Focus China Vanke

PE valuations, 2007 to 2014 (based on earnings forecasts)

6-Jan Mkt 15F 16F PE Price Ca p PE PE Trough Peak Trough Peak Trough Peak Trough Peak Trough Peak Trough Peak Trough Peak Compa ny Na me Code HK$ US$bn x x 07-08 07-08 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 China Overseas* 688 HK 25.25 32.1 8.1 7.4 9.7 37.3 11.1 25.0 12.8 17.0 6.5 12.1 7.1 12.4 7.8 11.2 6.1 8.5 Country Garden* 2007 HK 3.11 9.1 6.0 5.6 3.6 50.2 5.2 20.3 10.7 16.7 5.2 11.6 5.8 9.2 6.5 10.0 4.0 6.4 CR Land* 1109 HK 21.10 18.9 10.9 9.6 15.9 69.0 13.1 30.4 14.4 21.1 7.2 15.2 10.1 17.6 11.9 16.2 7.1 10.7 China Vanke 'H' Susp 2202 HK 20.80 40.0 11.3 9.7 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6.3 9.0 Dalian Wanda 'H' 3699 HK 42.50 24.8 9.1 7.4 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Evergrande* 3333 HK 6.28 11.3 11.1 9.4 n.a. n.a. n.a. n.a. 3.8 9.1 2.9 8.9 3.3 6.1 4.2 6.4 3.4 4.6 Longfor 960 HK 11.24 8.5 7.5 6.7 n.a. n.a. 17.8 24.4 13.8 21.7 6.3 14.2 5.6 11.9 7.4 10.4 5.3 6.9 Shimao Property* 813 HK 12.94 5.8 5.0 4.7 3.8 30.0 4.2 18.4 8.6 13.3 3.6 9.7 3.9 9.5 6.4 8.8 4.3 6.1 Average 8.6 7.6 8.2 46.6 10.3 23.7 10.7 16.5 5.3 11.9 6.0 11.1 7.4 10.5 5.2 7.4 Agile Property* 3383 HK 4.17 2.1 4.0 4.4 1.6 36.9 4.7 21.0 8.5 13.7 2.7 11.1 3.8 7.1 4.0 7.6 2.4 4.3 China South City*^^ 1668 HK 1.62 1.7 18.0 12.4 n.a. n.a. 17.7 19.6 6.9 20.4 4.3 12.3 5.9 6.6 4.3 6.9 5.1 11.8 COGO* 81 HK 2.97 0.9 4.1 2.8 n.a. n.a. n.a. n.a. n.a. n.a. 3.6 9.8 5.0 9.8 6.3 10.0 3.1 5.1 China Jinmao Hldgs* 817 HK 2.52 3.5 8.8 7.0 5.5 48.2 6.9 21.8 15.0 19.1 6.1 16.8 6.0 10.3 7.3 9.3 4.8 6.8 Greentown 3900 HK 7.50 2.1 5.0 4.7 1.9 15.7 2.3 18.3 6.3 10.2 2.0 6.1 1.5 6.3 3.3 6.6 2.3 4.5 Guangzhou R&F 2777 HK 9.25 3.8 4.6 4.1 2.4 41.2 4.8 17.8 6.8 10.5 3.2 8.0 3.2 7.4 4.7 8.1 3.8 4.8 Hopson Dev 754 HK 7.48 2.2 13.4 12.4 1.0 21.0 2.2 10.3 4.9 7.5 2.8 6.4 2.8 16.0 5.6 13.7 3.9 16.1 KWG Property 1813 HK 5.35 2.1 4.4 3.8 2.1 34.3 2.9 22.1 8.0 14.2 3.1 9.9 2.8 6.6 3.7 6.6 2.9 5.2 Poly (Hong Kong) 119 HK 2.40 1.1 28.6 18.0 10.0 30.0 3.8 51.0 14.9 25.2 4.2 16.1 4.9 9.8 5.2 9.9 3.9 6.4 Shenzhen Inv 604 HK 3.45 3.3 8.5 7.3 2.1 22.8 4.2 14.9 6.5 9.5 3.8 9.0 4.6 8.6 6.2 11.8 5.3 8.0 Shui On Land* 272 HK 2.06 2.1 6.7 n.a. 1.7 25.0 3.4 21.3 9.4 16.6 5.2 16.2 6.5 12.6 9.1 17.6 10.6 13.8 Sino-Ocean Land* 3377 HK 4.71 4.6 8.5 6.8 4.7 82.2 9.0 24.8 11.3 15.7 4.1 10.3 5.4 12.1 6.7 11.4 6.0 7.8 Soho China* 410 HK 3.72 2.5 59.1 35.5 5.7 21.0 4.0 11.0 4.6 7.9 9.0 17.7 4.5 6.2 6.3 7.7 8.8 11.8 Sunac China 1918 HK 5.40 2.4 4.3 3.6 n.a. n.a. n.a. n.a. 4.5 5.8 1.4 3.5 1.4 5.5 3.1 4.9 2.2 5.1 Yanlord Land*^ YLLG SP 1.00 1.4 9.9 6.8 4.1 28.7 6.6 19.8 9.3 14.5 5.0 10.5 6.7 15.0 9.3 14.4 7.5 9.8 Yuexiu Property* 123 HK 1.29 2.1 8.0 6.8 1.9 31.9 2.9 25.5 8.9 15.7 4.5 11.0 4.5 9.1 5.8 9.5 5.9 7.9 Average# 9.3 7.2 3.4 35.7 5.7 22.3 8.6 14.0 3.6 10.0 4.2 9.3 5.4 9.3 4.2 7.4 BJ Cap Land 'H' 2868 HK 3.38 1.8 3.7 3.0 1.6 18.8 3.1 15.9 5.1 9.6 1.9 5.9 2.0 4.7 3.3 5.3 2.6 3.3 BJ North Star 'H' 588 HK 2.56 1.1 8.8 6.7 3.5 49.9 5.0 18.0 7.5 12.7 3.6 10.5 6.5 8.9 4.0 7.0 3.8 8.2 C C Land* 1224 HK 2.45 0.8 5.6 27.0 18.7 536.5 n.a. n.a. n.a. n.a. 5.2 17.4 3.9 12.7 6.7 10.9 3.5 6.4 Central China* 832 HK 1.58 0.5 4.3 4.0 1.3 10.8 1.5 9.4 3.9 6.6 2.8 5.6 2.8 6.3 3.5 5.2 2.6 3.8 China SCE 1966 HK 1.71 0.8 4.9 4.0 n.a. n.a. n.a. n.a. 4.7 6.9 3.7 5.5 2.9 3.5 2.4 6.6 5.6 5.6 CIFI Holdings 884 HK 1.64 1.4 4.1 3.4 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3.8 5.9 3.2 4.3 First Sponsor*^ FSG SP 1.23 0.5 6.7 5.9 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 29.9 31.3 Glorious Property 845 HK 0.90 0.9 31.6 19.9 n.a. n.a. 12.9 17.7 6.4 10.8 2.8 7.3 2.8 6.3 4.8 11.0 4.4 9.1 Hydoo Int'l 1396 HK 1.03 0.5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3.6 5.5 2.3 5.9 Kaisa Group 1638 HK 1.56 1.0 2.5 2.2 n.a. n.a. n.a. n.a. 3.5 8.4 3.7 10.0 2.9 6.9 2.8 5.9 1.9 3.9 Lai Fung* 1125 HK 0.13 0.3 6.2 n.a. 0.8 7.9 3.2 11.1 6.7 17.4 3.1 19.0 2.6 4.9 4.0 4.0 4.0 4.0 Minmetals Land 230 HK 0.87 0.4 4.8 3.3 0.8 3.4 2.2 13.2 6.9 20.1 3.8 n.a. 2.3 7.1 4.2 6.6 3.6 5.9 Powerlong 1238 HK 1.63 0.8 4.6 3.7 n.a. n.a. 4.7 7.0 5.3 8.2 1.5 6.5 1.6 5.6 3.6 6.7 2.8 3.8 Renhe Commercial 1387 HK 0.34 1.9 n.a. n.a. 10.5 12.5 5.7 10.7 5.4 7.2 3.2 7.0 2.7 9.4 4.7 23.9 7.7 7.7 Road King 1098 HK 6.66 0.6 n.a. n.a. 1.1 11.0 4.4 7.2 5.4 7.3 2.2 7.0 2.4 7.6 6.5 7.3 6.8 6.8 Greenland* 337 HK 2.87 1.0 6.5 3.2 0.1 2.8 1.1 11.9 3.6 6.7 1.2 3.2 1.0 7.6 0.6 44.8 11.7 28.2 SRE Group 1207 HK 0.34 0.9 n.a. n.a. 1.0 8.8 1.5 4.6 2.0 3.7 2.3 2.9 0.9 1.4 1.1 1.1 1.1 1.1 Wuzhou Int'l 1369 HK 0.81 0.5 13.5 8.4 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 7.3 12.4 Ying Li^ YINGLI SP 0.16 0.3 n.a. n.a. n.a. n.a. 64.8 196.2 22.4 331.2 6.9 42.9 4.7 13.0 7.8 16.1 4.1 14.7 Yuzhou Properties* 1628 HK 2.00 1.0 3.5 2.5 n.a. n.a. 9.6 11.7 5.5 9.9 2.7 5.8 3.6 6.5 3.6 6.5 2.4 3.3 Zhong An 672 HK 0.80 0.2 n.a. n.a. 1.7 128.9 2.9 22.3 7.8 13.8 3.0 12.3 9.9 14.9 5.3 10.3 8.3 8.3 Average** 7.7 4.1 4.5 86.7 9.9 27.8 6.5 32.6 3.3 10.5 3.5 7.7 4.2 8.3 4.1 6.4 Average (Overall)@ 7.9 6.3 4.6 56.7 8.2 24.8 8.1 22.3 3.8 10.6 4.2 8.9 5.2 9.1 4.3 6.9

^ Denominated in SGD for price # Exclude Soho China & Shui On Land for 15F & 16F PE ** Exclude Greenland, First Sponsor & Lai Fung for 15F & 16F PE @ Exclude Soho China, Shui On Land, Greenland, First Sponsor & Lai Fung for 15F & 16F PE ^^ FY15: 16F; FY16: FY17F Source: Thomson Reuters, *DBS Vickers

Page 9

Company Focus China Vanke

PE valuations, 2007 to 2014 (based on reported earnings)

3-mth daily 6-Jan Mkt trading FY15 FY16 PE (x) Price Cap value PE PE Avg Peak Trough Peak Peak Peak Peak Peak Peak Peak Company Name Code HK$ US$bn US$m x x PE (x) 2007 2008 2008 2009 2010 2011 2012 2013 2014 China Overseas* 688 HK 25.25 32.1 69.7 8.1 7.4 10.0 34.3 10.2 26.0 21.2 12.0 9.7 10.4 9.0 7.1 Country Garden* 2007 HK 3.11 9.1 6.5 6.0 5.6 14.8 41.7 11.3 86.8 25.3 10.6 9.0 8.2 9.5 7.2 CR Land* 1109 HK 21.1 18.9 31.4 10.9 9.6 12.0 52.0 13.1 35.6 21.6 14.5 10.2 11.5 9.3 7.8 China Va nke 'H' Susp 2202 HK 20.80 40.0 31.6 11.3 9.7 9.0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 9.9 10.5 Dalian Wanda 'H' 3699 HK 42.5 24.8 14.8 9.1 7.4 10.1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6.1 Evergrande* 3333 HK 6.28 11.3 40.0 11.1 9.4 4.8 n.a. n.a. n.a. 52.1 7.0 6.6 6.3 4.5 3.9 Longfor 960 HK 11.24 8.5 4.8 7.5 6.7 6.9 n.a. n.a. n.a. 14.8 11.7 9.2 10.2 8.7 6.3 Shimao Property* 813 HK 12.94 5.8 11.0 5.0 4.7 9.2 18.7 11.4 63.7 14.2 9.6 6.7 7.4 7.6 6.8 Average 8.6 7.6 9.6 36.7 11.5 53.0 24.9 10.9 8.6 9.0 8.4 7.0 Agile Property* 3383 HK 4.17 2.1 2.6 4.0 4.4 6.3 28.8 1.2 7.9 20.9 6.1 9.6 5.9 7.2 5.7 China South City*^^ 1668 HK 1.62 1.7 3.3 18.0 12.4 7.5 n.a. n.a. n.a. n.a. n.a. 5.8 4.3 7.0 9.7 COGO* 81 HK 2.97 0.9 0.9 4.1 2.8 7.6 12.4 32.9 188.9 n.a. 4.9 8.0 8.9 9.2 13.3 China Jinmao Hldgs* 817 HK 2.52 3.5 3.8 8.8 7.0 9.0 7.4 8.4 33.1 24.9 17.0 9.6 9.5 6.8 5.1 Greentown 3900 HK 7.5 2.1 4.4 5.0 4.7 8.7 25.5 4.2 30.5 18.9 10.7 5.2 4.3 6.2 12.7 Guangzhou R&F 2777 HK 9.25 3.8 7.3 4.6 4.1 7.3 26.4 3.3 28.6 20.6 10.2 8.3 6.0 5.2 6.0 Hopson Dev 754 HK 7.48 2.2 0.9 13.4 12.4 6.0 12.3 1.1 16.2 4.1 3.9 11.7 7.3 8.2 7.1 KWG Property 1813 HK 5.35 2.1 4.4 4.4 3.8 7.8 9.3 6.2 n.a. 19.5 11.8 6.9 4.9 4.9 4.6 Poly (Hong Kong) 119 HK 2.4 1.1 4.6 28.6 18.0 13.9 44.2 11.4 59.7 40.1 18.6 10.8 8.3 9.1 16.4 Shenzhen Inv 604 HK 3.45 3.3 6.0 8.5 7.3 7.0 13.6 2.2 20.5 13.7 8.9 6.7 5.5 6.6 5.4 Shui On Land* 272 HK 2.06 2.1 3.4 6.7 n.a. 7.3 15.1 1.6 11.7 7.8 6.3 4.7 9.1 10.4 9.6 Sino-Ocean Land* 3377 HK 4.71 4.6 29.4 8.5 6.8 9.9 24.0 4.5 25.5 22.5 16.2 12.8 8.5 8.3 7.3 Soho China* 410 HK 3.72 2.5 5.6 59.1 35.5 15.4 20.5 n.a. n.a. 6.7 7.9 8.0 2.4 3.8 7.2 Sunac China 1918 HK 5.4 2.4 8.5 4.3 3.6 3.7 n.a. n.a. n.a. n.a. n.a. 3.2 5.4 6.0 6.9 Yanlord Land*^ YLLG SP 1 1.4 0.8 9.9 6.8 8.4 33.4 4.1 27.4 17.6 11.0 11.6 8.0 10.4 8.1 Yuexiu Property* 123 HK 1.29 2.1 2.8 8.0 6.8 7.3 15.9 3.4 20.2 n.a. 12.0 2.5 5.7 6.8 6.5 Average# 9.3 7.2 8.3 20.6 6.5 39.2 18.1 10.4 7.8 6.5 7.3 8.2 BJ Cap Land 'H' 2868 HK 3.38 1.8 1.5 3.7 3.0 4.0 23.6 2.3 21.7 13.2 6.3 5.4 4.7 4.0 3.3 BJ North Star 'H' 588 HK 2.56 1.1 0.5 8.8 6.7 7.9 46.9 1.6 12.7 6.1 6.9 5.2 5.7 7.7 9.8 C C Land* 1224 HK 2.45 0.8 0.4 5.6 27.0 10.0 36.3 n.a. n.a. n.a. 36.8 27.0 13.7 16.1 4.7 Central China* 832 HK 1.58 0.5 0.2 4.3 4.0 4.9 n.a. 1.1 6.7 11.0 7.4 6.6 6.3 6.1 5.9 China SCE 1966 HK 1.71 0.8 0.5 4.9 4.0 5.2 n.a. n.a. n.a. n.a. 5.9 6.1 6.3 5.8 5.9 CIFI Holdings 884 HK 1.64 1.4 1.4 4.1 3.4 3.6 n.a. n.a. n.a. n.a. n.a. n.a. 2.6 4.6 4.7 First Sponsor*^ FSG SP 1.23 0.5 0.1 6.7 5.9 13.6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 16.6 Glorious Property 845 HK 0.9 0.9 0.4 31.6 19.9 12.9 n.a. n.a. n.a. 8.8 6.3 8.5 10.1 39.2 (3.8) Hydoo Int'l 1396 HK 1.03 0.5 0.1 n.a. n.a. 11.5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 28.2 Kaisa Group 1638 HK 1.56 1.0 0.0 2.5 2.2 3.3 n.a. n.a. n.a. 20.2 3.2 7.0 4.8 3.9 n.a. Lai Fung* 1125 HK 0.131 0.3 0.1 6.2 n.a. 5.8 n.a. 2.1 15.2 5.9 7.8 5.4 2.5 5.7 14.1 Minmetals Land 230 HK 0.87 0.4 0.1 4.8 3.3 8.0 19.8 2.2 16.4 38.4 12.1 9.5 15.6 11.8 8.5 Powerlong 1238 HK 1.63 0.8 0.4 4.6 3.7 2.9 n.a. n.a. n.a. 3.0 3.7 3.2 3.1 5.4 4.0 Renhe Commercial 1387 HK 0.335 1.9 1.4 n.a. n.a. n.a. n.a. 7.8 9.3 9.1 9.4 5.7 17.4 (8.4) (5.5) Road King 1098 HK 6.66 0.6 0.3 n.a. n.a. 7.2 14.7 2.1 15.9 6.8 8.8 6.7 6.1 6.0 5.4 Greenland* 337 HK 2.87 1.0 2.0 6.5 3.2 9.3 13.1 2.4 39.3 7.2 4.9 4.2 (1.8) 364.4 48.0 SRE Group 1207 HK 0.335 0.9 0.6 n.a. n.a. 1.3 7.9 3.2 20.7 4.7 4.8 6.7 6.8 13.3 (13.9) Wuzhou Int'l 1369 HK 0.81 0.5 1.9 13.5 8.4 17.5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 4.2 32.2 Ying Li^ YINGLI SP 0.161 0.3 0.9 n.a. n.a. 26.7 n.a. 1.8 4.8 112.2 33.8 17.6 11.5 26.6 17.7 Yuzhou Properties* 1628 HK 2 1.0 1.1 3.5 2.5 5.8 n.a. n.a. n.a. 3.2 4.7 4.6 7.1 4.1 4.5 Zhong An 672 HK 0.8 0.2 0.0 n.a. n.a. 11.3 21.8 4.2 29.4 15.4 12.4 10.4 7.2 9.1 16.6 Average** 7.7 4.1 8.6 23.0 2.8 17.5 17.7 10.3 8.2 7.2 27.9 10.4 Average (Overall)@ 7.9 6.3 8.8 23.8 5.8 32.4 19.1 10.4 8.1 7.2 16.8 9.0 HSI Index HSI 19.2 9.1 23.1 18.2 13.6 11.7 11.0 11.3 11.1

Page 10

Company Focus China Vanke

Share price performance

Price Performance 2007 1-wk 2-wk 1-mth 2-mth 3-mth 4-mth 5-mth 6-mth YTD 1-yr 2011 2012 2013 2014 high %%%%%%%%%%% %%% % Tier 1 players China Overseas 688 HK (5.4) (6.1) (8.3) (5.1) 7.2 17.3 8.3 2.1 12.8 4.4 (9.7) 78.0 (5.6) 5.7 34.5 Country Garden 2007 HK (0.3) (0.3) 0.3 2.6 9.5 20.5 3.7 (3.4) 0.3 (6.9) (2.3) 46.4 15.3 (32.8) (75.9) CR Land 1109 HK (4.1) (5.4) (6.6) (4.3) 7.8 15.4 (0.9) (5.2) 6.7 (2.0) (12.1) 69.1 (8.9) 6.4 1.9 China Vanke 'H' 2202 HK (9.2) (9.2) (4.4) 9.6 22.8 23.4 12.2 12.1 20.2 10.4 n.a. n.a. n.a. n.a. n.a. Dalian Wanda 3699 HK (5.8) (4.2) (9.7) (17.2) (9.5) (6.1) (23.1) (18.3) (14.1) (13.1) n.a. n.a. n.a. n.a. n.a. Evergrande 3333 HK (6.5) (0.8) 7.2 0.3 36.5 31.1 26.6 52.4 100.0 83.6 (14.8) 32.0 (30.4) 6.1 n.a. Longfor Properties 960 HK (3.9) 1.3 0.9 (0.2) 13.7 22.0 2.0 (1.7) 12.5 0.5 (18.9) 72.9 (28.6) (7.8) n.a. Shimao Property 813 HK (6.2) (7.4) (6.6) (4.7) 0.6 28.4 (3.4) (12.0) (25.4) (32.0) (43.5) 120.5 21.9 (2.7) (55.5) Average (5.2) (4.0) (3.4) (2.4) 11.1 19.0 3.2 3.3 14.1 5.6 (16.9) 69.8 (6.1) (4.2) (23.7) Tier 2 players Agile Property 3383 HK (4.1) (4.8) (5.7) (5.2) 0.0 19.8 (6.7) (15.9) (5.4) (21.5) (39.2) 56.6 (23.8) (46.9) (78.8) China South City 1668 HK (6.4) (6.9) (8.5) (14.3) (18.2) (14.3) (28.6) (27.4) (54.2) (54.6) (32.0) 17.0 88.0 60.9 n.a. COGO 81 HK (5.1) (9.2) 2.4 13.4 18.8 28.6 (4.5) (12.6) (24.6) (32.2) 88.6 105.6 (20.7) (46.7) (34.6) China Jinmao Hldgs 817 HK (5.3) (3.4) 0.8 10.0 20.6 42.4 0.8 (2.3) 13.5 5.9 (35.9) 85.9 (3.2) (17.4) (59.6) Greentown 3900 HK (2.7) (11.0) (10.0) 4.7 26.9 45.1 (0.5) (13.5) (2.6) (4.0) (60.8) 321.4 (16.6) (35.0) (61.7) GZ R&F 2777 HK (3.0) (3.7) (1.6) 13.4 24.7 37.0 22.5 3.4 (2.5) (9.3) (44.8) 110.1 (12.1) (16.3) (78.7) Hopson Dev 754 HK (4.3) (3.2) 1.8 9.4 23.2 31.9 9.4 15.6 5.4 (5.9) (51.8) 207.2 (24.6) (24.0) (76.1) KWG 1813 HK (7.3) (6.5) (9.0) (8.2) (2.9) 18.9 (6.6) (13.1) 5.3 0.9 (55.7) 122.1 (26.1) 33.4 (60.7) Poly HK 119 HK (5.1) (4.4) (6.3) (9.8) 5.3 26.3 (16.1) (22.3) (24.8) (38.9) (55.7) 79.8 (31.7) (22.9) (79.0) Shenzhen Inv 604 HK (6.8) (3.6) (1.1) 6.5 15.4 30.2 14.6 9.2 54.7 40.2 (48.7) 125.9 (7.0) (23.6) (55.5) Shui On Land 272 HK (4.2) (3.7) (5.5) (8.8) 10.2 24.1 3.0 6.2 12.6 5.1 (36.9) 58.9 (31.1) (23.1) (79.1) Sino-Ocean 3377 HK (4.5) (7.5) 0.4 7.8 1.7 23.9 (7.1) (11.1) 6.8 (3.7) (29.3) 60.8 (12.1) (13.4) (68.6) SOHO China 410 HK 0.3 0.3 9.4 (7.5) 9.4 27.0 (20.5) (23.1) (32.1) (36.2) (10.6) 20.3 7.4 (18.0) (68.8) Sunac China 1918 HK (8.5) (8.3) (7.5) 1.5 16.9 31.1 (19.8) (23.5) (31.6) (33.3) (42.1) 272.7 (22.5) 69.7 n.a. Yanlord Land YLLG SP (1.0) (1.5) (4.3) (3.8) (2.4) (1.5) 3.6 (9.5) (3.8) (5.7) (43.2) 59.2 (19.4) (15.1) (76.3) Yuexiu Property 123 HK (2.3) (3.7) (3.7) (7.2) (4.4) 12.2 (12.8) (15.1) (13.4) (21.8) (46.2) 118.8 (22.0) (16.8) (55.2) Average (4.4) (5.1) (3.0) 0.1 9.1 23.9 (4.3) (9.7) (6.1) (13.4) (34.0) 113.9 (11.1) (9.7) (66.6) Tier 3 players BJ Cap. Land 2868 HK (3.4) (2.0) (5.6) (15.7) 3.4 18.6 (8.4) (34.1) 15.0 0.0 (41.2) 110.5 (18.0) 11.4 (54.7) BJ North Star 588 HK (0.8) (3.4) (3.0) (1.2) 10.3 27.4 (0.8) (16.3) 3.6 (6.9) (45.5) 82.6 (16.7) 41.1 (67.6) C C Land 1224 HK 1.2 2.1 14.0 11.4 26.9 38.4 20.7 50.3 81.5 65.5 (45.0) 88.9 (28.3) (30.8) (85.3) Central China 832 HK (2.5) (3.1) (3.1) 0.6 6.8 11.3 (12.2) (22.9) (9.7) (15.1) (31.2) 76.8 (12.8) (26.8) n.a. China SCE Property 1966 HK 2.4 0.0 (1.2) 0.0 (2.3) 2.4 (5.0) (0.6) 5.6 7.5 (27.7) 20.2 16.2 (12.4) n.a. CIFI Holdings 884 HK (4.7) (5.2) (7.9) (8.4) 17.1 17.1 5.1 (13.7) 6.5 (1.2) n.a. n.a. 17.1 (6.1) n.a. First Sponsor FSG SP (2.4) 0.0 (2.4) (0.8) 2.5 (0.4) (5.0) (3.5) (1.6) 0.0 n.a. n.a. n.a. n.a. n.a. Glorious Property 845 HK (1.1) 2.3 7.1 (9.1) (1.1) 8.4 (5.3) (12.6) (25.0) (26.2) (49.1) 7.4 14.4 (28.1) n.a. Hydoo Int'l 1396 HK 3.0 (1.0) (9.6) (13.4) 5.1 13.2 13.2 (5.5) (46.6) (45.5) n.a. n.a. n.a. (13.5) n.a. Kaisa Group 1638 HK 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (1.9) (1.9) (42.0) 79.1 4.2 (36.4) n.a. Lai Fung 1125 HK (3.0) 6.5 3.1 (0.8) 6.5 13.9 (20.1) (16.0) (16.6) (18.1) (47.3) 25.5 (5.3) (19.9) (71.9) Minmetals Land 230 HK (3.3) (3.3) 7.4 7.4 13.0 22.5 2.4 (1.1) (2.2) (8.4) (53.4) 70.7 (19.5) (13.6) (76.5) Powerlong 1238 HK (0.6) 1.2 0.6 6.5 6.5 19.0 12.4 10.1 49.5 39.3 (59.1) 58.7 0.6 (34.3) n.a. Renhe Commercial 1387 HK (5.6) (11.8) (9.5) (20.2) (15.2) (13.0) (44.2) (25.6) (1.5) (16.3) (34.6) (8.9) (38.9) (28.1) n.a. Road King 1098 HK (1.3) 0.0 (0.4) (1.2) (2.5) 1.1 (8.0) (3.5) 1.7 (1.2) (36.9) 52.1 9.6 (11.7) (61.1) Greenland 337 HK (5.0) (8.6) (12.2) (17.3) (21.6) (7.7) (33.1) (36.4) (6.8) (7.7) (66.1) 53.5 90.4 (18.3) (61.6) SRE Group 1207 HK (5.6) (8.2) (13.0) (15.2) (14.1) (9.5) (9.5) 0.0 59.5 53.0 (55.7) 24.2 (32.9) (20.8) (90.2) Wuzhou Int'l 1369 HK (1.2) (3.6) (3.6) (21.4) (29.6) (35.2) (40.0) (39.1) (44.9) (41.7) n.a. n.a. n.a. 14.0 n.a. Ying Li YINGLI SP (3.6) (2.4) (3.0) (13.0) (12.0) 22.9 (12.5) (26.8) (34.3) (41.5) (41.4) 45.1 6.8 (38.0) (86.6) Yuzhou Properties 1628 HK (1.0) (0.5) 4.2 3.1 7.0 19.8 19.0 13.6 2.6 0.5 (18.6) 37.1 2.9 1.0 n.a. Zhong An 672 HK (3.6) 0.0 (2.4) (5.9) (10.1) 9.6 (5.9) (9.1) (29.8) (34.4) (43.9) 7.5 26.3 (20.8) (86.1) Average (2.0) (2.0) (1.9) (5.4) (0.2) 8.6 (6.5) (9.2) 0.2 (4.8) (43.4) 48.9 0.9 (14.6) (74.2)

Average (Overall) (3.4) (3.4) (2.6) (2.9) 5.1 15.9 (4.0) (7.2) 0.5 (6.0) (35.5) 78.8 (4.9) (11.2) (63.2)

Hang Seng Index 0.2 (0.5) (1.4) (4.1) 0.4 5.2 (10.1) (13.1) (7.1) (6.7) (20.0) 22.9 2.9 1.3 (30.7) MSCI China (3.8) (5.2) (6.0) (10.2) (5.0) 2.2 (13.1) (18.0) (13.7) (14.5) (20.4) 18.7 0.4 4.7 (45.2)

Source: Thomson Reuters

Page 11

Company Focus China Vanke

Key Assumptions FY Dec 2015F 2016F 2017F

Property price growth 0.0% 0.0% 0.0% Rental for office 5.0% 5.0% 5.0%

Rental for retail 5.0% 5.0% 5.0% ADR growth for hotel 0.0% 0.0% 0.0%

Source: Company, DBS Vickers

Segmental Breakdown (RMB m)

FY Dec 2013A 2014A 2015F 2016F 2017F Revenues (RMB m) Sales of properties 123,546 133,752 167,419 197,848 215,612 Construction contracts 1,432 1,548 1,631 1,710 1,761 Property management and related 1,385 1,874 2,029 2,196 2,596 Othersi 1,092 820 979 1,217 1,987 Total 127,454 137,994 172,058 202,972 221,956 Source: Company, DBS Vickers

Income Statement (RMB m) Margins Trend FY Dec 2013A 2014A 2015F 2016F 2017F 30% Turnover 127,454 137,994 172,058 202,972 221,956 Cost of Goods Sold (92,814) (103,359) (129,329) (152,771) (167,928) 25%

Gross Profit 34,639 34,635 42,729 50,201 54,029 20% Other Opg (Exp)/Inc (7,104) (8,609) (10,287) (11,729) (12,382) 15% Operating Profit 27,536 26,025 32,442 38,472 41,647 10% Associates Inc 999 2,043 1,337 2,310 2,317 Net Interest (Exp)/Inc (756) (618) (22) 9 73 5%

Exceptional Gain/(Loss) 66 2,534 141 0 0 0% Pre-tax Profit 27,847 29,987 33,898 40,791 44,036 2013A 2014A 2015F 2016F 2017F Gross margin Core net margin Tax (9,550) (10,699) (11,458) (13,806) (15,644) Minority Interest (3,179) (3,542) (5,387) (7,103) (7,475) Net Profit 15,119 15,745 17,053 19,882 20,917 Core Profit 15,060 13,768 16,912 19,882 20,917

Sales Gth (%) 31.6 8.3 24.7 18.0 9.4 Net Profit Gth (%) 20.5 4.1 8.3 16.6 5.2 Core Profit Gth (%) 21.9 (8.6) 22.8 17.6 5.2 Gross Mgn (%) 27.2 25.1 24.8 24.7 24.3 Core Profit Margin (%) 11.8 10.0 9.8 9.8 9.4 Tax Rate 34.3 35.7 33.8 33.8 35.5

Source: Company, DBS Vickers

Page 12

Company Focus China Vanke

Balance Sheet (RMB m) Asset Breakdown FY Dec 2013A 2014A 2015F 2016F 2017F Fixed Other LT Cash/ST Assets - Assets - Fixed Assets 3,475 4,803 5,227 5,621 5,986 0.9% Invsmts - 3.9% 7.8% Invts in Assocs & JVs 10,531 19,234 20,571 22,880 25,197 Other LT Assets 23,152 19,566 23,622 26,846 27,192 Cash & ST Invts 44,365 62,715 47,499 55,507 61,046 Other Current Assets 397,951 402,322 535,507 617,426 688,424 Total Assets 479,475 508,640 632,425 728,281 807,845

ST Debt 32,624 22,832 22,832 22,832 22,832 Other Cur Assets - Creditors 287,930 313,967 420,830 495,678 553,818 87.5% Other Current Liab 8,367 8,855 8,855 8,855 8,855 LT Debt 44,082 46,149 46,149 46,149 46,149 Other LT Liabilities 1,032 943 943 943 943 Minority Interests 28,543 27,729 33,116 40,220 47,695 Shareholder’s Equity 76,896 88,165 99,699 113,603 127,552 Total Capital 479,475 508,640 632,425 728,281 807,845

Share Capital (m) 11,013 11,017 11,038 11,038 11,038 Net Cash/(Debt) (32,340) (6,266) (21,482) (13,474) (7,935) Working Capital 101,653 79,500 105,822 112,892 125,751 Net Gearing (%) 30.7 5.4 16.2 8.8 4.5

Source: Company, DBS Vickers

Cash Flow Statement (RMB m) Operating cashflow FY Dec 2013A 2014A 2015F 2016F 2017F RMB

50,000m Profit Before Tax 27,847 29,987 33,898 40,791 44,036 40,000 Assoc. & JV Inc/(loss) (999) (2,043) (1,337) (2,310) (2,317) 30,000 Tax Paid (11,795) (12,554) (11,458) (13,806) (15,644) 20,000 Depr/Amort 179 549 576 605 635 10,000 Chg in Wkg.Cap. (19,971) 23,448 (30,377) (10,295) (13,204) 0 2013A 2014A 2015F 2016F 2017F Other Non-Cash 6,663 2,339 22 (9) (73) -10,000 Operating CF 1,924 41,725 (8,676) 14,976 13,434 -20,000 Net chg in inv. (1,829) (4,011) 0 0 0 Assoc, MI, Invsmt (6,126) 524 71 102 166 Investing CF (7,954) (3,487) 71 102 166 Net Chg in Debt 3,514 (7,843) 0 0 0 New Capital 0 0 0 0 0 Dividend (1,981) (4,516) (5,519) (5,977) (6,968) Other Financing CF (3,591) (7,258) (1,093) (1,093) (1,093) Financing CF (2,058) (19,617) (6,612) (7,070) (8,061) Chg in Cash (8,116) 18,649 (15,216) 8,009 5,539 Chg in Net Cash (13,039) 26,074 (15,216) 8,009 5,539

Source: Company, DBS Vickers

Page 13

Company Focus China Vanke

H Share - Target Price & Ratings History

S.No. Date Closing Target Rating HK$ Price Price 24.0 1: 23-Jun-15 HK$19.32 HK$23.69 Buy 12 23.0 11 2: 6-Jul-15 HK$18.62 HK$23.69 Buy 1 22.0 4 5 9 10 3: 8-Jul-15 HK$19.08 HK$23.69 Buy 2 3 6 8 21.0 7 4: 28-Jul-15 HK$19.72 HK$23.69 Buy 5: 18-Aug-15 HK$18.20 HK$23.41 Buy 20.0 6: 7-Sep-15 HK$16.84 HK$23.41 Buy 19.0 7: 30-Sep-15 HK$16.54 HK$23.41 Buy 18.0 8: 9-Oct-15 HK$17.26 HK$23.41 Buy 17.0 9: 28-Oct-15 HK$18.22 HK$23.41 Buy 10: 6-Nov-15 HK$18.98 HK$23.41 Buy 16.0 11: 7-Dec-15 HK$20.60 HK$23.41 Buy 15.0 12: 5-Jan-16 HK$22.90 HK$23.41 Buy Jul-15 Jan-15 Jan-16 Jun-15 Feb-15 Oct-15 Apr-15 Sep-15 Dec-15 Nov-15 Mar-15 Aug-15 May-15

Source: DBS Vickers

A Share - Target Price & Ratings History

S.No. Date Closing Target Rating RMB Price Price 30.0 1 2 34 5 6 7 8910 11 12 1: 23-Jun-15 RMB14.27 RMB18.91 Buy 2: 6-Jul-15 RMB13.7 RMB18.91 Buy 25.0 3: 8-Jul-15 RMB14.52 RMB18.91 Buy 20.0 4: 28-Jul-15 RMB15.41 RMB18.91 Buy 5: 18-Aug-15 RMB14.76 RMB19.31 Buy 15.0 6: 7-Sep-15 RMB13.6 RMB19.31 Buy 7: 30-Sep-15 RMB12.73 RMB19.31 Buy 10.0 8: 9-Oct-15 RMB13.23 RMB19.31 Buy 9: 28-Oct-15 RMB13.69 RMB19.31 Buy 5.0 10: 6-Nov-15 RMB14.21 RMB19.31 Buy 0.0 11: 7-Dec-15 RMB18.02 RMB19.31 Buy 12: 5-Jan-16 RMB24.43 RMB19.31 Buy Jan-15 Jan-16 Jun-15 Oct-15 Mar-15 Aug-15

Source: DBS Vickers

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Company Focus China Vanke

DBSV recommendations are based an Absolute Total Return* Rating system, defined as follows: STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame) BUY (>15% total return over the next 12 months for small caps, >10% for large caps) HOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps) FULLY VALUED (negative total return i.e. > -10% over the next 12 months) SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)

Share price appreciation + dividends

GENERAL DISCLOSURE/DISCLAIMER This report is prepared by DBS Vickers (Hong Kong) Limited (“DBSVHK”) This report is solely intended for the clients of DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd and DBSVHK, its respective connected and associated corporations and affiliates only and no part of this document may be (i) copied, photocopied or duplicated in any form or by any means or (ii) redistributed without the prior written consent of DBSVHK.

The research set out in this report is based on information obtained from sources believed to be reliable, but we (which collectively refers to DBSVHK, its respective connected and associated corporations, affiliates and their respective directors, officers, employees and agents (collectively, the “DBS Group”)) do not make any representation or warranty as to its accuracy, completeness or correctness. Opinions expressed are subject to change without notice. This document is prepared for general circulation. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate independent legal or financial advice. The DBS Group accepts no liability whatsoever for any direct, indirect and/or consequential loss (including any claims for loss of profit) arising from any use of and/or reliance upon this document and/or further communication given in relation to this document. This document is not to be construed as an offer or a solicitation of an offer to buy or sell any securities. The DBS Group, along with its affiliates and/or persons associated with any of them may from time to time have interests in the securities mentioned in this document. The DBS Group may have positions in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment banking and other banking services for these companies.

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The valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report were based upon a number of estimates and assumptions and are inherently subject to significant uncertainties and contingencies. It can be expected that one or more of the estimates on which the valuations, opinions, estimates, forecasts, ratings or risk assessments were based will not materialize or will vary significantly from actual results. Therefore, the inclusion of the valuations, opinions, estimates, forecasts, ratings or risk assessments described herein IS NOT TO BE RELIED UPON as a representation and/or warranty by the DBS Group (and/or any persons associated with the aforesaid entities), that:

(a) such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, and (b) there is any assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments stated therein.

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ANALYST CERTIFICATION The research analyst(s) primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views. The analyst(s) also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report. As of 6 January 2016, the analyst(s) and his/her spouse and/or relatives who are financially dependent on the analyst(s), do not hold interests in the securities recommended in this report (“interest” includes direct or indirect ownership of securities).

COMPANY-SPECIFIC / REGULATORY DISCLOSURES DBSVHK and its subsidiaries do not have a proprietary position in the securities recommended in this report as of 31 Dec 2015. 1. 2. Compensation for investment banking services: DBS Bank Ltd., DBSVS, DBSVHK, their subsidiaries and/or other affiliates of DBSVUSA have received compensation, within the past 12 months for investment banking services from Sino-Ocean Land Holdings Limited (3377 HK) and Yuexiu Property Company Limited (123 HK) as of 30 Nov 2015.

DBS Bank Ltd., DBSVS, DBSVHK, their subsidiaries and/or other affiliates of DBSVUSA, within the next 3 months, will receive or intend to seek compensation for investment banking services from China Overseas Land & Investment Limited (688 HK) as of 30 Nov 2015.

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Company Focus China Vanke

DBSVUSA does not have its own investment banking or research department, nor has it participated in any public offering of securities as a manager or co-manager or in any other investment banking transaction in the past twelve months. Any US persons wishing to obtain further information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this document should contact DBSVUSA exclusively.

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Wong Ming Tek, Executive Director, ADBSR

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