Global Equity Market Performance

Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited July 16, 2012

Global Equity Market Update Piper Jaffray Asia Capital Markets Group

U.S. stocks rose last week, reversing losses on Friday, as a rally in J. West Riggs (Head of Asia ECM), [email protected], Tel: 852 3755 - 2333 JPMorgan Chase and speculation that China will boost stimulus Michael Cheung (Principal), [email protected], Tel: 852 3755 - 2323 measures tempered concern about earnings and the global economy. Lynne Wu(Analyst), [email protected], Tel: 852 3755 - 2325 Last week, the Dow rose less than 0.1% to close at 12,777.1 and the S&P 500 gained 0.2% to close at 1,356.8, while the NASDAQ was down by 1.0% to close at 2,908.5. Global Market Performance Performance (%) European stocks climbed for a sixth straight week, the longest winning streak in more than two years, anticipating that central bank policymakers will add to stimulus measures to support the Last price 1 day 1 week 1 month 2012YTD economy. National benchmark indexes rose in 12 of the 18 western European markets. Global Indices 12,777.1 1.6% 0.0% 2.2% 3.1% The Stoxx Europe 600 Index climbed 0.7% to 256.26 this week, for Dow Jones the longest stretch of gains since April 2010. 1,356.8 1.6% 0.2% 3.2% 6.2% S&P 500 The U.K.’s FTSE 100 increased 0.1% to close at 5,666.1, France’s 2,908.5 1.5% (1.0%) 3.2% 9.8% CAC 40 advanced 0.4% and Germany’s DAX rallied 2.3%. NASDAQ 5,666.1 1.0% 0.1% 3.3% (0.6%) FTSE Asian stocks fell, with the regional benchmark posting its largest Asian Indices weekly retreat since May, amid concerns that a slowdown in 19,092.6 0.4% (3.6%) 0.3% 1.1% economies from China and Korea to Australia will hurt corporate Hang Seng 9,237.0 0.8% (4.6%) (4.4%) (9.8%) profits. HSCEI 2,289.1 0.0% (1.7%) (5.8%) (0.7%) Last week, the MSCI Asia Pacific Index slid 2.8%, the largest weekly Shanghai A decline since the third week in May 2012 to close at 115.28, while the 8,724.1 0.0% (3.3%) 1.6% 3.2% Nikkei lost 3.3% to close at 8,724.1. Nikkei 225 Global Indices Performance (Rebased to 100) HK Weekly Market Update 200 Hong Kong shares ended their worst week in two months, as investors showed relief that a slowdown in China's economic 180 growth to 7.6% in the second quarter was not worse than expected. 160 Last week, the Hang Seng Index lost 3.6% to close at 19,092.6, while the HSCEI fell 4.6%, closing at 9,237. 140

Among index constituents, two gained and 47 declined. Among top 120 gainers, Sinopec Corp increased 1.6% and China Res Power gained 100 0.8%. Among losers, China Unicom slid 8.1%, Want Want China Corp fell 8.8% and Li & Fung declined 9.0%. 80

China's economic growth decelerated to its slowest pace since the 60 global financial crisis, damping hopes that the world's second 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29-Oct-11 13-Jul-12 largest economy will provide much support for the faltering global S&P 500 NASDAQ FTSE Hang Seng Shanghai A outlook and prompting expectations that Beijing will make fresh moves to stimulate growth. China's GDP slowed to 7.6% year-over- year in the second quarter, down from 8.1% in the first quarter and representing its lowest level since early 2009. GDP was dragged down by a decline in exports due to the European crisis, stagnant HSI Sectoral Weekly Performance real estate investment and a slowdown in consumption. 0.0%

(1.0%) HSI Weekly Performance (2.0%) (1.8%) 19,428.1 19,396.4 19,419.9 19,092.6 15 19,025.1 20,000 (3.0%) 10 19,000 (3.0%) (4.0%) (3.4%) 5 18,000 (4.0%) 5.4 4.9 5.6 6.1 4.9 0 17,000 (5.0%) 9-Jul-12 10-Jul-12 11-Jul-12 12-Jul-12 13-Jul-12 Utilities Property Comm/Indu Finance Turnover (in US$ billion) Close Source: DataStream, Reuters, Hang Seng Index Website

1 Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited July 16, 2012

Piper Jaffray China Index

PJ China Index Performance Since January 2009 Sector Breakdown and Performance(1)

Current Level: 1,140.9 Business Services and 3,000 Industrial Growth 21%

Telecom, Media & 2,500 Technology 37%

Health 2,000 Care 10%

1,500 Clean Tech/Energy 12% Consumer Financial/Real Estate 1,000 14% 6%

500 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29-Oct-11 13-Jul-12 4.0% PJ China Index

0.8%

Week-to-date change (38.12) -3.23% 0.0%

2012 Year-to-date change (36.47) -3.10% (1.6%) LTM change (860.35) -42.99% (4.0%) (3.3%) (3.4%) (3.4%) (3.5%) 6-month change (100.20) -8.07% Health Care Clean Tech/Energy 2012 Year-to-date high (pts) 1,426.45 27-Mar-12 Telecom, Media & Technology Business Services and Industrial Growth

2012 Year-to-date low (pts) 1,134.30 12-July-12 Consumer Financial/Real Estate

Top Five Weekly Gainers and Losers

40.0% 15.4% 12.6% 12.4% 11.9% 20.0% 10.2% 0.0% (20.0% ) (12.7% ) (14.7% ) (16.7% ) (40.0% ) (20.5% ) (26.5% ) (60.0% ) (80.0% ) (100.0% )

China Ming Synutra Acorn Daqo New L&L Energy 7 Days Group Isoftstone Lentuo Vanceinfo Am bow Yang Wind International International Energy Holdings Holdings International Technologies Education Power Group Holding

Note: (1) Sector Breakdown as of July 13, 2012; Sector Performance chart represents weekly percentage change (2) Piper Jaffray China Index is a modified market capitalization weighted index comprised of U.S. exchange listed securities of companies with significant exposure to the Chinese economy and market capitalization between US$100m and US$2b. The index was developed with a base level of 1,000 as of January 1, 09 (Please refer to the last page of this report for constituents) Source: Bloomberg

2 Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited July 16, 2012 Macro Indicators and Global Currencies Performance – Since January 2009

Gold (UBS-IB) Copper (NYC) CBOE Volatility Index (VIX)

US$/oz US$/lb Current Level: US$1,588.44 per Current Level: US$3.459 per Current Level: 16.74 ounce pound

2,000 5 60

1,800 50 4

1,600 40

1,400 3

30 1,200 2 20 1,000

800 1 10 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29 -O ct -11 13-Jul-12 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29 -O ct -11 13-Jul-12 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29 -O ct -11 13-Jul-12

Spot WTI Crude Stowe Global Coal Index Baltic Dry Index

US$/barrel Current Level: US$87.1 per Current Level: 3,196.66 Current Level: 1110 barrel

120 8,000 5,000 110 7,000 100 4,000

6,000 90 3,000 80 5,000

70 4,000 2,000 60 3,000 50 1,000 2,000 40

30 1,000 0 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29 -O ct -11 13-Jul-12 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29 -O ct -11 13-Jul-12 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29 -O ct -11 13-Jul-12

Euro Sterling Japanese Yen

EUR/US$ GBP/US$ JPY/US$

Current Level: 1.225 Current Level: 1.5572 Current Level: 79.18

1. 6 1. 8 105

1. 5 1. 7 100

1. 4 1. 6 95

1. 3 1. 5 90

1. 2 1. 4 85

1. 1 1. 3 80

1. 0 1. 2 75 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29-Oct-11 13-Jul-12 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29-Oct-11 13-Jul-12 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29-Oct-11 13-Jul-12

Source: DataStream, Reuters

3 Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited July 16, 2012

HK and U.S. China IPO Activity

HK and U.S. China IPO Activity by Month

18 25,000

20,000

15,000

10,000

5,000

0 0

Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-1 0 Feb-1 0 Mar-10 Apr-1 0 May-10 Jun-1 0 Jul-1 0 Aug-1 0 Sep-1 0 Oct-10 Nov-10 Dec-10 Jan-1 1 Feb-1 1 Mar-11 Apr-1 1 May-11 Jun-1 1 Jul-1 1 Aug-1 1 Sep-1 1 Oct-11 Nov-11 Dec-11 Jan-1 2 Feb-1 2 Mar-12 Apr-1 2 May-12 Jun-1 2 Jul-1 2

US China IPOs HK IPOs US C hina I P Os C apital R aised HK I P Os C apital R aised

U.S. China IPO Activity Past Week Deal Value (US Price Range IPO Price IPO Price Lead Pricing Date Ticker Issuer Co-Manager(s) $m) (US$) (US$) to Current Manager(s)

No U.S. China IPO activity last week

HK IPO Activity Past Week Deal Value Price Range IPO Price IPO Price to Pricing Date Listing Date Ticker Issuer Lead Manager(s) (US$m) (HK$) (HK$) Current Wanguo International 9-Jul-12 10-Jul-12 3939 Mining Group 38 1.75 - 2.10 1.99 2.5% GJSC; CRSCLD

12-Jul-12 13-Jul-12 1190 Bolina Holding Co Ltd 58 1.80 - 2.40 2.15 7.9% CCBINT; BOCL

Note: IPO activity includes deal values equal to or greater than US$25m, deals managed by Piper Jaffray are excluded from this rule Source: Dealogic, Hong Kong Stock Exchange

4 Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited July 16, 2012

HK and U.S. China Follow-On Activity

HK and U.S. China Follow-on Activity by Month

30 14 , 0 0 0

12,0 0 0 25

10 , 0 0 0

20 CapitalRaised (US$m)

8, 0 0 0

6,000 # of Follow-ons

4,000

5 2, 0 0 0

0 0

Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct- 0 9 No v- 0 9 Dec-0 9 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct- 10 No v- 10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct- 11 No v- 11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12

US Ch in a F Os HK F Os US China FOs Capital Raised HK FOs Capital Raised

U.S. China Follow-on Activity Past Week

Deal Value (US Lead Price From Price to Date Ticker Issuer $m) Deal Type Manager(s) Co-Manager(s) Previous Close Current

No U.S. China FO activity last week

HK Follow-on Activity Past Week

Deal Value Price From Price to Date Ticker Issuer (US$m) Deal Type Lead Manager(s) Previous Current Close No HK FO activity last week

Note: Follow-on activity includes deal values equal to or greater than US$25m Source: Dealogic, Hong Kong Stock Exchange

5 Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited July 16, 2012

IPO Pipeline

U.S. China IPO Pipeline

U.S.US ChinaChina IPOIPO PIPELINEPIPELINE Funds to be Price Target Lead Issuer Co-Manager(s) Raised Range Pricing Business Exchange Underwriter(s) (US$m) (US$) Date

Integrated internet Adchina GS; CS N/A $100.0 TBA TBA Nasdaq advertising platform.

Online community- Cloudary Corp. BOAML CICC; CITICGC $200.0 TBA TBA driven literary New York platform.

New drug Newsummit Biopharma OPCO; COWEN N/A $80.0 TBA TBA development process New York Holdings solutions provider

Note: IPO Pipeline activity includes deal values equal to or greater than US$25m Source: Dealogic, Hong Kong Stock Exchange 6 Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited July 16, 2012

IPO Pipeline

Hong Kong IPO Pipeline

HK IPO PIPELINE Sponsor(s)/ Funds to be Price Target Issuer Lead Raised Range Pricing Business Exchange Underwriter(s) (US$m) (HK$) Date

Dynam Japan Holdings Second largest pachinko hall CITIC; PJ; SNWSCL 217 14.00 - 16.00 July 2012 Main Board Co operator in Japan.

Manufactures and sells heavy BOAML; CITI; CBOC; machinery such as bulldozer Main Board, Sany Heavy Industry Co 2,000 TBA Aug-12 MS and dragging concrete Shanghai transportation pumps.

Note: IPO Pipeline activity includes deal values equal to or greater than US$25m Source: Dealogic, Hong Kong Stock Exchange 7 Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited July 16, 2012

IPO Withdrawn

U.S. China and Hong Kong IPO Withdrawn

U.S. China IPO WITHDRAWN Sponsor(s)/ Funds to be Issuer Lead Co-Manager(s) Raised Business Exchange Underwriter(s) (US$m) No US IPO withdrawn last week

HK IPO WITHDRAWN

Sponsor(s)/ Funds to be Raised Issuer Business Exchange Lead Underwriter(s) (US$m)

Manfucturer of metallic CHEVG; OSKHLD; TNGYNG; components of display Fine Holdings 32 Mainboard DAEW panels for use in consumer electronics products.

Note: IPO Withdrawn activity includes deal values equal to or greater than US$25m Source: Dealogic, Hong Kong Stock Exchange

8 Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited July 16, 2012

Appendix

Piper Jaffray China Index Constituents

Telecom, Media & Technology Health Care ACTS Actions Semiconductor Co., Ltd. CBPO China Biologic Products, Inc. AMAP AutoNavi Holdings Limited CCM Concord Medical Services Holdings Limited AMCN AirMedia Group Inc. CHDX Chindex International Inc. ASIA AsiaInfo-Linkage,Inc. CMED China Medical Technologies Inc. BCDS BCD Semiconductor Manufacturing Limited CO China Cord Blood Corporation BITA Bitauto Holdings Limited KH China Kanghui Holdings BONA Bona Film Group Limited NPD China Nepstar Chain Drugstore Ltd. CCIH ChinaCache International Holdings Ltd. SCR Simcere Pharmaceutical Group. CDCS CDC Software Corporation SHP ShangPharma Corporation CHRM Charm Communications Inc. SSRX 3SBio Inc. CIS Camelot Information Systems Inc. SVA Sinovac Biotech Ltd. CNTF China Techfaith Wireless Communication Technology Limited WX WuXi PharmaTech (Cayman) Inc. CYOU Changyou.com Limited DANG E-Commerce China Dangdang Inc. Financial / Real Estate DATE Jiayuan.com International Ltd. AUTC AutoChina International Ltd. FENG Phoenix New Media Limited CISG Cninsure Inc. GA Giant Interactive Group, Inc. CRIC China Real Estate Information Corporation GAME Shanda Games Limited EJ E-House (China) Holdings Limited HOLI Hollysys Automation Technologies, Ltd NOAH Noah Holdings Limited HSFT hiSoft Technology International Ltd. SYSW Syswin Inc. ISS Isoftstone Holdings Limited XIN Xinyuan Real Estate Co., Ltd. KONG Kongzhong Corp. LONG eLong Inc. Business Services and Industrial Growth MOBI Sky-mobi Limited AMBO Ambow Education Holding Ltd. NCTY The9 Limited ATAI ATA, Inc. NQ NetQin Mobile Inc. CAAS China Automotive Systems Inc. OIIM O2Micro International Ltd. CAST ChinaCast Education Corporation PWRD Perfect World Co., Ltd. CFSG China Fire & Security Group, Inc. QIHU Qihoo 360 Technology Co. Ltd CGA China Green Agriculture, Inc. RDA RDA Microelectronics, Inc. CHNR China Natural Resources Inc. RENN Renren Inc. CHOP China Gerui Advanced Materials Group Ltd. SFUN SouFun Holdings Ltd. CSR China Security & Surveillance Technology, Inc. SPRD Spreadtrum Communications Inc. CXDC China XD Plastics Company Ltd. STV China Digital TV Holding Co., Ltd. CYD China Yuchai International Limited TAOM Taomee Holdings Ltd. FSIN Fushi Copperweld, Inc. TBOW Trunkbow International Holdings, Ltd. GEDU Global Education & Technology Group Limited TUDO Tudou Holdings Limited HRBN Harbin Electric, Inc. UTSI UTStarcom Holdings Corp. JST Jinpan International Ltd. VISN VisionChina Media Inc. LIWA Lihua International, Inc. VIT VanceInfo Technologies Inc. LLEN L & L Energy, Inc. VNET 21Vianet Group, Inc. NTE Nam Tai Electronics, Inc. XING Qiao Xing Universal Resources, Inc. SSW Seaspan Corp. SYUT Synutra International Inc. Consumer XRS TAL Education Group ADY Feihe International, Inc. XUE Xueda Education Group AERL Asia Entertainment & Resources Ltd. YONG Yongye International, Inc. ATV Acorn International, Inc. ZX China Zenix Auto International Ltd. BORN China New Borun Corporation CCSC Country Style Cooking Restaurant Chain Co., Ltd. Clean Tech / Energy DEER Deer Consumer Products, Inc. CHC China Hydroelectric Corporation EDS Exceed Company Ltd. CSIQ Canadian Solar Inc. GAGA Le Gaga Holdings Ltd CTE SinoTech Energy Limited HMIN Home Inns & Hotels Management Inc. DQ Daqo New Energy Corp. HOGS Zhongpin, Inc. HSOL Hanwha SolarOne Co., Ltd HTHT China Lodging Group, Limited JASO JA Solar Holdings Co., Ltd. JOBS 51job Inc. JKS JinkoSolar Holding Co., Ltd. LAS Lentuo International Inc. LDK LDK Solar Co., Ltd. MCOX Mecox Lane Limited LPH Longwei Petroleum Investment Holding Limited SVN 7 Days Group Holdings Limited MY China Ming Yang Wind Power Group Limited XNY China Xiniya Fashion Limited SOL ReneSola Ltd. STP Suntech Power Holdings Co. Ltd. TSL Trina Solar Limited YGE Yingli Green Energy Holding Co. Ltd.

Important Notice: This newsletter has been prepared and is distributed in Hong Kong by Piper Jaffray Asia Securities Limited, a licensed corporation regulated by the Hong Kong Securities and Futures Commission and an exchange participant of The Stock Exchange of Hong Kong Limited, with its registered office located at Suite 1308, Tower 2 Pacific Place, 88 Queensway, Hong Kong. This newsletter is intended only for distribution to professional investors as defined in the Hong Kong Securities and Futures Ordinance and is for the use of intended recipients only. This report is not directed to, or intended for distribution to or use by, any person or entity if Piper Jaffray Asia Securities Limited is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to such person or entity. This newsletter may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the prior consent of Piper Jaffray Asia Securities Limited. The material regarding the subject company(ies) is based on data obtained from sources we deem to be reliable; it is not guaranteed as to accuracy and does not purport to be complete. This newsletter has been produced independently of the company(ies) identified in the report. This newsletter is solely for informational purposes and is not intended to be used as the primary basis of investment decisions. Piper Jaffray Asia Securities Limited has not assessed the suitability of the subject company securities for any person. Because of individual client requirements, this newsletter is not, and it should not be construed as, advice designed to meet the particular investment needs of any investor. This newsletter is not an offer or the solicitation of an offer to sell or buy any security. The price and value of the investments referred to in this newsletter may fluctuate. Past performance is not a guide to future performance. Copyright 2011 Piper Jaffray Asia Securities. All rights reserved

Note: Piper Jaffray China Index is a modified market capitalization weighted index comprised of U.S. exchange listed securities of companies with significant exposure to the Chinese economy and market capitalization over US$100m to US$2b. The index was developed with a base level of 1,000 as of January 1, 09