Research Department 17 August, 2016

Shirley Gu 古乔艺 Gary Ching 程嘉伟 Grace Liu 刘谷

(86755) 2397 6718 (852) 2509 2665 (852) 2509 7516 [email protected] [email protected] [email protected]

Comments on SZ-HK Connect: Another Milestone for MMA 深港通评论：互联互通的又一里程碑事件

 Regulators announced Shenzhen-Hong Kong Stock Connect (SZ-HK Connect) Scheme. Chinese Premier Li Keqiang announced that the Shenzhen-Hong Kong Stock Connect plan had been approved by the Chinese government on 16 August 2016. On the same day, China Securities Regulatory Commission (CSRC) and Hong Kong’s Securities and Futures Commission (SFC) made a joint statement regarding the establishment of mutual market access (MMA) between Shenzhen and Hong Kong. The existing aggregate quota under the SH-HK Connect has been removed with immediate effect. According to the joint statement, the official launch of SZ-HK Connect is expected to be in 4 months time. Further details are as follows:

 监管部门宣布深港通。中国国务院总理李克强在 8 月 16 日宣布，《深港通实施方案》已或得国务院批准。同日，中国 证监会及香港证监会联合发表关于建立深圳和香港互联互通的公告。即日起沪港通总额度取消，根据联合公告，深港 通正式推出时间预期由即日起计约 4 个月。其他细节如下：

Details

Shenzhen Southbound - All Hang Seng Composite LargeCap Index and Hang Seng Composite MidCap Index constituents. Connect - Any Hang Seng Composite SmallCap Index constituents with a market capitalisation of HK$5 billion or above - All SEHK-listed A+H shares - Daily Northbound quota: RMB10.5 billion - The investment quota may be adjusted by the parties in light of actual operational performance Shenzhen Northbound - All SZSE Component Index and SZSE Small/MidCap Innovation Index constituents, which have a Connect market capitalization of RMB6 billion or above - All SZSE-listed A+H shares - Trading on the ChiNext Board of SZSE on Northbound link is limited to eligible institutional professional investors in the initial stages - Daily Southbound quota: RMB13 billion - The investment quota may be adjusted by the parties in light of actual operational performance Shanghai & Shenzhen - Aggregate quota abolished Connect - ETFs to be included but roll-out planned in 2017 - Shanghai-Hong Kong remains unchanged Shenzhen-Hong Kong - 4 months from 16 August 2016 Connect Launch Date Source: HKEx, SZSE.

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内容

深圳港股通 - 所有恒生综合大型股指数的成份股、恒生综合中型股指数的成份股 - 市值 50 亿元港币及以上的恒生综合小型股指数的成份股 - 香港联合交易所上市的 A+H 股公司股票。 - 深圳港股通每日使用额度:105 亿人民币 - 双方可根据运营情况对投资额度进行调整 深股通 - 市值 60 亿元人民币及以上的深证成份指数和深证中小创新指数的成份股 - 深圳证券交易所上市的 A+H 股公司股票 - 深股通开通初期，通过深股通买卖深圳证券交易所创业板股票的投资者仅限于香港相关规则所界定 的机构专业投资者 - 深股通每日使用额度:130 亿人民币 - 双方可根据运营情况对投资额度进行调整 沪港通和深港通 - 总额度取消 - 加入交易所买卖基金并计划于 2017 年推出 - 沪港通维持不变 深港通启动日期 - 由 8 月 16 日起计约 4 个月 数据源； 港交所、深交所

 Bigger impacts probable over trading activity in the HK market. Statistics for SH-HK Connect show that as at 16 August 2016, the average daily turnover (ADT) through southbound trading link accounted for 3.9% of the HK market ADT since launch, which is higher than the 0.6% through northbound trading link. In addition, southbound activity witnessed net fund inflows for a consecutive 71 and 58 trading days, starting in the middle of November 2015 and late April 2016, respectively. H-shares continue to enjoy cheaper valuations compared with A-shares, despite the recent decline of the AH Premium Index to a 1-year low of 124.8 on 16 August. Therefore, we expect the HK market to benefit more from the launch of SZ-HK Connect, mainly in terms of boosting trading activities.

 对香港市场交易活动或有较大影响。根据沪港通统计数据，由沪港通开通至 8 月 16 日，港股通日均成交额在全市场 的占比为 3.9%，高于沪股通所占的 0.6%。此外，港股通从 2015 年 11 月中旬起以及自 2016 年 4 月起分别录得连续 71 个和 58 个交易日的净流入。最近 AH 溢价指数持续下跌至 8 月 16 日的 1 年来低位 124.8，但 H 股估值仍然相比 A 股便宜。因此，我们预期香港市场将更为受惠于深港通带来的交易量上升。

 Deepening MMA and RMB internationalization continue to be long-term catalysts. The launch of SZ-HK Connect could be viewed as another milestone for further extending MMA between the Mainland and HK, and an important step to push forward RMB internationalization as well. It is also expected that additional products (such as ETF) will be included into the MMA scheme and further diversify investable asset pools in the future. Therefore, the HK market could remain as the direct beneficiary and continuously attract a flow of funds.

 互通互联深化以及人民币国际化继续是长期催化剂。深港通的推出可被视作进一步扩展中国内地和香港两地联通的又 一里程碑事件，也是推进人民币国际化的一项重要举措。预期更多产品（如 ETF）将纳入互联互通范畴，未来可投资 标的还将进一步多元化。因此，香港市场也继续作为直接受益者，持续吸引资金流入。

 Limited influence to further drive up the HK market in the short term. The details and the time of announcement are both basically in line with expectations. The abolishment of the total investment quota is a response mainly to the recent accelerating use of quotas in southbound trading (with the remaining quota below 20%). The HK market has witnessed a consecutive rise starting in 2H16, which has partly reflected the escalating speculation of launching SZ-HK Connect. The HSI reached 23,084 on 16 August, the highest since the beginning of November 2015. Therefore, with the timeline set, investors are likely to take profit in the short term.

 短期推动香港市场內进一步上升的动力有限。深港通主要内容和公布时间均基本符合市场预期。沪港通总额度取消主 要回应近期港股通额度使用加快（余额不足 20%）。香港市场自下半年以来持续上升，部分已反映出对公布深港通的

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预期升温。其中，8 月 16 日恒指曾上升至 2015 年 11 月以来的新高 23,084 点。因此，随着时间表确定，短期内投资 者可能先行获利。

 The HK market is expected to fluctuate in the short term. The announcement of launching SZ-HK Connect removes one of major uncertainty. The latest data pointed to a basic steady growth for the Chinese economy even with some weak indicators. The domestic property market will continue to see policy differentiation. China’s monetary policy stance remains prudent but will also remain flexible. An orderly two-way fluctuation of the RMB currency is expected to uphold on a stabilizing expectation. Global liquidity remains abundant as more countries have recently joined in with rate cut activity. The HSI recorded a decent rally of 17.4% from the lowest point post-UK Brexit vote and hit a 10-month high of 23,084, which has already largely priced in the excitement about SZ-HK Connect in the short term. Overall, we expect a range bound trading on HK market in the near future.

 预期港股市场短期波动。深港通的宣布消除了一个主要不确定性。最新数据显示中国经济增长虽有反覆但总体基本平 稳。内地房地产市场将继续因城施策。中国货币政策基调维持稳健但将保持灵活。由于市场预期稳定，人民币继续有 序双向波动。近期更多国家降息，环球流动性保持宽裕。恒指自英国公投后的低位上升 17.4%，并创下 10 个月高位 23,084，已大幅反应了市场对深港通的憧憬。总体来说，我们预计香港市场近期区间震荡。

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Appendix

Table-1: Hang Seng LargeCap Index Constituents

Code Name Code Name Code Name Code Name

00001 HK Ckh Holdings 00270 HK Guangdong Invest 00880 HK Sjm Holdings Ltd 01880 HK Belle Intl 00002 HK Clp Holdings 00288 HK Wh Group Ltd 00883 HK Cnooc 01928 HK Sands China Ltd

00003 HK Hong Kg China Gs 00291 HK China Resources 00939 HK Ccb-H 01929 HK Chow Tai Fook Je

00004 HK Wharf Hldg 00293 HK Cathay Pac Air 00941 HK China Mobile 01972 HK Swireproperties

00005 HK Hsbc Holdings Pl 00322 HK Tingyi 00960 HK Longfor Ppt 01988 HK Minsheng Bank-H

00006 HK Power Assets 00371 HK Bj Ent Water 00966 HK China Taiping In 02007 HK Country Garden

00010 HK Hang Lung Group 00384 HK China Gas Holdin 00992 HK Lenovo Group 02018 HK Aac Technologies

00011 HK Hang Seng Bank 00386 HK Sinopec Corp-H 00998 HK Citic Bank-H 02020 HK Anta Sports Prod

00012 HK Henderson Land D 00388 HK Hkex 01038 HK Cki Holdings 02282 HK Mgm China

00016 HK Shk Ppt 00392 HK Beijing Ent 01044 HK Hengan Intl 02313 HK Shenzhou Intl Gp

00017 HK New World Dev 00494 HK Li & Fung Ltd 01060 HK Ali Pictures 02318 HK Ping An-H

00019 HK Swire Pacific-A 00530 HK Goldin Financial 01088 HK China Shenhua-H 02319 HK Mengniu Dairy

00020 HK Wheelock & Co 00551 HK Yue Yuen Ind 01109 HK China Res Land 02328 HK Picc P&C-H

00023 HK Bank East Asia 00656 HK Fosun Intl 01113 HK Cheung Kong Prop 02388 HK Boc Hong Kong Ho

00027 HK Galaxy Entertain 00659 HK Nws Holdings 01114 HK Brilliance China 02601 HK China Pacific-H

00066 HK Mtr Corp 00669 HK Techtronic Ind 01128 HK Wynn Macau Ltd 02628 HK China Life-H

00069 HK Shangri-La Asia 00683 HK Kerry Ppt 01169 HK Haier Electronic 02688 HK Enn Energy

00083 HK Sino Land 00688 HK China Overseas 01177 HK Sino Biopharm 03311 HK China State Cons

00101 HK Hang Lung Ppt 00700 HK Tencent 01193 HK China Res Gas 03328 HK Bankcomm-H

00135 HK Kunlun Energy 00728 HK China Telecom-H 01288 HK Abc-H 03333 HK China Evergrand

00144 HK China Mer Hold 00762 HK China Unicom 01299 HK Aia 03799 HK Dali Foods Group

00151 HK Want Want China 00813 HK Shimao Property 01359 HK China Cinda-H 03968 HK Cm Bank-H

00241 HK Alibaba Health 00823 HK Link Reit 01398 HK Icbc-H 03988 HK Bank Of China-H

00257 HK China Everbr Int 00836 HK China Res Power 01800 HK China Com Cons-H 06808 HK Sun Art Retail

00267 HK Citic 00857 HK Petrochina-H Source: Hang Seng Indexes Company Limited.

Table-2: Hang Seng MidCap Index Constituents

Code Name Code Name Code Name Code Name

00008 HK Pccw Ltd 00570 HK Trad Chi Med 01165 HK Sfce 02186 HK Luye Pharma Grou 00014 HK Hysan Dev 00576 HK Zhejiangexpre-H 01171 HK Yanzhou Coal-H 02202 HK China Vanke-H

00041 HK Great Eagle 00586 HK Conch Venture 01186 HK China Rail Cn-H 02238 HK Guangzhou Auto-H

00081 HK China Overseas G 00590 HK Luk Fook Hldgs I 01199 HK Cosco Pac Ltd 02298 HK Cosmo Lady China

00086 HK Sun Hung Kai Co 00604 HK Shenzhen Invest 01205 HK Citic Resources 02314 HK Lee & Man Paper

00109 HK Good Resources H 00606 HK China Agri-Indus 01208 HK Mmg 02329 HK Guorui Ppt

00119 HK Poly Property 00607 HK Fullshare 01211 HK Byd Co Ltd-H 02333 HK Great Wall Mot-H

00123 HK Yuexiu Property 00636 HK Kerry Logistics 01212 HK Lifestyle Intl 02338 HK Weichai Power-H

00136 HK Hengten Networks 00639 HK Shougang Fushan 01230 HK Yashili Int'L 02356 HK Dahsing Banking

00142 HK First Pacific 00665 HK Haitong Int'L 01282 HK China Goldjoy Gr 02357 HK Avichina Indus-H

00148 HK Kingboard Chem 00670 HK China East Air-H 01293 HK Baoxin Auto Grou 02380 HK China Power Inte

00152 HK Shenz Intl Hldg 00694 HK Beijing Cap Ai-H 01308 HK Sitc 02382 HK Sunny Optical

00165 HK China Ever Ltd 00699 HK Car Inc 01313 HK China Res Cement 02386 HK Sinopec Engine-H

00168 HK Tsingtao Brew-H 00715 HK China Oceanwide 01316 HK Nexteer 02600 HK Aluminum Corp-H

00173 HK K Wah Intl Hldgs 00732 HK Truly Intl Hldgs 01333 HK China Zhongwang 02607 HK Shanghai Pharm-H

00175 HK Geely Automobile 00737 HK Hopewell Infr 01336 HK New China Life-H 02689 HK Nine Dragons Pap

00177 HK Jiangsu Expres-H 00751 HK Skyworth Digital 01339 HK Picc Group-H 02727 HK Shanghai Elect-H

00178 HK Sa Sa Intl Hldgs 00753 HK Air China Ltd-H 01347 HK Hua Hong Semi 02777 HK Guangzhou R&F -H

00179 HK Johnson Elec H 00754 HK Hopson Dev 01363 HK Ct Environmental 02778 HK Champion Reit

00200 HK Melco Intl Dev 00763 HK Zte-H 01378 HK China Hongqiao 02877 HK China Shineway

00207 HK Joy City Ppt 00778 HK Fortune Reit 01382 HK Pacific Textile 02883 HK China Oilfield-H

00215 HK Hutchtel Hk 00787 HK Global Brands Gr 01387 HK Renhe Commercial 02899 HK Zijin Mining-H

00220 HK Uni-President Ch 00806 HK Value Partners 01432 HK China Shengmu Or 03308 HK Golden Eagle Ret

00242 HK Shun Tak Holding 00817 HK China Jinmao Hol 01508 HK China Reinsura-H 03323 HK China Natl Bdg-H

00272 HK Shui On Land 00861 HK Digital China 01530 HK 3Sbio Inc 03331 HK Vinda Intl Hldgs

00283 HK Goldin Propertie 00867 HK China Medical Sy 01578 HK Bank Of Tianji-H 03360 HK Far East Horizon

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00285 HK Byd Electronic 00868 HK Xinyi Glass 01668 HK China South 03377 HK Sino-Ocean Group

00297 HK Sinofert Holding 00881 HK Zhongsheng Group 01680 HK Macau Legend 03380 HK Logan Ppt

00303 HK Vtech Hldgs Ltd 00902 HK Huaneng Power-H 01728 HK China Zhengtong 03383 HK Agile Group Hold

00308 HK China Travel Hk 00911 HK Hang Fat Ginseng 01766 HK Crrc Corp Ltd -H 03396 HK Legend Holding-H

00315 HK Smartone Telecom 00914 HK Anhui Conch-H 01776 HK Gf Securities-H 03618 HK Cqrc Bank-H

00316 HK Orient Overseas 00916 HK China Longyuan-H 01788 HK Guotai Junan 03698 HK Huishang Bank-H

00317 HK Cssc Offshore -H 00931 HK China Lng Group 01813 HK Kwg Property 03699 HK Wanda Comm-H

00330 HK Esprit Hldgs 00933 HK Brightoil Petro 01816 HK Cgn Power-H 03800 HK Gcl-Poly Energy

00336 HK Huabao Intl 00934 HK Sinopec Kantons 01828 HK Dah Chong Hong 03808 HK Sinotruk Hk Ltd

00341 HK Cafe De Coral 00958 HK Huaneng Renewa-H 01833 HK Intime Retail Gr 03823 HK Tech Pro

00358 HK Jiangxi Copper-H 00968 HK Xinyi Solar Hlds 01882 HK Haitian Intl 03886 HK Town Health

00363 HK Shang Indus Hldg 00981 HK Smic 01888 HK Kb Laminates 03888 HK Kingsoft Corp

00390 HK China Rail Gr-H 00991 HK Datang Intl Po-H 01898 HK China Coal Ene-H 03898 HK Zhuzhou Crrc Tim

00400 HK Cogobuy Group 00996 HK Carnival Group 01918 HK Sunac 03899 HK Cimc Enric Hldg

00405 HK Yuexiu Reit 01055 HK China Southern-H 01919 HK China Cosco Ho-H 03900 HK Greentown China

00410 HK Soho China 01066 HK Shandong Weig-H 01970 HK Imax China Holdi 03908 HK China Internat-H

00425 HK Minth Group Ltd 01071 HK Huadian Power-H 01999 HK Man Wah Holdings 03969 HK China Railway -H

00439 HK Kuangchi Science 01076 HK Imperial Pac 02008 HK Phoenix Satellit 03996 HK China Energy Eng

00440 HK Dah Sing 01083 HK Towngas China 02016 HK China Zheshang-H 03998 HK Bosideng Intl

00489 HK Dongfeng Motor-H 01093 HK Cspc Pharmaceuti 02038 HK Fih Mobile Ltd 06030 HK Citic Sec-H

00493 HK Gome Electrical 01099 HK Sinopharm-H 02039 HK Cimc-H 06818 HK Ceb Bank-H

00506 HK China Foods Ltd 01111 HK Chong Hing Bank 02066 HK Shengjingbank-H 06837 HK Haitong Securi-H

00511 HK Tvb 01112 HK Biostime Interna 02098 HK Zall Group Ltd 06863 HK Huishan Dairy

00522 HK Asm Pacific 01117 HK China Modern Dai 02128 HK China Lesso 06881 HK Cgs-H

00552 HK China Comm Ser-H 01136 HK Tcc Intl Hldgs 02168 HK Yingde Gases Grp 06886 HK Huatai Securit-H Source: Hang Seng Indexes Company Limited.

Table-3: Hang Seng SmallCap Index Constituents with market cap of more than HK$5 billion

Code Name Code Name Code Name Code Name

00035 HK Fe Consort Intl 00698 HK Tongda Group Hld 01234 HK China Lilang Ltd 02005 HK Ssy Group Ltd 00163 HK Emperor Intl 00708 HK Evergrande Healt 01238 HK Powerlong Real 02009 HK Bbmg Corp-H

00198 HK Smi Holdings 00709 HK Giordano Intl 01302 HK Lifetech Sci 02196 HK Fosun Pharma-H

00245 HK China Minsheng F 00721 HK China Financial 01310 HK Hkbn Ltd 02199 HK Regina Miracle I

00256 HK Citychamp 00729 HK Fdg Evehicles 01361 HK 361 Degrees 02208 HK Xinjiang Gold-H

00268 HK Kingdee Intl Sft 00735 HK C P New Energy 01366 HK Jiangnan Group 02255 HK Haichang Ocean P

00321 HK Texwinca Hldg 00775 HK Ck Life Sciences 01368 HK Xtep Intl 02280 HK Hc International

00323 HK Maanshan Iron-H 00777 HK Netdragon Websof 01375 HK Cc Securities-H 02331 HK Li Ning Co Ltd

00327 HK Pax Global Techn 00816 HK Huadian Fuxin -H 01381 HK Canvest Env 02369 HK Coolpad

00337 HK Greenland Hong K 00819 HK Tianneng Power 01448 HK Fu Shou Yuan Int 02393 HK Yestar Internati

00338 HK Sinopec Shang-H 00845 HK Glorious Propert 01513 HK Livzon Pharm-H 02618 HK Tcl Comm Tech Hl

00347 HK Angang Steel-H 00853 HK Microport Scient 01515 HK Phoenixhealth 02666 HK Universal Medica

00354 HK Chinasoft Intl 00855 HK China Water Affa 01618 HK Metallurgical-H 02669 HK China Overseas P

00378 HK Fdg Kinetic Ltd 00874 HK Baiyunshan Ph-H 01622 HK Redco Properties 02678 HK Texhong Textile

00416 HK Bank Of Jinzho-H 00884 HK Cifi Holdings Gr 01628 HK Yuzhou Propertie 02866 HK China Shipping-H

00419 HK Huayi Tencent En 00951 HK Chaowei Power 01636 HK Cmru 02868 HK Bj Capital Lan-H

00451 HK Gcl Newenergy 00976 HK Chiho-Tiande 01666 HK Tong Ren Tang-H 03339 HK Lonking

00468 HK Greatview Asepti 00978 HK China Merchants 01777 HK Fantasia Holding 03382 HK Tianjin Port Dev

00517 HK Cosco Internatio 00993 HK Huarong Internat 01778 HK Colour Life Serv 03393 HK Wasion Group

00525 HK Guangshen Rail-H 01030 HK Future Land Deve 01811 HK Cgn New Energy H 03606 HK Fuyao Glass In-H

00535 HK Gemdale Properti 01033 HK Sinopec Oilfie-H 01818 HK Zhaojin Mining-H 03709 HK Koradior Holding

00546 HK Fufeng Group Ltd 01045 HK Apt Satellite Hl 01819 HK Fuguiniao-H 03813 HK Pou Sheng Intl

00547 HK Digital Domain 01052 HK Yuexiu Transport 01829 HK China Machiner-H 03818 HK China Dongxiang

00548 HK Shenzhen Expre-H 01070 HK Tcl Multimedia T 01848 HK Calc 03836 HK China Harmony Au

00563 HK Sh Ind Urban 01072 HK Dongfang Elect-H 01883 HK Citic Telecom 03866 HK Bank Of Qingdao

00579 HK Jncec-H 01138 HK China Shipping D 01886 HK China Huiyuan 03983 HK China Bluechem-H

00598 HK Sinotrans Ltd-H 01157 HK Zoomlion Heavy-H 01963 HK Bank Of Chongq-H 03993 HK Cmoc-H

00658 HK China High-Speed 01188 HK Hybrid Kinetic G 01966 HK China Sce Proper 06166 HK China Vast Indus

00680 HK Nan Hai Corp Ltd 01224 HK C C Land Holding 01968 HK Peak Sport 06196 HK Bank Of Zhengzho

00696 HK Travelsky Tech-H 01233 HK Times Property H 01980 HK Tiange Source: Hang Seng Indexes Company Limited, Guotai Junan International. Closing prices as at 16 August 2016.

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Table-4: A+H Companies Dual Listed in HKEx and SZSE

A Share Code H Share Code Name H Share price (HKD) A Share Price (RMB) A/H Premium/Discount*

02202 HK 000002 CH China Vanke 20.95 27.57 -34.88%

02039 HK 000039 CH Cimc 9.42 14.80 -45.46%

00763 HK 000063 CH Zte 12.08 15.16 -31.72%

01157 HK 000157 CH Zoomlion Heavy 2.71 4.36 -46.74%

02338 HK 000338 CH Weichai Power 10.1 9.17 -5.62%

01812 HK 000488 CH Shandong Chen 7.04 9.31 -35.20%

01513 HK 000513 CH Livzon Pharm 41.1 49.59 -28.98%

00042 HK 000585 CH Northeast Elec 2.95 7.17 -64.74%

00350 HK 000666 CH Jwtm 11.98 19.68 -47.84%

00719 HK 000756 CH Shandong Xinhu 6.22 14.73 -63.81%

01776 HK 000776 CH Gf Securities 18.38 18.14 -13.17%

00347 HK 000898 CH Angang Steel 3.93 4.60 -26.79%

00921 HK 000921 CH Hisense Kelon 5.79 12.85 -61.39%

02208 HK 002202 CH Xinjiang Gold 12.46 17.18 -37.85%

00568 HK 002490 CH Shandong Molon 3.77 11.21 -71.18%

001211 HK 002594 CH Byd Co Ltd 51.6 59.92 -26.21%

00895 HK 002672 CH Dongjiang Env 13.48 20.85 -44.60%

01057 HK 002703 CH Zhejiang Shiba 11.62 47.89 -79.21%

Simple average: -42.52% Source: HKEx, SZSE. Data as at 16 August 2016. *Note: HKD/RMB exchange rate as 0.85693.

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Research Department 研究部

Grace Liu 刘 谷 Head of Research, Market 主管，市场策略、 [email protected] (86755) 23976698 / Strategy, Petrochemicals 石化 (852) 2509 7516

Noah Hudson Noah Hudson Consumer (Hotels), Gaming 消费（酒店）、博彩 [email protected] (86755) 23976684

Gary Wong 黄家玮 Environmental Protection, 环保、基建 [email protected] (852) 2509 2616 Infrastructure

Leo Wu 吴逸超 Coal, Electricity 煤炭、电力 [email protected] (86755) 23976871

Ray Zhao 赵 睿 Conglomerate, E-commerce 综合、电子商务 [email protected] (86755) 23976755

Shirley Gu 古乔艺 Market Strategy 市场策略 [email protected] (86755) 23976718

Square Chui 徐惠芳 Futures 期货 [email protected] (852) 2509 2629

Kevin Guo 郭 勇 Raw Materials, Gas 原材料、燃气 [email protected] (86755) 23976671

Ricky Lai 黎柏坚 Telecommunications, Internet 电信、互联网 [email protected] (852) 2509 2603

Dayton Wang 王庆鲁 Insurance, Fixed-income 保险、债券 [email protected] (852) 2509 5347

Richard Cao 曹 柱 Banking 银行 [email protected] (86755) 23976870

Jun Zhu 朱俊杰 Clean Energy, Electric Equipment 清洁能源、电力设备 [email protected] (852) 2509 7592

Andrew Song 宋 涛 Consumer (Retailing), 消费（零售）、 [email protected] (852) 2509 5313 Home Appliances 家电

Van Liu 刘斐凡 Property 房地产 [email protected] (86755) 23976672

Sean Xiang 向宇豪 Machinery, Construction Materials 机械、建材 [email protected] (86755) 23976725

Terry Hong 洪学宇 Consumer (Apparel) 消费（服装） [email protected] (86755) 23976722

Toliver Ma 马守彰 Aviation, 航空、汽车 [email protected] (852) 2509 5317 Automobiles & Components

Spencer Fan 范明 Shipping & Logistics, Ports, 航运物流、港口、公路 [email protected] (86755) 23976686 Toll Roads

Johnny Wong 王俊浩 Research Assistant 研究助理 [email protected] (852) 2509 5348

Barney Wu 吴宇扬 Research Assistant 研究助理 [email protected] (86755) 23976680

Gary Ching 程嘉伟 Research Assistant 研究助理 [email protected] (852) 2509 2665

Jake Wang 汪昌江 Research Assistant 研究助理 [email protected] (86755) 23976675

Wiley Huang 黄重钧 Research Assistant 研究助理 [email protected] (852) 2509 5409

Danny Law 罗沛达 Research Assistant 研究助理 [email protected] (852) 2509 7768

Kay Mai 麦梓琪 Research Assistant 研究助理 [email protected] (86755) 23976685

Esabella Zhao 赵舒蔓 Research Assistant, Translator 研究助理、翻译员 [email protected] (86755) 23976681

Penny Pan 潘凌蕾 Secretary, Translator 秘书、翻译员 [email protected] (852) 2509 2632

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Company Rating Definition The Benchmark: Hong Kong Hang Seng Index Time Horizon: 6 to 18 months Rating Definition Buy Relative Performance >15%; or the fundamental outlook of the company or sector is favorable. Accumulate Relative Performance is 5% to 15%; or the fundamental outlook of the company or sector is favorable. Neutral Relative Performance is -5% to 5%; or the fundamental outlook of the company or sector is neutral. Reduce Relative Performance is -5% to -15%; or the fundamental outlook of the company or sector is unfavorable. Sell Relative Performance <-15%; or the fundamental outlook of the company or sector is unfavorable.

Sector Rating Definition The Benchmark: Hong Kong Hang Seng Index Time Horizon: 6 to 18 months Rating Definition Outperform Relative Performance >5%; or the fundamental outlook of the sector is favorable. Neutral Relative Performance is -5% to 5%; or the fundamental outlook of the sector is neutral. Underperform Relative Performance <-5%; or the fundamental outlook of the sector is unfavorable.

DISCLOSURE OF INTERESTS

(1) Except for Shenzhen International Holdings Limited (00152 HK), the Analysts and their associates do not serve as an officer of the issuer mentioned in this Research Report. (2) The Analysts and their associates do not have any financial interests in relation to the issuer mentioned in this Research Report. (3) Except for SMI Holdings Group Limited (00198 HK), China All Access (Holdings) Limited (00633 HK), Guotai Junan International Holdings Limited (01788 HK), Binhai Investment Company Limited (02886 HK) and Link Holdings Limited (08237 HK), Guotai Junan and its group companies do not hold equal to or more than 1% of the market capitalization of the issuer mentioned in this Research Report. (4) Guotai Junan and its group companies have had investment banking relationships with China All Access (00633 HK), Huaneng Renewables- H shares (00958 HK), Hengdeli (03389 HK), China Dredging Environment Protection (00871 HK), AviChina Industry & Technology- H shares (02357 HK), China Power (02380 HK), Sinotruk (03808 HK), Xiao Nan Guo Restaurants (03666 HK), China Aoyuan Property (03883 HK), SMI Holdings Group (00198 HK), Anhui Conch Cement- H shares (00914 HK), Chanjet Information Technology- H shares (01588 HK), Tianyun International (06836 HK), China U-Ton (06168 HK), Huaneng Power- H shares (00902 HK), Shanghai Electric- H shares (02727 HK), China Wood Optimization (08099 HK), 361 Degrees (01361 HK), CECEP COSTIN New Materials (02228 HK), Powerlong Real Estate (01238 HK), Huishang Bank- H shares (03698 HK), Bosideng (03998 HK) and WH Group (00288 HK) mentioned in this Research Report within the preceding 12 months.

DISCLAIMER

This Research Report does not constitute an invitation or offer to acquire, purchase or subscribe for securities by Guotai Junan Securities (Hong Kong) Limited ("Guotai Junan"). Guotai Junan and its group companies may do business that relates to companies covered in research reports, including investment banking, investment services and etc. (for example, the placing agent, lead manager, sponsor, underwriter or invest proprietarily).

Any opinions expressed in this report may differ or be contrary to opinions or investment strategies expressed orally or in written form by sales persons, dealers and other professional executives of Guotai Junan group of companies. Any opinions expressed in this report may differ or be contrary to opinions or investment decisions made by the asset management and investment banking groups of Guotai Junan.

Though best effort has been made to ensure the accuracy of the information and data contained in this Research Report, Guotai Junan does not guarantee the accuracy and completeness of the information and data herein. This Research Report may contain some forward-looking estimates and forecasts derived from the assumptions of the future political and economic conditions with inherently unpredictable and mutable situation, so uncertainty may contain. Investors should understand and comprehend the investment objectives and its related risks, and where necessary consult their own financial advisers prior to any investment decision.

This Research Report is not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation or which would subject Guotai Junan and its group companies to any registration or licensing requirement within such jurisdiction.

© 2016 Guotai Junan Securities (Hong Kong) Limited. All Rights Reserved. 27/F., Low Block, Grand Millennium Plaza, 181 Queen’s Road Central, Hong Kong. Tel.: (852) 2509-9118 Fax: (852) 2509-7793 Website: www.gtja.com.hk

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