IPO Pipeline

Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited July 09, 2012

Global Equity Market Performance

Global Equity Market Update Piper Jaffray Asia Capital Markets Group

U.S. stocks fell last week, erasing a weekly gain for the S&P 500 J. West Riggs (Head of Asia ECM), [email protected], Tel: 852 3755 - 2333 Index, as jobs data heightened concern about a slowing economy and investors were disappointed by Europe’s efforts to tame its debt Michael Cheung (Principal), [email protected], Tel: 852 3755 - 2323 crisis. Industrial and financial stocks lost the most in the S&P 500 Michael Bassett (Associate), [email protected], Tel: 852 3755 - 2322 in the holiday-shortened week, sinking more than 1.2%, as eight out of 10 industries in the benchmark index retreated. JPMorgan Lynne Wu(Analyst), [email protected], Tel: 852 3755 - 2325 slumped 5.1%, the second largest decline in the Dow, to $33.90. Last week, the Dow declined 0.8% to close at 12,772.5 and the S&P 500 fell 0.5% to close at 1,354.7, while the NASDAQ was up 0.1% to Global Market Performance close at 2,937.3. Performance (%) European stocks rose for a fifth week as investors bet central banks Last price 1 day 1 week 1 month 2012YTD would add measures to stimulate economic growth, with the Stoxx Europe 600 Index paring some gains on concern that risks to a Global Indices 12,772.5 3.0% recovery remain. Stocks also rose, after policymakers eased Dow Jones (1.0%) (0.8%) 2.9% 1,354.7 6.1% repayment rules for Spanish banks and relaxed conditions for S&P 500 (0.9%) (0.5%) 3.0% possible aid to Italy. Last week, the Stoxx Europe 600 Index gained 2,937.3 (1.3%) 0.1% 3.3% 10.9% 1.3%, the longest stretch of gains since January, to 254.04. National NASDAQ 5,662.6 (0.7%) benchmark indexes climbed in 11 of the 18 western European FTSE (0.5%) 1.6% 5.2% markets. The U.K.’s FTSE 100 increased 1.6% to close at 5,662.6; Asian Indices France’s CAC 40 fell 0.9% and Germany’s DAX lost 0.1%, while 19,800.6 (0.0%) 1.8% 6.9% 4.9% Italy’s FTSE MIB dropped 3.8% and Spain’s IBEX 35 retreated 5.1%. Hang Seng 9,679.6 (5.4%) HSCEI (0.2%) 1.1% 2.6% Asian stocks advanced last week, with the regional benchmark index 2,328.6 1.1% capping its fourth advance in five weeks, on anticipation that central Shanghai A 1.0% (0.1%) (3.7%) 9,020.8 6.7% banks would ease monetary policy to spur growth. Last week, the Nikkei 225 (0.7%) 0.2% 5.7% MSCI Asia Pacific Index rose 1.2% to close at 118.59, extending last week’s advance, while the Nikkei gained 0.2% to close at 9,020.8. Global Indices Performance (Rebased to 100)

HK Weekly Market Update 200

Hong Kong stocks witnessed mixed performance last week. Stocks 180 continued to rise in the early part of the week as developers gained on the benchmark interest rates cut announced by China. However, 160 the stocks declined on Friday after the People’s Bank of China cut one-year lending rates for the second time in a month. Last week, 140 the Hang Seng Index gained 1.8% to close at 19,800.6, while the HSCEI rose 1.1% to close at 9,679.6 120

Among index constituents, 35 gained and 13 declined, while one 100 remained unchanged. Among top three gainers, Want Want China increased 9.9% and Sino Land gained 9.8%, while New World Dev 80 rose 9.7%. Among losers, CCB slid 2.6%, Sinopec Corp fell 3.1% and Sands China declined 4.1%. 60 1-Jan-09 14-Sep-09 28-May-10 9-Feb-11 23-Oct-11 6-Jul-12

China's economic growth slowed further in 2Q 2012 to 7.6%, S&P 500 NASDAQ FTSE Hang Seng Shanghai A considered as its worse performance since the 2008–09 financial crisis, primarily due to weakened investment, factory output and retail sales. Recovery in economic growth is expected from 3Q 2012 due to the loosening of monetary policy and improved infrastructure HSI Sectoral Weekly Performance spending. GDP growth rate for 2012 is anticipated to reach 8%.

7.0% 5.9% 6.0% HSI Weekly Performance (1) 5.0% 4.0% 19,735.5 19,709.8 19,809.1 19,800.6 2.9% 2.6% 15 20,000 3.0% 10 19,000 2.0% 5 18,000 1.0% 6.4 5.9 5.2 6.3 0.3% 0 17,000 0.0% 3-Jul-12 4-Jul-12 5-Jul-12 6-Jul-12 Property Utilities Comm/Indu Finance Turnover (in US$ billion) Close Note: (1) Hong Kong stock market was closed on July 2, 2012 Source: DataStream, Reuters, Hang Seng Index Website

1 Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited July 09, 2012

Piper Jaffray China Index

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

Current Level: 1,179.1 Business Services and Industrial Growth 3,000 21%

Telecom, Media &

2,500 Technology 37%

Health 2,000 Care 10%

1,5 0 0 Clean Tech/Energy 12% Financial/Real Estate Consumer 1,0 0 0 14% 6%

500 1- J a n- 0 9 14 - S e p- 0 9 28-May-10 9-Feb-11 23-Oct-11 6-J ul-12 8.0% PJ China Index

4.5%

4.0%

Week-to-date change (4.90) -0.41% 1.1% 0.3% 2012 Year-to-date change 1.65 0.14% 0.0% (0.4%) (0.8%) LTM change (872.03) -42.52% (2.2%) (4.0%) 6-month change 19.91 1.72% Clean Tech/Energy Health Care 2012 Year-to-date high (pts) 1,426.45 27-Mar-12 Consumer Telecom, Media & Technology

2012 Year-to-date low (pts) 1,135.38 4-June-12 Financial/Real Estate Business Services and Industrial Growth

Top Five Weekly Gainers and Losers

40.0% 20.5% 17. 8 % 17. 2 % 16 . 7% 12 . 7% 20.0% 0.0%

(20.0%) (11.1%) (14.0%) (18.5%) (24.9%) (40.0%) (31.4%) (60.0%) (80.0%)

(100.0%)

Long wei V anceInfo iS oftS tone ShangPharma R enesola F eihe Charm Chinacast VisionChina Ambow Petroleum T echnolog ies Holding s Corp International Communications Education M edia Education Investment Holding

Note: (1) Sector Breakdown as of July 06, 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 09, 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$1,580.29 per Current Level: US$3.5358 per Current Level: 17.10 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-J an-09 14-Sep-09 28-May-10 9-Feb-11 23-Oct-11 6-J ul-12 1-Jan-09 14-Sep-09 28-May-10 9-Feb-11 23-O ct -11 6-Jul-12 1-Jan-09 14-Sep-09 28-May-10 9-Feb-11 23-O ct -11 6-Jul-12

Spot WTI Crude Stowe Global Coal Index Baltic Dry Index

US$/barrel Current Level: US$84.45 per Current Level: Current Level: 1157 barrel 3,467.69

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 14-Sep-09 28-May-10 9-Feb-11 23-O ct -11 6-Jul-12 1-Jan-09 14-Sep-09 28-May-10 9-Feb-11 23-O ct -11 6-Jul-12 1-Jan-09 14-Sep-09 28-May-10 9-Feb-11 23-O ct -11 6-Jul-12

Euro Sterling Japanese Yen

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

Current Level: Current Level: Current Level: 79.64 1.2287 1.5488 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 14-Sep-09 28-May-10 9-Feb-11 23-O ct -11 6-Jul-12 1-Jan-09 14-Sep-09 28-May-10 9-Feb-11 23-O ct -11 6-Jul-12 1-Jan-09 14-Sep-09 28-May-10 9-Feb-11 23-O ct -11 6-Jul-12

Source: DataStream, Reuters

3 Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited July 09, 2012

HK and U.S. China IPO Activity

HK and U.S. China IPO Activity by Month

18 25,000

20,000

12 aia ased( S$m) (U d e Rais Capital

15,000

9 # of IPOs of #

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 China IPOs Capital Raised HK IPOs Capital Raised

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 CICC; BOCL; ICBC; Inner Mongolia Yitai 6-Jul-12 12-Jul-12 3948 $902.0 $43.0 - $53.0 $43.0 NA BOAML; CS; UBS; BNP; Coal Co. CMS; MGL

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 09, 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 09, 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 09, 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 Engaged in the design, development, production, Bolina Holding Co Ltd CCBINT; BOCL 57 1.80 - 2.40 7/12/12 marketing and distribution of Main Board sanitary ware branded products. Provision of materials for the China Railway Materials CICC; CITIC; UBS; 1,250 TBA July 2012 construction of railway Main Board Commercial Corp CITI; CS; HSBC systems.

China Yongda Automobile full sales-and- Automobiles Services UBS; HSBC; BOCC 216 6.60 - 6.60 7/11/12 Main Board service company. Holdings Ltd

Dynam Japan Holdings Second largest pachinko hall CITIC; PJ; SNWSCL 300 TBA July 2012 Main Board Co Ltd operator in Japan.

Manfucturer of metallic CHEVG; OSKHLD; components of display Fine Holdings Ltd 32 0.68 - 0.98 7/11/12 Main Board TNGYNG panels for use in consumer electronics products. Engaged in the Silverman Holdings Ltd MIZ; FSC 25 1.10 - 1.32 7/11/12 manufacturing of high-end Main Board fabric products. Engaged in the business of mining, ore processing and Wanguo International sale products in China, with GJSC; CRSCLD 37 1.75 - 2.10 7/9/12 Main Board Mining Group Ltd copper conentrates and iron concentrates as the main commodities.

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 09, 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)

No HK IPO withdrawn last week

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 09, 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