INVESTMENT DAILY NOTE 11 Sept 2015

11 Sept 2015

Content

Trends of HSI, HSCEI 2 Stock in Focus 3 Today’s Top Picks 5 Overview of Sector Performance 6 Forward P/E and Valuations of Major Indices 7 Market Data 8-9 Previous day’s best and worst INVESTMENT performers; HSCI volume filter; Most short sold stocks; Interest rates, exchange rates, precious metals and commodities A-share premium to H-share 10 DAILY NOTE Top 20 most traded ETFs 11 Economic data and event calendar 12

Market Highlights

. Chinese Premier Li Keqiang said, during a session at Summer Davos in Dalian, that China would allow foreign central banks to participate directly in the Chinese inter-bank forex market, maintain a stable renminbi exchange rate. Offshore renminbi surged 789 basis points against the U.S. dollar yesterday, a record single-day increase, which substantially narrowed the spread with the onshore rate. Market participants believe the renminbi surge was related to intervention by the Chinese central bank. . Fosun Intl (656.HK, HK$13.42) proposed a rights issue to raise not more than HK$11.7bn for general corporate purpose, including acquisitions of banks or insurers and loan repayment. The rights issue price is HK$13.42, same as yesterday closing price (with no discount). Also, the rights issue ratio is 56 rights shares for 500 existing shares, small investors may end up with odd lots.

Equity Indices External Market Conditions Close d-d (%) YTD (%) . U.S. equities rose as weekly jobless claims continue to drop. Hang Seng 21,563 (2.6) (8.7) Dow closed at 16,330, up 76 points. S&P500 closed at 1,952, Index up 10 points. NASDAQ closed at 4,796, up 39 points. HSCEI 9,780 (2.0) (18.4) . ADRs dropped in the U.S. market, with their closing prices Shanghai Comp 3,198 (1.4) (1.1) effectively putting HSI down 3 points, closing at 21,559. Shenzhen 1,770 (1.6) 25.1 . U.S. oil production in August fell close to a one-year low, Comp sending oil prices up. New York crude oil futures closed at DJIA 16,330 0.5 (8.4) US$45.92/bbl, up US$1.77. Capital flows toward the gold S&P 500 1,952 0.5 (5.2) market as the market take a wait-and-see approach on the Nasdaq Comp 4,796 0.8 1.3 result of next week’s rate discussion. New York gold futures FTSE 100 6,156 (1.2) (6.2) settled at US$1,109.3/oz, up US$7.3. DAX 10,210 (0.9) 4.1 CAC 40 4,597 (1.5) 7.6 Nikkei 225 18,276 (0.1) 4.7 Taiwan 8,269 (0.2) (11.2) Yesterday’s Hong Kong Equities Weighted . China’s producer price index posted an extended decline. The Shanghai Composite fell 45 points to close at 3,197. The HSI closed at 21,562, losing 568 points. The HSCEI closed at 9,780, down 195 points. Total turnover retreated to HK$79.4bn. Hong Kong Market Turnover . Infrastructure stocks bucked the downward trend. CRCC (1186.HK, HK$11.08) and China Railway (390.HK, HK$7.34) HK$bn d-d (%) rose 1.5% and 1.7% respectively. Li Lu, once regarded as HSI 26.7 -8.09% Warren Buffett's successor, raised holding of CRRC HSCCI 6.6 9.96% (1766.HK, HK$9.67) by purchasing 23.236m shares for an HSCEI 16.6 5.68% average price per share of HK$8.519 on 24 August. CRRC’s Main Board 79.5 -1.89% share price moved against the general trend to go up by 5.1%. . As for individual stocks, Beijing Enterprises Holdings (392.HK, HK$48.15), recommended in SHKF’s Investment

Daily Note on 27 August, surged 5.4% against the southbound market yesterday, with turnover increasing sharply to HK$427m, a tremendous 3.5x expansion over its latest three-month average.

Sun Hung Kai Financial Group For Analysts and the Company’s Disclosure of Interests and Disclaimer, please read the last page of this report.

INVESTMENT DAILY NOTE 11 Sept 2015

Trends of HSI and HSCEI

HSI: Close above the top of recent gap, which has rendered some support

Source: Bloomberg and SHKF

HSCEI: Close above the top of recent gap, which has rendered some support

Source: Bloomberg and SHKF

Sun Hung Kai Financial Group For Analysts and the Company’s Disclosure of Interests and Disclaimer, please read the last page of this report. 2

INVESTMENT DAILY NOTE 11 Sept 2015

Stock in Focus

FOSUN PHARMA-H Last Close 23.75 (2196.HK) Entry 23.75 Target 26.70 Stop-loss 22.00 YTD／1M／3M／12M % Change -14.9%／-3.1%／-20.1%／ -11.9% Market Cap HK$64.49bn 3M Average Daily Volume 2.70mn shares FY1 Forward P/E 21.6x

Fosun Pharmaceutical to In the first seven months of this year, the retail sales of Chinese and Western drugs in benefit from strong China increased 14.6% YoY, higher than the country’s 10.4% retail sales growth in the same period by 4.2 percentage points. This highlights a robust demand for potential of medical medical and health products in China. In the healthcare sector, pharmaceutical stocks have been able to generate stable income amid the slowing economy and services and own sound therefore are fit as defensive stocks. Fosun Pharmaceutical (2196.HK, HK$23.75) R&D capability is the largest integrated pharmaceutical and healthcare company in China. Its businesses comprehensively cover the six disease areas with the highest potential and growth momentum in the Chinese pharmaceutical market ie cardiovascular, metabolic and digestive system, central nervous system, blood system, anti-infective and anti-tumour. Expansion of medical services and new drug launches are expected to be catalysts of its share price.

China’s medical service sector presents lucrative opportunities. In H1 2015, Fosun Pharmaceutical’s medical service business accounted for 11.5% of its total revenue, up from 10%; while operating profit margin rose 1.9 percentage points to 17.3% from 15.2% (higher than the company’s overall level of 15.7%), indicating that the segmental growth aided corporate profitability. Looking ahead, Fosun Pharmaceutical has plans to add 2,300 hospital beds to its existing 2,770, which can boost profit growth.

Moreover, the company possesses stronger research and development (R&D) capability than its peers. Bloomberg data shows that its R&D costs to net sales ratio is 4.3%, higher than the 2.6% industry median. This can safeguard future growth momentum. As at end of June 2015, it had 130 R&D projects of new drugs, generic drugs, biosimilar drugs and vaccines etc, and it submitted 32 pharmaceutical patent applications in the same period. Recently, it has two monoclonal antibody drugs (cancer treatment medication) that have received clinical approval documents. The drugs are forecast to be sales boosters once launched to the market. Buy at below HK$23.75; target HK$26.70; and set a stop loss at HK$22.00.

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INVESTMENT DAILY NOTE 11 Sept 2015

FOSUN PHARMA-H: Have support at 20-Day MA

Source: Bloomberg and SHKF

Sun Hung Kai Financial Group For Analysts and the Company’s Disclosure of Interests and Disclaimer, please read the last page of this report. 4

INVESTMENT DAILY NOTE 11 Sept 2015

Today’s Top Picks “Today’s Top Picks” selects a list of stocks whose prices are expected to increase. The selection is made through the analysis of the daily most updated market information, including price movement and technical analysis, as well as corporate news, such as change of ownership, results announcement, merger or acquisition.

The above column is also published in the “Broker Challenge” of Hong Kong Economic Times Investment and Finance Section every Tuesday to Saturday.

PW Medtech （1358）

Last Trading Day Closing Price：HK$1.70 Purchase Price：Current Target Price：HK$1.88 Stop-loss Price：HK$1.34 Reason: Attractive valuations, share price expected to further

challenge 20-day MA. Source: Bloomberg, SHKF (as of 10 Sept 2015)

Beijing Ent （392）

Last Trading Day Closing Price：HK$48.15 Purchase Price：current Target Price：HK$51.70 Stop-loss Price：HK$45.00 Reason: Share price traded above 20-day MA,

increasing turnover Source: Bloomberg, SHKF (as of 10 Sept 2015) expected to create further rebound.

Sun Hung Kai Financial Group For Analysts and the Company’s Disclosure of Interests and Disclaimer, please read the last page of this report. 5

INVESTMENT DAILY NOTE 11 Sept 2015

Overview of Sector Performance

Last day’s best performing sectors

d-d (%) 5D (%) 1M (%) Infrastructure 1.7% 10.8% -6.2% Logistics 1.1% 2.7% -8.6% Airline 0.8% 7.3% -24.4% IPP 0.3% 6.8% -7.7% Telecoms Equipment 0.2% 7.5% -11.5% Aluminum 0.2% 8.9% -15.9% Building Materials 0.1% 8.8% -12.7% HK Consumer Group -0.2% 1.2% -11.4% Department Store -0.5% 2.9% -11.9% Consumer Staples -0.6% 3.1% -9.4% Handset and related -0.6% 4.5% -8.7% accessories Other Metals -0.7% 7.4% -8.4% Gas -0.8% 6.4% -14.4% Chinese Insurers -0.9% 7.6% -9.2% Sports accessories -1.0% 5.8% -2.1%

Major stocks of best performing sectors

Infrastructure China Railway ( 390 ) , China Railway Cons. ( 1186 ) , CSR Corp. ( 1766 ) , China Comm. Cons. ( 1800 ) , China Machinery Eng. ( 1829 ) Logistics Kerry Log Net ( 636 ) , SITC ( 1308 ) Airline Cathay Pacific ( 293 ) , China East Air ( 670 ) , Air China ( 753 ) , China South Air ( 1055 ) IPP China Res Power ( 836 ) , Huaneng Power Int'l ( 902 ) , Datang Int'l Power ( 991 ) , Huadian Power Int'l ( 1071 ) , China Power Int'l ( 2380 ) Telecoms China Com Service ( 552 ) , ZTE ( 763 ) , Trigiant ( 1300 ) , Comba ( 2342 ) Equipment Aluminum Chalco ( 2600 ) , China Hongqiao ( 1378 ) , China Zhongwang ( 1333 ) , RUSAL ( 486 ) Building Shanshui Cement ( 691 ) , Anhui Conch ( 914 ) , China Res Cement ( 1313 ) , BBMG ( 2009 ) , CNBM ( 3323 ) Materials HK Consumer Sa Sa Int'l ( 178 ) , Cafe De Coral ( 341 ) , Luk Fook ( 590 ) , Bonjour ( 653 ) , I.T ( 999 ) Group Department NWDS China ( 825 ) , Springland ( 1700 ) , Intime ( 1833 ) , Golden Eagle ( 3308 ) , Parkson Group ( 3368 ) Store Consumer Want Want ( 151 ) , Uni-President ( 220 ) , Tingyi ( 322 ) , Hengan Int'l ( 1044 ) , Sun Art Retail ( 6808 ) Staples Handset and Tongda Group ( 698 ) , AAC Tech ( 2018 ) , Sunny Optical ( 2382 ) , Coolpad Group ( 2369 ) , TCL Comm ( 2618 ) related accessories Other Metals Jiangxi Copper ( 358 ) , CMOC ( 3993 ) , Zhaojin Mining ( 1818 ) , Zijin Mining ( 2899 ) Gas China Gas ( 384 ) , Beijing Enterprises ( 392 ) , ENN Energy ( 2688 ) , CIMC Enric ( 3899 ) , China Res Gas ( 1193 ) Chinese China Taiping Ins. ( 966 ) , NCI ( 1336 ) , CPIC ( 2601 ) , Ping An ( 2318 ) , China Life ( 2628 ) Insurers Sports 361 Degrees ( 1361 ) , Xtep Int'l ( 1368 ) , Peak Sport ( 1968 ) , Anta Sports ( 2020 ) , Li Ning ( 2331 ) accessories

Sun Hung Kai Financial Group For Analysts and the Company’s Disclosure of Interests and Disclaimer, please read the last page of this report. 6

INVESTMENT DAILY NOTE 11 Sept 2015

Forward P/E and Valuations of Major Indices

HSI HSCEI

16 16

14 14

10 8

8 6 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Prospective P/E (X) Average +/- 1 s.d. Prospective P/E (X) Average +/- 1 s.d.

Shanghai Composite S&P 500

20 20

18 18 16

16 14

12 14

10 12

8 10 6 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Prospective P/E (X) Average +/- 1 s.d. Prospective P/E (X) Average +/- 1 s.d.

Source: Bloomberg, SHKF

Valuations and estimated earnings growth of major indices

FY15E P/E (X) Long-term avg. fwd. Deviation from avg. FY1 EPS growth FY2 EPS growth P/E (X) (%) (%) (%) Hang Seng Index 10.7 11.3 (4.6) (13.1) 7.9

HSCEI 7.3 8.5 (14.5) (4.1) 7.6

Shanghai Comp 13.5 11.0 21.9 18.2 13.0

S&P 500 16.5 14.7 11.9 4.6 10.5

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INVESTMENT DAILY NOTE 11 Sept 2015

Market Data

Previous day’s best and worst performers

Stock Price 1D 5D 1M YTD Turnover FY1 P/E (X) FY2 P/E (X) code (HK$) chg chg chg chg (HK$m) (%) (%) (%) (%) Best AJISEN CHINA HOL 538 .HK 3.170 6.4 6.7 -13.2 -46.4 35.8 13.2 11.7 COOLPAD 2369 .HK 1.240 6.0 -9.5 -29.1 -19.0 69.2 11.6 9.8 C P NEW ENERGY 735 .HK 0.455 5.8 13.8 -12.5 -8.1 17.0 9.1 6.0 BEIJING ENT 392 .HK 48.150 5.5 9.9 -12.3 -20.8 427.4 10.9 9.6 CRRC CORP LTD -H 1766 .HK 9.670 5.1 12.2 -6.3 -7.4 1,081.5 17.2 14.8 Worst CHINA PRECIOUS M 1194 .HK 0.310 -10.1 8.8 -21.5 -50.8 7.7 N/A N/A LANDING INTERNAT 582 .HK 0.213 -7.8 2.4 -23.9 -82.6 24.2 N/A N/A XINCHEN CHINA PO 1148 .HK 1.730 -7.5 10.2 -27.9 -29.1 2.2 5.9 5.1 CNOOC 883 .HK 8.800 -6.6 -0.5 -11.4 -15.7 806.6 13.8 10.4 BLOOMAGE BIOTE 963 .HK 11.660 -6.1 -3.3 -22.8 -8.9 4.3 15.3 11.7 Note: Best and worst performers from HSI, HSCEI, HSCI

HSCI volume filter

Company Stock Price 1D chg Avg. vol. Prev. vol. % increase FY1 P/E FY2 P/E code (HK$) (%) (m shares) (m shares) (X) (X) MAN WAH HOLDINGS 1999 .HK 7.850 -0.1 3.2 31.9 890.0 12.9 11.6 AJISEN CHINA HOL 538 .HK 3.170 6.4 1.2 11.5 827.9 13.2 11.7 BEIJING ENT 392 .HK 48.150 5.5 2.3 9.2 304.0 10.9 9.6 YUEXIU TRANSPORT 1052 .HK 4.860 -1.8 2.2 7.3 224.2 9.5 9.3 CRRC CORP LTD -H 1766 .HK 9.670 5.1 37.7 113.2 200.6 17.2 14.8 TIANNENG POWER 819 .HK 3.860 -3.3 4.3 11.6 170.0 6.6 4.8 COOLPAD 2369 .HK 1.240 6.0 23.2 58.0 150.0 11.6 9.8 TSUI WAH HOLDING 1314 .HK 1.890 -1.0 1.1 2.5 138.7 14.1 12.0 SHENGUAN HOLDING 829 .HK 1.040 -3.7 5.3 12.2 129.7 6.2 5.9 BAOXIN AUTO GROU 1293 .HK 2.430 0.0 6.1 13.2 116.1 5.5 4.5 Note: Based on volume change from last 30 trading days’ average of HSCI constituents

Most short sold stocks

Company Stock Price 1D chg Shortsell % of total % of own FY1 P/E FY2 P/E code (HK$) (%) turnover shortsell turnover (X) (X) (HK$m) turnover DAPHNE INTERNATI 210 .HK 1.620 -3.0 0.9 0.0 66.9 30.0 16.0 CHINA ZHONGWANG 1333 .HK 2.740 -2.1 8.9 0.1 61.1 5.4 4.5 SHANGRI-LA ASIA 69 .HK 7.260 -3.8 5.7 0.1 60.7 30.2 20.4 CHINA VANKE-H 2202 .HK 17.320 -2.9 92.0 1.1 59.2 8.8 7.6 MINTH GROUP LTD 425 .HK 14.820 0.1 3.3 0.0 57.0 10.8 9.5 BRILLIANCE CHINA 1114 .HK 9.340 -1.1 51.3 0.6 50.9 9.5 7.7 WANT WANT CHINA 151 .HK 6.780 -0.7 63.3 0.8 46.0 18.6 16.2 POLY PROPERTY 119 .HK 2.150 -1.8 17.7 0.2 43.3 16.9 14.1 KUNLUN ENERGY 135 .HK 5.600 -3.8 36.1 0.4 42.8 10.9 8.9 LENOVO GROUP 992 .HK 6.520 -4.8 122.4 1.5 41.5 33.7 8.2 Note: Based on short-selling turnover of constituents of HSI, HSCEI, HSCI

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INVESTMENT DAILY NOTE 11 Sept 2015

Interest rates

Latest (%) 5D chg (bps) 1M chg (bps) YTD chg (bps) y-y % chg U.S. 2-year Treasury yield 0.7330 2.63 6.00 6.85 17.30 U.S. 10-year Treasury yield 2.2185 9.41 7.76 4.73 -33.11 U.S. 30-year Treasury yield 2.9804 9.68 17.12 22.86 -29.68 HK 1-month HIBOR 0.2429 -0.99 0.39 0.76 3.14 HK 3-month HIBOR 0.3996 -0.77 0.97 1.82 3.82 SH 1-month HIBOR 3.0080 -4.40 29.70 -258.00 -88.40 SH 3-month HIBOR 3.0930 -0.96 -2.93 -204.21 -155.65

Exchange rates

Latest 5D % chg 1M % chg YTD % chg y-y % chg USD Dollar Index 95.5640 -0.7 -1.8 5.9 13.4 USD/HKD 7.7501 0.0 0.2 0.1 0.0 EUR/USD 1.1283 1.3 2.2 -6.7 -12.7 USD/JPY 120.81 -1.5 3.6 -0.9 -11.3 GBP/USD 1.5446 1.8 -0.8 -0.8 -5.0 USD/CHF 0.9731 -0.2 1.5 2.2 -3.8 AUD/USD 0.7069 2.3 -3.2 -13.5 -22.3 NZD/USD 0.6310 0.4 -3.5 -19.1 -22.9 USD/CAD 1.3235 0.3 -0.9 -12.2 -16.6 USD/CNY 6.3775 -0.1 -0.8 -2.7 -3.9 USD/CNH 6.3866 1.3 0.0 -2.6 -3.9

Precious metals and commodities

Latest 5D % chg 1M % chg YTD % chg y-y % chg CRB Index 198.0 0.6 -0.7 -13.9 -30.0 Comex Gold 1,110.3 -1.2 0.3 -6.2 -10.3 Comex Silver 14.680 -0.2 -4.0 -5.7 -21.1 Nymex WTI Crude 45.67 -2.3 6.0 -14.3 -50.8 ICE Brent Crude 48.67 -1.9 -1.0 -15.1 -50.4 LME Copper 5,398 2.9 1.7 -14.3 -21.4 LME Aluminum 1,637.5 0.5 1.2 -11.6 -20.5 CBT Wheat 477.00 2.5 -6.0 -19.1 -6.4 CBT Corn 374.25 3.5 -0.6 -5.7 9.8 CBT Soybean 875.25 0.7 -10.8 -14.1 -10.8

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INVESTMENT DAILY NOTE 11 Sept 2015

Companies listed on both the A-share and H-share markets A-share premium to H-share

Company H Price A share Price A-share Company H Price A share Price A-share share (HK$) code (RMB) premium share (HK$) code (RMB) premium to code to H-share code H-share (%) (%) LUOYANG GLASS-H 1108 4.81 600876 25.18 536.1 BBMG CORP-H 2009 5.43 601992 8.29 85.5

ZHEJIANG SHIBA-H 1057 6.00 002703 28.90 485.3 GUANGSHEN RAIL-H 525 3.20 601333 4.80 82.3

GUANGZHOU AUTO-H 2238 5.23 601238 18.09 320.3 PETROCHINA-H 857 5.98 601857 8.84 79.6

CHONGQING IRON-H 1053 1.34 601005 3.98 260.9 AIR CHINA LTD-H 753 5.59 601111 8.21 78.5

SINOPEC OILFIE-H 1033 2.32 600871 6.88 260.4 DONGJIANG ENV-H 895 11.76 002672 16.74 73.0

CMOC-H 3993 4.24 603993 12.38 254.8 CIMC-H 2039 13.92 000039 19.52 70.4

NORTHEAST ELEC-H 42 1.97 000585 5.63 247.3 BAIYUNSHAN PH-H 874 19.38 600332 27.03 69.5

CHINA SHIPPING-H 2866 3.11 601866 8.73 241.1 JIANGXI COPPER-H 358 10.46 600362 14.40 67.3

SHANGHAI ELECT-H 2727 4.35 601727 12.18 240.3 CRRC CORP LTD -H 1766 9.67 601766 13.11 64.7

SHANDONG MOLON-H 568 2.85 002490 7.80 232.6 CITIC BANK-H 998 4.72 601998 6.24 60.7

METALLURGICAL-H 1618 2.86 601618 7.79 231.0 CHINA COM CONS-H 1800 9.73 601800 12.60 57.4

YANZHOU COAL-H 1171 3.69 600188 9.69 219.1 CEB BANK-H 6818 3.43 601818 4.19 48.4

SHENJI GROUP-H 300 3.52 600806 8.84 205.2 CHINA RAIL CN-H 1186 11.08 601186 13.53 48.4

JINGCHENG MAC-H 187 5.40 600860 13.29 199.1 GREAT WALL MOT-H 2333 23.50 601633 28.49 47.3

NANJING PANDA-H 553 5.53 600775 13.44 195.3 SHENZHEN EXPRE-H 548 5.29 600548 6.33 45.4

SHANDONG XINHU-H 719 5.00 000756 12.15 195.3 SHANGHAI PHARM-H 2607 15.98 601607 18.84 43.3

CHINA COSCO HO-H 1919 4.94 601919 11.63 186.1 MINSHENG BANK-H 1988 7.34 600016 8.62 42.7

DALIAN PORT PD-H 2880 2.52 601880 5.86 182.6 CHINA SHENHUA-H 1088 13.36 601088 15.63 42.2

FIRST TRACTOR-H 38 4.45 601038 9.90 170.3 NEW CHINA LIFE-H 1336 31.50 601336 36.84 42.1

SINOPEC SHANG-H 338 3.01 600688 6.67 169.3 XINJIANG GOLD-H 2208 13.40 002202 15.38 39.5

SHANDONG CHEN-H 1812 3.14 000488 6.95 169.0 BANK OF CHINA-H 3988 3.49 601988 4.00 39.3

BEIJING NORTH-H 588 2.17 601588 4.69 162.6 BANKCOMM-H 3328 5.56 601328 6.36 39.0

TIANJIN CAP-H 1065 4.16 600874 8.86 158.8 HUADIAN POWER-H 1071 6.58 600027 7.41 36.8

HISENSE KELON -H 921 4.12 000921 8.58 153.1 HANG SENG CHINA AH N/A 135.25 N/A N/A 35.3 PREMI CHINA COAL ENE-H 1898 3.35 601898 6.91 150.7 WEICHAI POWER-H 2338 8.69 000338 9.63 34.7

CHINA SHIPPING D 1138 5.49 600026 11.08 145.3 HAITONG SECURI-H 6837 11.84 600837 12.93 32.7

CHINA OILFIELD-H 2883 8.51 601808 16.97 142.3 HUANENG POWER-H 902 8.65 600011 9.38 31.8

MAANSHAN IRON-H 323 1.79 600808 3.56 141.7 CCB-H 939 5.36 601939 5.54 25.6

CSSC OFFSHORE -H 317 18.70 600685 37.13 141.3 ABC-H 1288 3.07 601288 3.17 25.5

ALUMINUM CORP-H 2600 2.66 601600 5.24 139.4 FOSUN PHARMA-H 2196 23.75 600196 23.68 21.2

ZHENGZHOU COAL-H 564 3.51 601717 6.84 136.8 ICBC-H 1398 4.60 601398 4.47 18.1

CHINA EAST AIR-H 670 4.19 600115 8.16 136.7 ZTE-H 763 17.32 000063 16.79 17.8

ZOOMLION HEAVY-H 1157 2.95 000157 5.51 127.0 CITIC SEC-H 6030 15.70 600030 15.15 17.3

SICHUAN EXP-H 107 2.55 601107 4.76 126.8 SINOPEC CORP-H 386 5.24 600028 5.05 17.1

DATANG INTL PO-H 991 3.20 601991 5.97 126.7 CHINA LIFE-H 2628 27.00 601628 25.40 14.3

ZIJIN MINING-H 2899 2.06 601899 3.64 114.7 CM BANK-H 3968 19.00 600036 17.29 10.6

LIVZON PHARM-H 1513 40.00 000513 69.45 111.0 GF SECURITIES-H 1776 15.56 000776 14.00 9.3

ANGANG STEEL-H 347 3.24 000898 5.36 101.0 TSINGTAO BREW-H 168 36.55 600600 32.71 8.8

CHINA SOUTHERN-H 1055 4.98 600029 8.18 99.6 JIANGSU EXPRES-H 177 9.55 600377 7.94 1.0

JINGWEI TEXTIL-H 350 11.30 000666 18.24 96.2 FUYAO GLASS IN-H 3606 14.98 600660 12.32 -0.1

DONGFANG ELECT-H 1072 8.64 600875 13.62 91.6 CHINA PACIFIC-H 2601 29.15 601601 23.00 -4.1

ANHUI EXPRESS-H 995 6.55 600012 10.20 89.2 PING AN-H 2318 38.40 601318 30.27 -4.2

BYD CO LTD-H 1211 34.30 002594 52.70 86.7 CHINA VANKE-H 2202 17.32 000002 13.54 -5.0

CHINA RAIL GR-H 390 7.34 601390 11.27 86.6 ANHUI CONCH-H 914 24.80 600585 18.88 -7.5

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INVESTMENT DAILY NOTE 11 Sept 2015

Top 20 most traded ETFs

Price (HK$) 1D chg (%) 5D chg (%) 2828 HS H-SHARE ETF-H 100.20 -1.76 5.53 2800 TRACKER FUND HK 22.30 -2.41 3.24 2823 ISHARES FTSE A50 10.26 -0.77 4.80 2822 CSOP FTSE CH-HKD 12.00 -0.66 3.45 3188 CHINAAMC 300-HKD 40.75 -2.04 6.12 82822 CSOP FTSE CH-RMB 9.95 -1.49 3.00 83188 CHINAAMC 300-CNY 33.50 -3.32 4.52 2827 CSI 300 CHINA 30.30 -2.26 -0.16 2833 HSI ETF-HKD 221.20 -2.47 3.36 3147 CSOP SZSE ETF-HK 8.95 -1.65 14.74 3118 HARVEST CH A-HKD 14.68 0.27 3.38 2840 SPDR GOLD SHARES 822.00 -1.14 -2.89 3020 DBX MSCI USA 388.00 -1.77 1.04 2801 ISHARES MSCI CHI 19.24 -2.14 4.23 3048 DBX BRAZIL 19.54 -2.01 -2.79 3101 VG FTSE DE EU EF 17.14 -1.49 1.18 3105 DBX BANGL ETF 2C 8.09 0.00 0.00 3199 CSOP 5Y ETF HKD 129.60 0.70 0.12 3126 VG FTSE JAP I EF 20.45 -1.45 0.25 2836 ISHARES S&P BSE 17.30 -1.70 -0.57

Sun Hung Kai Financial Group For Analysts and the Company’s Disclosure of Interests and Disclaimer, please read the last page of this report. 11

INVESTMENT DAILY NOTE 11 Sept 2015

Economic data and event calendar

Country/ Date Event Period Survey Prior Fri 11 Sept NEW ZEALAND Business NZ Manufacturing PMI Aug -- 53.5 NEW ZEALAND Food Prices MoM Aug -- 0.60% US PPI Final Demand MoM Aug -0.10% 0.20% US U. of Mich. Sentiment Sep P 91.5 91.9 CHINA* Money Supply M2 YoY Aug 13.30% 13.30% CHINA* New Yuan Loans CNY Aug 850.0B 1,480.0B

Source：Bloomberg, SHKF Note：HK Time P=Preliminary；F=Final *Will be announced on 11-15 Sept

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INVESTMENT DAILY NOTE 11 Sept 2015

Analyst：Kenny Wen

Disclosure of Interests Research Analyst Certification The views about any and all of the subject securities and issuers expressed in this report accurately reflect the personal views of the research analyst(s) primarily responsible for this report; and the analysts are paid in part based on the profitability of Sun Hung Kai Investment Services Limited ("SHKIS") and its affiliates (collectively called "SHKF") which includes revenue from investment banking activities.

Research Analyst Conflicts Financial Interests: The research analyst(s) who prepared this report and/or his/her/their associates has/have no financial interests in relation to listed corporation(s) covered in this report.

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