Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited October 10, 2011

Glo ba l Equit y Mark et Per formance

Global Equity Market Update Piper Jaffray Asia Capital Markets Group

U.S. stocks rose last week amid optimism that European leaders J. West Riggs (Head of Asia ECM), [email protected], Tel: 852 3755 - 2333 will tame the region’s debt crisis and after American economic data improved. The European Central president announced a bond- Michael Cheung (Principal), [email protected], Tel: 852 3755 - 2323 purchase program to tackle the debt crisis. Stocks rose as a report Amanda Lui (Associate), [email protected], Tel: 852 3755 - 2318 showed that claims for U.S. unemployment benefits rose less than ftforecast lltast week. USU.S. LLbabor DDttepartment dtdata shhdowed payrolls Michlhael Bassett (Associate), michlhael.w. [email protected], Tel: 852 3755 -2322 climbed by 103,000 workers in September after a revised 57,000 increase in August. Raw-material producers in the S&P 500 surged Gaby Zhang (Analyst), [email protected], Tel: 852 3755 - 2321 6.2 percent last week, the most among ten groups. Last week, the Cyclical Index advanced 4.4 percent, the Dow rose 1.7 percent to close at 11,103.1, the NASDAQ gained 2.6 percent to close at 2,479.4 and the S&P500 was up 2.1 percent— Global Market Performance breaking a two-week losing streak—to close at 1,155.5. Performance (%) European stocks advanced for a second week as the European Central Bank announced the reintroduction of year-long loans— Last price 1 day 1 week 1 month 2011YTD giving access to unlimited cash through January 2013—and Global Indices U.S. jobs data spurred optimism the world’ s largest economy will avoid a recession. The Bank of England said last week that it will Dow Jones 11,103.1 (0.2%) 1.7% (2.7%) (4.9%) boost bond purchases as government budget cuts and Europe’s debt S&P500 1,155.5 (0.8%) 2.1% (3.6%) (9.2%) crisis jeopardize Britain’s economic recovery. The Monetary Policy Committee raised the ceiling for quantitative easing to 275 billion NASDAQ 2,479.4 (1.1%) 2.6% (2.7%) (7.9%) pounds ($423 billion) from 200 billion pounds. National benchmark indexes gained in 14 of Europe’s 18 western markets. France’s CAC FTSE 5,303.4 0.2% 3.4% (0.3%) (10.1%) 40 rallied 3.8 percent and Germany’s DAX increased 3.2 percent. Last Asian Indices week, the benchmark Stoxx Europe 600 Index advanced 2.6 percent to reach 231.9, while the FTSE rose 3.4 percent to close at 5,303.4. Hang Seng 17,707.0 3.1% 0.7% (11.7%) (24.4%) Asian stocks pared weekly losses amid optimism Europe will act to HSCEI 8,887.5 3.7% (0.3%) (15.7%) (31.0%) contain its debt crisis. Markets in mainland China were closed for a Shanghai A 2,471.1 0.0% 0.0% (6.2%) (16.0%) weeklong holiday. The MSCI Asia Pacific Index slid 0.2 percent to 112.95 last week as the European Commission pushed for a Nikkei 225 8,605.6 1.0% (1.1%) (1.8%) (15.9%) coordinated capital injection for banks. Last week, the Nikkei was down 1.1 percent to close at 8,605.6. HK Weekly Market Update Global Indices Performance (Rebased to 100) Hong Kong stocks rose, posting their first weekly gain in five weeks 200 as Europe-related shares advanced amid optimism officials will protect banks from the region’s debt crisis. Stocks also rose after 180 the Hong Kong Securities and Futures Commission said it would monitor short-selling in the local stock market after seven 160 brokerages called for a ban on the practice. Last week, the Hang Seng Index gained 0.7 percent to close at 17,707.0, while the HSCEI 140 slid 0.3 percent to close at 8,887.5. 120 Among Index constituents, 41 gained and five declined. Among gainers, China Overseas Land & Investment increased 26.0 percent, 100 China Resources Land was up 18.6 percent and Ping An Insurance (Grp) Co of China gained 18.5 percent. Among losers, China Mobile 80 slid 2.0 percent, China Petroleum & Chemical Corporation (Sinopec) fell by 2.1 percent and The Hong Kong and China Gas 60 Company declined 3.5 percent. 1-Jan-09 21-Jul-09 8-Feb-10 29-Aug-10 19-Mar-11 7-Oct-11 AdAAdiccorddiingng ttoo SfSou fun H Hooldldi ings,ngs, ththe countrycoun try ’s bibiggestggest rea l estateest at e S&P 500 NASDAQ FTSE Hang Seng Shang ha i A Webwebsite site owner, owner, China’s China’s home home prices prices drop drop for for the the first first time time in in a a year. year.Prices Prices fell 0.03 fell percent0.03 percent from froma month a month earlier earlier in September. in September. Residential prices rose in 54 of 100100 cities tracked by Soufun and fell in 44 cities, with average home vavalueslues nationwide at 8,877 yuan HSI Sectoral Weekly Performance ($1,396) a square meter. 5.0% 3.9% HSI Weekly Performance 4.0% 3.0% 17,707.0 15 17,172.3 18,000 16,822.2 2.0% 1.0% 10 16,250.3 17,000 10%1.0% 5 9.8 10.8 10.6 16,000 9.7 0.0% 0 15,000 (1.0%) (0.3%) 3-Oct-11 4-Oct-11 6-Oct-11 7-Oct-11 (0.6%) Property Finance Comm/Indu Utilities Turnover (in US$ billion) Close Source: DataStream, Reuters, Hang Seng Index Website

1 Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited October 10, 2011

Piper Jaffra y China Inde x

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

Current Level: 1,176.60 Financial/Real Estate 6% 3,000 Health Care 10% Telecom , Media &

2,500 Technology 37% Clean Tech/Energy 12% 2,000

1,500 Consum er 14% Business Services and Industrial Growth 1,000 21%

4.0% 2.3% 500 2.0% 1-Jan-09 21-Jul-09 8-Feb-10 29-Aug-10 19-Mar-11 7-Oct-11 0.0% PJ China Index (2.0%) (1.7%) (2.3%) (4.0%)

Week-to-date change (14. 29) -120%1.20% (6.0%) (4.9%) (5.0%)

2011 Year-to-date change (1,473.51) -55.60% (8.0%)

LTM change (1,142.79) -49.27% (10.0%) (12.0%) 6-month change (1,356.15) -53.54% (12.5%) (14.0%) 2011 Year-to-date high (pts) 2,788.24 18-Jan-11 Clean Tech/Energy Telecom, Media & Technolo 2011 Year-to-date low (pts) 1,118.28 3-Oct-11 Business Services and Industrial Growth Health Care Consumer Financial/Real Estate

Top Five Weekly Gainers and Losers

40.0% 29.6% 24.1% 22.8% 30.0% 20.1% 14.8% 20.0% 10.0% 0.0% (10.0%) (20.0%)

(30.0%) (20.8%) (21.6%) (23.3%) (23.8%) (40.0%) (50.0%) (46.4%) (60.0%)

JinkoSolar VanceInfo Fushi AsiaInfo-Linkage Sky Mobi VisionChina Lentuo Le Gaga China Real CDC Software Holding Technologies Copperweld Media International Holdings Estate Information

Note: (1) Sector Breakdown as of Oct 7, 2011; 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 October 10, 2011 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$1,638.6 per ounce Current Level: US$3.301 per pound Current Level: 36.20

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 21-JlJul-09 8F8-Feb -10 29-Aug-10 19-Mar-11 7-Oct-11 1-Jan-09 21-JlJul-09 8F8-Feb -10 29-Aug-10 19-Mar-11 7-Oct-11 1-Jan-09 21-JJlul-09 88F-Fe b-10 29-Aug-10 19-Mar-11 7-Oct-11

Spot WTI Crude Stowe Global Coal Index Baltic Dry Index

US$/barrel Current Level: US$82.98 per barrel Current Level: 4,354.58 Current Level: 2000

120 8,000 5,000

110 70007,000 4,000 100 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 21-Jul-09 8-Feb-10 29-Aug-10 19-Mar-11 7-Oct-11 1-Jan-09 21-Jul-09 8-Feb-10 29-Aug-10 19-Mar-11 7-Oct-11 1-Jan-09 21-Jul-09 8-Feb-10 29-Aug-10 19-Mar-11 7-Oct-11

Euro Sterling Japanese Yen

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

Current Level: 1.3375 Current Level: 1.5558 Current Level: 76.71 1.6 1.8 105

151.5 171.7 100

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 21-JlJul-09 8F8-Feb -10 29-Aug-10 19-Mar-11 7-OtOct-11 1J1-Jan- 09 21-J ul - 09 8F8-Fe b10b-10 29-A ug-10 19-M ar-11 7O7-Oc t11t-11 1J1-Jan- 09 21-J ul - 09 8F8-Fe b10b-10 29-A ug-10 19-M ar-11 7Ot117-Oct-11

Source: DataStream, Reuters

3 Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited October 10, 2011

HK and UUS.S. China IPO Acti vit y

HK and U.S. China IPO Activity by Month

U.S. China IPO Activity Past Week

Deal Value Price Range IPO Price IPO Price Lead Pricing Date Ticker Issuer Co-Manager(s) (US$m) (US$) (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 Managg()er(s) (US$m) (HK$) (HK$) CtCurrent ABCI; BOCI; BOCOM; CCBI; CITIC; ICBC; BofA 09/28/2011 10/06/2011 6030 CITIC Securities $1,698.1 $12.84 -$15.20 $13.30 -6.77% Merill Lynch; CLSA; Morgan Stanley; HSBC

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 October 10, 2011

HK and USU.S. China FllFollow-On AtiitActivity

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

U.S. China Follow-on Activity Past Week Price From Date Ticker Issuer Deal Value Deal Type Lead Co- Previous Price to (US$m) Manager(s) Manager(s) Close Current No U.S. China FO activity last week

HK Follow-on Activity Past Week Price From Date Ticker Issuer Deal Value Deal Type Lead Manager(s) Previous Price to (US$m) Close Current 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 October 10, 2011

IPO Pipeli ne

U.S. China and Hong Kong 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

Grand Farm Newbridge N/A $30.0 TBA TBA Rice producer NASDAQ

Pharmaceutical Sinocom Pharmaceutical Cowen; Macquarie N/A $57.5 TBA TBA wholesaler and NASDAQ distributor

Citigroup; Goldman Operates men's and Vancl.com Sachs; ; N/A $750.0 TBA TBA NYSE women's clothing store Morgan Stanley; CICC

HK IPO PIPELINE Sponsor(s)/ Funds to be Price Target Issuer Lead Raised Range Pricing Business Exchange Underwriter(s) (US$m) (HK$) Date No HK IPO pipeline last week

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 October 10, 2011

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 U.S. China 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

7 Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited October 10, 2011

AdiAppendix

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 Securityygy & 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 77y Days Grou p Holdin gs Limited MY China Minggg Yang Wind Power Grou p 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 personor 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

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