Investment Highlights

One-quarter majority of a city residential volume in 2008 to a new high, sustained growth over the same period last year, Central, kicked off the spring sales, the property market pick up by the end of 2008 in line with our judgments. Pearl River, Fuzhou, Xiamen, warmer without suspense, Beijing, Tianjin is expected to take the lead in the recovery of the first half of 2009, Suzhou, Nanjing, Wuhan, Chongqing, Chengdu and other cities have been showing recovery.

4-5 month year-on-year volume growth will continue to ring more than 6-July trading volume than the same period last year by Central Seasonal factors may be repeated, 8,9 is the month the low turnover in 2008 is expected to turnover ratio from the same period last year, Central, 8 10,11 month until the month of re-growth. National turnover in 2009 is expected to increase 17.6 percent, the overall trend of the data was robust and growing industry.

Industry first source of funds target rate has been at in October 2008 has bottomed out (in October 2008 -25% 1-Feb 7%), super-expected. Real estate investment growth rate will increase with the source of funds and the bottom the bottom, one quarter of investment growth is expected to bottom, the industry bottomed out. 2009 growth rate of 20% real estate investment, mainly in construction investment, investment started declining 23%.

The next few months will not be any sale of the national situation in general price increases, sales in 2008 than 3.88,09 residential construction was the key to the inventory of one year. After one and a half years the property market adjustment, corporate capital, forcing the developers to seize the inventory stress rare opportunity to pick up low-priced sales, turnover will continue to enlarge the construction by the end of 2009 sales to fall back to a more reasonable level of 3.2. Otherwise, the extension of trade adjustment cycle, the cost increase, profitability will be substantially compressed space.

Real estate investment growth rate in 2008 was nearly 10 years of a relatively low level, directly reduce the growth rate slowed down in 2010 of new supply in 2009 if the inventory go of the ideal, the supply in 2010 will slow down industry growth more uncertain. The second half of 2009 or the developer to purchase land during the good.

Since October 2008 the consumption of housing in major cities to demand rigid main sets of all the recent transactions there is a small area of the momentum picked up, just to be in sustained-release, lower prices, as well as the stock market continued warming, demand is expected to continue to improve support industry recovery.

Maintain" plate in 2009 there will be over-income, good rating "opinion, there are still 2 over-quarter revenue plate. Optimistic about the three types of low valuation of the company: the development of strength, thickening of the proceeds to rely on the development of flow-based companies; at three important economic circle or have abundant supply of cheap city land resource-based companies; the existence of groups or injection of state-owned assets, market value will be small and large companies. Strongly recommend: RNAV discount trading companies:泛海, Shimao, Financial Street (000,402 market, shares love), to recruit; sales quickly low PE Company: Shahe shares (000,014 market, shares love), the Chinese enterprises (600,675 Quotes Love shares), Vanke A (000002 market, shares love), First City, Universal, HUAFA; development cost advantages of the layout of the company: Paul Lee, Vanke A, Zhao and泛海, HUAFA, Financial Street. Group capital injection, state-owned assets to support: Chinese enterprises, Shahe shares, Pan International Development (000,537 market, shares love); bank credit support: Vanke A, Poly.

Institutions Source: China Securitie