yum cha 飲茶mercial banks. the effective date is april 25. but the banks will be asked to use...

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Yum Cha 飲茶 April 18, 2018

INDICES Closing DoD%

Hang Seng Index 30062.8 (0.8)

HSCEI 11900.5 (0.9)

Shanghai COMP 3066.8 (1.4)

Shenzhen COMP 1784.6 (2.2)

Gold 1345.9 0.1

BDIY 1025.0 1.1

Crude Oil, WTI(US$/BBL) 66.6 0.1

Crude Oil, BRENT(US$/BBL) 71.6 0.2

HIBOR, 3-M 1.3 3.2

SHIBOR, 3-M 4.2 0.0

RMB/USD 6.3 0.1

TALKING POINT - RRR CUT EXPECTED TO STABILIZE MARKET SENTIMENT

DATA RELEASES DUE THIS WEEK

Source: Bloomberg

Event: The PBOC announced that the reserve requirement ratio (RRR) — currently at 15% for

smaller banks and 17% for large financial institutions — would be cut by 100 bps for most com-

mercial banks. The effective date is April 25. But the banks will be asked to use most of the freed

-up liquidity to pay back relatively costly loans obtained via the central bank’s medium-term lend-

ing facility (MLF). Based on Q1 2018 data, the PBOC said the MLF loans due to be repaid on

April 25 will be about RMB900bn. Whatever funds the banks have left after repaying their MLF

loans must be used to provide loans to small businesses. The PBOC said there will be

RMB400bn in excess funds after the MLF loan repayments.

Analysis of the CGS Research team

(1) Not a signal of aggressive monetary stimulus. The additional liquidity is about

RMB400bn,so the effective RRR cut is less than 50bps. This shows that the PBOC is main-

taining a neutral monetary policy. As market sentiment has been weak recently, the RRR

cut should help stabilize market sentiment, but we don’t think the PBOC has any intention

of launching a large-scale monetary stimulus, as deleveraging, risk prevention and tighter

scrutiny remain the key focus of the authorities.

(2) Lower funding cost of banks to support the economy. Currently, the one-year interest

rate for the MLF is 3.25%-3.3%. Helping the banks repay the MLF using excess liquidity

released by the RRR cut will lower the overall funding cost of banks. In particular, it will

reduce the risk for smaller banks.

Analyst: Wong Chi-man, CFA

RESEARCH NOTES

STRATEGY - As A-shares will be officially included in the MSCI Emerging Markets Index start-ing in late May, we take this opportunity to review the latest situation and offer investment ideas to investors. Currently, we estimate a total of about US$12bn in passive funds will flow into A-shares during the two stages of inclusion (May and August). In the long term, the estimated fund flow may reach US$249bn, but it depends on the progress of China’s capital market reform. Following a correction of nearly 15% since late January, we believe the current valuation of the A-share market has become more attractive for investors with a longer investment horizon. We believe that investors with limited experience in the A-share market should initially pay more attention to the following 10 large-cap A-share companies: Ping An Insurance-A, Kweichow Moutai, China Merchants Bank-A, Hangzhou Hikvision Digital Technology, Industrial Bank, Midea Group, China State Construction Engineering, Jiangsu Hengrui Medicine, Baoshan Iron & Steel, and Kangmei Pharmaceutical.

SNIPPETS

CHINA HUARONG [2799.HK; HK$3.18; NOT RATED] - The Central Commission for Discipline Inspection (CCDI) announced that Huarong Asset Management Co. Ltd’s party secretary and chairman Lai Xiaomin is being investigated for alleged serious disciplinary violations. In the Hong Kong market, listed companies under the umbrella of Huarong include China Huarong, Huarong International (0993.HK) and Huarong Investment (2277.HK).

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STRATEGY NOTE

Analyst: Wong Chi-man, CFA (Tel: (852) 3698 6317); [email protected]

UPDATE ON MSCI A-SHARE INCLUSION

Summary. As A-shares will be officially included in the MSCI Emerging Markets Index starting in late May, we take this opportunity to

review the latest situation and offer investment ideas to investors. Currently, we estimate a total of about US$12bn in passive funds

will flow into A-shares during the two stages of inclusion (May and August). In the long term, the estimated fund flow may reach

US$249bn, but it depends on the progress of China’s capital market reform. Following a correction of nearly 15% since late January,

we believe the current valuation of the A-share market has become more attractive for investors with a longer investment horizon. We

believe that investors with limited experience in the A-share market should initially pay more attention to the following 10 large-cap A-

share companies: Ping An Insurance-A, Kweichow Moutai, China Merchants Bank-A, Hangzhou Hikvision Digital Technology, Indus-

trial Bank, Midea Group, China State Construction Engineering, Jiangsu Hengrui Medicine, Baoshan Iron & Steel, and Kangmei Phar-

maceutical.

Recap of the A-share inclusion process. Because of the daily net buy limit of the Stock Connect program, the implementation of A-

share inclusion in the MSCI Emerging Markets Index will be carried out in two steps: (i) 2.5% of the free float will be included based

on the quarterly review results in May 2018; and (ii) 5% of the free float will be included based on the quarterly review results in Au-

gust 2018. Therefore, A-shares will account for a 0.41% weighting of the MSCI Emerging Markets Index in June 2018. The weighting

will increase to 0.81% in September 2018. Based on the latest stock universe in March, 236 large cap A-shares are expected to be

included.

April 18, 2018

Figure 1: Weighting of A-shares in MSCI Emerging Markets Index

Sources: MSCI, CGIS Research (Based on March 2018 data)

Figure 2: Methodology of picking 236 large cap A-shares

Sources: MSCI, CGIS Research (based on March 2018 data)

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STRATEGY NOTE



Sources: MSCI, CGIS Research (Based on March 2018 data)

Northbound trading has become much more active. Average daily turnover (ADT) of northbound trading jumped from RMB3.3bn

in 2016 to RMB9.6bn in 2017. The ADT of 4M2018 grew further to RMB18.9bn. It is even more active than the ADT of southbound

trading, which was HK$19.3bn in 2018 YTD. The accumulated net buy of northbound trading also exceeded RMB407bn(US$64.8bn).

Figure 4: Daily turnover of southbound trading

Sources: WIND, CGIS Research

Figure 5: Accumulated net buy of northbound trading

Sources: WIND, CGIS Research

About US$12bn of passive fund inflow initially. According to MSCI, there is about US$1.5trn of funds tracking the MSCI Emerging

Markets Index. Based on a weighting of 0.81% after the two stages of inclusion, we estimate the initial passive fund inflow to A-shares

will be about US$12bn. However, if we assume 100% of the free float of the eligible A-shares is included, the weighting will jump to

16.6%, and the estimated passive fund inflow will reach US$249bn. But it may take 8-10 years to achieve full inclusion, based on the

experience in other emerging markets, unless China pushes forward a much faster opening of the capital account.

Figure 3: Weighting of A-shares in MSCI Emerging Markets Index

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STRATEGY NOTE



Sources: Bloomberg, CGIS Research

Undemanding valuation after a major correction. After a correction of about 15% since late January, the forward PER of the

Shanghai Composite Index dropped to 11.6x, which is largely in line with the 5-year average of 11.4x. It is also near the low-end of

range after the market collapse in mid-2015. The situation is similar for the Shenzhen Composite Index. Its latest forward PER is

18.2x, which is lower than the 5-year average 20.9x. Since there are more new economy-related stocks in the Shenzhen Composite

Index, it is reasonable to see the Shenzhen market enjoying a higher valuation.

Figure 8: Forward PER of Shanghai Composite Index


Only the healthcare sector has posted a positive return YTD. As the Shanghai Composite Index has dropped about 15% since

late January, the MSCI China A Inclusion Index (including the 236 large cap A-share companies) has lost about 5.5% YTD. Only the

healthcare sector has posted a positive return YTD (6.87%). Other relatively resilient sectors include materials (thanks to supply-side

reforms) and energy (thanks to the rebound in oil prices). The weakest sectors include consumer discretionary (profit-taking after the

huge rally last year), industrials (both the construction and railway sectors were relatively weak) and financials (profit-taking after the

re-rating last year). (Note: Telecom services is not included in our discussion because there is only one stock in this sector.)

Figure 6: YTD sector performance of MSCI China A Inclusion Index

(14.56)

(9.65)

(7.79)

(6.03)

(5.49)

(4.66)

(2.47)

(2.35)

(1.27)

(0.81)

(0.34)

6.87

-20 -15 -10 -5 0 5 10

Telecommunication Services

Consumer Discretionary

Industrials

Financials

MSCI China A Inclusion Index

Consumer Staples

Information Technology

Utilities

Real Estate

Energy

Materials

Health Care Consumer Discretionary

9.7%

Consumer Staples11.1%

Energy2.0%

Financials33.6%

Health Care5.5%

Industrials13.3%

Information Technology

8.2%

Materials7.2%

Real Estate6.0%

Telecommunication Services

0.1%Utilities

3.3%

圖表標題

Figure 7: Sector breakdown of MSCI China A Inclusion Index (market cap)

Sources: MSCI, CGIS Research (based on April 2018 data)

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STRATEGY NOTE




Figure 10: A list of 10 large cap A-share companies


Figure 9: Forward PER of Shenzhen Composite Index

10 stocks for investors who have limited experience in the A-share market. Since A-share companies will initially represent a

weighting of only 0.81% of the MSCI Emerging Markets Index, we picked 10 stocks investors should pay attention to if they have lim-

ited experience in the A-share market so that they do not need to spend too much time picking stocks initially. For simplicity, the 10

stocks were selected based on an equal weighting, with 3 financials stocks, 2 healthcare stocks, 1 consumer discretionary stock, 1

consumer staple stock, 1 industrials stock, 1 materials stock and 1 information technology stock. Therefore, we picked stocks mainly

from industries with higher weightings and skipped stocks in the utilities, energy, real estate and telecommunication services sectors,

as these four sectors together account for only about 11.4% of the weighting. In other words, we focus on 89% of the weighting.

A list of 10 stocks. Unless we believe the stock has a very poor outlook, we generally picked stocks from the Top 3 market cap

stocks in each industry mentioned above. Although the performance of financials has been unimpressive YTD, we still included three

stocks in our model portfolio to avoid a large deviation from the index weighting. The 10 stocks are Ping An Insurance-A

(601318.CH), Kweichow Moutai (600519.CH), China Merchants Bank-A (600036.CH), Hangzhou Hikvision Digital Technology

(002415.CH), Industrial Bank (601166.CH), Midea Group (000333.CH), China State Construction Engineering (601668.CH), Jiangsu

Hengrui Medicine (600276.CH), Baoshan Iron & Steel (600019.CH) and Kangmei Pharmaceutical (600518.CH).

Ticker Company name Sector Price (RMB) Market cap (US$m) 2018E PER (x) 2019E PER (x) PBR (x)

2018E

dividend

yield (%)

Estimated

weighting in

MSCI China A

Inclusion

Index (%)

601318 CH Equity Ping An Insurance Group Co of China Ltd Financials 63.13 186,110 11.43 9.60 2.44 2.23 3.84

600519 CH Equity Kweichow Moutai Co Ltd Consumer staples 666.2 133,295 23.06 18.82 9.15 2.01 4.71

600036 CH Equity China Merchants Bank Co Ltd Financials 27.69 109,766 8.80 7.69 1.57 3.37 3.20

002415 CH Equity Hangzhou Hikvision Digital Technology Co Ltd Information Technology 37.99 55,833 36.60 27.73 12.93 1.22 2.02

601166 CH Equity Industrial Bank Co Ltd Financials 16.04 53,074 5.75 5.42 0.87 3.78 1.82

000333 CH Equity Midea Group Co Ltd Consumer discretionary 49.89 52,250 15.22 12.86 4.42 2.87 1.80

601668 CH Equity China State Construction Engineering Corp Ltd Industrials 8.22 39,278 6.57 5.83 1.24 3.30 1.36

600276 CH Equity Jiangsu Hengrui Medicine Co Ltd Healthcare 80.87 36,486 58.10 46.00 14.74 0.15 1.25

600019 CH Equity Baoshan Iron & Steel Co Ltd Materials 8.45 29,970 8.78 8.14 1.14 5.66 0.85

600518 CH Equity Kangmei Pharmaceutical Co Ltd Healthcare 21.7 17,192 26.33 21.96 3.82 1.15 0.60

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STRATEGY NOTE



Figure 11: 12-month model portfolio prepared by CGS Research

Ticker Company name Price (RMB) Market cap (US$m) 2018E PER (x) 2019E PER (x) PBR (x) 2018E dividend yield (%)

000786 CH Equity Beijing New Building Materials PLC 23.11 6,584 13.08 10.66 3.33 2.27

000661 CH Equity Changchun High & New Technology Industries Inc 179.1 4,853 35.20 27.25 6.88 0.58

002025 CH Equity Guizhou Space Appliance Co Ltd 25.96 1,774 30.12 23.95 4.70 1.16

600519 CH Equity Kweichow Moutai Co Ltd 666.2 133,295 23.06 18.82 9.15 2.01

002405 CH Equity NavInfo Co Ltd 25.28 5,164 112.36 79.75 4.94 0.16

601318 CH Equity Ping An Insurance Group Co of China Ltd 63.13 186,111 11.43 9.60 2.44 2.23

600048 CH Equity Poly Real Estate Group Co Ltd 13.15 24,837 8.11 6.55 1.46 3.39

600779 CH Equity Sichuan Swellfun Co Ltd 44.96 3,499 63.59 35.24 14.76 0.99

002353 CH Equity Yantai Jereh Oilfield Services Group Co Ltd 15.76 2,404 49.10 26.58 1.90 0.38

300410 CH Equity Guangdong Zhengye Technology Co Ltd 29.9 939 26.82 16.47 2.98 0.23

Note: Stocks highlighted in red are included in the MSCI China A Inclusion Index.

Sources: Bloomberg, CGS Research

Ticker Company name Price (RMB) Market cap (US$m) 2018E PER (X) 2019E PER (x) PBR (x) 2018E dividend yield (%)Amount owned by northbound

investors (US$m)%

600519 CH Equity Kweichow Moutai Co Ltd 666.2 133,295 23.06 18.82 9.15 2.01 8,440 6.33

600276 CH Equity Jiangsu Hengrui Medicine Co Ltd 80.87 36,486 58.10 46.00 14.74 0.15 5,213 14.29

601318 CH Equity Ping An Insurance Group Co of China Ltd 63.13 186,111 11.43 9.60 2.44 2.23 4,268 2.29

600900 CH Equity China Yangtze Power Co Ltd 15.99 56,030 16.10 16.74 2.70 4.19 2,883 5.15

600887 CH Equity Inner Mongolia Yili Industrial Group Co Ltd 27.81 26,925 26.21 21.04 6.97 2.39 2,669 9.91

600009 CH Equity Shanghai International Airport Co Ltd 44.55 13,673 20.20 17.91 3.42 1.47 2,569 18.79

601888 CH Equity China International Travel Service Corp Ltd 51.17 15,913 40.71 31.66 7.43 1.08 1,775 11.15

600104 CH Equity SAIC Motor Corp Ltd 31.37 58,376 9.56 8.80 1.63 6.38 1,523 2.61

600036 CH Equity China Merchants Bank Co Ltd 27.69 109,767 8.80 7.69 1.57 3.37 1,495 1.36

603288 CH Equity Foshan Haitian Flavouring & Food Co Ltd 59.42 25,565 37.99 32.74 13.66 1.66 1,320 5.16

600690 CH Equity Qingdao Haier Co Ltd 17.06 16,568 15.25 12.88 3.44 1.95 1,283 7.74

601901 CH Equity Founder Securities Co Ltd 5.89 7,723 26.77 n.a. 1.30 n.a. 1,129 14.62

600585 CH Equity Anhui Conch Cement Co Ltd 31.97 27,779 8.87 8.35 1.89 4.20 1,069 3.85

600066 CH Equity Zhengzhou Yutong Bus Co Ltd 22.11 7,797 12.89 12.10 3.38 3.10 1,050 13.46

600660 CH Equity Fuyao Glass Industry Group Co Ltd 22.91 9,155 14.80 13.08 3.02 3.89 960 10.49

Figure 12: Top 15 A-shares owned by northbound investors (amount)

Sources: Bloomberg, CGIS Research (Based on April 17, 2018 data)

Figure 13: Top 15 A-shares owned by northbound investors (% stake)

Sources: Bloomberg, CGIS Research (Based on April 17, 2018 data)

Ticker Company name Price (RMB) Market cap (US$m) 2018E PER (X) 2019E PER (x) PBR (x) 2018E dividend yield (%)% stake owned by

northbound investors

600009 CH Equity Shanghai International Airport Co Ltd 44.55 13,673 20.20 17.91 3.42 1.47 32.25

603816 CH Equity Jason Furniture Hangzhou Co Ltd 61.87 4,219 32.01 24.19 7.42 1.09 19.28

600066 CH Equity Zhengzhou Yutong Bus Co Ltd 22.11 7,797 12.89 12.10 3.38 3.10 15.49

601901 CH Equity Founder Securities Co Ltd 5.89 7,723 26.77 n.a. 1.30 n.a. 14.53

600276 CH Equity Jiangsu Hengrui Medicine Co Ltd 80.87 36,486 58.10 46.00 14.74 0.15 14.04

600660 CH Equity Fuyao Glass Industry Group Co Ltd 22.91 9,155 14.80 13.08 3.02 3.89 12.86

600004 CH Equity Guangzhou Baiyun International Airport Co Ltd 15.19 5,007 20.23 19.25 2.16 1.58 12.07

601888 CH Equity China International Travel Service Corp Ltd 51.17 15,913 40.71 31.66 7.43 1.08 10.16

600887 CH Equity Inner Mongolia Yili Industrial Group Co Ltd 27.81 26,925 26.21 21.04 6.97 2.39 9.97

600900 CH Equity China Yangtze Power Co Ltd 15.99 56,030 16.10 16.74 2.70 4.19 9.91

603515 CH Equity Opple Lighting Co Ltd 50.73 4,682 33.75 26.80 9.39 0.99 9.68

600779 CH Equity Sichuan Swellfun Co Ltd 44.96 3,499 63.59 35.24 14.76 0.99 8.25

603833 CH Equity Oppein Home Group Inc 132.54 8,879 43.66 32.95 17.18 0.53 7.96

603868 CH Equity Shanghai Flyco Electrical Appliance Co Ltd 54.3 3,767 23.81 19.85 9.81 2.62 7.79

600885 CH Equity Hongfa Technology Co Ltd 38.39 3,253 23.74 19.48 5.18 1.11 7.69

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STRATEGY NOTE



Figure 14a: A-share large caps to be included in the MSCI Emerging Markets Index


Ticker Company name Sector Price (RMB)Market cap

(US$m)

2018E

PER (x)

2019E

PER (x)PBR (x)

2018E

dividend

yield (%)

Estimated

weighting

in MSCI

China A

Inclusion

Index (%)

000333 CH Equity Midea Group Co Ltd Consumer Discretionary 49.89 52,250 15.22 12.86 4.42 2.87 1.80

600104 CH Equity SAIC Motor Corp Ltd Consumer Discretionary 31.37 58,376 9.56 8.80 1.63 6.38 1.42

000651 CH Equity Gree Electric Appliances Inc of Zhuhai Consumer Discretionary 45.29 43,395 13.07 11.31 4.65 5.44 0.74

002024 CH Equity Suning.com Co Ltd Consumer Discretionary 13.09 19,411 78.38 53.00 1.54 0.47 0.68

600690 CH Equity Qingdao Haier Co Ltd Consumer Discretionary 17.06 16,568 15.25 12.88 3.44 1.95 0.57

601888 CH Equity China International Travel Service Corp Ltd Consumer Discretionary 51.17 15,913 40.71 31.66 7.43 1.08 0.56

002594 CH Equity BYD Co Ltd Consumer Discretionary 53.59 22,638 24.56 19.93 2.86 0.69 0.55

600741 CH Equity Huayu Automotive Systems Co Ltd Consumer Discretionary 22.53 11,314 9.89 9.00 1.72 5.34 0.40

000069 CH Equity Shenzhen Overseas Chinese Town Co Ltd Consumer Discretionary 7.83 10,234 8.31 6.81 1.34 1.19 0.35

600660 CH Equity Fuyao Glass Industry Group Co Ltd Consumer Discretionary 22.91 9,149 14.80 13.08 3.02 3.89 0.26

600637 CH Equity Shanghai Oriental Pearl Group Co Ltd Consumer Discretionary 16.91 7,114 16.94 15.47 1.67 1.56 0.25

600482 CH Equity China Shipbuilding Industry Group Power Co Ltd Consumer Discretionary 25.15 6,946 34.36 30.01 1.70 0.87 0.24

000625 CH Equity Chongqing Changan Automobile Co Ltd Consumer Discretionary 10.93 7,694 5.92 5.62 1.13 5.39 0.23

600297 CH Equity China Grand Automotive Services Co Ltd Consumer Discretionary 6.74 8,743 13.09 10.61 1.90 1.11 0.20

002508 CH Equity Hangzhou Robam Appliances Co Ltd Consumer Discretionary 32.77 4,953 16.71 13.61 5.88 2.14 0.18

601238 CH Equity Guangzhou Automobile Group Co Ltd Consumer Discretionary 18.92 19,388 9.98 8.79 1.99 3.05 0.17

600977 CH Equity China Film Co Ltd Consumer Discretionary 15.49 4,606 26.75 22.88 2.96 1.19 0.16

600739 CH Equity Liaoning Cheng Da Co Ltd Consumer Discretionary 17.57 4,281 n.a. n.a. 1.34 n.a. 0.15

000839 CH Equity CITIC Guoan Information Industry Co Ltd Consumer Discretionary 6.69 4,177 n.a. n.a. 3.85 n.a. 0.15

000559 CH Equity Wanxiang Qianchao Co Ltd Consumer Discretionary 8.29 3,635 n.a. n.a. 4.52 n.a. 0.13

002555 CH Equity Wuhu Shunrong Sanqi Interactive Entertainment Network Consumer Discretionary 14.41 4,930 18.33 14.47 4.70 1.08 0.12

601098 CH Equity China South Publishing & Media Group Co Ltd Consumer Discretionary 12.31 3,521 12.64 12.20 1.70 4.03 0.12

600373 CH Equity Chinese Universe Publishing and Media Co Ltd Consumer Discretionary 14.84 3,257 11.86 10.12 1.68 1.24 0.11

000581 CH Equity Weifu High-Technology Group Co Ltd Consumer Discretionary 23.21 3,470 9.39 8.92 1.66 3.92 0.10

601801 CH Equity Anhui Xinhua Media Co Ltd Consumer Discretionary 9.09 2,880 13.37 13.88 1.95 2.53 0.10

600519 CH Equity Kweichow Moutai Co Ltd Consumer Staples 666.2 133,295 23.06 18.82 9.15 2.01 4.71

000858 CH Equity Wuliangye Yibin Co Ltd Consumer Staples 67 40,509 28.00 21.16 5.02 1.84 1.42

600887 CH Equity Inner Mongolia Yili Industrial Group Co Ltd Consumer Staples 27.81 26,925 26.21 21.04 6.97 2.39 0.93

002304 CH Equity Jiangsu Yanghe Brewery Joint-Stock Co Ltd Consumer Staples 106.21 25,493 23.89 19.63 5.62 2.15 0.89

603288 CH Equity Foshan Haitian Flavouring & Food Co Ltd Consumer Staples 59.42 25,565 37.99 32.74 13.66 1.66 0.71

601933 CH Equity Yonghui Superstores Co Ltd Consumer Staples 8.96 13,658 37.02 27.83 4.29 1.83 0.50

000568 CH Equity Luzhou Laojiao Co Ltd Consumer Staples 59.77 13,944 24.88 19.42 5.77 2.14 0.48

000895 CH Equity Henan Shuanghui Investment & Development Co Ltd Consumer Staples 25.21 13,249 16.97 15.49 5.69 5.36 0.37

600809 CH Equity Shanxi Xinghuacun Fen Wine Factory Co Ltd Consumer Staples 53.9 7,433 47.87 30.13 9.15 1.12 0.27

002714 CH Equity Muyuan Foodstuff Co Ltd Consumer Staples 50.5 9,318 19.36 17.08 5.69 1.12 0.25

000876 CH Equity New Hope Liuhe Co Ltd Consumer Staples 7.09 4,761 11.96 12.82 1.45 1.34 0.16

600600 CH Equity Tsingtao Brewery Co Ltd Consumer Staples 42.73 8,281 36.77 32.42 3.37 1.11 0.16

002385 CH Equity Beijing Dabeinong Technology Group Co Ltd Consumer Staples 5.62 3,798 15.65 13.04 2.33 1.65 0.13

600827 CH Equity Shanghai Bailian Group Co Ltd Consumer Staples 10.28 2,850 21.20 19.11 1.09 1.07 0.09

600028 CH Equity China Petroleum & Chemical Corp Energy 6.62 124,695 11.43 10.83 1.10 6.04 0.90

601857 CH Equity PetroChina Co Ltd Energy 7.52 208,791 24.90 21.55 1.15 2.18 0.43

601225 CH Equity Shaanxi Coal Industry Co Ltd Energy 7.39 11,771 7.05 6.79 1.67 5.28 0.21

601699 CH Equity Shanxi Lu'an Environmental Energy Development Co Ltd Energy 9.93 4,731 10.85 9.25 1.44 0.67 0.17

600583 CH Equity Offshore Oil Engineering Co Ltd Energy 6.14 4,324 27.91 17.30 1.17 0.96 0.14

000983 CH Equity Shanxi Xishan Coal & Electricity Power Co Ltd Energy 7.5 3,764 n.a. n.a. 1.30 0.93 0.13

601318 CH Equity Ping An Insurance Group Co of China Ltd Financials 63.13 185,875 11.43 9.60 2.44 2.23 3.84

600036 CH Equity China Merchants Bank Co Ltd Financials 27.69 109,709 8.80 7.69 1.57 3.37 3.20

601166 CH Equity Industrial Bank Co Ltd Financials 16.04 53,074 5.75 5.42 0.87 3.78 1.82

600000 CH Equity Shanghai Pudong Development Bank Co Ltd Financials 11.55 53,997 6.27 5.80 0.88 2.55 1.81

601398 CH Equity Industrial & Commercial Bank of China Ltd Financials 5.79 321,555 6.80 6.29 1.01 4.44 1.70

601328 CH Equity Bank of Communications Co Ltd Financials 6.06 65,335 6.31 5.93 0.75 4.83 1.29

600016 CH Equity China Minsheng Banking Corp Ltd Financials 7.84 43,390 5.77 5.53 0.78 2.95 1.25

601288 CH Equity Agricultural Bank of China Ltd Financials 3.73 191,353 5.99 5.52 0.90 4.91 1.21

601601 CH Equity China Pacific Insurance Group Co Ltd Financials 32.19 44,103 14.95 12.42 2.12 3.29 1.14

600030 CH Equity CITIC Securities Co Ltd Financials 18.41 34,182 17.03 15.00 1.49 2.12 1.02

601988 CH Equity Bank of China Ltd Financials 3.76 170,143 6.13 5.66 0.79 4.92 1.02

000001 CH Equity Ping An Bank Co Ltd Financials 11.21 30,658 7.97 7.24 0.95 1.34 1.02

601818 CH Equity China Everbright Bank Co Ltd Financials 3.97 31,347 6.30 6.01 0.77 4.06 0.86

601169 CH Equity Bank of Beijing Co Ltd Financials 6.81 22,933 6.75 6.50 0.92 3.19 0.77

8

STRATEGY NOTE



Figure 14b: A-share large caps to be included in the MSCI Emerging Markets Index



(US$m)

2018E

PER (x)

2019E

PER (x)PBR (x)

2018E

dividend

yield (%)

Estimated

weighting

in MSCI

China A

Inclusion

Index (%)

601211 CH Equity Guotai Junan Securities Co Ltd Financials 17.34 23,498 13.63 12.24 1.35 2.38 0.70

601229 CH Equity Bank of Shanghai Co Ltd Financials 14.47 17,990 7.32 6.97 0.98 2.58 0.61

600015 CH Equity Huaxia Bank Co Ltd Financials 8.69 17,748 5.67 5.43 0.78 3.16 0.61

600999 CH Equity China Merchants Securities Co Ltd Financials 16.5 16,415 18.05 15.74 1.72 2.18 0.53

601688 CH Equity Huatai Securities Co Ltd Financials 17.31 18,305 15.41 13.67 1.42 2.47 0.52

000776 CH Equity GF Securities Co Ltd Financials 15.75 17,908 12.72 11.37 1.41 2.63 0.52

600837 CH Equity Haitong Securities Co Ltd Financials 11.24 19,042 13.46 11.66 1.10 2.29 0.51

002142 CH Equity Bank of Ningbo Co Ltd Financials 17.58 14,196 8.41 6.92 1.77 2.41 0.50

000166 CH Equity Shenwan Hongyuan Group Co Ltd Financials 4.78 17,158 19.12 16.48 1.76 1.05 0.49

600919 CH Equity Bank of Jiangsu Co Ltd Financials 7.16 13,165 7.03 6.42 1.00 2.47 0.45

601336 CH Equity New China Life Insurance Co Ltd Financials 41.7 18,452 16.00 13.19 2.04 1.58 0.43

600958 CH Equity Orient Securities Co Ltd/China Financials 11.96 12,277 20.80 17.98 1.58 1.56 0.40

601939 CH Equity China Construction Bank Corp Financials 7.28 252,943 6.98 6.39 1.07 4.26 0.38

601628 CH Equity China Life Insurance Co Ltd Financials 24.25 100,920 16.86 14.21 2.14 1.98 0.38

601009 CH Equity Bank of Nanjing Co Ltd Financials 7.92 10,700 7.05 6.41 1.02 2.92 0.37

600816 CH Equity Anxin Trust Co Ltd Financials 11.33 8,225 11.93 9.94 3.47 2.65 0.28

601901 CH Equity Founder Securities Co Ltd Financials 5.89 7,723 26.77 n.a. 1.30 n.a. 0.27

601788 CH Equity Everbright Securities Co Ltd Financials 12.19 8,379 15.12 14.36 1.16 1.76 0.26

600705 CH Equity Avic Capital Co Ltd Financials 5.31 7,592 13.55 11.59 1.98 2.26 0.26

601377 CH Equity Industrial Securities Co Ltd Financials 6.47 6,901 16.89 13.88 1.30 2.04 0.24

002736 CH Equity Guosen Securities Co Ltd Financials 10.52 13,740 19.48 16.97 1.88 1.52 0.24

600926 CH Equity Bank of Hangzhou Co Ltd Financials 11.09 6,473 9.13 8.09 1.01 1.35 0.22

000783 CH Equity Changjiang Securities Co Ltd Financials 7.02 6,183 20.23 16.96 1.46 1.50 0.21

601998 CH Equity China CITIC Bank Corp Ltd Financials 6.33 44,634 7.12 6.75 0.85 3.54 0.19

002673 CH Equity Western Securities Co Ltd Financials 9.33 5,204 n.a. n.a. 1.86 n.a. 0.18

601198 CH Equity Dongxing Securities Co Ltd Financials 14.13 6,207 n.a. n.a. 2.05 n.a. 0.18

601997 CH Equity Bank of Guiyang Co Ltd Financials 14.27 5,224 7.45 6.12 1.55 2.02 0.18

000627 CH Equity Hubei Biocause Pharmaceutical Co Ltd Financials 7.71 6,067 18.80 16.40 2.35 0.39 0.17

000728 CH Equity Guoyuan Securities Co Ltd Financials 8.64 4,631 17.28 14.47 1.15 3.65 0.16

002797 CH Equity First Capital Securities Co Ltd Financials 7.62 4,251 n.a. n.a. 3.01 n.a. 0.15

600109 CH Equity Sinolink Securities Co Ltd Financials 8.61 4,148 18.64 15.29 1.38 0.73 0.15

601555 CH Equity SooChow Securities Co Ltd Financials 8.01 3,827 14.83 11.87 1.15 1.75 0.13

600369 CH Equity Southwest Securities Co Ltd Financials 4.24 3,812 34.47 20.19 1.23 0.71 0.13

600061 CH Equity SDIC Capital Co Ltd Financials 12.01 8,086 15.01 12.91 1.40 n.a. 0.13

002500 CH Equity Shanxi Securities Co Ltd Financials 7.7 3,469 32.08 26.10 1.74 0.91 0.12

600909 CH Equity Huaan Securities Co Ltd Financials 6.74 3,887 n.a. n.a. 1.99 n.a. 0.11

601099 CH Equity Pacific Securities Co Ltd/The/China Financials 2.79 3,029 n.a. n.a. 1.62 n.a. 0.10

000686 CH Equity Northeast Securities Co Ltd Financials 7.68 2,863 24.00 n.a. 1.14 n.a. 0.10

000750 CH Equity Sealand Securities Co Ltd Financials 4.18 2,807 n.a. n.a. 1.26 n.a. 0.10

600276 CH Equity Jiangsu Hengrui Medicine Co Ltd Health Care 80.87 36,486 58.10 46.00 14.74 0.15 1.25

600518 CH Equity Kangmei Pharmaceutical Co Ltd Health Care 21.7 17,192 26.33 21.96 3.82 1.15 0.60

000538 CH Equity Yunnan Baiyao Group Co Ltd Health Care 94.9 15,741 26.58 22.86 5.48 1.22 0.54

600196 CH Equity Shanghai Fosun Pharmaceutical Group Co Ltd Health Care 38.33 15,045 24.68 20.84 3.77 1.22 0.48

002044 CH Equity Meinian Onehealth Healthcare Holdings Co Ltd Health Care 25.58 10,598 73.93 52.42 17.83 0.16 0.37

000963 CH Equity Huadong Medicine Co Ltd Health Care 64.96 10,058 28.45 23.14 7.52 1.46 0.35

600085 CH Equity Beijing Tongrentang Co Ltd Health Care 36.99 8,080 44.25 39.39 6.03 0.91 0.27

601607 CH Equity Shanghai Pharmaceuticals Holding Co Ltd Health Care 22.98 9,476 15.61 13.89 1.82 1.90 0.26

600535 CH Equity Tasly Pharmaceutical Group Co Ltd Health Care 42.65 7,340 29.03 24.99 5.11 0.97 0.26

002294 CH Equity Shenzhen Salubris Pharmaceuticals Co Ltd Health Care 39.52 6,584 24.04 20.21 6.39 1.39 0.23

600332 CH Equity Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd Health Care 28.16 6,972 20.29 17.60 2.43 1.42 0.23

000423 CH Equity Dong-E-E-Jiao Co Ltd Health Care 59.89 6,239 16.75 14.75 3.98 1.86 0.22

600998 CH Equity Jointown Pharmaceutical Group Co Ltd Health Care 18.58 5,557 25.52 23.17 3.04 1.05 0.20

000999 CH Equity China Resources Sanjiu Medical & Pharmaceutical Health Care 25.73 4,012 16.97 14.89 2.56 1.55 0.14

002424 CH Equity Guizhou Bailing Group Pharmaceutical Co Ltd Health Care 13.22 2,971 28.13 24.04 5.46 n.a. 0.11

601668 CH Equity China State Construction Engineering Corp Ltd Industrials 8.22 39,278 6.57 5.83 1.24 3.30 1.36

601766 CH Equity CRRC Corp Ltd Industrials 9.5 40,466 21.35 18.48 2.24 2.02 1.27

601390 CH Equity China Railway Group Ltd Industrials 7.31 24,767 9.51 8.59 1.16 1.61 0.74

601006 CH Equity Daqin Railway Co Ltd Industrials 7.87 18,636 8.69 8.54 1.20 5.84 0.65

601186 CH Equity China Railway Construction Corp Ltd Industrials 9.81 20,203 7.39 6.47 0.89 2.09 0.61

002475 CH Equity Luxshare Precision Industry Co Ltd Industrials 22.71 11,477 42.61 27.90 5.94 0.35 0.40

9

STRATEGY NOTE



Figure 14c: A-share large caps to be included in the MSCI Emerging Markets Index



(US$m)

2018E

PER (x)

2019E

PER (x)PBR (x)

2018E

dividend

yield (%)

Estimated

weighting

in MSCI

China A

Inclusion

Index (%)

600029 CH Equity China Southern Airlines Co Ltd Industrials 9.99 14,176 19.10 13.34 2.03 1.16 0.37

601669 CH Equity Power Construction Corp of China Ltd Industrials 6.44 15,693 12.55 10.68 1.38 1.71 0.36

600893 CH Equity AECC Aviation Power Co Ltd Industrials 26.69 9,564 44.12 37.54 2.33 0.73 0.34

600018 CH Equity Shanghai International Port Group Co Ltd Industrials 6.92 25,542 15.08 14.01 2.31 2.93 0.34

600031 CH Equity Sany Heavy Industry Co Ltd Industrials 8.24 10,115 18.52 14.69 2.46 1.26 0.34

601618 CH Equity Metallurgical Corp of China Ltd Industrials 3.62 11,165 11.10 10.14 1.16 2.76 0.31

002008 CH Equity Han's Laser Technology Industry Group Co Ltd Industrials 51.1 8,685 25.70 20.12 7.81 1.01 0.30

600115 CH Equity China Eastern Airlines Corp Ltd Industrials 6.72 13,920 17.41 12.02 1.83 1.07 0.30

002310 CH Equity Beijing Orient Landscape & Environment Co Ltd Industrials 18.06 7,717 22.55 15.23 4.85 0.33 0.28

000768 CH Equity AVIC Aircraft Co Ltd Industrials 18.65 8,224 73.14 59.21 3.29 0.65 0.28

000338 CH Equity Weichai Power Co Ltd Industrials 8.33 10,336 9.94 9.40 1.89 4.49 0.28

002202 CH Equity Xinjiang Goldwind Science & Technology Co Ltd Industrials 16.17 8,550 15.43 13.04 2.71 1.48 0.27

600066 CH Equity Zhengzhou Yutong Bus Co Ltd Industrials 22.11 7,797 12.89 12.10 3.38 3.10 0.26

601018 CH Equity Ningbo Zhoushan Port Co Ltd Industrials 5.15 10,805 22.99 21.46 1.88 1.36 0.25

600009 CH Equity Shanghai International Airport Co Ltd Industrials 44.55 13,673 20.20 17.91 3.42 1.47 0.24

600516 CH Equity Fangda Carbon New Material Co Ltd Industrials 25.48 7,260 10.89 11.58 4.51 - 0.24

601919 CH Equity COSCO SHIPPING Holdings Co Ltd Industrials 5.46 7,884 22.47 11.95 2.70 - 0.23

601111 CH Equity Air China Ltd Industrials 11.47 24,051 16.87 12.95 1.93 1.23 0.22

600068 CH Equity China Gezhouba Group Co Ltd Industrials 8.26 6,058 7.47 6.22 1.52 3.75 0.21

601877 CH Equity Zhejiang Chint Electrics Co Ltd Industrials 26.98 9,245 20.71 16.58 3.02 2.48 0.20

601800 CH Equity China Communications Construction Co Ltd Industrials 12.96 28,877 9.80 8.62 1.26 1.91 0.19

601117 CH Equity China National Chemical Engineering Co Ltd Industrials 7.21 5,665 18.03 13.40 1.26 1.68 0.19

002081 CH Equity Suzhou Gold Mantis Construction Decoration Co Ltd Industrials 12.77 5,376 17.14 13.76 3.07 1.21 0.18

600170 CH Equity Shanghai Construction Group Co Ltd Industrials 3.63 5,148 11.00 9.95 1.20 10.33 0.18

600089 CH Equity TBEA Co Ltd Industrials 8.49 5,023 11.04 9.86 1.13 2.51 0.17

600153 CH Equity Xiamen C & D Inc Industrials 10.87 4,909 7.91 6.95 1.30 3.68 0.17

000826 CH Equity Tus-Sound Environmental Resources Co Ltd Industrials 29.32 4,772 17.95 14.84 2.34 0.88 0.16

600118 CH Equity China Spacesat Co Ltd Industrials 23.29 4,386 56.80 51.41 5.31 0.54 0.16

000425 CH Equity XCMG Construction Machinery Co Ltd Industrials 3.95 4,409 27.43 17.71 1.31 0.51 0.15

000157 CH Equity Zoomlion Heavy Industry Science and Technology Co Ltd Industrials 4.15 4,827 20.44 18.61 0.84 1.76 0.14

601333 CH Equity Guangshen Railway Co Ltd Industrials 4.3 4,674 18.61 18.70 1.06 2.60 0.14

601866 CH Equity COSCO SHIPPING Development Co Ltd Industrials 2.99 4,485 23.00 17.59 2.29 0.67 0.13

600372 CH Equity China Avionics Systems Co Ltd Industrials 15.14 4,242 42.77 36.84 3.75 0.45 0.12

600820 CH Equity Shanghai Tunnel Engineering Co Ltd Industrials 7 3,505 11.71 10.69 1.19 2.61 0.12

000039 CH Equity China International Marine Containers Group Co Ltd Industrials 15.71 5,948 14.44 11.86 1.54 1.85 0.11

601718 CH Equity Jihua Group Corp Ltd Industrials 5.09 3,560 n.a. n.a. 1.21 n.a. 0.10

601021 CH Equity Spring Airlines Co Ltd Industrials 32.86 4,799 21.58 17.51 3.14 0.55 0.10

601611 CH Equity China Nuclear Engineering Corp Ltd Industrials 9.09 3,801 26.35 23.61 3.14 0.77 0.09

600026 CH Equity COSCO SHIPPING Energy Transportation Co Ltd Industrials 5.29 2,956 14.90 10.93 0.78 2.61 0.08

002415 CH Equity Hangzhou Hikvision Digital Technology Co Ltd Information Technology 37.99 55,833 36.60 27.73 12.93 1.22 2.02

000725 CH Equity BOE Technology Group Co Ltd Information Technology 4.89 26,860 21.54 16.75 2.03 0.59 0.93

002027 CH Equity Focus Media Information Technology Co Ltd Information Technology 11.15 21,722 23.42 20.24 16.44 2.90 0.64

000063 CH Equity ZTE Corp Information Technology 31.31 19,607 25.79 22.35 3.20 1.01 0.55

600703 CH Equity Sanan Optoelectronics Co Ltd Information Technology 22.05 14,324 28.16 21.18 4.74 1.04 0.49

002230 CH Equity Iflytek Co Ltd Information Technology 54.81 12,123 114.91 79.67 9.34 0.27 0.43

002236 CH Equity Zhejiang Dahua Technology Co Ltd Information Technology 23.2 10,712 20.64 15.48 6.43 0.67 0.38

601012 CH Equity LONGi Green Energy Technology Co Ltd Information Technology 30.69 9,747 14.45 11.39 4.31 0.93 0.35

002456 CH Equity O-film Tech Co Ltd Information Technology 20.49 8,859 43.14 25.71 6.20 0.31 0.27

600487 CH Equity Hengtong Optic-electric Co Ltd Information Technology 32.57 7,054 19.60 14.06 4.36 0.54 0.26

600271 CH Equity Aisino Corp Information Technology 24.24 7,192 25.28 22.04 4.37 1.44 0.26

002241 CH Equity GoerTek Inc Information Technology 13.07 6,755 15.63 13.34 2.85 0.93 0.23

002558 CH Equity Giant Network Group Co Ltd Information Technology 28.95 9,335 46.69 38.60 7.05 n.a. 0.22

000413 CH Equity Dongxu Optoelectronic Technology Co Ltd Information Technology 7.36 6,569 n.a. n.a. 1.59 n.a. 0.22

000938 CH Equity Unisplendour Corp Ltd Information Technology 73.11 12,137 49.53 40.94 3.09 n.a. 0.21

600570 CH Equity Hundsun Technologies Inc Information Technology 63.44 6,243 69.26 52.82 12.75 0.45 0.21

002465 CH Equity Guangzhou Haige Communications Group Inc Co Information Technology 10.81 3,973 43.59 30.80 3.06 1.20 0.14

002065 CH Equity DHC Software Co Ltd Information Technology 8.06 4,031 30.65 22.39 2.77 0.51 0.14

002153 CH Equity Beijing Shiji Information Technology Co Ltd Information Technology 27.02 4,591 68.06 56.06 4.25 0.23 0.13

002195 CH Equity Shanghai 2345 Network Holding Group Co Ltd Information Technology 6.3 3,427 20.13 15.75 2.79 0.95 0.10

600019 CH Equity Baoshan Iron & Steel Co Ltd Materials 8.45 29,970 8.78 8.14 1.14 5.66 0.85

600585 CH Equity Anhui Conch Cement Co Ltd Materials 31.97 27,756 8.87 8.35 1.89 4.20 0.72

10

STRATEGY NOTE



Figure 14d: A-share large caps to be included in the MSCI Emerging Markets Index



(US$m)

2018E

PER (x)

2019E

PER (x)PBR (x)

2018E

dividend

yield (%)

Estimated

weighting

in MSCI

China A

Inclusion

Index (%)

600010 CH Equity Inner Mongolia BaoTou Steel Union Co Ltd Materials 2.18 15,828 n.a. n.a. 2.04 n.a. 0.44

601899 CH Equity Zijin Mining Group Co Ltd Materials 4.21 14,295 18.79 15.77 2.77 2.87 0.40

002450 CH Equity Kangde Xin Composite Material Group Co Ltd Materials 19.78 11,134 26.16 19.19 4.03 0.43 0.38

603799 CH Equity Zhejiang Huayou Cobalt Co Ltd Materials 98.97 9,343 36.45 23.61 11.09 0.15 0.36

002466 CH Equity Tianqi Lithium Corp Materials 51.27 9,326 21.58 16.47 5.59 0.48 0.34

600547 CH Equity Shandong Gold Mining Co Ltd Materials 31.54 9,329 31.57 28.24 3.59 0.48 0.31

603993 CH Equity China Molybdenum Co Ltd Materials 7.65 24,223 34.15 31.22 4.33 1.91 0.31

002460 CH Equity Jiangxi Ganfeng Lithium Co Ltd Materials 63.5 7,496 21.19 16.84 11.67 0.45 0.27

600111 CH Equity China Northern Rare Earth Group High-Tech Co Ltd Materials 12.88 7,453 85.87 42.23 5.31 0.34 0.26

601992 CH Equity BBMG Corp Materials 4.67 7,273 12.13 11.12 1.21 1.41 0.21

000792 CH Equity Qinghai Salt Lake Industry Co Ltd Materials 12.55 5,569 627.50 45.14 1.86 0.08 0.20

002493 CH Equity Rongsheng Petro Chemical Co Ltd Materials 14.96 9,093 20.00 10.97 4.00 0.55 0.19

600352 CH Equity Zhejiang Longsheng Group Co Ltd Materials 10.9 5,648 10.65 9.33 2.09 1.86 0.19

000709 CH Equity Hesteel Co Ltd Materials 3.33 5,632 12.33 10.74 0.77 2.19 0.19

600362 CH Equity Jiangxi Copper Co Ltd Materials 16.88 7,483 19.88 16.34 1.23 2.02 0.19

600489 CH Equity Zhongjin Gold Corp Ltd Materials 9.98 5,486 71.29 48.92 2.55 0.38 0.18

000825 CH Equity Shanxi Taigang Stainless Steel Co Ltd Materials 6 5,444 8.94 7.94 1.40 0.75 0.17

600688 CH Equity Sinopec Shanghai Petrochemical Co Ltd Materials 5.76 8,947 10.47 11.03 2.20 4.44 0.15

601118 CH Equity China Hainan Rubber Industry Group Co Ltd Materials 6.43 4,383 n.a. 107.17 3.14 n.a. 0.15

000630 CH Equity Tongling Nonferrous Metals Group Co Ltd Materials 2.58 4,326 18.43 15.83 1.57 0.39 0.15

002411 CH Equity Jiangsu Bicon Pharmaceutical Listed Co Materials 25.68 6,267 36.69 31.32 4.47 n.a. 0.14

000898 CH Equity Angang Steel Co Ltd Materials 5.99 6,896 7.53 7.55 0.87 4.31 0.13

000060 CH Equity Shenzhen Zhongjin Lingnan Nonfemet Co Ltd Materials 9.3 3,525 16.91 15.47 2.21 1.77 0.12

600808 CH Equity Maanshan Iron & Steel Co Ltd Materials 3.46 4,031 6.34 6.28 1.12 5.03 0.11

601958 CH Equity Jinduicheng Molybdenum Co Ltd Materials 6.68 3,433 59.12 30.36 1.70 n.a. 0.10

000002 CH Equity China Vanke Co Ltd Real Estate 29.92 51,680 9.34 7.52 2.49 4.13 1.65

600048 CH Equity Poly Real Estate Group Co Ltd Real Estate 13.15 24,837 8.11 6.55 1.46 3.39 0.86

001979 CH Equity China Merchants Shekou Industrial Zone Holdings Co Ltd Real Estate 21.44 26,992 11.10 8.95 2.63 3.14 0.75

600340 CH Equity China Fortune Land Development Co Ltd Real Estate 28.41 13,371 7.84 6.04 2.99 3.79 0.42

601155 CH Equity Future Land Holdings Co Ltd Real Estate 33.65 12,099 9.84 7.16 3.65 1.97 0.41

600606 CH Equity Greenland Holdings Corp Ltd Real Estate 7.02 13,605 10.12 8.71 1.47 3.85 0.31

600383 CH Equity Gemdale Corp Real Estate 10.99 7,903 6.85 6.13 1.22 6.29 0.27

002146 CH Equity RiseSun Real Estate Development Co Ltd Real Estate 10.12 7,009 6.17 4.73 1.60 5.53 0.22

600208 CH Equity Xinhu Zhongbao Co Ltd Real Estate 4.4 6,027 12.57 9.22 1.22 n.a. 0.20

600663 CH Equity Shanghai Lujiazui Finance & Trade Zone Development Real Estate 18.01 8,323 21.24 20.77 4.23 2.41 0.17

600177 CH Equity Youngor Group Co Ltd Real Estate 8.56 4,883 n.a. n.a. 1.30 n.a. 0.16

000656 CH Equity Jinke Properties Group Co Ltd Real Estate 5.5 4,678 12.50 13.41 1.70 0.65 0.16

600415 CH Equity Zhejiang China Commodities City Group Co Ltd Real Estate 5.07 4,396 13.00 11.02 2.47 n.a. 0.15

000402 CH Equity Financial Street Holdings Co Ltd Real Estate 9.16 4,361 7.12 5.83 0.93 5.37 0.15

600895 CH Equity Shanghai Zhangjiang High-Tech Park Development Real Estate 12.8 3,157 n.a. n.a. 2.36 n.a. 0.12

600804 CH Equity Dr Peng Telecom & Media Group Co Ltd Telecommunication Services 14.1 3,217 24.69 21.56 2.91 1.18 0.11

600900 CH Equity China Yangtze Power Co Ltd Utilities 15.99 56,030 16.10 16.74 2.70 4.19 1.26

601985 CH Equity China National Nuclear Power Co Ltd Utilities 6.51 16,140 21.70 17.45 2.35 1.61 0.46

600023 CH Equity Zhejiang Zheneng Electric Power Co Ltd Utilities 5.37 11,633 13.33 10.80 1.20 3.97 0.26

600886 CH Equity SDIC Power Holdings Co Ltd Utilities 6.99 7,555 12.37 12.20 1.55 2.82 0.26

600674 CH Equity Sichuan Chuantou Energy Co Ltd Utilities 8.84 6,198 11.28 10.55 1.76 3.21 0.21

600011 CH Equity Huaneng Power International Inc Utilities 6.34 13,557 22.64 15.31 1.37 2.54 0.17

600027 CH Equity Huadian Power International Corp Ltd Utilities 3.5 5,200 20.71 14.23 0.83 2.31 0.16

600642 CH Equity Shenergy Co Ltd Utilities 5.57 4,038 12.80 10.45 1.00 4.67 0.14

600008 CH Equity Beijing Capital Co Ltd Utilities 4.88 3,747 31.28 29.76 2.98 1.89 0.13

000027 CH Equity Shenzhen Energy Group Co Ltd Utilities 5.69 3,593 17.24 15.81 1.06 2.64 0.11

000883 CH Equity Hubei Energy Group Co Ltd Utilities 4.26 4,415 12.53 10.65 1.09 2.11 0.10

11

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BUY share price will increase by >20% within 12 months in absolute terms :

SELL share price will decrease by >20% within 12 months in absolute terms :

HOLD no clear catalyst, and downgraded from BUY pending clearer signal to reinstate BUY or further downgrade to outright SELL :

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