China Prop Weekly: Weekly sales up 5.2% WoW and up 41% YoY to 6.293 msqm

Deutsche Bank Markets Research Asia China Property Property Industry China Prop Weekly Date 16 June 2015 Industry Update Weekly sales up 5.2% WoW and up 41% YoY to 6.293 msqm Weekly sales increased 5.2% WoW to 6.293 msqm ________________________________________________________________________________________________________________ Deutsche Bank AG/Hong Kong Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. DISCLOSURES AND ANALYST CERTIFICATIONS ARE LOCATED IN APPENDIX 1. MCI (P) 124/04/2015. Tony Tsang Research Analyst (+852) 2203 6256 tony.tsang@db.com Jason Ching, CFA Research Analyst (+852) 2203 6205 jason.ching@db.com Foo Leung Research Associate (+852) 2203 6239 foo.leung@db.com Companies Featured COLI (0688.HK),HKD28.25 Buy China Resources Land (1109.HK),HKD25.15 Buy Country Garden Holdings (2007.HK),HKD3.48 Sell Agile Property (3383.HK),HKD5.91 Sell Sino Ocean (3377.HK),HKD5.51 Buy Wanda (3699.HK),HKD71.60 Buy Yanlord Land (YNLG.SI),SGD1.11 Sell Gemdale Corp (600383.SS),CNY15.30 Sell Longfor (0960.HK),HKD12.24 Buy Yuexiu Property (0123.HK),HKD1.75 Sell Franshion (0817.HK),HKD2.95 Buy China Ovs Grand Oceans (0081.HK),HKD4.11 Buy Central China Real Estate (0832.HK),HKD2.38 Buy CSCEC (601668.SS),CNY9.66 Buy Greentown China (3900.HK),HKD10.68 Buy Evergrande (3333.HK),HKD5.06 Sell Shimao Property (0813.HK),HKD16.88 Sell Hang Lung Properties (0101.HK),HKD24.05 Buy SHK Properties Ltd (0016.HK),HKD126.30 Buy Joy City Property (0207.HK),HKD2.25 Buy Sunac (1918.HK),HKD8.92 Sell Source: Deutsche Bank During the week of 8-14 Jun 2015, total sales volume in the 40 major cities increased by 5.2% WoW to 6.293 msqm, regaining positive WoW growth after the first weekly decline in the past six weeks. In addition, the sales volume last week was close to the average weekly volume in May, which was 6.3 msqm. Weekly sales volumes recorded +1% MoM and +41% YoY changes. MTD sales recorded +3%/+50% MoM/YoY changes to 12.274 msqm. 2015 YTD sales growth was +12.4% YoY to 128.4 msqm. ASP was recorded at RMB10,463 psqm, representing changes of +2.00% WoW/ +0.28% MoM/ +0.41% YoY. Sales volume in Tier 1 cities up 5.2% WoW Sales volume in Tier 1 cities increased 5.2% WoW to 1,064 ksqm during the week. Total sales volume in Tier 1 cities was +3.2% MoM and +57% YoY. For June MTD, total sales volume in Tier 1 cities was up 7% MoM and up 77% YoY to 2.1 msqm. YTD sales volume in Tier 1 cities was up 47% YoY. ASP in Tier 1 cities last week was recorded at RMB22,303 psqm, up 16.2% YoY. Sales volume in Tier 2 cities up 7.1% WoW During the week, sales volume in Tier 2 cities was up 7.1% WoW to 4.045 msqm. Tier 2 cities saw sales volume up 4% MoM and up 28% in YoY terms. For June MTD, total sales volume in Tier 2 cities was up 4% MoM and up 35% YoY to 7.8 msqm. YTD sales volume in Tier 2 cities was up 4.1% YoY. ASP in Tier 2 cities last week was recorded at RMB9,946 psqm, down 3.22% YoY. Sales volume in Tier 3 cities decreased 1.6% WoW For Tier 3 cities, sales volume decreased 1.6% WoW to 1,184 ksqm. Sales volume in Tier 3 cities dropped 9.9% MoM and was up 84% YoY. For June MTD, total sales volume in Tier 3 cities was down 2% MoM and up 96% YoY to 2.4 msqm. YTD sales volume in Tier 3 cities increased 21% YoY. ASP in Tier 3 cities last week was recorded at RMB7,333 psqm, down 2.96% YoY. Sales volumes in Tier 2 and 3 cities by region 1) Yangtze River Delta: sales increased 10% WoW to 1,445 ksqm last week. For June MTD, total sales volume in the region was down 1.5% MoM and up 89% YoY to 2.8 msqm. For YTD, sales volume for the region was up 19% YoY to 27.0 msqm. 2) Guangdong and Fujian Province region: sales increased 22% WoW to 674 ksqm. For June MTD, total sales volume in the region was down 10% MoM and up 77% YoY to 1.22 msqm. YTD sales volume for the region increased 32% YoY to 11.4 msqm. 3) Western region: sales decreased 5% WoW to 1.1 msqm. For June MTD, total sales volume in the region was down 7% MoM and up 19% YoY to 2.2 msqm. YTD sales volume for the region was up 0.7% YoY at 27.2 msqm. 4) Central region: sales were down 12% WoW to 757 ksqm. For June MTD, total sales volume in the region was up 21% MoM and 20% YoY to 1.62 msqm. YTD sales volume for the region was up 0.3% YoY to 17.2 msqm. 5) Northeastern region: sales were up 21% WoW to 1,117 ksqm. For June MTD, total sales volume in the region was up 11% MoM and 40% YoY to 2.0 msqm. YTD sales volume for the region fell 1% YoY to 20.7 msqm. 16 June 2015 Property China Prop Weekly Page 2 Deutsche Bank AG/Hong