CSR Ranks No. 5 Among Top 10 Golden Stocks in Tiger Year

The new institutional Top 10 Golden Stocks have been selected. Pharmaceutical and chemical sectors are taking leading positions in the 143 golden stock candidates recommended by 13 brokers. Ping An601318 ranks No.1 and CSR, with strong recommendations by Huatai United Securities, Southwest Securities and Haitong Securities, ranks No. 5 among the Top 10 Golden Stocks in Tiger Year, which are listed below.

No. 1 Ping An

Recommended by 7 institutions including CICC, Everbright Securities601788, Industrial Securities, Shanghai Securities, Goldman Sachs Gaohua Securities, China Minzu Securities and Guolian Securities.

Why selected: Ping An boasts strong market demand, which will expand its growth points for the next few years. At the same time, Ping An s ranking among its international competitors will definitely be raised to a higher level. Its major growth stimulus lies in the fact that the 3G infrastructure in China is still in the start-up stage and the technological innovations will bring structural adjustment to the operators capital expenditures and trigger new market demands.

No. 2 CITIC Securities

Recommended by 6 institutions including Central China Securities, Everbright Securities, Southwest Securities600369, Golden Sun Securities, Haitong Securities600837 and Goldman Sachs Gaohua Securities.

Why selected: CITIC Securities will increase its securities investment. It is expected that by 2010, its equity assets will reach 15.7 billion Yuan, accounting for 25% of its total assets. Its market share of brokerage business will stay stable with the commission rate reducing slightly. Institutional innovations will bring growth space for the Company while debt&equity financing and stock index futures will take the leading positions.

No. 3 China Merchants Bank

Recommended by 5 institutions including Southwest Securities, GF Securities, Golden Sun Securities, Industrial Securities and Central China Securities.

Why selected: Its advantage in retail and high notes proportion has given the Company great elasticity in spreads. Besides, the stable assets quality and the highest provision coverage have allowed for great potential for profitability. After financing 22 billion Yuan, the Company has made the first move in the next round of expansion.

No. 4 Xishan Coal Electricity

Recommended by 5 institutions including CICC, China Minzu Securities, Golden Sun Securities, Guolian Securities and Central China Securities

Why selected: As the Chinese and global economy recovers steadily, more steel works in the world will resume production. The future demand for coking coals will expand even further and its price, both inside and outside China, will rise steadily. The M&A of coal producers in ShanxiProvince will give the Company even greater power in the coking coal sector.

No. 5 CSR 601766

Recommended by 3 institutions including Huatai United Securities, Southwest Why selected: As the largest rail transport manufacturer in China, CSR and CNR 601299 monopolize the Chinese rolling stocks market. At present, CSR has put into mass production of EMU running at 200km per hour and below, and 300km-per-hour CEMU is being manufacturered by CSR. It is also doing R&D about EMU with the speed of 350km per hour, which will be put into use in 2010.

No. 6 China Pacific Insurance601601

Recommended by 3 institutions including Central China Securities, CICC and Haitong Securities.

Why selected: After the 2009 structural adjustment, the Group will see rapid growth and better quality in its premiums in 2010. The rising bond yields and lagging adjustment of balance cost boosted by the expected interest rate hikes will help the spreads of the Group get into the rising path in the mid and long run.

No. 7 Poly Real Estate 600048

Recommended by 3 institutions including CICC, China Minzu Securities and Golden Sun Securities.

Why selected: As the leading real estate developer in China, Poly Real Estate boasts excellent management and abundant land reserves. Besides, the Group has grown from a regional real estate developer into a national one. In 2009, its sales ranked No.1 among all its competitors and the contracted sales volume was expected to reach 45 billion Yuan, laying a solid foundation for its performance in 2010.

No. 8 Angang Steel 000898

Recommended by 2 institutions including Goldman Sachs Gaohua Securities and Central China Securities.

Why selected: In 2010, the major highlights of the Company includes the successful R&D results in silicon steel, X120 pipes and other high-end products; the integration of full-workflow steel production line; the trial period has been completed in the Bayuquan Project, which has grown into a profitable growth point; as the overseas demand is rising, the export ofboards and plates will be increased; and the rising price of iron ores in 2010 will give full play to the Company s resource advantage.

No.9 New World 600628

Recommended by 2 institutions including Central China Securities and Soochow Securities.

Why selected: The revenues mainly come from the five-star Shanghai New World Radisson Hotel which is located at Nanjing East Road in the CBD of Shanghai. During the Shanghai World Expo, it is predicted that the revenues of hotels in Shanghai will rise by 84.48%. As a result, the Company s hotel business will make greater profits in 2010.

No.10 Bailian 600631

Recommended by 2 institutions including CICC and Guolian Securities.

Why selected: As the 2010 Shanghai World Expo is approaching, the tourism and commercial retail in Shanghai will boom. Thus, the Company will make large profits. With the participation of state-owned company, the Company, as the core enterprise of Bailian Group, will probably by the major player of M&A of shopping malls of Bailian Group. Thus, its profitability and market control ability will be improved.