American Stock Market Slightly Advanced; while Bank Shares Performed Still

Weakly
January 16, 2009

Global News & Information By Global Capital Research Group

Major Global Indexes

Dow Jones Index advanced 12.35 points or 0.15% at
Closing Margin (%) 8212.49 points as of closing.
Dow Jones 8212.49 0.15 On Thursday, American stock market rebounded after
S&P 500 843.74 0.13 touching the bottom; Dow Jones Index advanced 12.35
UK:UKX 4121.11 -1.42 points or 0.15% at 8212.49 points; S&P 500 Index
Nikkei 225 8023.31 -4.92 mounted by 1.12 points or 0.13% at 843.74 points, while
Hang Seng 13242.96 -3.37 NASDAQ Index went up by 22.20 points or 1.49% to
1511.84 points.
Major Price Indicator
Closing Margin (%) European Central Bank cut rate again by 50 BP.
WTI Crude Oil 35.4 -5.04 For increasing deflation risks and deteriorated economy
COMEX Gold 807.3 -0.19 in Euro zone, European Central Bank cut benchmark
LME Copper 3280 -0.18 interest rate again by 50 BP to 2%, being the historic
LME Aluminum 1480 -1.00 low. European Central Bank had cut rate by 225 BP
BDI Index 908 -1.30 since October 2008. Jean-Claude Trichet had stated
before that decline of benchmark interest rate in Euro

Hong Kong Industries zone was limited and held his tongue for any sign of the
rate cut; however, with descending export, sluggish
Closing Margin (%)
consumption and shrinking credit, economy of the 16
Composite
1245.64 -4.80 members in Euro zone slipped faster than expectation,
Enterprise
thus European Central Bank had to cut rate again due to
Energy 6669.89 -4.73
ill-favored economic statistics. Jean-Claude Trichet
Service 1824.01 -3.83
stated that current inflation in Europe had been balanced
Information
783.45 -3.40 in an extensive sense, which suggested his
Technology
helplessness for this rate cut.
Telecom
1445.42 -3.37
Service
Manufacturing indexes of Philadelphia Federal
Reserve and New York Federal Reserve were better
Performance in Recent 5 Days
than expectation.
In January, Manufacturing Index of Philadelphia Federal
Reserve was predicted at -35, actually -24.3, and it was
-32.9 last time; Manufacturing Index of New York
Federal Reserve was forecasted at -25.0, actually -22.2,
and December correction was -27.88. These two
indexes both ascended compared with those of the
--- Hang Seng Index ---- SSE Composite Index
previous month and performed better than expectation,
which indicated American manufacturing shrinkage was getting better, yet sub-zero indexes
showed that American manufacturing was still shrinking.

Hedge fund redemption set the record in December 2008.

As reported in Financial Times, hedge fund redemption set the record in December 2008. It
accounted for 10% of the total equity; large-scale funds withdrawal by investors had lasted for
consecutive four months and net outflow of hedge fund reached ~USD200bn in 2008. Due to
the redemption, fund managers had to dump stocks for emergency, thus average return of
hedge fund lost 21.7% in 2008, being the worst in recent 10 years.

Hang Seng Index plunged 461.65 points or 3.37% at 13242.96 points.

On Thursday, Hong Kong stock market opened low and took on the trend later on, while the
decline was narrowed during the second session. Hang Seng Index plunged 461.65 points or
3.37% at 13242.96 points, while Hang Seng China Enterprises Index slumped by 176.68
points or 2.45% at 7042.36 points.

Finance sub-index outperformed Hang Seng Index.

Finance sub-index outperformed Hang Seng Index and Chinese-funded financial shares
strongly performed relatively. HSBC Holdings PLC (0005. HK) plummeted by 5.71% for
consecutive two days after the target price down-regulation by Morgan Stanley; this was a
relatively low position in recent 10 years. Bank of China (601988) and Ping An Insurance
(Group) Co of China (601318) surged by 2.63% and 2.25% respectively against the market
trend; China Construction Bank (601939), PICC Property & Casualty (2328.HK), Industrial and
Commercial Bank of China (601398), Bank of Communications (601328), China Life
Insurance (601628) and China CITIC Bank (601998) declined by no more than 3%, while
China Merchants Bank (600036) got frustrated at 4.79%.

Steel shares led the jump.

Promotion plan on auto & steel industry by the State Council provided impetus for the surge of
steel shares, thus Angang Steel Company (000898) and Ma’anshan Iron & Steel Company
(600808) both enjoyed over 4% growth.
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Consulting (“TX”) from sources that it believes to be reliable, but no presentation or guarantee is made or given by TX
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Investment Rating System

Performance of stock or sector relative to TX Free-float Index over next 6 months after research publications

Rating Remark
1 Buy Relative performance over TX Free-float
Index >15%

2 Overweight Relative performance over TX Free-float Index 5% ~

15%

3 Neutral Relative performance over TX Free-float Index -5%

~ 5%

4 Underweight Relative performance over TX Free-float Index -5%

~ -15%

5 Sell Relative performance over TX Free-float Index

<-15%

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