China Property Credit -
A pivotal change in home buyers' price expectation

Table of Contents
Trip Notes ......................................................... Page 02
Bond Valuation ................................................. Page 10

Market sentiment waned, exerting pricing pressure
Last week, we visited Shanghai and other tier-2/3 cities along the Yangtze River
Delta region. We also had management meetings with several Chinese property
bond issuers. This time, we felt that the market is cooling down with a pivotal
change in home buyers’ sentiment. Recent high-profile property protests, ignited
by a sharp cut in prices of several projects, have dampened price expectation.