China Tollroad Operators (60+ pages)

Seeing Light at the End of the Tunnel: Clarity on Toll
Fee Review Is Key Catalyst in 2012

China’s tollroad sector has been perceived as a good bear market play thanks
to its earnings defensiveness and strong cash-generation capabilities.
However, the sector significantly underperformed the index and other
defensive plays in 2011 mainly due to concerns on potential toll rate cuts. As
the Review is expected to conclude in mid-2012 with limited impact on overall
toll structure, we are seeing the light at the end of the tunnel and expect a
sector re-rating in 2012.