07 September 2009

Asian Daily

DISCLOSURE APPENDIX CONTAINS ANALYST CERTIFICATIONS AND THE STATUS OF NON-US ANALYSTS. FOR OTHER

IMPORTANT DISCLOSURES, visit www.credit-suisse.com/ researchdisclosures or call +1 (877) 291-2683.

does and seeks to do business with companies covered in its research reports. As a result, 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.U.S. Disclosure: Credit Suisse

China Small-Cap Sector -----------------------------------------------------Maintain OVERWEIGHT

Takeaways from the China Emerging Corporate Days: Biosensors, China Automation and China Hongxing

Kenny Lau, CFA / Research Analyst / 852 2101 7914 / kenny.lau@credit-suisse.com

Adrian Chan / Research Analyst / 852 2101 6469 / adrian.c.chan@credit-suisse.com

Jinsong Du / Research Analyst / 852 2101 6589 / jinsong.du@credit-suisse.com

Catherine Lim / Research Analyst / 852 2101 6323 / catherine.lim@credit-suisse.com

●

the Credit Suisse China Emerging Corporate Days in Hong Kong

and Singapore on 2-3 September 2009. We present the key

takeaways.Biosensors, China Automation and China Hongxing participated in

●

China, Korea and Taiwan. The approvals are crucial as the

company cannot be in full production without them.Biosensors is working to get regulatory approvals in France,

●

system businesses to continue growing at 40-50% and 20-30%

per annum, respectively, on rising demand in the next few years.

It expects to win a few contracts, with confidence in the contract

for Beijing metro, which will be announced in 2H09.China Automation expects its railway signalling and petrochemical

●

and inventory issues. It plans to improve the situation by focusing

on same-store sales. One of the strategies is to increase the store

space (for fitting rooms) to cater for higher sales of sports apparel,

which carry higher margins.China Hongxing expects a lacklustre 2009, due to weak demand

Picking hidden jewels in China

To help investors understand the rising Chinese TMT companies

better, we invited Biosensors, China Automation, China Hongxing,

Dynasty Fine Wines, E-House, Geely, Guangzhou Investment,

Skyworth, TCL Multimedia and Wumart, each with a unique and

interesting story, to participate in the Credit Suisse China Emerging

Corporate Days. The invited emerging companies discussed their

business prospects with investors in Hong Kong and Singapore on 2-3

September 2009.

Biosensors

Biosensors manufactures medical devices and produces drug-eluting

stents. It is entering the Chinese stent market via JW Medical (not

listed). With the modified selling agreement, Terumo (4543, ¥4,860,

not rated) is exclusively selling Biosensors’ products in Japan after

paying the one-time payment of US$40 mn to the company to lower

the sales rebate. Management revealed that it is working to get

regulatory approvals in France, China, Korea and Taiwan. The

approvals are crucial as the company cannot be in full production

without them. Although most of the capex has been spent, it is

considering raising funds (not necessarily from the equity market) to

repay the US$48 mn convertible bond maturing in November 2009.

(

kenny.lau@credit-suisse.com; Jinsong Du/Research Analyst/852

2101 6589 / jinsong.du@credit-suisse.com)Kenny Lau, CFA/Research Analyst/852 2101 7914/

China Automation

China Automation is the largest provider of safety and critical control

systems in China, specialising in the petrochemical and railway

signalling industries. The company’s business development hinges on

the fast-growing Chinese railway industry. It foresees rising

penetration given growing consciousness for railway safety.

Management expects the railway signalling business to continue

growing at 40-50% per annum in the next few years. Management

expects city metro to offer exciting growth opportunities. Contract

sizes for metro-line stations of Rmb200-350 mn are much larger than

those for nationwide railway projects. Over 30 cities are planning to

construct 85 city metro lines. Management expects the company to

win a few contracts, with confidence in the contract for Beijing metro,

which will be announced in 2H09. As the demand for safety and

critical control system from the petrochemical industry is increasing

rapidly, China Automation expects its petrochemical system business

to continue growing at 20-30% per annum in the next few years.

(

kenny.lau@credit-suisse.com)Kenny Lau, CFA / Research Analyst / 852 2101 7914 /

China Hongxing

China Hongxing is a leading domestic sports brand in China, selling a

wide range of sports footwear, apparel and accessories under its

brand

demand and inventory issues. The company plans to improve the

situation by focusing on same-store sales. One of the strategies is to

increase the store space (for fitting rooms) to cater for higher sales of

sports apparel, which carry higher margins. Furthermore, Hongxing

aims to expand its network and have 4,100 outlets by 2009 (+8%),

4,600 by 2010 (+12%) and 5,400 by 2011 (+17%). In the long term,

management targets to have advertising and promotion-to-sales ratio

reduced to within 20% while sports apparel to account for 60% of

sales. Management remains optimistic that Hongxing will continue to

gain market share. (

6323 / catherine.lim@credit-suisse.com; Adrian Chan / Research

Analyst / 852 2101 6469 / adrian.c.chan@credit-suisse.com)Erke. Management expects a lacklustre 2009, due to weakCatherine Lim / Research Analyst / 852 2101

Figure 1: Participating corporates in the Credit Suisse China Emerging Corporate Days on 2-3 September 2009

Mkt cap Avg. D t/o CS Price Year Up/dn EPS EPS grth (%) P/E (x) Div. yld ROE P/B

Company Ticker (US$ mn) (US$ mn) Rating Local Target T (%) T+1 T+2 T+1 T+2 T+1 T+2 (%) T+1 (%) (x)

Biosensors BIG SP 435 3.6 O 0.59 0.80 03/09 36 0.0 0.0 n.a 8 32.8 30.5 - 9.1 —

China Automation 569 HK 510 1.1 NR 4.00 n.a. 12/08 n.a. 0.2 0.3 29 36 16.0 11.8 1.1 20.3 3.4

China Hongxing CHHS SP 477 7.5 N 0.25 0.17 12/08 (33) 0.2 0.2 4 9 7.0 6.4 2.9 10.4 0.7

Note: O = OUTPERFORM, N = NEUTRAL, U = UNDERPERFORM

* For those stocks that are not rated, I/B/E/S consensus forecasts have been used

Source: Company data, Credit Suisse estimates

07 September 2009

Asian Daily

- 2 of 4 -

Companies Mentioned (Price as of 04 Sep 09)

Biosensors International Group Ltd. (BIOS.SI, S$0.59, OUTPERFORM [V], TP S$0.80)

China Hongxing Sports Limited (CHXS.SI, S$0.25, NEUTRAL [V], TP S$0.17)

Terumo (4543, ¥4,860, NOT RATED)

E-House China Holdings Ltd (EJ.N, $19.48, RESTRICTED [V])

Geely Automobile (0175.HK, HK$1.90, NOT RATED)

Guangzhou Investment Company Limited (0123.HK, HK$1.51, NOT RATED)

Skyworth Digital Hldgs Ltd (0751.HK, HK$2.78, NOT RATED)

TCL Multimedia Technology Holdings Ltd (1070.HK, HK$3.75, NOT RATED)

Wumart Stores (8277.HK, HK$12.20, RESTRICTED [V])

China Automation (0569.HK, HK$4.00, NOT RATED)

Dynasty Fine Wines (0828.HK, HK$1.67, NOT RATED)

Disclosure Appendix

Important Global Disclosures

Kenny Lau, CFA, Adrian Chan, Jinsong Du & Catherine Lim each certify, with respect to the companies or securities that he or she analyzes,

that (1) the views expressed in this report accurately reflect his or her personal views about all of the subject companies and securities and (2)

no part of his or her compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this

report.

The analyst(s) responsible for preparing this research report received compensation that is based upon various factors including Credit Suisse's

total revenues, a portion of which are generated by Credit Suisse's investment banking activities.

Analysts’ stock ratings are defined as follows:

Outperform (O):

perceived risk) over the next 12 months.The stock’s total return is expected to outperform the relevant benchmark* by at least 10-15% (or more, depending on

Neutral (N): The stock’s total return is expected to be in line with the relevant benchmark* (range of ±10-15%) over the next 12 months.

Underperform (U): The stock’s total return is expected to underperform the relevant benchmark* by 10-15% or more over the next 12 months.

*Relevant benchmark by region: As of 29

total return potential to its current share price and (2) the relative attractiveness of a stock’s total return potential within an analyst’s coverage

universe**, with Outperforms representing the most attractive, Neutrals the less attractive, and Underperforms the least attractive investment

opportunities. Some U.S. and Canadian ratings may fall outside the absolute total return ranges defined above, depending on market conditions

and industry factors. For Latin American, Japanese, and non-Japan Asia stocks, ratings are based on a stock’s total return relative to the

average total return of the relevant country or regional benchmark; for European stocks, ratings are based on a stock’s total return relative to the

analyst's coverage universe**. For Australian and New Zealand stocks a 22% and a 12% threshold replace the 10-15% level in the Outperform

and Underperform stock rating definitions, respectively, subject to analysts’ perceived risk. The 22% and 12% thresholds replace the +10-15%

and -10-15% levels in the Neutral stock rating definition, respectively, subject to analysts’ perceived risk.

**An analyst's coverage universe consists of all companies covered by the analyst within the relevant sector.th May 2009, Australia, New Zealand, U.S. and Canadian ratings are based on (1) a stock’s absolute

Restricted (R):

including an investment recommendation, during the course of Credit Suisse's engagement in an investment banking transaction and in certain

other circumstances.In certain circumstances, Credit Suisse policy and/or applicable law and regulations preclude certain types of communications,

Volatility Indicator [V]:

24 months or the analyst expects significant volatility going forward.A stock is defined as volatile if the stock price has moved up or down by 20% or more in a month in at least 8 of the past

Analysts’ coverage universe weightings are distinct from analysts’ stock ratings and are based on the

expected performance of an analyst’s coverage universe* versus the relevant broad market benchmark**:

Overweight: Industry expected to outperform the relevant broad market benchmark over the next 12 months.

Market Weight: Industry expected to perform in-line with the relevant broad market benchmark over the next 12 months.

Underweight: Industry expected to underperform the relevant broad market benchmark over the next 12 months.

*An analyst’s coverage universe consists of all companies covered by the analyst within the relevant sector.

**The broad market benchmark is based on the expected return of the local market index (e.g., the S&P 500 in the U.S.) over the next 12

months.

Credit Suisse’s distribution of stock ratings (and banking clients) is:

Global Ratings Distribution

Outperform/Buy* 37% (57% banking clients)

Neutral/Hold* 43% (59% banking clients)

Underperform/Sell* 18% (49% banking clients)

Restricted 2%

*For purposes of the NYSE and NASD ratings distribution disclosure requirements, our stock ratings of Outperform, Neutral, and Underperform most closely correspond to Buy,

Hold, and Sell, respectively; however, the meanings are not the same, as our stock ratings are determined on a relative basis. (Please refer to definitions above.) An investor's

decision to buy or sell a security should be based on investment objectives, current holdings, and other individual factors.

Credit Suisse’s policy is to update research reports as it deems appropriate, based on developments with the subject company, the sector or the

market that may have a material impact on the research views or opinions stated herein.

07 September 2009

Asian Daily

- 3 of 4 -

Credit Suisse's policy is only to publish investment research that is impartial, independent, clear, fair and not misleading. For more detail please refer to

Credit Suisse's Policies for Managing Conflicts of Interest in connection with Investment Research:

http://www.csfb.com/research-and-analytics/disclaimer/managing_conflicts_disclaimer.html

Credit Suisse does not provide any tax advice. Any statement herein regarding any US federal tax is not intended or written to be used, and

cannot be used, by any taxpayer for the purposes of avoiding any penalties.

Important Regional Disclosures

Restrictions on certain Canadian securities are indicated by the following abbreviations: NVS--Non-Voting shares; RVS--Restricted Voting

Shares; SVS--Subordinate Voting Shares.

Individuals receiving this report from a Canadian investment dealer that is not affiliated with Credit Suisse should be advised that this report may

not contain regulatory disclosures the non-affiliated Canadian investment dealer would be required to make if this were its own report.

For Credit Suisse Securities (Canada), Inc.'s policies and procedures regarding the dissemination of equity research, please visit

http://www.csfb.com/legal_terms/canada_research_policy.shtml.

As of the date of this report, Credit Suisse acts as a market maker or liquidity provider in the equities securities that are the subject of this report.

Principal is not guaranteed in the case of equities because equity prices are variable.

Commission is the commission rate or the amount agreed with a customer when setting up an account or at anytime after that.

To the extent this is a report authored in whole or in part by a non-U.S. analyst and is made available in the U.S., the following are important

disclosures regarding any non-U.S. analyst contributors:

The non-U.S. research analysts listed below (if any) are not registered/qualified as research analysts with FINRA. The non-U.S. research

analysts listed below may not be associated persons of CSSU and therefore may not be subject to the NASD Rule 2711 and NYSE Rule 472

restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

• Kenny Lau, CFA, non-U.S. analyst, is a research analyst employed by Credit Suisse (Hong Kong) Limited.

• Adrian Chan, non-U.S. analyst, is a research analyst employed by Credit Suisse (Hong Kong) Limited.

• Jinsong Du, non-U.S. analyst, is a research analyst employed by Credit Suisse (Hong Kong) Limited.

• Catherine Lim, non-U.S. analyst, is a research analyst employed by Credit Suisse (Hong Kong) Limited.

For Credit Suisse disclosure information on other companies mentioned in this report, please visit the website at www.creditsuisse.

com/researchdisclosures or call +1 (877) 291-2683.

Disclaimers continue on next page.

07 September 2009

Asian Daily

- 4 of 4 -

Disclaimers

This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other

jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject Credit Suisse, the Swiss bank, or its subsidiaries

or its affiliates (“CS”) to any registration or licensing requirement within such jurisdiction. All material presented in this report, unless specifically indicated otherwise, is under

copyright to CS. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior

express written permission of CS. All trademarks, service marks and logos used in this report are trademarks or service marks or registered trademarks or service marks of CS

or its affiliates.

The information, tools and material presented in this report are provided to you for information purposes only and are not to be used or considered as an offer or the solicitation

of an offer to sell or to buy or subscribe for securities or other financial instruments. CS may not have taken any steps to ensure that the securities referred to in this report are

suitable for any particular investor. CS will not treat recipients as its customers by virtue of their receiving the report. The investments or services contained or referred to in this

report may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about such investments or investment services.

Nothing in this report constitutes investment, legal, accounting or tax advice or a representation that any investment or strategy is suitable or appropriate to your individual

circumstances or otherwise constitutes a personal recommendation to you. CS does not offer advice on the tax consequences of investment and you are advised to contact an

independent tax adviser. Please note in particular that the bases and levels of taxation may change.

CS believes the information and opinions in the Disclosure Appendix of this report are accurate and complete. Information and opinions presented in the other sections of the

report were obtained or derived from sources CS believes are reliable, but CS makes no representations as to their accuracy or completeness. Additional information is

available upon request. CS accepts no liability for loss arising from the use of the material presented in this report, except that this exclusion of liability does not apply to the

extent that liability arises under specific statutes or regulations applicable to CS. This report is not to be relied upon in substitution for the exercise of independent judgment. CS

may have issued, and may in the future issue, a trading call regarding this security. Trading calls are short term trading opportunities based on market events and catalysts,

while stock ratings reflect investment recommendations based on expected total return over a 12-month period as defined in the disclosure section. Because trading calls and

stock ratings reflect different assumptions and analytical methods, trading calls may differ directionally from the stock rating. In addition, CS may have issued, and may in the

future issue, other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. Those reports reflect the different

assumptions, views and analytical methods of the analysts who prepared them and CS is under no obligation to ensure that such other reports are brought to the attention of

any recipient of this report. CS is involved in many businesses that relate to companies mentioned in this report. These businesses include specialized trading, risk arbitrage,

market making, and other proprietary trading.

Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future

performance. Information, opinions and estimates contained in this report reflect a judgement at its original date of publication by CS and are subject to change without notice.

The price, value of and income from any of the securities or financial instruments mentioned in this report can fall as well as rise. The value of securities and financial

instruments is subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of such securities or financial instruments. Investors in

securities such as ADR’s, the values of which are influenced by currency volatility, effectively assume this risk.

Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable of understanding

and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and political factors (including, but not limited

to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility, and the credit quality of any issuer or reference issuer. Any investor

interested in purchasing a structured product should conduct their own investigation and analysis of the product and consult with their own professional advisers as to the risks

involved in making such a purchase.

Some investments discussed in this report have a high level of volatility. High volatility investments may experience sudden and large falls in their value causing losses when

that investment is realised. Those losses may equal your original investment. Indeed, in the case of some investments the potential losses may exceed the amount of initial

investment, in such circumstances you may be required to pay more money to support those losses. Income yields from investments may fluctuate and, in consequence, initial

capital paid to make the investment may be used as part of that income yield. Some investments may not be readily realisable and it may be difficult to sell or realise those

investments, similarly it may prove difficult for you to obtain reliable information about the value, or risks, to which such an investment is exposed.

This report may provide the addresses of, or contain hyperlinks to, websites. Except to the extent to which the report refers to website material of CS, CS has not reviewed the

linked site and takes no responsibility for the content contained therein. Such address or hyperlink (including addresses or hyperlinks to CS’s own website material) is provided

solely for your convenience and information and the content of the linked site does not in any way form part of this document. Accessing such website or following such link

through this report or CS’s website shall be at your own risk.

This report is issued and distributed in Europe (except Switzerland) by Credit Suisse Securities (Europe) Limited, One Cabot Square, London E14 4QJ, England, which is

regulated in the United Kingdom by The Financial Services Authority (“FSA”). This report is being distributed in Germany by Credit Suisse Securities (Europe) Limited

Niederlassung Frankfurt am Main regulated by the Bundesanstalt fuer Finanzdienstleistungsaufsicht ("BaFin"). This report is being distributed in the United States by Credit

Suisse Securities (USA) LLC ; in Switzerland by Credit Suisse; in Canada by Credit Suisse Securities (Canada), Inc..; in Brazil by Banco de Investimentos Credit Suisse (Brasil)

S.A.; in Japan by Credit Suisse Securities (Japan) Limited, Financial Instrument Firm, Director-General of Kanto Local Finance Bureau (Kinsho) No. 66, a member of Japan

Securities Dealers Association, The Financial Futures Association of Japan; elsewhere in Asia/Pacific by whichever of the following is the appropriately authorised entity in the

relevant jurisdiction: Credit Suisse (Hong Kong) Limited, Credit Suisse Equities (Australia) Limited , Credit Suisse Securities (Thailand) Limited, Credit Suisse Securities

(Malaysia) Sdn Bhd, Credit Suisse Singapore Branch, Credit Suisse Securities (India) Private Limited, Credit Suisse Securities (Europe) Limited, Seoul Branch, Credit Suisse

Taipei Branch, PT Credit Suisse Securities Indonesia, and elsewhere in the world by the relevant authorised affiliate of the above. Research on Taiwanese securities produced

by Credit Suisse Taipei Branch has been prepared by a registered Senior Business Person. Research provided to residents of Malaysia is authorised by the Head of Research

for Credit Suisse Securities (Malaysia) Sdn. Bhd., to whom they should direct any queries on +603 2723 2020.

In jurisdictions where CS is not already registered or licensed to trade in securities, transactions will only be effected in accordance with applicable securities legislation, which

will vary from jurisdiction to jurisdiction and may require that the trade be made in accordance with applicable exemptions from registration or licensing requirements. Non-U.S.

customers wishing to effect a transaction should contact a CS entity in their local jurisdiction unless governing law permits otherwise. U.S. customers wishing to effect a

transaction should do so only by contacting a representative at Credit Suisse Securities (USA) LLC in the U.S.

Please note that this report was originally prepared and issued by CS for distribution to their market professional and institutional investor customers. Recipients who are not

market professional or institutional investor customers of CS should seek the advice of their independent financial advisor prior to taking any investment decision based on this

report or for any necessary explanation of its contents. This research may relate to investments or services of a person outside of the UK or to other matters which are not

regulated by the FSA or in respect of which the protections of the FSA for private customers and/or the UK compensation scheme may not be available, and further details as to

where this may be the case are available upon request in respect of this report.

Any Nielsen Media Research material contained in this report represents Nielsen Media Research's estimates and does not represent facts. NMR has neither reviewed nor

approved this report and/or any of the statements made herein.

If this report is being distributed by a financial institution other than Credit Suisse, or its affiliates, that financial institution is solely responsible for distribution. Clients of that

institution should contact that institution to effect a transaction in the securities mentioned in this report or require further information. This report does not constitute investment

advice by Credit Suisse to the clients of the distributing financial institution, and neither Credit Suisse, its affiliates, and their respective officers, directors and employees accept

any liability whatsoever for any direct or consequential loss arising from their use of this report or its content.

Copyright 2009 CREDIT SUISSE and/or its affiliates. All rights reserved.

ASIA/PACIFIC: +852 2101-6000 EUROPE: +44 (20) 7888-8888 UNITED STATES OF AMERICA: +1 (212) 325-2000

China to make a record 12 million vehicles in 2009 (fr:xinhua)

China is expected to manufacture a record 12 million vehicles in 2009, an official with the country's top economic planning agency said on 5th sep 2009.

Chinese domestic auto makers were expected to produce and sell more than eight million vehicles in the first eight months this year, said chen bin, director of the department of industry under the national development and reform commission (NDRC).

The government's stimulus plan for the auto industry formulated in 2009 had achieved success in terms of boosting domestic demand and ensuring industry's growth, he said at the on-gong 2009 international forum on chinese automotive industry development held in tianjin.

chinese car mkt will hit ten million units by the end of 2009.

electric cars are new business and new development for china and USA. ( warren buffett bought BYD shares for good)

pick up the right chips by doing your homework.