Chinese Outbound Investments into US (2004-2012)

Co-Authors: Petter N. Kolm, Corant Institute, New York University, and the Heimdall Group, LLC New York, United States Henry T. Tillman, Chairman and Chief Executive Officer, Grisons Peak LLP, London, United Kingdom
(Views set forth in this document are the views of the authors and not necessarily of their respective institutions)

Overview
This study analyses Chinese outbound investment into the US since 2004, the year when the Chinese made their initial major acquisition of a US owned organisation. The empirical data is from 2004-2011 inclusive, and extends across M&A/equity investments as well as major Bank Loans and major Trade Agreements. The data has been assembled solely from public sources, and in many cases, from the Grisons Peak China Outbound database. In this study, we posit that there are three distinctive stages of Chinese outbound investments into the US: 2004-2006 Initial Phase 2007-2009 Financial Services brands via Equity/Funds Investments Post Financial Crisis A Shift to Trade Agreements

2004-2006 Initial Phase

In December 2004, the Chinese electronics company Lenovo (a major Chinese State Owned Enterprise (SOE)), acquired IBMs personal computer division for USD 1.75 billion. This transaction represented Chinas first major acquisition of a US operation. The acquisition was reviewed by the Committee on Foreign Investment in the US (CFIUS), which permitted the acquisition. The only other transaction over USD 100 million was Sinopecs first US acquisition.

Table I Transaction Volume (1) (2004-2011)

Type of Investment M&A/ Equity Loan Agreements Trade Agreements Total 2004 13 0 0 13 2005 6 0 0 6 2006 14 0 0 14 2007 23 0 0 23 2008 31 0 1 32 2009 36 1 2 39 2010 63 2 6 71 2011 64 1 7 72 Total 250 4 16 270

In 2005, China attempted two additional major US acquisitions. Haier, Chinas largest appliance group, attempted the acquisition of Maytag for USD 1.28 billion, and CNOOC made an unsolicited offer to acquire Unocal for USD 18.5 billion. Neither transaction was successful. Haier was outbid by Whirlpool, which successfully offered USD 1.36 billion for Maytag. The US Government blocked CNOOCs bid for Unocal, which it subsequently withdrew. Also in 2005 there were six smaller acquisitions completed, including two advisory firms and a small automotive parts company totalling under USD 100 million aggregate amount (representing a 54% decline in volume from 2004).

Notes/Sources: (1) Grisons Peak Research, Mergermarkets, Reuters, Bloomberg

Grisons Peak 2012. All rights reserved. Reproduction by permission only of the Author of this document, Grisons Peak Copyright and Intellectual Property Right Ownership: This document and all Information therein, contains material owned by either Grisons Peak or its Information Providers which is protected under copyright, trademark and other intellectual property laws. Neither this report nor any part of it may be reproduced, stored in a retrieval place or transmitted by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of Grisons Peak. Grisons Peak and its Information Providers, as applicable, own the copyright to all Information and works of authorship. All trademarks, service marks, and logos used on the document are the trademarks, service marks, or logos of Grisons Peak or its Information Providers, as applicable.

Electronic copy available at: http://ssrn.com/abstract=2037732

2006 saw 14 successful transactions, all in M&A/equity. These were completed across industries and led by industrial products. None of these were over USD 75 million in value. Of the eight, where transaction values were published, the average transaction size was just about USD 30 million.

Table II Aggregate Amount (2) (2004-2011)

Type of Investment
(USD Billion)

2004 2.04 0.00 0.00 2.04

2005 0.07 0.00 0.00 0.07

2006 0.24 0.00 0.00 0.24

2007 9.63 0.00 0.00 9.63

2008 4.53 0.00 4.50 9.03

2009 10.03 na 1.80 11.83

2010 7.57 0.68 8.99 17.25

2011 6.40 0.66 66.49 73.55

Total 40.51 1.34 81.78 123.63

M&A/ Equity Loan Agreements Trade Agreements Total

2007-2009 Financial Services brands via Equity/Funds Investments

In 2007 M&A/equity volumes increased to 23 completed transactions, a 64% increase. The aggregate amount soared to over USD 9 billion, with the two largest transactions representing USD 8 billion (89% of the total aggregate amount). There were four transactions in financial services (including the three largest this year), and four in technology. The rest were scattered across other industries. M&A/equity volumes increased by 35% in 2008, while aggregate M&A/equity amount declined by 53%. Again this year, the two largest M&A/equity deals were in financial services. Together, they represented 73% of the aggregate amount invested. Additionally in 2008, there was the first major Trade Agreement, focusing on soybean purchases. The aggregate amount remained relatively flat.

Table III China into US Financial Services (3) (2007-2009)

Year 2007 2007 2007 2008 2008 2008 2009 2009 2009 2009 China CIC CIC China Minsheng CIC CIC SAFE CIC CIC CIC CIC US Target Morgan Stanley Blackstone UCBH JC Flowers & Co Blackstone TPG Morgan Stanley Oaktree Capital Morgan Stanley Blackstone Stake/Size (USD) CIC acquired 9.9% in Morgan Stanley for USD 5bn CIC agreed to acquire a 10% stake for USD 3bn China Minsheng Banking Group agreed to acquire an ownership interest in UCBH for USD 125.6m CIC agreed to provide an estimated 20% of the funding for a new USD 4bn fund with J.C. Flowers & Co. Blackstone and CIC agreed to increase CIC's holding in Blackstone for USD 238m SAFE agreed to invest USD 2.5bn into TPG CIC agreed to top up its stake in Morgan Stanley for USD 1.23bn after being diluted to about 7.68% by Mitsubishi UFJ CIC committed to invest about USD 1bn with Oaktree Capital Management LP CIC committed USD 800m in a USD 6bn global real estate fund managed by Morgan Stanley CIC invested USD 500m in Blackstone's fund-of-funds unit

Notes/Sources: (2) Grisons Peak Research, Mergermarkets, Reuters, Bloomberg (3) Grisons Peak Research, Mergermarkets, Reuters, Bloomberg, Grisons Peak estimates

Grisons Peak 2012. All rights reserved. Reproduction by permission only of the Author of this document, Grisons Peak Copyright and Intellectual Property Right Ownership: This document and all Information therein, contains material owned by either Grisons Peak or its Information Providers which is protected under copyright, trademark and other intellectual property laws. Neither this report nor any part of it may be reproduced, stored in a retrieval place or transmitted by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of Grisons Peak. Grisons Peak and its Information Providers, as applicable, own the copyright to all Information and works of authorship. All trademarks, service marks, and logos used on the document are the trademarks, service marks, or logos of Grisons Peak or its Information Providers, as applicable.

Electronic copy available at: http://ssrn.com/abstract=2037732

As shown above, the 2007-2009 period was dominated by Chinese outbound investments into US financial services. At the time this was not really a surprise. Only ten years before, most of the major Chinese banks had far from healthy balance sheets, with weak domestic product skills and inadequate systems. As US institutions were considered to be world leaders, the Chinese believed that the US financial system could provide many of these needs. In 2007 they therefore made two major direct investments of an aggregate amount of USD 8 billion in Morgan Stanley and Blackstone. Shifting their attention to private equity funds, in 2008 the Chinese continued their focus on financial services in the US. They made major investments into funds managed by Blackstone, TPG and J.C. Flowers. Before Bear Stearns failed, there were also discussions about whether CITIC would make an investment of USD 1 billion in the company. Q3 2008 saw the beginning of the financial crisis, during which the value of many of these investments was adversely affected. Initially, CIC (via its partnership with J.C. Flowers) was planning to bid for Lehman Brothers before its failure in September 2008. In October 2008, Mitsubishi UFJ, as Japans largest bank and one of the worlds largest financial services organisations, acquired a 21% stake in Morgan Stanley. This deal was backed by the US Government. At that time, it was widely rumoured that CIC wanted to increase its stake in Morgan Stanley to 49%. This deal was not backed by the US government. Subsequently, J.C. Flowers invested in other financial services that subsequently failed, negatively affecting the returns of Chinese investment in their fund(s). TPG led a group of investors to invest USD 7 billion in Washington Mutual before its failure. Since 2009, there have been no major investments by Chinese investors in US financial services (except for a container leasing transaction). The major listed Chinese banks have proven to be excellent investments for those acquiring shares at their respective IPO prices.

Blocked Transactions
Formal government approval is required for all Chinese inbound and outbound transactions. The key government agencies in this process are the Ministry of Commerce (MOFCOM), the National Democratic Reform Commission (NDRC), and other relevant industry/sector regulators, including China Banking and Regulatory Commission (CBRC) and China Securities Regulatory Commission (CSRC). As a general principle, all foreign related M&A deals are (4) subject to approval by NDRC. In 2011, China also added a National Security Review approval process. In the early 2000s, after years of Chinese inbound investments led mostly by US corporates, major US private equity firms commenced their China inbound efforts. In October 2005, Carlyle agreed to acquire 85% of Xugong Construction, the market leader in Chinas machinery sector, for USD 375 million. The proposed transaction represented the largest acquisition by a foreign investor for a controlling stake in a leading Chinese SOE. After nearly three years of debates with various Chinese authorities, as well as numerous efforts to restructure the proposed deal, (5) Carlyle dropped its efforts during mid 2008. In 2008, Coca Cola made a USD 2.4 billion bid for Huiyan, a China based juice maker, which was rejected in 2009 by MOFCOM on the grounds of antitrust. At the time of its decision, MOFCOM was keen to point out that it had unconditionally cleared 23 of its 24 transactions, and the remaining one (InBev/Anheuser-Busch) was approved (6) subject to conditions.

Notes/Sources: (4) Clifford Chance - Client Briefing 2011 (5) Xinhua News - http://news.xinhuanet.com/english/2008-07/24/content_8760203.htm (6) Clearly Gottlieb Coca-Cola Huiyan: First Chinese Prohibition Decision under New Merger Control Rules

Grisons Peak 2012. All rights reserved. Reproduction by permission only of the Author of this document, Grisons Peak Copyright and Intellectual Property Right Ownership: This document and all Information therein, contains material owned by either Grisons Peak or its Information Providers which is protected under copyright, trademark and other intellectual property laws. Neither this report nor any part of it may be reproduced, stored in a retrieval place or transmitted by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of Grisons Peak. Grisons Peak and its Information Providers, as applicable, own the copyright to all Information and works of authorship. All trademarks, service marks, and logos used on the document are the trademarks, service marks, or logos of Grisons Peak or its Information Providers, as applicable.

The Chinese Government was not alone. Since 2007, there have been a number of inbound transactions blocked by the US Government. For example, Hauwei, a Chinese champion in telecommunications, has seen at least two of its (7) proposed US acquisitions rejected. In 2007, it proposed acquiring a 16.5% stake in 3com Corp for USD 363 million. This transaction was rejected by CFIUS. Huawei then acquired certain assets of 3 Leaf Systems for approximately (8) USD 2 million, though this transaction was rejected and ultimately unwound. In 2009 and 2010 there were two other proposed transactions which were withdrawn on grounds of national security before CFIUS or the President reviewed (9) them.

Post Financial Crisis A Shift to Trade Agreements

In light of the decreased financial returns as a result of the crisis, as well as blocked M&A/equity transactions, there have been significant shifts from the pre-crisis patterns of Chinese investments into the US. Despite the financial crisis, 2009 M&A/equity volumes increased by 16%, while the M&A/equity aggregate amount increased by 121%. The 2009 M&A/equity aggregate amount represented the peak amount over the period of this study. The Energy sector led in volume with Technology second. Overall volumes increased by 22% due to the presence of a major Loan Agreement (energy) and two major Trade Agreements. However, the aggregate amount across all types of investments was up 31%. In 2010, M&A/equity volumes leapt by 75% but the aggregate amount fell by 25%. There were only three transactions over USD 1 billion two in Energy and one in Automotive. Over 50% of the M&A/equity transactions (where values were disclosed) were under USD 50 million. However, due to two Loan Agreements and six Trade Agreements, overall volumes still increased by 82% while the aggregate amount for 2010 increased by 46%. Of the major Trade Agreements, two involved aircraft purchases and two were in Technology. The largest was another China Soybean Trade Agreement. 2011 saw a continuation of post-crisis trends. M&A/equity volumes were flat, while the aggregate amount (where data was available) fell by 15%. There were only two transactions over USD 1 billion and investment appetite fell as the year progressed. Excluding the Huawei/Symantec squeeze-out transaction, China invested less than USD 200 million in M&A/equity in the US during Q4 2011 (or less than 1% of its global outbound M&A/equity aggregate amount). Volumes across all investment types remained flat, while the aggregate amount increased by 326%, as Trade Agreements saw a huge boost during 2011. These were led by nearly USD 30 billion in aircraft purchases, USD 18 billion in energy agreements and a USD 6.7 billion soybean purchase. While many of these had been pre-agreed, they were announced in a single package during President Hu Jintaos visit to the US in January 2011. Separately in (10) October 2011, China signed a USD 4.5 billion agreement with the State of Missouri , which included USD 1.2 billion (11) in agricultural products and 3.2 billion to other manufacturers. As is clear from the above tables, China made a strategic post-crisis financial shift, from M&A/equity into major Trade Agreements. Post 2009, such Agreements represent approximately 61% of total Chinese outbound investment into the US since 2004. Outside the aircraft and energy deals, agriculture has become a key link between the two countries in terms of China outbound purchases/investments. By 2010, China imported USD 18.6 billion agricultural (12) products from the US, representing 13% of total US agricultural exports. In 2011, China surpassed Canada as the (13) largest importer of US agricultural goods.

Notes/Sources: (7) NY Times article - http://www.nytimes.com/2008/02/21/business/worldbusiness/21iht-3com.1.10258216.html?pagewanted=all (8) Mergermarkets, Bloomberg (9) Paul Hastings Newsletter, March 2011 (10) Reuters, Bloomberg (11) Columbian, Missourian, 24th October 2011 (12) China Daily, 12th February 2012 (13) China Daily, 15th February 2012

Grisons Peak 2012. All rights reserved. Reproduction by permission only of the Author of this document, Grisons Peak Copyright and Intellectual Property Right Ownership: This document and all Information therein, contains material owned by either Grisons Peak or its Information Providers which is protected under copyright, trademark and other intellectual property laws. Neither this report nor any part of it may be reproduced, stored in a retrieval place or transmitted by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of Grisons Peak. Grisons Peak and its Information Providers, as applicable, own the copyright to all Information and works of authorship. All trademarks, service marks, and logos used on the document are the trademarks, service marks, or logos of Grisons Peak or its Information Providers, as applicable.

China began to import soybeans in 1996. By 2010, China imported 54.8 million tons, making it the largest net importer , of soybeans in the world China purchased about 60% of US soybeans sold internationally in 2011 and the US was the (14),(15),(16),(17) (18) top exporter. The January 2011 transaction represented the largest purchase of US soybeans. By 2011, (19) soybeans represented Minnesotas largest export to China (tripling in value from 2007 to 2010 ). It was therefore not surprising to see two of three stops in Vice-President Xi Jinping's most recent visit to the US focused on securing future agricultural supplies (Iowa), as well as shipping to/from China/Los Angeles. In Iowa, during Vice President Xis visit, Trade Agreements totalling 12 million metric tonnes of soybeans (valued at USD 9.68 billion) (20) were signed. In addition to soybeans, Iowa is also the largest exporter of pork to China. In Los Angeles, Vice President Xi toured China Shipping Terminal at the Port of Los Angeles. Together, the port of Los Angeles and the port of Long Beach rank number one in the US in cargo tonnage and containers handled. This (21) port complex handled 36% of total trade coming to the US from China.

Conclusion
It is reasonably clear from this analysis that there have been significant shifts in Chinese investment patterns into the US over the past eight years. Its early success with the IBM PC deal was then offset by major lost or blocked transactions by major Chinese SOEs. The next phase was represented by large investments in US financial services. In hindsight, these transactions were not well timed as most were made before the start of the financial crisis and at the cyclical peak of US financial services stocks. Post-crisis M&A/equity volumes continue to increase across industries but with much smaller transaction sizes. To date in 2012, there have been approximately 25 announced M&A/equity transactions involving US based targets. Only two of these, Sinopecs acquisition of Devon Energy (USD 2.5 billion) and Beijing DQY Agricultural Technologys acquisition of Smithfield Foods (USD 1.8 billion) were over USD 1 billion. Only one of the other M&A/equity transactions where amounts were disclosed was over USD 50 million, while the majority were under USD 10 million. Seemingly closed is the window when it appeared that major Chinese SOEs would be permitted to acquire major US organisations or when major US corporates would be permitted to acquire major Chinese brands. Also the time has passed of Chinese financial groups requiring US financial services expertise. The world's two largest economies appear locked in this post crisis trend. This trend, which we do not expect to change, is likely to be related to a number of causes, none of which appear to be easily solvable during this or the next Administration in either country. However, such causes lie outside the scope of this paper. Trade Agreements, led by Energy and Agriculture, have become much more important. China has the challenge of producing 20% of the worlds grain for 20% of the global population, but with only 6.6% of the worlds water resources (22) and 9% of the worlds arable land. It is reasonable to anticipate further major agricultural agreements from US States such as Iowa and California. To date, agriculture has been centred on soybeans. However, significant increases in corn and pork agreements can also be expected due to Chinas need to continue to diversify its energy and agricultural sources.
Notes/Sources: (14) China Daily, 12th Febuary 2012 (15) Reuters, 20th January 2011 (16) US Deparment of Agriculture, 22nd February 2012 (17) China Daily, 18th Febuary 2012 (18) Reuters, 21st January 2011 (19) US Trade Reform, 28th January 2011 (20) China Daily, 15th February 2012 (21) Wall Street Journal, 17th-19th February 2012 / China Daily 18th February 2012 (22) China-Britian Focus Magazine, March 2012

Authors email addresses: Petter Kolm: http://theheimdallgroup.com Henry Tillman: henry.tillman@grisonspeak.com

Grisons Peak 2012. All rights reserved. Reproduction by permission only of the Author of this document, Grisons Peak Copyright and Intellectual Property Right Ownership: This document and all Information therein, contains material owned by either Grisons Peak or its Information Providers which is protected under copyright, trademark and other intellectual property laws. Neither this report nor any part of it may be reproduced, stored in a retrieval place or transmitted by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of Grisons Peak. Grisons Peak and its Information Providers, as applicable, own the copyright to all Information and works of authorship. All trademarks, service marks, and logos used on the document are the trademarks, service marks, or logos of Grisons Peak or its Information Providers, as applicable.

China Outbound into USA (2004)

Number of M&A/equity transactions : 13

Deal Type
JV Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition

Date Acquirer (Announcement)

12-Dec-04 12-Aug-04 28-Jul-04 12-Jul-04 07-Jul-04 21-Jun-04 07-Jun-04 23-Apr-04 19-Apr-04 06-Apr-04 08-Feb-04 03-Feb-04 13-Jan-04 TCL Corp Lenovo Group SIPP International Industries Innovation Works SINA Corp. Yasheng Group Xinhua Finance SAIF Partners China Minmetals Non-Ferrous Co Bio-Bridge Science Cayman Corp Sinopec International Petroleum Exploration and Production Henan Power Uni Core Holdings

Target
InFocus Corp IBM PC business Unical Enterprises ClearCount Medical Solutions Davidhill Capital Inc Nicholas Investment Co. Inc Mergent Inc Microdisplay Corp Sherwin Alumina Aegir Ventures First International Oil Corp Nanyang General Light Electric NA

Target Country
USA USA USA USA USA USA USA USA USA USA USA USA USA

Sector
Technology/Manufacturing Technology Telecoms Medical Internet/Media Financial Services Media (Publishing) Manufacturing Mining Financial Services Energy Energy Real Estate Total

Value Acquired % (USD m)

10.0 1,750.0 37.5 0.3 36.0 0.4 NA NA NA 0.0 153.0 34.5 13.9 2,035.6 50% 100% 100% NA NA 100% NA NA 51% 100% NA NA 100%

Merchant Banking Innovation

China Outbound into USA (2005)

Number of M&A/equity transactions : 6

Deal Type
Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition

Date (Announcement) Acquirer

01-Nov-05 20-Oct-05 15-Aug-05 14-Jul-05 20-Jun-05 13-Jun-05 Tam Tat Ming WLG Inc ASIMCO Technologies Xinhua Holdings Ltd Xinhua Finance Ltd CITIC Provident Management (Multiple Acquirers)

Target
Planet Toys Asean Logistics NVH Concepts LLC Washington Analysis Corp Taylor Rafferty Park Lane Associates

Target Country
USA USA USA USA USA USA

Sector
Consumer Transport Industrial products Media Media Consumer (Jewellery) Total

Value (USD m)
10.0 NA NA 2.7 20.0 40.0 72.7

Acquired %
100% 100% 100% 100% 100% 80%

Merchant Banking Innovation

China Outbound into USA (2006)

Number of M&A/equity transactions : 14

Deal Type
Acquisition Acquisiton Acquisition Acquisition Acquisition Acquisition Acquisition JV Acquisition Acquisition JV Acquisition Acquisition Acquisition

Date (Announcement)
05-Dec-06 01-Nov-06 28-Sep-06 13-Sep-06 06-Aug-06 12-Jul-06 05-Jul-06 30-Jun-06 20-Jun-06 19-Jun-06 11-Jun-06 02-May-06 07-Apr-06 07-Feb-06

Acquirer
Wako Logistics Group Inc (WLG Inc) CITIC Capital Holdings Ltd Sun Media Investment Holdings Ltd SZITIC Commercial Prop. Co (Multiple Acquirers) Xinhua Finance Ltd Sun Media Investment Holdings Ltd VeriSilicon Holdings Co. Ltd China Oilfield Service Ltd Wanxiang Group Corp. Shanghai Industrial Holdings Ltd (Multiple Acquirers) Wuhan Iron & Steel (Group) Corp. Lacquer Craft Manufacturing Co. Ltd Suncraft International Corp. WASU TV & Communications Holding Co. Ltd

Target
Mares-Shreve & Associates Inc MW Industries Inc. XSTV Media Inc. 3 Salt Caverns Glass, Lewis & Co. LLC Entertainment Today LSI Logic Corp. Eastern Marine Services Ltd Neapco Inc. NeoPhotonics Corp. Wire Rope Corp. Craftmaster Furniture Corp. Presto high speed steel assets Wasucom Inc.

Target Country
USA USA USA USA USA USA USA USA USA USA USA USA USA USA

Sector
Transport Consumer (Springs, Metal Stampings...) Media (TV) Mining (Salt) Financial Services Media (Publishing) Technology (Electronics) Transport (Marine) Industrial Products (Car parts) Industrial Products (Electronics) Industrial Products (Steel) Consumer (Furniture) Industrial Products (Steel) Technology (Telecommunications) Total

Value Acquired % (USD m)

NA NA 30.0 NA 45.0 NA 13.0 19.6 NA 74.0 49.0 NA 1.5 5.0 237.1 NA NA 50% NA 80% 100% 50% 51% NA NA 49% NA NA 50%

Merchant Banking Innovation

China Outbound into USA (2007)

Number of M&A/equity transactions : 23

Deal Type
Acquisition JV Acquisition Acquisition JV Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition JV Acquisition Acquisition Acquisition JV Acquisition Acquisition Acquisition Acquisition

Date (Announcement)
27-Dec-07 18-Dec-07 12-Dec-07 18-Nov-07 16-Nov-07 09-Nov-07 16-Oct-07 08-Oct-07 27-Sep-07 25-Sep-07 24-Sep-07 12-Sep-07 24-Aug-07 05-Aug-07 24-Jul-07 22-Jun-07 20-May-07 18-May-07 16-Apr-07 02-Apr-07 01-Apr-07 06-Feb-07 03-Feb-07

Acquirer
CIC Shandong Wegao Group Jiansu Jianghuai Engine Co. Spreadtrum Communications ZTE Corp SNX Organic Fertilizers Lacquer Craft Manufacturing China Minsheng Banking Corp. Singapore Petroleum Company (China) Copperweld Bimetallics LLC Wanxiang Group Co. Ltd HBM BioMed China Ltd (Multiple Acquirers) Xinhua Sports & Entertainment Wako Logistics Group Inc. LLC Chery Automobile Otter Lake Resources CIC TDF Capital / Prax Capital CCB Wanxian Group Co. Ltd Isoftstone Information Technology Group (Multiple Acquirers) China Medical Technologies hiSoft Technology International

Target
Morgan Stanley Medtronic Inc. All-Power American LLC Quorom Systems Inc. Arasor International Discus Pennsylvania House UCBH Holdings Sino-American Energy Corporation Fushi Copperweld North American coupled products business (Seller: Dana Corp) Vital Therapies Inc. Small World Television World Commerce Services LLC Arvin Meritor 238 Mineral Claims Blackstone Group LP Tang Wing Energy LLC Bank of America Corp. Automotive Components Holdings' propshaft operations Provigent Inc Fluorescent in situ hybridization business Envisage Solutions

Target Country
USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA

Sector
Financial Services Biotechnology Industrial Products Technology Technology (Displays) Chemicals (Agrochemicals) Consumer (Household) Financial Services Energy (Oil) Industrial Products (Wire Products) Industrial Products (Electronics, Automotive) Biotechnology Media (TV) Transport Automotive Mining (Uranium) Financial Services Energy (Wind) Financial Services Industrial Products (Automotive) Technology (Semiconductors) Biotechnology Technology (Computing) Total

Value (USD m)
5,000.0 NA 9.3 76.0 147.0 NA 1.7 317.0 223.0 23.0 NA 28.1 8.4 NA 8.0 NA 3,000.0 NA 616.0 NA 16.0 136.8 18.0 9,628.3

Acquired %
10% 49%/51% NA 100% 49% 50% 100% 10% 100% 100% 100% NA 70% 100% 40% NA NA NA 75.1%/24.9% 100% 100% 100% 100%

Merchant Banking Innovation

China Outbound into USA (2008)

Number of M&A/equity transactions : 31; Number of Trade Agreements : 1

Deal Type
Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition JV Acquisition Acquisition JV Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition JV Acquisition Trade Agreement

Date Acquirer (Announcement)

01-Jan-08 03-Jan-08 08-Jan-08 08-Jan-08 23-Jan-08 07-Feb-08 19-Feb-08 28-Feb-08 03-Mar-08 05-Mar-08 11-Mar-08 18-Mar-08 03-Apr-08 25-Apr-08 29-Apr-08 07-May-08 08-May-08 20-May-08 11-Jun-08 23-Jun-08 30-Jun-08 30-Sep-08 01-Oct-08 02-Oct-08 20-Oct-08 17-Nov-08 24-Nov-08 13-Dec-08 21-Dec-08 23-Dec-08 02-Aprl-98 01-Jun-08 Tencent Holdings Wuxi PharmaTech Cayman Inc Unnamed Buyer from China Magnum d'Or Resources Inc. Beijing Farthest Technology Asian American Gas Inc Lenovo Group (Multiple Acquirers) iSoftStone Information Services Suntech Power International Mustang Investment Consulting Shanghai Ltd (Multiple Acquirers) Mindray Medical International Ltd Digital China Holdings CIC Baird Capital Partners (Multiple Acquirers) Whirlpool Corp. iDSoftCapitial Group (Multiple Acquirers) Chengwei Ventures LLC (Multiple Acquirers) China Yongxin Pharma SAFE Anhui Zhongding Sealing Parts Co. Ltd COFCO Corp VanceInfo Technologies SOKO Fitness & Spa Group Inc Suntech Power Holdings Co. Ltd CIC Land Star Inc Jiaxing Winsaint Photovoltaics Co. LTd Net263 Ltd China Minsheng Banking Corp. Shandong Xinhua Medical Instruments Co. Ltd DT Capital Partners (Multiple Acquirers) China Soybean Deal Trade Agreement

Target
Outspark Inc Apptec Laboratory Services Freeport LNG Development L.P Collateral One Capital Inc. Pipline subsidiary China United Coalbed Methn Co. Ltd Sanmima SCI Akona Consulting Hoku Scientific Tiandi Energy Ltd Datascopt Corporation Patient Monitoring business EMC Corp/Massacheusetts JC Flowers & Co. Frontage Laboratories Hisense Kelon Electrical Holdings ChiLSemiconductor Corp. Strategic Polymer Services Nutradyne Group Inc TPG Capital Allied Baltic Rubber Inc Smithfield Foods Inc Wireless Info Tech Ltd Shenyan Letian Yoga Fitness EI Solutions Blackstone Mexmin Mind Technologies Inc iTalk Global Comunications UCBH Holdings Inc General Electric Co. ProGenTech Ltd USA

Target Country
USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA

Sector
Leisure (Entertainment) Medical Energy Services Transport Energy Technology (Computing) Technology (Software) Technology Services Medical Technology (Computing) Financial Services Medical Consumer (Appliances) Technology (Semiconductor) Technology (Semiconductor) Medical (Pharma) Financial Services Industrial Products (Rubber) Consumer (Foods) Technology Leisure Industrial Products (Electrical) Financial Services Mining Technology Internet Financial Services Medical Medical M&A/Equity Total Agriculture Total

Value (USD m)
11.0 162.7 68.0 NA 68.0 NA 90.0 NA 20.0 90.0 2.5 240.0 800.0 10.0 16.7 3.0 NA NA 2,500.0 4.5 139.2 1.1 NA NA 238.0 NA NA 10.0 29.9 NA 21.0 4,525.5 4,500.0 9,025.5

Acquired %
NA 100% 10% NA 100% 17% 68% 100% 14% NA 100% 50%/50% 20% NA 50%/50% NA NA 100% NA 100% 5% 100% 51% 100% 3% 100% 100% 51% 5% 51%/49% NA

Merchant Banking Innovation

China Outbound into USA (2009)

Number of M&A/equity transactions : 36; Number of Trade Agreements : 2; Number of Loan Agreements : 1

Deal Type
Acquisition Acquisition Acquisition JV Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition JV Acquisition JV Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition JV Acqusition JV Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Trade agreement Trade agreement Loan

Date (Announcement)
22-Dec-09 21-Dec-09 18-Dec-09 18-Dec-09 15-Dec-09 14-Dec-09 14-Dec-09 06-Nov-09 06-Nov-09 04-Nov-09 01-Nov-09 29-Oct-09 23-Oct-09 23-Oct-09 12-Oct-09 07-Oct-09 29-Sep-09 24-Sep-09 22-Sep-09 17-Aug-09 18-Jun-09 16-Jun-09 12-Jun-09 08-Jun-09 03-Jun-09 01-Jun-09 24-May-09 28-Apr-09 24-Apr-09 08-Apr-09 08-Apr-09 31-Mar-09 31-Mar-09 16-Mar-09 28-Jan-09 08-Jan-09 22-Nov-09 23-Sep-09 23-Sep-09

Acquirer
Unnamed Buyer from China Jiangsu Zhongnan Construction Shanghai Jin Jiang International Ltd (Multiple Acquirers) Shanghai Jin Jiang International Ltd China Heaven Creation DJSP Enterprises Inc Chardan 2008 China Acquisition Corp. China Investment Corp CIC CNOOC Anhui Zhongding Sealing Parts Co. Ltd Shenyang Power Group BGP Inc BGP Inc Shenzhen Venture Capital (Multiple Acquirers) Noah Education Holdings Ltd Baoding Tianwei Group Co Ltd CIC Heilongjiang Heilong Mining JSC Ltd Keytone Ventures (Multiple Acquirers) CIC Xinjiang Guanghui Industry Investment Group Co Shanghai Electric Group Corp Private Investor from China CIC Asia Satellite Telecommunications Holdings Ltd Private Investors from China Jiangsu Shunda Semiconductor Development Co Ltd Magnum d'Or Resources Inc Qiao Xing Mobile Communications WINCA (Hebi) Magnesium Beijing West Industries Co. Ltd CIC HE-5 Resources Corp Lenovo Group Ltd Markor International Furniture Co. Ltd China State Construction Engineering Corp. CSCEC ENN Group and China Huaneng

Target
MindUp BioResearch Division Land & Building Interstate Hotels & Resorts Inc Thayer Lodging Group White House Theatre DAL Group LLC Default Servicing Inc./David J.Stern/Professional Title and Abstract Company AES Corp/The Wind Generation Business Statoil Michigan Rubber Products Inc/ Myers Industries Inc US Renewable Energy Group / Cielo Wind Power ION Geophysical Corp ION Geophysical Corp C2 Microsystems Inc Saunders Acquisition Corp (Investment vehicle for Franklin Electronic Publishers) Hoku Corp Oak Tree Capital Agreement Black Dragon Mining Co Analogix Semiconductor Inc Blackstone Hedge fund-of-funds Consumer auto dealership business Goss International Corp Land & Building Morgan Stanley EchoStar Corp Cavaliers Operating Co. LLC Solar Enertech Corp Tire Recycling Inc/Hudson Freescale Semiconducter Timminco Corporation Delphi Corporations brakes suspension unit Morgan Stanley Real Estate Fund VII Global Trading Barter Bank Switchbox Labs Inc Schnadig Corporation NY Subway Project Altantic City Casino Construction Agreement Duke Energy Loans

Target Sector Country

USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA Medical (Therapeutics) Real Estate Leisure (Hotels) Leisure (Hotels) Leisure (Entertainment) Financial Services Diversified Energy (Electric Generation) Energy (Wind) Energy (Oil and Gas) Industrial Products (Rubber) Energy (Wind) Technology (Seismic Data Collection) Technology (Seismic Data Collection) Consumer (Retail-Home) Services (Education) Energy (Fuel Cell) Financial Services Mining (Gold) Technology (Semiconductor) Financial Services Automotive Manufacturing (Printing Commercial) Real Estate Financial Services Technology (Satellite) Leisure (Sports) Energy (Solar) Industrial Products (Rubber) Technology (Semiconducter) Mining (Magnesium) Manufacturing Real Estate Financial Services Technology (Computer) Consumer M&A/Equity Total Construction Leisure Trade Agreements Total Energy Total

Value Acquired (USD m) %

NA 139.1 295.8 1.0 3.5 64.5 146.0 1,580.9 571.0 NA 10.0 1,500.0 175.0 108.5 10.0 1.0 50.0 1,000.0 33.7 10.0 500.0 68.8 1,500.0 7.3 1,230.0 17.5 NA 1.7 NA 100.0 NA 100.0 800.0 NA NA 9.0 10,034.3 100.0 1,700.0 1,800.0 NA 11,834.3 100% 100% 100% 50% 100% 100% NA 16% 35% NA NA NA 17% 51% NA NA 60% NA 70% NA NA 100% 100% 100% 2% 50% 15% 55% 100% 100% 80% 100% NA 100% 100% NA NA NA NA

Merchant Banking Innovation

China Outbound into USA (2010) (Page 1 of 2)

Number of M&A/equity transactions : 63; Number of Trade Agreements : 6; Number of Loans Agreements : 2

Deal Type
JV JV Acquisition Acquisition Acquisition Acquisition Acquisition Acquisiton Acquisition Acquisiton Acquisition Acquisition Acquisition Acquisition Acquisiton Acquisition Acquisiton Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition JV Acquistion Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisiton Acquisition

Date Acquirer (Announcement)

29-Dec-10 27-Dec-10 23-Dec-10 23-Dec-10 14-Dec-10 09-Dec-10 07-Dec-10 07-Dec-10 06-Dec-10 06-Dec-10 30-Nov-10 29-Nov-10 28-Nov-10 25-Nov-10 24-Nov-10 18-Nov-10 02-Nov-10 14-Oct-10 11-Oct-10 24-Sep-10 21-Sep-10 21-Sep-10 20-Sep-10 15-Sep-10 27-Aug-10 24-Aug-10 24-Aug-10 11-Aug-10 20-Jul-10 19-Jul-10 08-Jul-10 07-Jul-10 02-Jul-10 24-Jun-10 24-Jun-10 21-Jun-10 14-Jun-10 08-Jun-10 04-Jun-10 04-Jun-10 02-Jun-10 01-Jun-10 Fosun Pharmaceutical Harbin Electric Soufun Holdings Guangdong Ultrapower Softwre Aviation Industry Corp of China Gobi Partners (Multiple Acquirers) Ninbo Shentong Auto Decorations Co. Ltd (Multiple Acquirers) Jushi Group Hang Zhou Great Star Industry Co. Ltd Net Dimensions GF Securities Co. Ltd 3SBio Inc China Huaneng China Guangdong Nuclear Power Holding Co. (Multiple Acquirers) Anhui Zhongling Sealing Parts Co. SAIC Motors Corporation Limited ICBC ZWCAD Software Co. CNOONC Ltd. Morningside Group Holdings Ltd (Multiple Acquirers) DDI Industrial International Isoftstone Information Technology Canon Investment Holdings Anshan Iron & Steel Shenzhen MYS Environmental Protection Shanghai Chaori Solar Energy hiSoft Technology International China Communications Construction Company AgFeed Industries Haining Megnu Group Co. Ltd The9 Pacific Century Motors NetDimensions Holdings Ltd Alibaba.com Ltd Alibaba Group CIC (Multiple Acquirers) Morningside Group Holdings Ltd (Multiple Acquirers) Shanghai Jinling Co. Ltd Yunnan Copper Industry Co. Icon Media Holdings Inc Huiheng Medical Inc China Petroleum & Chemical

Target
Chindex International Inc General Electric Training Centre of American Land & Building Teledyne 8D World Inc Fallbrook Technologies Gibson Enterprises Inc Certain Assets BP Technologies Oasis Systems Inc. Patents rights InterGen N.V Yangjiang Nuclear Plant Inoac Corp. General Motors US prime dealer services VX Corp. Cheasepeake's Eagle Ford Shale Project Cylene Pharmaceuticals Inc. Palasma Arc FlowTM Refinery Ascend Technologies Atlair Nanotechnologies Inc. Steel Development Land Use Rights Greenleaf-TNX Management Echo Lane Fried Goldman United Substantially all assets Jennifer Convertibles Inc. Aurora Feint Inc Nexteer Automotive Corp. Substantially all assets Vendio Services Inc. Vendio Services Chesapeake Bioscale Inc. Land Use Rights Certain Assets Substantially all assets Portoloa Medical Inc Hupecol

Target Sector Country

USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA Medical (Pharma) Energy Real Estate Real Estate Industrial Products Technology (Software) Technology / Manufacturing Industrial Products Manufacturing Technology (Computing) Technology (Computing) Medical Energy Energy (Nuclear) Industrial Products Automotive Financial Services Technology (Software) Energy (Oil) Medical (Pharma) Energy (Oil) Services (Consulting) Technology Industrial Products (Steel) Real Estate Technology (Semiconductors) Technology (Computing) Energy (Oil) Agriculture Consumer (Home furnishings) Leisure Automotive Technology (Software) Internet Internet Energy (Oil) Biotechnology Real Estate Industrial Products (Metal / Copper) Medical Manufacturing Energy (Oil)

Value (USD Acquired % m)

20.0 NA 46.0 7.8 186.0 4.3 39.0 NA 1.0 1.0 NA 6.3 1,232.0 NA 0.1 500.0 0.0 10.0 1,080.0 12.0 1.3 6.5 49.0 23.5 2.4 6.8 NA 125.0 16.0 17.0 4.0 450.0 NA NA 40.0 900.0 25.0 12.6 85.1 2.0 0.0 281.0 51% 51%/49% 100% 100% 100% NA NA 100% 100% 100% 100% 100% 50% 100% 100% 1% 100% 100% 33% NA 100% 100% 51% 14% 100% NA NA 100% 100% NA NA 100% 100% 100% 100% NA NA 100% 100% 100% 100%

Merchant Banking Innovation

China Outbound into USA (2010) (Page 2 of 2)

Deal Type
Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Trade agreement Trade agreement Trade agreement Trade agreement Trade agreement Trade agreement Loans Loans

Date Acquirer (Announcement)

01-Jun-10 27-May-10 27-May-10 25-May-10 18-May-10 11-May-10 01-May-10 08-Apr-10 27-Mar-10 24-Mar-10 22-Mar-10 17-Mar-10 17-Mar-10 16-Mar-10 08-Mar-10 05-Mar-10 10-Feb-10 08-Feb-10 04-Feb-10 19-Jan-10 12-Jan-10 25-Jun-10 01-Oct-10 05-May-10 26-Oct-10 26-May-10 26-Dec-10 05-Mar-10 11-Mar-10 Hangzhou Great Star Ind. Harbin Pharmaceutical Group Huiheng Medical Inc Winsway Coking Coal Holding Perfect World Co. Ltd Hopu Investment Management (Multiple Acquirers) China Aviation Industry Corporation Zhejian Hesun Pharmaceutical Co. (Multiple Acquirers) Guangdong Yihua Timber Industry Co. Ltd Shenzhen New World Group The9 China National Metal Products (Multiple Acquirers) IDG - Accel China Investors LP / SBI Venture Capital / Zero2IPO Venture (Multiple Acquirers) DDI Industrial International Zhejiang Geely Holding Group Sichuan Hanlong Group Rich State Media Enterprise (Multiple Acquirers) Alibaba.com Harbin Pharmaceutical Group Morningside Group Holdings (Multiple Acquirers) Shanda Games Ltd. Air China Air China China Xuanyuan Group ZTE Corp. Alibaba China Soybean Trade Agreement Sichuan Hanlong Group Hoku Loan from China Merchants Bank

Target
4 US tools companies Pfizer's swine vaccine business Portola Medical Inc. Peabody-Polo Resources BV Runic Games Inc Chesapeake Energy Corp. EPIC Air LLC Sagent Pharmaceuticals Inc. Land & Building Marriott Hotel Red 5 Studios Inc. Sigma International Group Inc. OriGene Technologies Inc. MagneGas TM Technology Volva Personvagnar AB General Moly Inc CBS Outdoor Beijing Ltd Auctiva Certain Assets Liquidia Technologies Inc. Mochi Media Inc. Boeing Boeing Hammer Institutes 5 US technologies Trade Agreement Schwarzenegger Emerging Enterprises Inititative Agreement US Government General Moly Inc Construction of polysilicon plant in Idaho

Target Sector Country

USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA Manufacturing Medical (Pharma) Medical Mining (Coal) Internet Energy (Oil) Transport Medical (Pharma) Real Estate Leisure Technology (Software) Automotive Medical Technology Automotive Mining (Diversified Materials) Services (Marketing) Internet Medical Chemicals Internet M&A/Equity Total Transport (Aviation) Transport (Aviation) Biotechnology Technology NA Agriculture Trade Agreements Total Mining (Diversified Materials) Technology Loans Total Total

Value (USD Acquired % m)

1.3 50.0 NA 15.0 8.4 150.0 3.5 40.0 21.5 NA 20.0 22.4 16.0 1.9 1,800.0 80.0 10.5 40.0 NA 20.0 80.0 7,573.0 1,389.0 1,100.0 500.0 3,000.0 3.0 3,000.0 8,992.0 665.0 15.0 680.0 17,245.0 100% 100% 100% 50% NA NA 100% 13% 100% NA NA NA 100% 100% 25% NA 100% 100% NA 100% NA NA NA NA NA NA NA NA

Merchant Banking Innovation

China Outbound into USA (2011) (Page 1 of 2)

Number of M&A/equity transactions : 64; Number of Trade Agreements : 7; Number of Loan Agreements : 1

Deal Type
Acquisition Acquisition Acquisition Acquisition JV Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition JV Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition JV Acquisition Acquisition Acquisition Acquisition

Date Acquirer (Announcement)

22-Dec-11 19-Dec-11 02-Dec-11 28-Nov-11 14-Nov-11 03-Nov-11 01-Nov-11 26-Oct-11 17-Oct-11 17-Oct-11 14-Oct-11 12-Oct-11 10-Oct-11 20-Sep-11 16-Sep-11 31-Aug-11 29-Aug-11 29-Aug-11 15-Aug-11 04-Aug-11 01-Aug-11 22-Jul-11 20-Jul-11 19-Jul-11 18-Jul-11 18-Jul-11 16-Jul-11 16-Jul-11 15-Jul-11 08-Jul-11 07-Jul-11 20-Jun-11 09-Jun-11 31-May-11 30-May-11 17-May-11 17-May-11 13-May-11 09-May-11 04-May-11 GSR Ventures (Multiple Acquirers) Neusoft Corp, Qiming Weichuang Venture Capital (Multiple Acquirers) Mesnac Co WI Harper Group (Multiple Acquirers) Huawei Technology Zhanjiang Guolian Aquatic Products Co Ltd Tencent Holdings Ltd Spreadtrum Communications Inc Private Investor Tsing Capital (Multiple Acquirers) WuXi PharmaTech Cayman Inc DT Capital Partners, Vangoo Investment Partners (Multiple Acquirers) Sinochem Group GSR Ventures (Multiple Acquirers) Nokia Siemens Networks Ltd (Multiple Acquirers) China Auto Parts and Accessories Capital Holding Infotech Pacific Ventures WI Harper Group (Multiple Acquirers) TFG Radiant Group (Multiple Acquirers) iSoftStone Holdings Ltd HNA Group (Multiple Acquirers) Anhui Zhongding Sealing Parts Co Ltd WestSummit Capital (Multiple Acquirers) Spreadtrum Communications Inc Monar International Inc Chatter Box Call Center Ltd China Auto Parts and Accessories Capital Holding Wuhan Humanwell Healthcare Group Co Ltd AgFeed Industries Inc hiSoft Technology International Ltd China Investment Corporation (Multiple Acquirers) New World China Ltd Spreadtrum Communications Inc Perfect World Co Ltd SOSventures (Multiple Acquirers) Shandong RealForce Enterprises Co Ltd China Investment Corporation (Multiple Acquirers) Xiamen 35.com Technology Co Ltd iD SoftCapital Group (Multiple Acquirers) Wondershare Software Co Ltd

Target
Boston-Power Inc Appconomy Inc Davian Enterprises LLC SNS Plus Symantec-Huawei Sunnyvale Seafood Corp Waddle Inc Zoom Technologies Inc Access Medical Systems Inc Sunpreme Inc Abgent Inc Prudent Energy Corp Honeywell International Inc Boston-Power Inc Skorpios Technologies Inc Andus-Leuliette LLC Tiandi Energy Ltd Quixey Inc Ascent Solar Technologies Inc Adventier Consulting Group Inc GE Sea Co Cooper Products Inc Unity Technologies Telegent Systems Inc Integrated Clinical Care Corp I1 Connect Inc Century Automotive Manufacturing Inc Puracap Pharmaceutical LLc Kansas City Sausage Co LLC Nouveon Technology Partners Inc Enogex LLC Rosewood Hotels MobilePeak Holdings Ltd Cryptic Studios Inc Play140 Inc Powin Corp Hilite International Inc Amimon Inc U-Systems Inc Spotmau Corp

Target Sector Country

USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA Industrial Components / Technology Technology (Software) Industrial Products Technology (Computing) Technology (Telecoms) Consumer (Food) Internet Technology Medical Technology / Energy Technology Energy Industrial Products Industrial Products / Technology Technology (Telecoms) Financial Services Services (Consulting) Internet Energy Services (Consulting) Shipping (Computer) Industrial Products Technology (Computing) Internet Medical Internet Industrial Products Medical (Pharma) Consumer (Food) Technology Energy (Gas) Leisure (Hospitality) Technology (Telecoms) Leisure Internet Manufacturing Automotive Technology Medical Technology (Computing)

Value (USD m)
30.0 NA 6.3 12.5 530.0 41.3 NA 2.3 NA 50.0 NA 29.5 NA 125.0 19.0 NA NA 3.8 7.4 NA 1,050.0 9.8 12.0 NA NA NA NA 15.5 NA 5.5 518.0 230.0 33.0 50.3 NA NA 154.0 5.0 6.5 NA

Acquired %
NA NA NA NA 49% NA NA 8% NA NA 100% NA 50%/50% NA NA NA NA NA NA NA 100% 100% NA NA NA NA NA 22% NA 100% NA 100% 48% 100% NA NA 25% NA NA NA

Merchant Banking Innovation

China Outbound into USA (2011) (Page 2 of 2)

Deal Type
Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition JV Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition JV JV Acquisition Acquisition Acquisition Acquisition Acquisition Trade agreement Trade agreement Trade agreement Trade agreement Trade agreement Trade agreement Trade agreement Loans

Date Acquirer (Announcement)

04-May-11 29-Apr-11 09-Apr-11 07-Apr-11 06-Apr-11 05-Apr-11 01-Apr-11 30-Mar-11 03-Mar-11 01-Mar-11 01-Mar-11 24-Feb-11 05-Feb-11 31-Jan-11 26-Jan-11 24-Jan-11 24-Jan-11 21-Jan-11 21-Jan-11 06-Jan-11 05-Jan-11 04-Jan-11 04-Jan-11 03-Jan-11 Q1 2011 Q1 2011 Q1 2011 Q1 2011 Q2 2011 Q4 2011 Q4 2011 Q4 2011 China Renaissance Capital Investment (Multiple Acquirers) Private Investor AVIC Automobile Industry Jilin Aodong Medicine Industry Groups Co Ltd SAIC Motor Corp Ltd Sino Biomed Jinchuan Steel Markor International Furniture Co Ltd Infotech Pacific Ventures, Qian Neng Fund (Multiple Acquirers) China Aviation Industry General Aircraft Less Plastics Ltd (Multiple Acquirers) GL Capital Group, Legend Capital (Multiple Acquirers) Tencent Holdings Ltd CNOOC Ltd Neo-Neon Holdings Ltd Industrial & Commercial Bank of China Sanan Optoelectronics Co Ltd AVIC Winston Global Energy LDK Solar Co Ltd Camsing Global LLC Shenzhen New World Group Co Ltd Suzhou Good-Ark Electronics Co Ltd Morningside Group Holdings Ltd (Multiple Acquirers) China Trade Agreement Air China+ Hong-Kong Airlines (HNA Group) Soybean Trade Agreement Qingdao Province Governement Shandong Nanshan Aluminum Co Ltd China/State of Missouri Trade Agreement Jiangxi Jiangli Sci-tech Co. China Banks

Target
Crown Bioscience Inc Puda Coal Inc Nexteer Automobile Inc Vital Therapies Inc SAIC USA Inc (Multiple Targets) Sitoa Corp Rigid Building Systems ART Furniture Inc Amprius Inc Cirrus Industries Inc MBA Polymers Inc Pharmaron Holding Ltd Riot Games Inc Niobrara shale project HCI Acquisition Corp Bank of East Asia USA NA/New York NY Crystal Is Inc GE Avionics business MVP RV Solar Power Inc Senator Promotional Group USA Inc Land & Building Miradia Inc Genocea Biosciences Inc US Government Boeing US Government Microsoft Corp. City of Lafayette, Indiana State of Missouri Fox Resources Inc. Duke Energy Inc. and Progress Energy Inc.

Target Sector Country

USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA Technology Energy Automotive Medical Automotive Internet Construction Consumer Industrial Components / Technology Transport (Aviation) Industrial Products Medical (Pharma) Leisure Energy Technology (Semiconductors) Financial Services Technology (Semiconductors) Transport (Aviation) Automotive Energy Consumer Real Estate Manufacturing / Technology Medical (R&D) M&A/Equity Total Transport / Energy / Agriculture Transport (Aviation) Agriculture Technology Industrial Products (Metals) Agriculture Mining (Metals) Trade Agreements Total Energy Total

Value Acquired (USD m) %

28.8 155.8 400.0 2.0 1,199.1 NA 11.0 NA 25.0 210.0 39.6 40.0 230.0 570.0 17.0 140.2 3.0 NA 310.0 33.0 NA NA 3.6 35.0 6,399.7 45,000.0 10,000.0 6,680.0 11.4 161.0 4,600.0 40.0 66,492.4 656.0 73,548.1 NA NA 51% 5% NA NA 51% NA NA NA NA NA NA NA 100% 80% 16% 50% NA 70% NA NA 100% NA NA NA NA NA NA NA NA NA

10

Merchant Banking Innovation