According to the \"Sales Rankings of Chinese Real Estate Companies for Q3
2009\" report released October 9, the results achieved by Chinese real estate
firms are altering the competitive landscape and forcing the industry
leaders to seek new approaches, in a move for survival, with focus on proper
capitalization of their efforts. New industry leader, Evergrande Real Estate
Group, has recently attracted the attention of China\'s richest man Li
Ka-shing who has agreed to invest. Sina Leju was the first media source to
announce the release of this report, part of which is as follows:

    Sales revenue rankings as per statistics from the report: RMB50bn+
(Vanke
is the only developer to achieve this sales level); RMB30-50bn (five
companies including Poly Real Estate Group and Evergrande Real Estate
Group);
RMB10-30bn (16 companies including China Resources Land and Longfor
Properties). The rankings assess state-owned and publicly traded companies
that lead in terms of land reserves, floor space under construction and
floor
space sold. The so-called \"capital+professionalism\" model has become an
important factor in trend setting in the real estate market.

    An analyst noted that ranking competition is actually competition
concerning corporate strength, and capital strength is the core. The analyst
states, \"Given increasingly fierce competition and strict regulation,
China\'s
real estate industry is shifting to a model of \'capital+professionalism\'.
Real estate developers must assure sufficient financial strength.\"
Reportedly, 39 Chinese real estate companies will go public through an IPO
or
backdoor listing, including Evergrande Real Estate Group, Rongqiao Group and
Landsea. Beyond land holdings, capitalization is another determinant of a
company\'s standing among competitors.

    Hong Kong\'s media reported that the Evergrande Real Estate offering for
Hong Kong listing has received warm response from Chinese investors such as
Li Ka-shing, Cheng Yu-tung and Joseph Lau Luen-hung, who will invest
hundreds
of millions of USD. Li Ka-shing may subscribe to more than US$100m worth of
shares issued by Evergrande through his Cheung Kong (Holdings). Emperor
Group
chairman Albert Yeung and C C Land Holdings chairman Cheung Chung-kiu also
expressed interest Evergrande shares.

    Evergrande has attracted many investors since officially kicking off its
large-scale road show this Monday, with its international placement more
than
twice oversubscribed on the first day. The group will immediately launch
road
shows in New York and Boston, while continuing its IPO in Hong Kong.
Evergrande Real Estate Group has drawn attention due to its large land
reserves. The research division of Goldman Sachs, an underwriter for
Evergrande Real Estate Group, confirmed that Evergrande Real Estate Group
ranked first in land reserves compared with other mainland property
developers listed in Hong Kong or the mainland. According to estimates by
Goldman Sachs, land prices for Evergrande Real Estate Group\'s projects
represent a mere 9% of the average selling price for its completed property,
demonstrating the group\'s extraordinarily low land costs when compared with
its competitors.

    Recovery of China\'s real estate market also proved to be beneficial to
Evergrande Real Estate Group\'s IPO. The research division of Credit Suisse,
the group\'s other underwriter, recently conducted an analysis on
transactions
in the mainland real estate market between October 12 and October 18,
revealing that major provinces and cities experienced increases in property
transactions and investments last week. Sun Hung Kai Financial pointed out
that Evergrande is undervalued as the group\'s maximum issue price only
equals
approximately 6.6 times its underwriters\' P/E Ratio forecast for 2010.