China Overseas Land & Investment Top-Line Growth Resumed and Margin Improved Amid Sector Recovery

We believe the leverage-driven strong growth for the real estate developers is behind us and the property sector is past its peak growth. This is exacerbated by the tightening policy environment and restricted credit growth to the property sector. The smaller and unlisted companies will face increasing liquidity constraints, prompting them to raise cash by cutting prices or selling projects. We expect China Overseas Land & Investment, or COLI, to fare well in this consolidation-heavy environment, becoming one of the few developers to successfully maintain growth by focusing on operational efficiency and opportunistic acquisitions.