Market Gazer Hong Kong - Japan - Germany - UK - North America

Stock Focus:
Hang Lung Properties Ltd. (0101)

Comparison between HK-listed developers shares performance shows that Hang Lung
Properties beat other developers’ performances based on consistency and magnitude. So
far in September the stock has increased 8.06%, outperforming Hang Seng Index which has
gained 7.14%. For the current 3Q, Hang Lung Properties provided the largest gains of
24.54%. Since the beginning of the year, the stock has been rising 22.71%, while compared
to the closing price at the end of last year’s September, Hang Lung’s most recent closing
price was 31.52% higher, beating other developers’ gains including the Hang Seng Index.

Last MTD 3Q YTD 1-Year

Hang Lung’s closest rivals are Hang Seng Index HK$ 22,002.59 7.14% 9.31% 2.35% 5.00%
Cheung Kong (Holdings) owned Hang Lung Properties HK$ 37.55 8.06% 24.54% 22.71% 31.52%
Cheung Kong (Holdings) HK$ 108.80 11.13% 20.35% 8.47% 10.63%
by the billionaire Li Ka-shing, SHKP HK$ 123.00 12.84% 14.53% 7.71% 5.76%

and Sun Hung Kai Properties. China Overseas Land & Invst HK$ 17.46 5.18% 18.94% 6.46% 1.99%
Sino Land HK$ 15.40 13.40% 9.69% 10.95%
4.18%
Henderson Land and New World Henderson Land HK$ 51.35 7.88% 11.63% -12.07% 0.69%
New World Development HK$ 14.28 14.47% 11.74% -10.53% -14.39%
Development were weakest
links according to the comparison table. Sino Land and China Overseas Land & Investment
are moderate rivals as both sometimes outperformed the Hang Seng Index, but at some
other times, both also underperformed the HSI.

As demand for properties in Hong Kong stays high, the government has been taking
measures in an attempt to cool down the soaring property prices. However, these efforts
have muted or rather minimal impacts so far. Low interest rates environment which
depends on the US interest rates, is expected to remain generous and thus provides
incentives to the housing market. The US FOMC is expected to keep the interest rates at the
current level until perhaps early next year. Until then, property sector seems to have one
more quarter to flourish.

Technical Analysis

Hang Lung Properties stumbled into resistance at HK$38.30-HK$38.35 area and showing
increased potential for correction near term. The correction however, should not be of
something surprising as the stock has been rising nearly relentlessly from HK$25.95 back in
May.

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A look at the daily chart

shows that MACD is falling
and nearing the zero line.
Toppish pattern also seen
and unless the price breaks
above HK$38.35 soon the
risk is to see pullback
towards the nearest chart
support at HK$36.50.
Zooming at the downside,
more supports are seen at
HK$35.50 and then the 50-
day Exponential Moving
Average at HK$34.50.

From the weekly chart, we

can see that the MACD has
stalled and in line with the
view that a corrective
pullback may not be far
away. Furthermore, the
current peak at HK$38.35
was just slightly above the
price target of HK$38.10.
More upside targets are
seen at previous peaks
HK$38.80 and HK$39.35. In
addition, projection targets
are also seen at HK$44.20
and HK$45.60.

Technically, corrections towards the aforementioned supports, particularly HK$36.50,

HK$35.50 and HK$34.50 could be used as entry points for LONG positions. Risk level is
defined below HK$32.00 at the most. Below this, it is likely that the upside has been
completed and that the stock will suffer severe fall. Upside targets are set at HK$38.80 first,
HK$39.35 next and finally HK$44.20 and HK$45.60 to complete the leg.

Disclaimer: This report is provided for information purposes only. It is not an offer to sell or to buy any securities. This report has been
prepared based on sources believed to be reliable, but there is no assurance or guarantee regarding its completeness & and ac curacy. The
author accepts no responsibility or liability arising from any use of the report.

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21 September 2010 Page 2