Ann: Annual Accounts , page-3

I'm rather conservative on the prospectus. I'd like to single out China to discuss a downside risk in the next five years, as China holds an important spot in ASEAN.

According to Platinum Asset Management's latest road trip to China (which expressed concerns about the nation's structural challenge) and my own judgement on China's outlook, I think an economic shock is imminent within the next five years.

I observed that property prices in China have risen substantially this year to new all-time highs even in an environment of increasing restraints. I predict that money supply will tighten in the coming year to further curb property demand (this looks imminent as the government has already announced its stance on price stability, which upon analysis this stance is indeed a prudent strategy---for the banking sector and to avoid the fate of Japan/Korean 13 years ago the property price cannot fall rapidly, however it cannot rise much further as inflated living costs in big cities are already killing factories and jobs).

Overall I think we are pretty close to see a shock. China's restructuring is imminent, and while it's taking place it will have negative impact on investment and business confidence in the region.