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ASIA FLOW REPORT

CHARLES BIDERMAN CHIEF EXECUTIVE OFFICER VINCENT DELUARD MINYI CHEN DECEMBER 7, 2009 VOLUME 1, NUMBER 12 VINCENT.DELUARD@TRIMTABS.COM +1 (415) 331-4400

Foreigners Keep Buying Asian Stocks Despite Dubai Debt Problems Chinese Retail Investors Turn Ebullient
Dubai’s debt problems had almost no effect on foreign flows toward Asian equities. Foreigners actually added to their stock positions in India, Japan, and Korea since the Dubai crisis emerged three weeks ago. Emerging Markets hedge funds posted three consecutive months of inflows. Pacific Asia ex-Japan mutual funds and Asia-oriented ETFs posted small inflows in the first week of December. Foreigners also favored the most speculative ETFs, such as HAO (Claymore/AlphaShares China Small Cap) and PIN (PowerShares India), over more established funds, such as EWJ (iShares MSCI Japan) and EWH (iShares MSCI Hong Kong). Local investors have been taking profits in recent months. Indian mutual fund investors have been steady sellers of shares since the BSE Sensex passed the 17,000 mark in October. Korean retail investors sold $882 million in the first week of December. On the other hand, Chinese retail investors are turning ebullient; investors opened 536,273 new accounts in the past week, the highest total in three months. 26.1 million accounts were actively traded, the second highest level so far this year, and recent IPOs were massively oversubscribed. Flow patterns have been remarkably stable in the past six months. Foreigners are steady buyers of Asian stocks, local investors are much more cautious (selling during rallies and buying on dips), and retail investors in China still snap up IPOs like hotcakes. Going forward, we expect that foreign appetite for Asian stocks will continue to overwhelm valuation concerns.

Local Investors: Fear and Greed Scale, December 3 2009 Fear
Retail Account Opening on Chinese Exchanges Cash Balance in Chinese Investment Accounts Flows into Hong Kong Mutual Funds Margin Debt on Japanese Exchanges Flows into Japanese Mutual Funds Short Selling on Japanese Exchanges Unrealized Profit on Japanese Exchanges Retail Buying of Japanese Stocks Flows into Indian Equity Mutual Funds Domestic Purchases of Korean Stocks
27 38 75 44 25 24 10 64 40 37

Greed

Foreign Investors: Fear and Greed Scale, December 3 2009 Fear
US Mutual Funds Investing in Asia US Flows into Asian ETFs Short Interest on Chinese ADRs (Days to Cover) Foreign Purchases of Japanese Stocks Foreign Investment in Indian Equities Flows into Emerging Markets Hedge Funds Foreign Purchases of Korean Stocks
47 58 77 27 38 48 69

Greed

Copyright © 2009 TrimTabs Investment Research. All rights reserved.

Asia Flow Report November 30, 2009 Page 2 of 20

Contents
Local Demand for Asian Stocks: Sentiment Improves in China. Caution Prevails in Other Exchanges ..........................3 New Account Openings Rise in China. Investors Dump Stocks for Cash. ..................................................................................3 Margin Purchase Losses Rise to 22.2% in Japan. Retail Trading Value Plunges 45.9% from June.. .........................................4 India: Equity Mutual Funds Post Outflows for Three Straight Months .......................................................................................5 South Korea: Local Investors Sell $891 Million in Stock in Past Month.....................................................................................6 Foreign Demand for Asian Stocks: Strong Despite Dubai’s Debt Problems ........................................................................7 ETF Investors Favor HAO and PIN. Demand for Asia Oriented Mutual Funds Remains Weak ...............................................7 Foreign Investors Sell $1.9 Billion in Japan, Snap up $1.1 Billion in India and $1.7 Billion in South Korea ............................9 Emerging Markets Hedge Funds Take in $3.8 Billion in Past Three Months ............................................................................11 Data Tables and Graphs ..........................................................................................................................................................12 U.S. Market Flow Data.............................................................................................................................................................12 Flows into U.S.-Listed Mutual Funds Investing in Asia ............................................................................................................12 Flows into U.S.-Listed Exchange-Traded Funds Investing in Asia ...........................................................................................13 Short Interest on Chinese American Depository Receipts..........................................................................................................13 Charts of Flows and Returns of U.S.-Listed Exchange-Traded Funds Investing in Asia...........................................................14 Asian Markets Flow Data ........................................................................................................................................................14 China: Investment Account Openings and Cash Balances. ........................................................................................................14 Japan: Margin/Short Data, Mutual Funds Flows, and Net Purchases by Investor Types ...........................................................15 India: Mutual Funds Flows and Purchases of Equities by Foreigners ........................................................................................16 South Korea: Domestic and Foreign Purchases in South Korea ................................................................................................17 Corporate Liquidity Data Tables ............................................................................................................................................18 TrimTabs Research Products. .................................................................................................................................................20

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Asia Flow Report November 30, 2009 Page 3 of 20

Sentiment Improves in China, but Caution Prevails in Other Exchanges
Local sentiment on Asian exchanges is mixed, from extreme caution in Korea and India, to moderate optimism in Japan, to euphoria in China. Caution prevails in India and Korea. Indian equity mutual funds lost $1.6 billion in the past three months. In South Korea, local investors have remained net sellers for nine months. In both cases, sales of stocks have diminished in November. Japanese investors remain highly leveraged; the long margin / short margin ratio is at a one-year high of 2.3. Looking ahead, we expect Japanese investors will have to sell in order to cut their losses on open margin positions. In China, weekly new investment account openings swelled 180% in the past seven weeks. Investors opened 536,273 new accounts in the week ended November 27, up from 286,724 in the week ended October 16. The number of accounts actively traded surged to 26.1 million, the second highest level so far this year. The cash balance in China’s investment accounts remained elevated in the past two months. We estimate that $42 billion is sitting in investment accounts to chase IPOs.

Local Investors: Fear and Greed Scale, December 3 2009 Fear
Retail Account Opening on Chinese Exchanges Cash Balance in Chinese Investment Accounts Flows into Hong Kong Mutual Funds Margin Debt on Japanese Exchanges Flows into Japanese Mutual Funds Short Selling on Japanese Exchanges Unrealized Profit on Japanese Exchanges Retail Buying of Japanese Stocks Flows into Indian Equity Mutual Funds Domestic Purchases of Korean Stocks
27 38 75 44 25 24 10 64 40 37

Greed

New Account Openings Rise in China. Investors Dump Stocks for Cash. The trend in China has been changing rapidly in the past two weeks, as new account openings and the number of actively traded accounts rose. Investors opened 536,273 new trading accounts in the past week, which marks three straight increases and a 14-week high. The number of accounts actively traded rose to 26.1 million, the second highest total of the year. Meanwhile, the number of accounts holding stocks also climbed back above 50 million. We do not believe this ebullient sentiment will persist. While upside potential now seems smaller than downside risk, investors tend to lock in profits ahead of the end of the year. The number of accounts holding stocks remained nearly flat in November while the number of accounts traded almost doubled. Such a contrast suggests that investors are still not willing to add exposure to equities.

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Asia Flow Report November 30, 2009 Page 4 of 20
900,000 800,000 700,000 600,000 Millions 500,000 400,000 300,000 200,000 100,000 0 Jan-08 Jul-08 Dec-08 Jun-09 Nov-09 4 0 9-Jan 3-Apr 19-Jun 4-Sep 20-Nov 46 20 16 12 8 Accounts Holding Stocks (RHS)

Account Openings Soar in China

28 24

Signs of Overheating Emerge in China

51

Accounts Traded (LHS)

50

48

47

Source: Chinaclear The cash balance in China’s investment accounts has been fluctuating wildly since the IPO market resumed at the end of June. Most of the speculative funds targeting IPO stocks moved into the market within one month of the first IPO subscription on June 29 (see chart). Investors, especially institutions, usually need no additional funds for each new IPO. The demand for these IPOs is so strong that individuals can secure only a tiny fraction of the allotment. The ending balance before the first IPO was 1.1 trillion yuan ($161.9 billion), while the cash balance averaged 1.4 trillion yuan ($204.0 billion). The difference ($42.1 billion) comes from speculative money with one purpose: To chase IPO stocks. These funds should stay in China’s investment accounts as long as the IPO market remains open.
Cash Balance in China's Investment Accounts
2,500 Cash Balance 2,000 10-Day MA RMB Billions 9,000 8,000 7,000 RMB Billions 1,500 6,000 5,000 4,000 3,000 500 2,000 1,000 0 Jan-09 Mar-09 Apr-09 Jun-09 Aug-09 Sep-09 Nov-09 0 Jun-09 Aug-09 Sep-09 Oct-09 Nov-09 Speculative Money Withdrew before Long Holiday

Cumulative Inflows to Investment Accounts Since June, Excluding Funds Locked up for IPOs

1,000

Source: Galaxy Margin Purchase Losses Rise to 22.2% in Japan. Retail Trading Value Plunges 45.9% from June. In Japan, margin purchase losses rose for a fourth straight week, to 22.2%, the highest since March. Meanwhile, the long/short margin ratio climbed to 2.3, a high for the year. Stock gains in the past week could be a timely relief to losing investors. The swelling loss ratio, however, may suppress the recovery as investors will sell into the rally to close underwater positions. Page 4 of 20

Millions

49

Asia Flow Report November 30, 2009 Page 5 of 20
Japan: High Leverage Amplifies Losses on Open Margin Positions
1,700 -5 1,500 1,300 Long Margin (LHS) 1,100 Short Margin (RHS) 900 700 Jan-09 Feb-09 Apr-09 May-09 Jul-09 Aug-09 Oct-09 Nov-09 -25 -30 Margin Purchase Loss Ratio (RHS) -10 -15 -20 Margin Purchase Loss Ratio (%)

0

JP¥ Billions

Source: TSE Retail investors sold $93 million in the week ended November 27. They bought a total of $423 million in November after selling $1.1 billion in October. Japanese retail investors are highly leveraged (60% on margin), so the mounting losses on open margin positions have greatly reduced their market participation. Retail trading value in November, including both purchases and sales, totaled $92.0 billion, down 45.9% from $170.0 billion in June.
Japan: Retail Investors Maintain Limited Exposures to Equities

12 10

1,000 950

8 6 $Billions 4 Retail Purchases (LHS)

TOPIX 900 850

2 0 -2 750 -4 -6 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 700 800

Source: TSE Indian Equity Mutual Funds Post Outflows for Three Straight Months. Indian equity mutual funds posted outflows in the past three months. They lost $478 million in September, $1.0 billion in October, and $96 million in November. The benchmark Sensex Index climbed back to 17,000 in the middle of November, a level not likely to attract active domestic purchases. We expect high prices will continue to depress local demand, but we believe a large sell-off is unlikely. Page 5 of 20

Asia Flow Report November 30, 2009 Page 6 of 20
India: Equity Mutual Funds Remain Net Sellers for Three Consecutive Months
Equity Funds Flow (LHS) BSE SENSEX (RHS)

1,800 1,600 1,400 1,200 1,000
$Millions

18,000 17,000 16,000 15,000
SENSEX KOSPI

800 600 400 200 0 -200 -400
Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09

14,000 13,000 12,000 11,000 10,000 9,000
Dec-09

Source: SEBI Local Investors in South Korea Sell $891 Million in Stock in the Past Month. In South Korea, local investors dumped $987 million in stocks in November, the lowest total in eight months. Korean institutions shed $824 million while retail investors sold $163 million. Korean stocks had been skidding for more than two months before advancing 6.6% in the past week, the second largest gain of the year. Retail investors took profits in the past week, selling $882 million into the rally. Meanwhile, institutional investors took in $161 million. Although purchase volume was small, they have been net buyers in three of the past four weeks. This is a sign that local institutional players might now be winding down an eight-month sell-off.
25 20 15 $Billions 10 5 0 -5 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Individual Institutions

South Korea: Retail Investors Sell into the Rally in Past Week

1,900 1,800 1,700 1,600 KOSPI 1,500 1,400 1,300 1,200 1,100 1,000 900

Source: KRX

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Asia Flow Report November 30, 2009 Page 7 of 20

Foreign Demand for Asian Stocks Remains Strong Despite Dubai’s Debt Problems
Foreigners remained net buyers of stocks in Japan, Korea, and India in the past two weeks. Flows into Asia-oriented mutual funds, ETFs, and hedge funds also remained positive.  Foreign purchases of stocks were strongest in Korea, totaling $1.7 billion in November. Foreign investors bought $1.1 billion in November, down from $1.9 billion in October. Inflation worries and expectations of tighter monetary policy probably curbed inflows toward Indian equities. In Japan, foreign investors purchased $691 million worth of stocks in the week ended November 27, paring net share sales in November to $1.9 billion. Foreign investors were likely lured back into the market by the Nikkei’s five-week drop, which made Japanese equities attractive relative to their Asian neighbors. ETF flows were strongest toward HAO (Claymore/AlphaShares China Small Cap), which took in 25.6% of assets in the past five weeks, and PIN (PowerShares India), which issued 9.4% of assets. These two ETFs were the best performing Asia-oriented ETFs in the past five weeks, gaining 15.9% and 14.3%, respectively. Flows toward Asia-oriented mutual funds were modest. Pacific/Asia Ex-Japan mutual funds and Diversified Emerging Markets mutual funds received a paltry 0.3% and 0.1% of assets, respectively, in the past five weeks, against losses of 0.5% for Japan Stock funds. The strong performance of Brazilian stocks may be diverting capital from the region, as Latin America funds attracted inflows of 1.5% of assets since the beginning of November. Emerging Markets hedge funds also posted modest inflows, taking in $3.8 billion (1.8% of assets) from August to October.

Foreign Investors: Fear and Greed Scale, December 3 2009 Fear
US Mutual Funds Investing in Asia US Flows into Asian ETFs Short Interest on Chinese ADRs (Days to Cover) Foreign Purchases of Japanese Stocks Foreign Investment in Indian Equities Flows into Emerging Markets Hedge Funds Foreign Purchases of Korean Stocks
47 58 77 27 38 48 69

Greed

ETF Investors Favor HAO (Claymore/AlphaShares China Small Cap) and PIN (PowerShares India) in November. Demand for Asia Oriented Mutual Funds Remains Weak. U.S. ETF investors maintained long positions in Asian equities in the past month except in South Korea and Japan. HAO (Claymore/AlphaShares China Small Cap) received $69 million (25.6% of assets) in the past five weeks, significantly more than other ETF flows we track. Inflows to PIN (PowerShares India) picked up in the past two weeks and now total $27 million (9.4% of assets) since November 1. PIN’s inflow/asset ratio surpassed FXI’s, which received $801 million ( 8% of assets). ETF investors had no interest in holding Japanese equities, as the Japanese market plunged 10.1% in five weeks. EWJ (iShares MSCI Japan) have lost $213 million (4.5% of assets) over that time. HAO also led the group on a NAV basis with a 15.9% gain since November 1. PIN followed closely with a 14.3% gain. Page 7 of 20

Asia Flow Report November 30, 2009 Page 8 of 20 EWJ, however, rose only 3.7%, the worst performance among the eight ETFs we track.
Inflows to PIN Pick up in Past Two Weeks ETF Flow/Asset Since Nov. 1 HAO (CN) PIN (IN) FXI (HK) EWS (SG) EWT (TW) EWH (HK) EWY (KR) EWJ (JP)
-5% 0% 5% 10% 15% 20% 25% 30% FXI (HK) HAO (CN) EWS (SG) PIN (IN) EWT (TW) EWH (HK) EWY (KR) EWJ (JP) -400 -200 0 200 400 $Millions 600 800 1,000

FXI Adds $801 Million to Assets Dollar Value of ETF Flows in November

Source: TTIR So far this year, HAO has received 211.5% of assets, but inflows have slowed since late November. Meanwhile, inflows to PIN were steadily picking up in the past month after the Indian market survived a major correction in October. EWH (iShares MSCI Hong Kong) and FXI are two established ETFs investing in Chinese stocks. Recently, inflows to FXI have remained above those to EHW. Elsewhere, a sell-off of EWJ has extended to a third straight month, and the Japan-oriented fund has posted an outflow of $1.1 billion since September.
Cumulative ETF Flow/Asset YTD

260% 220% 180% 140% 100% 60% 20% -20%

HAO

PIN

EWY EWH EWJ FXI

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Source: TTIR Unlike ETF investors, mutual fund investors are not particularly enthusiastic about holding Asian stocks. There has been an ongoing trend to add positions in Latin America, while U.S. Pacific/Asia Ex-Japan mutual funds and Diversified Emerging Markets mutual funds received a paltry 0.3% and 0.1% of assets, respectively, in the past five weeks. By contrast, Latin America Stock mutual funds and U.S. Large Blend mutual funds gained 1.5% and 0.3% of assets, respectively. Diversified Pacific/Asia mutual funds and Japan Stock mutual funds, the two small fund groups, lost 1.6% and 0.5% of assets, Page 8 of 20

Asia Flow Report November 30, 2009 Page 9 of 20 respectively, in the past five weeks. Compared to ETF flows, mutual fund flows have been more stable over the long term. We therefore expect this trend to extend through year-end.
30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Diversified Pacific/Asia Latin America Stock US Large Blend Emerging Markets

Cumulative Mutual Fund Flow/Asset YTD
Pacific-Asia Ex Japan

Japan Stock

Source: TTIR Foreign Investors Sell $1.9 Billion Worth of Stocks in Japan, Snap up $1.1 Billion in India and $1.7 Billion in South Korea. In Japan, foreign investors bought $691 million in stocks in the week ended November 27. This marks their largest purchase in six weeks, during which time the benchmark TOPIX plunged 10%. Foreigners have been the largest buyers of Japanese equities in the past eight months, adding $29.4 billion since the market bottomed in March. Given the strong yen and an expected stimulus package from the new government, we believe foreign investors have an incentive to make big purchases at low prices.
Japan: Foreigners Pick Bargains amid Market Plunge

0 -5

1,000 950

-10 -15 $Billions -20 -25 -30 -35 -40 -45 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 700 750 Foreign Purchase of Japanese Stocks (LHS) TOPIX (RHS) 850 800 900

Source: TSE In India, foreigners have remained buyers of stocks for eight straight months. They took in $6.2 billion in stocks in Q2, $7.0 Page 9 of 20

Asia Flow Report November 30, 2009 Page 10 of 20 billion in Q3, and $3.6 billion so far in Q4. As is the case with Japan, foreigners are the largest buyers of stocks in India. Because Indian stocks have soared 77% so far this year, future gains will be limited. Meanwhile, signs of inflation in India may soon prompt the monetary authority to tighten policy. If that comes to pass, foreign investors are likely to maintain a sizable position in India but won’t be as aggressive as they were in the past two quarters. Foreign purchases might continue to shrink early next year.
India: Foreign Investors Purchase $16.9 Billion in Stocks Since April
18 16 14 12 $Billions 10 8 6 4 2 0 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Dec-09 Foreign Purchases of Indian Stocks (LHS) BSE SENSEX (RHS) 18,000 17,000 16,000 15,000 14,000 13,000 12,000 11,000 10,000 9,000

Source: SEBI In South Korea, foreign investors bought $1.7 billion in stocks in November, keeping them the largest buyers for an eighth straight month. They have remained net buyers for five consecutive days, snapping up $794 million in stocks. In the past three months, South Korea’s market performance was better than Japan’s but much worse than India’s. Net foreign purchases in South Korea, however, were the strongest among the three countries. We attribute this to Korea’s better recovery prospects. The trade surplus expanded in October despite currency appreciation, and corporate earnings are expected to improve amid growing demand from China (the largest buyer of Korean products). Given the market’s recent lukewarm performance and the country’s recovery prospects, we believe foreigners will continued to add weight to South Korea.
25 20 15 $Billions 10 5 0 -5 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Foreign Purchases of Korean Stocks (LHS) KOSPI (RHS)

South Korea: Foreign Investors Have Been Largest Stock Buyers since April

1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000
KOSPI

Source: KRX Page 10 of 20

BSE SENSEX

Asia Flow Report November 30, 2009 Page 11 of 20 Emerging Markets Hedge Funds Take in $3.8 Billion (1.8% of Assets) in Past Three Months. Hedge fund investors remain moderately bullish on Emerging Markets. Emerging Markets hedge funds took in $3.8 billion (1.8% of assets) in the past three months. Inflows have also fallen steadily, from $1.7 billion in August, to $1.5 billion in September, to $478 million in October. Looking ahead, we expect flows to remain weak because of the impact of year-end redemptions. Meantime the strong performance of these funds (+55.9% this year) should temper withdrawal in December.
Flows into Hedge Funds Aug to Oct 2009
Sector Specific Other Multi-Strategy Merger Arbitrage Macro Fixed Income Event Driven Equity Market Neutral Equity Long-Short Equity Long Only Equity Long Bias Emerging Markets Distressed Securities Convertible Arbitrage 0.00 0.17 0.62 1.85 1.17 1.15 3.61 2.78 0.66 7.06 0.33 3.46 3.79 5.92 1.03 2.00 4.00 $ Billion 6.00 8.00 0% 2% 4% 6% 8% 10% Sector Specific Other Multi-Strategy Merger Arbitrage Macro Fixed Income Event Driven Equity Market Neutral Equity Long-Short Equity Long Only Equity Long Bias Emerging Markets Distressed Securities Convertible Arbitrage 6.4% 9.3% 4.5% 9.3% 0.4% 2.6% 6.1% 2.6% 1.8% 7.1% 7.1% 0.2% 4.4%

Returns of Hedge Funds Aug to Oct 2009
1.9%

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Asia Flow Report November 30, 2009 Page 12 of 20

U.S. Market Flow Data
Table 1: U.S. Mutual Fund Flows ($millions)
Last Week TNA Flow NAV-% Diversified Emerging Markets Diversified Pacific/Asia Japan Stock Pacific/Asia ex-Japan
Source: TTIR

Last Month TNA Flow NAV-% 26,128 582 159 5,643 61 -9 -1 24 17.5% 10.7% 0.6% 14.2%

Last 12 Months TNA Flow NAV-% 10,418 392 93 2,323 1,318 -71 -24 459 136.3% 60.0% 12.2% 128.3%

14,955 330 90 3,222

-28 -1 0 -3

0.5% 0.4% 0.3% 0.1%

Table 2: U.S. Asia-oriented ETF Flows ($millions)
As of TNA EWH (HK) EWJ (JP) EWS (SG) EWT (TW) EWY (KR) FXI (HK) HAO (CN) PIN (IN) TAO (CN)
Source: TTIR

Last Week Flow NAV-% 18 -76 23 24 -16 -5 2 13 1 1.2% 5.7% -0.6% -1.3% -0.1% -1.1% 3.9% 0.5% 4.0%

TNA 1,926 4,744 1,441 3,432 2,911 10,069 273 296 85

Last Month Flow 17 -213 35 27 -55 820 69 37 1

NAV-% 7.2% -1.4% 12.3% 13.0% 8.9% 10.6% 16.0% 14.3% 11.1%

Last 12 Months TNA Flow NAV-% 1,580 5,124 1,015 2,347 1,895 8,161 103 159 48 125 -1,305 191 1,117 852 1,369 238 181 50 62.3% 15.5% 79.2% 65.8% 98.9% 66.5% 132.0% 94.5% 102.0%

1,931 4,750 1,473 3,428 2,882 10,328 311 317 86

Table 3: Short Interest on Chinese ADRs (millions)
Shares Short Short Interest ($) Short Interest Flow ($) Days to Cover Flow/Volume Ratio
Source: TTIR

13-Nov 181 4,360 230 2.33 0.67%

30-Oct 181 3,749 164 2.05 0.36%

15-Oct 177 3,978 279 2.45 0.28%

30-Sep 168 3,785 -441 2.46 0.01%

15-Sep 175 4,277 335 2.66 0.80%

31-Aug 173 3,485 -42 2.25 0.01%

14-Aug 169 3,673 71 2.27 0.50%

Last 12 Months 152 2,857 663 2.44 0.05%

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Asia Flow Report November 30, 2009 Page 13 of 20

Figure 1: Hong Kong (EWH)
1,200 1,000 800 Millions Flow

Figure 2: Japan (EWJ)
NAV 25 22 19 Millions 16 13 10 7 1,000 0 -1,000 -2,000 -3,000 -4,000 -5,000 -6,000 -7,000 Jan-07 Sep-07 May-08 Jan-09 Sep-09 6 10 8 14 12 Flow NAV 16

600 400 200 0 -200 -400 Jan-07 Sep-07 May-08 Jan-09 Sep-09

Source: TTIR

Figure 3: Singapore (EWS)
900 800 700 600 500 Millions 400 300 200 100 0 -100 Jan-07 Sep-07 May-08 Jan-09 Flow

Figure 4: Taiwan (EWT)
NAV 2,500 15 2,000 13 1,500 11 9 7 5 Sep-09 Millions 1,000 11 500 0 -500 Jan-07 Sep-07 May-08 Jan-09 Sep-09 9 7 5 Flow NAV 19 17 15 13

Source: TTIR

Figure 5: Korea (EWY)
2,000 Flow 1,500 1,000 Millions 500

Figure 6: Hong Kong (FXI)
NAV 75 65 Millions 55 45 35 5,000 4,000 3,000 2,000 1,000 0 -1,000 -2,000 -3,000 -4,000 -5,000 -6,000 Jan-07 Jul-07 Jan-08 Jul-08 Flow NAV 70 60 50 40 30 20 10 Jan-09 Jul-09

0 -500 Jan-07 Sep-07 May-08 Jan-09 Sep-09

25 15

Source: TTIR

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Asia Flow Report November 30, 2009 Page 14 of 20

Figure 7: China (HAO)
300 250 200 $Millions 150 100 50 0 -50 Mar-08 Aug-08 Jan-09 Jun-09 Flow NAV

Figure 8: India (PIN)
30 28 26 24 22 20 18 16 14 12 10 Nov-09 0 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 5 $Millions 150 15 100 50 10 250 200 20 25 300 Flow NAV 30

Source: TTIR

Figure 9: China (TAO)
60 50 40 Millions 30 20 10 0 -10 Mar-08 Jul-08 Nov-08 Mar-09 Jul-09 Flow NAV

Figure 10: Short Interest on Chinese ADRs
25 23 21 19 $Billions 17 15 13 11 9 7 5 Nov-09 0 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 1 5 4 4 3 3 2 1 2 5 6 Dollar Short Interest Days to Cover 6

Source: TTIR

Asian Market Flow Data
Table 4: Investment Account Openings and Cash Balance in Investment Accounts in China
8/14/2009 Equity Accounts (000s) Fund Accounts (000s) Total Accounts (000s) Accounts Traded (mln) Cash Balance (bln) Change in Cash Balance (bln)
Source: Chinaclear

Last Week 454 82 536 26.1 1,413 -79

2-week 820 165 984 25.1 1,437 284

3-week 1,126 222 1,347 23.6 1,426 -172

4-week 1,426 274 1,700 23.0 1,426 -35

6-month 9,929 1,755 11,684 21.4 1,297 740

12-month 16,800 2,686 19,486 -

Year-to-Date 15,658 2,522 18,180 17.9 1,133 1,041 Page 14 of 20

Asia Flow Report November 30, 2009 Page 15 of 20

Table 5: Margin/Short Data, Mutual Funds Flow, and Net Purchases by Investor Types in Japan ($Millions)
Most Recent 1-month 2-month 3-month 6-month 12-month Year-to-Date

Long/Short Margin Ratio Short Sales/Volume Mutual Fund Inflows/TNA Purchases by Japanese Retail Investors Purchases by Foreigners
Source: TTIR

2.3 21.6% 0.8% -93 615

2.2 21.2% 1.1% 1,174 -1,205

2.1 20.5% 0.9% 833 3,470

2.0 20.6% 0.9% 2,805 3,315

1.7 20.1% 0.7% -3,647 20,733

1.5 20.7% 0.3% -3,667 -21,212

1.5 21.0% 0.5% 1,785 -12,087

Table 6: Mutual Funds Flow and Purchases of Equities by Foreigners in India ($Millions)
Last Week Mutual Funds Flow Purchases by Foreigners
Source: SEBI

2-week -74 630

3-week -249 1,288

1-month -60 1,822

6-month -768 11,633

12-month 199 17,427

Year-to-Date 241 17,182

-11 567

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Asia Flow Report November 30, 2009 Page 16 of 20

Figure 9: Investment Account Openings in China
800 700 600 500 Thousands 400 300 200 100 0 Jan-08 May-08 Aug-08 Dec-08 Apr-09 Jul-09 Fund Accounts

Figure 10: Cash Balance in China’s Investment Accounts
2,500 Cash Balance 10-Day MA 2,000

Equitiy Accounts 1,500 RMB Billions Nov-09

1,000

500

0 Jan-09 Mar-09 Apr-09 Jun-09 Aug-09 Sep-09 Nov-09

Source: Chinaclear

Source: Galaxy

Figure 11: Margin Balance on Japanese Bourses
7,000 6,000 5,000 4,000 3,000

Margin Balance on Japanese Bourses

JP¥ Billions

Long Margin Position
2,000 1,000 0 Apr-04 Oct-04 Apr-05 Oct-05 Apr-06 Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09

Short Margin Position

Source: TSE

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Asia Flow Report November 30, 2009 Page 17 of 20

Figure 12: Mutual Funds Flow and Foreign Purchases in India
2,000 18,000 16,000 1,500 14,000 12,000 $Millions 1,000 Indian Mutual Funds Flow (LHS) 10,000 8,000 6,000 Foreign Purchases of Indian Stocks (RHS) 0 4,000 2,000 0 -500 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 -2,000 Dec-09 $Millions KOSPI 1,000 500 0 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09

500

Source: SEBI

Figure 13: Domestic and Foreign Purchases in South Korea
40 30 20 10 Individual 0 $Billions -10 -20 -30 -40 -50 -60 -70 Jan-07 Foreign KOSPI 1,500 Institution 2,000 2,500

Source: KRX

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Asia Flow Report November 30, 2009 Page 18 of 20

Annex 1: Liquidity Data Tables for Japan, Hong Kong, China, India, Australia, Singapore and Taiwan Japan: Weekly L11: +$1,026 Million
$ U.S. Million Oct 23 Oct 30 Nov 06 Nov 13 Nov 20 Nov 27 Dec 04 L1 34 -55 -3,258 548 -548 415 1,026 New Cash Takeovers 76 347 2,976 251 1,717 67 13 Stock Buybacks 19 436 325 319 112 212 405 Secondary Offerings 125 728 43 1,118 1,256 695 1,443 IPOs 5 0 0 0 25 0 0

Hong Kong: Weekly L1: +$3,796 Million
$ U.S. Million Oct 23 Oct 30 Nov 06 Nov 13 Nov 20 Nov 27 Dec 04 L1 50 251 1,859 507 6,272 273 3,796 New Cash Takeovers 0 0 0 0 445 56 0 Actual Buybacks 1.1 2.1 1.6 0.1 1.2 2.0 11.9 New Offerings 142 849 1,133 597 6,852 497 3,802 Net Insider Trading2 -91 -596 728 -90 -133 -166 6

Mainland China: Weekly L13: +$1,943 Million
$ U.S. Million L1 New Cash T/O Stock Buybacks New Offerings Net Insider Selling Unlocking Of Shares

Oct 23 Oct 30 Nov 06 Nov 13 Nov 20 Nov 27 Dec 04

592 782 447 3,773 1,517 1,607 1,943

0 0 0 0 0 0 0

0 0 0 0 0 0 0

372 652 198 3,712 1,007 598 1,719

220 130 248 61 510 1,008 224

5,019 193,731 275 5,872 1,372 1,554 12,099

1

In Japan, we measure corporate actions based on the announcement date and the completion date. In the L1 table, we use 2/3 of the announced amount and 1/3 of the completed amount 2 Positive amounts mean insiders were net sellers; negative amounts mean insiders were net buyers. 3 L1 = completed new offerings + net insider selling –stock buybacks – new cash T/O. We also base our calls on announced new offerings and unlocking of shares since they have a large impact on future liquidity.

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Asia Flow Report November 30, 2009 Page 19 of 20

India: Weekly L1: +$1,200 Million
$ U.S. Million Oct 30 Nov 06 Nov 13 Nov 20 Nov 27 Dec 04 L1
4

7,767 51 487 507 811 1,200

New Cash Takeovers 0 0 0 18 0 0

Announced Buybacks 0 0 0 0 0 0

Actual Buybacks 1 1 1 1 7 2

New Offerings 7,768 52 487 525 813 1,201

Net Insider Trading5 0 0 0 0 0 0

Australia: Weekly L1: +$4 Million
$ U.S. Million Oct 30 Nov 06 Nov 13 Nov 20 Nov 27 Dec 04 L1 203 1,227 -6,286 1,262 878 4 New Cash Takeovers 2,487 0 7,107 160 310 496 Actual Buybacks 113 115 125 132 113 80 New Offerings 2,833 1,341 961 1,565 1,296 597 Net Insider Trading 30 -1 15 10 -5 18

Singapore: Weekly L1: +$16 Million
$ U.S. Million Oct 30 Nov 06 Nov 13 Nov 20 Nov 27 Dec 04 L1 117 73 184 2,795 90 16 New Cash Takeovers 0 0 0 9 2 0 Actual Buybacks 1 0 2 3 3 5 New Offerings 96 67 199 2,418 87 39 Insider Trading -22 -6 14 -389 -8 18

Taiwan: Weekly L1: +$243 Million
$ U.S. Million Oct 30 Nov 06 Nov 13 Nov 20 Nov 27 Dec 04 L1 74 7 19 29 16 243 New Cash Takeovers 0 0 0 0 0 0 Actual Buybacks 17 7 0 0 0 0 New Offerings 24 0 0 6 0 236 Insider Trading 68 13 19 23 16 7

4 5

In India, we use one third of announced buybacks and two thirds of completed buybacks in our measure of L1. Positive amounts mean insiders were net sellers; negative amounts mean insiders were net buyers.

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Asia Flow Report November 30, 2009 Page 20 of 20 The TrimTabs Family of Products For further coverage of liquidity and macroeconomic trends, please refer to the following TrimTabs products: - Daily Liquidity Report (Monday through Friday) - Overnight Liquidity Update (Monday through Thursday) - Weekly International Liquidity Review (Monday) - Weekly Macro Analysis (Tuesday) - Weekly Flow Report (Wednesday) - Sector Liquidity (every other Thursday) Legal Disclaimer The data and analysis contained herein are provided "as is" and without warranty of any kind, either expressed or implied. TrimTabs Investment Research (TTIR) any affiliates or employees, or any third party data provider, shall not have any liability for any loss sustained by anyone who has relied on the information contained in any TTIR publication. All opinions expressed herein are subject to change without notice, and you should always obtain current information and perform due diligence before trading. TTIR accounts that TTIR or its affiliated companies manage, or their respective shareholders, directors, officers and/or employees, may have long or short positions in the securities discussed herein and may purchase or sell such securities without notice. TTIR uses various methods to evaluate investments, which may, at times, produce contradictory recommendations with respect to the same securities. When evaluating the results of prior TTIR recommendations or TTIR performance rankings, one should also consider that TTIR may modify the methods it uses to evaluate investment opportunities from time to time. For this and for many other reasons, the performance of TTIR's past recommendations is not a guarantee of future results. The securities mentioned in this document may not be eligible for sale in some states or countries, nor be suitable for all types of investors; their value and income they produce may fluctuate and/or be adversely affected by exchange rates, interest rates or other factors. TTIR has an investment management affiliate, TrimTabs Asset Management (TTAM) which actively invests in highly liquid ETF securities which are sometimes similar or identical to those tracked in the TTIR model portfolio and sometimes different. The portfolio trades held by TTAM will not always be the same as those recommended by TTIR, primarily because the TTIR trade recommendations are updated weekly while TTAM portfolios are managed on a daily basis as conditions change. Due to the highly liquid nature of ETF securities tracked by TTIR, TrimTabs does not believe there is the potential for conflicts of interest. Further distribution prohibited without prior permission. Copyright 2009 © TrimTabs Investment Research. All rights reserved.

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