Our Special Situations team focuses on investment in physical assets, loans and equity interest priced at deep discount. We capture investment opportunities in China originating from macro-economic factors like industry developments and the regulatory environment and micro-economic factors such as mismanagement, over-leverage and information asymmetry. Through our deep understanding of local situations, we offer international investors a unique opportunity to participate in value investments with reasonable liquidity, while limiting investment risks through in-depth research and a disciplined investment approach.

As of December 2007, we had an investment of RMB940 million in non-performing loans, distressed real estate and other special situation projects.