Anhui Saunaking Co Ltd

The combined investment themes of China and environment provide a compelling case for investment. The sector remains volatile as it matures and reacts to environmental and industry development policy shifts. The quality and scale of the companies included in the sector varies widely and strong research into both sub-sectors and companies is essential before committing to the sector.

The best performing sub-indices for the month were the China Hydro Index with a 6.7% gain and the China Efficiency Index with a 1.0% gain. The two weakest sub-indices through July were the China Storage Index which recorded a loss of 7.5% and the China Solar Index recording a loss of 7.3%.

Asian Activities Report for February 8, 2012 includes: Great Wall Computer Company Limited (SHE:000066) has agreed to form a strategic sales and manufacturing partnership with Satcon Technology Corporation (NASDAQ:SATC); Anhui SaunaKing Co., Ltd. (SHE:300247) has proposed to acquire and invest in Saunalux; Suzuki Motor Corporation (TYO:7269) will establish a 50:50 joint venture company with Intelligent Energy Holdings PLC ("IEH") of UK, in February 2012, for developing and manufacturing fuel cell system.