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Treasury China Trust Annual Report 2010 27

TRUSTEE-MANAGER’S REPORT

US$ vs RMB

6.5

7.0

7.5

8.0

8.5

RMB appreciated by 25% against the US$

from US$

More flexible currency regime

De-pegged

Source: People’s Bank of China

Importantly the entirety of the portfolio, previously funded through European banks has been refinanced with local Chinese and Asian banking institutions, who have demonstrated significant reserves of liquidity relative to the almost paralysed state of the western banking community. This represents a significant shift for TCT and is a strong indication of its growing profile in Asia and attractiveness to the local banking industry which has had its lending ambitions significantly curtailed in respect of the residential sector, due to government regulation.

Lender Property Loan Composition

Stabilised Assets

Industrial and Commercial Bank of China City Center US$301m; RMB410m Citic Bank International (CBI) Treasury Building US$37.8m; RMB50m CBI/OCBC/Maybank Syndicate Central Plaza US$110m; RMB65m

Development Assets

Industrial and Commercial Bank of China City Center Extension RMB800m Industrial and Commercial Bank of China Beijing Logistics Park RMB170m

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