Page 90 - TreasuryChinaTrust

Treasury China Trust Annual Report 2010 7

CHAIRMAN’S STATEMENT

TCT has committed to 2 further acquisitions, one in Shanghai and the other in Qingdao, which will add a further 345,000 square metres in total gross floor area (GFA) of retail floor space over the next 3 years, thus confirming TCT’s ongoing commitment to China’s largest commercial real estate market – Shanghai – and establishing a beachhead in the key regional market of Qingdao. This is supplemented by the execution of Strategic Partnership Agreements with the TRIO Group of Qingdao and Ginwa Group of Xi’an, which are expected to deliver further opportunities for balance sheet growth in the retail sector during 2011.

Business Landscape

The Chinese economy continued its strong performance of recent years in recording a 10.3% expansion for 2010 and for the first time finishing the year as the world’s second largest economy, overtaking Japan in the process.

The government appears to have managed the aftermath of the 2008/9 global financial crisis satisfactorily and positioned China to reap the rewards of its two decades’ long march towards economic prosperity.

China Annual GDP China Economy Surpasses Japan

Source: Euromonitor International from IMF. International Financial Statistics and World Economic Outlook/UN/National Statistics Andrew Barr / National Post

Source: China National Statistics Bureau

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2005 2006 2007 2008 2009 2010

RMB billion

Total GDP (LHS) Growth Rate (RHS)

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

3

6

9

12

15

GDP in US$ Trillion

14.7

5.9 5.5

3.3

2.6 2.2 2.2 2.1

1.5 1.5