Citi - Quadrant Asia - March 2o13

Quadrant Asia

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March 7, 2013

The Italian job

Just when investors thought it was safe to get back into equities, the shocking results of the Italian elections saw the Eurozone crisis return with a vengeance and sent global risk assets reeling. Indeed, the severity of the correction across equity markets suggests that the bulls were well and truly caught by surprise.

The crucial question now is whether the equity bulls can recover their poise and allow markets to recover? Or, alternatively, whether the ‘Italian job’ has fatally undermined their carefully constructed optimism and is likely to lead to further losses? In other words, should we read the dip as a buying opportunity now or should we wait for further market consolidation? In the context of our outlook, which remains cautious in the short term but positive in the medium term, consolidation seems the most likely outcome. This is not least due to the very good run markets have recently enjoyed. Since September 2012, for instance, the MSCI Asia ex Japan Index (MXASJ) has gained 15%, powered by three bullish views: that mainland growth will accelerate; that quantitative easing (QE) in the United States, Europe and Japan will continue; and that the big macro risks which plagued 2011 and 2012 – such as the chaos surrounding the Greek elections and concerns over the US fiscal cliff – will diminish. But in the last few weeks, cracks have started to emerge in all three arguments, with lacklustre growth data from China, concerns that a withdrawal of liquidity from the US will impact capital flows to Asia; and most apparent of all, the shocking results of the elections in Italy. On top of all this, Asia’s biggest swing factor, the USD, has started to show ominous signs of strength. So what does this all mean? And how should we respond? In this month’s Quadrant Asia, we consider the impact of China’s apparent slowdown, and the risks to Asia associated with QE-derived capital flows. We conclude that, in all likelihood, the equity correction still has further to run but that ultimately any additional weakness could provide a more attractive point to add to positions in risk assets.

John Woods, Chief Investment Strategist, Asia Pacific

Jack Siu, Senior Analyst

Asset classes

–2 –1 0 1 2

Core equities

Japan

Far East Asia ex Japan

Hong Kong

Singapore

Emerging Asia

China

Taiwan

India

Indonesia

South Korea

Malaysia

The Philippines

Thailand

Australasia

Australia

New Zealand

Core fixed income

Asia investment grade USD

Asia local currency

Asia high yield

Focus investment views

Defensive equities

Cyclical equities

Arrows indicate changes from the allocations made on February 27, 2013.

–2 = very underweight; –1 = underweight; 0 = neutral

1 = overweight; 2 = very overweight

2 Quadrant Asia │7 March 2013

China trade

In just two short weeks, China’s consensus growth outlook has been subject to greater market scrutiny; and in many instances, has been found wanting. For example, the assumption of a soft landing baked in the price took a hit in mid-February with an unexpected slump in both the China HSBC and official manufacturing and non-manufacturing PMI readings for the month.

Figure 1: China PMIs continue to follow a declining trend

Source: Citi Private Bank using Bloomberg data as at March 5, 2013.

To be fair, a large part of the decline reflected seasonal distortions relating to the Lunar New Year, as was evident by the improved readings that were derived from averaging the series over both January and February (Figure 1). Nevertheless, they did also signal a deeper than expected slowdown in broad output which some analysts now believe could continue well into the second quarter of 2012. Admittedly, one or two data points are insufficient to derail China’s slowly improving growth story, but taking it for granted is equally erroneous. Unfortunately, the growth scare is not the end of China’s problems. Ahead of this year’s National People’s Congress, a raft of stricter-than-expected housing restrictions was issued on 1 March, the shock of which caused China’s benchmark CSI300 to collapse by 4.6%. This represented its single largest daily loss since mid 2010 and sent markets across Asia into a sharp correction. In response to a property sector that has been showing signs of reheating, the measures included levying a 20% capital gains tax on existing home sales (which, in practice, will be difficult to enforce); and requesting cities with excessive price gains to raise the down-payment ratio and mortgage rates on second homes (which should be relatively straightforward to implement).

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China Manufacturing PMI (rolling 2 month moving average)

China Non-Manufacturing PMI (rolling 2 month moving average)

China’s consensus growth

outlook has been subject to

greater market scrutiny.

Seasonal distortions related to

the Lunar New Year.

Housing restrictions include

levying a 20% capital gains

tax on existing home sales.

Quadrant Asia │7 March 2013 3

While the two measures are likely to materially reduce transaction volumes, it is unclear (given the still rampant demand for property) whether they will result in meaningful price falls. In any case, the measures are likely only to impact Tier 1 cities (such as Beijing and Shanghai), since Tier 2 and 3 cities have yet to experience meaningful price gains (Figures 2 and 3).

Figure 2: China’s primary market property price change Figure 3: China’s secondary market property price change

Source: Citi Private Bank using Citi Research and Soufun data as at March 5, 2013. Source: Citi Private Bank using Citi Research and Soufun data as at March 5, 2013.

In fact, if the current measures are anything like previous house price ‘cooling’ initiatives, it is more likely that they will impact the shares of property developers rather than real estate values. The reality is that, for existing or future home owners, credible alternative investments to China’s property market are few and far between. And so, while the proposed property tax certainly represents a deterrent, the lack of safe, viable investment options – compounded by surging property demand caused by ongoing urbanization – means that homeowners will simply have to bear the pain and pay up. All of this emphasizes the importance of constantly reviewing and monitoring China’s equity investment case. We acknowledge that China’s GDP growth is likely to improve, but in a U-shaped rather than V-shaped trajectory; as such, there are likely to be further road bumps ahead. Global equity investors would appear to agree with our more cautious view. In the last week of February 2013, for example, more foreign investment capital was withdrawn from China equity markets than in the previous two years. The price volatility evident in such outflows is another reason why we remain underweight in the country (see Figure 4).

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China’s equity investment

case requires constant review

and monitoring.


Figure 4: China’s fund flows and the MSCI China Index performance

Source: Citi Private Bank using Bloomberg data as at March 5, 2013.

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China offshore fund flow US$ mln (RHS)

MSCI China (offshore) Index (LHS)

China's first weekly funds outflow in 25 weeks

Outlfow

Inflow


Tsunami or trickle ?

The expectation of sustained, ‘opened-ended’ monetary easing – or quantitative easing - by central banks is probably the principal reason why equity markets have performed so well in recent years. It also helps that the available, investible universe of credible liquid assets is relatively small, with unattractive yields on core government bonds deterring investment on one side; and an increasing aversion among investors for the sovereign bonds of Italy, Spain and France on the other. As such, emerging markets have proven themselves to be a natural beneficiary. QE is particularly important to Asia, especially given the proportionately large amount of developed market capital that finds its way to this region in search of (relatively better) growth and earnings. As Figure 5 and 6 makes clear, there is a reasonably direct relationship between equity capital inflows and price performance, with the QE-related surge in inflows in the third quarter of 2012 driving local markets, particularly those in North Asia.

Figure 5: Asia ex Japan equity capital flows and stock market

performance

Figure 6: North Asia equity capital flows and the Hang Seng Index

performance

Source: Citi Private Bank using Citi Research and EPFR data as at March 5, 2013.

Past performance is not a guarantee of future results.

Source: Citi Private Bank using Citi Research and EPFR data as at March 5, 2013.

In other words, central bank activism is critical to market performance. This was demonstrated in mid-February, after comments from the Federal Reserve hinted that the central bank might soon be winding up its QE programme. The merest reference to a so-called ‘exit strategy’ among central banks caused markets to tumble across Asia, so in his testimony the following week (28 February) before Congress, Fed chairman Ben Bernanke went out of his way to calm those fears. Despite central bank protestations to the opposite, we all know that quantitative easing cannot last forever. The Fed subtly communicated this in its minutes, essentially forcing equity investors to contemplate the day when a monthly credit injection in the range of US$85 billion no longer supports the market.

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Asia x Japan Regional and Country Equity Funds (4-week total US$ mln, LHS)

MSCI AC Asia Ex. Japan Index (RHS)

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ASEAN (LHS) North Asia (LHS)

India (LHS) Hang Seng Index (RHS)

QE is particularly important to

Asia.

As we all know, quantitative

easing cannot last forever.


Admittedly, the withdrawal of liquidity was not a mindset readily shared by many investors in the first week of March, as reflected by the Dow Jones Industrial Index which reached an all-time record high. However, it is also the case that 10-year US Treasury yields appear to be on the rise, hitting a low 1.4% in July 2012 before subsequently edging higher to close above 2.0% in February 2013. At least part of the market appears to be pricing in the expectation of reduced Fed support for yields in the not too distant future.


Our currency, your problem….

As a final point on QE and capital flows, we should also discuss the US dollar which, as Figure 7 makes clear, has been one of – if not the – most important driver of Asia’s economic fundamentals, asset valuations and market technicals. Typically, US dollar weakness breathes growth into economies and liquidity into assets, while dollar strength does the opposite, sucking capital from the region and inducing risky assets to unwind. Which is why, in recent weeks, strength in the US dollar (as represented by the DXY Index) is potentially concerning. For example, the DXY Index has rallied almost 3.6% in a single month while the MXASJ has declined just 1% over the same period. To say the least, this disconnect is a little worrying.

Figure 7: Asia’s currency and equity markets are driven by the

same capital flows

Figure 8: US budget balance and the US dollar

Source: Citi Private Bank using Bloomberg data as at March 5, 2013. Source: Citi Private Bank using Bloomberg data as at March 5, 2013.

During the period from 2000 to 2009, for example, the US’s budget balance as a percentage of GDP deteriorated from around 2% to -10%; over the same period, as Figure 8 makes all too clear, the DXY Index fell from approximately 120 to 80 points, a decline equivalent to 35%. We should also point out that over precisely the same period, the MXASJ increased by 115%. A near-term take-away is that, as the US gradually removes its various stimulus packages and fiscal consolidation accelerates, the US dollar is likely to further appreciate. This trend could likely accelerate if the ECB takes further steps to weaken the euro in a bid to stimulate growth. A medium-term take-away is that, as the country’s external balances improve, its energy independence accelerates, and its budget becomes more balanced, the structural foundations for further US dollar strength are expected to grow. All this adds to the likelihood that the equity correction will continue to run further, as the stated risks become gradually priced in. Given the head of steam built up by the bulls over the past few months, it would take a combination of sell catalysts to slow them down; and this is exactly what we are now seeing.

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JP Morgan Asia Dollar Index MSCI AC Asia Ex. Japan Index

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US Budget Balance (% GDP, LHS) DXY Index (RHS)

Bloomberg consensus

forecast

US dollar weakness breathes

growth into economies and

liquidity into assets

The US dollar is likely to

further appreciate.

We suspect that the equity

correction has further to run.


But don’t just take our word for it – also look at the less-than-exuberant behavior of Asia’s credit spreads. Credit spreads measure the yield paid on corporate bonds over a low-risk benchmark, typically government bonds. Higher spreads suggest that investors see greater risk in corporate bonds and therefore demand a higher yield in order to buy the debt. Credit spreads can be viewed as an anxiety index for investors. When the spread rises, investors are expressing a more fearful outlook for corporate bond issuers.

Figure 9: Asia’s credit spreads and comparable stock market index

Source: Citi Private Bank using HSBC and Bloomberg data as at March 5, 2013.

Usually spreads and equity markets trade in a negative relationship to one another. When spreads rise, share prices fall. In recent months, however, both spreads and equity markets have trended higher and wider (see Figure 9). Analysts have named this phenomenon ‘divergence’. It is unusual and unlikely to last. Either equities or bond spreads will decline, and our bet is that it will be equities.

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MSCI AC Asia Ex. Japan Index (LHS)

HSBC Asia USD Bond Index Avg Spread (RHS)

New equity market highs

... not followed by new credit spread lows


Asia Pacific portfolio allocations

This section shows the strategic and tactical allocations for risk level 3 set by Citi Private Bank’s Global Investment Committee on 27 February 2013.

Risk level 3 Risk level 3 is designed for investors with a blended objective who require a mix of assets and seek a balance between investments that offer income and those positioned for a potentially higher return on investment. Risk level 3 may be appropriate for investors willing to subject their portfolio to additional risk for potential growth in addition to a level of income reflective of his/her stated risk tolerance.

Table 2. Citi’s Asia Pacific strategic and tactical allocations

Asset class Strategic (%) Tactical (%) Active (%)

Cash and fixed income 35.0 35.0 0.0

Cash and currencies 5.0 0.0 -5.0

Investment grade 10.0 10.0 0.0

High yield 10.0 12.0 2.0

Local currency debt 10.0 13.0 3.0

Equities 55.0 55.0 0.0

Japan 15.0 16.0 1.0

Far East Asia ex Japan 5.0 5.5 0.5

Hong Kong 3.0 3.0 0.0

Singapore 2.0 2.5 0.5

Emerging Asia 23.5 22.0 –1.5

China 6.5 5.0 –1.5

Taiwan 4.5 4.5 0.0

India 3.0 3.0 0.0

Indonesia 1.0 1.0 0.0

South Korea 6.0 6.0 0.0

Malaysia 1.5 1.5 0.0

The Philippines 0.5 0.5 0.0

Thailand 0.5 0.5 0.0

Australasia 11.5 11.5 0.0

Australia 11.0 11.0 0.0

New Zealand 0.5 0.5 0.0

Hedge funds 10.0 10.0 0.0

Source: Citi Private Bank showing Office of the GIC’s asset allocation for Asia as at last Global Investment Committee,

February 27, 2013.

Strategic = benchmark; tactical = the Citi Private Bank Global Investment Committee’s current view; and active = the difference between strategic and tactical. All allocations are subject to change at discretion of the GIC of the Citi Private Bank.


Risk level 3: Asia Pacific tactical allocation

Strategic = benchmark; tactical = the Citi Private Bank Global Investment Committee’s current view; and active = the difference

between strategic and tactical. All allocations are subject to change at discretion of the GIC of the Citi Private Bank.

Core positions

On 8 February 2013, we rebalanced our overweight position in bonds and

underweight position in equities to neutral, to reflect Asia’s medium-term

improving fundamentals, favourable valuations and technicals. Rather than

moving wholly overweight in equities, a neutral allocation factors in the risk

of a possible short-term correction.

Within our bond allocation, we are overweight USD high-yield and local

currency bonds; neutral on USD high grades; and underweight cash and

currencies.

In terms of equities, we remain positive towards Japan and Singapore and

underweight in China. We also remain neutral towards defensives and

cyclicals in our sector allocation.

At its last monthly meeting on 27 February, the Global Investment

Committee (GIC) decided to leave the asset class weights unchanged

from 8 February. The GIC agrees that, while the medium-to-long term

outlook is gradually brightening, markets may see some consolidation in

the short-term.

Here in Asia, short term weakness could provide a more attractive point to

add to our positions in risk assets. We expect North Asia equities to

particularly benefit from the brighter global outlook relative to South Asia.

Cash and currencies (-5.0%)

5.0% Investment grade (0.0%)

10.0%

High yield(2.0%)

10.0%

Local currency debt (3.0%)

10.0%

Japan equities(1.0%)

15.0%

Far East Asia ex Japan equities

(0.5%)5.0%

Emerging Asia equities

(-1.5%)23.5%

Australasia equities(0.0%)

11.5%

Hedge funds(0.0%)

10.0%


Notes


Asset allocation definitions

Asset classes Benchmarked against

Global equities MSCI All Country World Index, which represents 48 developed and emerging equity markets. Index components

are weighted by market capitalization.

Global bonds Barclays Capital Multiverse (Hedged) Index, which contains the government-related portion of the Multiverse Index,

and accounts for approximately 14% of the larger index.

Hedge funds HFRX Global Hedge Fund Index, which is designed to be representative of the overall composition of the hedge fund

universe. It comprises all eligible hedge fund strategies; including but not limited to convertible arbitrage, distressed

securities, equity hedge, equity market neutral, event driven, macro, merger arbitrage and relative value arbitrage.

The strategies are asset-weighted based on the distribution of assets in the hedge fund industry.

Commodities Dow Jones-UBS Commodity Index, which is composed of futures contracts on physical commodities traded on US

exchanges, with the exception of aluminum, nickel and zinc, which trade on the London Metal Exchange (LME). The major

commodity sectors are represented including energy, petroleum, precious metals, industrial metals, grains, livestock, softs,

agriculture and ex-energy.

Cash Three-month LIBOR, which is the interest rates that banks charge each other in the international inter -bank market for

three-month loans (usually denominated in Eurodollars).

Equities

Developed market

large cap

MSCI World Large Cap Index, which is free-float adjusted and weighted by market capitalization. The index is designed

to measure the equity market performance of the large cap stocks in 23 developed markets. Large cap is defined as stocks

representing roughly 70% of each market’s capitalization.

US Standard & Poor’s 500 Index, which is a capitalization-weighted index that includes a representative sample of 500 leading

companies in leading industries of the US economy. Although the S&P 500 focuses on the large cap segment of the

market, with over 80% coverage of US equities, it is also an ideal proxy for the total market.

Europe ex UK MSCI Europe ex UK Large Cap Index, which is free-float adjusted and weighted by market capitalization. The index

is designed to measure large cap stock performance in each of Europe’s developed markets, except for the UK.

UK MSCI UK Large Cap Index, which is free-float adjusted and weighted by market capitalization. The index is designed

to measure large cap stock performance in the UK.

Japan MSCI Japan Large Cap Index, which is free-float adjusted and weighted by market capitalization. The index is designed

to measure large cap stock performance in Japan.

Asia Pacific ex Japan MSCI Asia Pacific ex Japan Large Cap Index, which is free-float adjusted and weighted by market capitalization. The index

is designed to measure the performance of large cap stocks in Australia, Hong Kong, New Zealand and Singapore.

Developed market small

and mid cap (SMID)

MSCI World Small Cap Index, which is a capitalization-weighted index that measures small cap stock performance

in 23 developed equity markets.

Emerging market MSCI Emerging Markets Index, which is free-float adjusted and weighted by market capitalization. The index is designed

to measure equity market performance of 22 emerging markets.

Bonds

Developed sovereign Citi World Government Bond Index (WGBI), which consists of the major global investment grade government bond markets

and is composed of sovereign debt, denominated in the domestic currency. To join the WGBI, the market must satisfy size,

credit and barriers-to-entry requirements. In order to ensure that the WGBI remains an investment grade benchmark,

a minimum credit quality of BBB–/Baa3 by either S&P or Moody's is imposed. The index is rebalanced monthly.

Emerging sovereign Citi Emerging Market Sovereign Bond Index (ESBI), which includes Brady bonds and US dollar-denominated emerging

market sovereign debt issued in the global, Yankee and Eurodollar markets, excluding loans. It is composed of debt in

Africa, Asia, Europe and Latin America. We classify an emerging market as a sovereign with a maximum foreign debt rating

of BBB+/Baa1 by S&P or Moody's. Defaulted issues are excluded.

Supranationals Citi World Broad Investment Grade Index (WBIG)—Government Related, which is a subsector of the WBIG. The index

includes fixed rate investment grade agency, supranational and regional government debt, denominated in the domestic

currency. The index is rebalanced monthly.

Corporate investment

grade

Citi World Broad Investment Grade Index (WBIG)—Corporate, which is a subsector of the WBIG. The index includes fixed

rate global investment grade corporate debt within the finance, industrial and utility sectors, denominated in the domestic

currency. The index is rebalanced monthly.

Corporate high yield Barclays Global High Yield Corporate Index. Provides a broad-based measure of the global high yield fixed income

markets. It is also a component of the Multiverse Index and the Global Aggregate Index.

Securitized Citi World Broad Investment Grade Index (WBIG)—Securitized, which is a subsector of the WBIG. The index includes

global investment grade collateralized debt denominated in the domestic currency, including mortgage -backed securities,

covered bonds (Pfandbriefe) and asset-backed securities. The index is rebalanced monthly.


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Although information in this document has been obtained from sources believed to be reliable, Citigroup Inc. and its affiliates do not guarantee its accuracy or completeness and accept no liability for any direct or consequential losses arising from its use. Throughout this publication where charts indicate that a third party (parties) is the source, please note that the attributed may refer to the raw data received from such parties. No part of this document may be copied, photocopied or duplicated in any form or by any means, or distributed to any person that is not an employee, officer, director, or authorized agent of the recipient without Citigroup Inc.’s prior written consent. Citigroup Inc. may act as principal for its own account or as agent for another person in connection with transactions placed by Citigroup Inc. for its clients involving securities that are the subject of this document or future editions of the Quadrant and Quadrant Asia. Bonds are affected by a number of risks, including fluctuations in interest rates, credit risk and prepayment risk. In general, as prevailing interest rates rise, fixed income securities prices will fall. Bonds face credit risk if a decline in an issuer’s credit rating, or creditworthiness, causes a bond’s price to decline. High yield bonds are subject to additional risks such as increased risk of default and greater volatility because of the lower credit quality of the issues. Finally, bonds can be subject to prepayment risk. When interest rates fall, an issuer may choose to borrow money at a lower interest rate, while paying off its previously issued bonds. As a consequence, underlying bonds will lose the interest payments from the investment and will be forced to reinvest in a market where prevailing interest rates are lower than when the initial investment was made. Alternative investments referenced in this report are speculative and entail significant risks that can include losses due to leveraging or other speculative investment practices, lack of liquidity, volatility of returns, restrictions on transferring interests in the fund, potential lack of diversification, absence of information regarding valuations and pricing, complex tax structures and delays in tax reporting, less regulation and higher fees than mutual funds and advisor risk. Asset allocation does not assure a profit or protect against a loss in declining financial markets. The indexes are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. Index returns do not include any expenses, fees or sales charges, which would lower performance. Past performance is no guarantee of future results. International investing entails greater risk, as well as greater potential rewards compared to US investing. These risks include political and economic uncertainties of foreign countries as well as the risk of currency fluctuations. These risks are magnified in countries with emerging markets, since these countries may have relatively unstable governments and less established markets and economics.


Investing in smaller companies involves greater risks not associated with investing in more established companies, such as business risk, significant stock price fluctuations and illiquidity. Factors affecting commodities generally, index components composed of futures contracts on nickel or copper, which are industrial metals, may be subject to a number of additional factors specific to industrial metals that might cause price volatility. These include changes in the level of industrial activity using industrial metals (including the availability of substitutes such as man-made or synthetic substitutes); disruptions in the supply chain, from mining to storage to smelting or refining; adjustments to inventory; variations in production costs, including storage, labor and energy costs; costs associated with regulatory compliance, including environmental regulations; and changes in industrial, government and consumer demand, both in individual consuming nations and internationally. Index components concentrated in futures contracts on agricultural products, including grains, may be subject to a number of additional factors specific to agricultural products that might cause price volatility. These include weather conditions, including floods, drought and freezing conditions; changes in government policies; planting decisions; and changes in demand for agricultural products, both with end users and as inputs into various industries. The information contained herein is not intended to be an exhaustive discussion of the strategies or concepts mentioned herein or tax or legal advice. Readers interested in the strategies or concepts should consult their tax, legal, or other advisors, as appropriate. Citi Private Bank is a business of Citigroup Inc. (“Citigroup”), which provides its clients access to a broad array of products and services available through bank and non-bank affiliates of Citigroup. Not all products and services are provided by all affiliates or are available at all locations. In the US, brokerage products and services are provided by Citigroup Global Markets Inc. (“CGMI”), member SIPC. Accounts carried by Pershing LLC, member FINRA, NYSE, SIPC. CGMI and Citibank, N.A are affiliated companies under the common control of Citigroup. Outside the US, brokerage products and services are provided by other Citigroup affiliates. Investment Management services (including portfolio management) are available through CGMI, Citibank, N.A. and other affiliated advisory businesses. In Hong Kong, this document is issued by CPB operating through Citibank, N.A., Hong Kong branch, which is regulated by the Hong Kong Monetary Authority. Any questions in connection with the contents in this document should be directed to registered or licensed representatives of the aforementioned entity. In Singapore, this document is issued by CPB operating through Citibank, N.A., Singapore branch, which is regulated by the Monetary Authority of Singapore. Any questions in connection with the contents in this document should be directed to registered or licensed representatives of the aforementioned entity. In the United Kingdom, Citibank N.A., London, and Citibank International plc, Citigroup Centre, Canada Square, Canary Wharf, London, E14 5LB are authorized and regulated by the Financial Services Authority. In Jersey, this document is communicated by Citibank N.A., Jersey Branch which has its registered address at PO Box 104, 38 Esplanade, St Helier, Jersey JE4 8QB. Citibank N.A., Jersey Branch is regulated by the Jersey Financial Services Commission to conduct deposit-taking business under the Banking Business (Jersey) Law 1991 and investment business under the Financial Services (Jersey) Law 1998. Citibank N.A., Jersey Branch is a member of the Depositors Compensation Scheme as set out in the Banking (Depositors Compensation) (Jersey) Regulations 2009. Further details of the scheme are available on request. Citi and Citi with Arc Design are registered service marks of Citigroup Inc. or its affiliates. © Copyright 2013, Citigroup Inc. IPhone and iPad are trademarks of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc

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Asia

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Published 7 March 2013 Citigroup Global Markets Inc.

Economy & Finance

Citi - Quadrant Asia - March 2o13