EFTA01447422

384 HK Hr 1, 1 13 . 08 • 74 H13 . 10 :13 .181 14000 x14000 17.9'80,000 l2.00 , 1. 13.38 12.80- 236.647M Save Ls fti Act ors • 913 Edit 7.ntraday Chart KraZ) CET= EMI 1=3M11^ • : Track Annotate Hews zoom 0. 13.EO I • 384 HK Ecentr 1108 *Close on 06/15 ---- 11.60 T High on 05/22 02:07 1338 ••• Average 12.3934 I Low on 05/15 21:30 1152 16 16 19 19 20 21 71 22 0- 12.50 -12.0O 11.50 --- Forwarded by Front To. jeevacationegmaitcorn. Cc Paul Mores. Date 04.162014 11:46AM Subject. China Gas Holdings 1384 HK) - consider tactical long-equity position [C] on 05'22,2014 0925 AM ---- Classification: Confidential Jeffrey - Have you looked at China Gas (384.HK)? Consider tactical position - long equity - on potential for a Russia/Chnui nat gas agreement. Gazprom (GAZP.RX, Ste denominated shams) is likely the more common implementation (both charts below). Would argue that the new pipeline diverts existing supply for Gazprom. where it is incremental earnings growth for the likes of China Gas. htto://www.reuters.conilarticle/2014/04/09/russia-china-gas-idUSL6N0N1 IXM20 140409 The original call is on The 3rd Plenum's commitment to environmental reform (specifically reduction of carbon emissions by increasing nat gas usage). The near-term catalyst stems from this week's developments in the Ukranian-Russian crisis. Not surprisingly, with the chill from the Western world threatening demand for Russia's commodity. Putin's accelerated conversations to the east. Market chatter suggests that negotiations on a Russia-China pipeline could divert 38bn cubic meters of gas per year over to China, and that Putin has sped up negotiations with the intent of turning his presently scheduled May 20 visit to China, into a signing ceremony for an export contract. The stock is a hedge fund name. The DB analyst has been less fond (latest rating is hold with a 9 HKD target). I think this is a tactical, geopolitically-driven entry point on a name that's also a compelling long-term growth investment. Right now it's trading close to 25x 2013 EPS gists of 0.50 HICD, bull case is meaningful upside potential in earnings on an uptake of nat gas in China. China Gas (384 HK is fairly liquid - --5mm share avg daily volume over the last month) Tazia CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0102049 CONFIDENTIAL SDNY GM_00248233 EFTA01447422