ment income Shenzhen Electricity Cement production production production Source: Nationa Bureau of Statistics, PROC, China Automotive Information, China Economic Information Network, CLSA-Markit, Haver Analytics. J.P. Morgan Securities LLC, ISI Group, J.P. Morgan Private Bank. * PMI data areindexlevel. Housingprice toincome, ceme

Past performance not i ndicative of future results. 17% Fixed asset investment M2 money supply 12% 2005 2006 2007 2008 2009 So urce:121300, China Economic Information Network 2010 equity markets during Fed tightening periods =500 Index, January. 100 120 115 110 105 100 95 2011 1988 2005 1994 The largest oil d

the RMB. Chinese Inflation vs. FX Appreciation 12% 10% II% 6% 4% 2% 0% .2% '00 72 14 —Mims OM Illi la —IbIrlilligs 0011 IS Source: China Economic Information Network. Bloomberg. Data as of 3/31/11. MPORTANT INFORMATION This presentation and the material contained herein is not a product of the J.P. Morgan Resear

forcrVA.A.N1 Electricity production Cement production Steel production Source: National Bureau& Statistics, PBOC,ChinaAutomptive Infonnatbn, China Economic Information Network, CLSA•Marbt. HaverAnalytics. J.P. Morgan Securities 11O, ISI Group, J.P. Morgan Private Bank. • PMIdata are index levet Housingprice to income. ceme