Qunar Cayman Islands Limited (QUNR) – Covered Short Position

Covered our short position, locking in gains. In our 9/9/2014 call to action we stated we were shorting QUNR based on CTRP removing their products from QUNR’s site.  The stock fell from $31.63 to as low as $29.01 during yesterday’s trading session.  See below for related news on this topic under our ChinaHybrid News not released in U.S.

ChinaHybrid News not released in U.S

CTRP ($62.05) & QUNR ($29.70) – According to Chinanews.com, 16 five-star hotels in the city of Ningbo, Zhejiang Province, removed themselves from the hotel product list of CTRP, and they will only be listed on QUNR afterwards. Briefly speaking, certain hotels participated in a promotion program that QUNR engaged and this program is welcome by the customers in Ningbo. Afterwards CTRP delisted 4 hotels which participated in this program. This activity caused 16 five-star hotels together decided to delist themselves from the product list of CTRP. We don’t think the delisting of 16 hotels will be material to CTRP, but it’s a sign that it is facing more severe competition from QUNR, and it is possible there will be more headwinds in the future.