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Index Construction of the S&P China 500

S&P China 500 Index

The S&P China 500 comprises 500 of the largest, most liquid Chinese companies while approximating the sector composition of the broader Chinese equity market. All Chinese share classes including A-shares and offshore listings are eligible for inclusion.

Index Construction of the S&P China 500

Having been designed as the “S&P 500® for China,” the index reflects many key features of the U.S. market barometer S&P 500. For instance, the S&P China 500 consists of the 500 largest Chinese companies by total market cap with diverse sector exposure and includes their multiple listings that qualify for the market cap and liquidity criteria.

Exhibit: Major Index Construction Rules of the S&P China 500 and the S&P 500
METHODOLOGY S&P CHINA 500 S&P 500

Index Membership

S&P Total China BMI

All companies domiciled in the U.S.

Country of Domicile

China

U.S.

Listing Venue

All exchanges globally

NYSE, NYSE Arca, NYSE MKT,
NASDAQ Global Select Market, NASDAQ Select Market, or NASDAQ
Capital Market

Number of
Companies

500

500

Share Count

Variable

Variable

Eligible Share Classes

A, B, H Shares, Red Chips, P Chips,

U.S. or other exchange listed shares.

ADRs are included.

Only common equities. No ADRs.

Size Criteria

Float Market Cap >= USD 300

million

Total Market Cap >= USD 5.3 billion

Liquidity Criteria

6-month Median Daily Value Traded

>= USD 1 million; Annual Float- Adjusted Turnover >= 60%

1-month Traded Volume >= 250,000 shares for each of the past six months; Annual Float-Adjusted Turnover
>=100%

Public Float

No requirement

Public Float >= 50%

Sector Composition

Approximate broad market GICS
sector composition

Index versus market weight of each GICS sector is considered

Financial Viability

No requirement.

Trailing four quarter reported earnings
and latest quarter reported earnings > 0.

Treatment of IPOs

No requirement on trading history.

Must be seasoned for 6 to 12 months.

Index Construction

Companies are ranked by total market cap within each GICS sector. Largest company in the most underweighted sector compared to market is selected until stock count reaches 500.

Index membership eligibility is based on companies’ total market cap. Sector balance relative to the broad market is considered by the index committee in determining index additions.

Multiple Share Classes

All eligible share classes that qualify for the market cap and liquidity

criteria are included.

All eligible share classes that qualify for the market cap and liquidity criteria are
included.

Weighting Method

Float-adjusted market cap weighted.

Float-adjusted market cap weighted.

Rebalance Frequency

Semiannually on third Friday of June

and December.

Changes are made as needed.

Source: S&P Dow Jones Indices LLC. Annual float-adjusted turnover is calculated as annual USD value traded divided by float-adjusted market cap. Table is provided for illustrative purposes. As- reported earnings are Generally Accepted Accounting Principles (GAAP) net income excluding discontinued operations and extraordinary items.

Compared with other onshore or offshore China indices, the S&P China 500 has more complete coverage of the China equity market, as it includes not only onshore but also offshore Chinese listings.

Exhibit: Market Coverage of S&P China 500 Versus Other China Indices

MARKET COVERAGE

ONSHORE

OFFSHORE

ONSHORE/ OFFSHORE

SHARE CLASS COVERAGE

S&P CHINA A 300 INDEX

CSI 300

FTSE A50

HSCEI

FTSE 50

MSCI CHINA

S&P CHINA
500

China-Listed A Shares

Yes

Yes

Yes

No

No

No

Yes

China-Listed B Shares

No

No

No

No

No

Yes

Yes

Hong Kong-Listed H Shares

No

No

No

Yes

Yes

Yes

Yes

Hong Kong-Listed Red Chips and P Chips

No

No

No

No

Yes

Yes

Yes

U.S.-Listed Shares and ADR

No

No

No

No

No

Yes

Yes

Other Exchange- Listed Shares

No

No

No

No

No

Yes

Yes

Source: S&P Dow Jones Indices LLC, websites of index providers. Table is provided for illustrative purposes.

As a majority of Chinese financials companies are large and tend to rank high by market cap, their concentration and sector weight in the large-cap segment tends to be much higher than that in the broad market. To avoid this sector bias, which is seen in many onshore and offshore China largecap indices, the S&P China 500 is designed with a unique feature that approximates sector composition of the broad market during the stock selection process.

ICBC Credit Suisse Asset Management (International) Company Limited.,Beijing ICP preparation 05063708