Selection Criteria

Hang Seng China-Affiliated Corporations Index is created after thorough analysis and consultation with the investment community. Its constituent companies are carefully selected according to the following criteria:

1. The company should have at least 35% shareholding directly held by either:
   1. China entities which are defined to include state-owned organizations, provincial or municipal authorities in China; OR

   2. Listed or privately owned Hong Kong companies (Hong Kong or overseas incorporated) which are controlled by 1(a) above;

2. The company should have been listed for at least 12 months on The Stock Exchange of Hong Kong Limited;

3. The company should have at least 12 months of trading record after having satisfied criterion (1) above;

4. The company should not have more than 20 trading days without turnover during the past 12 months, not counting days when the company is suspended from trading;

5. The company must not be a constituent stock of the Hang Seng China Enterprises Index.

The list of constituent stocks will be reviewed on a quarterly basis and any changes will be announced.