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Fact Sheet 150% MarketGrader CSI MarketGrader RESEARCH & INDEXES New Economy Index100% The CSI MarketGrader China New Economy Index seeks to follow the most fundamentally sound companies with the best growth prospects in the Consumer Discretionary, Consumer50% Staples, Health Care, and Technology sectors that are domiciled and listed in Mainland China. CSI and MarketGrader have specifically chosen these four sectors as those with the best prospects for growth and the creation of shareholder value in China’s0% equity market as the country’s economic leadership continues to transition to consumption, services and high-tech and away from mostly fixed investments, heavy industry and natural resource development. The index seeks to identify the companies in China with the best growth at a reasonable price (GARP) attributes as the best drivers -50% of long-term capital appreciation. Since the index is equally weighted, it gives each company an equal opportunity to contribute to its overall performance regardless of size or-100% affiliation with the state. 12/31/07 12/31/08 12/31/09 12/31/10 12/30/11 12/31/12 12/31/13 12/31/14 12/31/15 12/30/16 10/31/17 Index Rules Performance CumulativeNew Econ Total Return, June. 2010 - Mar. 2018* Underlying Universe All data as of Mar 30, 2018 300% All A shares listed in the Shanghai and Shen- zhen Stock Exchanges that are covered 250% and rated by MarketGrader, that are not “ST” stocks, and are classified as Consumer 200% Discretionary, Consumer Staples, Health Care and Technology. 150%

Objective 100% Designed to serve as the basis of investment 50% funds providing access to investors to some of the most promising stocks in China. 0%

Weighting -50% The index is equally weighted. -100% 3/30/18 Rebalance Frequency 12/31/07 12/31/08 12/31/09 12/31/10 12/30/11 12/31/12 12/31/13 12/31/14 12/31/15 12/30/16 12/29/17 The index is reconstituted and rebalanced CSI MarketGrader China New Economy SME-ChiNext 100 CSI All Share twice a year on the next trading day after the close of trading on the second Friday in Calendar Year Returns Annualized Returns CSI MG SME CSI All CSI MG SME CSI All June and December. ChiNext ChiNext NE ChiNext Share NE ChiNext Share Selection Criteria 3-Years 4.90% -2.20% -5.60% -2.90% YTD* 1.82% 0.69% 8.45% -3.41% All index components are selected based 5 -Years 18.70% 11.50% 17.60% 12.60% 200 new econ china+hk japan on their overall MarketGrader Grade. Built Since 12/31/07 11.70% 4.00% - 0.30% on a scale between 0 and 100, our Overall 2017 7.34% 12.18% -10.07% 3.68% Grade is based on our 24 fundamental Cumulative Returns indicators, which are broken down into four 2016 -13.28% -23.82% -27.44% -13.31% CSI MG SME CSI All ChiNext analytical categories: Growth, Value, Prof- NE ChiNext Share itability and Cash Flow. All of our indicators 2015 72.96% 59.72% 84.79% 33.78% 3-Years 15.50% -6.50% -16.00% -8.40% and our overall grades are calculated daily 5 -Years 136.10% 72.10% 124.60% 80.80% for all companies under coverage. 2014 19.81% 10.35% 13.38% 48.41% Since 12/31/07 211.90% 49.30% - 2.60% Market Cap Requirements Standard Deviation All index constituents must have a minimum 2013 33.16% 24.92% 83.87% 7.10% CSI MG SME CSI All total market cap of RMB 1.4 billion. At least ChiNext NE ChiNext Share 20% of all index constituents (24 companies) 2012 6.45% 0.34% -1.20% 6.24% 3-Years 31.76% 31.80% 38.11% 28.67% must be designated as large or mid caps according to MarketGrader’s annual size 5 -Years 27.54% 28.34% 35.11% 25.79% 2011 -26.36% -37.04% -35.45% -27.32% classification of all Shanghai and Shen- Since 12/31/07 29.47% 30.67% - 29.83% zhen-listed equities under coverage. 2010 31.89% 27.94% - -2.99% Sharpe Ratio Liquidity Requirements CSI MG SME CSI All ChiNext A minimum 3-month daily traded value of NE ChiNext Share 2009 133.33% 111.98% - 108.10% RMB 14 million and at least RMB 350 million a+HK 3-Years 0.15 -0.07 -0.15 -0.10 in aggregate trading volume in the trailing 150% 5 -Years 0.68 0.41 0.50 0.49 12 months preceding the index selection 2008 -50.56% -54.02% - -64.33% Since 12/31/07 0.4 0.13 - 0.01 date. All values in RMB. *YTD values as of 03/30/2018 All values in RMB. Frequency: Monthly. 100%Sources: CSI, FactSet, MarketGrader.com Sources: CSI, FactSet, MarketGrader.com Licensing opportunities [email protected] Sources: MarketGrader Research, China Securities Index Co., FactSet. +1 (305) 529-1767 *50% The CSI MarketGrader China New Economy 120 Index was first published on March 20, 2015. Backtested performance infor- www.marketgrader.com mation is purely hypothetical and is solely for informational purposes. Backtested performance does not represent actual per- formance, and should not be interpreted as an indication of actual performance. Past performance is not indicative of future results. CSI is a registered trademark of China Securities Index Co. MarketGrader.com © 2018. 0%

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-100% -50% 12/31/07 12/31/08 12/31/09 12/31/10 12/30/11 12/31/12 12/31/13 12/31/14 12/31/15 12/30/16 10/31/17 Fact Sheet -100% MarketGrader CSI MarketGrader RESEARCH & INDEXES New12/31/07 Econ 12/31/08 12/31/09 12/31/10China12/30/11 New 12/31/12Economy12/31/13 Index12/31/14 12/31/15 12/30/16 10/31/17 Index composition data as of Mar 30, 2018 - All currency values in RMB. 300%

New Econ Index Bio Top 20 Stocks by Fundamentals 250% Average Market Cap RMB 51,920.77 300% Ticker Name Grade Median Market Cap RMB 19,196.10 002677.CN Zhejiang Meida Industrial Co. Ltd. 84.43 200% Average 3 Mo. RMB Volume RMB 314,136,869.94 250% 600201.CN Jinyu Bio-Technology Co., Ltd. 81.65 Average 3 Mo. Trading Volume 8,886,771.00 002636.CN Goldenmax International Technol- 81.57 150% Last Rebalance Date 12/11/17 200% 600566.CN HUBEI JUMPCAN PHARMACEUTI- 79.97 Companies Replaced 58 002507.CN Chongqing Fuling Zhacai Group 79.84 100% 150% 002517.CN Kingnet Network Co., Ltd. 78.81 000568.CN Laojiao Company Limited 76.33 50% 100% Fundamental Attributes Median 600519.CN Co., Ltd. 76.10 Trailing P/E Ratio 30.5 0% 002555.CN Wuhu Shunrong Sanqi Interactive 76.00 50% Forward P/E Ratio 24.6 002195.CN Shanghai 2345 Network Holding 75.78 Earnings Yield 3.5% 603898.CN Guangzhou Holike Creative Home 75.66 -50% 0% Price/Book Ratio 7.2 300357.CN Zhejiang Wolwo Bio-Pharmaceuti- 75.38 Revenue Change - 3 Years 97.0% -100% 002415.CN Hangzhou Digital Technol- 75.04 Operating Income Change - 3 Years 175.9% -50%12/31/07 12/31/08 12/31/09 12/31/10 12/30/11 12/31/12 12/31/13 12/31/14 12/31/15 12/30/16 603444.CN1/31/18 G-Bits Network Technology (Xia- 74.95 Operating Margin 21.6% 300061.CN Shanghai Conant Macroflag 74.89 -100% Earnings per Share (EPS) 3-Year Growth 29.3% 002354.CN Dalian Zeus Entertainment Co., Ltd. 74.75 12/31/07 12/31/08 12/31/09 12/31/10Long-Term12/30/11 Debt to Capital12/31/12 12/31/13 12/31/14 12/31/15 7.6% 12/30/16 600779.CN1/31/18 Swellfun Co., Ltd. 74.66 Return on Equity 19.4% 300176.CN Guangdong Hongteo Accurate 74.63 Dividend Yield 0.92% 002027.CN Information Technol- 74.62 002508.CN Hangzhou Robam Appliances Co., 74.56

new econ china+hk Most Selections Since Inceptionjapan 200 Sector Breakdown (based on constituent count) Ticker Name Times Consumer Discretionary 600519.CN Kweichow Moutai Co., Ltd. 22 25.5% new econ 25.5% Consumer Staples china+hk japan 200 600276.CN Co., Ltd. 19 Energy Financials 000568.CN Company Limited 19 Health Care 000858.CN Yibin Co., Ltd. 19 Industrials 000848.CN He Bei Cheng de Lolo Co. Ltd. 18 Materials 000895.CN Henan Shuanghui Investment & 17 Technology 600887.CN Inner Mongolia Yili Industrial Group 17 23.8% Telecommunication 24.7% 600809.CN Shanxi Xinghuacun Fen Wine Fac- 16 Utilities 600763.CN Topchoice Medical Investment 15 002304.CN Jiangsu Yanghe Brewery Joint- 15 002001.CN Zhejiang NHU Co. Ltd. 13 Market Cap Breakdown (based on constituent count) 002294.CN Shenzhen Salubris Pharmaceuticals 13 002415.CN Hangzhou Hikvision Digital Technol- 12 27.3% 002035.CN Vatti Corp. Ltd. 11 600298.CN Angel Yeast Co., Ltd. 11 600436.CN Zhangzhou Pientzehuang Pharma- 11 Large Cap 600201.CN Jinyu Bio-Technology Co., Ltd. 11 Small Cap 600183.CN Shengyi Technology Co., Ltd. 10 600703.CN Sanan Optoelectronics Co., Ltd. 10 72.3% 000915.CN Shandong Shanda Wit Science 10 a+HK

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