No provision for capital gains tax (CGT) will be derived from the trading of A-shares, bar those derived from the trading of PRC resident enterprises defined as “Land Rich Companies”. Further, Z-Ben Advisors believe that this LRC provision extends to HK-domiciled RQFII funds only. The European outlook suggests that no withholding provision will be made as stated by Source/CSOP in their CSOP Source FTSE China A50 UCITS ETF prospectus, we expect Deutsche Bank/Harvest to follow suit with their db x-trackers Harvest CSI300 Index UCITS ETF . Below is Z-Ben Advisors’ LRC breakdown of what we understand constitutes a Land Rich Company and what proportion these contribute to the CSI 300 and FTSE China A50 indices.

Land Rich Companies CSI 300 Weight: 12.15% 50 45 45 Real Estate Sector Port and Railway Sector 40 Beijing Tianhong Baoye Real Estate Co Ltd Daqin Railway Co Ltd 35 China Merchants Property Development Co Ltd Ningbo Port Co Ltd China Vanke Co Ltd 30 Shanghai International Airport Co Ltd Financial Street Holding Co Ltd 25 Shanghai International Port (Group) Co Ltd 20 Gemdale Corporation Poly Real Estate Group Co Ltd Oil and Gas Sector 15 A Risesun Real Estate Development Co Ltd China Petroleum and Chemical Corp (Sinopec) 10 7 Shanghai Lujiazui Finance and Trade Zone Development Co Ltd PetroChina Co Ltd 5 Shanghai Oriental Pearl (Group) Co Ltd Mining Sector 0 Shanghai Wai Gaoqiao Free Trade Zone Development Co Ltd CSI 300 FTSE China A 50 Aluminum Corporation of China Limited Shanghai Yuyuan Tourist Mart Co Ltd Anhui Hengyuan Coal Industry and Electricity Power Co Ltd Shanghai Zhangjiang Hi-tech Park Development Co Ltd Chenzhou Mining Group Co Ltd Shenzhen Overseas Chinese Town Co Ltd China Coal Energy Co Ltd Suning Universal Co Ltd China Molybdenum Co., Ltd. What is a Land Rich Company? Zhejiang China Commodities City Group Co Ltd China Shenhua Energy Co Ltd Datong Energy Chemical Co Ltd Asset breakdown: FTSE China A50 Weight: 11.21% Guizhou Panjiang Refined Coal Co Ltd Henan Shen Huo Coal Industry and Electricity Power Co Ltd . A minimum of 50% or more of the share value of the company consists Constituent name Sector Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co Ltd directly or indirectly of immovable property (Land Rich Test). China Petroleum & Chemical (A) Oil & Gas Jiangxi Copper Co Ltd PetroChina (A) Oil & Gas Jinduicheng Molybdenum Co Ltd Immoveable property definition: China Shenhua Energy (A) Mining Sector Jizhong Energy Resources Co Ltd . The scope of immoveable property includes operational or non- Daqin Railway (A) Port and Railway Sector Kailuan Clean Coal Co Ltd operational housing properties, land use rights, and attached fixtures. Shanghai International Port (A) Port and Railway Sector Pingdingshan Tianan Coal Mining Co Ltd Shanxi Guanlu Co Ltd China Vanke (A) Real Estate Poly Real Estate Group (A) Real Estate Shanxi Xishan Coal And Electricity Power Co Ltd Accessibility period: Western Mining Co Ltd . Assets of the nature above must be held for a three year look back Xiamen Tungsten Co Ltd period prior to the month of share transfer, this asset breakdown will Yang Quan Coal Industry (Group) Co., Ltd be accessed in accordance with current PRC accounting standards. Yanzhou Coal Mining Co Ltd Yunnan Copper Co Ltd Yunnan Tin Co Ltd Zijin Mining Group Co Ltd Source: Z-Ben Advisors

NOTE: This list is for illustrative purposes only and we advise clients to seek appropriate professional advice before any implementation

Z-Ben Advisors