Hang Seng Indexes Announces Index Review Results

Hang Seng Indexes Announces Index Review Results

15 August 2014 HANG SENG INDEXES ANNOUNCES INDEX REVIEW RESULTS Hang Seng Indexes Company Limited (“Hang Seng Indexes”) today announced the results of its review of the Hang Seng Family of Indexes for the quarter ended 30 June 2014. All changes will be effective on 8 September 2014 (Monday). 1. Hang Seng Index There is no change to the constituents of the Hang Seng Index. The total number of constituents is fixed at 50. The list of constituents is provided in Appendix 1. Change in Index Weighting Methodology The Hang Seng Index adopts a freefloat-adjusted market capitalisation weighted methodology with a 15% cap on individual stock weightings. Following a review on this, it was decided that the 15% cap should be lowered to 10%. This change will be phased in over the next 12 months through five rounds of index rebalancing. Details of the rebalancing schedule are set out below: After Market Close on Capping Level 5 Sep 2014 (Fri) 14% 5 Dec 2014 (Fri) 13% 6 Mar 2015 (Fri) 12% 5 Jun 2015 (Fri) 11% 4 Sep 2015 (Fri) 10% Eligibility of Real Estate Investment Trusts (“REITs”) Hang Seng Indexes has been compiling a Hang Seng REIT Index since October 2008 to provide a performance benchmark for all REITs listed in Hong Kong, as REITs are generally not eligible for inclusion in the Hang Seng equity index series. Following a review on this, it was decided that REITs will become eligible for selection for all indexes in the Hang Seng Family of Indexes, including the Hang Seng Index, starting from the next index review. more… HANG SENG INDEXES ANNOUNCES INDEX REVIEW RESULTS/ 2 2. Hang Seng China Enterprises Index There is no change to the constituents of the Hang Seng China Enterprises Index. The total number of constituents is fixed at 40. The list of constituents is provided in Appendix 2. 3. Hang Seng Composite LargeCap / MidCap Index The following constituent changes will be made to the Hang Seng Composite LargeCap Index / MidCap Index. The total number of constituents for these two indexes will increase from 239 to 247. Inclusion: Code Company 173 K. Wah International Holdings Ltd. 177 Jiangsu Expressway Co. Ltd. - H Shares 283 Goldin Properties Holdings Ltd. 530 Goldin Financial Holdings Ltd. 732 Truly International Holdings Ltd. 1111 Chong Hing Bank Ltd. 1165 Shunfeng Photovoltaic International Ltd. 1619 Tianhe Chemicals Group Ltd. 1638 Kaisa Group Holdings Ltd. 1668 China South City Holdings Ltd. 1999 Man Wah Holdings Ltd. 2202 China Vanke Co., Ltd. - H Shares 3380 Logan Property Holdings Co. Ltd. 3898 Zhuzhou CSR Times Electric Co., Ltd. - H Shares more… HANG SENG INDEXES ANNOUNCES INDEX REVIEW RESULTS/ 3 Removal: Code Company 189 Dongyue Group Ltd. 210 Daphne International Holdings Ltd. 341 Cafe de Coral Holdings Ltd. 631 Sany Heavy Equipment International Holdings Co. Ltd. 845 Glorious Property Holdings Ltd. 848 Maoye International Holdings Ltd. The complete review results of the Hang Seng Composite Index and its sub-indexes have been released in a separate index notice. Expansion of Hang Seng Composite Index (“HSCI”) Fast Entry Rule Constituent reviews of the HSCI are undertaken twice a year after the end of the second quarter and the fourth quarter. Fast admission of newly listed large cap stock is allowed under the existing fast entry rule, i.e. a newly listed stock will be added to the HSCI and its sub-indexes at the market close of its 10th trading day if its market value ranks within the top 10% of existing HSCI constituents (in terms of number of constituents) at the close of its first trading day. Following a review on this, it was decided that the fast entry rule will be expanded as follows: Stocks that are newly listed in the first or third quarter of each year and that meet the criteria for joining the LargeCap / MidCap indexes will join the respective indexes and the HSCI on the rebalancing date in June or December respectively. 4. Hang Seng China A Industry Top Index The following constituent changes will be made to the Hang Seng China A Industry Top Index. The total number of constituents will remain at 50. Inclusion: Code Company 000333 Midea Group Co., Ltd. 000725 BOE Technology Group Co., Ltd. 600018 Shanghai International Port (Group) Co., Ltd. 600023 Zhejiang Zheneng Electric Power Co., Ltd. 600703 Sanan Optoelectronics Co., Ltd. more… HANG SENG INDEXES ANNOUNCES INDEX REVIEW RESULTS/ 4 Removal: Code Company 000858 Wuliangye Yibin Co., Ltd. 600031 Sany Heavy Industry Co., Ltd. 600100 Tsinghua Tongfang Co., Ltd 600406 NARI Technology Co., Ltd. 600642 Shenergy Co., Ltd. 5. Hang Seng Corporate Sustainability Index Series Hang Seng Corporate Sustainability Index The following constituent changes will be made to the Hang Seng Corporate Sustainability Index (“HSSUS”). The total number of constituents for HSSUS is fixed at 30. Inclusion: Code Company 257 China Everbright International Ltd. 1398 Industrial and Commercial Bank of China Ltd. - H Shares 2018 AAC Technologies Holdings Inc. Removal: Code Company 16 Sun Hung Kai Properties Ltd. 606 China Agri-Industries Holdings Ltd. 857 PetroChina Co. Ltd. - H Shares Hang Seng (China A) Corporate Sustainability Index The following constituent changes will be made to the Hang Seng (China A) Corporate Sustainability Index (“HSCASUS”). The total number of constituents for HSCASUS is fixed at 15. more… HANG SENG INDEXES ANNOUNCES INDEX REVIEW RESULTS/ 5 Inclusion: Code Company 600115 China Eastern Airlines Corporation Limited 601318 Ping An Insurance (Group) Company of China, Ltd. Removal: Code Company 600029 China Southern Airlines Co., Ltd. 601857 PetroChina Co., Ltd. Constituent companies either joining or leaving the HSSUS or the HSCASUS after the review will automatically be included in or excluded from the Hang Seng (Mainland and HK) Corporate Sustainability Index. Hang Seng Corporate Sustainability Benchmark Index The following constituent changes will be made to the Hang Seng Corporate Sustainability Benchmark Index. The total number of constituents increases from 69 to 76. Inclusion: Code Company 17 New World Development Co. Ltd. 817 Franshion Properties (China) Ltd. 883 CNOOC Ltd. 998 China CITIC Bank Corporation Ltd. - H Shares 1929 Chow Tai Fook Jewellery Group Ltd. 2196 Shanghai Fosun Pharmaceutical (Group) Co., Ltd. - H Shares 2883 China Oilfield Services Ltd. - H Shares 3898 Zhuzhou CSR Times Electric Co., Ltd. - H Shares Removal: Code Company 517 COSCO International Holdings Ltd. more… HANG SENG INDEXES ANNOUNCES INDEX REVIEW RESULTS/ 6 Hang Seng (China A) Corporate Sustainability Benchmark Index The following constituent changes will be made to the Hang Seng (China A) Corporate Sustainability Benchmark Index. The total number of constituents increases from 28 to 29. Inclusion: Code Company 601998 China CITIC Bank Corporation Limited The constituents of the various indexes of the Hang Seng Corporate Sustainability Index Series are provided in Appendix 3. 6. Hang Seng China AH Index Series The following constituent changes will be made to the Hang Seng China AH Index Series. The total number of constituents will increase from 54 to 57. Inclusion: Code Company HK Share A Share 338 600688 Sinopec Shanghai Petrochemical Co. Ltd. 347 000898 Angang Steel Co. Ltd. 2202 000002 China Vanke Co., Ltd. 6199 601299 China CNR Corporation Ltd. Removal: Code Company HK Share A Share 564 601717 Zhengzhou Coal Mining Machinery Group Co. Ltd. 7. Hang Seng China A Top 100 Index The following constituent changes will be made to the Hang Seng China A Top 100 Index. The total number of constituents is fixed at 100. more… HANG SENG INDEXES ANNOUNCES INDEX REVIEW RESULTS/ 7 Inclusion: Code Company 000725 BOE Technology Group Co., Ltd. 002142 Bank of Ningbo Co., Ltd. 002415 Hangzhou Hikvision Digital Technology Co., Ltd. 600018 Shanghai International Port (Group) Co., Ltd 600023 Zhejiang Zheneng Electric Power Co., Ltd. 600027 Huadian Power International Corporation Limited 600340 China Fortune Land Development Co., Ltd. 600518 Kangmei Pharmaceutical Co., Ltd. 600583 Offshore Oil Engineering Co., Ltd. 600886 SDIC Power Holdings Co., Ltd. 601225 Shaanxi Coal Industry Company Limited Removal: Code Company 000425 XCMG Construction Machinery Co., Ltd. 000630 Tongling Nonferrous Metals Group Co., Ltd. 000709 Hebei Iron and Steel Co., Ltd. 000825 Shanxi Taigang Stainless Steel Co., Ltd. 000937 Jizhong Energy Resources Co., Ltd. 600005 Wuhan Iron and Steel Co., Ltd. 600068 China Gezhouba Group Co., Ltd. 600150 China CSSC Holdings Ltd. 600348 Yang Quan Coal Industry (Group) Co., Ltd. 601333 Guangshen Railway Company Limited 601666 Pingdingshan Tianan Coal. Mining Co., Ltd. more… HANG SENG INDEXES ANNOUNCES INDEX REVIEW RESULTS/ 8 8. Hang Seng China 50 Index The following constituent changes will be made to the Hang Seng China 50 Index. The total number of constituents is fixed at 50. Inclusion: Code Company HK Share A Share 1044 - Hengan International Group Co. Ltd. 1211 002594 BYD Co., Ltd. 1359 - China Cinda Asset Management Co., Ltd. - 002415 Hangzhou Hikvision Digital Technology Co.,Ltd. - 600018 Shanghai International Port (Group) Co., Ltd Removal: Code Company HK Share A Share 1800 601800 China Communications Construction Co., Ltd. 1880 - Belle International Holdings Ltd. - 000776 GF Securities Co., Ltd. - 000858 Wuliangye Yibin Co.,Ltd - 600019 Baoshan Iron & Steel Co.,Ltd. Other Benchmark & Thematic Indexes The Benchmark and Thematic Indexes in the Hang Seng Family of Indexes were also part of the index review. The review results of the Benchmark Indexes and Thematic Indexes have been released in a separate index notice. HANG SENG INDEXES ANNOUNCES INDEX REVIEW RESULTS/ 9 About Hang Seng Indexes Company Limited The Hang Seng Family of Indexes is managed and compiled by Hang Seng Indexes Company Limited (formerly HSI Services Limited), which is a wholly-owned subsidiary of Hang Seng Bank. The Hang Seng Family of Indexes comprises a wide range of Flagship, Benchmark, Thematic and Strategy indexes that cover stocks listed in Hong Kong and mainland China markets.

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