STRATEGY NOTE. June 22, 2017

Transcription

1 June 22, 2017 Summary. As expected, MSCI decided to include A-shares in the MSCI Emerging Markets Index starting from June However, since MSCI changed the proposal to include A-H dual-listed companies, financials will become the largest sector, with about a 36% weighting, followed by consumer (19.4%) and industrials (15.5%). Some of the leading sectors have already recorded a 20%-47% return YTD, so we may see some profit-taking in the near term. We believe investors with limited experience in the A-share market should initially pay more attention to the following 10 large cap A-share companies: Kweichow Moutai, Midea Group, Ping An Insurance-A, China Merchants Bank-A, Pudong Development Bank, Industrial Bank, China State Construction Engineering, Inner Mongolia BaoTou Steel Union, Hangzhou Hikvision Digital Technology, and China Merchants Shekou Industrial Zone. Financials to become the largest sector in the final proposal. As MSCI decided to add A-H dual-listed stocks to the eligible stock list for market consultation, many dual-listed banks and insurance companies are included in the final version of the stock list. As a result, financials will account for about a 36% weighting among the 222 stocks. Figure 1: MSCI s Methodology for picking the 222 A- caps Sources: MSCI, CGIS Research The switching process should have limited market impact. As the addition of A-shares to the MSCI China Index will be divided into two steps (June 2018 and September 2018), the potential disposal of H-shares and red chips is only marginal. Based on MSCI s estimation, the weighting of H-shares and red chips in the MSCI China Index will drop from the current 50.2% to 49.9% in June 2018 and then to 49.2% in September MSCI estimated that the initial fund inflow to A-shares caused by the index inclusion will be about US$17bn to US$18bn. If we assume everything remains unchanged, this implies potential fund inflow of about US$350bn if A- shares are fully included in the MSCI Emerging Markets Index. US$350bn is equivalent to about 11% of the free float of the whole A- share market. The weighting will be even bigger if MSCI includes A-share mid caps in the index in the future. However, based on the experience of other emerging markets, we believe it may take 8-10 years to achieve full inclusion, unless the Chinese authorities push forward the opening of capital accounts at a much faster pace. 1

2 Figure 2: Weighting of MSCI China index Sources: MSCI, CGIS Research Information Technology has performed the best, while energy has been the weakest YTD. Information Technology has recorded a gain of 47% YTD, led by Hangzhou Hikvision Digital Technology ( CH), which has surged 52% YTD. Energy, however, has recorded a gain of only 0.8% YTD, as a result of relatively weak oil prices. (Note: There is only one telecom services stock among the 222 A- caps, so we did not include this sector in the discussion.) Figure 3: Industry breakdown of the 222 companies Real Estate 4.6% Telecommunicati on Services 0.2% Materials 7.1% Information Technology 5.8% Industrials 15.5% Health Care 4.4% Sources: MSCI, CGIS Research Utilities 4.2% Consumer Discretionary 10.2% Financials 36.3% Consumer Staples 9.2% Energy 2.4% Figure 4: YTD performance of 222 companies by sector -20.7% Telecom services Energy 0.8% Industrials 4.1% Financials 7.1% Materials 13.0% Utilities 13.9% Real estate 15.9% Consumer discretionary 19.9% Health care 24.5% Consumer staples 35.3% Information Technology 47.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 2

3 10 stocks for investors who have limited experience in the A-share market. Since A-share companies will initially represent a weighting of only 2.5% of the MSCI China Index, we picked 10 stocks investors should pay attention to if they have limited experience in the A-share market so that they do not need to spend too much time picking stocks initially. For simplicity, the 10 stocks were selected based on an equal weighting, with 4 financials stocks, 1 consumer discretionary stock, 1 consumer staple stock, 1 industrials stock, 1 materials stock, 1 information technology stock, and 1 real estate stock. Therefore, we picked stocks mainly from industries with higher weightings and skipped stocks in the utilities, health care, energy and telecommunication services sectors, as these four sectors account for only about 11.2% of the weighting altogether. In other words, we focus on 89% of the weighting. A list of 10 stocks. Unless we believe the stock has a very poor outlook, we generally picked stocks from the Top 5 market cap stocks in each industry mentioned above. Although the performance of financials has been unimpressive YTD, we still included four stocks in our model portfolio to avoid a large deviation from the index weighting. The 10 stocks are Kweichow Moutai ( CH), Midea Group ( CH), Ping An Insurance-A ( CH), China Merchants Bank-A ( CH), Shanghai Pudong Development Bank ( CH), Industrial Bank ( CH), China State Construction Engineering ( CH), Inner Mongolia BaoTou Steel Union ( CH), Hangzhou Hikvision Digital Technology ( CH), and China Merchants Shekou Industrial Zone ( CH). Figure 5: A list of 10 large cap A-share companies Price Market Cap 2018E CH Equity Kweichow Moutai Co Ltd Consumer Staples Distillers & Vintners , % CH Equity Midea Group Co Ltd Consumer Discretionary Household Appliances , % CH Equity Ping An Insurance Financials Life & Health Insurance , % CH Equity China Merchants Bank Co Ltd Financials Diversified Banks , % CH Equity Shanghai Pudong Development Bank Co Ltd Financials Diversified Banks , % CH Equity Industrial Bank Co Ltd Financials Diversified Banks , % CH Equity China State Construction Engineering Corp Ltd Industrials Construction & Engineering , % CH Equity Inner Mongolia BaoTou Steel Union Co Ltd Materials Steel ,831 n.a. n.a n.a. 0.53% CH Equity Hangzhou Hikvision Digital Technology Co Ltd Information Technology Electronic Equipment & Instruments , % CH Equity China Merchants Shekou Industrial Zone Real Estate Real Estate Development , % 3

4 Figure 6a: 222 A- caps to be included in the MSCI Emerging Markets Index Price Market Cap 2018E CH Equity Midea Group Co Ltd Consumer Discretionary Household Appliances , % CH Equity SAIC Motor Corp Ltd Consumer Discretionary Automobile Manufacturers , % CH Equity Suning Commerce Group Co Ltd Consumer Discretionary Computer & Electronics Retail , % CH Equity BYD Co Ltd Consumer Discretionary Automobile Manufacturers , % CH Equity Qingdao Haier Co Ltd Consumer Discretionary Household Appliances , % CH Equity Shenzhen Overseas Chinese Town Co Ltd Consumer Discretionary Leisure Facilities , % CH Equity Huayu Automotive Systems Co Ltd Consumer Discretionary Auto Parts & Equipment , % CH Equity Shanghai Oriental Pearl Media Co Ltd Consumer Discretionary Cable & Satellite , % CH Equity China International Travel Service Corp Ltd Consumer Discretionary Hotels, Resorts & Cruise Lines , % CH Equity Chongqing Changan Automobile Co Ltd Consumer Discretionary Automobile Manufacturers , % CH Equity Guangzhou Automobile Group Co Ltd Consumer Discretionary Automobile Manufacturers , % CH Equity Fuyao Glass Industry Group Co Ltd Consumer Discretionary Auto Parts & Equipment , % CH Equity China Grand Automotive Services Co Ltd Consumer Discretionary Automotive Retail , n.a. 0.28% CH Equity Hangzhou Robam Appliances Co Ltd Consumer Discretionary Household Appliances , % CH Equity Nanjing Xinjiekou Department Store Co Ltd Consumer Discretionary Department Stores , n.a. 0.26% CH Equity China Shipbuilding Industry Co Ltd Consumer Discretionary Auto Parts & Equipment , % CH Equity CITIC Guoan Information Industry Co Ltd Consumer Discretionary Cable & Satellite , n.a. 0.23% CH Equity China Film Co Ltd Consumer Discretionary Movies & Entertainment , % CH Equity China South Publishing & Media Group Co Ltd Consumer Discretionary Publishing , % CH Equity Chinese Universe Publishing and Media Co Ltd Consumer Discretionary Publishing , % CH Equity Wanxiang Qianchao Co Ltd Consumer Discretionary Auto Parts & Equipment , n.a. 0.17% CH Equity Anhui Xinhua Media Co Ltd Consumer Discretionary Distributors , n.a. 0.16% CH Equity Alpha Group Consumer Discretionary Leisure Products , % CH Equity Beijing Gehua CATV Network Co Ltd Consumer Discretionary Cable & Satellite , % CH Equity Weifu High-Technology Group Co Ltd Consumer Discretionary Auto Parts & Equipment , % CH Equity Shandong Linglong Tyre Co Ltd Consumer Discretionary Tires & Rubber , n.a. 0.10% CH Equity Kweichow Moutai Co Ltd Consumer Staples Distillers & Vintners , % CH Equity Wuliangye Yibin Co Ltd Consumer Staples Distillers & Vintners , % CH Equity Jiangsu Yanghe Brewery Joint-Stock Co Ltd Consumer Staples Distillers & Vintners , % CH Equity Inner Mongolia Yili Industrial Group Co Ltd Consumer Staples Packaged Foods & Meats , % CH Equity Foshan Haitian Flavouring & Food Co Ltd Consumer Staples Packaged Foods & Meats , % CH Equity Luzhou Laojiao Co Ltd Consumer Staples Distillers & Vintners , % CH Equity Yonghui Superstores Co Ltd Consumer Staples Hypermarkets & Super Centers , % CH Equity Henan Shuanghui Investment & Development Consumer Staples Packaged Foods & Meats 23 75, % CH Equity New Hope Liuhe Co Ltd Consumer Staples Agricultural Products , % CH Equity Beijing Dabeinong Technology Group Co Ltd Consumer Staples Agricultural Products , % CH Equity Shanghai Bailian Group Co Ltd Consumer Staples Hypermarkets & Super Centers , % CH Equity Tsingtao Brewery Co Ltd Consumer Staples Brewers , % CH Equity COFCO Tunhe Sugar Co Ltd Consumer Staples Packaged Foods & Meats ,754 n.a. n.a n.a. 0.12% CH Equity China Petroleum & Chemical Corp Energy Integrated Oil & Gas , % CH Equity PetroChina Co Ltd Energy Integrated Oil & Gas ,339, % CH Equity Wintime Energy Co Ltd Energy Coal & Consumable Fuels , n.a. 0.28% CH Equity Offshore Oil Engineering Co Ltd Energy Oil & Gas Equipment & Services , % CH Equity Shanxi Xishan Coal & Electricity Power Co Ltd Energy Coal & Consumable Fuels ,619 n.a. n.a % CH Equity Shanxi Lu'an Environmental Energy Development Energy Coal & Consumable Fuels , % CH Equity Guanghui Energy Co Ltd Energy Integrated Oil & Gas , n.a. 0.14% CH Equity Ping An Insurance Financials Life & Health Insurance , % CH Equity China Merchants Bank Co Ltd Financials Diversified Banks , % CH Equity Shanghai Pudong Development Bank Co Ltd Financials Diversified Banks , % CH Equity Industrial Bank Co Ltd Financials Diversified Banks , % CH Equity Industrial & Commercial Bank of China Ltd Financials Diversified Banks ,750, % CH Equity China Minsheng Banking Corp Ltd Financials Diversified Banks , % CH Equity Bank of Communications Co Ltd Financials Diversified Banks , % CH Equity China Pacific Insurance Group Co Ltd Financials Multi-line Insurance , % CH Equity Agricultural Bank of China Ltd Financials Diversified Banks ,117, % CH Equity Bank of China Ltd Financials Diversified Banks ,040, % CH Equity CITIC Securities Co Ltd Financials Investment Banking & Brokerage , % CH Equity China Everbright Bank Co Ltd Financials Diversified Banks , % CH Equity Ping An Bank Co Ltd Financials Diversified Banks , % CH Equity Guotai Junan Securities Co Ltd Financials Investment Banking & Brokerage , % CH Equity Bank of Beijing Co Ltd Financials Regional Banks , % CH Equity Haitong Securities Co Ltd Financials Investment Banking & Brokerage , % CH Equity Huaxia Bank Co Ltd Financials Diversified Banks , % CH Equity Shenwan Hongyuan Group Co Ltd Financials Investment Banking & Brokerage , % CH Equity GF Securities Co Ltd Financials Investment Banking & Brokerage , % CH Equity China Merchants Securities Co Ltd Financials Investment Banking & Brokerage , % 4

5 Figure 6b: 222 A- caps to be included in the MSCI Emerging Markets Index Price Market Cap 2018E CH Equity Huatai Securities Co Ltd Financials Investment Banking & Brokerage , % CH Equity New China Life Insurance Co Ltd Financials Life & Health Insurance , % CH Equity Founder Securities Co Ltd Financials Investment Banking & Brokerage , % CH Equity China Life Insurance Co Ltd Financials Life & Health Insurance , % CH Equity Orient Securities Co Ltd/China Financials Investment Banking & Brokerage , % CH Equity Bank of Ningbo Co Ltd Financials Regional Banks , % CH Equity Bank of Nanjing Co Ltd Financials Regional Banks , % CH Equity Everbright Securities Co Ltd Financials Investment Banking & Brokerage , % CH Equity China Construction Bank Corp Financials Diversified Banks ,410, % CH Equity Guosen Securities Co Ltd Financials Investment Banking & Brokerage , % CH Equity Changjiang Securities Co Ltd Financials Investment Banking & Brokerage , % CH Equity Avic Capital Co Ltd Financials Other Diversified Financial Services , % CH Equity Western Securities Co Ltd Financials Investment Banking & Brokerage , % CH Equity Anxin Trust Co Ltd Financials Asset Management & Custody Banks , % CH Equity Industrial Securities Co Ltd Financials Investment Banking & Brokerage , % CH Equity Bank of Shanghai Co Ltd Financials Diversified Banks , % CH Equity Dongxing Securities Co Ltd Financials Investment Banking & Brokerage , % CH Equity Guoyuan Securities Co Ltd Financials Investment Banking & Brokerage , % CH Equity SDIC Essence Holdings Co Ltd Financials Investment Banking & Brokerage ,484 n.a. n.a n.a. 0.24% CH Equity Sinolink Securities Co Ltd Financials Investment Banking & Brokerage , % CH Equity Bank of Jiangsu Co Ltd Financials Regional Banks , % CH Equity China CITIC Bank Corp Ltd Financials Diversified Banks , % CH Equity SooChow Securities Co Ltd Financials Investment Banking & Brokerage , % CH Equity Southwest Securities Co Ltd Financials Investment Banking & Brokerage , % CH Equity Huaan Securities Co Ltd Financials Investment Banking & Brokerage , % CH Equity Bank of Guiyang Co Ltd Financials Regional Banks , % CH Equity Pacific Securities Co Ltd/The/China Financials Investment Banking & Brokerage , n.a. 0.18% CH Equity Shanxi Securities Co Ltd Financials Investment Banking & Brokerage , % CH Equity Northeast Securities Co Ltd Financials Investment Banking & Brokerage , n.a. 0.15% CH Equity Sealand Securities Co Ltd Financials Investment Banking & Brokerage , n.a. 0.15% CH Equity Jiangsu Hengrui Medicine Co Ltd Health Care Pharmaceuticals , % CH Equity Kangmei Pharmaceutical Co Ltd Health Care Pharmaceuticals , % CH Equity Shanghai Fosun Pharmaceutical Group Co Ltd Health Care Pharmaceuticals , % CH Equity Shanghai Pharmaceuticals Holding Co Ltd Health Care Health Care Distributors , % CH Equity Huadong Medicine Co Ltd Health Care Health Care Distributors , % CH Equity Dong-E-E-Jiao Co Ltd Health Care Pharmaceuticals , % CH Equity Beijing Tongrentang Co Ltd Health Care Pharmaceuticals , % CH Equity Tasly Pharmaceutical Group Co Ltd Health Care Pharmaceuticals , % CH Equity Guangzhou Baiyunshan Pharmaceutical Holdings Health Care Pharmaceuticals , % CH Equity Shenzhen Salubris Pharmaceuticals Co Ltd Health Care Pharmaceuticals , % CH Equity China Resources Sanjiu Medical & Pharma Health Care Pharmaceuticals , % CH Equity Jointown Pharmaceutical Group Co Ltd Health Care Health Care Distributors , % CH Equity Guizhou Bailing Group Pharmaceutical Co Ltd Health Care Pharmaceuticals ,738 n.a. n.a n.a. 0.16% CH Equity China State Construction Engineering Corp Ltd Industrials Construction & Engineering , % CH Equity CRRC Corp Ltd Industrials Construction Machinery & Heavy Trucks , % CH Equity China Railway Group Ltd Industrials Construction & Engineering , % CH Equity China Railway Construction Corp Ltd Industrials Construction & Engineering , % CH Equity Daqin Railway Co Ltd Industrials Railroads , % CH Equity Power Construction Corp of China Ltd Industrials Construction & Engineering , % CH Equity Metallurgical Corp of China Ltd Industrials Construction & Engineering , % CH Equity China Southern Airlines Co Ltd Industrials Airlines , % CH Equity Luxshare Precision Industry Co Ltd Industrials Electrical Components & Equipment , % CH Equity Sany Heavy Industry Co Ltd Industrials Construction Machinery & Heavy Trucks , % CH Equity China Eastern Airlines Corp Ltd Industrials Airlines , % CH Equity AECC Aviation Power Co Ltd Industrials Aerospace & Defense , % CH Equity Hainan Airlines Holding Co Ltd Industrials Airlines , n.a. 0.34% CH Equity Shanghai International Port Group Co Ltd Industrials Marine Ports & Services , % CH Equity AVIC Aircraft Co Ltd Industrials Aerospace & Defense , % CH Equity China Gezhouba Group Co Ltd Industrials Construction & Engineering , % CH Equity Ningbo Zhoushan Port Co Ltd Industrials Marine Ports & Services , % CH Equity Zhengzhou Yutong Bus Co Ltd Industrials Construction Machinery & Heavy Trucks , % CH Equity Beijing Orient Landscape & Environment Co Ltd Industrials Research & Consulting Services , % CH Equity Air China Ltd Industrials Airlines , % CH Equity China Communications Construction Co Ltd Industrials Construction & Engineering , % 5

6 Figure 6c: 222 A- caps to be included in the MSCI Emerging Markets Index Price Market Cap 2018E CH Equity TBEA Co Ltd Industrials Electrical Components & Equipment , % CH Equity Weichai Power Co Ltd Industrials Construction Machinery & Heavy Trucks , % CH Equity Shanghai International Airport Co Ltd Industrials Airport Services , % CH Equity Xinjiang Goldwind Science & Technology Co Ltd Industrials Heavy Electrical Equipment , % CH Equity China Spacesat Co Ltd Industrials Aerospace & Defense , % CH Equity China CSSC Holdings Ltd Industrials Construction Machinery & Heavy Trucks , % CH Equity Jihua Group Corp Ltd Industrials Diversified Support Services , % CH Equity Shanghai Construction Group Co Ltd Industrials Construction & Engineering , % CH Equity Shanghai Tunnel Engineering Co Ltd Industrials Construction & Engineering , % CH Equity Tus-Sound Environmental Resources Co Ltd Industrials Environmental & Facilities Services , % CH Equity COSCO SHIPPING Development Co Ltd Industrials Marine , % CH Equity Zoomlion Heavy Industry Science and Technology Industrials Construction Machinery & Heavy Trucks , % CH Equity Zhejiang Chint Electrics Co Ltd Industrials Electrical Components & Equipment , % CH Equity Suzhou Gold Mantis Construction Decoration Industrials Construction & Engineering , % CH Equity Guangshen Railway Co Ltd Industrials Railroads , % CH Equity XCMG Construction Machinery Co Ltd Industrials Construction Machinery & Heavy Trucks , % CH Equity China Avionics Systems Co Ltd Industrials Aerospace & Defense , % CH Equity AECC Aero-Engine Control Co Ltd Industrials Aerospace & Defense , % CH Equity CSSC Offshore and Marine Engineering Group Industrials Construction Machinery & Heavy Trucks , % CH Equity China International Marine Containers Group Industrials Industrial Machinery , % CH Equity China Nuclear Engineering Corp Ltd Industrials Construction & Engineering , n.a. 0.13% CH Equity COSCO SHIPPING Energy Transportation Industrials Marine , % CH Equity Spring Airlines Co Ltd Industrials Airlines , % CH Equity Hangzhou Hikvision Digital Technology Co Ltd Information Technology Electronic Equipment & Instruments , % CH Equity BOE Technology Group Co Ltd Information Technology Technology Hardware, Storage & Peripherals , % CH Equity Sanan Optoelectronics Co Ltd Information Technology Semiconductors , % CH Equity ZTE Corp Information Technology Communications Equipment , % CH Equity Zhejiang Dahua Technology Co Ltd Information Technology Electronic Equipment & Instruments , % CH Equity GoerTek Inc Information Technology Electronic Manufacturing Services , % CH Equity Dongxu Optoelectronic Technology Co Ltd Information Technology Electronic Components ,803 n.a. n.a n.a. 0.32% CH Equity Iflytek Co Ltd Information Technology Application Software , % CH Equity Aisino Corp Information Technology Systems Software , % CH Equity Jiangsu Protruly Vision Technology Group Co Ltd Information Technology Electronic Equipment & Instruments ,425 n.a. n.a n.a. 0.19% CH Equity Tsinghua Unisplendour Co Ltd Information Technology Technology Distributors ,889 n.a. n.a n.a. 0.18% CH Equity Hundsun Technologies Inc Information Technology Application Software , % CH Equity Shanghai 2345 Network Holding Group Co Ltd Information Technology Application Software , % CH Equity Beijing Shiji Information Technology Co Ltd Information Technology Application Software , % CH Equity Anhui Conch Cement Co Ltd Materials Construction Materials , % CH Equity Inner Mongolia BaoTou Steel Union Co Ltd Materials Steel ,831 n.a. n.a n.a. 0.53% CH Equity Kangde Xin Composite Material Group Co Ltd Materials Commodity Chemicals , % CH Equity Wanhua Chemical Group Co Ltd Materials Specialty Chemicals , % CH Equity Zijin Mining Group Co Ltd Materials Gold , % CH Equity Shandong Gold Mining Co Ltd Materials Gold , % CH Equity Tianqi Lithium Industries Inc Materials Specialty Chemicals , % CH Equity Yunnan Copper Co Ltd Materials Aluminum , n.a. 0.31% CH Equity BBMG Corp Materials Construction Materials , % CH Equity Hesteel Co Ltd Materials Steel , % CH Equity China Molybdenum Co Ltd Materials Diversified Metals & Mining , % CH Equity China Northern Rare Earth Group High-Tech Materials Diversified Metals & Mining , % CH Equity Zhongjin Gold Corp Ltd Materials Gold , % CH Equity Inner Mongolia Junzheng Energy & Chemical Materials Commodity Chemicals , % CH Equity Jiangxi Copper Co Ltd Materials Copper , % CH Equity Sinopec Shanghai Petrochemical Co Ltd Materials Commodity Chemicals , % CH Equity Zhejiang Longsheng Group Co Ltd Materials Specialty Chemicals , % CH Equity Jiangsu Bicon Pharmaceutical Listed Co Materials Diversified Chemicals , n.a. 0.19% CH Equity Tongling Nonferrous Metals Group Co Ltd Materials Copper , % CH Equity Qinghai Salt Lake Industry Co Ltd Materials Fertilizers & Agricultural Chemicals , % CH Equity Hubei Biocause Pharmaceutical Co Ltd Materials Specialty Chemicals ,220 n.a. n.a n.a. 0.16% CH Equity Shanxi Taigang Stainless Steel Co Ltd Materials Steel , % CH Equity Shenzhen Zhongjin Lingnan Nonfemet Co Ltd Materials Diversified Metals & Mining , % CH Equity Kingenta Ecological Engineering Group Co Ltd Materials Fertilizers & Agricultural Chemicals , % CH Equity China Hainan Rubber Industry Group Co Ltd Materials Commodity Chemicals , n.a. 0.14% CH Equity Angang Steel Co Ltd Materials Steel , % CH Equity Maanshan Iron & Steel Co Ltd Materials Steel , % 6

7 Figure 6d: 222 A- caps to be included in the MSCI Emerging Markets Index Price Market Cap 2018E CH Equity Jinduicheng Molybdenum Co Ltd Materials Diversified Metals & Mining , % CH Equity China Merchants Shekou Industrial Zone Real Estate Real Estate Development , % CH Equity Poly Real Estate Group Co Ltd Real Estate Real Estate Development , % CH Equity China Fortune Land Development Co Ltd Real Estate Diversified Real Estate Activities , % CH Equity Gemdale Corp Real Estate Real Estate Development , % CH Equity RiseSun Real Estate Development Co Ltd Real Estate Real Estate Development , % CH Equity Xinhu Zhongbao Co Ltd Real Estate Diversified Real Estate Activities , n.a. 0.26% CH Equity Zhejiang China Commodities City Group Co Ltd Real Estate Diversified Real Estate Activities , n.a. 0.26% CH Equity Future Land Holdings Co Ltd Real Estate Real Estate Development , n.a. 0.25% CH Equity Youngor Group Co Ltd Real Estate Real Estate Development , n.a. 0.23% CH Equity Financial Street Holdings Co Ltd Real Estate Real Estate Development , % CH Equity Zhongtian Financial Group Co Ltd Real Estate Real Estate Development , % CH Equity Oceanwide Holdings Co Ltd Real Estate Real Estate Development , n.a. 0.19% CH Equity Shanghai Zhangjiang High-Tech Park Development Real Estate Diversified Real Estate Activities , n.a. 0.16% CH Equity Tahoe Group Co Ltd Real Estate Real Estate Development , n.a. 0.13% CH Equity Dr Peng Telecom & Media Group Co Ltd Telecom Services Alternative Carriers , % CH Equity China Yangtze Power Co Ltd Utilities Renewable Electricity , % CH Equity China National Nuclear Power Co Ltd Utilities Independent Power Producers & Energy Traders , % CH Equity SDIC Power Holdings Co Ltd Utilities Independent Power Producers & Energy Traders , % CH Equity Zhejiang Zheneng Electric Power Co Ltd Utilities Independent Power Producers & Energy Traders , n.a. 0.32% CH Equity Sichuan Chuantou Energy Co Ltd Utilities Renewable Electricity , % CH Equity Huadian Power International Corp Ltd Utilities Independent Power Producers & Energy Traders , % CH Equity Huaneng Power International Inc Utilities Independent Power Producers & Energy Traders , % CH Equity Beijing Capital Co Ltd Utilities Water Utilities , % CH Equity Shenergy Co Ltd Utilities Independent Power Producers & Energy Traders , n.a n.a. 0.18% CH Equity Datang International Power Generation Co Ltd Utilities Independent Power Producers & Energy Traders , % CH Equity Shenzhen Energy Group Co Ltd Utilities Independent Power Producers & Energy Traders ,879 n.a. n.a n.a. 0.14% CH Equity Hubei Energy Group Co Ltd Utilities Independent Power Producers & Energy Traders , n.a. 0.14% 7

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