Strategy. MSCI proposes increasing the A-share inclusion factor from 5% to 20% September 27, Wong Chi Man Head of Research (852)

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1 Strategy September 27, 2018 MSCI proposes increasing the A-share inclusion factor from 5% to 20% MSCI announced a new round of consultations on raising the free float adjusted inclusion factor for large cap A-shares from 5% to 20%. We believe that the big increase in the inclusion factor is higher than market expectations and that the top five major beneficiaries will be Pudong Development Bank ( CH), Shanghai Electric Group ( CH), Shenwan Hongyuan ( CH), Guosen Securities ( CH) and China Yangtze Power ( CH), based on their daily turnover. MSCI also proposed adding ChiNext stocks to the MSCI China A Inclusion Index. It is estimated that 14 ChiNext stocks will be included initially. We estimate the top five weighted ChiNext stocks will be Wens Foodstuffs ( CH), East Money Information ( CH), Lepu Medical ( CH), Aier Eye Hospital ( CH) and Inovance Technology ( CH). As a medium-term suggestion, MSCI proposed adding 168 mid caps to the MSCI China A Inclusion Index in May Proposal A: Increase the free float adjusted inclusion factor for large cap A-shares from 5% to 20% in two stages. MSCI launched a new rebound of consultations yesterday, with a deadline of February 15, The decision will be announced on or before February 28, Currently, there are 235 A-share large caps that form the constituents of the MSCI China A Inclusion Index. Only 5% of the free float adjusted market cap is counted at the moment, but this will be lifted to 12.5% in May 2019 and 20% in August 2019, if there is no change in the proposal after the consultation. This may trigger fund inflow of at least US$36bn. In the past, we estimated the fund inflow would be about US$12bn if 5% of the free float adjusted market cap is counted. Therefore, we may see additional fund inflow of US$36bn if the inclusion factor is raised to 20%. We believe the actual amount will be bigger than this, as the accumulated net fund inflow through northbound Stock Connect has already reached RMB585bn (US$85bn). If we take US$36bn as the base case, we believe the top five major beneficiaries will be Pudong Development Bank, Shanghai Electric Group, Shenwan Hongyuan, Guosen Securities and China Yangtze Power, based on their daily turnover (Figure 2). Proposal B: Expand the universe to ChiNext stocks. If the proposal remains unchanged after the consultation, MSCI estimates that 14 ChiNext stocks will be added to the MSCI China A Inclusion Index in May The free float adjusted market cap of these companies is not small, but they were not included largely because some investors considered ChiNext stocks to be high risk. We estimate that the top five weighted ChiNext stocks will be Wens Foodstuffs, East Money Information, Lepu Medical, Aier Eye Hospital and Inovance Technology (Figure 3). The CGS Research Team has a Recommend rating on Lepu Medical and Aier Eye Hospital. Wong Chi Man Head of Research (852) cmwong@chinastock.com.hk Mark Lau Research Analyst (852) marklau@chinastock.com.hk Proposal C: Add 168 A-share mid caps in May For these 168 A-share mid caps, a 20% free float adjusted inclusion factor will be adopted. The total number of stocks in the MSCI China A Inclusion Index will reach 434 (up from the current 235 stocks). Since this proposal will become effective only in May 2020 at the earliest, it is too early to talk about potential beneficiaries. For the list of 168 A-share mid caps, please click here. Potential negative impact on other China shares. Based on the closing price on September 3, MSCI estimates that the weighting of A-shares in the MSCI Emerging Markets Index will increase from 0.71% to 3.36% if the free float adjusted inclusion factor is lifted from 5% to 20%, and ChiNext and mid cap stocks are added (Figure 4). Then the weighting of A-shares in the MSCI China Index will jump from 2.3% to 10.4%. At the same time, the weighting of H-share, P-chips, red chips and ADRs will drop from 31.5%, 27.4%, 13.8% and 24.8% to 28.9%, 25.1%, 12.7% and 22.7%, respectively (Figure 5). This implies there may be potential fund outflow from other China shares if there is no new fund inflow to China equities. This long-term impact should not be overlooked if the weighting of A-shares continues to increase in the future (Figure 6). Consultation on technical issues. This new round of consultations also seeks the latest views from investors on other technical issues related to the A-share market, such as trading suspensions, alignment of the international settlement cycle, and access to hedging and derivatives 1 vehicles.

2 Figure 1: Three key areas in the latest round of consultation Source: MSCI Figure 2: Top 20 stocks to benefit from the increase in inclusion factor based on daily turnover Estimated fund Current inflow if inclusion weighting in factor is raised Market cap PBR (x) turnover MSCI China from 5% to 20%/3- A Inclusion month average Index turnover (x) Sector CH Equity Shanghai Pudong Development Bank Co Ltd , ,055, % Financials CH Equity Shanghai Electric Group Co Ltd , ,254, % Industrials CH Equity Shenwan Hongyuan Group Co Ltd , ,561, % Financials CH Equity Guosen Securities Co Ltd , ,053, % Financials CH Equity China Yangtze Power Co Ltd , ,458, % Utilities CH Equity Zhejiang Zheneng Electric Power Co Ltd , ,733, % Utilities CH Equity Metallurgical Corp of China Ltd , ,041, % Industrials CH Equity Zhejiang China Commodities City Group Co Ltd ,263 n.a. n.a n.a. 27,269, % Financials CH Equity Youngor Group Co Ltd , ,627, % Consumer Discretionary CH Equity China National Nuclear Power Co Ltd , ,846, % Utilities CH Equity Shenergy Co Ltd , ,709, % Utilities CH Equity Shenzhen Energy Group Co Ltd , ,767, % Utilities CH Equity China Merchants Securities Co Ltd , ,379, % Financials CH Equity Hubei Energy Group Co Ltd , ,630, % Utilities CH Equity COSCO SHIPPING Development Co Ltd ,218 n.a. n.a n.a. 25,358, % Industrials CH Equity Jointown Pharmaceutical Group Co Ltd , ,521, % Consumer Staples CH Equity Bank of Communications Co Ltd , ,707, % Financials CH Equity Shanghai International Port Group Co Ltd , ,543, % Industrials CH Equity Ningbo Zhoushan Port Co Ltd , ,593, % Industrials CH Equity Foshan Haitian Flavouring & Food Co Ltd , ,797, % 9.67 Consumer Staples Note: Assuming a fund inflow of US$36bn if the inclusion factor is raised from 5% to 20%. Sources: MSCI, Bloomberg, CGIS Research estimates 2

3 Figure 3: The 14 ChiNext stocks which may be added to the MSCI China A Inclusion Index Estimated free float adjusted market cap PBR (x) daily turnover CH Equity Wens Foodstuffs Group Co Ltd , ,692, CH Equity East Money Information Co Ltd , ,383,983, CH Equity Lepu Medical Technology Beijing Co Ltd , ,994, CH Equity Aier Eye Hospital Group Co Ltd , ,779, CH Equity Shenzhen Inovance Technology Co Ltd , ,268, CH Equity Walvax Biotechnology Co Ltd ,481 n.a. n.a n.a. 247,491, CH Equity Chaozhou Three-Circle Group Co Ltd , ,092, CH Equity Chongqing Zhifei Biological Products Co Ltd , ,001, CH Equity Shenzhen Sunway Communication Co Ltd , ,679, CH Equity Siasun Robot & Automation Co Ltd , ,483, CH Equity Wangsu Science & Technology Co Ltd , ,833, CH Equity Beijing Originwater Technology Co Ltd , ,669, CH Equity Winning Health Technology Group Co Ltd , ,871, CH Equity Beijing Sanju Environmental Protection and New Material Co Ltd , ,697,900 Source: CGIS Research estimates Figure 4: A-share weighting to increase in MSCI Emerging Markets Index in various stages Note: Based on closing price on September 3, Source: MSCI 3

4 Figure 5: Potential weighting change of various classes of China equities if A-share weighting increases Note: Based on closing price on September 3, GICS changes effective September 28, Source: MSCI Figure 6: A-share weighting in the long-term if the inclusion factor for large and mid-cap A-shares increases to 100% Note: Based on closing price on September 3, Source: MSCI 4

5 Figure 7a: List of stocks in MSCI China A Inclusion Index Sources: Bloomberg, CGIS Research Current weighting in MSCI China A Inclusion Index Sector Market cap PBR (x) turnover CH Equity Kweichow Moutai Co Ltd , ,499,456, % Consumer Staples CH Equity Ping An Insurance Group Co of China Ltd ,254, ,336,712, % Financials CH Equity China Merchants Bank Co Ltd , ,106,021, % Financials CH Equity Industrial Bank Co Ltd , ,317, % Financials CH Equity Industrial & Commercial Bank of China Ltd 5.7 1,974, ,146, % Financials CH Equity Shanghai Pudong Development Bank Co Ltd , ,055, % Financials CH Equity Agricultural Bank of China Ltd ,333, ,703, % Financials CH Equity Midea Group Co Ltd , ,434,236, % Consumer Discretionary CH Equity Hangzhou Hikvision Digital Technology Co Ltd , ,056,602, % Information Technology CH Equity Wuliangye Yibin Co Ltd , ,760,705, % Consumer Staples CH Equity SAIC Motor Corp Ltd , ,590, % Consumer Discretionary CH Equity China Vanke Co Ltd , ,152,000, % Real Estate CH Equity China Yangtze Power Co Ltd , ,458, % Utilities CH Equity China State Construction Engineering Corp Ltd , ,680, % Industrials CH Equity Jiangsu Hengrui Medicine Co Ltd , ,441,508, % Health Care CH Equity Bank of Communications Co Ltd , ,707, % Financials CH Equity China Minsheng Banking Corp Ltd , ,555, % Financials CH Equity China Pacific Insurance Group Co Ltd , ,449, % Financials CH Equity Jiangsu Yanghe Brewery Joint-Stock Co Ltd , ,175, % Consumer Staples CH Equity Ping An Bank Co Ltd , ,855, % Financials CH Equity Bank of China Ltd ,032, ,249, % Financials CH Equity China Petroleum & Chemical Corp , ,737, % Energy CH Equity CRRC Corp Ltd , ,626, % Industrials CH Equity China United Network Communications Ltd , ,229, % Telecommunication Services CH Equity Foshan Haitian Flavouring & Food Co Ltd , ,797, % Consumer Staples CH Equity CITIC Securities Co Ltd , ,040,886, % Financials CH Equity China Everbright Bank Co Ltd , ,176, % Financials CH Equity Inner Mongolia Yili Industrial Group Co Ltd , ,370,113, % Consumer Staples CH Equity Poly Real Estate Group Co Ltd , ,062,089, % Financials CH Equity Anhui Conch Cement Co Ltd , ,095,197, % Materials CH Equity Baoshan Iron & Steel Co Ltd , ,159, % Materials CH Equity PetroChina Co Ltd ,581, ,311, % Energy CH Equity China International Travel Service Corp Ltd , ,715, % Consumer Discretionary CH Equity Bank of Shanghai Co Ltd , ,659, % Financials CH Equity China Railway Construction Corp Ltd , ,159, % Industrials CH Equity Bank of Beijing Co Ltd , ,825, % Financials CH Equity China Merchants Shekou Industrial Zone Holdings Co Ltd , ,878, % Real Estate CH Equity Suning.com Co Ltd , ,180, % Consumer Discretionary CH Equity Daqin Railway Co Ltd , ,597, % Industrials CH Equity Gree Electric Appliances Inc of Zhuhai , ,047,782, % Consumer Discretionary CH Equity Guotai Junan Securities Co Ltd , ,121, % Financials CH Equity BOE Technology Group Co Ltd , ,502,170, % Information Technology CH Equity New China Life Insurance Co Ltd , ,944, % Financials CH Equity Kangmei Pharmaceutical Co Ltd , ,354, % Health Care CH Equity Huaxia Bank Co Ltd , ,154, % Financials CH Equity Qingdao Haier Co Ltd , ,819, % Consumer Discretionary CH Equity Focus Media Information Technology Co Ltd , ,714, % Information Technology CH Equity Huatai Securities Co Ltd , ,520, % Financials CH Equity Bank of Ningbo Co Ltd , ,315, % Financials CH Equity BYD Co Ltd , ,173, % Consumer Discretionary CH Equity China Shenhua Energy Co Ltd , ,717, % Energy CH Equity Shenwan Hongyuan Group Co Ltd , ,561, % Financials CH Equity GF Securities Co Ltd , ,461, % Financials CH Equity NARI Technology Co Ltd , ,439, % Industrials CH Equity China National Nuclear Power Co Ltd , ,846, % Utilities CH Equity Yonghui Superstores Co Ltd , ,728, % Consumer Staples CH Equity Yunnan Baiyao Group Co Ltd , ,092, % Health Care CH Equity China Fortune Land Development Co Ltd , ,107, % Financials CH Equity China Merchants Securities Co Ltd , ,379, % Financials CH Equity Henan Shuanghui Investment & Development Co Ltd , ,664, % Consumer Staples CH Equity Bank of Jiangsu Co Ltd , ,032, % Financials CH Equity Haitong Securities Co Ltd , ,568, % Financials CH Equity China Construction Bank Corp ,517, ,375, % Financials CH Equity Luzhou Laojiao Co Ltd , ,952, % Consumer Staples CH Equity Sany Heavy Industry Co Ltd , ,457, % Industrials CH Equity Huayu Automotive Systems Co Ltd , ,333, % Consumer Discretionary CH Equity Luxshare Precision Industry Co Ltd , ,215, % Industrials CH Equity Bank of Nanjing Co Ltd , ,782, % Financials CH Equity Sanan Optoelectronics Co Ltd , ,719, % Information Technology CH Equity ZTE Corp ,697 n.a ,233,034, % Information Technology CH Equity Zijin Mining Group Co Ltd , ,722, % Materials 5

6 Figure 7b: List of stocks in MSCI China A Inclusion Index Sources: Bloomberg, CGIS Research Current weighting in MSCI China A Inclusion Index Sector Market cap PBR (x) turnover CH Equity Metallurgical Corp of China Ltd , ,041, % Industrials CH Equity China Life Insurance Co Ltd , ,046, % Financials CH Equity Shanghai Fosun Pharmaceutical Group Co Ltd , ,717, % Health Care CH Equity Future Land Holdings Co Ltd , ,373, % Real Estate CH Equity Iflytek Co Ltd , ,817, % Information Technology CH Equity Huadong Medicine Co Ltd , ,798, % Health Care CH Equity Shaanxi Coal Industry Co Ltd , ,383, % Energy CH Equity Zhangzhou Pientzehuang Pharmaceutical Co Ltd , ,183, % Health Care CH Equity AECC Aviation Power Co Ltd , ,618, % Industrials CH Equity Power Construction Corp of China Ltd , ,663, % Industrials CH Equity Inner Mongolia BaoTou Steel Union Co Ltd ,289 n.a. n.a n.a. 238,484, % Materials CH Equity Shanghai International Airport Co Ltd , ,210, % Industrials CH Equity Meinian Onehealth Healthcare Holdings Co Ltd , ,492, % Health Care CH Equity Aisino Corp , ,950, % Information Technology CH Equity Shenzhen Overseas Chinese Town Co Ltd , ,789, % Consumer Discretionary CH Equity Weichai Power Co Ltd , ,104, % Industrials CH Equity Orient Securities Co Ltd/China , ,479, % Financials CH Equity Greenland Holdings Corp Ltd , ,116, % Financials CH Equity SDIC Power Holdings Co Ltd , ,179, % Utilities CH Equity China Southern Airlines Co Ltd , ,376, % Industrials CH Equity Yonyou Network Technology Co Ltd , ,997, % Information Technology CH Equity Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd , ,080, % Health Care CH Equity Fuyao Glass Industry Group Co Ltd , ,236, % Consumer Discretionary CH Equity GD Power Development Co Ltd , ,437, % Utilities CH Equity Zhejiang Chint Electrics Co Ltd , ,182, % Industrials CH Equity China Eastern Airlines Corp Ltd , ,170, % Industrials CH Equity Zhejiang Zheneng Electric Power Co Ltd , ,733, % Utilities CH Equity Hengtong Optic-electric Co Ltd , ,401, % Information Technology CH Equity Founder Securities Co Ltd , n.a. 122,174, % Financials CH Equity AVIC Aircraft Co Ltd , ,672, % Industrials CH Equity Han's Laser Technology Industry Group Co Ltd , ,307, % Industrials CH Equity Zhejiang Huayou Cobalt Co Ltd , ,219,939, % Materials CH Equity Shandong Gold Mining Co Ltd , ,435, % Materials CH Equity Tianqi Lithium Corp , ,768, % Materials CH Equity Beijing Tongrentang Co Ltd , ,931, % Health Care CH Equity Zhejiang Dahua Technology Co Ltd 15 43, ,813, % Information Technology CH Equity Bank of Hangzhou Co Ltd , ,592, % Financials CH Equity Gemdale Corp , ,851, % Financials CH Equity Avic Capital Co Ltd , ,765, % Financials CH Equity Muyuan Foodstuff Co Ltd , ,520, % Consumer Staples CH Equity Shanghai Electric Group Co Ltd , ,254, % Industrials CH Equity Fangda Carbon New Material Co Ltd , ,698, % Industrials CH Equity Shanghai Pharmaceuticals Holding Co Ltd , ,936, % Health Care CH Equity China Shipbuilding Industry Group Power Co Ltd , n.a. 107,127, % Consumer Discretionary CH Equity Huaneng Power International Inc , ,730, % Utilities CH Equity Shanxi Xinghuacun Fen Wine Factory Co Ltd , ,665, % Consumer Staples CH Equity Air China Ltd , ,620, % Industrials CH Equity O-film Tech Co Ltd , ,212, % Information Technology CH Equity TCL Corp , ,469, % Consumer Discretionary CH Equity Jiangxi Ganfeng Lithium Co Ltd , ,663, % Materials CH Equity Shanghai International Port Group Co Ltd , ,543, % Industrials CH Equity Sichuan Kelun Pharmaceutical Co Ltd , ,888, % Health Care CH Equity Sichuan Chuantou Energy Co Ltd , ,199, % Utilities CH Equity RiseSun Real Estate Development Co Ltd , ,416, % Real Estate CH Equity Tonghua Dongbao Pharmaceutical Co Ltd , ,217, % Health Care CH Equity LONGi Green Energy Technology Co Ltd , ,595, % Information Technology CH Equity China Grand Automotive Services Co Ltd , ,480, % Consumer Discretionary CH Equity Everbright Securities Co Ltd , ,750, % Financials CH Equity China Northern Rare Earth Group High-Tech Co Ltd , ,897, % Materials CH Equity China CITIC Bank Corp Ltd , ,625, % Financials CH Equity Huadian Power International Corp Ltd , ,076, % Utilities CH Equity AVIC Shenyang Aircraft Co Ltd , ,056, % Industrials CH Equity Hengli Petrochemical Co Ltd , ,527, % Industrials CH Equity Guosen Securities Co Ltd , ,053, % Financials CH Equity China Gezhouba Group Co Ltd , ,394, % Industrials CH Equity China Communications Construction Co Ltd , ,020, % Industrials CH Equity Hesteel Co Ltd , ,373, % Materials CH Equity Tasly Pharmaceutical Group Co Ltd , ,745, % Health Care CH Equity China National Chemical Engineering Co Ltd , ,610, % Industrials CH Equity China Molybdenum Co Ltd , ,523, % Materials 6

7 Figure 7c: List of stocks in MSCI China A Inclusion Index Sources: Bloomberg, CGIS Research Current weighting in MSCI China A Inclusion Index Sector Market cap PBR (x) turnover CH Equity Hundsun Technologies Inc , ,996, % Information Technology CH Equity Shanghai Oriental Pearl Group Co Ltd , ,332, % Consumer Discretionary CH Equity Zhejiang Longsheng Group Co Ltd , ,845, % Materials CH Equity Xinjiang Goldwind Science & Technology Co Ltd 12 39, ,725, % Industrials CH Equity BBMG Corp , ,918, % Materials CH Equity Rongsheng Petro Chemical Co Ltd , ,242, % Materials CH Equity Zhengzhou Yutong Bus Co Ltd , ,533, % Industrials CH Equity COSCO SHIPPING Holdings Co Ltd , ,412, % Industrials CH Equity Industrial Securities Co Ltd , ,317, % Financials CH Equity Dongxu Optoelectronic Technology Co Ltd , ,112, % Information Technology CH Equity Offshore Oil Engineering Co Ltd , ,436, % Energy CH Equity Dong-E-E-Jiao Co Ltd , ,069, % Health Care CH Equity Beijing Shiji Information Technology Co Ltd , ,249, % Information Technology CH Equity Western Securities Co Ltd , n.a. 254,361, % Financials CH Equity Jointown Pharmaceutical Group Co Ltd , ,521, % Consumer Staples CH Equity Jiangxi Copper Co Ltd , ,085, % Materials CH Equity Jinke Properties Group Co Ltd , ,843, % Real Estate CH Equity Sinopec Shanghai Petrochemical Co Ltd , ,231, % Materials CH Equity Anxin Trust Co Ltd , ,112, % Financials CH Equity Unisplendour Corp Ltd , ,841, % Information Technology CH Equity XCMG Construction Machinery Co Ltd , ,147, % Industrials CH Equity Changjiang Securities Co Ltd , ,625, % Financials CH Equity GoerTek Inc , ,656, % Information Technology CH Equity DHC Software Co Ltd , ,051, % Information Technology CH Equity Xinhu Zhongbao Co Ltd , n.a. 61,699, % Financials CH Equity Bank of Guiyang Co Ltd , ,864, % Financials CH Equity Giant Network Group Co Ltd ,423 n.a. n.a n.a. 124,477, % Consumer Discretionary CH Equity Youngor Group Co Ltd , ,627, % Consumer Discretionary CH Equity Chongqing Changan Automobile Co Ltd , ,912, % Consumer Discretionary CH Equity Hubei Biocause Pharmaceutical Co Ltd ,027 n.a. n.a n.a. 45,172, % Financials CH Equity Angang Steel Co Ltd , ,874, % Materials CH Equity Qinghai Salt Lake Industry Co Ltd ,465 n.a ,081, % Materials CH Equity Spring Airlines Co Ltd , ,336, % Industrials CH Equity Tongwei Co Ltd , ,764, % Consumer Staples CH Equity Shenergy Co Ltd , ,709, % Utilities CH Equity TBEA Co Ltd , ,484, % Industrials CH Equity China Film Co Ltd , ,582, % Consumer Discretionary CH Equity Maanshan Iron & Steel Co Ltd , ,397, % Materials CH Equity Shanxi Lu'an Environmental Energy Development Co Ltd , ,350, % Energy CH Equity New Hope Liuhe Co Ltd , ,503, % Consumer Staples CH Equity Guangzhou Automobile Group Co Ltd , ,784, % Consumer Discretionary CH Equity China Resources Sanjiu Medical & Pharmaceutical Co Ltd , ,462, % Health Care CH Equity Tsingtao Brewery Co Ltd , ,304, % Consumer Staples CH Equity Tianma Microelectronics Co Ltd , ,222, % Information Technology CH Equity Tongling Nonferrous Metals Group Co Ltd , ,224, % Materials CH Equity Dongxing Securities Co Ltd , ,201, % Financials CH Equity Ningbo Zhoushan Port Co Ltd , ,593, % Industrials CH Equity Shenzhen Salubris Pharmaceuticals Co Ltd , ,611, % Health Care CH Equity Guoyuan Securities Co Ltd , ,804, % Financials CH Equity Shandong Buchang Pharmaceuticals Co Ltd ,197 n.a. n.a n.a. 122,464, % Health Care CH Equity Heilan Home Co Ltd , ,765, % Consumer Discretionary CH Equity Zhongjin Gold Corp Ltd , ,492, % Materials CH Equity Zhejiang China Commodities City Group Co Ltd ,263 n.a. n.a n.a. 27,269, % Financials CH Equity Xiamen C & D Inc , ,239, % Industrials CH Equity Suzhou Gold Mantis Construction Decoration Co Ltd 9 23, ,507, % Industrials CH Equity Hangzhou Robam Appliances Co Ltd , ,723, % Consumer Discretionary CH Equity China Avionics Systems Co Ltd , ,245, % Industrials CH Equity Zoomlion Heavy Industry Science and Technology Co Ltd , ,005, % Industrials CH Equity Perfect World Co Ltd/China , ,531, % Consumer Discretionary CH Equity Guangzhou Haige Communications Group Inc Co , ,860, % Information Technology CH Equity Financial Street Holdings Co Ltd , ,376, % Real Estate CH Equity Sinolink Securities Co Ltd , ,100, % Financials CH Equity China Spacesat Co Ltd , ,024, % Industrials CH Equity Guangshen Railway Co Ltd , ,276, % Industrials CH Equity China South Publishing & Media Group Co Ltd , ,075, % Consumer Discretionary CH Equity Shanxi Xishan Coal & Electricity Power Co Ltd ,546 n.a. n.a ,555, % Energy CH Equity Tus-Sound Environmental Resources Co Ltd , ,708, % Industrials CH Equity Huaan Securities Co Ltd ,503 n.a. n.a n.a. 33,972, % Financials CH Equity Shanghai 2345 Network Holding Group Co Ltd , ,641, % Information Technology CH Equity SooChow Securities Co Ltd , ,389, % Financials CH Equity Liaoning Cheng Da Co Ltd ,957 n.a. n.a n.a. 72,369, % Consumer Discretionary CH Equity Beijing Capital Co Ltd , ,801, % Utilities CH Equity COSCO SHIPPING Development Co Ltd ,218 n.a. n.a n.a. 25,358, % Industrials CH Equity Shanghai Tunnel Engineering Co Ltd , ,301, % Industrials CH Equity First Capital Securities Co Ltd ,493 n.a. n.a n.a. 217,409, % Financials CH Equity Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co Ltd , ,688, % Consumer Discretionary CH Equity Shenzhen Energy Group Co Ltd , ,767, % Utilities CH Equity Hubei Energy Group Co Ltd , ,630, % Utilities CH Equity Shanxi Securities Co Ltd ,764 n.a. n.a n.a. 106,240, % Financials CH Equity Jinduicheng Molybdenum Co Ltd , ,983, % Materials CH Equity Ninestar Corp , n.a. 87,315, % Information Technology CH Equity Wanxiang Qianchao Co Ltd ,464 n.a. n.a n.a. 34,884, % Consumer Discretionary CH Equity CITIC Guoan Information Industry Co Ltd ,523 n.a. n.a n.a. 139,447, % Consumer Discretionary CH Equity SDIC Capital Co Ltd ,254 n.a. n.a n.a. 45,851, % Financials CH Equity Weifu High-Technology Group Co Ltd , ,764, % Consumer Discretionary CH Equity Beijing Dabeinong Technology Group Co Ltd , ,289, % Consumer Staples CH Equity Shenzhen Zhongjin Lingnan Nonfemet Co Ltd , ,190, % Materials CH Equity Dr Peng Telecom & Media Group Co Ltd , ,392, % Telecommunication Services CH Equity Chinese Universe Publishing and Media Co Ltd , ,458, % Consumer Discretionary CH Equity Shandong Linglong Tyre Co Ltd , ,101, % Consumer Discretionary CH Equity Jihua Group Corp Ltd ,425 n.a. n.a n.a. 45,998, % Industrials CH Equity Shanghai Zhangjiang High-Tech Park Development Co Ltd ,533 n.a. n.a n.a. 29,946, % Financials CH Equity China International Marine Containers Group Co Ltd , ,758, % Industrials CH Equity China Nuclear Engineering Corp Ltd , n.a. 40,908, % Industrials 7

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