Hang Seng Composite Index Series Hang Seng Freefloat Index Series

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www.hsi.com.hk Hang Seng Freefloat Index Series The ( HSCI Series ) comprises the top 200 listed companies on the Hong Kong stock market. This series covers about 90% of the total market capitalisation of all stocks listed on the Main Board of the Stock Exchange of Hong Kong ( SEHK ). It is divided into the Geographical Indexes and Industry Indexes, and aims to provide a comprehensive benchmark of the performance of stocks listed on the SEHK. Hang Seng Composite Index Industry Indexes Energy Materials Industrial Goods Consumer Goods Services Telecommunications Utilities Hang Seng Hong Kong Composite Index Hang Seng HK LargeCap Index Hang Seng HK MidCap Index Hang Seng HK SmallCap Index Hang Seng Mainland Composite Index Hang Seng China-Affiliated Corporations Index Geographical Indexes Financials Properties & Construction Information Technology Conglomerates

Hang Seng Freefloat Index Series Stock Universe Companies with primary listings on the Main Board of the SEHK, including H shares, with the exception of the following stocks: 1. Secondary listings on the Main Board of the SEHK 2. Listings on the Growth Enterprise Market 3. Preference shares, debt securities and other derivatives Listing History Requirement No listing history is required. Following their IPO, stocks will be included in the Stock Universe for the next review if they fulfill the requirements of the turnover screening, as set out below. Turnover Screening A stock must not have had more than 20 trading days without turnover over the past 12 months, excluding days when the stock is suspended from trading. Stocks with a listing history of less than one year will be counted on a pro-rata basis. Removal from the HSCI In the half-yearly reviews, constituents will be removed if: they fail to meet the requirements of the turnover screening; or their 12-month average market capitalisation ranking falls below 240th position Addition to the HSCI In the half-yearly reviews, companies will be included if: they fulfill the requirements of the turnover screening; and their 12-month average market capitalisation ranking rises above 160th position Index Calculation Full market capitalisation weighted methodology is adopted for all indexes in the HSCI Series. Hang Seng Hong Kong Composite Index Hang Seng Mainland Composite Index The HSCI is subdivided into two Geographical Indexes: Hang Seng Mainland Composite Index ( HSMLCI ) and Hang Seng Hong Kong Composite Index ( HSHKCI ).The two Geographical Indexes offer investors broad-based benchmarks for gauging the different risk and return profiles of companies according to their principal place of business. HSCI constituent companies with over 50% of their sales revenue (or profits, or assets if more appropriate) derived from mainland China are included in the Hang Seng Mainland Composite Index. Companies not included in the HSMLCI, where sales revenue is derived from Hong Kong and outside the mainland China are then included in the Hang Seng Hong Kong Composite Index. The geographical status of the constituents is reviewed based on publicly available information. To preserve the stability of the index, once a company is included in the HSMLCI, it will remain there unless the proportion of its sales / profits / assets in mainland China falls below 30% in that year, or falls below 40% in two consecutive years. The number of constituents of the HSHKCI and HSMLCI varies according to the geographical status of the 200 HSCI constituents.

Hang Seng HK LargeCap Index Hang Seng HK MidCap Index Hang Seng HK SmallCap Index The Hang Seng Hong Kong Composite Index ( HSHKCI ) is also divided into three sub-indexes based on the size of the constituents. The Hang Seng HK LargeCap Index ( HSHKLI ) covers about 80% of the market capitalisation of the HSHKCI with 15 constituent stocks. In regular reviews, any stock with a market capitalisation ranking that falls below 18th position in the HSHKCI will be removed from the HSHKLI, while any stock ranking above 12th position will be included. The Hang Seng HK MidCap Index ( HSHKMI ) comprises 35 constituent stocks and covers the next 15% of the market capitalisation of the HSHKCI, following the top 80%. In regular reviews, any stock with a market capitalisation ranking that falls below the 60th position in the HSHKCI will be removed from the HSHKMI, while any stock ranking above 40th position will be included. The Hang Seng HK SmallCap Index ( HSHKSI ) includes the remaining stocks of the HSHKCI which are not included in the HSHKLI and HSHKMI. It covers the remaining 5% of the market capitalisation of the HSHKCI. Hang Seng China-Affiliated Corporations Index The Hang Seng China-Affiliated Corporations Index ( HSCCI ) was launched to provide a definition and benchmark for investors interested in Red Chips, which are Mainland-controlled companies incorporated outside the mainland China and listed in Hong Kong. As a member of the HSCI Series, the HSCCI is comprised of constituents from the 200 HSCI constituent companies. To be eligible as a HSCCI constituent, a minimum of 30% of shareholdings in a company should be held by Mainland entities. The choice of a 30% strategic shareholding as the threshold aligns with The Codes on Takeovers and Mergers issued by the Securities and Futures Commission. As part of the Hang Seng Mainland Composite Index, HSCCI constituents should have at least 50% of their sales revenue (or profits, or assets if more relevant) derived from mainland China. Hang Seng Composite Index Industry Indexes The 200-stock HSCI is divided into 11 Industry Indexes, reflecting the performance of different sectors of the Hong Kong stock market. The Indexes are compiled by grouping the constituents of the HSCI under closest-fit industry category based on the Hang Seng Industry Classification System. The primary parameter of stock classification is the revenue for each business area of a company. Profit or assets will be taken into consideration where they can better reflect a company s business. The 11 industries are: 00 Energy ( ENE ) 30 Services ( SER ) 60 Properties & Construction ( P&C ) 05 Materials ( MAT ) 35 Telecommunications ( TEL ) 70 Information Technology ( IT ) 10 Industrial Goods ( IND ) 40 Utilities ( UTI ) 80 Conglomerates ( CGM ) 20 Consumer Goods ( CSG ) 50 Financials ( FIN )

Hang Seng Freefloat Index Series Comprised of the same 200 constituents as the, the Hang Seng Freefloat Index Series ( HSFI Series ) is aimed at meeting the demand for an alternative market benchmark that takes into account long-term strategic holdings not readily available for trading in the market. The HSFI Series includes six indexes, which are further grouped into two series - the Master Indexes and the Prime Indexes. Hang Seng Freefloat Index Series Hang Seng Freefloat Composite Index Hang Seng 50 Hang Seng HK Freefloat Index Hang Seng HK 25 Hang Seng Mainland Freefloat Index Master Indexes Hang Seng Mainland 25 Prime Indexes Index Calculation Freefloat-adjusted market capitalisation weighted methodology is adopted for all indexes in the HSFI Series. The Master Indexes Hang Seng Freefloat Composite Index ( HSFCI ) Hang Seng HK Freefloat Index ( HSHKFI ) Hang Seng Mainland Freefloat Index ( HSMLFI ) The three Master Indexes have the same constituents as the Geographical Indexes of the, but adopt a freefloat-adjusted market capitalisation weighted methodology with a 15% capping on the weighting of individual stocks. The Prime Indexes Hang Seng HK 25 The Hang Seng HK 25 ( HSHK25 ) comprises the 25 largest listed companies in the Hong Kong market, in terms of freefloat-adjusted market capitalisation, which derive the majority of their revenue from Hong Kong or outside mainland China. As such, the HSHK25 acts as a comprehensive Hong Kong index to gauge the performance of Hong Kong large-cap companies and reflect trends in the Hong Kong economy. Hang Seng Mainland 25 The Hang Seng Mainland 25 ( HSML25 ) comprises the 25 largest listed companies in the Hong Kong market, in terms of freefloat-adjusted market capitalisation, which derive the majority of their revenue from mainland China. Both H shares and red-chip companies are eligible for inclusion in the index. As such, the HKML25 acts as a comprehensive large-cap China index to gauge the performance of China plays listed in Hong Kong. Hang Seng 50 The Hang Seng 50 ( HS50 ) comprises the top 50 companies in the Hong Kong market in terms of freefloat-adjusted market capitalisation, with 25 companies from the HSHK25 and the HSML25 respectively.

Index Overview HSCI HSHKCI HSHKLI HSHKMI HSHKSI Hang Seng Composite Index - Industry Indexes HSMLCI HSCCI* Launch Date 3 October 2001 11 September 2006 3 October 2001 16 June 1997 Backdated to Base Date Base Index Review Frequency 3 January 2000 4 January 1993 3 January 2000 2,000 Half-yearly Vendor Codes Bloomberg HSCI HSHKCI HSHKLI HSHKMI HSHKSI ENE : MAT : IND : CSG : SER : TEL : UTI : FIN : P&C : IT : CGM : HSCIEN HSCIMT HSCIIN HSCICG HSCISV HSCITC HSCIUT HSCIFN HSCIPC HSCIIT HSCICO HSMLCI HSCCI Thomson Reuters.HSCI.HSHCI.HSHLCI.HSHMCI.HSHSCI ENE : MAT : IND : CSG : SER : TEL : UTI : FIN : P&C : IT : CGM :.HSCIE.HSCIM.HSCIIG.HSCICG.HSCIS.HSCIT.HSCIU.HSCIF.HSCIPC.HSCIIT.HSCIC.HSMCI.HSCC * The HSCCI had a base index of 1,000 at its launch on 16 June 1997. On 3 October 2001 with the launch of the HSCI Series, the HSCCI was rebased with a value of 2,000 as at 3 January 2000 to align with the HSCI Series. A conversion factor of 1.53179 was used to convert the historical index value.

Hang Seng Freefloat Index Series Master Indexes HSFCI HSHKFI HSMLFI Prime Indexes HS50 HSHK25 HSML25 Launch Date Backdated to Base Date Base Index Review Frequency Vendor Codes 23 September 2002 20 January 2003 3 January 2000 3 January 2000 2,000 Half-yearly Bloomberg Thomson Reuters HSFCI HSHFCI HSMFCI.HSFCI.HSHFCI.HSMFCI HSF50 HSFHK25 HSFML25.HSF50.HSFH25.HSFM25 08/08-013 OA Disclaimer: The above information is for reference only and is subject to change from time to time. Please contact Hang Seng Indexes Company Limited for the most updated information.