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SSE A Share Index

Index Maintenance
• 1) Maintenance formula
The “Divisor Adjustment Methodology” is used to adjust all SSE Indices.
When constituents are added or removed, the share structure changes or constituents' market value changes due to non-trading factors, the divisor is adjusted to keep the index comparable overtime.
The formula is ：

Adjusted Market Cap before Adjustment            Adjusted Market Cap after Adjustment
──────────────────── = ──────────────── 
                                Old Divisor                                                       New Divisor

Market Cap after Adjustment = Market cap before adjustment + Market cap increased or decreased ；
The new divisor (also called new base period) derived from this formula is used for later index calculation.

• 2) Circumstances for index maintenance
a) New constituent for SSE New Composite Index: stocks completed Split-share Reform will be added to the Index on the second trading day after implementation.
b) New listing: A newly issued stock is included in index calculation on the initial trading day since September 23, 2002 .
c) Dividend: no index adjustment is required for dividend payment and the index is allowed to fallback naturally.
d) Right issue and bonus issue: the index is adjusted the day before the issuance. Adjusted Market Cap after the Adjustment = Adjusted Price × Adjusted No. of Shares + Adjusted Market Cap before the Adjustment (excluding stocks adjusted for right issue and bonus issue)
e) Suspension from trading: Use last trading price to calculate index until trading is resumed.
f) Delisting: Adjust the index the day before the delisting.
g) Share changes: when shares of constituents change due to other reasons (e.g. re-issuance, listing of right issue, listing of employee shares), the index is adjusted the day before the changes.
h) Exchange rate changes: indices are adjusted according to applicable exchange rate (middle price between RMB and US dollar on the last trading day of each week) at China Foreign Exchange Trading Center .
i) Stop trading: The Index will be calculated as usual if some constituents stop trading; the Index will not be calculated if all constituents stop trading.

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