CSI MarketGrader China 200 Index


Base Date:

December 31, 2007

No. of Components:

200

Minimum Market Cap:

RMB 700 million

Minimum Daily Avg. Liquidity:

RMB 14 million

Sector Limit:

20% (40 companies)

Geographic Exposure:

Mainland China

Rebalance Frequency:

Semi-annual

Underlying Universe:

All A shares listed in the Shanghai and Shenzhen Stock Exchanges that are covered and rated by MarketGrader and are not "ST" stocks.


Methodology


Selection
All index components are selected based on their overall MarketGrader Grade. Built on a scale between 0 and 100, our Overall Grade is based on our 24 fundamental indicators, which are broken down into four analytical categories: Growth, Value, Profitability and Cash Flow. All of our indicators and our overall grades are calculated daily for all companies under coverage.


Equal Weighting
All index constituents are equally weighted every time the index is rebalanced. No weight modifications or adjustments are made to the portfolio between rebalance periods.


Liquidity
All index constituents must have a minimum total market cap of RMB 700 million, a minimum 3-month daily traded value of RMB 14 million and at least RMB 350 million in aggregate trading volume in the trailing 12 months preceding the index selection date. At least 20% of all index components (40 companies) must have a market cap of at least RMB 14 billion on the index selection date.


Classification
Stocks in the index are classified based on the CSI Classification System.


Diversification
No more than 20% of the index (40 companies) may belong to the same economic sector.


Rebalance Discipline
The index is reconstituted and rebalanced twice a year on the next trading day after the close of trading on the second Friday in June and December. The new index selections for the period are made on the Tuesday prior to the rebalance date.

Strategy

The CSI MarketGrader China 200 Index seeks to follow the most fundamentally sound companies with the best growth prospects in Mainland China. It seeks to give local and global investors access to a market that has been gradually opening to foreign investments, and that houses some of the most promising companies in China. As the Shanghai and Shenzhen stock markets continue to develop into world-class investor destinations, the CSI MarketGrader Index series seek to expose investors to the best opportunities within them. Since their constituents are equally weighted, the index gives each company an equal opportunity to contribute to the performance of the portfolio regardless of market size, sector, business model or affiliation with the state.




Licensing Opportunities

156 Almeria Ave, Suite 201
Coral Gables, Florida 33134 USA
Phone (888) 529-1767
Licensing@marketgrader.com




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