Shanghai Stock Exchange Corporate Governance Index To Adjust Constituents

According to the index rules and upon examination by the Expert Consultative Committee for Corporate Governance Sector Appraisal, the Shanghai Stock Exchange (SSE) and China Securities Index Co., Ltd. (CSI) have recently announced to adjust the constituents of the SSE Corporate Governance Index on July 1, 2008. The adjustment will come into effect on the same day.

In the adjustment, 32 stocks will be added, including Industrial Bank Co., Ltd. And PetroChina Company Limited, while no stock will be deleted. After the adjustment, the number of constituents will increase from 199 to 231. All the constituents have the total market capitalization of RMB10.6993 trillion, accounting for 70.49% of the total market capitalization of A shares on the SSE. Meanwhile, their floating market capitalization is RMB2.7197 trillion, accounting for 61.64% of the total market capitalization of A shares on the SSE.

According to the index rules, the constituents of the SSE Corporate Governance Index are made up of all the stocks of the SSE Corporate Governance Sector. Based on the "Appraisal Measures of SSE Corporate Governance Sector", the SSE Corporate Governance Sector is finally formed through voluntary application of listed companies, public opinion solicitation, comments by consultancies, primary selection, and examination by the Expert Consultative Committee. The sector will be re-appraised from May to June every year. According to the result of the re-appraisal, the CSI will adjust the SSE Corporate Governance Index in early July. For details of the appraisal measures of SSE Corporate Governance Sector and the compiling method of the index, please access the websites of the SSE (www.sse.com.cn) and CSI (www.csindex.com.cn).

During the appraisal of the SSE Corporate Governance Sector, the SSE and the CSI received help from the following 18 special units of corporate governance appraisal:

1. Orient Securities Co., Ltd.
2. Everbright Securities Co., Ltd.
3. CITIC Securities Co., Ltd.
4. China Chengxin Rating Co., Ltd.
5. Pengyuan Credit Rating Co., Ltd.
6. Guotai Junan Allianz Fund Management Co., Ltd.
7. China International Capital Corporation Limited
8. Haitong Securities Company Limited
9. Research Center for Financial Engineering of Nanjing University
10. Fortune SGAM Fund Management Co., Ltd.
11. Harvest Fund Management Co., Ltd.
12. Guotai Junan Securities Co. Ltd.
13. RepuTex
14. China Galaxy Securities Co., Ltd.
15. Essence Securities Co., Ltd.
16. E Fund Management Co., Ltd.
17. China Life Insurance Asset Management Company Limited
18. Shenyin & Wanguo Securities Co., Ltd.