Shanghai Stock Exchange: SSE 180 Financial Index To Be Launched

According to the announcement by the Shanghai Stock Exchange (SSE) and China Securities Index Co., Ltd. (CSI), the SSE 180 Financial Index will be officially launched on December 10. The new index, reflecting the trend of financial stocks in the SSE 180 Index covering banks, securities, insurance and trust, will provide investors with another investment target index. Its base day, June 28, 2002, is the same as that of the SSE 180 Index. Its base point is 1,000, with the code of 000018 and the short description of "SSE 180 Financial".

According to the published index scheme, constituents of the SSE 180 Financial Index are composed of stocks of banks, insurance, securities and trust in the SSE 180 Index. So far, the SSE 180 Financial Index consists of 12 constituents. They are 9 bank stocks including Bank of China Limited and Industrial and Commercial Bank of China Limited, 2 insurance stocks including China Life Insurance Company Limited and Ping An Insurance (Group) Company of China, Ltd., and CITIC Securities Co., Ltd. The total market capitalization of the 12 constituents has reached RMB6,960.2 billion, or 28.11% of the total on the SSE. Their floating capitalization is RMB1,143.5 billion, or 21.44% of the total on the SSE.

The feature in compiling of the SSE 180 Financial Index is the 15% weight restriction on each single stock. Specifically, an upper limit factor of weight will be adopted to make a single stock’s weight below 15% or above 15% only for a short period of time, thus weakening its impact on the index. Like the SSE 180 Index, the upper limit factor of weight will be modified twice a year on the 1st trading days of January and July following the constituents’ regular adjustment. For the compilation method and details of the SSE 180 Financial Index, please refer to the SSE and CSI websites.

The introduction of the SSE 180 Financial Index aims to reflect the trend of major financial stocks on the Shanghai securities market. With more and more large and medium financial enterprises listing in the second half of 2006, the financial stocks, whose trend greatly influences the market, have become the most important parts on the market. The launch of the SSE 180 Financial Index, giving investors a better and clearer understanding of the comprehensive operational features of financial stocks, will serve as a reference for investors in investment analysis and decision.

The SSE 180 Financial Index closed on November 22, 2007 at 6,292 points, up 529.2% from the base day.

Attachment: SSE 180 Financial Index Constituents List and Upper Limit Factor of Weight

Stock code	Stock Name	Upper Limit Factor of Weight
600000	Shanghai Pudong Development Bank Co., Ltd.	0.7817
600015	Hua Xia Bank Co., Ltd.	1.0000
600016	China Minsheng Banking Corp., Ltd.	1.0000
600030	CITIC Securities Co., Ltd.	0.7887
600036	China Merchants Bank Co., Limited	0.8417
601166	Industrial Bank Co., Ltd.	1.0000
601318	Ping An Insurance (Group) Company of China, Ltd.	1.0000
601328	Bank of Communications Co., Ltd.	1.0000
601398	Industrial and Commercial Bank of China Limited	1.0000
601628	China Life Insurance Company Limited	1.0000
601988	Bank of China Limited	1.0000
601998	China CITIC Bank Corporation Limited	1.0000