Constituents Periodical Review

Constituents of SBL52 are reviewed every 6 months. Constituents are adjusted according to the periodical review.

1 Review Time

Meetings of Index Advisory Committee are usually held in the end of June and December every year and constituents adjustment are implemented on the next trading day after the close of the first Monday in July and January next year.

2 DataUsed for Periodical Review

Usually,dataused for review in June includes trading dataand financial datafrom June 1st of the previous year to May 30th of the review year. Dataused for review in December includes trading dataand financial datafrom December 1st of the previous year to November 30st of the review year.

3 Number of Constituents Adjustment

Number of constituents adjusted at each periodical review will not exceed 10%.

4 Reserve List

Reserve list is established at each periodical review of SBL52,which is used to implement temporary adjustment during two adjacent periodical reviews.

5 Long Suspension Stocks

When reviewing constituents eligibility periodically ----for constituents of SBL52 Constituents that have been suspended for 3 months and have not resumed trading as of the deadline of dataused for constituents eligibility review will be classified as candidate deletion stocks.

•Meetings of Index Advisory Committee should report the name list of constituents that have been suspended close to 3 months as of the deadline of dataused for constituents eligibility review to the index advisory committee. The committee will discuss and decide whether they should be classified as candidate deletion stocks.

•Constituents that had been suspended for 3 months during the dataperiod used for constituents review and have been resumed trading will remain in the index in principle if they meet constituents requirement.

•Stocks that have been suspended for 3ded for 3 months and have not resumed trading as of the deadline of dataused for constituents eligibility review will not be able to be selected as candidate new additions.

•Meetings of Index Advisory Committee should report the name list of stocks that have been suspended close to 3 months and have not resumed trading yet as of the deadline of dataused for constituents eligibility review to the index advisory committee.

•Stocks that have been suspended for 3 months during the dataperiod used for constituents review can be included in the index only if they have been resumed trading for 3 months.

6 Stocks Experiencing Financial Losses

Stocks that suffered losses in financial report are not included in the index in principle at constituents periodical review unless the stocks exert great impact on the representativeness of index.