Appendix 1：
SSE Free Trade Zone Index Methodology
1. Index code and Index name
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Index Name: SSE Free Trade Zone Index
Shortened Name：SSE Free Trade Zone
Index Code: 950086
2. Base Period and Base Point
The Base Date of the SSE Free Trade Zone Index is Dec. 31, 2013.The Base Point is
1000.
3. Constituents Selection Method
3.1 Index Universe
The universe includes all A-share stocks listed in SSE except that：
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The stock has been listed for less than 3 months, or
The stock is a ST or *ST stock, or
The stock has not been completed the Share-Reform, or
The listing has been suspended.
3.2 Constituents Selection
Step 1 Theme screen: Free Trade Zone theme stocks include but not limit to real estate
development, building materials, transportation, business and trade, financials, Machinery
and equipment companies which are registered in the provinces(cities) where the FTZ is
located.
Step 2 Rank all the Free Trade Zone theme stocks in the universe by daily average
trading values and daily average total market capitalization of the most recent year
respectively in descending order and sum up the two ranks to get the overall rank. select
no more than 80 stocks as the constituents.
4. Index Calculation
SSE Free Trade Zone Index is calculated using a Paasche weighted composite price
index formula, the formula is:
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Adjusted market cap = ∑(Price× Adjusted No. of shares× weight adjusted factor).The
calculation of adjusted no. of shares is the same with that of SSE 180. The weight
adjusted factor is between 0 and 1. The weight cap of individual constituent is 5%.
5. Index Maintenance
The same with that of SSE 180 Index.
6. Constituents Adjustment
The constituent of SSE Free Trade Zone Index is periodically reviewed twice a year,
namely after market close on the second Friday of June and December. Temporary
adjustment can be made under certain circumstances if necessary.
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