>HANG SENG BEES: An Open Ended Listed Index Scheme Exchange Traded Fund (BENCHMARK)

HANG SENG BEES
An Open Ended Listed Index Scheme
Exchange Traded Fund

New Fund Offer Opens On: February 15, 2010. Closes On: February 24, 2010

■ Hang Seng Index (“HSI”) was launched on Nov 24, 1969 and is one of the earliest stock market indices in Hong Kong

■ Hang Seng Indexes Company Ltd. compiles and publishes the HSI

■ Widely recognised as the barometer of the Hong Kong Stock market

■ HSI measures the performance of largest and most liquid companies listed in Hong Kong

■ HSI adopts free float-adjusted market capitalisation weighted methodology with 15% cap on each constituent weightage

■ It currently comprises of 42 stocks* which are representative of the Hong Kong stock market

■ Represents about 59.74% of total market capitalisation of Hong Kong stock exchange$ as on Jan 29, 2010

HSI – Selection Criteria

To be eligible for selection, a company in the stock universe:
■ Must be among those companies that constitute the top 90% of the total market value of all primary listed shares on the Main Board of the stock exchange of Hong Kong (“SEHK”) (market value is expressed as an average of the past 12 months)

■ Must be among those companies that constitute the top 90% of the total turnover of all primary listed shares on the SEHK (turnover is aggregated and individually assessed for eight quarterly sub-periods for the past 24 months)

■ Should normally have a listing history of 24 months on the SEHK or meet the requirements of few guidelines for handling Large-Cap stocks listed for less than 24 months

From the many eligible candidates, final selections are based on the following
■ The market value and turnover ranking of the company
■ The representation of the relevant sub-sector within the HSI directly reflecting that of the market
■ The financial performance of the company

To read the full report: HANG SENG BEES