In order to enhance the index investability, Shenzhen Securities Information Co., Ltd.decided to revise the methodologies of  CNI Securities Top Index and CNI Domestic Substitute Index.

1. CNI Securities Top Index

A) Adjust the index universe from ‘Company business classified as the securities industry and capital markets services’ to ‘Company business classified as the securities industry’.

B) Revise the adjustment factor to: Determine the score for each index constituent based on the wealth-management income in the latest annual report and calculate the adjustment factor according to the product of the wealth-management income score and the free-float market cap; The weight of individual constituent is set no more than 15% with the total weight of the top 5 constituents no more than 60% in each periodic review. The rest of the methodology remains the same.

2. CNI Domestic Substitute Index

A) Adjust the index name and short name to ‘CNI Independent Technology Innovation Index’ and ‘Independent Tech’.

B) Adjust the index universe to: Company business classified as the fields encouraged by independent innovation, including new generation of information technology, integrated circuit, high-end manufacturing, aviation equipment, biotechnology, new material, etc.

C) Revise the selection criteria to: (1) Remove the stocks with the average proportion of total amount of R&D expenditure to total amount of operating revenue less than 5% within the past 2 years and the stocks in the bottom 10% of the number of increased invention patents within the past year; (2) Rank the remaining stocks by the following 4 indicators separately in descending order: the daily average total market cap within the latest 6 months, the average total amount of R&D expenditure within the past 2 years, the average proportion of total amount of R&D expenditure to total amount of operating revenue within the past 2 years, and the growth of net income within the past year, then sum up the ranks of 4 indicators as the comprehensive score; (3) Rank the stocks by the comprehensive score in ascending order and select top 50 stocks as index constituents.

D) Adjust the buffer zone.

E) Revise the adjustment factor to: The adjustment factor is designed to set the weight of individual constituent no more than 10% and the total weight of the top 5 constituents does not exceed 60%. The rest of the methodology remains the same.

The revision will be implemented on April 21, 2022. Please refer to the official website of CNI Index (www.cnindex.com.cn) for more details.

Shenzhen Securities Information Co., Ltd.