(Shanghai Stock Exchange) - The Shanghai Stock Exchange (SSE) and China Securities Index Co., Ltd. (CSI) have recently re-evaluated the SSE Corporate Governance Sector after the election of a new Expert Consultative Committee for SSE Corporate Governance Sector Appraisal. The new 11-member Committee, with Hu Ruyin taking the position of Chairman, consists of domestic experts and renowned scholars in the field of corporate governance research. Established in 2007, the Committee has devoted itself to providing consultation service and suggestions for decision-making for the appraisal of the SSE Corporate Governance Sector. Both the SSE 180 Corporate Governance Index and the SSE Social Responsibility Index were developed and launched based on the SSE Corporate Governance Sector.

Meanwhile, the Committee reassessed the SSE Corporate Governance Sector. In line with the "Appraisal Measures of SSE Corporate Governance Sector", the SSE Corporate Governance Sector is finally formed through voluntary application of listed companies, public opinion solicitation, comments by consultancies, primary selection, and examination by the expert consultative committee. The Sector will be re-appraised from May to June every year. In this re-evaluation, 9 stocks will be added in the Sector, including Bank of Nanjing Co., Ltd. and China South Locomotive & Rolling Stock Corporation, while 8 old ones, including Western Mining Co., Ltd. and Tongwei Co., Ltd., will be deleted. After the adjustment, the number of constituents of the Sector will increase from 241 to 242.

According to the index rule, the SSE Corporate Governance Index, the SSE 180 Corporate Governance Index and the SSE Social Responsibility Index will be adjusted accordingly upon the adjustment to the SSE Corporate Governance Sector. The constituents of the SSE Corporate Governance Index are made up of all the stocks in the SSE Corporate Governance Sector. Ten constituents of the SSE 180 Corporate Governance Index will be replaced through adding such stocks as China South Locomotive & Rolling Stock Corporation and China Shipping Container Lines Company Limited and deleting such stocks as Zijin Mining Group Co., Ltd. and China Coal Energy Company Limited. Besides, 10 constituents of the SSE Social Responsibility Index will be replaced through adding such stocks as SAIC Motor Corporation Limited and Tiandi Science & Technology Co., Ltd. and deleting such stocks as China Coal Energy Company Limited and Jinan Iron & Steel Co., Ltd. The adjustment will take effect on July 1, 2010.

After the adjustment, the total market capitalization of the constituents of the SSE Corporate Governance Index, the SSE 180 Corporate Governance Index and the SSE Social Responsibility Index are RMB9.5733 trillion, RMB8.5474 trillion and RMB4.9149 trillion, accounting for 64.31%, 57.42% and 33.02% of the total of the stocks on the SSE, respectively. Moreover, the average social contribution value per share of the SSE Social Responsibility Index reaches RMB2.30, 53.54% higher than the average level of the SSE Corporate Governance Sector.

Fifteen institutions that participated in the appraisal of the SSE Corporate Governance Sector are Orient Securities Co., Ltd., China International Capital Corporation Limited, Haitong Securities Company Limited, Guotai Junan Securities Co. Ltd., Shenyin & Wanguo Securities Co., Ltd., Fortune SGAM Fund Management Co., Ltd., Guotai Junan Allianz Fund Management Co., Ltd., AEGON-INDUSTRIAL Fund Management Co., Ltd., E Fund Management Co., Ltd., CCB Principal Asset Management Co., Ltd., Bank of Communications Schroder Fund Management Co., Ltd., Research Center for Financial Engineering of Nanjing University, Pengyuan Credit Rating Co., Ltd., China Chengxin Securities Rating Co., Ltd., and Chinese Federation for Corporate Social Responsibility.