Methodology Change | Solactive China Clean Energy Index | Effective Date 23/05/2024

Today, on the 09/05/2024, Solactive announces the following changes to the methodology of the following index (the ‘Affected Index’):

Rationale for Methodology Change

Adding the “Power Transmission and Distribution Products” subindustry to the index is strategically important to capture the evolving dynamics of the energy sector. This subindustry is crucial for the development and modernization of infrastructure necessary to integrate and distribute energy from emerging sources, notably solar and wind farms. As global investment shifts towards renewable energy, the demand for an enhanced grid system capable of connecting these clean energy sources to consumers is increasing. This addition ensures the index reflects significant growth trends and technological advancements in energy distribution, aligns with regulatory incentives promoting renewable energy, and enhances diversification by including a sector pivotal for the transition to sustainable energy practices. This inclusion not only captures the expanding role of companies involved in power transmission and distribution but also aligns the index with the critical infrastructural developments needed for a cleaner, efficient energy future.

Changes to the Index Guideline

2.1.3 INDEX UNIVERSE REQUIREMENTS
Old text:
…Stamping and Forging Shops, Ball and Roller Bearings Products, Electrical
Systems and Equipment Manufacturing.

New text:
…Stamping and Forging Shops, Ball and Roller Bearings Products, Electrical
Systems and Equipment Manufacturing, Power Transmission and Distribution Products.

The methodology change will become effective in 10 business days after this announcement i.e., 23.05.2024. The first application will be applied with the Market Watch in June 2024 and rebalance in July 2024. 

Defined terms used in this announcement, but not defined herein, have the meaning assigned to them in the respective index guideline of the Affected Indices. The amended version of the index guideline will be available on the effective date.