S&P/CITIC CHINA BOND INDICES

Transcription

1 October 2006 S&P/CITIC CHINA BOND INDICES INDEX METHODOLOGY

2 Table of Contents Introducton 3 Hghlghts 3 Partnershp 4 Index Famly 4 Elgblty Crtera 5 S&P/CITIC Government Bond Index 5 S&P/CITIC Corporate Bond Index 5 S&P/CITIC Convertble Bond Index 5 S&P/CITIC Inter-bank Bond Index 6 S&P/CITIC Composte Bond Index 6 Selecton Rules 7 S&P/CITIC Composte Bond Index 7 Index Calculaton 11 Index Prces 11 Index Weghts 11 Calculaton Methodology 11 Dvsor Adjustment 12 Recalculaton Polcy 12 Index Mantenance 13 Index Revews and Mantenance 13 Rebalancng 13 Base Date 14 Index Governance 15 Index Commttee 15 Standard & Poor s: S&P/CITIC Chna Bond Indces 1

3 Index Polcy 16 Index Announcements 16 Holday Schedule 16 Index Dssemnaton 17 Web ste 17 S&P Contact Informaton 18 Index Management 18 Meda Relatons 18 Index Operatons & Busness Development 18 Dsclamer 19 Standard & Poor s: S&P/CITIC Chna Bond Indces 2

4 Introducton The S&P/CITIC Bond Index famly was ntroduced n The seres conssts of fve dstnct fxed ncome ndces whch track Chna s government, corporate, nter-bank and convertble bond markets. The S&P/CITIC Bond Indces are the well-accepted nsttutonal benchmark for nvestng n the entre Chna bond market, as well as the broadest array of fxed ncome sub-strateges. Hghlghts The S&P/CITIC bond ndces consst of the S&P/CITIC Government Bond Index, the S&P/CITIC Corporate Bond Index, and the S&P/CITIC Convertble Bond Index. All are calculated real-tme. The seres also ncludes the S&P/CITIC Inter-bank Bond Index and the S&P/CITIC Composte Bond Index, whch are calculated at the end-of-day. The S&P/CITIC Bond Index methodology s consstent wth nternatonal practce and standards, applyng the basc prncples of ndex management, provdng consstency, transparency and lqudty to the fnancal markets. The S&P/CITIC Composte Bond Index ncludes floatng-rate bonds, snce they exst n bond nvestment portfolos. The benchmark, therefore, reflects the performance of the entre bond market. A lqudty crtera based on value traded s used for each ndex rebalancng to ensure the hgh lqudty of the ndex. In May and November each year, the S&P/CITIC Composte Bond Index undergoes a revew and rebalancng. The weghts of exchange-traded bonds and nter-bank bonds, as well as the number of bonds allocated to fxed-rate and floatngrate bond sectors wthn the nter-bank bond market, are determned by each bond s correspondng value traded over the prevous sx months. Due to dfferences n ndex elgblty crtera, consttuents of the S&P/CITIC Composte Bond Index are not the smple combnatons of the other ndces. For example, at the begnnng of each month, the consttuents of the S&P/CITIC Inter-bank Bond Index are the 30 most actvely quoted fxed-rate bonds durng the pror month. Not all of these bonds, however, may be ncluded n the S&P/CITIC Composte Bond Index, due to ts unque elgblty crtera. Standard & Poor s: S&P/CITIC Chna Bond Indces 3

5 Only nvestment grade bonds are elgble for ncluson n the S&P/CITIC Bond Indces. All government bonds are regarded as nvestment grade. Fnancal bonds are regarded as nvestment grade, as well, due to the lack of a well-accepted Chna bond ratng standard and the hgh credtablty of fnancal bond ssuers, such as polcy banks. In the future, f a well-accepted bond ratng standard s establshed n Chna, S&P/CITIC wll apply a new standard to ndex ncluson and revew. Partnershp Standard & Poor s and CITIC Securtes Co. Ltd. have formed a jont venture company called S&P/CITIC Index Informaton Servces whch has ownershp of the S&P/CITIC Bond Index seres and wll mantan, market and lcense them on an ongong bass. Index Famly The S&P/CITIC Bond Index seres belong to a sute of ndces branded under the jont venture S&P/CITIC Index Informaton Servces. The ndces nclude the Chna A Share seres -- the S&P/CITIC 50, the S&P/CITIC 300 and the S&P/CITIC Composte. The famly also ncludes the S&P/CITIC Chna 30, whch contans Chnese companes lsted n markets other than the Chnese manland. Standard & Poor s: S&P/CITIC Chna Bond Indces 4

6 Elgblty Crtera S&P/CITIC Government Bond Index Selecton Crtera. Government bonds lsted on the Shangha Stock Exchange that meet all of the followng crtera: Term to Maturty: No less than 1 year. Fxed Coupon Rate: Includes bonds that pay perodc coupons and bonds that delay the coupon payments untl maturty. Outstandng Par: No less than RMB 100 mllon. Addtons and Deletons. Government bonds lsted on the Shangha Stock Exchange that meet the above selecton crtera wll be ncluded n the ndex on the frst tradng day followng ts lstng day. Bonds that mature n less than one year wll be removed from the ndex. S&P/CITIC Corporate Bond Index Selecton Crtera. Corporate bonds lsted on the Shangha or Shenzhen Stock Exchange that meet all of the followng crtera: Term to maturty: No less than 1 year. Fxed Coupon Rate: Includes bonds that pay perodc coupons and bonds that delay the coupon payments untl maturty. Outstandng Par: No less than RMB 100 mllon. Mnmum credt ratng: Investment grade. Addtons and Deletons. Corporate bonds that meet the above selecton crtera wll be ncluded n the ndex on the frst tradng day followng ts lstng day. Bonds that mature n less than one year wll be removed from the ndex. S&P/CITIC Convertble Bond Index Selecton Crtera. Convertble bonds lsted on the Shangha or Shenzhen Stock Exchange that meet all of the followng crtera: Term to maturty: Must be n or before the converson perod. Outstandng Par: No less than RMB 30 mllon. Mnmum credt ratng: Investment grade. Standard & Poor s: S&P/CITIC Chna Bond Indces 5

7 Addtons and Deletons. Convertble bonds that meet the above selecton crtera wll be added to the ndex on the frst tradng day followng ts lstng day. Consttuents that no longer meet the above crtera wll be removed from the ndex. S&P/CITIC Inter-bank Bond Index Selecton Crtera. Bonds traded n the Inter-bank markets that meet all of the followng crtera: Term to Maturty: No less than 1 year Fxed coupon rate: Includes bonds that pay perodc coupons and bonds that delay the coupon payments untl maturty. Outstandng Par: No less than RMB 100 mllon. Mnmum credt ratng: Investment grade. Rebalancng Procedure. The Index Commttee revews nter-bank bonds at the end of each month for ther elgblty and lqudty. The 30 most actvely quoted bonds are ncluded n the ndex untl the next rebalancng date. Any consttuent changes wll be mplemented at the end of the month, after the market close. S&P/CITIC Composte Bond Index Elgblty for Canddate Pool. Canddates for ndex ncluson must meet all of the followng crtera: Term to maturty: No less than 1 year. Outstandng Par: No less than RMB 100 mllon. Mnmum credt ratng: Investment grade. For a government bond lsted on both the Shangha and Shenzhen Stock Exchanges under dfferent tckers, only the tcker on the Shangha Stock Exchange stays n the canddate pool. The prce from the Shangha Stock Exchange and the total par amount ssued for the bond (nstead of the custodan amount at the Shangha Stock Exchange) are used for ndex calculaton. For a government bond lsted on both exchanges and n the nter-bank bond market under dfferent tckers, only the tcker on the Shangha Stock Exchange stays n the canddate pool. The prce from Shangha Stock Exchange and the total par amount ssued for the bond (nstead of the custodan amount at the exchanges) are used for ndex calculaton. Standard & Poor s: S&P/CITIC Chna Bond Indces 6

8 Selecton Rules S&P/CITIC Composte Bond Index In addton to the elgblty crtera lsted n the pror secton, canddate bonds lsted on the exchanges or n the nter-bank market are revewed separately based on the followng rules. 1. All elgble canddate bonds lsted on exchanges wll be ncluded n the S&P/CITIC Composte Bond Index. 2. The total number of bonds allocated to the nter-bank sector and the proporton of dfferent types of bonds wthn the nter-bank sector (fxed versus floatng rate bonds; fnancal bonds versus government bonds) are adjusted at the end of May and November, after the market close. The changes wll take effect n June and December, respectvely. For ndex rebalancngs that take place n months other than May and November, the total number of bonds ncluded n the nter-bank bond sector and the proporton of dfferent types of bonds wthn the sector reman unchanged. Procedures to determne the above weghts are as follow: a. The number of bonds allocated to the nter-bank bond sector:. At the end of each May (November), after the market close, the cumulatve value traded from the begnnng of the pror November (May) to the end of Aprl (October) s calculated for all exchange-lsted government bonds (QJ) and nter-bank bonds (QY, ncludng both government bonds and fnancal bonds). Calculate: QY Rato 1 = 50% QJ. The total outstandng par value (denoted as TSJ and TSY, respectvely) and the numbers of bonds (denoted as TNJ and TNY, respectvely) for the exchange government bond market and the nter-bank market (ncludng both government bonds and fnancal bonds) are calculated. The average outstandng par value per bond can then be derved for both markets as SJ and SY, respectvely. Standard & Poor s: S&P/CITIC Chna Bond Indces 7

9 Calculate: SJ Rato2 = SY TSJ / TNJ = TSY / TNY TSJ TNY = TSY TNJ Assume the number of exchange-lsted government bonds ncluded n the ndex s N.. Determne the number of nter-bank bonds (ncludng both government bonds and fnancal bonds) to nclude n the ndex by usng the formula below, and substtutng from above: YN = N Rato1 Rato ( QY / SY ) = N 50% ( QJ / SJ ) ( QY / TSY ) TNY = N ( QJ / TSJ ) TNJ 2 50% b. The weghts of dfferent types of bonds wthn the nter-bank sector, ncludng fxed-rate bonds, floatng-rate bonds, government bonds, and fnancal bonds.. Calculate the quantty of fxed-rate (QG) and floatng-rate (QF) bonds that currently exst n the canddate pool. The number of fxed-rate nter-bank bonds (YGN) to nclude n the ndex can then be determned as: YGN = YN QF ( 1+ / QG) The number of floatng-rate nter-bank bonds to nclude n the ndex s: YFN = YN YGN. Calculate the quantty of fxed-rate government (QZG) and fxed-rate fnancal (QRG) bonds that currently exst n the canddate pool. Calculate the number of each category for ncluson as: YGN YGGN = and YGJN = YGN YGGN, respectvely. ( 1+ QRG / QZG). Calculate the number of floatng-rate government and floatngrate fnancal bonds that currently exst n the canddate pool as Standard & Poor s: S&P/CITIC Chna Bond Indces 8

10 QZF and QRF, respectvely. Calculate the number of each category for ncluson as: YFN YFGN = and YFJN = YFN YFGN, respectvely. ( 1+ QRF / QZF ) Based on the above calculatons, we can determne the numbers of dfferent types of nter-bank bonds ncluded n the composte ndex. Ths ncludes the total number of nter-bank bond consttuents (YN), the number of fxed-rate nter-bank bonds (YGN), the number of floatng-rate nter-bank bonds (YFN), the number of fxed-rate nter-bank government bonds (YGGN), the number of fxed-rate nter-bank fnancal bonds (YGJN), the number of floatng-rate nter-bank government bonds (YFGN), and the number of floatng-rate nter-bank fnancal bonds (YFJN). 3. Selecton Rules for Inter-bank Fxed-rate Government Bonds Durng the sem-annual revews at the end of each May and November, the number and proportons of nter-bank bonds wthn varous categores are adjusted as descrbed n secton 2, above. For the regular monthly revew, other than May and November, the number of bonds for each category wthn the nterbank bond sector remans unchanged. Now that the number of bonds has been determned, the nter-bank fxed-rate government bonds are selected based on the followng rules: a. At the end of every month, S&P/CITIC calculates the average bd prce wthn the past month for each nter-bank fxed-rate government bond. The theoretcal duraton (X) of each bond s derved based on the average bd prce. These bonds are classfed nto fve duraton groups: 0< X<=1, 1<X<=3, 3<X<=7, 7<X<=10, and X>10. The outstandng par value of every duraton group ( t, = 1,2, L5 ) s summed, and the weght of each group s calculated as t w =, w, = 1,2, L5. t b. To calculate the number of bonds (x) allocated to each group: x = Round( YGGN w ), = 1,2, L5, where Round () s the roundng of decmals. c. The bonds n each duraton group are ranked n descendng order by bd frequency n the past month, and the frst x bonds are ncluded n the composte ndex. The sum of ncluded bonds for the fve duraton groups approxmately equals YGGN, from secton 2 above. 4. Selecton Rules for Inter-bank Fxed-rate Fnancal Bonds Standard & Poor s: S&P/CITIC Chna Bond Indces 9

11 Durng the sem-annual revews at the end of each May and November, the number and proportons of nter-bank bonds wthn varous categores are adjusted as descrbed n secton 2, above. For the regular monthly revews, other than May and November, the number of bonds for each category wthn the nterbank bond sector remans unchanged. Now that the number of bonds has been determned, the nter-bank fxed-rate fnancal bonds are selected based on the followng rules: a. At the end of every month, S&P/CITIC calculates the average bd prce wthn the past month for each nter-bank fxed-rate fnancal bond. The theoretcal duraton (X) of each bond s derved based on the average bd prce. These bonds are classfed nto fve duraton groups: 0< X<=1, 1<X<=3, 3<X<=7, 7<X<=10, and X>10. The outstandng par value of every duraton group (t, = 1,2, 5) s summed, and the weght of each group s calculated as t w = t w, = 1,2, L5. b. To calculate the number of bonds (x) allocated to each group as x = Round( YGJN w ), = 1,2, L5, where Round () s the roundng of decmals. c. The bonds n each duraton group are ranked n descendng order by bd frequency n the past month, and the frst x bonds are ncluded n the composte ndex. The sum of all ncluded bonds for the fve duraton groups approxmately equals YGJN, from secton 2 above. 5. Selecton Rules for Inter-bank Floatng-rate Government Bonds Durng the sem-annual revews at the end of each May and November, the number of nter-bank floatng-rate government bonds (YFGN) s calculated as descrbed n secton 2, above. For the regular monthly revews, other than May and November, the number of bonds for each category wthn the nter-bank bond sector remans unchanged. Based on the number (YFGN) calculated, the nter-bank floatng-rate government bonds are ranked n descendng order by bd frequency n the past month, the frst YFGN bonds are ncluded n the composte ndex. 6. Selecton Rules for Inter-bank Floatng-rate Fnancal Bonds Durng the sem-annual revews at the end of each May and November, the number of nter-bank floatng-rate fnancal bonds (YFJN) s calculated as descrbed n secton 2, above. For the regular monthly revews, other than May and November, the number of bonds for each category wthn the nter-bank bond sector remans unchanged. Based on the number (YFJN) calculated, the nter-bank floatng-rate fnancal bonds are ranked n descendng order by bd frequency n the past month, and the frst YFJN bonds are ncluded n the composte ndex. Standard & Poor s: S&P/CITIC Chna Bond Indces 10

12 Index Calculaton Index Prces Indces only coverng exchange-lsted bonds, ncludng the S&P/CITIC Government Bond Index, the S&P/CITIC Corporate Bond Index, and the S&P/CITIC Convertble Bond Index, are calculated real-tme based on data from the exchanges. The openng and closng ndex values are calculated usng the openng and closng bond prces from the Shangha and Shenzhen Stock Exchanges. The values of the S&P/CITIC real-tme bond ndces are updated every 15 seconds. Indces coverng both exchange-lsted bonds and nter-bank bonds, ncludng the S&P/CITIC Inter-bank Bond Index and the S&P/CITIC Composte Bond Index, are calculated daly, after the markets close. The average quoted bd prce for each bond, wthn the day, s used for ndex calculaton. For bonds that do not have quotes durng the day, the last avalable average quoted bd prces are used. Drty prces are used for the S&P/CITIC bond ndex calculatons. If only a clean prce s avalable for a bond, t wll be converted nto a drty prce. The Drty prce s the sum of the clean prce and accrued nterest. Index Weghts The S&P/CITIC bond ndces are weghted by the outstandng par amounts of ndex consttuents. Changes to par amounts due to redemptons, buy backs or the converson of convertbles wll be deducted from the prevous outstandng par amounts. The revew of the converson of convertbles s currently done quarterly. Buy backs are usually followed by a delstng and, therefore, are treated promptly. Announcement of the changes wll be made at least two days n advance. The outstandng par amounts of convertble bonds are determned based on the publc release ssued by the bond ssuer. Calculaton Methodology The Latest Index Value (BI) s calculated as: BI = n = 1 P Q Base 1000 Where Base s the latest ndex dvsor. Standard & Poor s: S&P/CITIC Chna Bond Indces 11

13 The numerator n the equaton s the latest market captalzaton, the Outstandng Par Amount and P s the Drty Prce. n P =1 Q, where Q s The dvsor of the base perod s the Market Captalzaton of base perod: Dvsor Adjustment n Base = P Q, at the base perod date. =1 Adjustments for the dvsor are made whenever there are changes to the ndex, such as addtons and deletons of consttuents, or any actons other than tradng factors that cause a change of the ndex market captalzaton. The latest dvsor (Base*) s derved: Base Where Base s the prevous dvsor, adjustment, and n P =1 Q * = Base * n * P = 1 Q * n = 1 n * = 1 P * P Q Q * s the market captalzaton after s the market captalzaton before adjustment. The market captalzaton after the adjustment equals the market captalzaton before adjustment plus the change of market captalzaton caused by the corporate actons. Stuatons demandng a dvsor adjustment are as follows: 1. Consttuent addtons and deletons. 2. Outstandng par amount changes due to reasons such as the converson of convertbles. 3. When nterest s pad, such that: Latest Index Market Captalzaton = Prevous Market Captalzaton-Interest Payments. Recalculaton Polcy S&P/CITIC Index Servces Co., Ltd. attempts to avod ncorrect data affectng the ndces on a best-efforts bass. Incorrect par amounts outstandng and corporate actons are corrected mmedately. In crcumstances where ncorrect data was dssemnated by the exchanges or as a result of data transmsson falures, ndex adjustments may or may not be made subject to the data correcton polcy of the exchanges. Dssemnated ndex values that have been ssued wll not be recalculated or altered. Standard & Poor s: S&P/CITIC Chna Bond Indces 12

14 Index Mantenance Index Revews and Mantenance Indces coverng exchange-lsted bonds only, ncludng the S&P/CITIC Government Bond Index, the S&P/CITIC Corporate Bond Index, and the S&P/CITIC Convertble Bond Index, are not rebalanced on a regular schedule. When a new lstng s elgble for ndex ncluson, t wll be added to the ndex on the frst tradng day followng ts lstng day. A consttuent wll be removed from the ndex f t no longer meets the elgblty crtera. Indces coverng nter-bank bonds, ncludng the S&P/CITIC Inter-bank Bond Index and the S&P/CITIC Composte Bond Index undergo monthly rebalancngs at the end of each month followng ndex methodology rules. Any ndex consttuent changes wll be mplemented on the frst tradng day of the followng month and announced one-to-two days n advance Rebalancng The rebalancng of the S&P/CITIC Composte Bond Index conssts of both prompt rebalancngs and monthly rebalancngs. Prompt Rebalancng. Newly ssued exchange government bonds and corporate bonds are ncluded n the ndex on the frst tradng day followng the lstng day. For a bond lsted on both exchanges under dfferent tckers (more lkely for government bonds), only the tcker on the Shangha Stock Exchange s ncluded, and the prce from the Shangha Stock Exchange s used for ndex calculaton. Bond weghts n the ndex are determned by the total par amount ssued rather than the par amount under custodan at a certan exchange. Monthly rebalancng. A monthly rebalancng s conducted manly for nter-bank bonds, at the end of each month followng the selecton rules descrbed n pror sectons. For sem-annual revews at the end of each May and November, the number and proporton of nter-bank bonds wthn varous categores are calculated as descrbed n selecton rule (2), n the secton ttled Index Selecton Rules. For regular monthly revews other than May and November, the number of bonds for each category remans unchanged. Addtons, deletons and other changes made to the ndex at the monthly rebalancng are announced at the end of each month. Standard & Poor s: S&P/CITIC Chna Bond Indces 13

15 Base Date S&P/CITIC Government & Corporate Bond Indces: 12/30/1999, 1000 S&P/CITIC Inter-Bank Bond Index: 5/31/2002, 1000 S&P/CITIC Composte Bond Index: 11/29/2002, 1000 S&P/CITIC Convertble Bond Index: 4/1/2003, 1000 Standard & Poor s: S&P/CITIC Chna Bond Indces 14

16 Index Governance Index Commttee The S&P/CITIC Bond Indces are governed by the S&P/CITIC Index Commttee, comprsed of fve members representng both S&P/CITIC Index Informaton Servces and Standard & Poor's. It s the sole responsblty of the Commttee to decde on all matters relatng to methodology, mantenance, consttuent selectons and ndex procedures. The Commttee s chared by a representatve apponted by Standard & Poor's. Meetngs are held on a quarterly bass, as well as on an as-needed bass should unusual corporate events warrant. In constructng the ndces, the Commttee has the dscreton to ndependently add or delete ndex consttuents to the ndces. All Commttee dscussons are kept strctly confdental. The Commttee revews the ndex methodology from tme to tme. Standard & Poor s: S&P/CITIC Chna Bond Indces 15

17 Index Polcy Index Announcements Index announcements regardng changes to ndex consttuents wll generally be made one-to-two busness days n advance of mplementaton of the antcpated change, whenever practcal, bearng n mnd that the tmng of such events s occasonally uncertan. Announcements of changes to the numbers of dfferent types of bonds ncluded n the S&P/CITIC Composte Bond Index, from the monthly revews n May and November, wll generally be made 10 busness days ahead of the changes. Market senstve announcements, ncludng the addtons or deletons of bonds n the ndces, are normally made when the markets are closed. In general, announcements regardng the S&P/CITIC Bond Indces are made at 3:45pm (Bejng tme). The related news release are dspatched to all major meda n Chna, ssued to nternatonal news agences, and posted to Standard & Poor s Web ste, and the S&P/CITIC Index Servce Web ste, For further detals, please contact Standard & Poor's at , or the servce support hotlne of the S&P/CITIC Indces Holday Schedule The S&P/CITIC Bond Indces follow natonal holdays n Chna. The holday schedules are publshed on the Web ste of the Shangha Stock Exchange ( or Standard & Poor s: S&P/CITIC Chna Bond Indces 16

18 Index Dssemnaton Web ste Real-tme and end-of-day S&P/CITIC Bond Index values and rebalancng announcements are dssemnated va the S&P/CITIC Index Servce Web ste, Real-tme data for the S&P/CITIC Bond Indces, ncludng the S&P/CITIC Government Bond Index, the S&P/CITIC Corporate Bond Index, and the S&P/CITIC Convertble Bond Index, are dstrbuted va Tanhu Satellte System of Shangha Securtes Informaton Company and the S&P/CITIC Index Servce Web ste. End-of-day data for the S&P/CITIC Bond Indces, ncludng the S&P/CITIC Inter-bank Bond Index, and the S&P/CITIC Composte Bond Index, are dssemnated va CITIC Quanttatve Analytcal System, Wnd system, Juyuan system, Tanxang system, Northern Star, Bloomberg and the S&P/CITIC Index Servce Web ste. Standard & Poor s: S&P/CITIC Chna Bond Indces 17

19 S&P Contact Informaton Index Management Davd M. Bltzer, Ph.D. Managng Drector & Charman of the Index Commttee Andrew Webb Drector, Asa Pacfc Index Operatons Meda Relatons Angela Wang Communcatons Index Operatons & Busness Development North Amerca New York Maureen O Shea Wendy Chan Toronto Tony North Europe Pars Chrstopher O Bren London Susan Fagg Asa Tokyo Sechro Uch Bejng Andrew Webb Sydney Jason Hll Standard & Poor s: S&P/CITIC Chna Bond Indces 18

20 Dsclamer The report s publshed by Standard & Poor s, 55 Water Street, New York, NY Copyrght Standard & Poor s s a dvson of The McGraw-Hll Companes, Inc. All rghts reserved. Standard & Poor s does not undertake to advse you of changes n the nformaton contaned n ths report. These materals have been prepared solely for nformatonal purposes based upon nformaton generally avalable to the publc from sources beleved to be relable. Standard & Poor s makes no representaton wth respect to the accuracy or completeness of these materals, the content of whch may change wthout notce. The methodology nvolves rebalancngs and mantenance of the ndces that are made perodcally durng each year and may not, therefore, reflect real tme nformaton. Standard & Poor s dsclams any and all lablty relatng to these materals and makes no express or mpled representatons or warrantes concernng the accuracy or completeness of the report. No porton of ths publcaton may be reproduced n any format or by any means ncludng electroncally or mechancally, by photocopyng, recordng or by any nformaton storage or retreval system, or by any other form or manner whatsoever, wthout the pror wrtten consent of Standard & Poor s. Analytc servces and products provded by Standard & Poor s are the result of separate actvtes desgned to preserve the ndependence and objectvty of each analytc process. Standard & Poor s has establshed polces and procedures to mantan the confdentalty of non-publc nformaton receved durng each analytc process. Standard & Poor s: S&P/CITIC Chna Bond Indces 19