The index methodology for the Dow Jones China Offshore 50 Index is consistent with that of the Dow Jones EURO STOXX 50 Index. Stocks are selected to achieve representation of the 18 Super-sectors defined by the Industry Classification Benchmark (ICB).

Index Universe
The index selection universe for the Dow Jones China Offshore 50 Index comprises all H shares, Red Chip shares, U.S.-listed shares and ADRs in the Dow Jones China Index. The following rules determine a stock's inclusion in the Dow Jones China Index:

The Dow Jones China Index covers the China offshore market and the Hong Kong market. Eligible shares in the China offshore market include B shares that trade in Shanghai or Shenzhen, Chinese companies listed only on U.S. exchanges, ADRs of Chinese companies and H shares. Eligible shares in the Hong Kong market include Hong Kong-listed issues and Red Chip companies.

In both the China Offshore market and Hong Kong market, eligible securities are screened for liquidity. Any security that had more than 10 non-trading days over the past quarter is excluded, unless the lack of trading is due to a situation that is determined to be temporary. The remaining companies have their shares outstanding adjusted for float to represent more accurately the investable size of the security. Stocks in the top 95% of the underlying float-adjusted market capitalization are then selected as components of the index, excluding stocks that fall in the bottom 1% of the universe by float-adjusted market capitalization and in the bottom 0.01% of the universe by turnover.

Initial Component Selection
The selection of the initial index components includes the following steps:

1. Within each of the 18 ICB Super-sectors, stocks in the index universe are ranked by float-adjusted market capitalization in descending order. If a company has more than one share class in the universe, the one with the largest market capitalization is selected for the index. No company may have more than one class of stock in the index.
2. The largest stocks are added to a selection list until the market-capitalization coverage of each Super-sector is as close to 60% as possible.
3. The selected stocks are then ranked by float-adjusted market capitalization in descending order.
4. The largest 50 stocks on the selection list are included in the index.