The Index

The ChinaOpportunity™ Euro Price Return Index is a proprietary index created by Deutsche Bank, reflecting the price return performance of thirty stocks selected and rebalanced quarterly from a broad tradable Chinese stock universe.

How Are The Stocks Within The ChinaOpportunity™ Euro Price Return Index Selected?

At the end of each quarter, the ChinaOpportunity™ Euro Price Return Index selects 30 stocks from the following five Selection Pool Indices:

• Hang Seng China Enterprise Index (H shares Index)
• Hang Seng China-Affiliated Corporations Index (Red Chips Index)
• Shanghai B-Share Stock Price Index (Shanghai B Index)
• Shenzhen B-Share Stock Price Index (Shenzhen B Index)
• SCI China Index

In the first screening phase, the market capitalisation and the average daily market turnover (over the previous four weeks) of the shares in the Selection Pool Indices are evaluated and approximately half of the shares from the Selection Pool Indices are selected.

In the second screening phase, the shares selected pursuant to the first screening phase are then ranked separately based on low price to book ratio, low price to earnings ratio and high dividend yield. The thirty shares with the best combined ranking are selected to constitute the ChinaOpportunity™ Euro Price Return Index until the next Index rebalancing.

The selection criteria are determined based on extensive research and analysis. For a complete explanation of the Index selection procedure, please refer to the information relating to the ChinaOpportunity™ Euro Price Return Index set out in the Preliminary Pricing Supplement dated 15 March 2004.