Global Index Mail: Global Markets Strategy

Research evidence excerpt

Global Index Mail: Global Markets Strategy

Pankaj Gupta, CFA AC Global Markets Strategy

(44-20) 7134-5483 21 July 2026 J P M O R G A N

pankaj.gupta2@jpmorgan.com

HOLDINGS as of close of July 21, 2026 (effective July 22, 2026).

-Indexer demand: 14.447 million shares of 2477 HK (2% of volume)

-Effective as close of Tuesday, July 21, 2026

• MSCI Korea Small Cap - HANWHA CORP PREF 3B has announced a spin-off and

intends to de-merge into two independently listed companies, HANWHA CORP, and

Hanwha Machinery Services. Under the terms of the event, for every 10 shares held,

HANWHA CORP PREF 3B shareholders intend to receive 12.182335 3rd Preferred

shares of Hanwha Machinery Services. Simultaneously every 10 shares of HANWHA

CORP PREF 3B intend to be consolidated into 7.563533 shares. HANWHA CORP PREF

3B intends to be suspended from July 30, 2026, to August 24, 2026 (inclusive) and both

HANWHA CORP PREF 3B and 3rd Preferred shares of Hanwha Machinery Services

intend to start trading on August 25, 2026. The transaction has been approved by

HANWHA CORP shareholders in the meeting held on July 15, 2026. Based on the

estimates, 3rd Preferred shares of Hanwha Machinery Services do not satisfy the size

criteria for addition to the MSCI Indexes. MSCI intends to apply a Price adjustment factor

(PAF) to the market price of HANWHA CORP PREF 3B to reflect the spin-off and the

consolidation on August 25, 2026. MSCI intends to maintain HANWHA CORP PREF

3B in the MSCI Global Small Cap Indexes with a decrease in the number of shares as of

the close of August 25, 2026 (effective August 26, 2026). MSCI does not intend to add

3rd Preferred shares of Hanwha Machinery Services to the MSCI Indexes. Additionally,

during the suspension period of HANWHA CORP PREF 3B, MSCI intends to carry