Huarong Investment Stock : UPDATE ON DISCLOSEABLE TRANSACTION - THE ACQUISITION OF BONDS

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2277)

UPDATE ON DISCLOSEABLE TRANSACTION

THE ACQUISITION OF BONDS

Reference is made to the announcements of Huarong Investment Stock Corporation Limited (the "Company") dated 13 September 2016 and 16 July 2018 (the "Announcements") in relation to the acquisition of convertible bonds in the principal amount of US$15 million issued by the Issuer on 15 August 2016 (the "Bonds"). Terms used in this announcement shall have the same meanings as defined in the Announcements unless the context requires otherwise.

On 16 January 2019, the Company was informed by the Issuer that the terms and conditions of the Bonds have been amended with effect from the same date as follows:

• 1. the maturity date of the Bonds was extended from 16 January 2019 to 16 January 2021, or if such date is not a Business Day, the Business Day immediately following such date.

• 2. upon redemption of the Bonds, the relevant redemption amount of the Bonds shall make up an internal rate of return of 12% on the aggregate principal amount of such outstanding Bonds calculated from 17 January 2019 until the redemption date, in addition to the amount making up an internal rate of return of 11% on the aggregate principal amount of the outstanding Bonds calculated from the issue date to 16 January 2019.

Saved as disclosed above, all the principal terms and conditions of the Bonds remain unchanged and continue to be in full force and effect.

The Company was only interested in a principal amount of US$15 million out of the aggregate bonds issued by the Issuer of US$285 million. The Issuer has sought and obtained the approval of the requisite number of holders of the Bonds by way of extraordinary resolutions in writing in accordance with the trust deed dated 16 July 2015 (as amended from time to time) constituting the Bonds to effect the above amendments.

The Board considers that the above amendments will not have any material adverse impact on the Group's financial position.

By order of the Board

Huarong Investment Stock Corporation Limited

Yu Meng

Chairman

Hong Kong, 16 January 2019

As at the date of this announcement, the executive Directors are Mr. Yu Meng, Mr. Zhang Fan, Mr. Liu Xiguang and Mr. Kwan Wai Ming; the non-executive Director is Ms. Lin Xueqin; and the independent non-executive Directors are Mr. Chan Kee Huen Michael, Mr. Tse Chi Wai, Dr. Lam Lee G. and Dr. Fang Fuqian.