Huarong Investment Stock : VOLUNTARY ANNOUNCEMENT - FACILITY FROM RIGHT SELECT INTERNATIONAL LIMITED

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(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2277) VOLUNTARY ANNOUNCEMENT FACILITY FROM RIGHT SELECT INTERNATIONAL LIMITED

This announcement is made by Huarong Investment Stock Corporation Limited (the "Company" together with its subsidiaries, the "Group") on a voluntary basis.

The Board (the "Board") of directors (the "Director") of the Company would like to announce that on 7 September 2017, Right Select International Limited ("Right Select") and the Company entered into a revolving facility agreement (the "Facility Agreement"), pursuant to which Right Select and its subsidiaries (excluding the Group) (the "Lender") agreed to grant the Company and its subsidiaries (the "Borrower") a revolving facility in an aggregate principal amount up to USD1,000,000,000 (or its equivalent amounts in HKD or RMB) (the "Facility"). Pursuant to the Facility Agreement, the Company or any of its subsidiaries may, at its own time and discretion, utilize the Facility by serving a prior written notice to the Lender with a specified loan amount to be utilized. The parties may agree on prepayment and any amount prepaid by the Borrower would be available for further utilization as long as the total outstanding amount of all loans shall not at any time exceed the Facility. The Lender and the Borrower would agree upon an interest rate for each loan, depending on the currency and tenure of each loan. Each loan is expected to have a tenure in a range of one to five years. Any interest will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 360 days.

The Board is of the opinion that the terms of the Facility Agreement (including the interest rates) are arrived at after arm's length negotiations between the Company and Right Select and are on normal commercial terms or better.

The provision of the Facility demonstrates a firm and strong support to the Group by its substantial shareholder. The Group strives to further develop and expand its business in direct investments and financial services and others so is in need of all sort of financial resources. While the Group is at the same time actively seeking financing alternatives (including bank borrowings), the Board believes the Facility can provide a commited financial back-up to the Group as and when required.

Right Select holds approximately 50.99% issued share capital of the Company as at the date of this announcement. As Right Select is a connected person of the Company (as defined under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules")), the provision of the Facility by Right Select to the Company constitutes a financial assistance for the Company under Chapter 14A of the Listing Rules. However given that terms of the Facility Agreement are on normal commercial terms or better and the Facility is not secured by any assets of the Group, the entering into of the Facility Agreement and the transactions contemplating thereunder are fully exempt from the reporting, announcement, circular, independent financial advice and shareholders' approval requirements pursuant to Rule 14A.90 of the Listing Rules.

Hong Kong, 7 September 2017

By order of the Board

Huarong Investment Stock Corporation Limited Qin Ling

Chairman

As at the date of this announcement, the executive Directors are Mr. Qin Ling, Mr. Yeung Chun Wai Anthony, Mr. Xu Xiaowu, Mr. Liu Xiguang, Mr. Kwan Wai Ming and Mr. Lin Changhua; the non-executive Director is Mr. Wu Qinghua; and the independent non-executive Directors are Mr. Chan Kee Huen Michael, Mr. Zhang Xiaoman, Mr. Tse Chi Wai and Mr. Wu Tak Lung.