Huishang Bank : Announcements and Notices - Announcement in Relation to Public Float

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Huishang Bank Corporation Limited*

徽 商 銀 行 股 份 有 限 公 司 *

(A joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 3698) ANNOUNCEMENT IN RELATION TO PUBLIC FLOAT

The Board hereby announces that, as at the date of this announcement, the public float of the Bank is approximately 24.12%, which is below the minimum of 25% as required under Rule 8.08(1)(a) of the Listing Rules.

Shareholders and potential investors of the Bank are advised to exercise caution when dealing in the shares of the Bank. PUBLIC FLOAT OF THE BANK

The board of directors (the "Board") of Huishang Bank Corporation Limited (the "Bank") hereby announces that, as at the date of this announcement, the public float of the Bank is approximately 24.12%, which is below the minimum of 25% as required under Rule 8.08(1)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

To the best of the Board's knowledge and according to the latest information received by the Bank, as of the date of this announcement, the Bank's shareholding structure is as follows:

Shareholder Number of shares of the Bank held by the shareholder Percentage of the issued share of the Bank in each class of shares Percentage of the total issued shares of the Bank

Shanghai Soong Ching Ling Foundation (Note1)

Domestic share 649,042,730 8.23% 5.87%

H share 497,414,000 15.73% 4.50%

Sub-total 1,146,456,730 - 10.37%

Other holders of

domestic shares (Note2)	7,238,276,553	91.77%	65.51%
Other public holders of H shares	2,665,086,000	84.27%	24.12%
Total	11,049,819,283	-	100%

Notes:

1. To the best of the Board's knowledge and according to the latest information received by the Bank, as at the date of this announcement, Shanghai Soong Ching Ling Foundation indirectly controls Zhongjing Xinhua Asset Investment Management Co., Ltd., Zhongjing Sihai Company Ltd., Wealth Honest Limited and Zhongjing Xinhua Property Management (Hong Kong) Co., Limited ("Zhongjing Xinhua Hong Kong"), which in turn directly holds 204,346,570 domestic shares, 444,696,160 domestic shares, 469,230,000 H shares and 28,184,000 H shares of the Bank, respectively. Accordingly, Shanghai Soong Ching Ling Foundation is deemed to be interested in the shares of the Bank held by the above-mentioned companies.

2. To the best of the Board's knowledge and according to the latest information received by the Bank, as at the date of this announcement, the Bank has 16,323 holders of domestic shares, and no single holder of domestic shares holds 10% or more of the total issued share capital of the Bank.

REASON FOR THE SHORTFALL IN THE PUBLIC FLOAT

The shortfall in the public float of the Bank's H shares is a result of the acquisition of H shares of the Bank in the secondary market conducted by one of the Bank's shareholders, Shanghai Soong Ching Ling Foundation, through its controlled corporation from 1 January 2016 to 29 April 2016. According to the forms of disclosure of interests submitted to The Stock Exchange of Hong Kong Limited (the "Stock Exchange") by Shanghai Soong Ching Ling Foundation and its controlled corporation, Zhongjing Xinhua Hong Kong, and the information received by the Bank, as at 31 December 2015, Shanghai Soong Ching Ling Foundation indirectly held 9.89% of the total issued share capital of the Bank.

The Bank first became aware of the shortfall in its public float on 10 May 2016. According to the forms of disclosure of interests submitted to the Stock Exchange by Shanghai Soong Ching Ling Foundation and its controlled corporation, Zhongjing Xinhua Hong Kong on 5 May 2016, Zhongjing Xinhua Hong Kong acquired 28,184,000 H shares of the Bank on 29 April 2016. Accordingly, the number of H shares of the Bank indirectly held by Shanghai Soong Ching Ling Foundation increased to 497,414,000. Together with its indirect holding of 649,042,730 domestic shares of the Bank, Shanghai Soong Ching Ling Foundation indirectly holds 10.37% of total issued share capital of the Bank. As Shanghai Soong Ching Ling Foundation has become a core connected person of the Bank, its holding of the H shares of the Bank is not regarded as held by the public. As a result, the public float of the bank decreased to 24.12% approximately.

PROPOSAL TO RESTORE PUBLIC FLOAT

The Bank is currently considering taking actions in due course so as to restore the public float as soon as practicable by placing new shares and/or suggesting the substantial shareholder of the Bank to place down its shares in the Bank. As at the date of this announcement, management of the Bank is still in the process of working out with relevant parties to identify the most feasible and practicable measures for the restoration of the public float within a reasonable time frame. The Bank will publish announcements on a monthly basis to update its shareholders and potential investors on the status of the public float of the Bank and measures that may be introduced by the Bank to restore its public float.

Shareholders and potential investors of the Bank are advised to exercise caution when dealing in the shares of the Bank.

By order of the Board

Huishang Bank Corporation Limited* Li Hongming

Chairman

Hefei, Anhui, China 11 May 2016

As at the date of this announcement, the board of directors of the Bank comprises Li Hongming, Xu Demei, Wu Xuemin and Ci Yaping as executive directors; Zhang Feifei, Zhu Jiusheng, Qian Li, Lu Hui, Zhao Zongren, Qiao Chuanfu and Gao Yang as non-executive directors; and Au Ngai Daniel, Dai Genyou, Wang Shihao, Zhang Shenghuai, Fung Weichang and Zhu Hongjun as independent non-executive directors.

* Huishang Bank Corporation Limited is not an authorized institution within the meaning of the Banking Ordinance (Chapter 155 of Laws of Hong Kong), not subject to the supervision of the Hong Kong Monetary Authority, and not authorized to carry on banking/deposit-taking business in Hong Kong.