Huishang Bank : Announcements and Notices - Announcement on Update of the Status of the 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 ON UPDATE OF THE STATUS OF THE PUBLIC FLOAT

Reference is made to the announcements (the "Announcements") of Huishang Bank Corporation Limited (the "Bank") dated May 11, 2016, May 19, 2016 and June 21, 2016. Unless otherwise defined herein, capitalized terms used in this announcement shall have the same meanings as those defined in the Announcements.

The Bank wishes to update its shareholders and potential investors about the status of the public float of the Bank's H shares.

UPDATE OF THE STATUS OF THE PUBLIC FLOAT OF THE BANK

The current public float of the Bank's H shares is approximately 24.12%, which remains 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").

As stated in the announcement of the Bank dated May 19, 2016, according to the disclosure of interests forms submitted to The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") by Shanghai Soong Ching Ling Foundation and Wealth Honest Limited ("Wealth Honest") on May 16, 2016, the Bank became aware that Wealth Honest purchased 400,000,000 H shares of the Bank by way of off-exchange acquisition on May 12, 2016. As the said disclosure of interests forms have only been submitted to the Hong Kong Stock Exchange by Shanghai Soong Ching Ling Foundation and Wealth Honest without informing the Bank, based on the information then available to the Bank and the disclosure of interests forms submitted to the Hong Kong Stock Exchange, these 400,000,000 H shares of the Bank so acquired by Wealth Honest were accounted for as shares not held by the public. Accordingly, the public float of the Bank's H shares as disclosed in such announcement further decreased to 20.5%.

The Bank was subsequently formally informed on July 8, 2016 that the proposed acquisition of these 400,000,000 H shares of the Bank by Wealth Honest has not yet been completed. In addition, according to the latest information received by the Bank and based on the Bank's enquiry on the disclosure of interests forms related to the Bank's H shares as submitted to the Hong Kong Stock Exchange as at the date of this announcement, no updates are noted, and acquisition of such shares has not yet been completed to date. Accordingly, the current public float of the Bank's H shares should be adjusted to approximately 24.12%.

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

Shareholder Number of shares of the Bank held 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(Note 2) 7,238,276,553 91.77% 65.51%

Other public holders of H shares 2,665,086,000 84.27% 24.12%

Sub-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 and Zhongjing Xinhua Property Management (Hong Kong) Co., Limited, 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.

   In addition, as stated above, according to the latest information received by the Bank and based on the Bank's enquiry on the disclosure of interests forms related to the Bank's H shares as submitted to the Hong Kong Stock Exchange as at the date of this announcement, no updates are noted, and the aforementioned proposed acquisition of 400,000,000 H shares by Wealth Honest has not yet been completed to date. Accordingly, Shanghai Soong Ching Ling Foundation is not deemed to have an interest in these 400,000,000 H shares of the Bank. Assuming there is no other reason which would lead to a change in the public float of the Bank's H shares before the completion of the acquisition of these shares, the public float of the Bank's H shares will further decrease from approximately 24.12% to approximately 20.5% upon the completion of such acquisition. The Bank will closely monitor the progress of such transaction and publish announcement(s) as and when appropriate.

2. To the best of the Board's knowledge and according to the latest information received by the Bank, the Bank has more than 16,300 holders of domestic shares, and no single holder of domestic shares holds 10% or more of the total issued share capital of the Bank.

PROPOSAL TO RESTORE PUBLIC FLOAT

The Bank is currently considering various options so as to restore its public float of H shares as soon as practicable, including (i) continuing to promote the initial public offering and the listing of A shares; (ii) contacting the substantial shareholders of the Bank and suggesting them to place down their shares in the Bank as soon as practicable; and (iii) seeking opportunities to conduct placing of H shares after considering the market conditions in full and with detailed planning. The Bank will also publish announcements on a monthly basis to update its shareholders and potential investors on the status of the public float of the Bank's H shares 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 Province, China August 1, 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; 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 the 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.