Huishang Bank : Announcements and Notices - Announcement on Update of the Status of the Public Float

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Huishang Bank Corporation Limited* Ꮟ ਠ ვ Б ٰ ΅ Ϟ ࠢ ʮ ̡*

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

(Stock Code: 3698 and 4608 (Preference Shares))

ANNOUNCEMENT ON UPDATE OF THE STATUS OF THE PUBLIC FLOAT

Reference is made to the various announcements in relation to the status of the public float of the H shares of Huishang Bank Corporation Limited (the "Bank") since May 11, 2016. The Bank wishes to update its shareholders and potential investors on the status of the public float of the Bank's H shares.

UPDATE OF THE STATUS OF THE PUBLIC FLOAT OF THE BANK

Following the announcement of the Bank dated December 1, 2017, currently the public float of the Bank's H shares is approximately 16.92%, 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 at the date of this announcement, according to the disclosure of interests forms submitted to The Stock Exchange of Hong Kong Limited (the "Stock Exchange") by Shanghai Soong Ching Ling Foundation (ɪऎ҂ᅅᙧਿږึ) (the "SCL Foundation") and Anhui Province Energy Group Company Limited (τᏏ޲ঐ๕ණྠϞࠢʮ̡) ("Anhui Energy Group") and their respective affiliates, other public information and relevant information available, the shareholding structure of ordinary shares of the Bank is as follows:

Percentage of
the issued share	Percentage of
Number of	of the Bank in	the total issued
ordinary shares	each class of	ordinary shares
Shareholder	of the Bank held	shares (Note 4)	of the Bank (Note 4)
The SCL Foundation (Note 1)
Domestic shares	649,042,730	8.23%	5.87%
H shares	993,262,000	31.41%	8.99%
Anhui Energy Group (Note 2)
Domestic shares	876,694,381	11.12%	7.93%
H shares	300,145,000	9.49%	2.72%
Sub-total	2,819,144,111	-	25.51%
Other holders of domestic shares (Note 3)	6,361,582,172	80.66%	57.57%
Other public holders of H shares	1,869,093,000	59.10%	16.92%
Total	11,049,819,283	-	100.00%
Notes:

• 1. According to the disclosure of interests forms submitted to the Stock Exchange by the SCL Foundation and its affiliates, other public information and relevant information available, as at the date of this announcement, Zhongjing Xinhua Asset Investment Management Co., Ltd. ( ʕ᎑อശ༟ପ၍ଣϞࠢʮ̡ ) ("Zhongjing Xinhua"), Zhongjing Sihai Company Ltd. (ʕ᎑̬ऎྼุϞࠢʮ̡) ("Zhongjing Sihai"), Zhongjing Xinhua Property Management (Hong Kong) Co., Limited ("Zhongjing Xinhua HK"), Wealth Honest ("Wealth Honest") and Golden Harbour Investments Management Limited ("Golden Harbour") currently directly holds 204,346,570 domestic shares, 444,696,160 domestic shares, 118,590,000 H shares, 474,672,000 H shares and 400,000,000 H shares of the Bank, respectively; Zhongjing Sihai, Zhongjing Xinhua HK, Wealth Honest and Golden Harbour are subsidiaries of Zhongjing Xinhua; Zhongjing Xinhua, Zhongjing Sihai, Zhongjing Xinhua HK, Wealth Honest and Golden Harbour are controlled corporations of the SCL Foundation, therefore the SCL Foundation is deemed to be interested in the shares of the Bank held by the aforementioned companies. The SCL Foundation and the aforementioned companies are core connected persons of the Bank, and their holdings of the Bank's H shares are not regarded as being held by the public.

  The Bank hereby reminds investors that, in recent information disclosures conducted by the Bank in accordance with the regulatory requirements, the Bank noticed that it was disclosed in the 2014, 2015 and 2016 annual audit reports of the SCL Foundation that it does not participate in the management of Zhongjing Industry (Group) Limited (ʕ᎑ྼุ€ණྠϞࠢʮ̡) ("Zhongjing Industry"), nor does it have significant influence or control over the company; at the same time, according to the disclosures made by Zhongjing Xinhua (a subsidiary of Zhongjing Industry) in its Prospectus of Public Issuance of 2016 Corporate Bonds (First Tranche), in its Prospectus of Public Issuance of 2016 Corporate Bonds (Second Tranche), and in its 2015 and 2016 corporate bonds annual reports as well as its clarification announcement dated August 14, 2017 on the Shanghai Stock Exchange on market rumours in relation to the de facto controller of Zhongjing Xinhua, the SCL Foundation currently holds 97.5% equity interests in Zhongjing Industry and is the de facto controller of Zhongjing Xinhua.

• 2. As at the date of this announcement, Anhui Energy Group, Anhui Province Wenergy Company Limited (τᏏ ޲೰ঐٰ΅Ϟࠢʮ̡) ("Anhui Wenergy") and Xing An Holdings Limited held 766,694,381 domestic shares, 110,000,000 domestic shares and 300,145,000 H shares of the Bank, respectively; Anhui Wenergy and Xing An Holdings Limited are the controlled corporations of Anhui Energy Group. Accordingly, Anhui Energy Group is deemed to have interest in the shares of the Bank held by the abovementioned companies. Anhui Energy Group and the abovementioned companies are core connected person of the Bank, and their shareholdings of the Bank's H share are not regarded as being held by the public.

• 3. To the best of the knowledge of the board of directors (the "Board") of the Bank 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 ordinary share capital of the Bank.

• 4. Any discrepancies between the percentage of total and sum of items shown in the table are due to rounding.

• 5. As at the date of this announcement, the Bank has issued 44,400,000 offshore preference shares with a par value of RMB100 each. Pursuant to the articles of association of the Bank, the holders of offshore preference shares of the Bank are not entitled to convene and attend any general meeting of the Bank or vote at any general meeting of the Bank, except as stated in the terms and conditions of the offshore preference shares. If any trigger event occurs, the offshore preference shares may be converted into H shares in accordance with the conversion terms. For further details, please refer to the announcements of the Bank dated November 3, 2016 and November 10, 2016.

PROPOSAL TO RESTORE PUBLIC FLOAT

According the resolution of the Board of the Bank, the Bank is considering various options so as to restore its public float as soon as practicable, including (i) suggesting the substantial shareholders of the Bank to place down their shares in the Bank; (ii) continuing to promote the initial public offering and the listing of A shares; and (iii) seeking opportunities to conduct placing of H shares after considering the market conditions in full and with detailed planning.

The Bank will publish announcement(s) on a monthly basis to update its shareholders and potential investors on the status of the public float of the Bank and the 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*

Yi Feng

Secretary to the board of directors

Hefei, Anhui Province, PRC

December 29, 2017

As at the date of this announcement, the Board of the Bank comprises 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 and Zhu Hongjun as independent non-executive directors.

*Huishang Bank Corporation Limited is not an authorized institution within the meaning of the Hong Kong 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.