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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 Hong Kong with limited liability)

(Stock Code: 604) ANNOUNCEMENT OF LEGAL PROCEEDINGS INVOLVING TWO SUBSIDIARIES

This announcement is made by Shenzhen Investment Limited (the "Company", and together with its subsidiaries, the "Group") pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
On 12 September 2014, Shum Yip Terra (Holdings) Company Limited ("Terra Company"), a 75.05%-owned subsidiary of the Company, and its wholly-owned subsidiary, Wuhan Shum Yip Terra Property Development Company Limited ("Wuhan Terra Company"), received a notification for the appointment of defender / application for legal aid during the prosecution
review phase ( 審 查 起 訴 階 段 委 托 辯 護 人 / 申 請 法 律 援 助 告 知 書 ) from The People's
Procuratorate of Jianli County of Hubei Province, informing Terra Company and Wuhan Terra Company that the materials in respect of the suspected corporate offence of bribery on both of them have been transferred from the Anti-malfeasance Bureau of the Procuratorate to the Public Prosecution Bureau of the Procuratorate for prosecution review (the "Matter").
Terra Company is a 75.05%-owned subsidiary of the Company, and the remaining 24.95% of it is held by a third party independent of the Company and its connected persons (as defined under the Listing Rules). Wuhan Nanhu Rose Bay Project (the "Project") is a property development project obtained by Terra Company through a public bidding process in July
2005. Phase I of the Project was launched in late 2007. Most of the developed properties had been sold in the market and Phase IV of the Project is in the process of construction reporting. Wuhan Terra Company is a wholly-owned subsidiary of Terra Company specifically set up
for the Project.

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The Project is implicated in the corruption case(s) involving the local government officials and thus it is being involved in criminal investigation. The People's Procuratorate of Hubei Province considers that there were violations of the relevant regulations in the procedures in respect of the land transactions of the Project which has caused a loss of land income of the State, and the loss in the amount of approximately RMB316 million should be recovered from Terra Company. The People's Procuratorate of Jianli County of Hubei Province has seized certain bank accounts of Wuhan Terra Company involving an amount of approximately RMB126 million, and certain bank accounts of Terra Company involving an amount of approximately RMB23 million.
Terra Company has appointed a legal counsel in China to follow up the Matter. The Group always attaches great importance to compliance and reputation and as far as known to the Group, no corporate act of bribery in connection with the Project has been found. The Group will make every effort to safeguard the legitimate rights and interests of the Group. The Company believes that the Matter is an individual incident and will not have material effect on the assets, financials and operations of the Group as a whole.
The Company is actively following up the Matter and will make further announcement(s) to keep its shareholders and potential investors informed of the further development of the Matter in due course.
By Order of the Board SHENZHEN INVESTMENT LIMITED LU Hua

Chairman

Hong Kong, 18 September 2014

As at the date of this announcement, the Board comprises 9 directors, of which Mr. LU Hua, Mr. GAO Shengyuan, Mr. MOU Yong and Mr. LIU Chong are the executive directors of the Company, Dr. WU Jiesi and Mr. HUANG Yige are the non-executive directors of the Company and Mr. LI Wai Keung, Mr. WU Wai Chung, Michael and Dr. WONG Yau Kar David are the independent non-executive directors of the Company.

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