Huishang Bank : Announcements and Notices - Announcement on the Approval of the Establishment of Huishang Bank Wealth Management Corporation Limited

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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 and 4608 (Preference shares))

ANNOUNCEMENT ON THE APPROVAL OF THE ESTABLISHMENT OF HUISHANG BANK WEALTH MANAGEMENT CORPORATION LIMITED

References are made to the circular of the 2018 first extraordinary general meeting (the "EGM") dated October 12, 2018 and the announcement on the EGM poll results dated November 28, 2018 of Huishang Bank Corporation Limited (the "Bank") in relation to the resolution (the "Resolution") on the proposed establishment of the wholly-owned asset management subsidiary ("Huishang Bank Wealth Management"), which was approved at the EGM.

The Bank has recently received the Approval by China Banking and Insurance Regulatory Commission on the Establishment of Huishang Bank Wealth Management Corporation Limited (Yin Bao Jian Fu [2019] No. 784) and the Bank has been approved to establish Huishang Bank Wealth Management by the China Banking and Insurance Regulatory Commission (the "CBIRC").

According to its work plan, the Bank proposed to establish the wholly-owned Huishang Bank Wealth Management Corporation Limited (徽銀理財有限責任公司) with its own funds with a

registered capital of no more than RMB2 billion. The place of incorporation will be Hefei. Subject to the approval by the regulatory authorities, the business scope of the Company is proposed to be public offering of wealth management products to the general public and investment and management of properties entrusted by investors; private placement of wealth management products to eligible investors and investment and management of properties entrusted by investors; wealth management advisory and consulting services; and other businesses approved by the banking supervisory authorities of the State Council.

The establishment of Huishang Bank Wealth Management is a significant measure for the Bank to strictly implement regulatory requirements, facilitate a healthy development of the wealth management business and drive the return of the bank wealth management business to its original asset management business. Its establishment and operation will strengthen the synergy with the Bank in such aspects as construction of customer base, business development and group management, give full play to the strategic supporting role of asset management business in the Bank's business development and transformation and deepen inclusive financial services, increase the supply of financial products, promote supply-side structural reform, and constantly enhance the Bank's ability to serve the real economy.

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Upon completion of the preparatory work and establishment, the Bank will apply to CBIRC Anhui Office for commencement of operation in accordance with relevant regulations and procedures.

By order of the Board

Huishang Bank Corporation Limited*

Wu Xuemin

Chairman

Hefei, Anhui Province, China

August 23, 2019

As at the date of this announcement, the Board of the Bank comprises Wu Xuemin, Zhang Renfu and He Jiehua as executive directors; Zhu Yicun, Wu Tian, Qian Dongsheng, Gao Yang, Wang Wenjin and Zhao Zongren as non-executive directors; Dai Peikun, Zhou Yana, Liu Zhiqiang, Yin Jianfeng, Huang Aiming and Hu Jun 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.

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