Agricultural Bank of China : Announcement on External Investment 2018-07-26

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AGRICULTURAL BANK OF CHINA LIMITED ʕ਷ุ༵ვБٰ΅Ϟࠢʮ̡

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

(Stock Code: 1288)

ANNOUNCEMENT ON EXTERNAL INVESTMENT

The board of directors (the "Board") of Agricultural Bank of China Limited (the "Bank") hereby announces that, as considered and approved at the ninth meeting of the Board of 2018 held on 11 May 2018, the Bank proposes to invest RMB3 billion into the National Financing Guarantee Fund Ltd. (the "Fund") for 4.5386% of its registered capital, which will be paid up in four years since 2018 (the "Investment"). The Investment is neither a related party transaction nor a material assets reorganization of the Bank, and it does not need to be submitted to the shareholders' general meeting for approval. The Investment also does not constitute a discloseable transaction under Chapter 14 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

Given that there still existed uncertainty with regard to the information to be disclosed related to the Investment when it was considered and approved at the meeting of the Board on 11 May 2018, pursuant to the relevant provisions of the Guidelines for Listed Companies' Suspension of and Exemption from Information Disclosure on the Shanghai Stock Exchange and the Administrative Measures for the Suspension and Exemption of Information Disclosure of Agricultural Bank of China Limited, the Bank decided to suspend the disclosure of the Investment and conducted internal registration and approval procedures in relation to the suspension of the disclosure in accordance with relevant requirements. Recently, the Bank signed the Promoters' Agreement on the National Financing Guarantee Fund Limited Liability Company, and therefore eliminated the cause for the previous suspension of the disclosure.

Basic Information of the Target of the Investment

The Fund was jointly initiated by the Ministry of Finance of the People's Republic of China and twenty institutions. The first tranche of registered capital amounts to RMB66.1 billion. The Fund, positioning as a quasi-public financial institution, aims at alleviating the difficulties and high cost of financing small and micro enterprises, "Sannong" enterprises, start-ups and innovative enterprises, establishes a sound corporate governance structure, follows the operating principles of government support, market-oriented operation, guaranteed principal and meager profit as well as risk management and control, and achieves sustainable development through market-oriented operation and professional management.

Impacts of the Investment on the Bank

The Investment will be funded by the Bank's own capital.

The Investment is an important layout made by the Bank in conjunction with the nation's major decision and regulatory policies to promote the development of inclusive finance, as well as the development strategies and business resources of the Bank. The Investment is also a strategic choice of the Bank in the new era to serve the real economy and enhance the inclusive financial services capabilities. It will provide an important guarantee for the Bank to develop its inclusive finance business and to strengthen its differentiated competitive advantages, and is of great significance to further improve the coverage of the inclusive finance services, reduce the financing cost of customers and promote the positive development of the Bank's business.

Risk Analysis of the Investment

The Investment is subject to the fulfillment of relevant procedures of regulatory authorities.

By Order of the Board Agricultural Bank of China Limited

ZHOU Wanfu

Company Secretary

Beijing, PRC

25 July 2018

As at the date of this announcement, our executive directors are Mr. ZHOU Mubing, Mr. ZHAO Huan, Mr. WANG Wei and Ms. GUO Ningning; our non-executive directors are Mr. XU Jiandong, Mr. CHEN Jianbo, Mr. HU Xiaohui, Mr. LIAO Luming and Mr. LI Qiyun; and our independent nonexecutive directors are Mr. WEN Tiejun, Mr. Francis YUEN Tin-fan, Ms. XIAO Xing, Mr. WANG Xinxin and Mr. HUANG Zhenzhong.