Postal Savings Bank of China : ANNOUNCEMENT REGARDING THE PLAN ON SHAREHOLDING INCREASE BY THE CONTROLLING SHAREHOLDER

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POSTAL SAVINGS BANK OF CHINA CO., LTD.

中 國 郵 政 儲 蓄 銀 行 股 份 有 限 公 司

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

(Stock Code: 1658)

(Stock Code of Preference Shares: 4612)

ANNOUNCEMENT REGARDING THE PLAN ON

SHAREHOLDING INCREASE BY THE CONTROLLING

SHAREHOLDER

This announcement is made by Postal Savings Bank of China Co., Ltd. (the "Bank") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

China Post Group Corporation ("China Post Group"), the controlling shareholder of the Bank, proposed to increase its shareholding of the Bank by an amount of not less than RMB2.5 billion, as and when appropriate, during the 12-month period from 10 December 2019 (the "Proposed Shareholding Increase" or the "Shareholding Increase"). There is no price range for the Shareholding Increase. China Post Group will gradually implement the plan on Shareholding Increase based on the fluctuations in the Bank's stock prices. Details are set out as follows:

1. The Basic Information of the Entity to Increase Shareholding
2. 1. Name of the entity to increase shareholding: China Post Group Corporation
   2. Number of shares held by the entity to increase shareholding and the percentage of shareholding: As of 9 December 2019, China Post Group held 55,847,933,782 A shares of the Bank, representing 64.79% of the total issued ordinary shares of the Bank (before the exercise of over-allotment options in relation to the A share offering of the Bank. Please refer to the announcement titled "Completion of the A Share Offering" dated 8 December 2019 of the Bank for details.).

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1. Main Contents of the Plan on Shareholding Increase
2. 1. Purpose of the Proposed Shareholding Increase: The Shareholding Increase conducted by China Post Group is based on its steadfast confidence on the future development prospect of the Bank, its high-level recognition of the investment value of the Bank, and its continuous positive view on the domestic capital market, with an aim to protect the interest of medium and small investors.
   2. Types of shares to be acquired in the Proposed Shareholding Increase: A shares of the Bank.
   3. Amount to be acquired in the Proposed Shareholding Increase: The amount for the Proposed Shareholding Increase shall be not less than RMB2.5 billion. There is no price range for the Shareholding Increase. China Post Group will gradually implement the plan on the Shareholding Increase based on the fluctuations in the Bank's stock prices.
   4. Implementation period of the plan on Shareholding Increase: Taking into account the large scale of the increase in the amount of the Shareholding Increase and changes in the securities market, China Post Group plans to implement the Shareholding Increase within 12 months from 10 December 2019.
   5. Funding arrangement of the Proposed Shareholding Increase: It shall be funded by self- owned fund.

1. Uncertainty Risk In The Implementation Of The Shareholding Increase Plan

There may be a risk that the implementation of the Shareholding Increase plan may not be completed due to changes in the securities market and other factors.

IV. Other Relevant Information

1. This Shareholding Increase plan complies with the provisions of the Securities Law of the People's Republic of China 《( 中華人民共和國證券法》), Company Law of the People's Republic of China 《( 中華人民共和國公司法》) and other applicable laws and regulations, departmental regulations and the relevant rules of the Shanghai Stock Exchange.
2. China Post Group promises that it will not reduce its shareholding in the Bank during the implementation of the Shareholding Increase or within the statutory restricted period.

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3. The Bank will pay continuous attention to the controlling shareholder's increase in shareholding of the Bank and discharge the obligation of information disclosure in a timely manner in accordance with the relevant requirements under the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange 《( 上海證券交易所股票上市規 則》), Administrative Measures for the Takeover of Listed Companies 《( 上市公司收購 管理辦法》), and the Guidelines of the Shanghai Stock Exchange on Increase in Shareholdings by Shareholders of Listed Companies and Their Parties Acting In Concert

《( 上海證券交易所上市公司股東及其一致行動人增持股份行為指引》).

By order of the Board of Directors

Postal Savings Bank of China Co., Ltd.

Du Chunye

Joint Company Secretary

Beijing, the PRC

8 December 2019

As at the date of this announcement, the Board of the Bank comprises Mr. Zhang Jinliang as Chairman and Non-executive Director; Mr. Zhang Xuewen and Ms. Yao Hong as Executive Directors; Mr. Han Wenbo, Mr. Tang Jian, Mr. Liu Yaogong, Mr. Liu Yue and Mr. Ding Xiangming as Non-executive Directors; Mr. Ma Weihua, Ms. Bi Zhonghua, Mr. Fu Tingmei, Mr. Wen Tiejun, Mr. Chung Shui Ming Timpson and Mr. Hu Xiang as Independent Non-executive Directors.

• Postal Savings Bank of China Co., Ltd. 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 and/or deposit-taking business in Hong Kong.

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