Postal Savings Bank of China : PRELIMINARY PRICE CONSULTATION PERIOD OF A SHARE OFFERING AND SUMMARY OF PRINCIPAL PROVISIONS OF A SHARE PROSPECTUS

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.

POSTAL SAVINGS BANK OF CHINA CO., LTD.

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

(Stock Code: 1658)

(Stock Code of Preference Shares: 4612)

PRELIMINARY PRICE CONSULTATION PERIOD OF

A SHARE OFFERING

AND

SUMMARY OF PRINCIPAL PROVISIONS OF

A SHARE PROSPECTUS

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 (the "Listing Rules") and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

Reference is made to the announcements of the Bank dated 29 August 2017, 12 September 2017, 12 October 2017, 27 October 2017, 14 May 2018, 28 June 2018, 12 April 2019, 30 May 2019, 12 June 2019, 26 June 2019, 24 October 2019 and 25 October 2019 (collectively, the "Announcements") and the circulars dated 12 September 2017, 14 May 2018, and 12 April 2019 (collectively, the "Circulars"), in relation to the Bank's A Share offering and relevant matters. Unless otherwise specified, capitalized terms used in this announcement shall have the same meanings as defined in the Announcements and Circulars.

1. PRELIMINARY PRICE CONSULTATION PERIOD OF THE A SHARE OFFERING

As disclosed in the announcement of the Bank dated 25 October 2019, the Bank received an official written notification from China Securities Regulatory Commission (the "CSRC") on 25 October 2019 that the A Share Offering had been approved. As required by the applicable PRC laws and regulations, the Bank and the joint lead underwriters of the A Share Offering will conduct preliminary price consultations in the PRC among qualified participants who meet the requirements of the PRC laws and regulations on 1 November 2019 (from 9:30 a.m. to 15:00 p.m.) to determine the issue price. The Bank will make further announcement(s) once the final issue size and issue price of the A Share Offering have been determined.

II. PRINCIPAL PROVISIONS OF THE A SHARE PROSPECTUS

The full text of the prospectus in relation to the initial public offering of shares (A Shares) (the "A Share Prospectus"), a summary of the A Share Prospectus and the relevant appendices in Chinese only were published by the Bank on the website of the Shanghai Stock Exchange (www.sse.com.cn), the website of the Hong Kong Exchanges and Clearing Limited

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(www.hkexnews.hk) and the website of the Bank (www.psbc.com) on 29 October 2019. The summary of the A Share Prospectus was also published on various PRC newspapers including China Securities Journal, Shanghai Securities News, Securities Times and Securities Daily on 29 October 2019.

Summary of the principal provisions of the A Share Prospectus:

1. Summary of the A Share Offering

Type of shares:	RMB ordinary shares (A Shares)
Par value per share:	RMB1.00
Number of shares to be	No more than 5,172,164,200 Shares (namely not
issued:	exceeding 6% of the total share capital after the A
	Share Offering assuming no exercise of the over-
	allotment option for the A Share Offering); or no more
	than 5,947,988,200 Shares (namely not exceeding
	6.84% of the total share capital after the A Share
	Offering assuming the exercise in full of the over-
	allotment option for the A Share Offering). Upon the
	occurrence of any bonus issue, capitalization of capital
	reserve or other events prior to the A Share Offering,
	the offering size will be adjusted accordingly. The A
	Share Offering will be conducted by way of issuing
	new shares. The actual total offering size, over-
	allotment and proportion of placement will be
	determined according to the capital requirements of
	the Bank, communications between the Bank and
	regulatory authorities and the prevailing market
	conditions at the time of offering
Issue price per share:	RMB[ ]
Price-to-earnings (P/E) ratio	[ ] times
of the offering (calculated by
dividing the issue price by
earnings per share, and
earnings per share is
calculated by dividing the
Bank's 2018 audited net profit
attributable to the holders of
ordinary shares of the
Company before or after the
deduction of non-recurring
gains and losses, whichever is
lower, by the total share
capital after the offering
(assuming no exercise of the
over-allotment option for the
A Share Offering)):

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Net asset value per share	RMB5.49
before the A Share Offering
(calculated by dividing the
Bank's audited equity
attributable to the holders of
ordinary shares of the
Company after the deduction
of other equity instruments as
at 30 June 2019 by the total
share capital before the
offering):
Net asset value per share after	RMB[ ]
the A Share Offering
(calculated by dividing the
sum of the Bank's audited
equity attributable to the
holders of ordinary shares of
the Company after the
deduction of other equity
instruments as at 30 June
2019 and the net proceeds
raised from the offering by
the total share capital after
the offering (assuming no
exercise of the over-allotment
option for the offering)):

Price-to-book (P/B) ratio of the offering (calculated by dividing the price per share by the net asset value per share after the offering):

Method of offering:

Target subscribers:

[ ] times

1. combination of strategic placement, off-line book- building and placement to off-line investors in the price consultation process and on-line offering to qualified social public investors at fixed prices or other methods of offering permitted by the CSRC

Qualified natural persons and institutional investors (excluding those prohibited by the relevant PRC laws, administrative regulations, departmental rules, normative documents and other regulatory requirements that the Bank needs to comply with). If any of the aforesaid target subscribers of the A Share Offering is a related party of the Bank, the Bank will take all reasonable measures to comply with the relevant requirements of the listing rules of the places of listing

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Method of underwriting:	The offering will be underwritten by an underwriting
	syndicate led by the lead underwriter(s) on a standby
	commitment basis
Estimated gross and net	The estimated gross proceeds raised under the A Share
proceeds raised:	Offering are RMB[ ]; and after deduction of offering
	expenses, the estimated net proceeds raised under the
	A Share Offering are RMB[ ] (assuming no exercise of
	the over-allotment option for the A Share Offering)
Estimated offering expenses:	Assuming no exercise of the over-allotment option for
	the A Share Offering, the total expenses occurred in
	connection with the A Share Offering are
	approximately RMB[ ], among which underwriting
	and sponsor fees are determined by the actual gross
	proceeds raised (assuming no exercise of the over-
	allotment option for the A Share Offering) multiplying
	1.50% (including taxes); auditing fees and capital
	verification fees are RMB20.99 million; legal
	expenses are RMB4.72 million; information
	disclosure expenses in relation to the A Share
	Offering are RMB7.12 million; listing service fees
	are RMB3.97 million; and stamp duty shall be
	determined based on 0.025% of the actual amount of
	the net proceeds raised (assuming no exercise of the
	over-allotment option for the A Share Offering).
	Assuming the exercise of the over-allotment option
	for the A Share Offering, the additional underwriting
	fees are determined by the additional actual gross
	proceeds raised (assuming the exercise of the over-
	allotment option) multiplying 1.50% (including taxes);
	the additional auditing fees and capital verification
	fees are RMB0.17 million; and the additional stamp
	duty shall be determined based on 0.025% of the
	additional actual amount of the net proceeds raised
	(assuming exercise of the over-allotment option)
	(except for underwriting and sponsor fees, the related
	value added taxes are not included in the expenses
	above)
Stock exchange on which the	Shanghai Stock Exchange
shares to be listed:

2. Use of proceeds

Approved by the 2017 second extraordinary general meeting, 2017 second class meeting for domestic shareholders and 2017 second class meeting for H shareholders of the Bank held on Friday, 27 October 2017, all of the proceeds raised from the A Shares Offering,

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after deducting the offering expenses, will be used to replenish the capital of the Bank. As for the details of use of proceeds raised from A Share Offering, please refer to the circular of the Bank dated 12 September 2017.

3. Share capital before and after the A Share Offering

Before the A Share Offering, the Bank's share capital comprised a total of 81,030,574,000 shares, including 61,174,407,000 domestic shares and 19,856,167,000 H shares. Taking not into consideration of the effect of the over-allotment option for the A Share Offering and assuming 5,172,164,200 A shares is to be issued in the A Share Offering (assuming no exercise of the over-allotment option), the total share capital after the A Share Offering is 86,202,738,200 shares. The shareholding structure of the Bank before and after the A Share Offering is as follows:

					After offering (assuming no
					exercise of the over-allotment
		Before offering	option)
	Nature of	Number of		Number of
	equity	shares held	Percentage of	shares held	Percentage of
Name of shareholder	interest	(Shares)	shareholding	(Shares)	shareholding
China Post Group	Domestic
Corporation (SS)	Shares	55,847,933,782		68.92%	55,847,933,782		64.79%
China Life Insurance	Domestic
Company Limited (SS)	Shares	3,341,900,000	4.12%	3,341,900,000	3.88%
China Telecommunications	Domestic
Corporation (SS)	Shares	1,117,223,218	1.38%	1,117,223,218	1.30%
Zhejiang Ant Small and
Micro Financial
Services Group Co.,	Domestic
Ltd.	Shares	738,820,000		0.91%	738,820,000		0.86%
Shenzhen Tencent Domain
Computer Network	Domestic
Company Limited	Shares	128,530,000		0.16%	128,530,000		0.15%
H Shareholders	H Shares	19,856,167,000		24.50%	19,856,167,000		23.03%
	Domestic
Other A Shareholders	Shares	-	-	5,172,164,200	6.00%
Total Shares		81,030,574,000		100.00%	86,202,738,200		100.00%

Note: Hereafter "SS" indicates the state-owned shareholders, it's the abbreviation of State-owned Shareholder.

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Assuming exercise in full of the over-allotment option for the A Share Offering and 5,947,988,200 A shares is to be issued in the A Share Offering, the total share capital after the A Share Offering is 86,978,562,200 shares. The shareholding structure of the Bank before and after the A Share Offering is as follows:

					After offering (assuming the
					exercise in full of the over-
		Before offering	allotment option)
	Nature of	Number of		Number of
	equity	shares held	Percentage of	shares held	Percentage of
Name of shareholder	interest	(Shares)	shareholding	(Shares)	shareholding
China Post Group	Domestic
Corporation (SS)	Shares	55,847,933,782		68.92%	55,847,933,782		64.21%
China Life Insurance	Domestic
Company Limited (SS)	Shares	3,341,900,000	4.12%	3,341,900,000	3.84%
China Telecommunications	Domestic
Corporation (SS)	Shares	1,117,223,218	1.38%	1,117,223,218	1.28%
Zhejiang Ant Small and
Micro Financial
Services Group Co.,	Domestic
Ltd.	Shares	738,820,000		0.91%	738,820,000		0.85%
Shenzhen Tencent Domain
Computer Network	Domestic
Company Limited	Shares	128,530,000		0.16%	128,530,000		0.15%
H Shareholders	H Shares	19,856,167,000		24.50%	19,856,167,000		22.83%
	Domestic
Other A Shareholders	Shares	-	-	5,947,988,200	6.84%
Total Shares		81,030,574,000		100.00%	86,978,562,200		100.00%

The above English version of the summary of the principal provisions of the A Share Prospectus is an unofficial translation of its Chinese version. In case of any discrepancies, the Chinese version shall prevail. Any discrepancies between the numerical figures and percentages showed in this announcement are due to rounding.

Further announcement(s) will be made to disclose any major updates and developments in respect of the A Share Offering and Listing in accordance with the Listing Rules and other applicable laws and regulations.

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This announcement is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for any securities of the Bank.

By order of the Board of Directors

Postal Savings Bank of China Co., Ltd.

Du Chunye

Joint Company Secretary

Beijing, the PRC

29 October 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. Gan Peizhong 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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