China Huarong Asset Management : ANNOUNCEMENT ON ISSUE OF FINANCIAL BONDS

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China Huarong Asset Management Co., Ltd.

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

(Stock Code: 2799)

ANNOUNCEMENT ON

ISSUE OF FINANCIAL BONDS

Approval for the Issue of Financial Bonds

China Huarong Asset Management Co., Ltd. (the "Company") has received the approval from the China Banking and Insurance Regulatory Commission (the "CBIRC") entitled Approval from the China Banking and Insurance Regulatory Commission for the Issue of Financial Bonds by China Huarong Asset Management Co., Ltd. (Yin Bao Jian Fu [2019] No. 646), pursuant to which the Company was approved to issue financial bonds in an amount not exceeding RMB30 billion. Also, the Company has recently received the approval from the People's Bank of China (the "PBOC"), entitled Decision on the Administrative Licensing Permission of the People's Bank of China (Yin Shi Chang Xu Zhun Yu Zi [2019] No. 192), pursuant to which the Company was approved to publicly issue financial bonds in an amount not exceeding RMB25 billion in the national interbank bond market in the PRC.

In relation to the issue of the financial bonds, the Company will perform its disclosure obligations in accordance with the Administrative Measures on the Issue of Financial Bonds in the National Interbank Bond Market and other relevant regulatory requirements. Upon completion of the issue, the financial bonds will be traded in the national interbank bond market in the PRC in accordance with the relevant regulations of the PBOC.

Issue of Financial Bonds

In accordance with the approvals from the CBIRC and the PBOC, the Company intends to publicly issue financial bonds in an amount not exceeding RMB25 billion (the "Bond") in the national interbank bond market during the validity period approved by the PBOC.

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Use of proceeds from the Bond: mainly to develop the main business of distressed assets of the Company, build diversified financing channels and promote the match between the financing maturity and the business terms in accordance with applicable laws, permits from regulatory authorities and relevant requirements of national industrial policies; to supplement the working capital, optimize the assets and liabilities structure, promote the business development and financial innovation as well as for other purposes approved by the competent authorities.

The Company will keep shareholders and potential investors of the Company informed of further development in connection with the proposed issue of the Bond by way of further announcement(s) as and when appropriate or necessary.

The issue of the Bond is subject to completion. Shareholders of the Company and potential investors should exercise caution when dealing in the shares of the Company.

By order of the Board

China Huarong Asset Management Co., Ltd.

WANG Zhanfeng

Chairman

Beijing, the PRC

25 October 2019

As at the date of this announcement, the Board comprises Mr. WANG Zhanfeng and Ms. LI Xin as executive directors of the Company; Ms. WANG Cong, Ms. DAI Lijia and Mr. ZHOU Langlang as non-executive directors of the Company; Mr. TSE Hau Yin, Mr. LIU Junmin, Mr. SHAO Jingchun and Mr. ZHU Ning as independent non-executive directors of the Company.

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