Central China Securities : ANNOUNCEMENT ON PROGRESS OF REDUCTION OF SHAREHOLDING BY SHAREHOLDER

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.

Central China Securities Co., Ltd.

(a joint stock company incorporated in 2002 in Henan Province, the People's Republic of China with limited liability under the Chinese corporate name "中原証券股份有限公司" and carrying on business in Hong Kong as "中州証券")

(Stock Code: 01375)

ANNOUNCEMENT ON PROGRESS OF REDUCTION OF SHAREHOLDING BY SHAREHOLDER

Reference is made to the announcement of Central China Securities Co., Ltd. (the "Company") dated 5 September 2019, in relation to the proposed reduction of shareholding

in the Company by Bohai Industrial Investment Fund Management Co., Ltd.* (渤海 產業投資基金管理有限公司) (holding the Company's A shares on behalf of Bohai Industrial Investment Fund* (渤海產業投資基金), "Bohai Company"), a substantial

shareholder of the Company (the "Proposed Reduction"). Bohai Company planned to reduce its shareholding in the Company by not more than 77,381,414 A shares by way of centralized bidding within 6 months after 15 trading days from 6 September 2019; reduce its shareholding in the Company by not more than 154,762,828 A shares by way of block trading within 6 months after 3 trading days from 6 September 2019. The total shareholding in the Company to be reduced shall not exceed 232,144,242 A shares (representing 6% of the total number of shares of the Company).

During the period from 30 September 2019 to 27 December 2019, Bohai Company reduced its shareholding in the Company by 8,299,300 A shares solely by way of centralized bidding, representing 0.21% of the total number of shares of the Company. The price range for the reduction is between RMB4.74 per share to RMB5.23 per share. As at the date of this announcement, Bohai Company held 534,309,767 A shares of the Company (tradable shares not subject to trading moratorium), representing 13.81% of the total number of shares of the Company; half of the period for implementation of the Proposed Reduction has passed and the implementation of the Proposed Reduction has not yet been completed.

- 1 -

The implementation of the Proposed Reduction will neither have an impact on the corporate governance structure or ongoing operations of the Company, nor result in a change in control of the Company. During the implementation of the Proposed Reduction, Bohai Company will decide on whether and how to implement the Proposed Reduction according to market conditions, share price of the Company and other factors. The Company will pay constant attention to the subsequent implementation of the Proposed Reduction by Bohai Company and fulfill its information disclosure obligation in a timely manner in accordance with relevant requirements.

By order of the Board of

Central China Securities Co., Ltd.

Jian Mingjun

Chairman

Henan, the PRC

27 December 2019

As at the date of this announcement, the Board comprises executive Directors Mr. JIAN Mingjun and Mr. CHANG Junsheng, non-executive Directors Mr. LI Xingjia, Mr. WANG Lixin, Mr. TIAN Shengchun, Mr. ZHANG Xiaoqi and Mr. LU Benson Cheng, and independent non-executive Directors Mr. YUEN Chi Wai, Mr. NING Jincheng, Mr. YU Xugang and Ms. ZHANG Dongming.

*  For identification purpose only

- 2 -