CNOOC Limited the support for the Hong Kong Special Administrative Region (HKSAR) Government's initiatives of encouraging the adding of RMB-denominated stock trading counters as well as optimizing the trading mechanism in Hong Kong. The company has noticed the briefing by the Secretary for Financial Services and the Treasury of the HKSAR, Mr. Christopher Hui Ching-yu, at the Legislative Council Panel on Financial Services today. Mr. Hui proposed to encourage the issuance and trading of dual currency securities in Hong Kong and optimize the resultant trading mechanism.

These proposals are geared to improving the liquidity and price efficiency of RMB-denominated stocks, expediting the issuance and trading of RMB-denominated securities, and enhancing investors' willingness to trade at RMB-denominated stock trading counters. The company welcomes the HKSAR's active promotion for more listed issuers to add RMB-denominated stock trading counters, and the discussion between the HKSAR and mainland institutions with a view of allowing the proposed RMB-denominated stock trading counters to be included in the Hong Kong Stock Connect. These efforts will not only facilitate mainland investors to use RMB to participate in the Hong Kong Stock Connect, and enrich the liquidity and depth of the offshore RMB market, but also further boost the issuance and trading of RMB-denominated stocks, thereby speeding up the progress of RMB internationalization.

CNOOC Limited supports the HKSAR's efforts in propelling the development of offshore RMB business in Hong Kong, as well as initiatives of optimizing the issuance and trading mechanism of the dual currency stocks based on Hong Kong dollar and RMB. Key terms of these initiatives include establishing a dual currency stock market maker mechanism and exempting stamp duty on the sale of shares involved in relevant market making activities and arbitrage transactions. The Company plans to explore proactively the feasibility of setting up an RMB-denominated stock trading counter in Hong Kong.

Upon the passing of the relevant proposals in the Legislative Council, with the transaction settlement rules and mechanisms in place, the Company would then consider establishing an RMB-denominated trading counter after fulfilling requisite internal approval procedures, thus contributing to advancing the internationalization of RMB.