China Art Financial : MONTHLY UPDATE ANNOUNCEMENT PURSUANT TO RULE 3.7 OF THE TAKEOVERS CODE

Hong Kong Exchanges and Clearing Limited, The Stock Exchange of Hong Kong Limited and Hong Kong Securities Clearing Company 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.

CHINA ART FINANCIAL HOLDINGS LIMITED

中 國 藝 術 金 融 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1572)

MONTHLY UPDATE ANNOUNCEMENT

PURSUANT TO RULE 3.7 OF THE TAKEOVERS CODE

This announcement is made by the board (the "Board") of directors (the "Directors") of China Art Financial Holdings Limited (the "Company") pursuant to Rule 3.7 of The Codes on Takeovers and Mergers and Share Buy-backs (the "Takeovers Code").

Reference is made to the announcements of the Company (the "Announcements")

1. dated 13 May 2020 relating to the appointment of the Receiver over the Charged Shares; (ii) dated 21 May 2020 relating to the possible transaction in which the Receiver may look for potential purchaser(s) for the Charged Shares (the " Possible Transaction"); and (iii) dated 22 June 2020, 22 July 2020 and 21 August 2020 relating to the monthly update of the Possible Transaction. Unless otherwise defined, capitalised terms used herein shall have the same meanings as those defined in the Announcements.

The Board wishes to update the shareholders and potential investors of the Company that, as at the date of this announcement, no potential purchasers have been identified in respect of the Possible Transaction, and that no agreement has been entered into in respect of any possible disposal of the Charged Shares.

In compliance with Rule 3.7 of the Takeovers Code, monthly announcement(s) setting out the progress of the Possible Transaction will be made until the announcement of a firm intention to make an offer under Rule 3.5 of the Takeovers Code or of a decision not to proceed with an offer is made. Further announcement(s) will be made by the Company as and when appropriate or required in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and/or the Takeovers Code (as the case may be).

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Warnings: The possible sale of the Charged Shares may or may not materialize, and even if materializes, may or may not result in a change of control and lead to a general offer under Rule 26.1 of Takeovers Code. Shareholders and potential investors of the Company should exercise caution when dealing in the securities of the Company, and if they are in any doubt about their position, they should consult their professional adviser(s).

By order of the Board

China Art Financial Holdings Limited

Fan Zhijun

Chairman

Hong Kong, 21 September 2020

As at the date of this announcement, the Board comprises (1) Mr. Fan Zhijun and Mr. Li Cheng as the executive Directors and (2) Mr. Leung Shu Sun, Sunny, Mr. Liu Jian and Ms. Yin Xu Hong as the independent non-executive Directors.

The Directors jointly and severally accept full responsibility for the accuracy of the information contained in this announcement and confirm, having made all reasonable enquiries, that to the best of their knowledge, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement, the omission of which would make any statements in this announcement misleading.

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