China Minsheng Financial : SUPPLEMENTAL ANNOUNCEMENT IN RELATION TO PLACING OF NEW SHARES UNDER GENERAL MANDATE

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This announcement appears for information purpose only and does not constitute an invitation or offer to acquire, purchase or subscribe for the securities of the Company.

China Minsheng Financial Holding Corporation Limited

中 國 民 生 金 融 控 股 有 限 公 司

(Incorporated in Hong Kong with limited liability)

(Stock Code: 245)

SUPPLEMENTAL ANNOUNCEMENT

IN RELATION TO

PLACING OF NEW SHARES UNDER GENERAL MANDATE

Reference is made to the announcement of China Minsheng Financial Holding Corporation Limited (the ''Company'') dated 3 October 2019 (the ''Announcement'') in relation to the placing of new shares of the Company under general mandate. Unless otherwise defined herein, capitalised terms used in this announcement shall have the same meanings as those defined in the Announcement.

The Company wishes to provide potential investors and Shareholders with the following further information on the Placing as follows:

The Company has carefully considered and reviewed its existing financial resources, given the majority of its current cash and bank balance is subject to restrictions (including the financial resources requirements for its licensed entities, the foreign exchange control restrictions, etc.), as at 30 September 2019, the Company's immediately deployable cash is approximately HK$300 million. The Company is of the view that the Placing represents a fair and reasonable means to raise additional funds for the Group's operations and to participate in further investment opportunities (as elaborated below), and is in the interest of the Company and the Shareholders as a whole.

Under the Placing Agreement, Completion is expected to take place on the fifth Business Day after the date of the Placing Agreement (or such other date as may be agreed by the Company and the Placing Agents). As at the date of this announcement, the Company is still in the process of applying for the approval to list and permission to deal in the Placing Shares with the Stock Exchange. The Company is actively cooperating with the Stock Exchange in the listing approval application, and in any event, the Long Stop Date for the Placing shall be 30 October 2019. The Company will make further announcement(s) as and when required under the Listing Rules.

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The net proceeds of the Placing is estimated to be approximately HK$486,870,000 (assuming all the Placing Shares are fully placed). The Company currently expects to utilise approximately HK$37 million on its general working capital, which include the payment of staff cost and office rent for the period from November 2019 to the first quarter of 2020. The Company also intends to apply the remaining approximately HK$450 million on three investment opportunities it has identified and is currently in contemplation of. The Company is expecting to invest approximately HK$100 million to HK$200 million in each of such investment opportunities, which comprises investment in a fund and participation as co- lender in a syndicate to two structured financing projects.

As at the date of this announcement, these investment opportunities remain subject to the Group's continuous assessment and evaluation.

Completion of the Placing is subject to the fulfilment of the conditions as set out in the Placing Agreement. As the Placing may or may not proceed, Shareholders and potential investors are reminded to exercise caution when dealing in the Shares.

By order of the Board

China Minsheng Financial Holding Corporation Limited

Tomohiko Watanabe

Chairman

Hong Kong, 8 October 2019

As at the date of this announcement, the Board comprises (1) Mr. Tomohiko Watanabe, Mr. Ni Xinguang, and Ms. Li Wei as executive directors of the Company; (2) Mr. Wang Dongzhi as non-executive director of the Company; and (3) Mr. Wang Yongli and Ms. Zhou Hui as independent non-executive directors of the Company.

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