Huishang Bank : Announcement on Update of the Change of the Public Float

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Huishang Bank Corporation Limited*

徽 商 銀 行 股 份 有 限 公 司 *

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

(Stock Code: 3698 and 4608 (Preference Shares)) ANNOUNCEMENT ON UPDATE OF THE CHANGE OF THE PUBLIC FLOAT

The Board hereby announces that the public float of the Bank's H shares further decreased from approximately 19.94% to approximately 19.68%, which continues to be below the minimum of 25% as required under Rule 8.08(1)(a) of the Listing Rules.

Shareholders and potential investors of the Bank are advised to exercise caution when dealing in the shares of the Bank.

Reference is made to the various announcements in relation to the public float of the H shares of Huishang Bank Corporation Limited (the "Bank") published by the Bank since May 11, 2016. The Bank wishes to update its shareholders and potential investors about the change of the public float of the Bank's H shares since the announcement made by the Bank on May 31, 2017.

UPDATE OF THE STATUS OF THE PUBLIC FLOAT OF THE BANK

The board of the directors of the Bank (the "Board") hereby announces that the public float of the Bank's H shares further decreased from approximately 19.94% to approximately 19.68%, which continues to be below the minimum of 25% as required under Rule 8.08(1)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

According to the disclosure of interests forms submitted to The Stock Exchange of Hong Kong Limited (the "Stock Exchange") by Shanghai Soong Ching Ling Foundation (上海宋慶齡基 金會) (the "SCL Foundation") and its affiliates on June 23, 2017, Zhongjing Xinhua Property Management (Hong Kong) Co., Limited ("Zhongjing Xinhua Hong Kong") (a company indirectly controlled by the SCL Foundation) increased its shareholding in the Bank's H shares by 28,174,000 H shares by way of on-exchange trading on June 23, 2017. Accordingly, the number of H shares of the Bank indirectly held by the SCL Foundation increased to 920,389,000. Together with its indirect holding of 649,042,730 domestic shares of the Bank, the total issued ordinary share capital of the Bank indirectly held by the SCL Foundation has increased to approximately 14.20%. As a result, the SCL Foundation is a core connected person of the Bank, and its holding of the Bank's H shares is not regarded as being held by the public.

Furthermore, Golden Harbour Investments Management Limited ("Golden Harbour") (a company indirectly controlled by the SCL Foundation) acquired 400,000,000 H shares of the Bank by way of off-exchange trading on January 21, 2017, among which the acquisition of 332,569,000 H shares was completed on March 2, 2017. As at the date hereof, the Bank has not obtained any information indicating that the acquisition of the remaining 67,431,000 H shares of the Bank had been completed as at the date of this announcement, but according to the email from Zhongjing Xinhua Asset Investment Management Co., Ltd. (中靜新華資產管理有限公司) ("Zhongjing Xinhua"), a company indirectly controlled by the SCL Foundation, the vendor(s) undertook to appoint the person(s) designated by Golden Harbour as its (their) proxy to attend and vote at the general meeting(s) or class meeting(s) of the Bank in accordance with the instructions of Golden Harbour during the period from the date of the share sale and purchase agreement to the date of completion. Accordingly, these 67,431,000 H shares of the Bank are also considered not to be held by the public under Rule 8.24 of the Listing Rules. As a result, as at the date of this announcement, the public float of the Bank's H shares further decreased to approximately 19.68%.

To the best of the Board's knowledge and according to the latest information received by the Bank, the current shareholding structure of ordinary shares of the Bank is as follows:

Number of ordinary shares Percentage of the issued share of the Bank in each class of Percentage of the total issued ordinary shares of the Bank

Shareholder	of the Bank held	shares (Note 4)	(Note 4)
SCL Foundation (Note1) Domestic shares	649,042,730	8.23%	5.87%
H shares	920,389,000	29.10%	8.33%

H shares held by persons who are

accustomed to take instructions from a core connected person in relation

to voting (Note 2) 67,431,000 2.13% 0.61%

Sub-total	1,636,862,730	-	14.81%
Other holders of domestic shares (Note3)	7,238,276,553	91.77%	65.51%
Other public holders of H shares	2,174,680,000	68.76%	19.68%

Total 11,049,819,283 - 100.00%

Notes:

1. To the best of the Board's knowledge and according to the latest information received by the Bank, as at the date of this announcement, the SCL Foundation indirectly controls Zhongjing Xinhua, Zhongjing Sihai Company Ltd. (中靜四海實業有限公司), Zhongjing Xinhua Hong Kong, Wealth Honest Limited ("Wealth Honest") and Golden Harbour, which in turn directly holds 204,346,570 domestic shares, 444,696,160 domestic shares, 118,590,000 H shares, 469,230,000 H shares and 332,569,000 H shares of the Bank, respectively. Accordingly, the SCL Foundation is deemed to be interested in the shares of the Bank held by the above-mentioned companies.

2. Refers to the shares to be purchased by Golden Harbour but not completed as mentioned above. For these shares, the vendor(s) undertook to appoint the person(s) designated by Golden Harbour as its (their) proxy to attend and vote at the general meeting(s) or class meeting(s) of the Bank in accordance with the instructions of Golden Harbour.

3. To the best of the Board's knowledge and according to the latest information received by the Bank, the Bank has more than 16,300 holders of domestic shares, and no single holder of domestic shares holds 10% or more of the total issued ordinary share capital of the Bank.

4. Any discrepancies between the percentage of total and sum of items showed in the table are due to rounding.

5. As at the date of this announcement, the Bank has issued 44,400,000 offshore preference shares with a par value of RMB100 each. Pursuant to the articles of association of the Bank, the holders of offshore preference shares of the Bank are not entitled to convene and attend any general meeting of the Bank or vote at any general meeting of the Bank, except as stated in the terms and conditions of the offshore preference shares. If any trigger event occurs, the offshore preference shares may be converted into H shares in accordance with the conversion terms. For further details, please refer to the announcements of the Bank dated November 3, 2016 and November 10, 2016.

PROPOSAL TO RESTORE PUBLIC FLOAT

The Bank is currently considering various options so as to restore its public float as soon as practicable, including (i) continuing to promote the initial public offering and the listing of A shares; (ii) contacting the substantial shareholders of the Bank and suggesting them to place down their shares in the Bank as soon as practicable; and (iii) seeking opportunities to conduct placing of H shares after considering the market conditions in full and with detailed planning.

The Bank will also publish announcements on a monthly basis to update its shareholders and potential investors on the status of the public float of the Bank and measures that may be introduced by the Bank to restore its public float.

Shareholders and potential investors of the Bank are advised to exercise caution when dealing in the shares of the Bank.

By order of the Board

Huishang Bank Corporation Limited* Li Hongming

Chairman

Hefei, Anhui Province, China June 27, 2017

As at the date of this announcement, the Board of the Bank comprises Li Hongming, Wu Xuemin and Ci Yaping as executive directors; Zhang Feifei, Zhu Jiusheng, Qian Li, Lu Hui, Zhao Zongren, Qiao Chuanfu and Gao Yang as non-executive directors; Au Ngai Daniel, Dai Genyou, Wang Shihao, Zhang Shenghuai and Zhu Hongjun as independent non-executive directors.

* Huishang Bank Corporation Limited is not an authorized institution within the meaning of the Banking Ordinance (Chapter 155 of the Laws of Hong Kong), not subject to the supervision of the Hong Kong Monetary Authority, and not authorized to carry on banking/deposit-taking business in Hong Kong.