BOC Hong Kong : JOINT ANNOUNCEMENT in relation to the Potential Disposal of Chiyu Banking Corporation Limited

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this joint 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 joint announcement.

This joint announcement is made by Bank of China and BOCHK (Holdings) (together with their respective subsidiaries, the "Group") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the "SFO").

References are made to the announcement made by BOCHK (Holdings) on 23 May 2016 and

24 October 2016. The respective boards of directors of Bank of China and BOCHK (Holdings) have been reviewing their overall business strategies for their respective banking businesses in the Hong Kong region and the review has reached considerably mature stage which shows that the potential disposal of 70.49% of interest in Chiyu Banking Corporation Limited by Bank of China (Hong Kong) Limited ("BOCHK"), a direct wholly-owned subsidiary of BOCHK (Holdings) and an indirect 66.06% subsidiary of Bank of China, (the "Potential Disposal") would be consistent with the long term development strategy of the Group in the Hong Kong region which would enable a better allocation of resources of the Group.

Prior approval from the relevant regulatory authorities of the People's Republic of China must be obtained before the Potential Disposal may formally proceed. Bank of China would, under appropriate conditions and at an appropriate time, apply for the requisite approval or consent from the relevant regulatory authorities for implementation of the Potential Disposal by a method of transfer recognized by the relevant regulatory authorities. After the requisite approval or consent from the relevant regulatory authorities has been obtained, it was approved by the respective boards of directors of Bank of China and BOCHK (Holdings) that

the substantive proposal of the Potential Disposal may be implemented upon fulfillment of such conditions and at such time as approved by the board of directors of BOCHK.

Bank of China and BOCHK (Holdings) will make further announcement(s) with regard to the progress of the Potential Disposal in compliance with the Listing Rules and/or Part XIVA of the SFO as and when appropriate or required.

Hong Kong, 26 October 2016

As at the date of this joint announcement, the directors of Bank of China comprise Tian Guoli, Chen Siqing, Zhang Xiangdong*, Zhang Qi*, Wang Wei*, Liu Xianghui*, Li Jucai*, Nout Wellink**, Lu Zhengfei**, Leung Cheuk Yan** and Wang Changyun**.

As at the date of this joint announcement, the directors of BOCHK (Holdings) comprise Tian Guoli*, Chen Siqing*, Yue Yi, Ren Deqi*, Gao Yingxin*, Xu Luode*, Li Jiuzhong, Cheng Eva**, Choi Koon Shum**, Koh Beng Seng** and Tung Savio Wai-Hok**.

* Non-executive Directors

** Independent Non-executive Directors