China Evergrande : REDEMPTION OF (i) 8.75% SENIOR NOTES DUE 2018 (ii) 8.0% SENIOR NOTES DUE 2019 (iii) 12.0% SENIOR NOTES DUE 2020

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong 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.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States or any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No securities may be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Any public offering of securities to be made in the United States will be made by means of a prospectus. Such prospectus will contain detailed information about the company making the offer, management, as well as financial statements. The Company does not intend to make any public offering of securities in the United States.

CHINA EVERGRANDE GROUP

中 國 恒 大 集 團

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 3333)

REDEMPTION OF

1. 8.75% SENIOR NOTES DUE 2018

   (ISIN (144A/Reg S): US300151AB32/USG3225AAD57 Common Code (144A/Reg S): 098624279/098129359 CUSIP (144A/Reg S): 300151AB3/G3225AAD5)

2. 8.0% SENIOR NOTES DUE 2019

   (ISIN (Reg S): XS1344520561, Common Code (Reg S): 134452056)

3. 12.0% SENIOR NOTES DUE 2020

(ISIN (Reg S): XS1165146488, Common Code (Reg S): 116514648)

In order to further lower financing cost and improve the debt maturity profile of the offshore financing of the Company, the Board resolved after due consideration to redeem the below senior notes. The Company is pleased to announce that notification has been sent to relevant bond trustees on 6 July 2017.

Pursuant to the terms of the indenture dated as of 30 October 2013 (as amended or supplemented from time to time, the ''2018 Indenture''), entered into among China Evergrande Group (the ''Company''), certain subsidiary guarantors (the ''Subsidiary Guarantors'') and Citicorp International Limited, as trustee (the ''2018 Trustee'') and collateral agent (the ''Collateral Agent'') in connection with the issuance of the Company's 8.75% Senior Notes due 2018 (the ''2018 Notes''), the Company has informed the 2018 Trustee that all the outstanding 2018 Notes will be redeemed in full on 5 August 2017 (the ''Redemption Date'') at a redemption price equal to 104.375% of the principal amount thereof, plus accrued and unpaid interest to (but not including), the Redemption Date.

Pursuant to the terms of the indenture dated as of 17 January 2016 (as amended or supplemented from time to time, the ''2019 Indenture''), among the Company, the Subsidiary Guarantors and Citicorp International Limited, as trustee (the ''2019 Trustee'') and Collateral Agent in connection with the issuance of the Company's 8.0% Senior Notes due 2019 (the ''2019 Notes''), the Company has informed the 2019 Trustee that all the outstanding 2019 Notes will be redeemed in full on the Redemption Date at a redemption price equal to 100% of the principal amount thereof, plus the Applicable Premium (as defined in the 2019 Indenture) as of, and accrued and unpaid interest to (but not including), the Redemption Date.

Pursuant to the terms of the indenture dated as of 17 February 2015 (as amended or supplemented from time to time, the ''2020 Indenture''), entered into among the Company, the Subsidiary Guarantors and Citicorp International Limited, as trustee (the ''2020 Trustee'') and Collateral Agent in connection with the Company's 12.0% Senior Notes due 2020 (the ''2020 Notes''), the Company has informed the 2020 Trustee that all the outstanding 2020 Notes will be redeemed in full on the Redemption Date at a redemption price equal to 100% of the principal amount thereof, plus the Applicable Premium (as defined in the 2020 Indenture) as of, and accrued and unpaid interest to (but not including), the Redemption Date.

As of the date of this announcement, the outstanding principal amounts of the 2018 Notes, the 2019 Notes and the 2020 Notes are US$426,813,000, US$102,981,000 and US$128,994,000, respectively. The Company will use the proceeds from the issuance of 2021 Senior Notes, 2023 Senior Notes and 2025 Senior Notes on 28 June 2017 to fund the redemption payment of the 2018 Notes, the 2019 Notes and the 2020 Notes. Upon redemption of the outstanding 2018 Notes, 2019 Notes and 2020 Notes on the Redemption Date, there will be no further outstanding 2018 Notes, 2019 Notes and 2020 Notes in issue. In addition, the Company will have no outstanding 7.80% Senior Private Notes due 2019 (ISIN (Reg S): XS1342921993, Common Code (Reg S): 134292199) in issue.

Accordingly, the 2019 Notes and the 2020 Notes will be cancelled and delisted from the official list of the Singapore Exchange Securities Trading Limited, and the Company will make an application to The Stock Exchange of Hong Kong Limited for the 2018 Notes to be delisted.

Upon the redemption of the 2018 Notes, the 2019 Notes and the 2020 Notes, the Company's debt structure will be further improved with extended maturity profiles and lower financing costs, which will strengthen the Company's stable growth in the future.

By Order of the Board

China Evergrande Group Hui Ka Yan

Chairman

Hong Kong, 6 July 2017

As at the date of this announcement, the executive Directors are Mr. Hui Ka Yan, Mr. Xia Haijun, Ms. He Miaoling, Mr. Pan Darong, Mr. Huang Xiangui and Mr. Shi Junping, and the independent non-executive Directors are Mr. Chau Shing Yim, David, Mr. He Qi and Ms. Xie Hongxi.