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

(Stock code: 02866) VOLUNTARY ANNOUNCEMENT ENTRUSTED LOAN FROM CONNECTED PERSON

On 18 July 2014, CSCL HK entered into the Entrusted Loan Agreement with China Shipping and CS Finance Company whereby China Shipping entrusted CS Finance Company to provide a loan in the amount of US$300,000,000 (equivalent to approximately HK$2,325,000,000) to CSCL HK.
As China Shipping and CS Finance Company are connected persons of the Company, the Entrusted Loan Agreement constitutes a connected transaction of the Company. As the Entrusted Loan is provided for the benefit of the Company on normal commercial terms (or better to the Company) and no security over the assets of the Group is granted in respect of the Entrusted Loan, the Entrusted Loan is exempted from the reporting, announcement and independent shareholders' approval requirements under the Listing Rules. Nevertheless, the Company is required by the applicable PRC rules and regulations to issue an announcement to disclose the Entrusted Loan and as such, the Company sets out below details of the Entrusted Loan Agreement for the information of potential investors and Shareholders.

INTRODUCTION

On 18 July 2014, CSCL HK entered into the Entrusted Loan Agreement with China Shipping and CS Finance Company whereby CSCL HK obtained an Entrusted Loan from China Shipping. The loan was made by way of China Shipping entrusting CS Finance Company to provide a loan in the amount of US$300,000,000 (equivalent to approximately HK$2,325,000,000) to CSCL HK.

ENTRUSTED LOAN AGREEMENT Parties

Lender: China Shipping, the controlling shareholder of the Company
Borrower: CSCL HK, a wholly-owned subsidiary of the Company
Entrusted Party: CS Finance Company
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Loan amount

Pursuant to the Entrusted Loan Agreement, China Shipping entrusted CS Finance Company to provide a loan in the amount of US$300,000,000 (equivalent to approximately HK$2,325,000,000) to CSCL HK.

Main contents and payment terms

Pursuant to the Entrusted Loan Agreement, China Shipping entrusted CS Finance Company to provide loan to CSCL HK, receive interests and principal. It may also supervise the application of the loan through CS Finance Company.
The term of the Entrusted Loan is composed of two parts: the part of US$200,000,000 has a term of three years; the part of US$100,000,000 has a term of one year. The sum of the loan is US$300,000,000 (equivalent to approximately HK$2,325,000,000) and the lending interest rate is lower than the US dollar lending rates in international financial markets and is lower than the benchmark rate published by the People's Bank of China in the corresponding period.
The loan interest shall be paid on a half yearly basis. CSCL HK shall repay the principal in one lump sum when it becomes due. CS Finance Company, as an entrusting party, will charge an one- off administrative fee of US$30,000 (equivalent to approximately HK$232,500), which shall be payable by CSCL HK. Terms of the Entrusted Loan Agreement has been arrived at after arm's length negotiations and are based on normal commercial terms.

PURPOSE OF THE TRANSACTION AND IMPACT ON THE COMPANY

China Shipping pro vided the loan of US$300,000,000 (equi v alent to approxima te ly
HK$2,325,000,000) to CSCL HK to meet the liquidity requirements.
The Entrusted Loan is considered as a financial support provided to CSCL HK, a wholly-owned subsidiary of the Company, by China Shipping in the capacity of a controlling shareholder of the Company. The loan will be mainly used for replenishment of CSCL HK's liquidity and increase its cash flow, which in turn will serve to enhance its ability to continue as a going concern.
As such, the Directors (including the independent non-executive Directors) are of the opinion that the Entrusted Loan, which could lower CSCL HK's finance cost, is open, fair and just and in the interests of the Company and the Shareholders as a whole.

INFORMATION ON THE PARTIES AND LISTING RULES IMPLICATIONS

The Group is principally engaged in the operation and management of international and domestic container and marine transportation.
CSCL HK is a limited liability company incorporated in Hong Kong and a wholly-owned subsidiary of the Company. It is principally engaged in international container transportation.
China Shipping, a PRC state-owned enterprise and the controlling shareholder of the Company, is a large shipping conglomerate involved in import and export business, trading, coastal and ocean cargo transportation, dry bulk cargo transportation, supply of food for vessels, management of docks and other services in relation to the above, and operates in different regions of the PRC and across the world.
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As at the date of this announcement, China Shipping together with its subsidiaries is interested in approximately 47.48% of the existing issued share capital of the Company and is its controlling shareholder. As such, China Shipping is a connected person of the Company within the meaning of the Listing Rules.
CS Finance Company is a company established in Shanghai, the PRC pursuant to an investment agreement that the Company entered into with China Shipping and its subsidiaries and China Shipping holds the controlling interests in CS Finance Company. According to such investment agreement, CS Finance Company will provide the Group with a range of financial services including (i) deposit services; (ii) loan services; (iii) settlement services; and (iv) other financial services as approved by CBRC. As CS Finance Company is a subsidiary of China Shipping, CS Finance Company is also a connected person of the Company.
As China Shipping and CS Finance Company are connected persons of the Company, the Entrusted Loan constitutes a connected transaction of the Company. As the Entrusted Loan is provided for the benefit of the Company on normal commercial terms (or better to the Company) and no security over the assets of the Group is granted in respect of the Entrusted Loan, the Entrusted Loan is exempted from the reporting, announcement and independent shareholders' approval requirements under the Listing Rules. Nevertheless, the Company is required by the applicable PRC rules and regulations to issue an announcement to disclose the Entrusted Loan and as such, the Company sets out in the above details of the Entrusted Loan Agreement for the information of potential investors and Shareholders.

DEFINITIONS

In this announcement, unless the context otherwise requires, the following terms shall have the following meanings:
"Board" the board of Directors
"CBRC" China Banking Regulatory Commission
"China Shipping" China Shipping (Group) Company (r:f�m�(�Il)�%PJ)*
"Company" China Shipping Container Lines Company Limited (r:fm�I!t:ll

�!!5t5t::f�%PJ), a joint stock limited company established in

the PRC, the H shares of which are listed on the Stock Exchange,
and the A Shares of which are listed on the Shanghai Stock
Exchange
"CSCL HK" China Shipping Container Lines (Hong Kong) Co., Ltd. (r:f m � I!t :ll � !!(w m)::f � % PJ), a limited liability company
incorporated in Hong Kong
"CS Finance Company" China Shipping Finance Company Limited (r:fm�IlM%::f�- f%PJ*), a limited liability company established in Shanghai, the
PRC
"Directors" directors of the Company
"Entrusted Loan" the entrusted loan pursuant to the Entrusted Loan Agreement
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"Entrusted Loan
Agreement"
the agreement dated 18 July 2014 entered into between China Shipping, CSCL HK and CS Finance Company in relation to China Shipping entrusting CS Finance Company to make a US$300,000,000 (equivalent to approximately HK$2,325,000,000) loan to CSCL HK
"Group" the Company and its subsidiaries
"HK$" Hong Kong dollars, the lawful currency of the Hong Kong Special
Administrative Region of the PRC
"Listing Rules" the Rules Governing the Listing of Securities on the Stock Exchange
"PRC" The People's Republic of China
"Shareholder(s)" holders of share(s) of the Company
"Stock Exchange" The Stock Exchange of Hong Kong Limited
"US$" United States dollars, the lawful currency of the United States of
America
By order of the Board of

China Shipping Container Lines Company Limited Yu Zhen

Joint Company Secretary

Shanghai, the PRC
18 July 2014

The Board as at the date of this announcement comprises of Mr. Zhang Guofa, Mr. Huang Xiaowen and Mr. Zhao Hongzhou, being executive Directors, Ms. Su Min, Mr. Ding Nong, Mr. Liu Xihan, Mr. Yu Zenggang and Mr. Chen Jihong, being non-executive Directors, and Ms. Zhang Nan, Mr. Teo Siong Seng, Mr. Chen Lishen, Mr. Guan Yimin and Mr. Shi Xin, being independent non-executive Directors.

The exchange rate adopted in this announcement for illustration purpose only is US$1.00 = HK$7.7500. Such conversion should not be construed as a representation that the currency could actually be converted into HK$ at that rate.

* The Company is a registered non-Hong Kong company as defined in the Companies Ordinance (Chapter 622 of the Laws of Hong Kong) and it is registered under its Chinese name and under the English name "China Shipping Container Lines Company Limited".

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