Chinese Estates : Voluntary Announcement – Acquisition of shares in China Evergrande Group

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.

(Incorporated in Bermuda with limited liability)

This is a voluntary announcement made by Chinese Estates Holdings Limited (the "Company" together with its subsidiaries, the "Group").

Reference is made to the voluntary announcement made by the Company dated 19th July, 2017. The board of directors of the Company (the "Board") announces that during the period from April 2017 and up to the date of this announcement, the Company has, through its wholly-owned subsidiaries, acquired a total of 766,330,000 shares of US$0.01 each issued by China Evergrande Group (Stock Code: 3333) ("China Evergrande") in the open market, representing approximately 5.83% of the total issued share capital of China Evergrande as at 31st July, 2017 (being the latest date which the total number of issued shares is publicly available) (the "Acquisition"). As stated in the Company's announcements dated 4th and 19th July, 2017 and interim results announcement of the Company dated 21st August, 2017, the Group has acquired shares in China Evergrande which were recorded as financial assets measured at fair value through other comprehensive income.

The Company was informed by Ms. Chan, Hoi-wan ("Ms. Chan") (an executive director of the Company and a trustee of the substantial shareholders of the Company (who are her two minor children)) that as of the date of this announcement, Ms. Chan personally held 35,000,000 shares in China Evergrande, representing approximately 0.27% of the total issued share capital of China Evergrande as at 31st July, 2017. By aggregating the Group's shareholding in China Evergrande as of the date of this announcement, Ms. Chan is deemed to be interested in 801,330,000 shares in China Evergrande in total, representing approximately 6.10% of the total issued share capital of China Evergrande as at 31st July, 2017.

China Evergrande is principally engaged in development of large scale residential properties and integrated commercial properties in the People's Republic of China. The Board is optimistic about China Evergrande's overall prospect.

The Group is principally engaged in property investment and development, brokerage, securities investment, money lending and cosmetics distribution and trading. The Group has in the ordinary and normal course of business conducted its securities investment activities for years. The Acquisition is an exempted notifiable transaction for the Company pursuant to Rule 14.04(1)(g) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

By order of the Board

Executive Director and Company Secretary

Hong Kong, 29th August, 2017

As at the date of this announcement, the Board comprised Ms. Chan, Sze-wan, Ms. Chan, Hoi-wan, Ms. Chan, Lok-wan and Mr. Lam, Kwong-wai as Executive Directors, Mr. Lau, Ming-wai and Ms. Amy Lau, Yuk-wai as Non-executive Directors, and Mr. Chan, Kwok-wai, Ms. Phillis Loh, Lai-ping and Mr. Ma, Tsz-chun as Independent Non-executive Directors.

Website: http://www.chineseestates.com