Easyknit International : Announcement - DISCLOSEABLE TRANSACTION - DISPOSAL OF SECURITIES OF CSOP FTSE CHINA A50 ETF

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)

The Group disposed on-market a total of 3,988,016 China A50 shares in a series of transactions conducted on 24 August 2016, at an average price of HK$11.66 per China A50 share for an aggregate gross sale proceeds of approximately HK$46,500,000 (excluding transaction costs).

The Disposal constitutes a discloseable transaction of the Company under Chapter 14 of the Listing Rules, as one of the applicable percentage ratios exceeds 5% but is less than 25%.

The Group disposed on-market a total of 3,988,016 China A50 shares in a series of transactions conducted on 24 August 2016, at an average price of HK$11.66 per China A50 share for an aggregate gross sale proceeds of approximately HK$46,500,000 (excluding transaction costs).

As the Disposal was made on the market, the Company is not aware of the identities of the purchasers of the China A50 shares. To the best of the knowledge, information and belief of the Directors, having made all reasonable enquiries, each of the purchasers of the China A50 shares and their ultimate beneficial owners are Independent Third party.

The Group disposed of 3,988,016 China A50 shares, representing approximately 0.1796% of the issued share capital of China A50 (based on the 2,220,500,000 China A50 shares as at 4 August 2016 according to publicly available information).

The aggregate gross sale proceeds of the Disposal is approximately HK$46,500,000 (excluding transaction costs), which is receivable in cash on settlement. The price for the Disposal represented the market price of the China A50 shares at the time of the Disposal.

The Group's principal businesses are property investment, property development, securities investment and money lending business.

* for identification purposes only

The purpose of the Disposal is to obtain a balanced securities investment portfolio. As a result of the Disposal, the Group is expected to recognize a gain of approximately HK$501,000 which is calculated on the basis of the difference between the acquisition price and the disposal price (exclusive of the transaction costs). The Group intends to use the proceeds of the Disposal for general working capital.

The Disposal was made at market price and the Directors (including the independent non-executive Directors) are of the view that the Disposal will enhance the liquidity of the Company, was fair and reasonable, on normal commercial terms and in the interests of the Company and its Shareholders as a whole.

China A50 aims to provide investment results that, before fees and expenses, closely correspond to the performance of FTSE China A50 Index, which is an index consisting the top 50 A-Share companies by market capitalization listed on the Shanghai Stock Exchange or the Shenzhen Stock Exchange. The ETF is one of the first RMB physical A-share exchange traded funds issued outside PRC to invest directly in the A-share market which is inherently a market with restricted access.

The following information is extracted from the annual reports of China A50:

The Disposal constitutes a discloseable transaction of the Company under Chapter 14 of the Listing Rules, as one of the applicable percentage ratios exceeds 5% but is less than 25%.

In this announcement, unless the context otherwise requires, the following terms have the following meanings:

By Order of the Board

President and Chief Executive Officer

Hong Kong, 30 August 2016

As at the date hereof, the Board comprises Mr. Kwong Jimmy Cheung Tim, Ms. Lui Yuk Chu and Ms. Koon Ho Yan Candy as executive directors; Mr. Tse Wing Chiu Ricky and Mr. Lai Law Kau as non-executive directors; and Mr. Tsui Chun Kong, Mr. Jong Koon Sang and Mr. Hon Tam Chun as independent non-executive directors.