Pacific Alliance China Land : PACL Interim Report

Pacific Alliance China Land Limited ("PACL" or the "Company"), an AIM-traded, closed-end investment company with a portfolio of investments including existing properties, new developments, distressed projects and real estate companies in Greater China, has today announced its financial results for the six months to 30 June 2016.

Highlights

• Net asset value as at 30 June 2016 was US$133.69 million, representing US$2.1704 per share, a 3.97% decrease from 31 December 2015 (US$234.8 million).

• On 30 June 2016, the Company's share price closed at US$1.88, representing a 2.3% decrease from 31 December 2015 and a 13.4% discount to the unaudited NAV per share.

• PACL's NAV and share price have both consistently outperformed major benchmark indices including the FTSE 350 Real Estate Index and the FTSE AIM All-Share Index since inception.

  Portfolio and Fund Developments

• The Company successfully exited two projects in the first of half of 2016. In the first quarter of 2016, the Company sold its 40% interest in Project Diplomat, together with its co- investor, to a local fund managed by CITIC Private Equity Fund Management Co., Ltd. The Company received net proceeds of US$84 million net of China taxes and transaction fees, representing a net IRR of 15.2%. The holdback of RMB35 million, of which the Company is entitled to 40%, is expected to be recovered by the end of 2016.

• In the first quarter of 2016, the Company also received gross cash proceeds of RMB248 million from the sale of its Walmart shares (one of the remaining assets of Project Malls), which are currently held by a joint venture owned by the Fund and China Resources, which is currently in liquidation. Once this is completed, the upper level joint venture will also be liquidated and the repatriation process can begin.

• With the proceeds from the two realizations, the Company announced a mandatory share repurchase with a total amount of US$96 million in June 2016. The Investment Manager will continue to manage the Company's remaining investment in order to maximize the Company's NAV.

Patrick Boot, Managing Director, Pacific Alliance Real Estate Limited commented that:

In the second half of 2016, we expect China's economy to further stabilize. We also expect the property market to continue to improve at a more measured pace, supported by favorable government policies. The Investment Manager will focus its efforts on realizing the Company's only remaining investment, Project Auspice (domestic shares of Wanda), to maximize value to shareholders.

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Pacific Alliance China Land Limited ("PACL") (AIM: PACL) is a closed-end investment company with net assets of US$133.69 million as at 30 June 2016. PACL was admitted to trading on the AIM Market of the London Stock Exchange in November 2007. PACL is focused on investing in a portfolio of existing properties, new developments, distressed projects and real estate companies in Greater China.

For more information about PACL, please visit: www.pacl-fund.com

Pacific Alliance China Land Limited is managed by a member of PAG, the Asian alternative investment fund management group. PAG is one of the region's largest Asia-focused alternative investment managers, with funds under management across private equity, real estate and absolute return strategies. Founded in 2002, PAG currently has US$16 billion in assets under management, with 380 staff across offices in Hong Kong, Shanghai, Tokyo, Beijing, Sydney, Singapore and Seoul.

For more information about PAG, please visit: www.pagasia.com

As of 30 June 2016, the net asset value (NAV) of Pacific Alliance China Land Limited (the "Company") was US$133.69 million, or US$2.1704 per share, representing a 3.97% decrease from 31 December 2015. The decrease was mainly due to additional tax on the realization proceeds from Project Diplomat and foreign exchange losses driven by recent renminbi ("RMB") depreciation.

China's GDP recorded 6.7% year-on-year growth in the first half of 2016, the lowest since 2009. Economic growth remains weak due to the overhang of excess capacity in the manufacturing sector. In order to meet its target annual GDP growth rate of 6.5% to 7% for 2016, the Chinese government continued its supportive efforts, implementing a series of accommodative monetary and fiscal policies, as well as property stimulus measures to boost the housing market which accounts for approximately 15% of the economy. We expect monetary policy easing to continue in the coming months, helping China maintain adequate liquidity and boosting consumer spending and capital investment, which in turn should help the economy stabilize in the second half of 2016.

China's housing market continued its recovery during the first half of 2016 across much of the country, particularly in the four tier-one cities (Beijing, Shanghai, Guangzhou and Shenzhen) and the major tier-two cities (Nanjing, Suzhou, Hangzhou, Hefei and Xiamen), where both transaction volumes and prices increased significantly. However, the recovery remains uneven as many smaller tier-three cities still face large inventories of unsold homes. We expect market sentiment to improve moderately during the second half of 2016, and the housing recovery to continue in tier-one and tier-two cities while many tier-three cities remain burdened with large inventory overhangs.

Since the Company's inception in November 2007, our investment strategy has delivered compound annual NAV growth of 9.5%. As most of the Company and its subsidiaries' (collectively, the "Fund") investments have been substantially realized, with only the domestic shares of Wanda remaining (Project Auspice), we will focus our efforts on exiting the last remaining asset to optimize its value and distribute all repatriated proceeds to shareholders. On behalf of the Board of Directors, I would like to thank you for your continued commitment and support.

Margaret Brooke Chairperson

On 30 June 2016, the Company's share price closed at US$1.88, representing a 2.3% decrease from 31 December 2015 and a 13.4% discount to the unaudited NAV per share. The Company's NAV and share price have both outperformed major benchmark indices including the FTSE 350 Real Estate Index and the FTSE AIM All-Share Index on a consistent basis since inception.

As at 30 June 2016, the Company held cash of US$74 million (of which US$68.6 million was held in RMB onshore pending repatriation), as well as investments with a cost of approximately US$30.2 million and a fair value of US$124.6 million.

1. The gross investment value includes an amount attributable to the PACL II shareholders.

2. Of the total cash of US$73.99 million, US$68.6 million of which are held as RMB in China banks.

The Company successfully exited two projects in the first of half of 2016. In the first quarter of 2016, the Company sold its 40% interest in Project Diplomat, together with its co-investor, to a local fund managed by CITIC Private Equity Fund Management Co., Ltd. The Company received net proceeds of US$84 million net of China taxes and transaction fees, representing a net IRR of 15.2%. The holdback of RMB35 million, of which the Company is entitled to 40%, is expected to be recovered by the end of 2016.