Beautiful China : Announcement Charge of Shares By Controlling Shareholder

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.

美麗中國控股有限公司

(incorporated in Bermuda with limited liability)

(Stock code: 706)

This announcement is made by Beautiful China Holdings Limited (the "Company") pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

Reference is made to the announcement of the Company dated 25 April 2014. The Company has been notified that, the share charge of the Company held by Leading Value Industrial Limited (a controlling shareholder of the Company) ("Leading Value") in favour of Chance Talent Management Limited have been released. Further, 2,362,930,000 shares in the issued share capital of the Company (the "Charged Shares") held by Leading Value have been charged on 26 October 2016 in favour of New Silkroad Investment Holdings Limited (the "Lender"), which is a wholly-owned subsidiary of China Huarong International Holdings Limited. The Charged Shares represent approximately 45% of the total issued share capital of the Company as at the date of this announcement. The above share charge does not fall within the scope of Rule 13.17 of the Listing Rules.

For and on behalf of

Executive Director

Hong Kong, 26 October 2016

As at the date of this announcement, the Board comprises Mr. Sze Wai Marco, Mr. Zhou Wei Feng, Mr. Tan Shu Jiang and Mr. Pan Tingxuan as executive Directors, Mr. Law Fei Shing and Mr. Chen Chun Tung, Jason as non-executive Directors, and Mr. Lum Pak Sum, Mr. Chong Yiu Kan, Sherman and Mr. Liu Liyang as independent non-executive Directors.