China Galaxy Securities : ANNOUNCEMENT COMPLETION OF PUBLIC ISSUANCE OF 2021 PERPETUAL SUBORDINATED BONDS (FIRST TRANCHE)

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

(Stock Code: 06881)

ANNOUNCEMENT

COMPLETION OF PUBLIC ISSUANCE OF 2021 PERPETUAL SUBORDINATED

BONDS (FIRST TRANCHE)

Reference is made to the circular of China Galaxy Securities Co., Ltd. (the "Company") dated 14 May 2020 and the announcement dated 29 June 2020. At the annual general meeting held on 29 June 2020, the board of directors of the Company (the "Board") has been authorized to issue perpetual subordinated bonds of not exceeding RMB15 billion (inclusive of RMB15 billion).

The Board is pleased to announce that in accordance with the above authorization by shareholders and upon approval by the China Securities Regulatory Commission, the Company has completed the public issuance of 2021 perpetual subordinated bonds (first tranche) (the "Perpetual Subordinated Bonds") on 29 March 2021. The issue size of the Perpetual Subordinated Bonds is RMB5 billion with the issue price of RMB100 per unit. The price of the Perpetual Subordinated Bonds shall be reset every five interest-accruing years (reset period), at the end of which the Company shall have the option to extend the term of the Perpetual Subordinated Bonds for another reset period (i.e. another five years), or to redeem the Perpetual Subordinated Bonds in full. The first reset period of the Perpetual Subordinated Bonds (the first five years) carries a coupon rate of 4.57%. The proceeds from the issuance of the Perpetual Subordinated Bonds will be used to replenish the working capital of the Company or to repay debt financing instruments of the Company that are due or sold back by investors.

By order of the Board

China Galaxy Securities Co., Ltd.

Chen Gongyan

Chairman and Executive Director

Beijing, the PRC

29 March 2021

As at the date of this announcement, the executive directors of the Company are Mr. CHEN Gongyan (Chairman) and Mr. CHEN Liang (Vice Chairman and President); the non-executive directors are Mr. LIU Dingping and Ms. XIAO Lihong; and the independent non-executive directors are Mr. LIU Ruizhong, Mr. WANG Zhenjun, Ms. LIU Chun and Mr. LAW Cheuk Kin Stephen.