Huarong Investment Stock : APPOINTMENT OF INDEPENDENT FINANCIAL ADVISER

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.

This announcement appears for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for securities of Huarong International Financial Holdings Limited or Huarong Investment Stock Corporation Limited.

This announcement is not for release, publication or distribution in or into any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction, nor is it a solicitation of any vote or approval in any jurisdiction.

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2277)

APPOINTMENT OF INDEPENDENT FINANCIAL ADVISER

This announcement is made pursuant to Rule 2.1 of the Code on Takeovers and Mergers published by the Securities and Futures Commission of Hong Kong.

Reference is made to the joint announcement (the "Joint Announcement") of Huarong Investment Stock Corporation Limited ("HRIV") and Huarong International Financial Holdings Limited ("HRIF") dated 6 July 2020 in relation to, inter alia , the proposed privatization of HRIV by HRIF by way of the Scheme involving the cancellation of the Scheme Shares, the restoration of the share capital of HRIV to the amount immediately before the cancellation of the Scheme Shares by means of the issuance of new HRIV Shares to HRIF or its wholly owned subsidiary (as the case may be), and the delisting of HRIV Shares from the Stock Exchange, on the terms and subject to the conditions set out in the Joint Announcement.

Capitalized terms used but not otherwise defined herein shall have the same respective meanings as ascribed to them in the Joint Announcement.

The HRIV Board hereby announces that, with the approval of the HRIV Independent Board Committee, Somerley Capital Limited ("Somerley"), a corporation licensed to carry out Type 1 (dealing in securities) and Type 6 (advising on corporate finance) regulated activities as defined under the SFO, has been appointed as the independent financial adviser to advise the HRIV Independent Board Committee and the Disinterested Shareholders in connection with the Proposal and the Scheme.

The letter of advice from Somerley in respect of the Proposal and the Scheme will be included in the Scheme Document to be despatched to the Scheme Shareholders.

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WARNING: The shareholders and potential investors of HRIV should exercise caution when dealing in the HRIV Shares or any options or other rights in respect of them. The implementation of the Proposal and the Scheme is subject to the satisfaction of the Conditions being fulfilled or waived, as applicable, and thus the Proposal may or may not be implemented and the Scheme may or may not become effective. Persons who are in doubt as to the action they should take should consult their licensed securities dealers or registered institutions in securities, bank manager, solicitor or other professional advisers.

By order of the Board

Huarong Investment Stock Corporation Limited

Yu Meng

Chairman

Hong Kong, 24 July 2020

As at the date of this announcement, the executive Directors are Mr. Yu Meng, Mr. Xu Xiaowu and Mr. Chen Qinghua; the non-executive Director is Ms. Wang Qi; and the independent non-executive Directors are Mr. Chan Kee Huen Michael, Mr. Tse Chi Wai and Dr. Lam Lee G.

The directors of the HRIV jointly and severally accept full responsibility for the accuracy of the information contained in this announcement and confirm, having made all reasonable enquiries, that to the best of their knowledge, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement the omission of which would make any statements in this announcement misleading.

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