According to an approval document issued by the Issuance Examination Committee of the China Securities Regulatory Commission (CSRC), the company plans to allot 45 mln bonds at a price of RMB 100 per bond, from 5 Sept 2008 to 6 Sept 2008. As the book value per bond is also RMB 100, the total value of the bonds to be issued amounts to RMB 4.5 bln, of which there will be RMB 3 bln worth of secured bonds and RMB 1.5 bln worth of unsecured bonds, both with maturities of five years.

Holders of the company's tradable A-shares of record on 4 Sept 2008 can exercise their preemptive right to subscribe online to secured bonds at an allotment rate of 100:0.0318 and to unsecured bonds at an allotment rate of 100:0.0239.

Natural persons, legal persons, securities investment fund companies and other investors who hold A-shares of the company can also subscribe to the newly-issued bonds online. Institutional investors can subscribe to the newly-issued bonds via conventional means.

The on-line subscription code of secured bonds for public investors, who can subscribe to no less than 10 newly-issued bonds, is ‘101688’ and the abbreviation is ‘08 Vanke G1’. The on-line subscription code of unsecured bonds is ‘101699’ and the abbreviation is ‘08 Vanke G2’.

Institutional investors can subscribe to bonds via conventional means, by submitting subscription forms to the sponsor. The lowest subscription amount is RMB 1 mln. China Construction Bank provides a joint liability guarantee on the bonds.

The record date for investors who intend to purchase newly-issued bonds is 4 Sept 2008. The sponsoring institution is CITIC Securities Co., Ltd.

The company, as the corporate bond issuer, is one of the largest listed companies which has been operating smoothly since it was founding and is very capable of paying the related interest on the bonds. In order to comply with the macro-control policies of the state, the company has formulated a systematic development plan to ensure its smooth operations.

As the company's bonds will undergo a trial period, investors are advised to exercise caution when dealing in the company's shares.

Board of Directors
2 Sept 2008


Source: Securities Times

Date: 2 Sept 2008

CN01/SC/LZ/BT/KM