On 28 May 2008, a General Meeting of Shareholders of Bank of Beijing Co. Ltd (601169) approved the proposal regarding the company’s investment in Hebei-based Langfang City Commercial Bank Co. Ltd. Based on the share subscription agreement signed by the two companies, Bank of Beijing will buy 75 million new shares issued by Langfang City Commercial Bank Co. Ltd at RMB 1.7 per share. After the share purchase, Bank of Beijing will hold a 19.9% stake and become the largest shareholder. Pursuant to the share expansion, Bank of Beijing will have the right to subscribe to new shares on a pro rata basis.

The plan is still subject to the approval of relevant regulatory authorities. Should the proposal be approved, Bank of Beijing would become the first domestic city commercial bank to buy into a local commercial bank.

Source: Shanghai Securities News

Date: 29 May 2008

CN01/SW/MM