00998 中信银行债券及结构性产品：刊发发售通函 – 中信银行股份有限公司5,000,000,000美元中期票据计划

– 1 –

香港交易及结算所有限公司及香港联合交易所有限公司对本公告的内容概不负责，

对其准确性或完整性亦不发表任何声明，并明确表示，概不就因本公告全部或任何

部份内容而产生或因倚赖该等内容而引致的任何损失承担任何责任。

本公告仅供参考，并不构成收购、购买或认购本公告所述证券的邀请或要约。本公

告并不亦非旨在作为在美国境内出售任何本行（定义见下文）证券的要约或招揽购

买任何本行证券的要约。本公告所述证券未曾亦不会根据经修订的1933年《美国证

券法》（「证券法」）或美国任何州的证券法登记，亦不得于美国境内提呈发售及出售，

除非获豁免遵守或交易不受限于美国证券法的规定。本公告及其所含资料不得直

接或间接在或向美国境内进行分发。本公告所述证券并无且将不会于美国境内进

行公开发售。

本公告及其所述上市文件乃按香港联合交易所有限公司证券上市规则规定发布且

仅供参考，并不构成提呈出售任何证券的要约或招揽购买任何证券的要约。本公告

及其所述任何内容（包括上市文件）并非任何合约或承诺的依据。为免生疑，刊发本

公告及其所述上市文件不应被视为就香港法例第32章公司（清盘及杂项条文）条例

而言根据本行或其代表刊发的招股章程提出的证券发售要约，亦不构成就香港法

例第571章证券及期货条例所指其中载有向公众人士发出邀请以订立或建议订立有

关购买、出售、认购或包销证券的协议的广告、邀请或文件。

香港投资者敬请注意：本行确认该等票据（定义见下文）拟仅供专业投资者（定义见

香港联合交易所有限公司证券上市规则第37章）购买，该计划（定义见下文）已经及

该等票据（如将于香港联合交易所有限公司上市）将会按该基准于香港联合交易所

有限公司上市。因此，本行确认该等票据不适合作为香港散户的投资。投资者应审

慎考虑所涉及的风险。

刊发售通函

（在中华人民共和国注册成立的股份有限公司）

（股份代号：998）

（在中华人民共和国注册成立的股份有限公司）

（「本行」）

（股份代号：998）

5,000,000,000美元中期票据计划

（「该计划」）

– 2 –

本公告乃根据香港联合交易所有限公司（「香港联交所」）证券上市规则（「上市规则」）

第37.39A条刊发。

请参阅本公告随附日期为2025年7月21日有关该计划的发售通函（「发售通函」）。诚如

发售通函所披露，根据该计划发行的票据（「该等票据」）拟仅供专业投资者（定义见

上市规则第37章）购买，该计划已经及该等票据（如将于香港联合交易所有限公司上

市）将会按该基准于香港联交所上市。

发售通函并不构成向任何司法辖区的公众提呈出售任何证券的招股章程、通告、通

函、宣传册或广告，亦并非向公众发出邀请以就认购或购买任何证券作出要约，且

并非供传阅以邀请公众认购或购买任何证券之要约。

发售通函不得被视为认购或购买本行或本行任何分行的任何该等票据的劝诱，且

无意进行有关劝诱。

承董事会命

中信银行股份有限公司

方合英

董事长

2025年7月22日

于本公告日期，本行执行董事为方合英先生（董事长）、芦苇先生（行长）及胡罡先生；

非执行董事为黄芳女士及王彦康先生；及独立非执行董事为廖子彬先生、周伯文先

生、王化成先生及宋芳秀女士。

– 3 –

日期为2025年7月21日的发售通函

IMPORTANTNOTICE

THISOFERINGISAVAILABLEONLYTOINVESTORSWHOAREADRESESOUTSIDEOFTHE

UNITEDSTATESAND(INTHECASEOFNOTESOFEREDORSOLDINRELIANCEONCATEGORY2OF

REGULATIONS)ARENOTU.S.PERSONS.

IMPORTANT:Youmustreadthefolowingdisclaimerbeforecontinuing.Thefolowingdisclaimerapliestothe

atachedoferingcircular(the“OferingCircular”).Youareadvisedtoreadthisdisclaimercarefulybeforeacesing,

readingormakinganyotheruseoftheOferingCircular.InacesingtheOferingCircular,youagretobeboundby

thefolowingtermsandconditions,includinganymodificationstothemfromtimetotime,eachtimeyoureceiveany

informationfromusasaresultofsuchaces.

Confirmationofyourepresentation:TheOferingCircularisbeingsentoyouatyourequest,andbyaceptingthe

e-mailandacesingtheatachedocument,youshalbedemedtorepresentoChinaCITICBankCorporation

Limited中信银行股份有限公司(the“Bank”)oranybranchoftheBankaspecifiedintherelevantPricing

Suplement(eacha“BranchIsuer”and,togetherwiththeBank,the“Isuers”andeachan“Isuer”)andChina

CITICBankInternationalLimited(the“Aranger”)that(1)youandanycustomersyourepresentarenotU.S.persons

(asdefinedinRegulationSundertheU.S.SecuritiesActof1933,asamended(the“SecuritiesAct”)andthathe

e-mailadresthatyougaveusandtowhichthise-mailhasbendeliveredisnotlocatedintheUnitedStates,its

teritoriesorposesions,and(2)thatyouconsentothedeliveryoftheatachedandanyamendmentsorsuplements

theretobyelectronictransmision.

Theatachedocumenthasbenmadeavailabletoyouinelectronicform.Youareremindedthatdocuments

transmitedviathismediumaybealteredorchangeduringtheprocesoftransmisionandconsequentlynoneofthe

Bank,theIsuers,theAranger,thedealersnamedherein(the“Dealers”),theagentsnamedherein(the“Agents”)nor

theirespectiveafiliatesandtheirespectivedirectors,oficers,employes,representatives,agentsandeachperson

whocontrolstheBank,theIsuers,theAranger,aDealer,anAgentortheirespectiveafiliatesaceptsanyliability

oresponsibilitywhatsoeverinrespectofanydiscrepanciesbetwenthedocumentdistributedtoyouinelectronic

formatandthehardcopyversionavailabletoyouonrequestfromtheArangerorDealers.

THESECURITIESHAVENOTBEN,ANDWILNOTBE,REGISTEREDUNDERTHESECURITIESACT,

ORTHESECURITIESLAWSOFANYSTATEOFTHEUNITEDSTATESOROTHERJURISDICTIONAND

THESECURITIESMAYNOTBEOFEREDORSOLDOR(INTHECASEOFSECURITIESINBEARER

FORM)DELIVEREDWITHINTHEUNITEDSTATESOR(INTHECASEOFNOTESBEINGSOLDOR

OFEREDINRELIANCEONCATEGORY2OFREGULATIONS)TO,ORFORTHEACOUNTOR

BENEFITOF,U.S.PERSONSEXCEPTPURSUANTOANEXEMPTIONFROM,ORINATRANSACTION

NOTSUBJECTO,THEREGISTRATIONREQUIREMENTSOFTHESECURITIESACTANDAPLICABLE

STATEORLOCALSECURITIESLAWS.THISOFERINGISMADESOLELYTONON-U.S.PERSONSIN

OFSHORETRANSACTIONSPURSUANTOREGULATIONSUNDERTHESECURITIESACT.

NothinginthiselectronictransmisionconstitutesanoferoraninvitationbyoronbehalfoftheBank,theIsuers,the

ArangerortheDealerstosubscribefororpurchaseanyofthesecuritiesdescribedtherein,andaceshasbenlimited

sothatitshalnotconstituteintheUnitedStatesorelsewheredirectedselingeforts(withinthemeaningof

RegulationSundertheSecuritiesAct).Ifajurisdictionrequiresthatheoferingbemadebyalicensedbrokeror

dealerandanArangeroraDealeroranyafiliateofitisalicensedbrokerordealerinthatjurisdiction,theofering

shalbedemedtobemadebyitorsuchafiliateonbehalfoftheIsuersinsuchjurisdiction.

YouareremindedthatyouhaveacesedtheOferingCircularonthebasisthatyouareapersonintowhoseposesion

theOferingCircularmaybelawfulydeliveredinacordancewiththelawsofthejurisdictioninwhichyouare

locatedandyoumaynotnorareyouauthorisedtodeliverthisdocument,electronicalyorotherwise,toanyother

person.Ifyouhavegainedacestothistransmisioncontrarytotheforegoingrestrictions,youarenotalowed

topurchaseanyofthesecuritiesdescribedintheatached.

Actionsthatyoumaynotake:Ifyoureceivethisdocumentbye-mail,youshouldnotreplybye-mailtothis

document,andyoumaynotpurchaseanysecuritiesbydoingso.Anyreplye-mailcomunications,includingthoseyou

generatebyusingthe“Reply”functiononyoure-mailsoftware,wilbeignoredorejected.

YOUARENOTAUTHORISEDTOANDYOUMAYNOTFORWARDORDELIVERTHEOFERING

CIRCULAR,ELECTRONICALYOROTHERWISE,TOANYOTHERPERSONOREPRODUCESUCH

OFERINGCIRCULARINANYMANERWHATSOEVER.ANYFORWARDING,DISTRIBUTIONOR

REPRODUCTIONOFTHEOFERINGCIRCULARINWHOLEORINPARTISUNAUTHORISED.FAILURE

TOCOMPLYWITHTHISDIRECTIVEMAYRESULTINAVIOLATIONOFTHESECURITIESACTORTHE

APLICABLELAWSOFOTHERJURISDICTIONS.

Youareresponsibleforprotectingagainstvirusesandotherdestructiveitems.Ifyoureceivethisdocumentby

e-mail,youruseofthise-mailisatyourownriskanditisyouresponsibilitytotakeprecautionstoensurethatitis

frefromvirusesandotheritemsofadestructivenature.

CHINACITICBANKCORPORATIONLIMITED

中信银行股份有限公司

(ajointstockcompanyincorporatedinthePeople’sRepublicofChinawithlimitedliability)

(HongKongStockExchangeStockCode:00998;

ShanghaiStockExchangeStockCode:601998)

U.S.$5,000,000,000

MediumTermNotePrograme

UndertheMediumTermNotePrograme(the“Programe”),ChinaCITICBankCorporationLimited中信银行股份有限公司(the“Bank”)oranybranchoftheBank

aspecifiedintherelevantPricingSuplement(asdefinedbelow)(a“BranchIsuer”andtogetherwiththeBank,the“Isuers”andeachan“Isuer”),subjecto

compliancewithalrelevantlaws,regulationsandirectives,mayfromtimetotimeisuenotes(the“Notes”)denominatedinanycurencyagredbetwentherelevant

IsuerandtherelevantDealer(asdefinedbelow).

Notesmaybeisuedinbeareroregisteredform(respectively,“BearerNotes”and“RegisteredNotes”).ThemaximumagregatenominalamountofalNotesfrom

timetotimeoutstandingundertheProgramewilnotexcedU.S.$5,000,000,000(oritsequivalentinothercurenciescalculatedasdescribedintheDealerAgrement

describedherein),subjectoincreaseasdescribedherein.

TheNotesmaybeisuedonacontinuingbasistoneormoreoftheDealerspecifiedunder“SumaryofthePrograme”andanyaditionalDealerapointedunder

theProgramefromtimetotimebytheBank(eacha“Dealer”andtogetherthe“Dealers”),whichapointmentmaybeforaspecificisueoronanongoingbasis.

ReferencesinthisOferingCirculartothe“relevantDealer”shal,inthecaseofanisueofNotesbeing(orintendedtobe)subscribedbymorethanoneDealer,beto

alDealersagreingtosubscribesuchNotes.

AplicationhasbenmadetoTheStockExchangeofHongKongLimited(the“HongKongStockExchange”)forthelistingoftheProgramebywayofdebtisuesto

profesionalinvestors(asdefinedinChapter37oftheRulesGoverningtheListingofSecuritiesonTheStockExchangeofHongKongLimited(“Profesional

Investors”)onlyduringthe12-monthperiodafterthedateofthisOferingCircularontheHongKongStockExchange.ThisOferingCircularisfordistributionto

ProfesionalInvestorsonly.

NoticetoHongKonginvestors:TheIsuerconfirmsthatheNotestobeisuedundertheProgrameareintendedforpurchasebyProfesionalInvestorsonly

andtheProgrameandtheNotes(tothextentsuchNotesaretobelistedontheHongKongStockExchange)wilbelistedontheHongKongStockExchange

onthatbasis.Acordingly,theIsuerconfirmsthatheNotesarenotapropriateasaninvestmentforetailinvestorsinHongKong.Investorshouldcarefuly

considertherisksinvolved.

TheHongKongStockExchangehasnotreviewedthecontentsofthisOferingCircular,otherthantoensurethatheprescribedformdisclaimerand

responsibilitystatements,andastatementlimitingdistributionofthisOferingCirculartoProfesionalInvestorsonlyhavebenreproducedinthisOfering

Circular.ListingoftheProgrameortheNotesontheHongKongStockExchangeisnotobetakenasanindicationofthecomercialmeritsorcreditquality

ofthePrograme,theNotes,theIsuer,theBankortheGrouporqualityofdisclosureinthisdocument.HongKongExchangesandClearingLimitedandthe

HongKongStockExchangetakenoresponsibilityforthecontentsofthisOferingCircular,makenorepresentationastoitsacuracyorcompletenesandexpresly

disclaimanyliabilitywhatsoeverforanyloshowsoeverarisingfromorinrelianceuponthewholeoranypartofthecontentsofthisOferingCircular.

WhereaplicableforarelevantTranche(asdefinedunder“TermsandConditionsoftheNotes”)ofNotes,theNoteswilbeisuedwithintherelevantforeigndebt

isuancequotagrantedtotheBankoritsafiliatebytheNationalDevelopmentandReformComisionofthePRC(the“NDRC”)andregistrationwilbecompletedor

causedtobecompletedbytheBankwiththeNDRCpursuantotheAdministrativeMeasuresforExaminationandRegistrationofMedium-andLong-termForeignDebt

ofEnterprises(企业中长期外债审核登记管理办法(国家发展和改革委员会令第56号)isuedbytheNDRCandefectiveasof10February2023andanyimplementation

rules,regulations,certificates,circularsornoticesinconectiontherewithasisuedbytheNDRCfromtimetotime(the“NDRCAdministrativeMeasures”).Afterthe

isuanceofsuchrelevantTrancheofNotes,theBankintendstoprovideorcausetobeprovidedtherequisiteinformationandocumentsontheisuanceofsuchNotesto

theNDRCwithinthetimeperiodasrequiredbytheNDRC.

NoticeoftheagregatenominalamountofNotes,interest(ifany)payableinrespectofNotes,theisuepriceofNotesandanyothertermsandconditionsnotcontained

hereinwhichareaplicabletoeachTrancheofNoteswilbesetoutinapricingsuplement(the“PricingSuplement”).

ThelanguageofthisOferingCircularisEnglish.Certainlegislativereferencesandtechnicaltermshavebencitedintheiroriginalanguageinorderthathecorect

technicalmeaningmaybeascribedtothemunderaplicablelaw.

TheProgrameprovidesthatNotesmaybelistedoradmitedtotrading,asthecasemaybe,onsuchotherstockexchangesormarketsasmaybeagredbetwenthe

relevantIsuerandtherelevantDealers.TherelevantIsuermayalsoisueunlistedNotes.

TheNoteshavenotbenandwilnotberegisteredundertheUnitedStatesSecuritiesActof1933,asamended(the“SecuritiesAct”),andmaynotbeoferedorsold

withintheUnitedStatesor(inthecaseofNotesoferedorsoldinrelianceonCategory2ofRegulationS)to,orfortheacountorbenefitof,U.S.persons,except

pursuantoanexemptionfrom,orinatransactionotsubjecto,theregistrationrequirementsoftheSecuritiesAct.Foradescriptionoftheseandcertainfurther

restrictionsonofersandsalesoftheNotesandthedistributionofthisOferingCircular,se“SubscriptionandSale”below.

EachTrancheofNotesofeachSeries(asdefinedin“FormoftheNotes”)inbearerformwilberepresentedonisuebyatemporaryglobalnoteinbearerform(eacha

“TemporaryBearerGlobalNote”or“TemporaryGlobalNote”)orapermanentglobalnoteinbearerform(eacha“PermanentBearerGlobalNote”or“Permanent

GlobalNote”).Notesinregisteredformwilinitialyberepresentedbyaglobalnoteinregisteredform(eacha“RegisteredGlobalNote”or“GlobalCertificate”and,

togetherwithanyTemporaryBearerGlobalNotesandPermanentBearerGlobalNotes,the“GlobalNotes”andeacha“GlobalNote”).RegisteredGlobalNoteswilbe

registeredinthenameof,orinthenameofanominefor,oneormoreclearingsystems.GlobalNotesmaybedepositedontheisuedatewithacomondepositaryfor

EuroclearBankSA/NV(“Euroclear”)andClearstreamBankingS.A.(“Clearstream”).GlobalNotesmayalsobedepositedwithasub-custodianfortheHongKong

MonetaryAuthority(the“HKMA”),asoperatoroftheCentralMoneymarketsUnitService,operatedbytheHKMA(the“CMU”).Theprovisionsgoverningthexchange

ofinterestsinGlobalNotesforotherGlobalNotesandefinitiveNotesaredescribedin“FormoftheNotes”.

TherelevantIsuermayagrewithanyDealerthatheNotesmaybeisuedinaformnotcontemplatedbythetermsandconditionsoftheNotesetouthereinunder

“TermsandConditionsoftheNotes”(the“TermsandConditionsoftheNotes”),inwhichevent(inthecaseofNotesintendedtobelistedontheHongKongStock

Exchange)asuplementaloferingcircular,ifapropriate,wilbemadeavailablewhichwildescribethefectoftheagrementreachedinrelationtosuchNotes.

TheBankhasbenratedBa2byMody’sInvestorsService,Inc.(“Mody’s”),A-byS&PGlobalRatings(“S&P”)andB+byFitchRatingsLtd.(“Fitch”).The

ProgramehasbenratedA-byS&P.NotesisuedundertheProgramemayberatedorunrated.WhereanisueofacertainseriesofNotesisrated,itsratingwilnot

necesarilybethesameastheratingaplicabletothePrograme,and(whereaplicable)suchratingwilbespecifiedintherelevantPricingSuplement.Aratingis

notarecomendationtobuy,selorholdsecuritiesandmaybesubjectosuspension,changeorwithdrawalatanytimebytheasigningratingagency.Asuspension,

reductionorwithdrawaloftheratingasignedtotheNotesmayadverselyafecthemarketpriceoftheNotes.

InvestinginNotesisuedundertheProgrameinvolvescertainrisksandmaynotbesuitableforalinvestors.Investorshouldhavesuficientknowledgeand

experienceinfinancialandbusinesmaterstoevaluatetheinformationcontainedinthisOferingCircularandintheaplicablePricingSuplementandthe

meritsandrisksofinvestinginaparticularisueoftheNotesinthecontextoftheirfinancialpositionandparticularcircumstances.Investorsalsoshouldhave

thefinancialcapacitytobeartherisksasociatedwithaninvestmentinNotes.InvestorshouldnotpurchaseNotesunlestheyunderstandandareabletobear

risksasociatedwiththeNotes.InvestorshouldbeawarethatherearevariousotherisksrelatingtotheNotes,theIsuers,theBankanditsubsidiaries,

theirbusinesandtheirjurisdictionsofoperationswhichinvestorshouldfamiliarisethemselveswithbeforemakinganinvestmentintheNotes.Se“Risk

Factors”beginingonpage13foradiscusionofcertainfactorstobeconsideredinconectionwithaninvestmentintheNotes.

ArangerandDealer

ChinaCITICBankInternational

ThedateofthisOferingCircularis21July2025.

IMPORTANTNOTICE

TheBank,havingmadealreasonablenquiries,confirmsthat,tothebestofitsknowledgeand

belief:(i)thisOferingCircularcontainsalinformationwithrespectotheBankandits

subsidiariestakenasawhole(the“Group”)andtotheNoteswhichismaterialinthecontextof

theisueandoferingoftheNotes(includingalinformationwhich,acordingtotheparticular

natureoftheBankandoftheNotes,isnecesarytoenableinvestorstomakeaninformed

asesmentoftheasetsandliabilities,financialposition,profitsandlosesandprospectsofthe

GroupandoftherightsatachingtotheNotes);(i)thestatementscontainedhereinrelatingto

theBank,theGroupandtheNotesareineverymaterialrespectrueandacurateandnot

misleading;and(i)therearenotherfactsinrelationtotheBank,theGrouportheNotes,the

omisionofwhichwould,inthecontextoftheisueandoferingoftheNotes,makeany

statementinthisOferingCircularmisleadinginanymaterialaspect.

ThisOferingCircularincludesparticularsgivenincompliancewiththeRulesGoverningthe

ListingofSecuritiesonTheStockExchangeofHongKongLimitedforthepurposeofgiving

informationwithregardtotheIsuerandtheBankandtheGroup.EachoftheIsuerandthe

BankaceptsfulresponsibilityfortheacuracyoftheinformationcontainedinthisOfering

Circularandconfirms,havingmadealreasonablenquiries,thatothebestofitsknowledge

andbelieftherearenotherfactstheomisionofwhichwouldmakeanystatementherein

misleading.

NopersonisorhasbenauthorisedbytheIsuersortheBanktogiveanyinformationorto

makeanyrepresentationsotherthanthosecontainedinthisOferingCircularinconectionwith

theProgrameortheNotesand,ifgivenormade,suchinformationorepresentationsmustnot

berelieduponashavingbenauthorisedbytheIsuers,theBank,theArangerortheDealersor

anyoftheirespectivedirectors,oficers,employes,agents,representativesorafiliates.

TheArangerandtheDealershavenotseparatelyverifiedtheinformationcontainedinthis

OferingCirculartothefulestextentpermitedbylaw.NoneoftheArangerortheDealersor

anyoftheirespectivedirectors,oficers,employes,agents,representativesorafiliatesmakes

anyrepresentation,warantyorundertaking,expresorimplied,oraceptsanyresponsibility,

withrespectotheacuracyorcompletenesofanyoftheinformationinthisOferingCircular.

Tothefulestextentpermitedbylaw,noneoftheArangerortheDealersoranyoftheir

respectivedirectors,oficers,employes,agents,representativesorafiliatesaceptsany

responsibilityforthecontentsofthisOferingCircular.EachoftheArangerandtheDealersor

anyoftheirespectivedirectors,oficers,employes,agents,representativesorafiliates

acordinglydisclaimsalandanyliability,whetherarisingintortorcontractorotherwise(save

asreferedtoabove)whichitmightotherwisehaveinrespectofthisOferingCircularorany

suchstatement.NeitherthisOferingCircularnoranyfinancialstatementsincludedor

incorporatedhereinareintendedtoprovidethebasisofanycreditorotherevaluation,and

shouldnotbeconsideredasarecomendationbyanyoftheIsuers,theBank,theArangeror

theDealersoranyoftheirespectivedirectors,oficers,employes,agents,representativesor

afiliatesthatanyrecipientofthisOferingCircularoranysuchfinancialstatementshould

purchasetheNotes.EachpotentialpurchaserofNoteshouldetermineforitselftherelevance

oftheinformationcontainedinthisOferingCircularandmakeitsownindependent

investigationofthefinancialconditionandafairs,anditsownapraisalofthecreditworthines,

–i–

oftherelevantIsuer,theBankandtherisksinvolved.ThepurchaseofNotesbyinvestors

shouldbebasedupontheirinvestigation,astheydemnecesary.NoneoftheArangernorthe

Dealersoranyoftheirespectivedirectors,oficers,employes,agents,representativesor

afiliatesundertakestoreviewthefinancialconditionorafairsoftheIsuers,theBankandthe

GroupduringthelifeofthearangementscontemplatedbythisOferingCircular,nortoadvise

anyinvestororpotentialinvestorintheNotesofanyinformationcomingtotheatentionofany

oftheArangerortheDealersoranyoftheirespectivedirectors,oficers,employes,agents,

representativesorafiliates.

NeitherthisOferingCircularnoranyotherinformationsupliedinconectionwiththe

ProgrameortheisueofanyNotesconstitutesanoferorinvitationbyoronbehalfofthe

relevantIsuer,theBank,anyoftheArangerortheDealersoranyoftheirespectivedirectors,

oficers,employes,agents,representativesorafiliatestoanypersontosubscribefororto

purchaseanyNotes.

NeitherthedeliveryofthisOferingCircularoranyPricingSuplementnortheofering,saleor

deliveryofanyNoteshalinanycircumstancesimplythatheinformationcontainedherein

concerningtherelevantIsuerortheBankiscorectatanytimesubsequentothedatehereof,

orthatanyotherinformationsupliedinconectionwiththeProgrameiscorectasofany

timesubsequentothedateindicatedinthedocumentcontainingthesame.TheArangerandthe

Dealersoranyoftheirespectivedirectors,oficers,employes,agents,representativesor

afiliatesexpreslydonotundertaketoreviewthefinancialconditionorafairsoftheIsuersor

theBankduringthelifeoftheProgrameortoadviseanyinvestorintheNotesofany

informationcomingtotheiratention.Investorshouldreview,interalia,themostrecently

publishedocumentsincorporatedbyreferenceintothisOferingCircularwhendeciding

whetherornotopurchaseanyNotes.

INCONECTIONWITHTHEISUEOFANYTRANCHEOFNOTES,THEDEALEROR

DEALERS(IFANY)NAMEDASTHESTABILISATIONMANAGER(S)(ORPERSON(S)

ACTINGONBEHALFOFANYSTABILISATIONMANAGER(S)INTHEAPLICABLE

PRICINGSUPLEMENTMAYOVER-ALOTNOTESOREFECTRANSACTIONS

WITHAVIEWTOSUPORTINGTHEPRICEOFTHENOTESOFTHESERIESATA

LEVELHIGHERTHANTHATWHICHMIGHTOTHERWISEPREVAILFORA

LIMITEDPERIODAFTERTHEISUEDATEOFTHERELEVANTRANCHEOF

NOTES.HOWEVER,STABILISATIONMAYNOTNECESARILYOCUR.ANY

STABILISATIONACTIONMAYBEGINONORAFTERTHEDATEONWHICH

ADEQUATEPUBLICDISCLOSUREOFTHETERMSOFTHEOFEROFTHE

RELEVANTRANCHEOFNOTESISMADEAND,IFBEGUN,MAYCEASEATANY

TIME,BUTITMUSTENDNOLATERTHANTHEARLIEROF30DAYSAFTERTHE

ISUEDATEOFTHERELEVANTRANCHEOFNOTESAND60DAYSAFTERTHE

DATEOFTHEALOTMENTOFTHERELEVANTRANCHEOFNOTES.ANY

STABILISATIONACTIONOROVER-ALOTMENTMUSTBECONDUCTEDBYTHE

RELEVANTSTABILISATIONMANAGER(S)(ORPERSON(S)ACTINGONBEHALFOF

ANYSTABILISATIONMANAGER(S)INACORDANCEWITHALAPLICABLE

LAWSANDRULES.

–i–

TheNoteshavenotbenandwilnotberegisteredundertheU.S.SecuritiesActof1933,as

amended(the“SecuritiesAct”),andBearerNotesaresubjectoU.S.taxlawrequirements.

Subjectocertainexceptions,theNotesmaynotbeofered,soldor(inthecaseofBearerNotes)

deliveredwithintheUnitedStatesor(inthecaseofNotesoferedorsoldinrelianceon

Category2ofRegulationS)to,orfortheacountorbenefitof,U.S.persons(asdefinedin

RegulationSundertheSecuritiesAct).Forafurtherdescriptionofcertainrestrictionsonthe

oferingandsaleoftheNotesandondistributionofthisOferingCircular,se“Subscription

andSale”andtheaplicablePricingSuplement.

Noticetocapitalmarketintermediariesandprospectiveinvestorspursuantoparagraph21

oftheHongKongSFCodeofConduct–ImportantNoticetoProspectiveInvestors

Prospectiveinvestorshouldbeawarethatcertainintermediariesinthecontextofcertain

oferingsofNotespursuantothisPrograme(eachsuchofering,a“CMIOfering”),

includingcertainDealers,maybe“capitalmarketintermediaries”(together,the“CMIs”)subject

toParagraph21oftheCodeofConductforPersonsLicensedbyorRegisteredwiththe

SecuritiesandFuturesComision(the“SFCode”).Thisnoticetoprospectiveinvestorsisa

sumaryofcertainobligationstheSFCodeimposesonsuchCMIs,whichrequiretheatention

andcoperationofprospectiveinvestors.CertainCMIsmayalsobeactingas“overal

cordinators”(together,the“OCs”)foraCMIOferingandaresubjectoaditional

requirementsundertheSFCode.Theaplicationoftheseobligationswildependonthe

role(s)undertakenbytherelevantDealer(s)inrespectofeachCMIOfering.

Prospectiveinvestorswhoarethedirectors,employesormajorshareholdersoftherelevant

Isuer,aCMIoritsgroupcompanieswouldbeconsideredundertheSFCodeashavingan

asociation(“Asociation”)withtherelevantIsuer,theCMIortherelevantgroupcompany.

ProspectiveinvestorsasociatedwiththerelevantIsueroranyCMI(includingitsgroup

companies)shouldspecificalydisclosethiswhenplacinganorderfortherelevantNotesand

shouldisclose,athesametime,ifsuchordersmaynegativelyimpacthepricediscovery

procesinrelationtotherelevantCMIOfering.Prospectiveinvestorswhodonotdisclosetheir

Asociationsareherebydemednotobesoasociated.Whereprospectiveinvestorsdisclose

theirAsociationsbutdonotdisclosethatsuchordermaynegativelyimpacthepricediscovery

procesinrelationtotherelevantCMIOfering,suchorderisherebydemednotonegatively

impacthepricediscoveryprocesinrelationtotherelevantCMIOfering.

Prospectiveinvestorshouldensure,andbyplacinganorderprospectiveinvestorsaredemedto

confirm,thatordersplacedarebonafide,arenotinflatedandonotconstituteduplicatedorders

(i.e.twormorecorespondingoridenticalordersplacedviatwormoreCMIs).Arebatemay

beoferedbytherelevantIsuertoalprivatebanksfororderstheyplace(otherthaninrelation

toNotesubscribedbysuchprivatebanksasprincipalwherebyitisdeployingitsownbalance

shetforonwardselingtoinvestors),payableuponclosingoftherelevantCMIOferingbased

ontheprincipalamountoftheNotesdistributedbysuchprivatebankstoinvestors.Private

banksaredemedtobeplacinganorderonaprincipalbasisunlestheyinformtheCMIs

otherwise.Asaresult,privatebanksplacinganorderonaprincipalbasis(includingthose

demedasplacinganorderasprincipal)wilnotbentitledto,andwilnotbepaid,therebate.

DetailsofanysuchrebatewilbesetoutintheaplicablePricingSuplementorotherwise

notifiedtoprospectiveinvestors.Ifaprospectiveinvestorisanasetmanagementarmafiliated

–i–

withanyrelevantDealer,suchprospectiveinvestorshouldindicatewhenplacinganorderifitis

forafundorportfoliowheretherelevantDealeroritsgroupcompanyhasmorethan50per

cent.interest,inwhichcaseitwilbeclasifiedasa“proprietaryorder”andsubjecto

apropriatehandlingbyCMIsinacordancewiththeSFCodeandshouldisclose,athesame

time,ifsuch“proprietaryorder”maynegativelyimpacthepricediscoveryprocesinrelationto

therelevantCMIOfering.Prospectiveinvestorswhodonotindicatethisinformationwhen

placinganorderareherebydemedtoconfirmthatheirorderisnota“proprietaryorder”.Ifa

prospectiveinvestorisotherwiseafiliatedwithanyrelevantDealer,suchthatitsordermaybe

consideredtobea“proprietaryorder”(pursuantotheSFCode),suchprospectiveinvestor

shouldindicatetotherelevantDealerwhenplacingsuchorder.Prospectiveinvestorswhodonot

indicatethisinformationwhenplacinganorderareherebydemedtoconfirmthatheirorderis

nota“proprietaryorder”.Whereprospectiveinvestorsdisclosesuchinformationbutdonot

disclosethatsuch“proprietaryorder”maynegativelyimpacthepricediscoveryprocesin

relationtotherelevantCMIOfering,such“proprietaryorder”isherebydemednoto

negativelyimpacthepricediscoveryprocesinrelationtotherelevantCMIOfering.

ProspectiveinvestorshouldbeawarethatcertaininformationmaybedisclosedbyCMIs

(includingprivatebanks)whichispersonaland/orconfidentialinaturetotheprospective

investor.Byplacinganorder,prospectiveinvestorsaredemedtohaveunderstodand

consentedtothecolection,disclosure,useandtransferofsuchinformationbytherelevant

Dealersand/oranyotherthirdpartiesasmayberequiredbytheSFCode,includingtothe

relevantIsuer,anyOCs,relevantregulatorsand/oranyotherthirdpartiesasmayberequiredby

theSFCode,itbeingunderstodandagredthatsuchinformationshalonlybeusedforthe

purposeofcomplyingwiththeSFCode,duringthebokbuildingprocesfortherelevantCMI

Ofering.Failuretoprovidesuchinformationmayresultinthatorderbeingrejected.

IMPORTANT–EARETAILINVESTORS–IfthePricingSuplementinrespectofany

Notesincludesalegendentitled“ProhibitionofsalestoEARetailInvestors”,theNotesarenot

intendedtobeofered,soldorotherwisemadeavailabletoandshouldnotbeofered,soldor

otherwisemadeavailabletoanyretailinvestorintheEuropeanEconomicArea(“EA”).For

thesepurposes,aretailinvestormeansapersonwhoisone(ormore)of:(i)aretailclientas

definedinpoint(11)ofArticle4(1)ofDirective2014/65/EU(asamended,“MiFIDI”)or(i)a

customerwithinthemeaningofDirective(EU)2016/97(the“InsuranceDistribution

Directive”),wherethatcustomerwouldnotqualifyasaprofesionalclientasdefinedinpoint

(10)ofArticle4(1)ofMiFIDI;or(i)notaqualifiedinvestorasdefinedinDirective

Regulation(EU)2017/1129(the“ProspectusRegulation”).Consequentlynokeyinformation

documentrequiredbyRegulation(EU)No.1286/2014(asamended,the“PRIPsRegulation”)

foroferingorselingtheNotesorotherwisemakingthemavailabletoretailinvestorsinthe

EAhasbenpreparedandthereforeoferingorselingtheNotesorotherwisemakingthem

availabletoanyretailinvestorintheEAmaybeunlawfulunderthePRIPsRegulation.

IMPORTANT–UKRETAILINVESTORS–IfthePricingSuplementinrespectofanyNotes

includesalegendentitled“ProhibitionofsalestoUKRetailInvestors”,theNotesarenot

intendedtobeofered,soldorotherwisemadeavailabletoandshouldnotbeofered,soldor

otherwisemadeavailabletoanyretailinvestorintheUnitedKingdom(“UK”).Forthese

purposes,aretailinvestormeansapersonwhoisone(ormore)of:(i)aretailclient,asdefined

inpoint(8)ofArticle2ofRegulation(EU)No2017/565asitformspartofdomesticlawby

–iv–

virtueoftheEuropeanUnion(Withdrawal)Act2018(“EUWA”);or(i)acustomerwithinthe

meaningoftheprovisionsoftheFinancialServicesandMarketsAct2000(“FSMA”)andany

rulesoregulationsmadeundertheFSMAtoimplementDirective(EU)2016/97,wherethat

customerwouldnotqualifyasaprofesionalclient,asdefinedinpoint(8)ofArticle2(1)of

Regulation(EU)No600/2014asitformspartofdomesticlawbyvirtueoftheEUWA;or(i)

notaqualifiedinvestorasdefinedinArticle2ofRegulation(EU)2017/1129asitformspartof

domesticlawbyvirtueoftheEUWA.Consequentlynokeyinformationdocumentrequiredby

Regulation(EU)No1286/2014asitformspartofdomesticlawbyvirtueoftheEUWA(the

“UKPRIPsRegulation”)foroferingorselingtheNotesorotherwisemakingthemavailable

toretailinvestorsintheUKhasbenpreparedandthereforeoferingorselingtheNotesor

otherwisemakingthemavailabletoanyretailinvestorintheUKmaybeunlawfulundertheUK

PRIPsRegulation.

MiFIDIproductgovernance/targetmarket–ThePricingSuplementinrespectofanyNotes

mayincludealegendentitled“MiFIDIProductGovernance”whichwiloutlinethetarget

marketasesmentinrespectoftheNotesandwhichchanelsfordistributionoftheNotesare

apropriate.Anypersonsubsequentlyofering,selingorecomendingtheNotes(a

“distributor”)shouldtakeintoconsiderationsuchtargetmarket;however,adistributorsubject

toMiFIDIisresponsibleforundertakingitsowntargetmarketasesmentinrespectofthe

Notes(byeitheradoptingorefiningthetargetmarketasesment)andeterminingapropriate

distributionchanels.

Adeterminationwilbemadeinrelationtoeachisueaboutwhether,forthepurposeofthe

MiFIDProductGovernancerulesunderEUDelegatedDirective2017/593(the“MiFIDProduct

GovernanceRules”),anyDealersubscribingforanyNotesisamanufacturerinrespectofsuch

Notes,butotherwiseneithertheArangernortheDealersnoranyoftheirespectiveafiliates

wilbeamanufacturerforthepurposeoftheMiFIDProductGovernanceRules.

UKMiFIRproductgovernance/targetmarket–ThePricingSuplementinrespectofany

Notesmayincludealegendentitled“UKMiFIRproductgovernance”whichwiloutlinethe

targetmarketasesmentinrespectoftheNotesandwhichchanelsfordistributionofthe

Notesareapropriate.Anypersonsubsequentlyofering,selingorecomendingtheNotes(a

“distributor”)shouldtakeintoconsiderationthetargetmarketasesment;however,a

distributorsubjectotheFCAHandbokProductInterventionandProductGovernance

Sourcebok(the“UKMiFIRProductGovernanceRules”)isresponsibleforundertakingits

owntargetmarketasesmentinrespectoftheNotes(byeitheradoptingorefiningthetarget

marketasesment)andeterminingapropriatedistributionchanels.

Adeterminationwilbemadeinrelationtoeachisueaboutwhether,forthepurposeoftheUK

MiFIRProductGovernanceRules,anyDealersubscribingforanyNotesisamanufacturerin

respectofsuchNotes,butotherwiseneithertheArangernortheDealersnoranyoftheir

respectiveafiliateswilbeamanufacturerforthepurposeoftheUKMiFIRProduct

GovernanceRules.

PRODUCTCLASIFICATIONPURSUANTOSECTION309BOFTHESECURITIES

ANDFUTURESACT2001(2020REVISEDEDITION)OFSINGAPORE–ThePricing

SuplementinrespectofanyNotesmayincludealegendentitled“SingaporeSecuritiesand

–v–

FuturesActProductClasification”whichwilstatetheproductclasificationoftheNotes

pursuantosection309B(1)oftheSecuritiesandFuturesAct2001(2020revisededition)of

Singapore(the“SFA”).TherelevantIsuerwilmakeadeterminationinrelationtoeachisue

aboutheclasificationoftheNotesbeingoferedforpurposesofsection309B(1)(a).Anysuch

legendincludedontherelevantPricingSuplementwilconstitutenoticeto“relevantpersons”

forpurposesofsection309B(1)(c)oftheSFA.

ThisOferingCirculardoesnotconstituteanofertoselorthesolicitationofanofertobuy

anyNotesinanyjurisdictiontoanypersontowhomitisunlawfultomaketheoferor

solicitationinsuchjurisdiction.ThedistributionofthisOferingCircularoranyPricing

SuplementandtheoferorsaleofNotesmayberestrictedbylawincertainjurisdictions.None

oftheIsuers,theBank,theArangerortheDealersoranyoftheirespectivedirectors,

oficers,employes,agents,representativesorafiliatesrepresentsthathisOferingCircularor

anyPricingSuplementmaybelawfulydistributed,orthatanyNotesmaybelawfulyofered,

incompliancewithanyaplicableregistrationorotherequirementsinanysuchjurisdiction,or

pursuantoanexemptionavailablethereunder,orasumesanyresponsibilityforfacilitatingany

suchdistributionorofering.Inparticular,noactionhasbentakenbyanyoftheIsuers,the

Bank,theArangerortheDealersoranyoftheirespectivedirectors,oficers,employes,

agents,representativesorafiliateswhichwouldpermitapublicoferingofanyNotesor

distributionofthisOferingCircularoranyPricingSuplementinanyjurisdictionwhereaction

forthatpurposeisrequired.Acordingly,noNotesmaybeoferedorsold,directlyorindirectly,

andneitherthisOferingCircularnoranyPricingSuplementoranyadvertisementorother

oferingmaterialmaybedistributedorpublishedinanyjurisdiction,exceptundercircumstances

thatwilresultincompliancewithanyaplicablelawsandregulations.Personsintowhose

posesionthisOferingCircularoranyNotesmaycomemustinformthemselvesabout,and

observe,anysuchrestrictionsonthedistributionofthisOferingCircularandtheoferingand

saleofNotes.Inparticular,therearerestrictionsonthedistributionofthisOferingCircularand

theoferorsaleoftheNotesintheUnitedStates,theEuropeanEconomicArea,theUnited

Kingdom,Singapore,Japan,HongKongandthePeople’sRepublicofChina.Se“Subscription

andSale”andtherelevantPricingSuplement.

IndustryandMarketData

MarketdatandcertaininformationandstatisticsincludedinthisOferingCircularhaveben

obtainedfrombothpublicandprivatesources,includingmarketresearch,publiclyavailable

informationandindustrypublications.AlthoughtheIsuersbelievetheinformationtobe

reliable,ithasnotbenindependentlyverifiedbytheIsuers,theBank,theAranger,the

DealersortheAgentsortheirespectiveafiliates,directors,oficers,employes,agents,

advisersorepresentativesandnoneoftheIsuers,theBank,theAranger,theDealersorthe

Agentsortheirespectiveafiliates,directors,oficers,employes,agents,advisersor

representativesmakesanyrepresentationastotheacuracyorcompletenesofsuchinformation.

Inadition,thirdpartyinformationprovidersmayhaveobtainedinformationfromarket

participantsandsuchinformationmaynothavebenindependentlyverified.Inmakingan

investmentdecision,eachinvestormustrelyonitsownexaminationoftherelevantIsuer,the

Bank,theGroupandthetermsoftheoferingandtheNotes,includingthemeritsandrisks

involved.Whereinformationhasbensourcedfromathirdparty,therelevantIsuerconfirms

thathisinformationhasbenacuratelyreproducedandthat,asfarastherelevantIsueris

–vi–

awareandisabletoascertainfrominformationpublishedbythirdparties,nofactshaveben

omitedwhichwouldrenderthereproducedinformationtobeinacurateormisleading.

AlhyperlinkreferencesinthisOferingCirculartoawebsiteorwebpageareguidanceto

sourcesofotherinformationasisinthepublicdomainonly.Thecontentsofsuchwebsiteor

webpage(the“Contents”)donotformpartofthisOferingCircularorthePrograme.Neither

theBank,anyIsuer,theDealersnoranyofthemaceptresponsibilityforanydamagesor

losesincuredorsuferedarisingoutoforinconectionwiththeuseofsuchyperlinkorsuch

Contents.SuchContentshaveneitherbenpreparedfortheProgramenorforincorporation

intothisOferingCircular.SuchyperlinkorContentsmaybelimitedtopersonslocatedor

residinginonlythatparticularjurisdiction,andmaynotbeintendedforpersonslocatedor

residinginjurisdictionsthatrestricthedistributionofsuchyperlinkorContents.

–vi–

PRESENTATIONOFINANCIALINFORMATION

ThisOferingCircularcontainstheauditedconsolidatedfinancialstatementsoftheGroupasat

andfortheyearended31December2022(the“2022AnualFinancialStatements”),the

auditedconsolidatedfinancialstatementsoftheGroupasatandfortheyearended31December

2023(the“2023AnualFinancialStatements”)andtheauditedconsolidatedfinancial

statementsoftheGroupasatandfortheyearended31December2024(the“2024Anual

FinancialStatements”).The2022AnualFinancialStatements,2023AnualFinancial

Statementsandthe2024AnualFinancialStatementswerepreparedinacordancewiththe

IFRSAcountingStandardsasisuedbytheInternationalAcountingStandardsBoard

(“IASB”).

The2022AnualFinancialStatementshavebenauditedbyPricewaterhouseCopers,Certified

PublicAcountants,HongKong(“PricewaterhouseCopers”),thethenindependentauditorof

theBank,inacordancewithHongKongStandardsonAuditing(“HKSAs”)andareincluded

elsewhereinthisOferingCircular.

The2023AnualFinancialStatementsandthe2024AnualFinancialStatementshaveben

auditedbyKPMG,CertifiedPublicAcountants,HongKong(“KPMG”),thecurent

independentauditoroftheBank,inacordancewithHKSAsandareincludedelsewhereinthis

OferingCircular.

–vi–

CERTAINDEFINITIONS

Unlesotherwisespecifiedorthecontextrequires,referenceshereintothe“Bank”referto

ChinaCITICBankCorporationLimited中信银行股份有限公司;referencestothe“Isuer”refer

totheBankoranybranchoftheBankaspecifiedintherelevantPricingSuplementasbeing

theisuerofaSeriesofNotes;referencestothe“Group”refertotheBankanditsubsidiaries

takenasawhole;referencesto“U.S.dolars”and“U.S.$”aretothelawfulcurencyofthe

UnitedStatesofAmerica(the“USA”orthe“U.S.”);referencesto“HongKongdolars”,“HK

dolars”and“HK$”aretothelawfulcurencyofHongKong;referencesto“Renminbi”and

“RMB”aretothelawfulcurencyofthePeople’sRepublicofChina(the“PRC”);referencesto

“Sterling”and“£”aretothelawfulcurencyoftheUnitedKingdomandreferencesto“EUR”,

“euro”and“€”aretothecurencyintroducedathestartofthethirdstageofEuropean

economicandmonetaryunionpursuantotheTreatyontheFunctioningoftheEuropeanUnion,

asamended.

Inadition,referencesto“HongKong”or“HongKongSAR”aretotheHongKongSpecial

AdministrativeRegionofthePRC,referencesto“Macau”aretotheMacauSpecial

AdministrativeRegionofthePRC,referencesto“MainlandChina”aretothePRCexcluding

HongKongandMacauandreferencesto“GreaterChina”aretothePRCincludingHongKong

andMacau.

Unlesotherwisespecifiedorthecontextrequires,referencesto:

(cid:129)“CIAM”refertoCITICInternationalAsetsManagementLimited;

(cid:129)“CIFH”refertoCITICInternationalFinancialHoldingsLimited;

(cid:129)“CITICaiBank”refertoCITICaiBankCorporationLimited;

(cid:129)“CITICorporationLimited”refertoCITICorporationLimited(formerlyknownas

CITICLimitedpriortorenaminginAugust2014);

(cid:129)“CITICFinancialHoldings”refertoChinaCITICFinancialHoldingsCo.,Ltd.;

(cid:129)“CITICFinancialLeasing”refertoCITICFinancialLeasingCo.,Ltd.;

(cid:129)“CITICGroup”refertoCITICGroupCorporationLimited(formerlyknownasCITIC

GroupCorporationpriortorestructuringinDecember2011);

(cid:129)“CITICLimited”refertoCITICLimited(formerlyknownasCITICPacificLimitedprior

torenaminginAugust2014);

(cid:129)“CITICWealthManagement”refertoCITICWealthManagementCorporationLimited;

(cid:129)“CNCBInvestment”refertoCNCB(HongKong)InvestmentCo.,Ltd.(formerlyknownas

ChinaInvestmentandFinanceLimited);

–ix–

(cid:129)“CNCBI”refertoChinaCITICBankInternationalLimited(formerlyknownasCITICKa

WahBankLimited);

(cid:129)“CSRC”refertotheChinaSecuritiesRegulatoryComision;

(cid:129)“formerCBIRC”refertoformerChinaBankingandInsuranceRegulatoryComisionor

itsrelevantlocalcounterpart;

(cid:129)“formerCBRC”refertoformerChinaBankingRegulatoryComisionoritsrelevant

localcounterpart;

(cid:129)“GDP”refertogrosdomesticproduct;

(cid:129)“IT”refertoinformationtechnology;

(cid:129)“MOF”refertotheMinistryofFinanceofthePRC;

(cid:129)“MOFCOM”refertotheMinistryofComerceofthePRC;

(cid:129)“NAO”refertotheNationalAuditOficeofthePRC;

(cid:129)“NFRA”refertoNationalFinancialRegulatoryAdministrationoritsrelevantlocal

counterpart;

(cid:129)“NPL”refertonon-performingloans;

(cid:129)“PBOC”refertothePeople’sBankofChina,thecentralbankofthePRC;

(cid:129)“relevantPRCBankingRegulatoryAuthority”refertoformerCBRC,formerCBIRCor

NFRA,asaplicable;

(cid:129)“SAFE”refertotheStateAdministrationofForeignExchangeofthePRC;and

(cid:129)“SAMR”refertotheStateAdministrationforMarketRegulationofthePRC.

Anydiscrepanciesinanytablebetwentotalsandsumsoftheamountslistedaredueto

rounding.Unlesotherwisespecified,wherefinancialinformationhasbentranslatedintoU.S.

dolars,ithasbensotranslatedforinformationpurposesonly,inthecaseofRenminbi,athe

rateofRMB7.2993equaltoU.S.$1.00on31December2024asetforthintheH.10statistical

releaseoftheFederalReserveBoard.NorepresentationismadethatheHongKongdolar,

Renminbi,EurorU.S.dolaramountsreferedtohereincouldhavebenorcouldbeconverted

intoHongKongdolars,Renminbi,EurorU.S.dolars,asthecasemaybe,atanyparticular

rateoratal.

TheEnglishnamesofthePRCnationals,entities,departments,facilities,laws,regulations,

certificates,titlesandthelikearetranslationsoftheirChinesenamesandareincludedfor

identificationpurposeonly.Intheventofanyinconsistency,theChinesenameprevails.

–x–

FORWARD-LOKINGSTATEMENTS

TheBankhasincludedstatementsinthisOferingCircularwhichcontainwordsorphrasesuch

as“wil”,“would”,“aim”,“aimed”,“islikely”,“arelikely”,“believe”,“expect”,“expectedto”,

“wilcontinue”,“anticipated”,“estimate”,“estimating”,“intend”,“plan”,“sekingto”,“future”,

“objective”,“should”,“can”,“could”,“may”,andsimilarexpresionsorvariationsofsuch

expresions,thatare“forward-lokingstatements”.Actualresultsmaydifermaterialyfrom

thosesugestedbytheforward-lokingstatementsduetocertainrisksoruncertainties

asociatedwiththerelevantIsuer’sexpectationswithrespecto,butnotlimitedto,itsabilityto

sucesfulyimplementitstrategy,itsabilitytointegraterecentorfuturemergersor

acquisitionsintoitsoperations,futurelevelsofnon-performingasetsandrestructuredasets,its

growthandexpansion,theadequacyofitsprovisionforcreditandinvestmentloses,

technologicalchanges,investmentincome,itsabilitytomarketnewproducts,cashflow

projections,theoutcomeofanylegaloregulatoryprocedingsitisorbecomesapartyto,the

futureimpactofnewacountingstandards,itsabilitytopaydividends,itsabilitytoroloverits

short-termfundingsources,itsexposuretoperational,market,credit,interestrateandcurency

risksandthemarketaceptanceofandemandforinternetbankingservices.These

forward-lokingstatementspeakonlyasofthedateofthisOferingCircular.TheIsuers

expreslydisclaimanyobligationorundertakingtoupdateoreviseanyforward-loking

statementscontainedhereinwhetherasaresultofnewinformation,futureventsorotherwise.

–xi–

CONTENTS

Page

DOCUMENTSINCORPORATEDBYREFERENCE.1

GENERALDESCRIPTIONOFTHEPROGRAME.2

SELECTEDFINANCIALINFORMATION.3

SUMARYOFTHEPROGRAME.9

RISKFACTORS.15

USEOFPROCEDS.56

FORMOFTHENOTES.57

FORMOFPRICINGSUPLEMENT.61

TERMSANDCONDITIONSOFTHENOTES.78

CAPITALISATIONANDINDEBTEDNES.129

DESCRIPTIONOFTHEBANK.130

DIRECTORS,SUPERVISORSANDSENIORMANAGEMENT.205

BOK-ENTRYCLEARANCESYSTEMS.213

REGULATIONANDSUPERVISIONINTHEPRC.215

PRCURENCYCONTROLS.219

TAXATION.226

SUBSCRIPTIONANDSALE.233

GENERALINFORMATION.244

INDEXTOCONSOLIDATEDFINANCIALSTATEMENTS.F-1

–xi–

DOCUMENTSINCORPORATEDBYREFERENCE

Thefolowingdocumentspublishedorisuedfromtimetotimeafterthedatehereofshalbe

demedtobeincorporatedin,andtoformpartof,thisOferingCircular:

(a)themostrecentlypublishedauditedconsolidatedfinancialstatementsoftheGroupandthe

mostrecentlypublishedunauditedbutreviewedconsolidatedinterimfinancialstatementsof

theGroup,togetherwithanyauditoreviewreportspreparedinconectiontherewithand

themostrecentlypublishedunauditedandunreviewedconsolidatedquarterlyfinancial

statementsoftheGroup;and

(b)alsuplementsoramendmentstothisOferingCircularcirculatedbyanyIsuerfromtime

totime,

savethatanystatementcontainedhereinorinadocumentwhichisdemedtobeincorporated

byreferencehereinshalbedemedtobemodifiedorsupersededforthepurposeofthis

OferingCirculartothextenthatastatementcontainedinanysuchsubsequentdocument

whichisdemedtobeincorporatedbyreferencehereinmodifiesorsupersedesuchearlier

statement(whetherexpresly,byimplicationorotherwise).Anystatementsomodifiedor

supersededshalnotbedemed,exceptasomodifiedorsuperseded,toconstituteapartofthis

OferingCircular.

Whereconsolidatedquarterlyfinancialinformationisincludedorincorporatedbyreferenceinto

thisOferingCircular,noneofsuchconsolidatedquarterlyfinancialinformationinrespectofthe

thremonthsended31Marchandninemonthsended30Septemberofeachfinancialyearofthe

Bankhasbenauditedoreviewedbyanyauditorsandsuchfinancialinformationmaynot

providethesametypeorqualityofinformationasociatedwithinformationthathasben

auditedoreviewed.Potentialinvestorsmustexercisecautionwhenusingsuchdatatoevaluate

theBank’sfinancialconditionandresultsofoperations,andmustnotplaceunduerelianceon

suchfinancialinformation.

TherelevantIsuerwilprovide,withoutcharge,toeachpersontowhomacopyofthisOfering

Circularhasbendelivered,upontherequestofsuchperson,acopyofanyoralofthe

documentsdemedtobeincorporatedhereinbyreference,unlesuchdocumentshaveben

modifiedorsupersededaspecifiedabove.Requestsforsuchdocumentshouldbedirectedto

therelevantIsueratitsofice,asetoutathendofthisOferingCircular.Inadition,such

documentswilbeavailablefreofchargefromtheoficeofCiticorpInternationalLimited(the

“FiscalAgent”)at40/FChampionTower,3GardenRoad,Central,HongKong.Pricing

SuplementsrelatingtounlistedNoteswilonlybeavailableforinspectionbyaholderofsuch

Notes,andsucholdermustproducevidencesatisfactorytotherelevantIsuerortherelevant

PayingAgentastoitsholdingofNotesanditsidentity.

IfthetermsoftheProgramearemodifiedoramendedinamanerwhichwouldmakethis

OferingCircular,asomodifiedoramended,inacurateormisleading,aneworsuplemental

oferingcircularwilbeprepared.

GENERALDESCRIPTIONOFTHEPROGRAME

UnderthePrograme,theIsuersmayfromtimetotimeisueNotesdenominatedinany

curency,subjectothosematersetoutherein.Asumaryofthetermsandconditionsofthe

ProgrameandtheNotesapearsbelow.TheaplicabletermsofanyNoteswilbeagred

betwentherelevantIsuerandtherelevantDealerpriortotheisueoftheNotesandwilbe

setoutintheTermsandConditionsoftheNotesendorsedon,atachedto,orincorporatedby

referenceinto,theNotes,asmodifiedandsuplementedbytheaplicablePricingSuplement

atachedto,orendorsedon,suchNotes,asmorefulydescribedunder“FormoftheNotes”.

ThisOferingCircularandanysuplementheretowilonlybevalidforNotesisuedunderthe

Programeduringtheperiodof12monthsfromthedateofthisOferingCircularinan

agregatenominalamountwhich,whenadedtotheagregatenominalamounthenoutstanding

ofalNotespreviouslyorsimultaneouslyisuedunderthePrograme,doesnotexced

U.S.$5,000,000,000oritsequivalentinothercurencies.

SELECTEDFINANCIALINFORMATION

ThefolowingtablesetforththeGroup’selectedconsolidatedfinancialinformationasatand

fortheperiodsindicated.

Theselectedconsolidatedfinancialinformationasatandfortheyearsended31December

2022,2023and2024asetforthbelowhasbenderivedfrom,andshouldbereadin

conjunctionwith,therespective2022AnualFinancialStatements,2023AnualFinancial

Statementsand2024AnualFinancialStatements.The2022AnualFinancialStatementswere

auditedbyPricewaterhouseCopersinacordancewithHongKongStandardsonAuditingand

areincludedelsewhereinthisOferingCircular.The2023AnualFinancialStatementsand

2024AnualFinancialStatementswereauditedbyKPMGinacordancewithHongKong

StandardsonAuditingandareincludedelsewhereinthisOferingCircular.The2022Anual

FinancialStatements,the2023AnualFinancialStatementsandthe2024AnualFinancial

StatementshavebenpreparedbytheBankinacordancewiththeIFRSAcountingStandards.

CONSOLIDATEDANUALSTATEMENTOFINANCIALPOSITION

Asat31December

(RMBinmilions)

Asets

Cashandbalanceswithcentralbanks

477,381416,442340,915

Depositswithbanksandnon-bankfinancialinstitutions

78,83481,075128,193

Preciousmetals

5,98511,67413,580

Placementswithandloanstobanksandnon-bankfinancial

institutions

218,164237,742404,801

Derivativefinancialasets

44,38344,67585,929

Financialasetsheldunderesaleagrements

13,730104,773136,265

Loansandadvancestocustomers

5,038,9675,383,7505,601,450

Financialinvestments

–Atfairvaluethroughprofitorlos

557,594613,824647,398

–Atamortisedcost

1,135,4521,085,5981,118,989

–Atfairvaluethroughothercomprehensiveincome

804,695888,677849,781

–Designatedatfairvaluethroughothercomprehensiveincome

5,1284,8074,702

Investmentsinasociatesandjointventures

6,3416,9457,349

Investmentproperties

Property,plantandequipment

34,43038,30946,516

Right-of-useasets

10,82410,64311,035

Intangibleasets

3,7154,5953,419

Godwil

Deferedtaxasets

55,01152,48054,130

Otherasets

55,49065,02176,733

Totalasets

8,547,5439,052,4849,532,722

Asat31December

(RMBinmilions)

Liabilities

Borowingsfromcentralbanks

119,422273,226124,151

Depositsfrombanksandnon-bankfinancialinstitutions

1,143,776927,887968,492

Placementsfrombanksandnon-bankfinancialinstitutions

70,74186,32788,550

Financialiabilitiesatfairvaluethroughprofitorlos

1,5461,5881,719

Derivativefinancialiabilities

44,26541,85081,162

Financialasetsoldunderepurchaseagrements

256,194463,018278,003

Depositsfromcustomers

5,157,8645,467,6575,864,311

Acruedstafcosts

21,90522,42020,318

Taxespayable

8,4874,5367,645

Debtsecuritiesisued

975,206965,9811,224,038

Leaseliabilities

10,27210,24510,861

Provisions

9,73610,8469,990

Deferedtaxliabilities

Otherliabilities

42,29646,07846,078

Totaliabilities

7,861,7138,317,8098,725,357

Equity

Sharecapital

48,93548,96754,397

Otherequityinstruments

118,076118,060105,499

Capitalreserve

59,21659,40089,286

Othercomprehensiveincome

(1,621)4,05716,862

Surplusreserve

54,72760,99267,629

Generalreserve

100,580105,127111,723

Retainedearnings

285,505320,619343,868

TotalequityatributabletoequityholdersoftheBank

665,418717,222789,264

Non-controlinginterests

20,41217,45318,101

Totalequity

685,830734,675807,365

Totaliabilitiesandequity

8,547,5439,052,4849,532,722

CONSOLIDATEDANUALSTATEMENTOFPROFITORLOSANDOTHER

COMPREHENSIVEINCOME

Fortheyearended31December

(RMBinmilions)

Interestincome

313,609317,692309,791

Interestexpense

(162,962)(174,153)(163,112)

Netinterestincome

150,647143,539146,679

Feandcomisionincome

41,05136,99937,414

Feandcomisionexpense

(3,959)(4,616)(6,312)

Netfeandcomisionincome

37,09232,38331,102

Netradingain

4,8817,1386,769

Netgainfrominvestmentsecurities

17,77121,10327,111

Nethedgingain

–2

Otheroperatingincome

7181,4071,560

Operatingincome

211,109205,570213,223

Operatingexpenses

(66,838)(69,214)(71,938)

Operatingprofitbeforeimpairment

144,271136,356141,285

Creditimpairmentloses

(71,359)(61,926)(61,045)

Impairmentlosesonotherasets

(45)(278)(68)

Revaluationlosesoninvestmentproperties

(74)(1)(24)

Shareofprofitofasociatesandjointventures

Profitbeforetax

73,41674,88780,863

Incometaxexpense

(10,466)(6,825)(11,395)

Profitfortheyear

62,95068,06269,468

Netprofitatributableto:

EquityholdersoftheBank

62,10367,01668,576

Non-controlinginterests

8471,046892

Profitfortheyear

62,95068,06269,468

Fortheyearended31December

(RMBinmilions)

Othercomprehensiveincome,netoftaxItemsthatwilnotbereclasified

toprofitorlos(netoftax):

–Fairvaluechangesonfinancialinvestmentsdesignatedatfairvalue

throughothercomprehensiveincome

237(144)(82)

–Changesindefinedbenefitplanliabilities

–(1)

Itemsthatmaybereclasifiedsubsequentlytoprofitorlos(netoftax):

–Othercomprehensiveincometransferabletoprofitorlosunder

equitymethod

(28)3915

–Fairvaluechangesonfinancialasetsatfairvaluethroughother

comprehensiveincome

(8,191)4,98910,737

–Impairmentalowanceonfinancialasetsatfairvaluethroughother

comprehensiveincome

145(512)384

–Exchangediferenceontranslationofinancialstatements

4,1321,1981,767

–Others

Othercomprehensiveincome,netoftax

(3,701)5,57512,914

Totalcomprehensiveincomefortheyear

59,24973,63782,382

Totalcomprehensiveincomeatributeto:

EquityholdersoftheBank

58,68172,50881,381

Non-controlinginterests

5681,1291,001

EarningspershareatributabletotheordinaryshareholdersoftheBank

Basicearningspershare(RMB)

1.171.271.22

Dilutedearningspershare(RMB)

1.061.141.20

CONSOLIDATEDANUALSTATEMENTOFCASHFLOWS

Fortheyearended31December

(RMBinmilions)

Operatingactivities

Profitbeforetax

73,41674,88780,863

Adjustmentsfor:

–Revaluationgainoninvestments,derivativesandinvestmentproperties

(964)(521)(3,803)

–Investmentgains

(14,287)(19,843)(19,973)

–Netloses/(gains)ondisposalofproperty,plantandequipment,

intangibleasetsandotherasets

32(9)(154)

–Unrealisedforeignexchange(gains)/loses

52(3,013)(2,896)

–Creditimpairmentloses

71,35961,92661,045

–Impairmentlosesonotherasets

–Depreciationandamortisation

4,1104,8685,072

–Interestexpenseondebtsecuritiesisued

27,08224,99627,608

–Dividendincomefromequityinvestment

(102)(169)(196)

–Depreciationofright-of-useasetsandinterestexpenseon

leaseliabilities

3,7313,7103,692

–Incometaxpaid

(18,043)(13,523)(9,841)

Subtotal

146,431133,587141,485

Changesinoperatingasetsandliabilities:

(Increase)/Decreaseinbalanceswithcentralbanks

(3,363)8,36130,381

Decreaseindepositswithbanksandnon-bankfinancialinstitutions

8,9211,7607,715

(Increase)/Decreaseinplacementswithandloanstobanksandnon-bank

financialinstitutions

(85,386)6,115(124,278)

Decrease/(Increase)infinancialasetsheldunderesaleagrements

77,922(90,988)(30,168)

Increaseinloansandadvancestocustomers

(347,961)(380,326)(258,336)

Decrease/(Increase)infinancialasetsatfairvaluethroughthe

profitorlos

2,550(79,755)9,738

(Decrease)/Increaseinborowingsfromcentralbanks

(69,087)152,670(148,593)

(Decrease)/Increaseindepositsfrombanksandnon-bank

financialinstitutions

(30,317)(215,881)40,871

(Decrease)/Increaseinplacementsfrombanksandnon-bankfinancial

institutions

(8,820)17,387(2,211)

(Decrease)/Increaseinfinancialiabilitiesatfairvaluethrough

profitorlos

(680)593

Increase/(Decrease)infinancialasetsoldunderepurchaseagrements

157,583206,389(186,823)

Increaseindepositsfromcustomers

340,067286,207365,813

Increaseinotheroperatingasets

(17,411)(46,723)(43,595)

Increaseinotheroperatingliabilities

24,61727416,876

Subtotal

48,635(134,505)(322,517)

Netcashflowsfrom/(usedin)operatingactivities

195,066(918)(181,032)

Fortheyearended31December

(RMBinmilions)

Investingactivities

Procedsfromdisposalandredemptionofinvestments

2,580,7252,768,3313,848,154

Procedsfromdisposalofproperty,plantandequipment,landuserights,

andotherasets

Cashreceivedfromequityinvestmentincome

5076531,070

Cashreceivedfromdisposalofasociates

3970–

Paymentsonacquisitionofinvestments

(2,690,472)(2,753,726)(3,860,233)

Paymentsonacquisitionofproperty,plantandequipment,landuserights

andotherasets

(6,799)(13,524)(18,783)

Netcashflows(usedin)/frominvestingactivities

(115,873)1,887(18,783)

Financingactivities

CashreceivedfromisuingotherequityInstruments

3,990–30,000

Cashreceivedfromdebtsecuritiesisued

850,0861,096,1391,553,890

Cashpaidforedemptionofotherequityinstruments

–(3,516)(39,993)

Cashpaidforedemptionofdebtsecuritiesisued

(836,677)(1,106,000)(1,261,613)

Interestpaidondebtsecuritiesisued

(26,513)(24,724)(28,178)

Cashpaidfordividends

(20,035)(21,492)(29,925)

Cashpaidinconectionwithotherfinancingactivities

(3,390)(3,509)(3,378)

Netcashflows(usedin)/fromfinancingactivities

(32,539)(63,102)220,803

Increase/(Decrease)incashandcashequivalents

46,654(62,133)10,239

Cashandcashequivalentsasat1January

252,818307,871249,002

Efectofexchangeratechangesoncashandcashequivalents

8,3993,2643,538

Cashandcashequivalentsasatheyearend

307,871249,002262,779

Cashflowsfromoperatingactivitiesinclude:

Interestreceived

320,205318,778317,099

Interestpaid

(131,295)(136,150)(118,514)

SUMARYOFTHEPROGRAME

Thefolowingsumarydoesnotpurportobecompleteandistakenfrom,andisqualifiedinits

entiretyby,theremainderofthisOferingCircularand,inrelationtothetermsandconditions

ofanyparticularTrancheofNotes,theaplicablePricingSuplement.Wordsandexpresions

definedin“FormoftheNotes”and“TermsandConditionsoftheNotes”shalhavethesame

meaningsinthisumary.

Bank

ChinaCITICBankCorporationLimited中信银行股份有

限公司.

Isuer

TheBankoranybranchoftheBankaspecifiedinthe

relevantPricingSuplementasbeingtheIsuerofa

SeriesofNotes.

Description

MediumTermNotePrograme.

Aranger

ChinaCITICBankInternationalLimited.

Dealers

ChinaCITICBankInternationalLimitedandanyother

DealerapointedfromtimetotimeitherbytheBank

generalyinrespectoftheProgrameorbytherelevant

IsuerinrelationtoaparticularSeriesofNotes.

CertainRestrictions

EachisueofNotesdenominatedinacurencyinrespect

ofwhichparticularlaws,guidelines,regulations,

restrictionsoreportingrequirementsaplywilonlybe

isuedincircumstanceswhichcomplywithsuchlaws,

guidelines,regulations,restrictionsoreporting

requirementsfromtimetotime(se“Subscriptionand

Sale”andtherelevantPricingSuplement),includingthe

folowingrestrictionsaplicableathedateofthis

OferingCircular.

Noteshavingamaturityoflesthanoneyearwil,ifthe

procedsoftheisuearereceivedintheUnitedKingdom,

constitutedepositsforthepurposesoftheprohibitionon

aceptingdepositscontainedinSection19ofthe

FinancialServicesandMarketsAct2000unlestheyare

isuedtoalimitedclasofprofesionalinvestorsand

haveadenominationofatleast£100,000oritsequivalent.

Se“SubscriptionandSale”.

FiscalAgent

CiticorpInternationalLimited.

RegistrarandTransferAgent

Citibank,N.A.,LondonBranch.

CMULodgingandPayingAgentCiticorpInternationalLimited.

PrincipalPayingAgent

Citibank,N.A.,LondonBranch.

ProgrameSize

UptoU.S.$5,000,000,000(oritsequivalentinother

curenciescalculatedasdescribedunder“General

DescriptionofthePrograme”)outstandingatanytime.

TheBankmayincreasetheamountoftheProgramein

acordancewiththetermsoftheDealerAgrement.

Distribution

Notesmaybedistributedbywayofprivateorpublic

placementand,ineachcase,onasyndicatedor

non-syndicatedbasis.TheNotesmaybeisuedinseries

(eacha“Series”)havingoneormoreisuedates(each

tranchewithinsuchSeriesa“Tranche”)andonterms

otherwiseidentical(oridenticalotherthaninrespectof

thefirstpaymentofinterest),theNotesofeachSeries

beingintendedtobeinterchangeablewithalotherNotes

ofthatSeries.EachSeriesmaybeisuedintrancheson

thesameordiferentisuedates.Thespecifictermsof

eachTranche(whichwilbesuplemented,where

necesary,withsuplementaltermsandconditionsand,

saveinrespectoftheisuedate,isueprice,firstpayment

ofinterestandnominalamountoftheTranche,wilbe

identicaltothetermsofotherTranchesofthesame

Series)wilbesetoutinaPricingSuplement.

Interest

Notesmaybeinterestbearingornon-interestbearing.

Interest(ifany)mayacrueatafixedrateorafloating

rateorothervariablerateandthemethodofcalculating

interestmayvarybetwentheisuedateandthematurity

dateoftherelevantSeries.Alsuchinformationwilbe

setoutintherelevantPricingSuplement.

Denominations

Noteswilbeisuedinsuchdenominationsasmaybe

specifiedintherelevantPricingSuplement,subjecto

compliancewithalaplicablelegaland/oregulatory

and/orcentralbankrequirements.

Curencies

Subjectoanyaplicablelegaloregulatoryrestrictions,

anyothercurencyagredbetwentherelevantIsuerand

therelevantDealer.

Maturities

Suchmaturitiesasmaybeagredbetwentherelevant

IsuerandtherelevantDealer,subjectosuchminimum

ormaximumaturitiesasmaybealowedorequired

fromtimetotimebytherelevantcentralbank(or

equivalentbody)oranylawsoregulationsaplicableto

therelevantIsuerortherelevantSpecifiedCurency.

IsuePrice

Notesmaybeisuedonafuly-paidorapartly-paidbasis

andatanisuepricewhichisatparoratadiscounto,or

premiumover,par.

FormofNotes

TheNoteswilbeisuedinbeareroregisteredformas

describedin“FormoftheNotes”.RegisteredNoteswil

notbexchangeableforBearerNotesandviceversa.

FixedRateNotes

Fixedinterestwilbepayableonsuchdateordatesas

maybeagredbetwentherelevantIsuerandthe

relevantDealerandonredemptionandwilbecalculated

onthebasisofsuchDayCountFractionasmaybeagred

betwentherelevantIsuerandtheDealer.

FloatingRateNotes

TherateofinterestinrespectofFloatingRateNotesfor

eachInterestAcrualPeriodshalbedeterminedin

acordancewitheitherISDADeterminationorScren

RateDetermination,aspecifiedintherelevantTermsand

ConditionsoftheNotesinrespectoftheFloatingRate

Notes.

Benchmarkdiscontinuation

SeConditions5(b)(iv)and5(b)(v).

IndexLinkedNotes

PaymentsofprincipalinrespectofIndexLinked

RedemptionNotesorofinterestinrespectofIndex

LinkedInterestNoteswilbecalculatedbyreferenceto

suchindexand/orformulaortochangesinthepricesof

securitiesorcomoditiesortosuchotherfactorsasthe

relevantIsuerandtherelevantDealermayagre.

Otherprovisionsinrelation

toFloatingRateNotes

andIndex-Linked

InterestNotes

FloatingRateNotesandIndexLinkedInterestNotesmay

alsohaveamaximuminterestrate,aminimuminterest

rateorboth.InterestonFloatingRateNotesandIndex

LinkedInterestNotesinrespectofeachInterestPeriod,

asagredpriortoisuebytherelevantIsuerandthe

relevantDealer,wilbepayableonsuchInterestPayment

Dates,andwilbecalculatedonthebasisofsuchDay

CountFraction,asmaybeagredbetwentherelevant

IsuerandtherelevantDealer.

DualCurencyNotes

Payments(whetherinrespectofprincipalorinterestand

whetheratmaturityorotherwise)inrespectofDual

CurencyNoteswilbemadeinsuchcurencies,and

basedonsuchratesofexchange,astherelevantIsuer

andtherelevantDealermayagre.

ZeroCouponNotes

ZeroCouponNoteswilbeoferedandsoldatadiscount

totheirnominalamount,oroferedandsoldatheir

nominalamountandberedemedatapremium,andwil

notbearinterest.

Redemption

TheaplicablePricingSuplementwilindicateither

thatherelevantNotescanotberedemedpriortotheir

statedmaturity(otherthaninspecifiedinstalments,if

aplicable,orfortaxationreasons,orpursuantoa

winding-upoftherelevantIsuerfolowinganEventof

Default)orthatsuchNoteswilberedemableathe

optionoftherelevantIsuerand/ortheNoteholdersupon

givingnoticetotheNoteholdersortherelevantIsuer,as

thecasemaybe,onadateordatespecifiedpriortosuch

statedmaturityandatapriceorpricesandonsuchother

termsasmaybeagredbetwentherelevantIsuerand

therelevantDealer.

TheaplicablePricingSuplementmayprovidethat

Notesmayberedemableintwormoreinstalmentsof

suchamountsandonsuchdatesasareindicatedinthe

aplicablePricingSuplement.

TheaplicablePricingSuplementmayprovidethat

Notesmayberedemableintwormoreinstalmentsof

suchamountsandonsuchdatesasareindicatedinthe

aplicablePricingSuplement.

DenominationofNotes

Noteswilbeisuedinsuchdenominationsasmaybe

agredbetwentherelevantIsuerandtherelevant

Dealer,savethatheminimumdenominationofeachNote

wilbesuchasmaybealowedorequiredfromtimeto

timebythecentralbank(orequivalentbody)oranylaws

oregulationsaplicabletotherelevantSpecified

Curency.Se“CertainRestrictions”above.

Taxation

Alpaymentsofprincipalandinterestinrespectofthe

Notes,ReceiptsandCouponswilbemadewithout

deductionfororonacountofwitholdingtaxesimposed

bythePRCand,iftherelevantIsuerisabranchofthe

Bank,thejurisdictionwherethatbranchislocated,orin

eachcaseanypoliticalsubdivisionoranyauthority

thereinorthereofhavingpowertotaxtowhichthe

relevantIsuerbecomesubjectinrespectofpayments

madebyitinrespectoftheNotes,Receiptsandthe

Coupons,subjectasprovidedinCondition8.Inthevent

thatanysuchdeductionismade,therelevantIsuerwil,

saveincertainlimitedcircumstancesprovidedin

Condition8,berequiredtopayaditionalamountsto

covertheamountsodeducted.

EventsofDefault

EventsofDefaultfortheNotesaresetoutinCondition

10.

Cros-Aceleration

ThetermsoftheNoteswilcontainacros-aceleration

provisionasfurtherdescribedinCondition10(c).

StatusoftheNotes

TheNotesandtheReceiptsandtheCouponsrelatingto

themwilconstitutedirect,unconditional,unsubordinated

andunsecuredobligationsoftherelevantIsuer,ranking

paripasuandwithoutanypreferenceamongthemselves.

ThepaymentobligationsoftherelevantIsuerunderthe

NotesandtheReceiptsandtheCouponsrelatingtothem

shal,saveforsuchexceptionsasmaybeprovidedby

aplicablelegislation,ataltimesrankatleastequaly

withalotherunsecuredandunsubordinatedindebtednes

andmonetaryobligationsoftherelevantIsuer,present

andfuture.

Listing

AplicationhasbenmadetotheHongKongStock

ExchangeforthelistingoftheProgramebywayofdebt

isuestoProfesionalInvestorsonlyontheHongKong

StockExchangeduringthe12-monthperiodafterthedate

ofthisOferingCircular.Separateaplicationwilbe

madeforthelistingof,andpermisiontodealin,the

NotesisuedundertheProgrameontheHongKong

StockExchange.

NoteslistedontheHongKongStockExchangewilbe

requiredtohaveadenominationofatleastHK$500,000

(oritsequivalentinothercurencies).

UnlistedNotesmayalsobeisued.

TheaplicablePricingSuplementwilstatewhetheror

notherelevantNotesaretobelistedand,ifso,onwhich

stockexchange(s).

Ratings

TranchesofNoteswilberatedorunrated.Wherea

TrancheofNotesistoberated,suchratingwilbe

specifiedintherelevantPricingSuplement.

Aratingisnotarecomendationtobuy,selorhold

securitiesandmaybesubjectosuspension,revision,

reductionorwithdrawalatanytimebytheasigning

ratingagency.

GoverningLaw

TheNotes,theReceipts,theCouponsandtheTalonsand

anynon-contractualobligationsarisingoutoforin

conectionwiththemwilbegovernedby,andshalbe

construedinacordancewith,Englishlaw.

Jurisdiction

ThecourtsofHongKongaretohavexclusive

jurisdictiontosetleanydisputesthatmayariseoutofor

inconectionwithanyNotes,Receipts,Couponsor

Talons,andacordinglyanylegalactionorprocedings

arisingoutoforinconectionwithanyNotes,Receipts,

CouponsorTalonsmaybebroughtinsuchcourts.

SelingRestrictions

Therearerestrictionsontheofer,saleandtransferofthe

NotesintheUnitedStates,theUnitedKingdom,the

EuropeanEconomicArea,Singapore,Japan,HongKong

andthePRCandsuchotherestrictionsasmaybe

requiredinconectionwiththeoferingandsaleofa

particularTrancheofNotes.Se“SubscriptionandSale”

andtherelevantPricingSuplement.

UnitedStatesSeling

Restrictions

RegulationS,Category1or2,aspecifiedinthe

aplicablePricingSuplement.WhetherTEFRACorD

rulesaplyorwhetherTEFRAisnotaplicablewilbe

specifiedintheaplicablePricingSuplement.

ClearingSystems

TheCMU,Euroclear,Clearstreamand/oranyother

clearingsystemaspecifiedintheaplicablePricing

Suplement.Se“FormoftheNotes”.

RISKFACTORS

Investorshouldcarefulyconsider,togetherwithalotherinformationcontainedinthis

OferingCircular,therisksanduncertaintiesdescribedbelow.Thebusines,financialcondition

oresultsofoperationsoftheBankandtheGroupmaybeadverselyafectedbyanyofthese

risks.TherisksdescribedbelowarenotheonlyonesrelevantotheBankortheNotes.The

Bankbelievetherisksdescribedbelowrepresentheprincipalrisksinherentwhenconsidering

aninvestmentintheNotes.AditionalrisksanduncertaintiesnotpresentlyknowntotheBank,

orwhichtheBankcurentlydemsimaterial,mayalsohaveanadversefectonaninvestment

intheNotes.Alofthesefactorsarecontingencieswhichmayormaynotocur,andtheBankis

notinapositiontoexpresaviewonthelikelihodofanysuchcontingencyocuring.

TheBankdoesnotrepresenthathestatementsbelowregardingtheriskfactorsofholdingany

Notesarexhaustive.Prospectiveinvestorshouldalsoreadthedetailedinformationsetout

elsewhereinthisOferingCircularandreachtheirownviewspriortomakinganyinvestment

decision.

ThisOferingCircularalsocontainsforward-lokingstatementsthatinvolverisksand

uncertainties.TheBank’sactualresultscouldifermaterialyfromthoseanticipatedinthese

forward-lokingstatementsasaresultofcertainfactors,includingtheconsiderationsdescribed

belowandelsewhereinthisOferingCircular.

RISKSRELATINGTOTHEBANK’SBUSINES

IftheBankisunabletomaintainefectivelythequalityofitsloanportfolio,itsfinancial

conditionandresultsofoperationsmaybematerialyandadverselyafected.

TheBank’sresultsofoperationsarenegativelyimpactedbyitsNPLs,andthesustainabilityof

itsgrowthprimarilydependsonitsabilitytomanageitscreditriskandmaintainthequalityof

itsloanportfolio(includingrelatedpartyloans)efectively.TheBankhasundertakenvarious

initiativestoimproveitscreditriskmanagementpolicies,proceduresandsystems.Asat31

December2022,2023and2024,theGroup’sNPLswereRMB65.21bilion,RMB64.80bilion

andRMB66.49bilion,respectively,representingNPLratiosof1.27percent.,1.18percent.and

1.16percent.,respectively.Asat31December2024,theGroup’sNPLsweremainly

concentratedinthreindustrysectors,whicharemanufacturing,realestate,andrentaland

busineservice,withtheirNPLbalancescolectivelytakingup61.04percent.ofthetotal

corporateNPLs.

AsforthedistributionofNPLs,theGroup’sNPLsweremainlyconcentratedintheBohaiRim,

WesternChinandthePearlRiverDeltandWestStrait,withthecombinedNPLbalanceof

aboveregionsreachingRMB43.37bilion,acountingfor65.24percent.ofthetotal.Interms

ofincrementalNPLs,WesternChinaregisteredanamountofRMB2.31bilionincrementalNPLs

anditsNPLratioroseby0.26percentagepoints;YangtzeRiverDeltarankedsecond,recording

RMB2.04bilionincrementalNPLsanda0.10percentagepoints’riseinitsNPLratiofrom

2023.

Thereisnoasurancethathemacro-economicandmicro-economicenvironmentwouldnot

continuetohaveimpactontheabove-mentionedindustriesandregions,andiftheGroup’s

customersintheseindustriesoregionsfailtocopewiththeadverseimpactortomaintaintheir

marketcompetitivenes,thequalityoftheGroup’sloanswilbematerialyadverselyafected,

whichinturncouldmaterialyafectheGroup’sfinancialconditionandresultsofoperations.

ActualosesontheBank’sloanportfoliomayexceditsalowanceforimpairmentloses

inthefuture.

Asat31December2024,theGroup’salowanceforimpairmentlosesonloansandadvancesto

customerswasRMB52.70bilion,whiletheratio

ofitsalowanceforloanimpairmentlosesto

totaloanswas2.43percent.andthealowancecoverageratio

was209.43percent.The

amountofthealowanceisbasedontheGroup’scurentasesmentofvariousfactorsafecting

thequalityofitsloanportfolioanditsexpectationofchangestothesefactorsthatmayafect

thequalityofitsloanportfoliointhefuture.Thesefactorsinclude,amongotherthings:(i)the

financialcondition,repaymentabilityandrepaymentintentionoftheGroup’sborowers;(i)the

realisablevalueofanycolateralandtheabilityoftheguarantortoperformitsobligations;and

(i)generalfactorsrelatingtothePRC’seconomy,suchasmacroeconomicandmonetary

policiesofthePRCgovernment,interestrates,exchangeratesandthelegalandregulatory

environment.AlthoughtheBankhasmadeprovisionsbasedonwhatitbelievestobeaprudent

asesmentofthesefactorsandexpectationofchangestothosefactors,theBankcanotasure

potentialinvestorsthatitsasesmentandexpectationsconcerningthesefactorswilnotdifer

fromactualdevelopments,orthathequalityofitsloanportfoliowilnotdeteriorateduetothe

uncertaintyofthefuturedevelopmentofthesefactorsandthefacthathesefactorsarepartialy

orentirelybeyonditscontrol.Theocurenceofanyoftheforegoingfactorswilresultinthe

Bank’salowanceforimpairmentlosesbeinginadequatetocoveritsactualosesandtheBank

maynedtomakeaditionalprovisionsforimpairmentloses,whichmayhaveamaterialand

adversefectontheBank’sfinancialconditionandresultsofoperations.

TheBankhasaconcentrationofcreditexposuretocertaincustomers,andany

deteriorationintheloanstosuchcustomersmayadverselyafectitsasetquality,financial

conditionandresultsofoperations.

Asat31December2024,percentageofloanstotheGroup’slargestsinglecustomerwas1.10

percent.

ofitstotaloans,incompliancewithrequirementsoftheregulatoryauthorities.Athe

sametime,thetotalbalanceofcorporateloansfromtheGrouptothetop10customers

amountedtoRMB83.665bilion,takingup1.46percent.ofitstotaloansand8.86percent.

Theratiofalowanceforloanimpairmentlosestototaloans=balanceofalowanceforimpairmentloseson

loansandadvancestocustomers(excludingalowanceforimpairmentlosesonacruedinterest)/totaloansand

advancestocustomers.

Alowancecoverageratio=balanceofalowanceforimpairmentlosesonloansandadvancestocustomers

(excludingalowanceforimpairmentlosesonacruedinterest)/balanceofNPLs.

Percentageofloanstothelargestsinglecustomer=balanceofloanstothelargestsinglecustomer/netcapital.

Percentageofloanstothetop10customers=balanceofloanstothetop10customers/netcapital.

itsnetcapital,whichisalsoincompliancewithrequirementsoftheregulatoryauthorities.The

BankisasubsidiaryofCITICGroup,andextendsrelatedpartyloansintheordinarycourseof

itsbusines.Althoughitscreditconcentrationisinacordancewiththecriteriasetby

governmentauthorities,ifanyoftheloanstosuchsingleorgroupborower(includingCITIC

Groupanditsubsidiariesandotherelatedparties)deteriorate,itsasetqualitywilbe

adverselyafected.Inadition,theBank’salowanceforimpairmentlosesmaynotbeadequate

tocoveritsactualosesandtheBankthenmaynedtomakeaditionalalowance,whichmay

haveamaterialandadversefectontheBank’sasetquality,financialconditionandresultsof

operations.

TheBankhasaconcentrationofcreditexposuretocertainindustrysectorsandregions,

andanysignificantorextendedownturninthefinancialconditionofanyoftheseindustry

sectorsoregionsmayadverselyafectitsfinancialconditionandresultsofoperations.

Asat31December2024,rentalandbusineservicesandmanufacturingwerethetoptwosector

borowersoftheGroup’scorporateloans,recordingloanbalancesofRMB563.95bilionand

RMB556.17bilion,respectively.Amongthem,theloanstomanufacturingacountedfor19.12

percent.oftheGroup’stotalcorporateloans,upby0.58percentagepointsfrom31December

2023.ThebalanceofloansgrantedtotherealestateindustrystodatRMB285.15bilion,

acountingfor9.81percent.oftheGroup’stotalcorporateloans,upby0.19percentagepoints

from31December2023.Asat31December2024,theGroup’sNPLsweremainlyconcentrated

inthresectors,i.e.,manufacturing,realestate,andrentalandbusineservice,withtheirNPL

balancescolectivelytakingup61.04percent.ofthetotalcorporateNPLs.

AlthoughtheBankhasformulatedcreditpolicieswithrespectoextensionsofcreditodiferent

industrysectorsandhasbenpersistentlycomitedtoriskmanagementbydiversifyingitsloan

portfoliobyindustrysectors,theBankstilfacesconcentrationrisksincertainindustrysectors.

IfanyoftheindustrysectorsinwhichtheBankfacesconcentrationrisksexperiencesa

significantdownturn,whetherasaresultofgeneraleconomicdownturnorotherwise,itsaset

quality,financialconditionandresultsofoperationsmaybematerialyandadverselyafected.

TheBank’sloansaremainlyextendedtoborowersconcentratedindevelopedeasternand

southerncoastalregionsofthePRC,suchastheBohaiRim,theYangtzeRiverDeltaswelas

thePearlRiverDeltandtheWestStrait.Asat31December2022,2023and2024,theGroup’s

loansextendedtoborowersintheaboveregionsrepresented68.19percent.,68.08percent.

and68.43percent.,respectively,ofitstotaloans.Asat31December2024,thebalancesof

loansandadvancestocustomersintheYangtzeRiverDelta,theBohaiRimandPearlRiver

DeltandWestStraitrankedtopthre,recordingRMB1,647.24bilion,RMB1,455.15bilion

andRMB812.12bilion,andacountingfor28.80percent.,25.44percent.and14.20percent.

oftheGroup’stotaloans,respectively.AsforthedistributionofNPLs,theGroup’sNPLswere

mainlyconcentratedintheBohaiRim,WesternChinaswelasthePearlRiverDeltandthe

WestStrait,withthecombinedNPLbalancereachingRMB43.37bilion,acountingfor65.24

percent.ofthetotal.

IfanyoftheaboveregionsinwhichtheBankfacesconcentrationrisksexperiencesasignificant

downturn,whetherasaresultofglobaleconomicenvironmentchangeorotherwise,orinthe

eventhatheBankcanotacuratelyevaluateorcontrolthecreditrisksofborowerslocatedin

anyoftheaboveregions,theBank’sasetquality,financialconditionandresultsofoperations

maybematerialyandadverselyafected.

TheBank’srealestate-relatedloansandloanstogovernmentfinancingplatformsare

subjectovariousrisks,whichmayleadtoadeteriorationinthevalueofitsloanportfolio.

Realestaterelatedloans

TheBank’srealestate-relatedloansconsistofcorporateloansextendedtorealestatecustomers,

corporateloanswithrealestateascolateralandhousingmortgageloans,whichmaybeafected

bythevariousrisksrelatedtotherealestatemarket.Asat31December2024,thebalanceofthe

Group’scorporaterealestate-relatedfinancingthatborecreditrisk,includingloans,bank

aceptancedrafts,letersofguarante,bondinvestmentandnon-standardinvestments,stodat

RMB371.67bilion,anincreaseofRMB26.43bilionfromthebalanceasat31December2023.

Amongthese,thebalanceofcorporaterealestateloanswasRMB285.15bilion(acountingfor

9.81percent.oftheGroup’stotalcorporateloans),anincreaseofRMB25.79bilionas

comparedtothebalanceasat31December2023.Asat31December2024,thebalanceof

personalhousingmortgageloansoftheBankreachedRMB1,032.58bilion,anincreaseof

RMB61.41bilionfromthebalanceasat31December2023.

DespitetheBank’sefortokepthequalityofitsrealestate-relatedloanstable,any

significantadversechange,whetherasaresultofchangesinmacroeconomicenvironment,fierce

volatilityintherealestatemarket,changesinthenationalaws,regulatoryandpolicy

environmentorothereconomicoregulatorychanges,maymaterialyandadverselyafecthe

incrementandqualityoftheBank’srealestate-relatedloans,and,thus,theBank’sasetquality,

financialconditionandresultsofoperationsmaybematerialyandadverselyafected.

Loanstogovernmentfinancingplatforms

TheBankproactivelyimplementednationalpoliciesonfinancialsuportfordefusingdebtrisks

ofinancingplatforms,resolvedrisksinanefectiveandorderlymaner,andpromotedthe

steadyandhealthydevelopmentoftheconomy.Asthenationalfundsfordebtresolutionwere

gradualyinplace,theBank’sfundsincludedintothemanagementoflocalgovernmenthiden

debtsdecreasedfast.Asat31December2024,itsbalanceoflocalgovernmenthidendebts

stodatRMB137.90bilion(on-balanceshetloans),downbyRMB71.97bilionfromthe

balanceasat31December2023.

AsubstantialportionoftheBank’sloansaresecuredbycolateralorguarantes.Any

significantdeclineinthevalueofthecolateralordeteriorationofthefinancialconditionof

theguarantorsoranyfailurebytheBanktoenforceitsrightsasacreditormayadversely

afectitsfinancialconditionandresultsofoperations.

Asat31December2024,38.41percent.oftheGroup’sloansweresecuredbycolateral.Any

significantdeclineinthevalueofthecolateralsecuringitsloans,whetherasaresultof

macroeconomicpolicymeasures,generaleconomicdownturnorotherwise,may,should

borowersdefaultontheirloans,resultinadecreaseintherecoveryrateandtheBankmayned

tomakeaditionalalowanceforimpairmentloses.Moreover,undercertaincircumstances,the

Bank’srightstothecolateralsecuringitsloansmayhavelowerprioritythanothercreditors.In

adition,theproceduresforliquidatingorotherwiserealisingthevalueofcolateralprovidedby

theborowersinthePRCcanbeprotractedand/orultimatelyunsucesful,asthenforcement

procesinthePRCmaybedificultforlegalandpracticalreasons.Basedontheforegoing

reasons,theBankmaybeunabletorealisethexpectedvalueoncolateralinatimelymaner

oratal.

AcertainportionoftheBank’sloansarebackedbyguarantesprovidedbyrelatedpartiesofthe

borowersorathirdparty,wheretheremaybenocolateral.Asat31December2024,18.30per

cent.oftheGroup’sloanswereguaranted.Asignificantdeteriorationinthefinancialcondition

oftheguarantorsmaysignificantlylimitheamountstheBankmayrecoverfromthemshould

theloansbeindefaultbytheborowers.Moreover,theBankisubjectotheriskofguarantes

beingdemedinvalidbyacourtifaguarantorfailstosatisfytherequirementsofthePRClaws

undercertaincircumstances.

IftheborowerslosetheirepaymentabilityandtheBankfailstorealisethefulvalueonalor

aportionofthecolateralsecuringitsloansorguarantesinatimelymaner,theBank’saset

quality,financialconditionandresultsofoperationsmaybeadverselyafected.

TheBankfacesrisksinrelationtoitsoperatinglicences.

ThePRCregulatoryauthoritiescurentlyrequirethesegregationoftheoperationsofbanks,

securitiescompaniesandinsurancecompanies.Consequently,asacomercialbank,theBank’s

businescopeisunderstrictrestrictionandmustbeconductedinacordancewith

corespondingoperatinglicences.TheBank’soperatinglicencespermititoperateasa

ful-rangecomercialbank.However,ifregulatorypoliciesareamendedinfuture,orthe

permitedbusinescopeofinancialinstitutionsisamendedorexpanded,theBankmaynotbe

abletobtainewoperatinglicencesinatimelymaner,whichmayresultinlosofbusines

andwhichmaythereforehaveamaterialandadversefectontheBank’scompetitivenes.

Furthermore,inordertobtainewoperatinglicences,theBankmaynedtoincrease

investmentinresearchandevelopment,operationmanagementandinfrastructures,whichmay

inturnincreaseitsoperatingcosts.

TheBank’sexpandingrangeofproductsandservicesexposesitonewrisks.

TheBankhasexperiencedrapidexpansioninrecentyears,andintendstocontinuetoexpandthe

rangeofitsproductsandservices.Whilecontributingtoitsresultsofoperations,expansionof

theBank’sbusinesactivitiesalsoexposesitoanumberofrisksandchalenges,including:

(cid:129)theBankmayhaveinsuficientexperienceincertainewbusinesareasand,therefore,the

Bankmaynotcompetefectivelyintheseareas;

(cid:129)theBankmayfailtobtainregulatoryaprovalforitsnewproductsorservices;

(cid:129)theBankcanotasurepotentialinvestorsthatitsnewbusinesactivitieswilmetits

expectationsofprofitability;

(cid:129)theBankmaynotbeabletohireaditionalqualifiedpersonel;and

(cid:129)theBankmustcontinualyenhancethecapabilityofitsriskmanagementandupgradeits

informationtechnology(“IT”)systemstosuportabroaderangeofbusinesactivities.

IftheBankisunabletoachievethexpectedresultsinewbusinesareasduetoanyofthe

aboveorotherfactors,theBank’sbusines,resultsofoperationsandfinancialconditionmaybe

materialyandadverselyafected.Inadition,iftheBankfailstopromptlyidentifyandexpand

intonewbusinesareastometincreasingcustomerdemandforcertainproductsandservices,

theBankmayfailtomaintainitsmarketshareorlosesomeofitsexistingcustomers.

TheBankhasexpandeditsbusinestojurisdictionsotherthanthePRC,whichas

increasedthecomplexityoftherisksthatitfaces.

TheBankhasinrecentyearsbenimplementingitsinternationalisationstrategyandpromoting

itsinternationalisedoperations.TheBank’sexpansionintomultiplejurisdictionsexposesitoa

newvarietyofregulatoryandbusinesrisks,suchasinterestraterisks,creditrisks,regulatory

andcompliancerisks,reputationalrisksandoperationalrisksuniquetothoseforeign

jurisdictions.Regulatorsofthosejurisdictionshavethepowertobringadministrativeorjudicial

procedingsagainstheBankoritsemployes,representatives,agentsandthird-partyservice

providers,whichcould,amongotherthings,resultinthesuspensionorevocationofoneor

moreoftheBank’slicencesortheimpositionofceaseandesistorders,fines,civilpenalties,

criminalpenaltiesorotherdisciplinaryactionsagainstheBank.

AnyfailuretomanagefectivelytherisksasociatedwiththeBank’sinternationalised

operationsmayhaveamaterialandadversefectontheBank’sbusines,financialcondition

andresultsofoperations.

TheBankisubjectocreditrisksasociatedwithitsof-balanceshetcomitmentsand

guarantes.

Inthenormalcourseofitsbusines,theBankmakescomitmentsandguaranteswhicharenot

reflectedasliabilitiesonitsbalanceshet,includingtheprovisionofinancialguarantesand

letersofcreditoguarantetheperformanceofitscustomerstothirdpartiesandtheprovision

ofbankaceptances.Asat31December2024,theGroup’sof-balanceshetcreditcomitments

totaledRMB2,319.55bilion.TheBankisubjectocreditrisksonitscomitmentsand

guarantesbecausecertainofitscomitmentsandguarantesmaynedtobefulfiledasa

resultofnon-performancebyitscustomers.IftheBankisnotabletocompelitscustomersto

performtheirobligationsortobtainrepaymentfromitscustomersinrespectofthese

comitmentsandguarantes,theBank’sbusines,financialconditionandresultsofoperations

maybematerialyandadverselyafected.

TheBankisubjectorisksasociatedwithitsderivativetransactions.

TheBankentersintoswaps,optionsandotherderivativearangementsprimarilyforhedging

purposesand,toaleserextent,onbehalfofitscustomers.Fortheyearended31December

2024,thenominalamountofthederivativesoftheGrouptotaledRMB9,374.18bilion.The

Bankisubjectomarketandoperationalrisksasociatedwiththesearangements.Withrespect

toderivativetransactionsonbehalfofitscustomers,theBankisalsoexposedtotheriskofits

customers’failuretoconsumatetransactionswiththeBank.Atpresent,theregulationofthe

PRC’sderivativemarketistilunderdevelopmentandrequiresfurtherimprovementandthe

PRCcourtslackexperienceindealingwithderivative-relatedcases,bothofwhichfactors

increasetherisksofthederivativetransactionsintowhichtheBankenters.Asaresult,theBank

entersintoreversetransactionswithcertaincounterpartiesoastominimisethecreditrisks

asociatedwithitsderivativetransactions.However,theBankcanotasurepotentialinvestors

thathecounterpartieswithigh-riskexposurewilperformunderthecontractsandpaythe

contractualamountuponmaturityofthederivativecontractsasagred.Anysignificantloses

theBankmayincurasaresultofthederivativetransactionstheBankentersintomayhavea

materialandadversefectontheBank’sfinancialconditionandresultsofoperations.

TheBank’sprovisioningpoliciesandloanclasificationmaybediferentincertainrespects

fromthoseaplicabletobanksinothercountries.

TheBankdeterminesthelevelofalowanceforimpairmentloses,andrecognisesanyrelated

provisionsmadeunderIFRS9,andtherelevantloanimpairmentregulationsofacounting

standardsofthePRC.Itsprovisioningpoliciesmaybediferentincertainrespectsfromthoseof

bankswhichdonotasesloansunderIFRS9.Asaresult,itsalowanceforimpairmentloses,

asdeterminedunderIFRS9,maydiferfromthosethatwouldbereportedifotheracounting

standardsorpolicieswereused.

TheBankalsoclasifiesitsloansas“pas”,“specialmention”,“substandard”,“doubtful”and

“los”byusingthefive-categoryclasificationsystemacordingtotherelevantPRCBanking

RegulatoryAuthority’srequirements.Thefive-categoryclasificationsystemisparticulartothe

bankingindustryinthePRC,andmaybediferentincertainrespectsfromthoseusedincertain

othercountriesoregions,ifany.Asaresult,thefive-categoryclasificationsystemaybe

incomparablewithotherclasificationsystems,andmayreflectadiferentdegreofriskthan

whatwouldbereportedinothercountries.

ConsolidatedquarterlyfinancialinformationoftheBankhasnotbenauditedoreviewed.

Whereconsolidatedquarterlyfinancialinformationisincorporatedbyreferenceintothis

OferingCircular,noneofsuchconsolidatedquarterlyfinancialinformationinrespectofthe

thremonthsended31Marchandninemonthsended30Septemberofeachfinancialyearofthe

Bankhasbenauditedoreviewedbyanyauditorsandsuchfinancialinformationmaynot

providethesametypeorqualityofinformationasociatedwithinformationthathasben

auditedoreviewed.Potentialinvestorsmustexercisecautionwhenusingsuchdatatoevaluate

theBank’sfinancialconditionandresultsofoperations,andmustnotplaceunduerelianceon

suchfinancialinformation.

TheBankcanotasurepotentialinvestorsthatitsriskmanagementandinternalcontrol

policiesandprocedurescanadequatelycontrolorprotectitagainstcredit,market,

operational,liquidityandotherisks.

TheBankhasignificantlyrevampedandenhanceditsriskmanagementandinternalcontrol

policiesandproceduresinrecentyears,detailsofwhicharesetoutintheparagraphsheaded

“DescriptionoftheBank–RiskManagement”and“DescriptionoftheBank–InternalControl”.

However,theBankcanotasurepotentialinvestorsthatitsriskmanagementandinternal

controlpoliciesandprocedureswiladequatelycontrolorprotectitagainstalcredit,market,

operational,liquidityandotherisks.Moreover,theBankcanotasurepotentialinvestorsthat

itsemployeswilbeabletoconsistentlycomplywithorcorectlyaplythesepoliciesand

procedures.

TheBank’sriskmanagementcapabilitiesandimplementationofinternalcontrolpoliciesand

proceduresarelimitedbytheinformation,tolsandtechnologiesavailabletotheBank.

Furthermore,itsabilitytocontrolrisksisconstrainedbytheaplicablePRClawsand

regulationsthatrestricthetypesofinancialinstrumentsandinvestmentsitmayhold.Ifthe

Bankisunabletoimplementefectivelythenhancedriskmanagementandinternalcontrol

policiesandproceduresoriftheBankcanotachieveitsintendedresultsofsuchpoliciesand

proceduresinatimelymaner,theBank’sbusines,financialconditionandresultsofoperations

maybematerialyandadverselyafected.

TheBank’sbusinesishighlydependentontheproperfunctioningandimprovementofits

informationtechnologyinfrastructure.

TheBankdependsonitsITinfrastructuretodeliverservicestoitscustomers,managerisks,

implementitsinternalcontrolsystemsandmanageandmonitoritsbusinesoperations.The

Bank’sbusinesgeneratesandprocesesalargequantityofpersonalandtransactiondata.Itis

alsosubjectodomesticandinternationalawsrelatingtothecolection,use,retention,security,

andtransferofpersonalyidentifiableinformation,withrespectoitscustomersandemployes.

TheBankfacesrisksinherentinhandlinglargevolumesofdatandinprotectingthesecurityof

suchdata.Inparticular,theBankfacesanumberofchalengesrelatingtodatafromtransactions

andotheractivitiesonitsplatforms,including:

(cid:129)protectingthedatainandhostedontheBank’system,includingagainstatacksonits

systembyoutsidepartiesorfraudulentbehaviourbyitsemployes;

(cid:129)adresingconcernsrelatedtoprivacyandsharing,safety,security,andotherfactors;and

(cid:129)complyingwithaplicablelaws,rules,andregulationsrelatingtothecolection,use,

retention,disclosure,orsecurityofpersonalinformation,includinganyrequestsfrom

regulatoryandgovernmentauthoritiesrelatingtosuchdata.

TheBankhasoveralplaningfordigitalriskcontrol,continuouslyimprovestheresearchand

developmentcapabilityofdigitalriskcontroltechnologythroughtheaplicationofbigdatand

artificialinteligencetechnologies.Itestablishedisasterbackupsystemsandrecoveryplans

coveringaltheimportantactivities,inordertominimiseanyunforeseninteruption.Insurance

coverisarangedtomitigatepotentialosesasociatedwithcertaindisruptivevents.However,

theBankdoesnotbackupalsystemsonareal-timebasis(whetherwithinthesamecityor

betwencities)andthefectivenesofitsback-upsystemdependsonwhethertheBankcan

sucesfulyimplementcomplexprocedureswiththesuportandcoperationofalunitswith

theBank.Asaresult,theBankcanotasurepotentialinvestorsthatitsbusinesactivitieswil

notbedisruptedifthereisapartialorcompletefailureofanyofitsmainITsystemsor

comunicationetworks.Suchfailurescouldbecausedby,amongotherthings,softwareflaws,

computervirusatacks,maliciousprogramsorsystemupgradeproblems.

Inadition,despitethefortsoftheBanktoensurethatalofitsemployesfolowstrictly

implementedprotocolswithrespectotheprotectionofcustomerinformationandoperational

data,themisapropriationofdatabytheBank’semployesorotherpeople,anysecuritybreach

causedbyunauthorisedacestoitsystems,oranydestructionorlosorcoruptionofdata,

software,hardwareorothercomputerequipmentcouldhaveamaterialandadversefectonthe

Bank’sbusines,resultsofoperationsandfinancialcondition.

TheBankstrivestoupgradeitsITsystemsonatimelyandcost-efectivebasis.Anyfailureto

sucesfulyandtimelyimproveorupgradeitsITsystemsmayleadtomalfunctioningor

slowdowninitsystems,whichinturnmayimpactitsabilitytoperatetometcustomers’

increasingdemandforcertainproductsandservices,andtheBank’sreputation,busines,

financialcondition,resultsofoperationsandprospectsmaybematerialyandadverselyafected.

Inadition,anysystemsfailureorsecuritybreachorlapsethatresultinthereleaseofuserdata

couldharmtheBank’sreputationandbrandand,consequently,itsbusines,inaditionto

exposingitopotentialegaliability.Anyfailure,orperceivedfailure,bytheBanktocomply

withitsprivacypoliciesorwithanyregulatoryrequirementsorprivacyprotection-relatedlaws,

rules,andregulationscouldresultinprocedingsoractionsagainstitbygovernmentalentities

orothers.TheseprocedingsoractionsmaysubjectheBanktosignificantpenaltiesand

negativepublicity,requiretheBanktochangeitsbusinespractices,increaseitscosts,and

severelydisruptitsbusines.

TheBankmaybeinvolvedinlegalandotherdisputesfromtimetotimearisingoutofits

operations,andmayfacepotentialiabilitiesasaresult.

TheBankisofteninvolvedinlegalandotherdisputesforavarietyofreasons,whichgeneraly

arisebecauseitsekstorecoveroutstandingamountsfromborowersorbecausecustomersor

otherclaimantsbringactionsagainstit.Themajorityofthesecasesariseintheordinarycourse

oftheBank’sbusines.WheretheBankasesesthathereisaprobableriskoflos,itisthe

Bank’spolicytomakeprovisionsforthelos.TheBankhasmadeprovisionswithrespecto

pendinglegalprocedingsandotherdisputesagainstit.

However,therecanbenoasurancethathejudgmentsinanyofthelitigationinwhichtheBank

isinvolvedwouldbefavourabletoit,orthatheBank’slitigationprovisionsareadequateto

coverthelosesarisingfromlegalprocedingsorotherdisputes.Inadition,iftheBank’s

asesmentoftheriskchanges,itsviewonprovisionswilalsochange.Itisexpectedthathe

Bankwilcontinuetobeinvolvedinvariouslegalandotherdisputesinthefuture,whichmay

subjectitoaditionalrisksandloses.Thesedisputesmayrelateto,amongothers,theamount

oftheunpaidobligationsoftherelevantborowers,thetermsforsuchborowerstoperform

theirobligationsandtheaplicationofstatuteoflimitations.Inadition,theBankmayhaveto

advancelegalcostsasociatedwithsuchdisputes,includingfesrelatingtoapraisal,

notarisation,auction,executionandlegalcounsel’services.Theseandotherdisputesmaylead

tolegal,administrativeorotherprocedingsandmayresultindamagetothereputationofthe

Bank,aditionaloperationalcostsandadiversionofresourcesandmanagement’satentionfrom

itscorebusinesoperations.Therecanbenoasurancethatheoutcomesofutureorcurent

disputesorprocedingswilbefavourabletotheBank.Iftheoutcomesofdisputesor

procedingsareunfavourabletotheBank,theBank’sbusines,financialconditionandresultsof

operationsmaybematerialyandadverselyafected.

TheBankmaynotdetectandpreventfraudorothermisconductcomitedbyits

employesorthirdpartiesinatimelymaner.

Asat31December2024,theBankhad1,470outletsin153largeandmedium-sizedcitiesin

Chinandsevenafiliatesathomeandabroad.AlthoughtheBankhascontinuouslysoughto

enhancemanagementandsupervisionofitsbranchesandsub-branches(includingputingin

placepoliciesonemployeconduct),asthebranchesandsub-brancheshaverelatively

significantautonomyintheiroperationsandmanagementwithinthescopeofauthorisation,the

Bankcanotasurepotentialinvestorsthatitcanalwaystimelydetectorpreventoperationalor

managementproblemswithinitsbranchesandsub-branches.

FraudorothermisconductcomitedbytheBank’scurentorpastemployesorthirdparties

couldsubjectitofinancialosesandsanctionsimposedbygovernmentauthoritieswhichmay,

athesametime,causeseriousdamagetoitsreputation.Suchmisconductmayinclude,among

otherthings,fraud,alegationsofcoruption,theft,mishandlingofcustomerdeposits,

misapropriationofcustomers’fundsandmisapropriationofbankfunds.Inadition,penalties

orgovernmentsanctionsmaybeimposedontheBankasaresultofitscurentorpast

employes’misconduct.Ifsuchmisconductocurs,theBankmayberequiredtocoperatewith

therelevantauthoritiesinitsinvestigationsdirectedagainstanycurentorpastemployesor

thirdpartiesandtheBank’sreputation,resultsofoperationsandfinancialconditionmaybe

materialyandadverselyafectedarisingfromtheilegalactionstakenorasaresultofany

negativepublicityarisingfromsuchilegalactionsbyitscurentorpastemployesorbythird

parties.

TheBankmaynotbeabletodetectmoneylaunderingorotherilegalorimproper

activities,whichcouldexposeitoaditionaliabilityandnegativelyafectitsbusines.

TheBankisrequiredtocomplywithaplicableanti-moneylaundering,anti-terorismlawsand

otheregulationsinthePRCandotherjurisdictionswhereithasoperations,whichrequireit,

amongotherthings,toadoptandenforce“knowyourcustomer”policiesandproceduresandto

reportsuspiciousandlargetransactionstotheaplicableregulatoryauthoritiesindiferent

jurisdictions.

TheBankhasadoptedpoliciesandproceduresaimedatdetectingandpreventingtheuseofits

bankingnetworkformoneylaunderingactivitiesandbyterorists,terorist-relatedorganisations

andindividuals.However,duetothefacthatsuchpoliciesandproceduresarenewlyadopted,

theBankmaynotentirelyeliminateinstanceswheretheBank’sfacilitiesmaybeusedbyother

partiestoengageinmoneylaunderingandotherilegalandimproperactivities.Tothextenthe

Bankmayfailtofulycomplywithaplicablelawsandregulations,therelevantgovernment

authoritiestowhomitreportsinthevariousjurisdictionshavethepowerandauthorityto

imposefinesandotherpenaltiesonit.Inadition,moneylaunderingorotherilegalorimproper

activitiesconductedbytheBank’scustomersusingitsfacilitiesmayhaveamaterialandadverse

efectontheBank’sbusinesoperations,financialconditionandreputation.

TheBankmaynotbeabletosatisfytheregulatoryrequirementsoncapitaladequacyratios

inthefuture.

Asat31December2024,theGroup’scoretier-onecapitaladequacyratio,tier-onecapital

adequacyratioandcapitaladequacyratiowere9.72percent.,11.26percent.and13.36per

cent.,respectively.Althoughthesecapitaladequacyratioswereincompliancewiththe

aplicablePRCrequirements,certaindevelopmentscouldafectheBank’sabilitytosatisfy

aplicablecapitaladequacyrequirementsinthefuture.

On7June2012,therelevantPRCBankingRegulatoryAuthoritypromulgatedtheProvisional

MeasuresforCapitalManagementofComercialBanks(商业银行资本管理办法(试行)(the

“ProvisionalCapitalManagementRegulations”),whichcameintoefecton1January2013,

andimplementedBaselIinthePRC.TheProvisionalCapitalManagementRegulations

clarifiedandrefinedthecategorisationsandmethodsofmeasurementinrespectofthecapital

instrumentsofcomercialbanks.AcordingtotheProvisionalCapitalManagement

Regulations,theregulatoryrequirementsonthecapitaladequacyratiofcomercialbankshal

covertherequirementsontheminimumcapital,reservecapitalandcounter-cyclicalcapital,

suplementarycapitalforsystemicalyimportantbanks,aswelasecondpilar-capital,which

shalbereachedbycomercialbanksbythendof2018.Inordertosmothlytransitiontothe

fuladoptionoftheProvisionalCapitalManagementRegulations,therelevantPRCBanking

RegulatoryAuthoritypromulgatedtheCircularonIsuesConcerningtheImplementationofthe

ProvisionalAdministrativeMeasuresonCapitalManagementofComercialBanksin

TransitionalPeriod(中国银监会关于实施《商业银行资本管理办法(试行)》过渡期安排相关事项

的通知)(the“TransitionalCircular”)on30November2012,pursuantowhichcomercial

bankshalreachtheminimumcapitalrequirementby1January2013.Withinthetransitional

periodforeachingrequiredtargets,theProvisionalCapitalManagementRegulationsandthe

TransitionalCircularequirecomercialbankstoformulateandimplementfeasibleplansfor

reachingcapitaladequacyratiotargetstepbystep,andsubmithesametotherelevantPRC

BankingRegulatoryAuthorityforaproval.On26October2023,theMeasuresforCapital

ManagementofComercialBanks(商业银行资本管理办法)(the“CapitalManagement

Regulations”)waspromulgated,whichcameintoefecton1January2024andreplacedthe

ProvisionalCapitalManagementRegulations.Alson26October2023,theCircularonIsues

ConcerningtheImplementationoftheMeasuresforCapitalManagementofComercialBanks

(国家金融监督管理总局关于实施《商业银行资本管理办法》相关事项的通知)waspromulgated,

whichaimedtosteadilypromotetheimplementationoftheCapitalManagementRegulationsand

cameintoefectonthesameday.

GiventherequirementofcapitaladequacyratioundertheCapitalManagementRegulations,the

Bank’scapitaladequacymaybesubstantialyafected.AlthoughtheBankiscurentlyin

compliancewiththerequirementforcapitaladequacy,newrequirementsandregulationsmay

adverselyafectheBank’scompliancewithcapitaladequacyratios,anditisposiblethathe

Bankmayfacedificultiesinmetingtherequirementoftheregulationsregardingcapital

adequacy.

Inadition,certainregulatorydevelopmentsmayafectheBank’sabilitytomaintain

compliancewithcapitaladequacyrequirements,includingtheraisingofminimumcapital

adequacyratiosbytherelevantPRCBankingRegulatoryAuthorityandthechangesin

calculationsofcapitaladequacyratiosbytherelevantPRCBankingRegulatoryAuthority.Ifany

ofthesecircumstancesocurs,theBankmaybeunabletocomplywiththeregulatory

requirementsoftherelevantPRCBankingRegulatoryAuthority.

TherecanbenoasurancethatheBankwilbeabletometheserequirementsinthefutureat

altimesandanyfailuretometheserequirementsmayhaveamaterialandadversefecton

theBank’sbusines,financialconditionandresultsofoperations.

Inordertosuportitsteadygrowthandevelopment,theBankmaynedtoraisemorecapital

toensurethatitscapitalcomplieswithorexcedstheminimumregulatoryrequirement.The

Bank’scapital-raisingabilitymayberestrictedbytheBank’sfuturebusines,financialcondition

andresultsofoperations,theBank’screditrating,necesaryregulatoryaprovalsandoveral

marketconditions,includingthePRC’sandglobaleconomic,politicalandotherconditionsat

thetimeofcapitalraising.

TheBankisubjectovariousrisksinrelationtothePRCandoverseasregulatory

requirements.

TheBankisubjectoperiodicinspectionsandexaminationsrelatingtocompliancewiththe

relevantlaws,regulationsandguidelinesbyPRCregulatoryauthorities,includingtheMOF,the

PBOC,therelevantPRCBankingRegulatoryAuthority,SAMR,SAFEandthetaxauthoritiesat

diferentlevels,aswelasbyoverseasregulatoryauthoritiesforitsoverseasoperations.The

Bankcanot,however,asurepotentialinvestorsthatfuturexaminationsbyPRCorother

regulatoryauthoritieswouldnotresultinfinesandpenaltiesthatcouldmaterialyandadversely

afectitsreputation,busines,resultsofoperationsandfinancialcondition.

Fromtimetotime,theNAOconductsauditsonstate-controledenterprisesandpublishesthe

auditresults.IftheBankisfoundtohaveanymaterialmisconductornon-complianceinfuture

NAOaudits,itwilbesubjectofinesandotheradministrativepenalties,whichcouldmaterialy

andadverselyafectitsreputation,businesandprospects.

TheBank’soverseasbranches,subsidiariesandrepresentativeoficesaresubjectovarious

overseasregulatoryrequirementsaswelasperiodicinspections,examinationsandinquiries

conductedbyoverseasregulatoryauthoritiesinrespectofitscompliancewithsuch

requirements.TheBankcanotasurepotentialinvestorsthatitwilbeabletometalthe

aplicableregulatoryrequirementsandguidelines,orcomplywithaltheaplicableregulations

ataltimes.TheBankmaybesubjectosanctions,finesorotherpenaltiesinthefutureasa

resultofanynon-compliancewithlawsandregulations.Ifanysuchsanction,fineorother

penaltyisimposedontheBankforfailingtocomplywithaplicableregulatoryrequirementsor

guidelines,theBank’sbusines,financialcondition,resultsofoperationsandreputationmaybe

materialyandadverselyafected.

Inadition,thePRC,UnitedStates,EuropeanUnion,UnitedKingdom,HongKong,United

NationsSecurityCouncilandotheraplicablejurisdictionscurentlyimposevariouseconomic

sanctionsoncertaincountries,regions,teritories,entitiesandspecificsectorsincertain

countries,regionsorteritories.Thesesanctionsareintendedtoadresavarietyofpolicy

concerns,amongotherthings,denyingcertaincountries,andcertainindividualsandentities,the

abilitytosuportinternationalterorismandtopursueweaponsofmasdestructionandmisile

programes.Forexample,theUnitedStatescurentlyimposevariouseconomicsanctions

administeredbytheU.S.TreasuryDepartment’sOficeofForeignAsetsControl(“OFAC”)

whichaplyonlytoU.S.personsand,incertaincases,toforeignsubsidiariesofU.S.personsor

totransactionsinvolvingcertainitemsubjectoU.S.jurisdiction.OFACprohibitsuchpersons

fromdirectlyorindirectlyinvestingorotherwisedoingbusinesinorwithcertaincountries

(suchastheCrimearegion,Cuba,Iran,NorthKorea,Syria,DonetskandLuhansk)andwith

certainpersonsorbusinesesthathavebenspecialydesignatedbyOFACorotherU.S.

governmentagencies.Othergovernmentsandinternationaloregionalorganisationsalso

administersimilareconomicsanctions.Further,sanctionslawsaresubjectochange,sometimes

withlitleadvancenotice.IftheGroupisinthefuturedeterminedtohavengagedinany

prohibitedtransactionsorotherwiseviolatedaplicablesanctionsregulations,theGroupcould

besubjectopenaltiesandsanctionsanditsreputationandabilitytoconductfuturebusinesin

therelevantjurisdictionsmaybematerialyandadverselyafected.

Theuncertaintiesintheglobaleconomy,theglobalfinancialmarketsand,inparticular,in

thePRCcouldmaterialyandadverselyafecthefinancialconditionandresultsof

operationsoftheBankandtheGroup.

Theglobaleconomicslowdownandturmoilintheglobalfinancialmarketsthatstartedinthe

secondhalfof2008hadanegativeandlastingimpactontheworldeconomy,whichinturn

afectedthePRCrealestateindustryandmanyotherindustries.Subsequently,globalmarkets

andeconomiconditionswereadverselyafectedbythecreditcrisisinEurope,thecreditrating

downgradeoftheUnitedStatesandheightenedmarketvolatilityinmajorstockmarkets.

Folowingareferendumvoteon23June2016andaformalnoticegivenbytheUKtothe

EuropeanUnionon29March2017underArticle50oftheTreatyonEuropeanUnion,the

UnitedKingdomleftheEuropeanUnionon31January2020at11p.m.localtime(“Brexit”).

WithBrexitakingfulefectafter31December2020,economicrelationsbetwentheUnited

KingdomandtheremainingmembersoftheEuropeanUnionwilcontinuetoevolve,anditis

unclearhowBrexitwouldultimatelyafecthefiscal,monetaryandregulatorylandscapewithin

theUnitedKingdom,theEuropeanUnionandtherestoftheworld.

Itisexpectedthatheworldeconomyandfinancialmarketswilcontinuefaceuncertaintydue

tovariousconflicts,sanctions,marketdisruptions,sovereigndebtisues,inflation,political

unrestandtradewars.TheRuso-UkrainianconflictandtheconflictinIsraelandGazahave

causedvolatilityintheglobalmarketsandmayhaveanegativeimpactontheregionandthe

globaleconomies,especialyonthesectorsofoil,naturalgas,andfod.SeveralEuropean

countriestruglewithsovereigndebtproblemsandtheriskofdefaultorestructuring,which

mayafecthestabilityoftheurozoneandtheEuropeanUnion.Majoreconomiesaroundthe

worldhavexperiencedhighinflationlevelsasaresultofliberalmonetarypolicies,whichmay

erodethepurchasingpowerofconsumersandbusinesesandafecthegrowthprospects.

PoliticalunrestinvariouscountriesintheMidleEast,EasternEurope,andAfricahasresulted

ineconomicinstabilityanduncertainty,whichmayafecthesecurityandthedevelopmentof

theregions.China’seconomicgrowthasmoderateduetoweakenedexportsandthetradewar

withtheUnitedStates,whichasimposedsignificantarifsonChinesegodsandviceversa.

AlthoughapartialtradedealwasignedinJanuary2020,whichincludedsometarifrolbacks,

thetensionscontinuedtoescalate.In2025,theU.S.imposedaditionaltarifsonChinese

imports,reaching125percent.inApril,whileChinaretaliatedwithan84percent.tarifon

U.S.gods.Theseactionshavestrainedeconomicrelationsbetwenthetwocountries,impacting

boththeChineseandglobaleconomies.ThosetarifswerepausedafternegotiationsinGeneva

andLondonbuthefutureofthesetradetensionsremainsuncertain.

TheuncertaintiesintheglobalandthePRC’seconomiesmayadverselyafectheBank’s

financialconditionandresultsofoperationsinmanyways,including,amongotherthings:

(cid:129)duringaperiodofeconomicslowdown,thereisagreaterlikelihodthatmoreofthe

Bank’scustomersorcounterpartiescouldbecomedelinquentinrespectoftheirloan

repaymentsorotherobligationstotheBank,which,inturn,couldresultinahigherlevel

ofNPLs,alowanceforimpairmentlosesandwrite-ofs,alofwhichwouldadversely

afectitsresultsofoperationsandfinancialcondition;

(cid:129)theincreasedregulationandsupervisionofthefinancialservicesindustryinresponsetothe

financialcrisisincertainjurisdictionswheretheBankoperatesmayrestrictitsbusines

flexibilityandincreasecompliancecosts,whichmayadverselyafectitsbusines

operations;

(cid:129)thevalueoftheBank’sinvestmentsinthedebtsecuritiesisuedbyoverseasgovernments

andfinancialinstitutionsmaysignificantlydecline,whichmayadverselyafectitsfinancial

condition;

(cid:129)theBank’sabilitytoraiseaditionalcapitalonfavourableterms,oratal,couldbe

adverselyafected;and

(cid:129)tradeandcapitalflowsmayfurthercontractasaresultofprotectionistmeasuresbeing

introducedincertainmarkets,whichcouldcauseafurtherslowdownineconomiesand

adverselyafectheBank’sbusinesprospects.

TherecanbenoasurancethathePRC’seconomyortheglobaleconomywilmaintain

sustainablegrowth.Ifurthereconomicdownturnocursorcontinues,thebusines,resultsof

operationsandfinancialconditionoftheBankcouldbematerialyandadverselyafected.

ThePRC’seconomic,politicalandsocialconditions,aswelasgovernmentpolicies,could

afectheBank’sbusines,financialconditionandresultsofoperations.

AsubstantialmajorityoftheBank’sbusineses,asetsandoperationsarelocatedinthePRC.

Acordingly,theBank’sfinancialcondition,resultsofoperationsandbusinesprospectsare,to

asignificantdegre,subjectotheconomic,politicalandlegaldevelopmentsinthePRC.

ThePRCgovernmentexercisesignificantcontroloverthePRC’seconomicgrowthby

alocatingresources,setingmonetarypolicyandprovidingpreferentialtreatmentoparticular

industriesorcompanies.TheBankmaynotbenefitfromcertainsuchmeasures.ThePRC

governmentalsohasthepowertoimplementmacroeconomicontrolmeasuresafectingthe

PRC’seconomy.ThesemeasuresareaimedatbenefitingtheoveraleconomyofthePRC,but

someofthemayhavenegativefectsoncertainindustries,includingthecomercialbanking

industry.Forexample,theGroup’soperatingresultsmaybeadverselyafectedbygovernment

controlovercapitalinvestmentsorchangesintheinterpretationofandaplicationofaplicable

taxregulations.Inadition,inrecentyears,thePBOChasinstitutedbroadreformofthePRC’s

monetarypolicy.IftheGroupisunabletoadjustitsoperationsinacordancewiththese

reforms,itsbusines,financialcondition,andresultsofoperationscouldbematerialyand

adverselyafected.

ThePRChasbenoneoftheworld’sfastestgrowingeconomies,asmeasuredbyGDPgrowth,

inrecentyears.However,thePRCmaynotbeabletosustainsuchagrowthrate.IfthePRC’s

economyexperiencesadecreaseingrowthrateorasignificantdownturn,theunfavourable

businesenvironmentandeconomiconditionfortheBank’scustomerscouldnegativelyimpact

theirabilityorwilingnestorepaytheBank’sloansandreducetheirdemandfortheBank’s

bankingservices.TheBank’sfinancialcondition,resultsofoperationsandbusinesprospects

maybematerialyandadverselyafected.

TheBankisubjectothePRCgovernmentcontrolsoncurencyconversionandrisks

relatingtofluctuationsinexchangerates.

TheBankreceivesasubstantialmajorityofitsrevenueinRenminbi.Aportionofthisrevenue

mustbeconvertedintothercurenciesinordertometheBank’sforeigncurencyobligations.

Forexample,theBanknedstobtainforeigncurencytomakepaymentsofdeclared

dividends,ifany,onitsHshares.UnderthePRC’sexistingforeignexchangeregulations,by

complyingwithcertainproceduralrequirements,theBankwilbeabletoundertakecurent

acountforeignexchangetransactions,includingpaymentofdividends,withoutprioraproval

fromtheSAFE.However,inthefuture,thePRCgovernmentmay,atitsdiscretion,take

measurestorestrictacestoforeigncurenciesforcapitalacountandcurentacount

transactionsundercertaincircumstances.

ThevalueoftheRenminbiagainstheU.S.dolarandothercurenciesfluctuatesandisafected

by,amongotherthings,changesinthePRC’sandinternationalpoliticalandeconomic

conditionsandthePRCgovernment’sfiscalandcurencypolicies.AlthoughtheBankseksto

reduceitsexchangerateriskthroughcurencyderivativesorotherwise,itcanotasure

investorsthatitwilbeabletoreduceitsforeigncurencyriskexposurerelatingtoitsforeign

curency-dominatedasets.Inadition,therearelimitedinstrumentsavailablefortheBankto

reduceitsforeigncurencyriskexposureatreasonablecost.AnyapreciationoftheRenminbi

againstheU.S.dolaroranyotherforeigncurenciesmaymaterialyandadverselyafecthe

financialconditionsofcertainoftheBank’scustomers,particularlythosederivingsubstantial

incomefromexportingproductsorengaginginrelatedbusineses,andinturnafectheirability

toservicetheirobligationstotheBank.Furthermore,theBankisalsocurentlyrequiredto

obtaintheaprovaloftheSAFEbeforeconvertingsignificantsumsoforeigncurenciesinto

Renminbi.AlofthesefactorscouldmaterialyandadverselyafectheBank’sfinancial

condition,resultsofoperationsandcompliancewithcapitaladequacyratiosandoperational

ratios.

Anyforcemajeurevents,includingfutureocurenceofnaturaldisastersoroutbreaksof

contagiousdiseasesinthePRCandglobaly,mayhaveamaterialandadversefectonthe

Bank’sbusinesoperations,financialconditionandresultsofoperations.

Anyfutureforcemajeurevents,suchastheocurenceofnaturaldisastersoroutbreaksof

healthepidemicsandcontagiousdiseases,includingavianinfluenza,severeacuterespiratory

syndrome,orSARS,orswineflucausedbyH1N1virus,orH1N1Fluorvariantsthereof,or

COVID-19pandemic,maymaterialyandadverselyafectheBank’sbusines,financial

conditionandresultsofoperations.Posibleforcemajeureventsmaygiverisetoaditional

coststobebornebytheBankandhaveadversefectsonthequalityofitsasets,busines,

financialconditionandresultsofoperations.Anoutbreakofahealthepidemicorcontagious

diseasecouldresultinawidespreadhealthcrisisandrestricthelevelofbusinesactivityin

afectedareas,whichmayinturnadverselyafectheBank’sbusines.Thereisnoasurance

thatsuchoutbreakwilnotleadtodecreasedemandforservicestheBankprovides;noristhere

asurancethatheoutbreak’sadverseimpactonthePRCeconomyandtheBank’scustomerswil

notadverselyafecthelevelofnon-performingloans.

Moreover,thePRChasexperiencednaturaldisasterslikearthquakes,flodsandroughtinthe

pastfewyears.AnyfutureocurenceofseverenaturaldisastersinthePRCmayadversely

afectitseconomyand,inturn,theBank’sbusines.Therecanbenoguarantethatanyfuture

ocurenceofnaturaldisastersoroutbreaksofavianinfluenza,SARS,H1N1Fluorother

epidemics,orthemeasurestakenbythePRCgovernmentorothercountriesinresponsetoa

futureoutbreaksofavianinfluenza,SARS,H1N1Flu,COVID-19orotherepidemics,wilnot

seriouslyinteruptheBank’soperationsorthoseofitscustomers,whichmayhaveamaterial

andadversefectonitsbusines,financialconditionandresultsofoperations.

TheBankmaynotbeabletohire,trainoretainasuficientnumberofqualified

employes.

MostaspectsoftheBank’sbusinesaredependentonthequalityofitsprofesionalemployes.

TheBankdevotesconsiderableresourcestorecruitmentandstaf-training.However,theBank

facesincreasedcompetitioninrecruitingandretainingtheseindividuals,asotherbanksare

competingforthesamepolofpotentialemployes.ThelosofmembersoftheBank’senior

managementeamorprofesionalstafmaymaterialyandadverselyafectitsbusines,

customerbaseandresultsofoperations.

RISKSRELATINGTOTHEBANKINGINDUSTRY

TheBank’sbusinesandoperationsarehighlyregulated,anditsbusines,financial

condition,resultsofoperationsandfutureprospectsmaybematerialyandadversely

afectedbyregulatorychangesorothergovernmentalpolicies,includingtheir

interpretationandaplication.

TheBank’sbusinesandoperationsaredirectlyafectedbychangesinthePRC’spolicies,laws

andregulationsrelatingtothebankingindustry,suchasthoseafectingthextentowhichit

canengageinspecificbusineses,aswelaschangesinothergovernmentalpolicies.Sinceits

establishmentastheprimarybankingindustryregulatorasumingthemajorityofthebank

regulatoryfunctionsfromthePBOCin2003,therelevantPRCBankingRegulatoryAuthority

haspromulgatedaseriesofbankingregulationsandguidelines.Thebankingregulatoryregime

inthePRCiscurentlyundergoingsignificantchanges,mostofwhichareaplicabletothe

Bankandmayresultinaditionalcostsorestrictionsonitsactivities.Forinstance,inMarch

2011,therelevantPRCBankingRegulatoryAuthority,thePBOCandtheNDRCjointlyisueda

noticestipulatingthecancelationof34servicefesclasifiedunder11categoriesofdomestic

comercialbanksefectivefrom1July2011.On14February2014,theNDRCandtherelevant

PRCBankingRegulatoryAuthorityjointlyisuedMeasuresfortheAdministrationoftheService

PricesofComercialBanks(the“Measure”),whichcameintoefecton1August2014.

AcordingtotheMeasure,thepricesofbasicbankingservicesthatarewidelyusedbyclients

andhavesignificantinfluenceonthePRC’seconomicdevelopmentshalbesubjectothe

guidanceordeterminationofthegovernment.TheNDRCandtherelevantPRCBanking

RegulatoryAuthorityalsojointlyisuedacircularonPrintingandDistributingtheCatalogueof

Government-guidedandGovernment-determinedPricesforServicesProvidedbyComercial

Banks(the“Catalogue”).

AcordingtotheCatalogue,thepricesofbasicfinancialservicesprovidedbycomercialbanks

forbankclientshalbesubjectogovernmentguided-pricesandgovernmentpricing.Such

basicfinancialservicesincludepartofcomercialbanks’serviceitems,suchaswiretransfer,

remitancebycash,encashmentandbils,andspecifichargeitemsandchargingstandardshal

besubjectotheCatalogue.Therecanbenoasurancethathepolicies,lawsandregulations

governingthebankingindustrywilnotchangeinthefutureorthatanysuchchangeswilnot

materialyandadverselyafectheBank’sbusines,financialconditionandresultsofoperations,

norcantheBankasureinvestorsthatitwilbeabletoadaptoalsuchchangesonatimely

basis.Inadition,theremaybeuncertaintiesregardingtheinterpretationandaplicationofnew

policies,lawsandregulations.Failuretocomplywiththeaplicablepolicies,lawsand

regulationsmayresultinfinesandrestrictionsontheBank’sactivities,whichcouldalsohavea

significantimpactonitsbusines,financialconditionandresultsofoperations.

TheBank’sbusinesandoperationsaredirectlyafectedbychangesinthePRC’spolicies,laws

andregulationsrelatingtothebankingindustry,suchasthoseafectingthextentowhichit

canengageinspecificbusineses,aswelaschangesinothergovernmentalpolicies.Therecan

benoasurancethathepolicies,lawsandregulationsgoverningthebankingindustrywilnot

changeinthefutureorthatanysuchchangeswilnotmaterialyandadverselyafectheBank’s

busines,financialconditionandresultsofoperations,norcantherebeanyasurancethathe

Bankwilbeabletoadaptoalsuchchangesonatimelybasis.Inadition,theremaybe

uncertaintiesregardingtheinterpretationandaplicationofnewpolicies,lawsandregulations,

whichmayresultinpenaltiesandrestrictionsontheBank’sactivities,whichmayhavea

materialandadversefectontheBank’sfinancialconditionandresultsofoperations.

TheBankisubjectochangesininterestratesandothermarketrisks,andtheBank’s

abilitytohedgemarketrisksislimited.

Aswithmostcomercialbanks,theBank’sresultsofoperationsdependtoagreatextentonits

netinterestincome.Fortheyearsended31December2022,2023and2024,theGroup’snet

interestincomerepresented71.36percent.,69.82percent.and68.79percent.ofitsoperating

income,respectively.InterestratesinthePRChistoricalywerehighlyregulatedbuthaveben

gradualyliberalisedinrecentyears.UnderformerPBOCregulations,comercialbanksinthe

PRCcanotsetinterestratesabove150percent.oftherelevantPBOCbenchmarkratefor

RMB-denominatedeposits.Therealsousedtobearestrictionwithrespectothelowerlimitof

theinterestratesforRMB-denominatedeposits.However,thePBOCpromulgatedtheNotice

onFurtherPromotingtheMarket-orientedReformofInterestRateson19July2013,eliminating

suchrestrictiononRMB-denominatedloans,exceptforesidentialmortgageloans.Asat20

August2020,theceilingonprivatelendinginterestratehasbensignificantlyloweredtofour

timesone-yearLPR(13.8percent.,anouncedbyNationalInterbankFundingCenteron20May

2024)fromthepreviousceiling,whichwasetbetwen24percent.and36percent.Thereisno

asurancethatheceilingonprivatelendinginterestrateswilnotbefurtherloweredinthe

future,noristhereasurancethatsuchadjustmentsininterestratecapswilnothaveamaterial

adverseimpactontheBank’sbusines,financialconditionandresultsofoperations.

ThePBOCmayfurtherliberalisethexistinginterestraterestrictionsonRMB-denominated

loansandeposits.Ifthexistingregulationsweresubstantialyliberalisedoreliminated,

competitioninthePRC’sbankingindustrywouldlikelyintensifyasthePRC’scomercial

banksektofermoreatractiveratestocustomers.FurtherliberalisationbythePBOCwould

resultinthenarowingofthespreadintheaverageinterestratesbetwenRMB-denominated

loansandRMB-denominatedeposits,therebymaterialyandadverselyafectingtheBank’s

resultsofoperations.Furthermore,theBankcanotasureinvestorsthatitwilbeabletoadjust

thecompositionofitsasetandliabilityportfoliosanditspricingmechanismtoenableito

efectivelyrespondtofurtherliberalisationofinterestrates.

Inrecentyears,thePBOChasadjustedthebenchmarkrateseveraltimes.Anyadjustmentsby

thePBOCinthebenchmarkinterestratesonloansordepositsorchangesinmarketinterest

ratesmayadverselyafectheBank’sfinancialconditionandresultsofoperationsindiferent

ways.Forexample,changesinthePBOCbenchmarkinterestratescouldafectheaverageyield

ontheBank’sinterest-earningasetsdiferentlyfromtheaveragecostonitsinterest-bearing

liabilities,andthereforemaynarowitsnetinterestmarginandreduceitsnetinterestincome,

whichmaymaterialyandadverselyafectitsresultsofoperationsandfinancialcondition.In

adition,anincreaseininterestratesmayresultinincreasesinthefinancecostsoftheBank’s

customersandthusreduceoveraldemandforloans,and,acordingly,adverselyafecthe

growthoftheBank’sloanportfolio,aswelasincreasetheriskofcustomerdefault.Asaresult,

changesininterestratesmayadverselyafectheBank’snetinterestincome,financialcondition

andresultsofoperations.

TheBankalsoundertakestradingandinvestmentactivitiesinvolvingcertainfinancial

instrumentsbothinthePRCandabroad.TheBank’sincomefromtheseactivitiesisubjecto

volatilitiescausedby,amongotherthings,changesininterestratesandforeigncurency

exchangerates.Forexample,increasesininterestratesgeneralyhaveanadversefectonthe

valueoftheBank’sfixedratesecuritiesportfolio,whichmaymaterialyandadverselyafectits

resultsofoperationsandfinancialcondition.Furthermore,asthederivativesmarkethasyeto

matureinthePRC,therearelimitedriskmanagementolsavailabletoenabletheBankto

reducemarketrisks.

ThegrowthrateofthePRC’sbankingindustrymaynotbesustainable.

TheBankexpectsthebankingindustryinthePRCtocontinuetogrowasaresultofanticipated

growthinthePRCeconomy,increasesinhouseholdincome,furthersocialwelfarereforms,

demographichangesandtheopeningofthePRC’sbankingindustrytoforeignparticipants.

However,itisnotclearhowcertaintrendsandevents,suchasthepaceofthePRC’seconomic

growth,thePRC’simplementationofitscomitmentoWTOacesion,thedevelopmentofits

domesticapitalandinsurancemarketsandtheongoingreformofitsocialwelfaresystemwil

afecthePRC’sbankingindustry.Inadition,therecanbenoasurancethathebanking

industryinthePRCisfrefromsystemicrisks.Consequently,therecanbenoasurancethathe

growthandevelopmentofthePRC’sbankingindustrywilbesustainable.

ThefectivenesoftheBank’screditriskmanagementisafectedbythequalityandscope

ofinformationavailableinthePRC.

TheinformationinfrastructureinthePRCisrelativelyundeveloped.PRCnationalindividual

andcorporatecreditinformationdatabasesdevelopedbythePBOCcomencedoperationin

2006.

However,duetotheirshortoperationalhistory,theycanonlyprovidelimitedinformation.

Therefore,theBank’sasesmentofthecreditriskasociatedwithaparticularcustomermaynot

bebasedoncomplete,acurateoreliableinformation.Untilthesenationwidecreditinformation

databasesbecomemorefulydeveloped,theBankhastorelyonotherpubliclyavailable

resourcesanditsinternalresources,whicharenotasextensiveorasefectiveasaunified

nationwidecreditinformationsystem.Asaresult,theBank’sabilitytomanagefectivelyits

creditriskand,inturn,itsasetquality,islimited,anditsfinancialconditionandresultsof

operationsmaybematerialyandadverselyafected.

TheBankfacesintensecompetitioninthePRC’sbankingindustryaswelascompetition

fromalternativecorporatefinancingandinvestmentchanels.

TheBankfacescompetitionfromothercomercialbanksandfinancialinstitutionsinalofits

principalareasofbusines.Itcompetesprimarilywithotherlargecomercialbanks,nationwide

jointstockcomercialbanks,citycomercialbanksandforeignbanksinthePRC.

Aditionaly,folowingtheremovalofregulatoryrestrictionsonitsgeographicalpresence,

customerbaseandoperatinglicenceinthePRCinDecember2006aspartofthePRC’sWorld

TradeOrganisationacesioncomitments,theBankhasexperiencedincreasedcompetition

fromforeigninvestedcomercialbanks.Furthermore,theMainlandandHongKongCloser

EconomicPartnershipArangement,theMainlandandMacauCloserEconomicPartnership

ArangementandtheCros-StraitsEconomicCo-operationFrameworkAgrement,whichpermit

HongKong,MacauandTaiwanbankstoperateinthePRC,havealsoincreasedcompetitionin

thePRC’sbankingindustry.

Moreover,thePRCgovernmenthas,inrecentyears,implementedaseriesofmeasuresdesigned

tofurtherliberalisethebankingindustry,including,amongothers,withrespectointerestrates

andnon-interest-basedproductsandservices,whicharechangingthebasisonwhichtheBank

competeswithotherbanksforcustomers.

TheBankcompeteswithmanyofitscompetitorsforsubstantialythesameloan,depositand

fe-basedbusinescustomers.SuchcompetitionmayadverselyafectheBank’sbusinesand

futureprospectsby,forexample:

(cid:129)reducingitsmarketshareinitsprincipalproductsandservices;

(cid:129)slowingdownthegrowthofitsloanordepositportfoliosandotherproductsandservices;

(cid:129)decreasingitsinterestincomeorincreasingitsinterestexpenses,therebyreducingitsnet

interestincome;

(cid:129)reducingitsfeandcomisionincome;

(cid:129)increasingitsnon-interestexpenses,suchasmarketingexpenses;

(cid:129)adverselyafectingitsasetquality;and

(cid:129)increasingcompetitionforseniormanagementandqualifiedprofesionalpersonel.

TheBankmayalsofacecompetitionfromdirectcorporatefinancing,suchastheisuanceof

securitiesinthedomesticandinternationalcapitalmarkets.Thedomesticsecuritiesmarkets

havexperienced,andarexpectedtocontinuetoexperience,expansionandgrowth.Ifa

substantialnumberofitscustomerschosealternativefinancingtofundtheircapitalneds,the

Bank’sbusines,financialconditionandresultsofoperationsmaybeadverselyafected.

Moreover,theBankmayfacecompetitionfromotherformsofinvestmentalternativesasthe

PRCcapitalmarketscontinuetodevelop.AsthePRCequityandbondmarketscontinueto

developandbecomemoreviableandatractiveinvestmentalternatives,theBank’sdeposit

customersmayelectotransfertheirfundsintoequityandbondinvestments,whichmayreduce

itsdepositbaseandadverselyafectitsbusines,financialconditionandresultsofoperations.

ThePRCregulatorshaveimplementedmeasuresrelatingtolendingtosmaland

medium-sizedenterprises(“SMEs”),andtheBankmaybesubjectofutureregulatory

changes.

TherelevantPRCBankingRegulatoryAuthorityhaspromulgatedaseriesofmeasures,including

theGuidanceonIsuesRelevantoEstablishingSpecialAgenciesforSmalBusinesLending

byBanks(《关于银行建立小企业金融服务专营机构的指导意见》)andtheNoticeonFurther

SuportingComercialBanks’ImprovementofFinancialServicestoSmalEnterprises(《关于

支持商业银行进一步改进小企业金融服务的通知》),toencouragebankinginstitutionsto

implementhePRCgovernment’smacroeconomicpolicies,and,inparticular,toproactively

suportcontinuedhealthyeconomicgrowthbyincreasinglendingactivitiestoSMEswhile

efectivelycontrolingrisk.

SMEsaremorevulnerabletofluctuationsinthemacroeconomycomparedwithlargenterprises,

duetorelativelylimitedcapital,managementorotheresourcesrequiredtocopewiththe

adverseimpactofmajoreconomicoregulatorychanges.Inadition,SMEsmaynotbeableto

providereliableinformationecesaryfortheBanktoasesthecreditrisksinvolved.Inthe

absenceofacurateasesmentoftherelevantcreditrisks,thenon-performingloansoftheBank

maybesignificantlyincreasedifitsSMEclientsareafectedbyeconomicoregulatory

changes,whichcouldmaterialyandadverselyafectheGroup’sbusines,resultsofoperations

andfinancialcondition.

Therecanbenoasurancethathepolicies,lawsandregulationsgoverningthePRCbanking

industry,inparticular,thoserelatingtolendingtoSMEs,wilnotchangeinthefutureorthat

anysuchchangeswilnotmaterialyandadverselyafectheBank’sbusines,financial

conditionandresultsofoperations.

CertainPRCregulationslimitheBank’sabilitytodiversifyitsinvestments,and,asa

result,adecreaseinthevalueofaparticulartypeofinvestmentmayhaveamaterial

adversefectonitsfinancialconditionandresultsofoperations.

AsaresultofthecurentPRCregulatoryrestrictions,substantialyaloftheBank’s

RMB-denominatedinvestmentasetsareconcentratedinalimitednumberofinvestments

permitedforPRCcomercialbanks,suchasPRCgovernmentalbonds,bondsisuedbyPRC

policybanksandbondsisuedontheinter-bankmarket.Theserestrictionstoacertainextent

limitheBank’sabilitytodiversifyitsinvestmentportfolioandtosekreturnsonits

investmentswhencomparedwiththoseofbanksinothercountriesortomanagetheBank’s

liquidityinthesamemanerasbanksinothercountries.Inadition,theBankisexposedtoa

certainlevelofriskasaresultoftheconcentrationofitsRMB-denominatedinvestment

securities.Forinstance,anydeteriorationofthefinancialconditionofcomercialbanksinthe

PRCwouldincreasetherisksasociatedwitholdingtheirbondsandsubordinatednotes.A

decreaseinthevalueofanyofthesetypesofinvestmentscouldhaveamaterialadversefect

ontheBank’sfinancialconditionandresultsofoperations.

TheGroupmaybeafectedbyBaselIReformsandrelatedreformsandtheFinancial

Institutions(Resolution)Ordinance.

TheBaselComitehasproposedanumberofundamentalreformstotheregulatorycapital

frameworkforinternationalyactivebankswhicharedesigned,inpart,toensurethatcapital

instrumentsisuedbysuchbanksfulyabsorblosesbeforetaxpayersarexposedtolos(the

“BaselIReforms”),theprincipalelementsofwhicharesetoutinitspapersdated16

December2010(asrevisedinJune2011)anditspresreleasedated13January2011.The

implementationoftheBaselIReformsinthePRCiscurentlyunderway.InaditiontoBasel

IReforms,manyjurisdictionshavestartedtoproposevariousreformsrelatedorsimilartothe

BaselIReforms.AstheGroupoperatesitsbusinesglobaly,itmaythesubjectofrecent

internationalregulatoryguidanceandproposalsforeform.

On7July2017,theFinancialInstitutions(Resolution)Ordinance(Cap.628)ofHongKong(the

“FIRO”)cameintoperation.TheFIROprovidesfor,amongotherthings,thestablishmentof

aresolutionregimeforauthorisedinstitutionsandotherwithinscopefinancialinstitutionsin

HongKongwhichmaybedesignatedbytherelevantresolutionauthorities,whichmayinthe

futureincludemembersoftheGroup(a“FIROGroupEntity”).Theresolutionregimeseksto

providetherelevantresolutionauthoritieswithadministrativepowerstobringaboutimelyand

orderlyresolutioninordertostabiliseandsecurecontinuityforafailingauthorisedinstitution

orwithinscopefinancialinstitutioninHongKong.Inparticular,inthecontextofaresolution

ofanyFIROGroupEntity,therelevantresolutionauthoritymayhavetheabilitytoresolveother

entitieswithintheGroupasiftheywerethemselvesawithinscopefinancialinstitutionforthe

purposesofFIROandtakecertainactionsandmakecertaindirectionsinrelationtosuch

entities.Anysuchactionscouldpotentialyafectcontractualandpropertyrightsrelatingtothe

relevantentity.TheimplementationofFIROremainsuntestedandcertaindetailsrelatingto

FIROhasbenorwilbesetouthroughsecondarylegislationandsuportingrules.Therefore,

theBankisunabletoasesthefulimpactofFIROonthefinancialsystemgeneraly,the

Bank’scounterparties,theBank,anyofitsconsolidatedsubsidiariesorotherGroupentities,the

Bank’soperationsand/oritsfinancialposition.

RISKSRELATINGTOTHENOTES

Potentialinvestorshouldnotplaceunduerelianceonthefinancialinformation

incorporatedbyreferencethatisnotaudited.

ThisOferingCircularincorporatesthemostrecentlypublishedunauditedbutreviewedinterim

consolidatedfinancialstatementsoftheBankpublishedfromtimetotimeafterthedateofthis

OferingCircularineachcasetogetherwithanyreviewreportspreparedinconection

therewith,aswelasthemostrecentlypublishedunauditedandunreviewedquarterlyfinancial

information,publishedsubsequentothemostrecentlypublishedconsolidatedfinancial

statementsoftheBank.TheBankpublishesitsconsolidatedquarterlyinterimreportsinrespect

ofthethremonthsended31Marchand30Septemberofeachfinancialyear.Acopyofthe

quarterlyinterimreportscanbefoundonthewebsiteoftheHongKongStockExchange.

Thequarterlyinterimfinancialinformationhasnotbenandwilnotbeauditedoreviewedby

theBank’sindependentauditors.Thequarterlyinterimfinancialinformationshouldnotberelied

uponbyinvestorstoprovidethesamequalityofinformationasociatedwithinformationthat

hasbensubjectoanauditoreview.Potentialinvestorshouldexercisecautionwhenusing

suchdatatoevaluatetheBank’sfinancialconditionandresultsofoperations.Thehalf-yearlyor

quarterlyinterimfinancialinformationshouldnotbetakenasanindicationofthexpected

financialconditionoresultsofoperationsoftheGroupfortherelevantfulfinancialyear.

Notesmaynotbeasuitableinvestmentforalinvestors.

EachpotentialinvestorinanyNotesmustdeterminethesuitabilityofthatinvestmentinlightof

itsowncircumstances.Inparticular,eachpotentialinvestorshould:

(i)havesuficientknowledgeandexperiencetomakeameaningfulevaluationoftherelevant

Notes,themeritsandrisksofinvestingintherelevantNotesandtheinformationcontained

orincorporatedbyreferenceinthisOferingCircularoranyaplicablesuplementothis

OferingCircularoranyPricingSuplement;

(i)haveacesto,andknowledgeof,apropriateanalyticaltolstoevaluate,inthecontextof

itsparticularfinancialsituation,aninvestmentintherelevantNotesandtheimpactsuch

investmentwilhaveonitsoveralinvestmentportfolio;

(i)havesuficientfinancialresourcesandliquiditytobearaloftherisksofaninvestmentin

therelevantNotes,includingwhereprincipalorinterestispayableinoneormore

curencies,orwherethecurencyforprincipalorinterestpaymentsisdiferentfromthe

potentialinvestor’scurency;

(iv)understandthoroughlythetermsoftherelevantNotesandbefamiliarwiththebehaviourof

anyrelevantindicesandfinancialmarkets;and

(v)beabletoevaluate(eitheraloneorwiththehelpofafinancialadviser)posiblescenarios

foreconomic,interestrateandotherfactorsthatmayafectitsinvestmentanditsabilityto

beartheaplicablerisks.

CertainSeriesofNotesmaybecomplexfinancialinstruments.Sophisticatedinvestorsgeneraly

donotpurchasecomplexfinancialinstrumentsastandaloneinvestments,butratherpurchase

suchcomplexfinancialinstrumentsasawaytoreduceriskorenhanceyieldwithanunderstod,

measured,apropriateaditionofrisktotheiroveralportfolios.Apotentialinvestorshouldnot

investinsuchNotesunlesithasthexpertise(eitheraloneorwiththehelpofafinancial

adviser)toevaluatehowsuchNoteswilperformunderchangingconditions,theresulting

efectsonthevalueofsuchNotesandtheimpacthisinvestmentwilhaveonthepotential

investor’soveralinvestmentportfolio.

TheFinancialInstitutions(Resolution)OrdinancemayadverselyafectheNoteswherethe

IsueristheHongKongBranch.

On7July2017,theFIROcameintoperation.TheFIROprovidesfor,amongotherthings,the

establishmentofaresolutionregimeforauthorisedinstitutionsandotherwithinscopefinancial

institutionsinHongKongwhichmaybedesignatedbytherelevantresolutionauthorities,which

mayincludetheBanktothextentheBankconductslicensedactivitiesinHongKong.The

resolutionregimesekstoprovidetherelevantresolutionauthoritieswithadministrativepowers

tobringaboutimelyandorderlyresolutioninordertostabiliseandsecurecontinuityfora

failingauthorisedinstitutionorwithinscopefinancialinstitutioninHongKong.Inparticular,

therelevantresolutionauthorityisprovidedwithpowerstoafectcontractualandpropertyrights

aswelaspayments(includinginrespectofanypriorityofpayment)thatcreditorswould

receiveinresolution.Thesemayinclude,butarenotlimitedto,powerstocancel,writeof,

modify,convertoreplacealorapartoftheNotesortheprincipalamountof,orintereston,

theNotes,andpowerstoamendoralterthecontractualprovisionsoftheNotes,alofwhich

mayadverselyafecthevalueoftheNotes,andtheholdersthereofmaysuferalosofsomeor

aloftheirinvestmentasaresultiftheIsueristheHongKongBranch.Intheventhathe

IsueristheHongKongBranch,holdersofNotesmaybecomesubjectoandboundbythe

FIRO.

TheimplementationofFIROremainsuntestedandcertaindetailsrelatingtoFIROwilbeset

outhroughsecondarylegislationandsuportingrules.Therefore,itisunabletoasestheful

impactofFIROonthefinancialsystemgeneraly,theBank’scounterparties,theBank,anyof

theBank’sconsolidatedsubsidiaries,theBank’soperationsand/orfinancialposition.

TheNotesaresubordinatedtoalsecuredebtofeachoftheIsuerandtheBank.

EachTrancheofNoteswilbeunsecuredandwilrankatleastequalywithalotherunsecured

andunsubordinatedindebtednes(exceptforcreditorswhoseclaimsarepreferedbylawand

whichrankaheadoftheholdersoftheNotes)thateachoftheIsuerandtheBankhasisuedor

mayisue.PaymentsundertheNotesarefectivelysubordinatedtoalsecuredebtofeachof

theIsuerandtheBanktothextentofthevalueoftheasetsecuringsuchdebt.

AsaresultofsuchsecurityinterestsgiventotherelevantIsuer’sandtheBank’secured

lenders,intheventofabankruptcy,liquidation,disolution,reorganisationorsimilar

procedinginvolvingtherelevantIsuerandtheBank,theafectedasetsoftherelevantIsuer

andtheBankmaynotbeusedtopaytheNoteholdersuntilafter:

(cid:129)alsecuredclaimsagainstheafectedentityhavebenfulypaid;and

(cid:129)iftheafectedentityisasubsidiaryoftheBank,alotherclaimsagainstsuchsubsidiary,

includingtradepayables,havebenfulypaid.

IntheventhatanIsuer(wheresuchIsuerisanofshorebranchoftheBank)failedto

fulyperformitsobligationsundertheNotes,performancebytheBankofsuchobligations

maybesubjectoregistrationwithorverificationbythePRCgovernmentauthorities.

AcordingtotheLawofthePeople’sRepublicofChinaonComercialBanks(中华人民共和国

商业银行法)andthecircularisuedbythePBOCdated7August1995,named“Replyonthe

IsuesRegardingtheCivilLiabilitiesoftheBranchesofComercialBanks”(关于对商业银行

分支机构民事责任问题的覆函),intheventhatabranchofacomercialbankfailstofuly

performitsobligationstothextentoftheasetsofthebranch,suchcomercialbankshal

fulfilsuchobligationstothextenthathebranchasfailedtoperformthem.

Therefore,intheventaBranchIsuerisunabletordoesnotperformitsobligationsunderthe

Notes,theBankwilasumealcivilobligationsofsuchBranchIsuerundertheNotes.The

remitanceofundsoutsidethePRCbytheBankinordertoperformsuchobligationsmaybe

subjectoregistrationorverificationoftheSAFE.

AnactivetradingmarketfortheNotesmaynotdevelop.Notesisuedunderthe

Programewilbenewsecuritieswhichmaynotbewidelydistributedandforwhichthere

iscurentlynoactivetradingmarket(unlesinthecaseofanyparticularTranche,such

TrancheistobeconsolidatedwithandformasingleserieswithaTrancheofNoteswhich

isalreadyisued).

TheDealersarenotobligedtomakeamarketinanyTrancheofNotesandanysuch

market-making,ifcomenced,maybediscontinuedatanytimeathesolediscretionofthe

Dealers.Therefore,investorsmaynotbeabletoseltheirNoteseasilyoratpricesthatwil

providethemwithayieldcomparabletosimilarinvestmentsthathaveadevelopedsecondary

market.Inadition,evenifamarketdevelopsfortheNotes,itmaynotbeliquidandtheholders

oftheNotesmayencounterdificultiesinselingthoseNotes.Suchlackofliquiditymayresult

ininvestorsuferinglosesontheNotesinsecondaryresalesregardlesoftheperformanceof

theBank.Inadition,tothextenthatheBankisnotabletobtainormaintainalistingand

quotationofanyTrancheofNotesthatarelistedontheHongKongStockExchangeorany

otherstockexchange,thesustainabilityandliquidityofsuchNotesmaybeadverselyafected.

Themarketforinvestmentgradehasbensubjectodisruptionsthathavecausedvolatilityin

pricesofsecuritiesimilartotheNotesisuedunderthePrograme.IfaTrancheofNotesis

isuedtoasingleinvestororalimitednumberofinvestors,thismayresultinanevenmore

iliquidorvolatilemarketinsuchNotes.Acordingly,thereisnoasuranceastothe

developmentorliquidityofanytradingmarket,orthatdisruptionswilnotocur,forany

particularTrancheofNotes.

TherecouldbeconflictsofinterestarisingoutofthediferentrolesplayedbytheBankand

itsubsidiaries,andtheBank’sotheractivitiesmayafecthevalueoftheNotes.

TheBank’subsidiaryisapointedasanArangerandDealerforthePrograme.TheBankor

itsubsidiariesmayalsoisueothercompetingfinancialproductswhichmayafecthevalueof

theNotes.Investorshouldalsonotethatpotentialandactualconflictsofinterestmayarise

fromthediferentrolesplayedbytheBankanditsubsidiariesinconectionwiththeNotes,

andtheconomicinterestsineachrolemaybeadversetotheinvestors’interestsintheNotes.

AlthoughtheBankhasinternalcontrolpoliciesandprocedurestominimiseanypotential

conflictofinterest,theBankowesnodutytoinvestorstoavoidsuchconflicts.

Investorshalbeawareofthefectofchangeoflaw.

TheTermsandConditionsoftheNotesaregovernedbyEnglishlaw.Noasurancecanbegiven

astotheimpactofanyposiblejudicialdecisionorchangetoEnglishlaw,orthelawsas

specifiedinthePricingSuplement,oradministrativepracticesafterthedateofthisOfering

Circular.

CreditRatingsmaynotreflectalrisks,andanycreditratingoftheNotesmaybe

downgradedorwithdrawn.

OneormoreindependentcreditratingagenciesmayasigncreditratingstoanisueofNotes.

Theratingsmaynotreflecthepotentialimpactofalrisksrelatedtostructure,marketand

aditionalfactorsdiscusedabove,andotherfactorsthatmayafecthevalueoftheNotes.As

athedateofthisOferingCircular,theBankhasbenasignedaratingofBa2byMody’s,

A-byS&PandB+byFitch.Acreditratingisnotarecomendationtobuy,selorhold

securitiesandmayberevisedorwithdrawnbytheratingagencyatanytime.

EachTrancheofNotesmayberatedorunrated,aspecifiedintheaplicablePricing

Suplement.Theratingrepresentstheopinionoftherelevantratingagencyanditsasesment

oftheabilityoftherelevantIsuertoperformitsobligationsundertheNotes,andcreditrisksin

determiningthelikelihodthatpaymentswilbemadewhendueundertheNotes.Aratingisnot

arecomendationtobuy,selorholdsecurities.Theratingcanbeloweredorwithdrawnatany

time.TherelevantIsuerisnotobligatedtoinformholdersoftheNotesifaratingisloweredor

withdrawn.Areductionorwithdrawalofaratingmayadverselyafecthemarketpriceofthe

Notes.

Investorshalpayatentiontoanymodificationsandwaivers.

TheTermsandConditionsoftheNotescontainprovisionsforcalingmetingsofNoteholdersto

considermatersafectingtheirinterestsgeneraly.Theseprovisionspermitdefinedmajoritiesto

bindalNoteholders,includingNoteholderswhodidnotatendandvoteatherelevantmeting

andNoteholderswhovotedinamanercontrarytothemajority.

TheTermsandConditionsoftheNotesmaybeamended,modifiedorvariedinrelationtoany

SeriesofNotesbythetermsoftherelevantPricingSuplementinrelationtosuchSeries.The

TermsandConditionsoftheNotesalsoprovidethathepartiestotheamendedandrestated

fiscalagencyagrementdated18June2024enteredintoinrelationtotheNotesbetwenthe

Bank(onbehalfofitselfandonbehalfofitsbranches),CiticorpInternationalLimitedasFiscal

Agent,CMULodgingandPayingAgentandtheotherAgentsnamedtherein(the“FiscalAgency

Agrement”)mayagretomodifyanyprovisionthereof,butheBankshalnotagre,without

theconsentoftheNoteholders,toanysuchmodificationunlesitisofaformal,minoror

technicalnature,itismadetocorectamanifesterorortocomplywithmandatoryprovisions

ofthelaw.

TheNotesmayberepresentedbyGlobalNotes,andholdersofabeneficialinterestina

GlobalNotemustrelyontheproceduresoftherelevantClearingSystem(s).

NotesisuedundertheProgramemayberepresentedbyoneormoreGlobalNotes.Such

GlobalNoteswilbedepositedwithacomondepositaryforEuroclearandClearstreamor

lodgedwiththeCMU(eachofEuroclear,ClearstreamandtheCMU,a“ClearingSystem”).

ExceptinthecircumstancesdescribedintherelevantGlobalNote,investorswilnotbentitled

toreceivedefinitiveNotes.TherelevantClearingSystem(s)wilmaintainrecordsofthe

beneficialinterestsintheGlobalNotes.WhiletheNotesarerepresentedbyoneormoreGlobal

Notes,investorswilbeabletotradetheirbeneficialinterestsonlythroughtheClearing

Systems.WhiletheNotesarerepresentedbyoneormoreGlobalNotes,therelevantIsuerwil

dischargeitspaymentobligationsundertheNotesbymakingpaymentstothecomon

depositaryforEuroclearandClearstreamor,asthecasemaybe,totherelevantpayingagent,in

thecaseoftheCMU,fordistributiontotheiracountholders.Aholderofabeneficialinterest

inaGlobalNotemustrelyontheproceduresoftherelevantClearingSystem(s)toreceive

paymentsundertherelevantNotes.TherelevantIsuerhasnoresponsibilityorliabilityforthe

recordsrelatingto,orpaymentsmadeinrespectof,beneficialinterestsintheGlobalNotes.

HoldersofbeneficialinterestsintheGlobalNoteswilnothaveadirectrightovoteinrespect

oftherelevantNotes.Instead,sucholderswilbepermitedtoactonlytothextenthathey

arenabledbytherelevantClearingSystem(s)toapointapropriateproxies.

NoteholdershouldbeawarethatdefinitiveNoteswhichaveadenominationthatisnotan

integralmultipleoftheminimumdenominationmaybeiliquidandificultotrade.

Notesmaybeisuedwithaminimumdenomination.ThePricingSuplementofaTrancheof

Notesmayprovidethat,forsolongastheNotesarerepresentedbyaGlobalNoteandthe

relevantClearingSystem(s)sopermit,theNoteswilbetradeableinominalamounts(i)equal

to,orintegralmultiplesof,theminimumdenomination,and(i)theminimumdenominationplus

integralmultiplesofanamountlowerthantheminimumdenomination.Inrelationtoanyisue

ofNotesinregisteredform,definitiveCertificateswilonlybeisuediftherelevantClearing

System(s)is/areclosedforbusinesforacontinuousperiodof14days(otherthanbyreasonof

legalholidays)oranounce(s)anintentiontopermanentlyceasebusines.ThePricing

Suplementmayprovidethat,ifdefinitiveNotesareisued,suchNoteswilbeisuedinrespect

ofalholdingsofNotesequaltorgreaterthantheminimumdenomination.However,

NoteholdershouldbeawarethatdefinitiveNotesthathaveadenominationthatisnotan

integralmultipleoftheminimumdenominationmaybeiliquidandificultotrade.Definitive

NoteswilinocircumstancesbeisuedtoanypersonholdingNotesinanamountlowerthan

theminimumdenomination,andsuchNoteswilbecanceledandholderswilhavenorights

againstherelevantIsuer(includingrightstoreceiveprincipalorinterestortovote)inrespect

ofsuchNotes.

TheNotesareredemableintheventofcertainwitholdingtaxesbeingaplicable.

TherecanbenoasuranceastowhetherornotpaymentsontheNotesmaybemadefreand

clearof,andwithoutwitholdingordeductionfor,anytaxes,duties,asesmentsor

governmentalchargesofwhatevernatureimposed,levied,colected,witheldorasesedbyor

withinaRelevantJurisdiction.Wheresuchwitholdingordeductionismadebytherelevant

IsuerbyorwithinthePRCuptoandincludingtherateaplicableontheIsueDate(the

“AplicableRate”),suchIsuerwilincreasetheamountspaidbyitothextentrequired,so

thathenetamountreceivedbyNoteholdersandCouponholdersequalstheamountswhich

wouldotherwisehavebenreceivedbythemhadnosuchwitholdingordeductionben

required.IntheventherelevantIsuerisrequiredtomakeadeductionorwitholdingin

respectof(i)PRCtaxinexcesoftheAplicableRateand/or(i)anytaxinaRelevant

JurisdictionotherthanthePRC,suchIsuerisrequiredpaysuchaditionalamountsashal

resultinreceiptbytheNoteholdersandCouponholdersofsuchamountsaswouldhaveben

receivedbythemhadnosuchwitholdingordeductionbenrequired,butcanalsochoseto

redemtheNotesatheirEarlyRedemptionAmount(asdefinedintheTermsandConditionsof

theNotes)(togetherwithinterestacruedtothedatefixedforedemption)iftheconditions

describedintheTermsandConditionsoftheNotesaresatisfied.IftherelevantIsueredems

theNotespriortotheirmaturitydates,investorsmaynotreceivethesameconomicbenefits

theywouldhavereceivedhadtheyheldtheNotestomaturity,andtheymaynotbeableto

reinvestheprocedstheyreceiveinaredemptioninsimilarsecurities.Inadition,such

Isuer’sabilitytoredemtheNotesmayreducethemarketpriceoftheNotes.

Legalinvestmentconsiderationsmayrestrictcertaininvestments.

Theinvestmentactivitiesofcertaininvestorsaresubjectolegalinvestmentlawsand

regulations,orevieworegulationbycertainauthorities.Eachpotentialinvestorshouldconsult

itslegaladviserstodeterminewhetherandtowhatextent(i)theNotesarelegalinvestmentsfor

it,(i)theNotescanbeusedascolateralforvarioustypesofborowingand(i)other

restrictionsaplytoitspurchaseorpledgeofanyNotes.Investorshouldconsultheirlegal

advisersortheapropriateregulatorstodeterminetheapropriatetreatmentoftheNotesunder

anyaplicablerisk-basedcapitalorsimilarules.

GainsonthetransferoftheNotesmaybecomesubjectoincometaxesunderPRCtax

laws.

UnderthePRCEnterpriseIncomeTaxLawhichtokefecton1January2008andwaslater

amendedon24February2017and29December2018,anditsimplementationruleswhichtok

efecton1January2008andwerelateramendedon23April2019and6December2024,any

gainrealisedonthetransferoftheNotesbynon-residententerpriseholdersmaybesubjecto

enterpriseincometaxifsuchgainisregardedasincomederivedfromsourceswithinthePRC.

However,thereremainsuncertaintyastowhetherthegainrealisedfromthetransferofthe

NoteswouldbetreatedasincomederivedfromsourceswithinthePRCandbesubjectoPRC

tax.ThiswildependonhowthePRCtaxauthoritiesinterpret,aplyorenforcethePRC

EnterpriseIncomeTaxLawanditsimplementationrules.Acordingtothearangementbetwen

thePRCandHongKongfortheavoidanceofdoubletaxation,residentsofHongKong,

includingenterpriseholdersandindividualholders,wilnotbesubjectoPRCtaxonanycapital

gainsderivedfromasaleorexchangeoftheNotes.

Therefore,ifnon-residententerpriseholdersarerequiredtopayPRCincometaxongainsonthe

transferoftheNotes(suchenterpriseincometaxiscurentlyleviedatherateof10percent.Of

thegrosproceds,unlesthereisanaplicabletaxtreatybetwenPRCandthejurisdictionin

whichsuchnon-residententerpriseholdersoftheNotesresidethatreducesorexemptsthe

relevantax),thevalueoftheirinvestmentintheNotesmaybematerialyandadversely

afected.

TheinterpretationoftheNDRCOrder56mayafecthenforceabilityand/orefective

performanceoftheNotes.Anyfailuretocompletetherelevantfilingsand/registration

undertheNDRCOrder56withintheprescribedtimeframesmayhaveadverse

consequencesfortherelevantIsuerand/ortheinvestorsoftheNotes.

TheNDRCisuedtheNDRCOrder56on5January2023,whichcameintoefecton10

February2023.AcordingtotheNDRCOrder56,domesticenterprisesandtheiroverseas

controledentitieshalprocuretheregistrationofanydebtsecuritieswithatermnotlesthan

oneyearisuedoutsidethePRCwiththeNDRCpriortotheisueofthesecurities,andnotify

theparticularsoftherelevantisueswithinthetimeframeprescribedbytheNDRCafterthe

completionoftherelevantisue.UndertheNDRCOrder56,theBankshal,(i)fileorcauseto

befiledwiththeNDRCtherequisiteinformationandocumentswithintenPRCbusinesdays

aftereachforeigndebtisuanceandthexpirationoftheCertificatewithrespectotherelevant

NotesinacordancewiththeNDRCOrder56,(i)fileorcausetobefiledwiththeNDRCthe

requisiteinformationandocumentswithinfivePRCbusinesdaysbeforethendofJanuary

andthendofJulyeachyear,and(i)fileorcausetobefiledtherequisiteinformationand

documentsupontheocurenceofanymaterialeventhatmayafecthenterprise’sdue

performanceofitsdebtobligations.

FailuretocomplywiththeNDRCpost-isueandcontinuingfilingobligations(suchas

post-isuefiling,pre-isuanceaprovalexpirationfiling,periodicalfilingandmajoreventfiling,

etc.)underarticles24and26oftheNDRCOrder56mayresultintherelevantentitiesbeing

orderedtomakecorectionswithinatimelimit,andinthecaseofagravatingcircumstancesor

inthecasethatsuchcorectionsarenotmadewithintheprescribedtimelimit,relevantentities

andtheirmainperson-in-chargewilbewarned.Theaforesaidregulatoryviolationscomited

byenterpriseshalbepublicisedonthe“CreditChina”websiteandthenationalenterprise

creditinformationpublicitysystem,amongothers.

TheBankundertakestoprovideorcausetobeprovidedtotheNDRCanotificationofthe

requisiteinformationandocumentswithintherelevantprescribedtimeframesaftertherelevant

IsueDateinrespectoftherelevantNotesinacordancewiththeNDRCOrder56andany

implementationrulesorpoliciesasisuedbytheNDRCfromtimetotime.

However,theNDRCOrder56isnewandtheadministrationandenforcementoftheNDRC

Order56maybesubjectoexecutiveandpolicydiscretionoftheNDRC.WhiletheNDRC

Order56hasetouthelegalconsequencesfordebtorsandinvolvedprofesionalpartiesin

casesofnon-complianceoftheNDRCOrder56,theNDRCOrder56isilentonwhetherany

suchnon-compliancewouldafecthevalidityandenforceabilityoftheNotes.Thereisno

asurancethathefailuretocomplywiththeNDRCOrder56wouldnotresultinadverse

consequencesontherelevantIsuer’sortheBank’sabilitytoperforminacordancewiththe

TermsandConditionsoftheNotesorthenforceabilityoftheNotes.

TheBankmaybesubjectothefilingrequirementsinrelationtoisueofNotesfrom

respectiveauthoritieswithinthePRC.

On12January2017,thePBOCisuedtheCircularofthePeople’sBankofChinaonthe

Macro-prudenceManagementofCros-borderFinancinginFulAperture(中国人民银行关于全

口径跨境融资宏观审慎管理有关事宜的通知)(the“2017PBOCircular”),whichapliesto

cros-borderfinancingactivitiesbycompaniesandfinancialinstitutions(includingbanks)

incorporatedinthemainland.Acordingtothe2017PBOCircular,27mainlandbanks

(includingtheBank)arerequiredtomakefilingswiththePBOCinrespectoftheirofshore

bondoferings.

InconectionwiththestablishmentoftheProgrameoranyisuancebyanofshorebranch,

theBankhasnotmadeandoesnotintendtomakeanyfilingwiththePBOCunderthe2017

PBOCircular.TothextentandiftheBankoranyofitsbrancheswhicharelocatedwithinthe

PRCisuesNotesundertheProgrameoranyoverseasbankintendstoremitanyprocedsfrom

anyNoteisueundertheProgrametothemainland,theBankwilmaketherequisitefiling

withthePBOCincompliancewiththe2017PBOCircular.

ThePBOChasyetopublishanydetailedimplementationrulesandguidanceonthe2017PBOC

Circular.TheaforementionedviewsarebasedontheBank’sPRClegaladvisors’understanding

andinterpretationofthe2017PBOCircular.ThereisnoasurancethatPBOCwouldtakethe

samevieworthe2017PBOCircularwouldnotbeinterpretedinadiferentway.IfthePBOC

takesadiferentvieworanychangewilbemadetosuchregulations,theBankwilcomply

withtherequirementsofsuchandanyotheregulatoryauthorities.

AditionalproceduresmayberequiredtobetakentohearEnglishlawgovernedmatersin

theHongKongcourts.ThereisalsonoasurancethathePRCcourtswilrecogniseand

enforcejudgmentsoftheHongKongcourtsinrespectofEnglishlawgovernedmatersor

disputes.

TheNotesandtheDedofCovenantaregovernedbyEnglishlaw,whereaspartiestothese

documentshavesubmitedtothexclusivejurisdictionoftheHongKongcourts.Inorderto

hearEnglishlawgovernedmaters,HongKongcourtsmayrequirecertainaditionalprocedures

tobetaken.

Aditionalproceduresmayberequiredtoefectserviceofprocesupon,ortoenforceagainst,

theBankoritsdirectors,supervisorsormembersitseniormanagementwhoresideinthePRC

inconectionwithjudgementsobtainedinon-PRCcourts.

On18January2019,theSupremePeople’sCourtandtheDepartmentofJusticeoftheHong

KongSpecialAdministrativeRegionjointlypromulgatedtheArangementforReciprocal

RecognitionandEnforcementofJudgmentsinCivilandComercialCasesbytheCourtsofthe

MainlandandoftheHongKongSpecialAdministrativeRegion(关于内地与香港特别行政区法

院相互认可和执行民商事案件判决的安排)(the“2019Arangement”),whichbecamefective

on29January2024.The2019Arangementfacilitatesthemutualrecognitionandenforcement

ofcourtjudgmentsbetwenthemainlandandHongKongandcoversmaterswhichare

consideredtobeofa“civilandcomercial”natureunderbothHongKongandmainlandlaw.

Non-judicialprocedingsandjudicialprocedingsrelatingtoadministrativeoregulatory

matersarexcluded.Subjectotheprovisionsinthe2019Arangement,judgmentsinciviland

comercialmatersofthecourtsofthemainlandandHongKongarexpectedtobemutualy

recognisableandenforceable.TherecognitionandenforcementofaHongKongcourtjudgment

couldberefusediftherelevantPRCcourtconsidersthatherecognitionandenforcementof

suchjudgmentiscontrarytothebasicprinciplesoflawofthePRCorthesocialandpublic

interestsofthePRC.

WhileitisexpectedthathePRCcourtswilrecogniseandenforceajudgmentgivenbyHong

Kongcourts,therecanbenoasurancethathePRCcourtswildosoforalsuchjudgmentsas

thereisnoestablishedpracticeinthisarea.TheholdersoftheNoteswilbedemedtohave

submitedtothexclusivejurisdictionoftheHongKongcourts,andthustheholders’abilityto

initiateaclaimoutsideofHongKongwilbeuncertain.

InvestmentintheNotesisubjectorisksrelatedtothemarketgeneraly.

Setoutbelowisabriefdescriptionofcertainmarketrisks,includingliquidityrisk,exchange

raterisk,interestrateriskandcreditrisk.

Thesecondarymarketgeneraly.

AnactivesecondarymarketinrespectoftheNotesmayneverbestablishedormaybeiliquid,

andthiswouldadverselyafecthevalueatwhichaninvestorcouldseltheirNotes.

Notesmayhavenoestablishedtradingmarketwhenisued,andonemayneverdevelop.Ifa

marketdoesdevelop,itmaynotbeveryliquid.Therefore,investorsmaynotbeabletoseltheir

Noteseasilyoratpricesthatwilprovidethemwithayieldcomparabletosimilarinvestments

thathaveadevelopedsecondarymarket.ThisisparticularlythecaseforNotesthatare

especialysensitivetointerestrate,curencyormarketrisks,aredesignedforspecific

investmentobjectivesorstrategiesarebeingisuedtoasingleinvestororalimitednumberof

investorsorhavebenstructuredtometheinvestmentrequirementsoflimitedcategoriesof

investors.ThesetypesofNotesgeneralywouldhaveamorelimitedsecondarymarketandmore

pricevolatilitythanconventionaldebtsecurities.

Exchangeraterisksandexchangecontrols.

TherelevantIsuerwilpayprincipalandinterest(whereaplicable)ontheNotesinthe

curencyspecifiedintherelevantPricingSuplement(the“SpecifiedCurency”).Thispresents

certainrisksrelatingtocurencyconversionsifaninvestor’sfinancialactivitiesaredenominated

principalyinacurencyorcurencyunit(the“Investor’sCurency”)otherthantheSpecified

Curency.Theseincludetheriskthatexchangeratesmaysignificantlychange(including

changesduetodevaluationoftheSpecifiedCurencyorevaluationoftheInvestor’sCurency)

andtheriskthatauthoritieswithjurisdictionovertheInvestor’sCurencymayimposeormodify

exchangecontrols.AnapreciationinthevalueoftheInvestor’sCurencyrelativetothe

SpecifiedCurencywouldecrease(i)theInvestor’sCurency-equivalentyieldontheNotes,(i)

theInvestor’sCurencyequivalentvalueoftheprincipalpayableontheNotes,and/or(i)the

Investor’sCurencyequivalentmarketvalueoftheNotes.

Governmentandmonetaryauthoritiesmayimpose(asomehavedoneinthepast)exchange

controlsthatcouldadverselyafectanaplicablexchangerate.Asaresult,investorsmay

receivelesinterestand/orprincipalthanexpected,ornointerestorprincipal.

Interestraterisks.

InvestmentintheFixedRateNotesinvolvestheriskthatifmarketinterestratesubsequently

increaseabovetheratepaidontheFixedRateNotes,thiswiladverselyafecthevalueofthe

FixedRateNotes.

Creditratingsmaynotreflectalrisks.

OneormoreindependentcreditratingagenciesmayasigncreditratingstoanisueofNotes.

Theratingsmaynotreflecthepotentialimpactofalrisksrelatedtostructure,market,

aditionalfactorsdiscusedabove,andotherfactorsthatmayafecthevalueoftheNotes.A

creditratingisnotarecomendationtobuy,selorholdsecuritiesandmayberevisedor

withdrawnbytheratingagencyatanytime.

TherearerisksrelatedtothestructureofaparticularisueofNotes.

AwiderangeofNotesmaybeisuedunderthePrograme.AnumberoftheseNotesmayhave

featureswhichcontainparticularisksforpotentialinvestors.Setoutbelowisadescriptionof

certainsuchfeatures:

NotesubjectoptionalredemptionbytherelevantIsuer.

AnoptionalredemptionfeatureislikelytolimithemarketvalueoftheNotes.Duringany

periodwhentherelevantIsuermayelectoredemNotes,themarketvalueofthoseNoteswil

generalynotrisesubstantialyabovethepriceatwhichtheycanberedemed.Thismayalsobe

truepriortoanyredemptionperiod.

TherelevantIsuermaybexpectedtoredemNoteswhenitscostofborowingislowerthan

theinterestrateontheNotes.Athosetimes,aninvestorwouldgeneralynotbeabletoreinvest

theredemptionprocedsatanefectiveinterestrateashighastheinterestrateontheNotes

beingredemed,andmayonlybeabletodosoatasignificantlylowerate.Potentialinvestors

shouldconsidereinvestmentriskinlightofotherinvestmentsavailableathatime.

IndexLinkedNotesandDualCurencyNotes.

TherelevantIsuermayisueNoteswithprincipalorinterestpayableinrespectoftheNotes

beingdeterminedbyreferencetoanindexorformula,tochangesinthepricesofsecuritiesor

comodities,tomovementsincurencyexchangeratesorotherfactors(eacha“Relevant

Factor”).Inadition,therelevantIsuermayisueNoteswithprincipalorinterestpayablein

oneormorecurencieswhichmaybediferentfromthecurencyinwhichtheNotesare

denominated.Potentialinvestorshouldbeawarethat:

(i)themarketpriceofsuchNotesmaybevolatile;

(i)theymayreceivenointerest;

(i)thepaymentofprincipalorinterestmayocuratadiferentimeorinadiferentcurency

thanexpected;

(iv)theamountofprincipalpayableatredemptionmaybelesthanthenominalamountofsuch

Notesorevenzero;

(v)aRelevantFactormaybesubjectosignificantfluctuationsthatmaynotcorelatewith

changesininterestrates,curenciesorotherindices;

(vi)thefectofanymultiplierofleveragefactorthatisapliedtotheRelevantFactoristhat

theimpactofanychangesintheRelevantFactorontheamountofprincipalorinterest

payablewilbemagnified;and

(vi)thetimingofchangesinaRelevantFactormayafectheactualyieldtoinvestors,evenif

theaveragelevelisconsistentwiththeirexpectations.Ingeneral,thearlierthechangein

theRelevantFactor,thegreaterthefectonyield.

PartlyPaidNotes.

TherelevantIsuermayisueNoteswheretheisuepriceispayableinmorethanone

instalment.Failuretopayanysubsequentinstalmentcouldresultinaninvestorlosingalofits

investment.

VariableRateNoteswithamultiplierorotherleveragefactor.

Noteswithvariableinterestratescanbevolatileinvestments.Iftheyarestructuredtoinclude

multipliersorotherleveragefactors,orcapsorflors,oranycombinationofthosefeaturesor

othersimilarelatedfeatures,theirmarketvaluesmaybevenmorevolatilethanthosefor

securitiesthatdonotincludethosefeatures.

InverseFloatingRateNotes.

InverseFloatingRateNoteshaveaninterestratequaltoafixedrateminusaratebasedupona

referenceratesuchasEURIBOR.ThemarketvaluesofsuchNotesaretypicalymorevolatile

thanmarketvaluesofotherconventionalfloatingratedebtsecuritiesbasedonthesame

referencerate(andwithotherwisecomparableterms).InverseFloatingRateNotesaremore

volatilebecauseanincreaseinthereferenceratenotonlydecreasestheinterestrateofthe

Notes,butmayalsoreflectanincreaseinprevailinginterestrates,whichfurtheradversely

afectsthemarketvalueofthoseNotes.

Fixed/FloatingRateNotes.

Fixed/FloatingRateNotesmaybearinterestataratethatherelevantIsuermayelecto

convertfromafixedratetoafloatingrate,orfromafloatingratetoafixedrate.Therelevant

Isuer’sabilitytoconvertheinterestratewilafecthesecondarymarketandthemarketvalue

ofsuchNotesincetherelevantIsuermaybexpectedtoconvertheratewhenitislikelyto

producealoweroveralcostofborowing.IftherelevantIsuerconvertsfromafixedratetoa

floatingrate,thespreadontheFixed/FloatingRateNotesmaybelesfavourablethan

then-prevailingspreadsoncomparableFloatingRateNotestiedtothesamereferencerate.In

adition,thenewfloatingrateatanytimemaybelowerthantheratesonotherNotes.Ifthe

relevantIsuerconvertsfromafloatingratetoafixedrate,thefixedratemaybelowerthan

then-prevailingratesonitsNotes.

Theregulationandreformof“benchmark”ratesofinterestandindicesmayadverselyafecthe

valueofNoteslinkedtoreferencingsuch“benchmarks”.

Interestratesandindiceswhicharedemedtobeorusedas“benchmarks”arethesubjectof

recentnational,internationalregulatoryandotheregulatoryguidanceandproposalsforeform.

Someofthesereformsarealreadyefective,whilstothersarestiltobeimplemented.These

reformsmaycausesuchbenchmarkstoperformdiferentlythaninthepastortodisapear

entirely,orhaveotherconsequenceswhichcanotbepredicted.Anysuchconsequencecould

haveamaterialadversefectonanyNotelinkedtoreferencingsuchabenchmark.

Regulation(EU)2016/1011(the“EUBenchmarksRegulation”)aplies,subjectocertain

transitionalprovisions,totheprovisionofbenchmarks,thecontributionofinputdatatoa

benchmarkandtheuseofabenchmarkwithintheEU.Amongotherthings,it(i)requires

benchmarkadministratorstobeauthorisedoregistered(or,ifnon-EU-based,tobesubjectoan

equivalentregimeorotherwiserecognisedorendorsed)and(i)preventscertainusesbyEU

supervisedentitiesofbenchmarksofadministratorsthatarenotauthorisedoregistered(or,if

non-EUbased,notdemedequivalentorecognisedorendorsed).Regulation(EU)2016/1011as

itformspartofdomesticlawbyvirtueoftheEUWA(the“UKBenchmarksRegulation”)

amongotherthings,apliestotheprovisionofbenchmarksandtheuseofabenchmarkinthe

UK.Similarly,itprohibitstheuseintheUKbyUKsupervisedentitiesofbenchmarksof

administratorsthatarenotauthorisedbytheUnitedKingdomFinancialConductAuthority

(“FCA”)oregisteredontheFCAregister(or,ifnon-UKbased,notdemedequivalentor

recognisedorendorsed).

TheEUBenchmarksRegulationand/ortheUKBenchmarksRegulation,asaplicable,could

haveamaterialimpactonanyNoteslinkedtoreferencingabenchmarkinparticular,ifthe

methodologyorothertermsofthebenchmarkarechangedinordertocomplywiththe

requirementsoftheEUBenchmarksRegulationand/ortheUKBenchmarksRegulation,as

aplicable.Suchchangescould,amongotherthings,havethefectofreducing,increasingor

otherwiseafectingthevolatilityofthepublishedrateorleveloftherelevantbenchmark.

Morebroadly,anyoftheinternational,nationalorotherproposalsforeforms,orthegeneral

increasedregulatoryscrutinyofbenchmarks,couldincreasethecostsandrisksofadministering

orotherwiseparticipatinginthesetingofabenchmarkandcomplyingwithanysuch

regulationsorequirements.Theuroriskfre-rateworkingroupfortheuroareahas

publishedasetofguidingprinciplesandhighlevelrecomendationsforfalbackprovisionsin,

amongstotherthings,neweurodenominatedcashproducts(includingbonds)referencing

EURIBOR.Theguidingprinciplesindicate,amongstotherthings,thatcontinuingtoreference

EURIBORinrelevantcontracts(withoutrobustfalbackprovisions)mayincreasetherisktothe

euroareafinancialsystem.On11May2021,theurorisk-frerateworkingroupublishedits

recomendationsonEURIBORfalbacktrigereventsandfalbackrates.Suchfactorsmayhave

(withoutlimitation)thefolowingefectsoncertainbenchmarks:(i)discouragingmarket

participantsfromcontinuingtoadministerorcontributetoabenchmark;(i)trigeringchanges

intherulesormethodologiesusedinthebenchmarkand/or(i)leadingtothedisapearanceof

the“benchmark”.Anyoftheabovechangesoranyotherconsequentialchangesasaresultof

internationalornationalreformsorotherinitiativesorinvestigations,couldhaveamaterial

adversefectonthevalueofandreturnonanyNoteslinkedto,referencing,orotherwise

dependent(inwholeorinpart)upon,abenchmark.

TheTermsandConditionsoftheNotesprovideforcertainfalbackarangementsinthevent

thataBenchmarkEvent(asdefinedintheTermsandConditionsoftheNotes)ocurs,including

ifaninterbankoferedrate(suchasEURIBOR)orotherelevantreferencerate(whichcould

include,withoutlimitation,anymid-swaprate),and/oranypageonwhichsuchbenchmarkmay

bepublished(oranysucesorservice)becomesunavailable,orifanyPayingAgent,

CalculationAgent,therelevantIsuerorotherpartyisnolongerpermitedlawfulytocalculate

interestonanyNotesbyreferencetosuchbenchmark.Suchfalbackarangementsincludethe

posibilitythatherateofinterestcouldbesetbyreferencetoaSucesorRateoran

AlternativeBenchmarkRate(bothasdefinedintheTermsandConditionsoftheNotes),with

theaplicationofanAdjustmentSpread(whichcouldbepositive,negativeorzero)andmay

includeamendmentstotheTermsandConditionsoftheNotestoensuretheproperoperationof

thenewbenchmark,alasdeterminedbytherelevantIsuer(actingingodfaithandin

consultationwithanIndependentAdviser)andasmorefulydescribedatCondition5(b)(iv)and

Condition5(b)(v).ItisposiblethatheadoptionofaSucesorRateorAlternativeBenchmark

Rate,includinganyAdjustmentSpread,mayresultinanyNoteslinkedtoreferencingan

originalReferenceRateperformingdiferently(whichmayincludepaymentofalowerRateof

Interest)thantheywouldiftheoriginalReferenceRateweretocontinuetoaplyinitscurent

form.Thereisalsoariskthatherelevantfalbackprovisionsmaynotoperateasexpectedor

intendedatherelevantime.

Furthermore,incertaincircumstances,theultimatefalbackforthepurposesofcalculationof

RateofInterestforaparticularInterestAcrualPeriodmayresultintheRateofInterestforthe

lastprecedingInterestAcrualPeriodbeingused.Thismayresultinthefectiveaplicationof

afixedrateforFloatingRateNotesbasedontheratewhichwaslastobservedontheRelevant

ScrenPage.

Investorshouldconsultheirownindependentadvisersandmaketheirownasesmentabout

thepotentialrisksimposedbytheEUBenchmarksRegulationand/ortheUKBenchmarks

Regulation,asaplicableoranyotherinternationalornationalreforms,inmakingany

investmentdecisionwithrespectoanyNoteslinkedtoreferencingabenchmark.

TheuseofSecuredOvernightFinancingRate(“SOFR”)asareferencerateisubjecto

importantlimitations.

TherateofinterestontheFloatingRateNotesmaybecalculatedonthebasisofSOFR(as

furtherdescribedunderCondition5(b)(i)(C)oftheTermsandConditionsoftheNotes).

InJune2017,theNewYorkFederalReserve’sAlternativeReferenceRatesComite(the

“ARC”)anouncedSOFRasitsrecomendedalternativetoU.S.dolarLondonInterbank

OferedRate(the“LIBOR”).However,thecompositionandcharacteristicsofSOFRarenothe

sameasthoseofLIBOR.SOFRisabroadU.S.Treasuryrepo-financingratethatrepresents

overnightsecuredfundingtransactions.ThismeansthatSOFRisfundamentalydiferentfrom

LIBORfortwokeyreasons.First,SOFRisasecuredrate,whileLIBORisanunsecuredrate.

Second,SOFRisanovernightrate,whileLIBORrepresentsinterbankfundingoverdiferent

maturities.Asaresult,therecanbenoasurancethatSOFRwilperforminthesamewayas

LIBORwouldhaveatanytime,including,withoutlimitation,asaresultofchangesininterest

andyieldratesinthemarket,marketvolatilityorglobaloregionaleconomic,financial,

political,oregulatoryevents.Forexample,sincepublicationofSOFRbeganinApril2018,

dailychangesinSOFRhave,onocasion,benmorevolatilethandailychangesincomparable

benchmarkorothermarketrates.

AsSOFRisanovernightfundingrate,interestonSOFR-basedNoteswithinterestperiods

longerthanovernightwilbecalculatedonthebasisofeitherthearithmeticmeanofSOFRover

therelevantinterestperiodorcompoundingSOFRduringtherelevantinterestperiod.Asa

consequenceofthiscalculationmethod,theamountofinterestpayableoneachinterestpayment

datewilonlybeknownashortperiodoftimepriortotherelevantinterestpaymentdate.

Noteholdersthereforewilnotknowinadvancetheinterestamountwhichwilbepayableon

suchNotes.

AlthoughtheFederalReserveBankofNewYorkhaspublishedhistoricalindicativeSOFR

informationgoingbackto2014,suchprepublicationofhistoricaldatainherentlyinvolves

asumptions,estimatesandaproximations.Noteholdershouldnotrelyonanyhistorical

changesortrendsintheSOFRasanindicatorofuturechangesintheSOFR.

TheFederalReserveBankofNewYorknotesonitspublicationpageforSOFRthatuseofthe

SOFRisubjectoimportantlimitationsandisclaimers,includingthatheFederalReserve

BankofNewYorkmayalterthemethodsofcalculation,publicationschedule,raterevision

practicesoravailabilityoftheSOFRatanytimewithoutnotice.Inadition,SOFRispublished

bytheFederalReserveBankofNewYorkbasedondatareceivedfromothersources.TheBank

hasnocontroloveritsdetermination,calculationorpublication.Therecanbenoguarantethat

theSOFRwilnotbediscontinuedorfundamentalyalteredinamanerthatismaterialy

adversetotheinterestsoftheNoteholders.IfthemanerinwhichtheSOFRiscalculatedis

changedorifSOFRisdiscontinued,thatchangeordiscontinuancemayresultinareductionor

eliminationoftheamountofinterestpayableontheNotesandareductioninthetradingprices

oftheNoteswhichwouldnegativelyimpactheNoteholderswhocouldlosepartoftheir

investment.

TheTermsandConditionsoftheNotesprovideforcertainfalbackarangementsinthevent

thataBenchmarkEvent(asdefinedunderCondition5(b)(v)inrespectofSOFRocurs,which

isbasedontheARCrecomendedlanguage.Thereishowevernoguarantethathefalback

arangementswiloperateasintendedatherelevantimeoroperateontermscomercialy

aceptabletoalNoteholders.Anyofthefalbacksmayresultininterestpaymentsthatarelower

than,ordonototherwisecorelateovertimewith,thepaymentsthatwouldhavebenmadeon

theNotesifSOFRhadbenprovidedbytheFederalReserveBankofNewYorkinitscurent

form.Investorshouldconsultheirownindependentadvisersandmaketheirownasesment

abouthepotentialrisksinmakinganyinvestmentdecisionwithrespectoanyNoteslinkedto

SOFR.

ThemarketcontinuestodevelopinrelationtoSOFRasareferencerateforFloatingRate

Notes.

InvestorshouldbeawarethathemarketcontinuestodevelopinrelationtoSOFRandits

adoptionasanalternativetoU.S.dolarLIBOR.Marketparticipantsandrelevantworking

groupsarexploringalternativereferenceratesbasedonSOFR(whichsektomeasurethe

market’sforwardexpectationofaSOFRrateoveradesignatedterm).Themarketora

significantparthereofmayadoptanaplicationofSOFRthatdifersignificantlyfromthatset

outintheTermsandConditionsoftheNotes.Inadition,themanerofadoptionoraplication

ofSOFRinthebondmarketsmaydifermaterialycomparedwiththeaplicationandadoption

ofSOFRinothermarkets,suchasthederivativesandloanmarkets.Investorshouldcarefuly

considerhowanymismatchbetwentheadoptionofSOFRinthebond,loananderivatives

marketsmayimpactanyhedgingorotherfinancialarangementswhichtheymayputinplacein

conectionwithanyacquisition,holdingordisposalofNotesreferencingSOFR.Inadition,the

developmentofSOFRasaninterestreferencerateforthebondmarkets,aswelascontinued

developmentofSOFR-basedrates,indicesandaveragesforsuchmarketsandthemarket

infrastructureforadoptingsuchrates,couldresultinreducedliquidityorincreasedvolatilityor

couldotherwiseafecthemarketpriceofNotesreferencingSOFR.Similarly,ifSOFRdonot

provewidelyusedinsecuritiesuchastheNotesreferencingSOFR,investorsmaynotbeable

toselsuchNotesreferencingSOFRatalorthetradingpriceoftheNotesreferencingSOFR

maybelowerthanthoseofbondslinkedtoindicesthataremorewidelyused.

TheuseofSOFRasareferencerateforbondsisnascent,andmaybesubjectochangeand

development,bothintermsofthesubstanceofthecalculationandinthedevelopmentand

adoptionofmarketinfrastructurefortheisuanceandtradingofbondsreferencingsuchrates.

NotesreferencingSOFRmayhavenoestablishedtradingmarketwhenisued,andan

establishedtradingmarketmayneverdevelopormaynotbeveryliquidwhich,inturn,may

reducethetradingpriceofsuchNotesormeanthatinvestorsinsuchNotesmaynotbeableto

selsuchNotesatalormaynotbeabletoselsuchNotesatpricesthatwilprovidethemwith

ayieldcomparabletosimilarinvestmentsthathaveadevelopedsecondarymarket,andmay

consequentlysuferfromincreasedpricingvolatilityandmarketrisk.Investorshouldconsider

thesematerswhenmakingtheirinvestmentdecisionwithrespectoNotesreferencingSOFR.

Notesisuedatasubstantialdiscountorpremium.

Themarketvaluesofsecuritiesisuedatasubstantialdiscountorpremiumtotheirnominal

amountendtofluctuatemoreinrelationtogeneralchangesininterestratesthandopricesfor

conventionalinterest-bearingsecurities.Generaly,thelongertheremainingtermofthe

securities,thegreaterthepricevolatilityascomparedwithconventionalinterest-bearing

securitieswithcomparablematurities.

InvestorsmaylosepartoraloftheirinvestmentinanyIndex-LinkedNotesisued.

If,inthecaseofaparticularTrancheofNotes,therelevantPricingSuplementspecifiesthat

theNotesareIndex-LinkedNotesorvariableredemptionamountNotes,thereisariskthathe

investormaylosethevalueofitsentireinvestmentorpartofit.

IftherelevantIsuerdoesnotsatisfyitsobligationsundertheNotes,Noteholders’remedies

wilbelimited.

PaymentofprincipaloftheNotesmaybeaceleratedonlyintheventofcertainevents

involvingtherelevantIsuer’sbankruptcy,winding-upordisolutionorsimilareventsor

otherwiseifcertainconditionshavebensatisfied.Se“TermsandConditionsoftheNotes–

EventsofDefault”.

RISKSRELATINGTORENMINBI-DENOMINATEDNOTES

NotesdenominatedinRMB(the“RMBNotes”)maybeisuedunderthePrograme.A

descriptionofriskswhichmayberelevantoaninvestorinRMBNotesisetoutbelow.

TherearerestrictionsontheremitanceofRenminbintoandoutofthePRCwhichmay

adverselyafectheliquidityofRMBNotes.

ThePRCgovernmentregulatesconversionbetwenRenminbiandforeigncurencies,including

theHongKongdolar.However,therehasbenasignificantreductionincontrolbythePRC

governmentinrecentyears,particularlyovertradetransactionsinvolvingtheimportandexport

ofgodsandservicesaswelasotherfrequentroutineforeignexchangetransactions.These

transactionsareknownascurentacountitems.

Ontheotherhand,remitanceofRenminbintoandoutofthePRCforthesetlementofcapital

acountitems,suchascapitalcontributions,debtfinancingandsecuritiesinvestment,is

generalyonlypermiteduponobtainingspecificaprovalsfrom,orcompletingspecific

registrationsorfilingswith,therelevantauthoritiesonacase-by-casebasisandisubjectoa

strictmonitoringsystem.RegulationsinthePRContheremitanceofRenminbintoandoutof

thePRCforsetlementofcapitalacountitemsarebeingadjustedfromtimetotimetomatch

thepoliciesofthePRCgovernment.

AlthoughthePBOChasimplementedpoliciesimprovingacesibilitytoRenminbitosetle

cros-bordertransactionsinthepast,thereisnoasurancethathePRCgovernmentwil

continuetogradualyliberalisecontrolovercros-borderemitancesofRenminbinthefuture,

thatheschemesforRenminbicros-borderutilisationwilnotbediscontinuedorthatnew

regulationsinthePRCwilnotbepromulgatedinthefuturewhichavethefectofrestricting

oreliminatingtheremitanceofRenminbintoroutofthePRC.DespitetheRenminbi

internationalisationpilotprogrameandefortsinrecentyearstointernationalisethecurency,

therecanbenoasurancethathePRCgovernmentwilnotimposeinterimorlong-term

restrictionsonthecros-borderemitanceofRenminbi.Intheventhatfundscanotbe

repatriatedoutofthePRCinRenminbi,thismayafectheoveralavailabilityofRenminbi

outsidethePRCandtheabilityoftherelevantIsuertosourceRenminbitofinanceits

obligationsunderRMBNotes.

ThereisonlylimitedavailabilityofRenminbioutsidethePRC,whichmayafecthe

liquidityofRMBNotesandtherelevantIsuer’sabilitytosourceRenminbioutsidethe

PRCtoservicesuchRMBNotes.

AsaresultoftherestrictionsimposedbythePRCgovernmentoncrosborderRenminbifund

flows,theavailabilityofRenminbioutsidethePRCislimited.WhilethePBOChasenteredinto

agrements(the“SetlementArangements”)ontheclearingofRenminbibusineswith

financialinstitutions(each,a“RMBClearingBank”)inanumberofinancialcentresand

cities,includingbutnotlimitedtoHongKong,hasestablishedtheCros-BorderInterBank

PaymentsSystem(CIPS)tofacilitatecros-borderRenminbisetlementandisfurtherinthe

procesofestablishingRenminbiclearingandsetlementmechanismsinseveralother

jurisdictions,thecurentsizeofRenminbi-denominatedfinancialasetsoutsidethePRCis

limited.

TherearerestrictionsimposedbythePBOConRenminbibusinesparticipatingbanksinrespect

ofcros-borderRenminbisetlement,suchasthoserelatingtodirectransactionswithPRC

enterprises.Furthermore,RenminbibusinesparticipatingbanksdonothavedirectRenminbi

liquiditysuportfromthePBOC,althoughthePBOChasgradualyalowedparticipatingbanks

toacesthePRC’sonshoreinterbankmarketforthepurchaseandsaleofRenminbi.TheRMB

ClearingBanksonlyhavelimitedacestonshoreliquiditysuportfromthePBOCforthe

purposeofsquaringopenpositionsofparticipatingbanksforlimitedtypesoftransactions,and

arenotobligedtosquareforparticipatingbanksanyopenpositionsresultingfromotherforeign

exchangetransactionsorconversionservices.Incaseswheretheparticipatingbankscanot

sourcesuficientRenminbithroughtheabovechanels,theywilnedtosourceRenminbifrom

outsidethePRCtosquaresuchopenpositions.

AlthoughitisexpectedthatheofshoreRenminbimarketwilcontinuetogrowindepthand

size,itsgrowthisubjectomanyconstraintsasaresultofPRClawsandregulationsonforeign

exchange.ThereisnoasurancethatnewPRCregulationswilnotbepromulgatedorthe

SetlementArangementswilnotbeterminatedoramendedinthefuturewhichwilhavethe

efectofrestrictingtheavailabilityofRenminbioutsidethePRC.Thelimitedavailabilityof

RenminbioutsidethePRCmayafectheliquidityoftheRMBNotes.Tothextentherelevant

IsuerisrequiredtosourceRenminbintheofshoremarketoserviceitsRMBNotes,thereis

noasurancethatherelevantIsuerwilbeabletosourcesuchRenminbionsatisfactoryterms,

ifatal.

RemitanceofprocedsinRenminbintoroutofthePRC.

IntheventhatherelevantIsuerdecidestoremitsomeoraloftheprocedsintothePRCin

Renminbi,itsabilitytodosowilbesubjectobtainingalnecesaryaprovalsfrom,and/or

registrationorfilingwith,therelevantPRCgovernmentauthorities.However,thereisno

asurancethathenecesaryaprovalsfrom,and/oregistrationorfilingwith,therelevantPRC

governmentauthoritieswilbeobtainedatalor,ifobtained,theywilnotberevokedor

amendedinthefuture.

ThereisnoasurancethathePRCgovernmentwilcontinuetogradualyliberalisecontrolover

cros-borderRenminbiremitancesinthefuture,thathePRCgovernmentwilnotimposeany

interimorlong-termrestrictionsoncapitalinfloworoutflowhichmayrestrictcros-border

Renminbiremitances,thathepilotschemesintroducedwilnotbediscontinuedorthatnew

PRCregulationswilnotbepromulgatedinthefuturewhichavethefectofrestrictingor

eliminatingtheremitanceofRenminbintoroutsidethePRC.Intheventhatherelevant

IsuerdoesremitsomeoraloftheprocedsintothePRCinRenminbiandsuchIsuer

subsequentlyisnotabletorepatriatefundsoutofthePRCinRenminbi,itwilnedtosource

RenminbioutsidethePRCtofinanceitsobligationsundertheRMBNotes,anditsabilitytodo

sowilbesubjectotheoveralavailabilityofRenminbioutsidethePRC.

InvestmentinRMBNotesisubjectoexchangeraterisks.

ThevalueofRenminbiagainstotherforeigncurenciesfluctuatesfromtimetotimeandis

afectedbychangesinthePRCandinternationalpoliticalandeconomiconditionsaswelas

manyotherfactors.ThePBOChasinrecentyearsimplementedchangestothewayitcalculates

theRenminbi’sdailymid-pointpriceagainstheU.S.dolartotakeintoacountmarket-maker

quotesbeforeanouncingsuchdailymid-pointprice.Thischange,andotherchangesuchas

wideningthetradingbandthatmaybeimplemented,mayincreasethevolatilityinthevalueof

theRenminbiagainstforeigncurencies.Alpaymentsofinterestandprincipalwilbemadein

RenminbiwithrespectoRMBNotesunlesotherwisespecified.Asaresult,thevalueofthese

Renminbipaymentsmayvarywiththechangesintheprevailingexchangeratesinthe

marketplace.IfthevalueofRenminbidepreciatesagainstanotherforeigncurency,thevalueof

theinvestmentmadebyaholderoftheRMBNotesinthatforeigncurencywildecline.In

adition,theremaybetaxconsequencesforinvestorsasaresultofanyforeigncurencygains

resultingfromanyinvestmentintheRMBNotes.

GainsonthetransferoftheRMBNotesmaybecomesubjectoincometaxesunderPRC

taxlaws.

UnderthePRCEnterpriseIncomeTaxLaw,thePRCIndividualIncomeTaxLawandthe

relevantimplementingrules,asamendedfromtimetotime,anygainrealisedonthetransferof

RMBNotesbynon-PRCresidententerprisesorindividualNoteholdersmaybesubjectoPRC

enterpriseincometax(“EIT”)orPRCindividualincometax(“IT”)ifsuchgainisregardedas

incomederivedfromsourceswithinthePRC.ThePRCEnterpriseIncomeTaxLawleviesEITat

therateof20percent.OfthePRC-sourcedgainsderivedbysuchnon-PRCresidententerprises

fromthetransferofRMBNotes,butitsimplementationruleshavereducedtheEITrateto10

percent.ThePRCIndividualIncomeTaxLawleviesITatarateof20percent.Ofthe

PRC-sourcedgainsderivedbysuchnon-PRCresidentindividualNoteholdersfromthetransfer

ofRMBNotes.

However,uncertaintyremainsastowhetherthegainrealisedfromthetransferofRMBNotesby

non-PRCresidententerprisesorindividualNoteholderswouldbetreatedasincomederivedfrom

sourceswithinthePRCandthusbecomesubjectoEITorIT.Thiswildependonhowthe

PRCtaxauthoritiesinterpret,aplyorenforcethePRCEnterpriseIncomeTaxLaw,thePRC

IndividualIncomeTaxLawandtherelevantimplementingrules.Acordingtothearangement

betwenthePRCandHongKongforavoidanceofdoubletaxation,Noteholderswhoare

residentsofHongKong,includingenterpriseNoteholdersandindividualNoteholders,wilnot

besubjectoEITorIToncapitalgainsderivedfromasaleorexchangeoftheNotes.

Therefore,ifenterpriseorindividualresidentNoteholderswhicharenon-PRCresidentsare

requiredtopayPRCincometaxongainsderivedfromthetransferofRMBNotes,unlesthere

isanaplicabletaxtreatybetwenPRCandthejurisdictioninwhichsuchnon-PRCenterprise

orindividualNoteholdersofRMBNotesresidethatreducesorexemptstherelevantEITorIT,

thevalueoftheirinvestmentinRMBNotesmaybematerialyandadverselyafected.

InvestmentintheRMBNotesisubjectointerestraterisks.

ThePRCgovernmenthasgradualyliberaliseditsregulationofinterestratesinrecentyears.

Furtherliberalisationmayincreaseinterestratevolatility.Inadition,theinterestratefor

RenminbinmarketsoutsidethePRCmaysignificantlydeviatefromtheinterestratefor

RenminbinthePRCasaresultoforeignexchangecontrolsimposedbyPRClawand

regulationsandprevailingmarketconditions.

AsRMBNotesmaycaryafixedinterestrate,thetradingpriceoftheRMBNoteswil

consequentlyvarywiththefluctuationsintheRenminbinterestrates.IfholdersoftheRMB

NotesproposetoseltheirRMBNotesbeforetheirmaturity,theymayreceiveanoferlower

thantheamountheyhaveinvested.

PaymentswithrespectotheRMBNotesmayonlybemadeinthemanerdesignatedin

theRMBNotes.

AlpaymentstoinvestorsinrespectoftheRMBNoteswilbemadesolely(i)forsolongasthe

RMBNotesarerepresentedbyGlobalCertificatesheldwiththecomondepositaryfor

ClearstreamBankingS.A.andEuroclearBankSA/NVoranyalternativeclearingsystem,by

transfertoaRenminbibankacountmaintainedinHongKongorafinancialcentreinwhichan

RMBClearingBankclearsandsetlesRenminbi,ifsospecifiedinthePricingSuplement,(i)

forsolongastheRMBNotesarerepresentedbyGlobalCertificateslodgedwitha

sub-custodianfororegisteredwiththeCMU,bytransfertoaRenminbibankacount

maintainedinHongKonginacordancewithprevailingCMUrulesandproceduresor(i)for

solongastheRMBNotesareindefinitiveform,bytransfertoaRenminbibankacount

maintainedinHongKongorafinancialcentreinwhichanRMBClearingBankclearsand

setlesRenminbi,ifsospecifiedinthePricingSuplementinacordancewithprevailingrules

andregulations.TherelevantIsuercanotberequiredtomakepaymentbyanyothermeans

(includinginanyothercurencyorbytransfertoabankacountinthePRC).

USEOFPROCEDS

UnlesotherwisespecifiedinthePricingSuplement,thenetprocedsofeachisueofthe

NoteswilbeapliedbytheIsuerforworkingcapitalandgeneralcorporatepurposes.

FORMOFTHENOTES

TheNotesofeachSerieswilbeineitherbearerform,withorwithoutinterestcoupons

atached,oregisteredform,withoutinterestcouponsatached.

BEARERNOTES

EachTrancheofBearerNoteswilbeinbearerformandwilbeinitialyisuedintheformofa

TemporaryBearerGlobalNoteor,ifsospecifiedintheaplicablePricingSuplement,a

PermanentBearerGlobalNotewhich,ineithercase,wilbedelivered(a)priortotheoriginal

isuedateoftheTranchetoeither(i)acomondepositary(the“ComonDepositary”)for,

EuroclearandClearstreamor(i)asub-custodianfortheCMUor(b)atsuchothertime,onsuch

otherdate,tosuchotherpersonandinsuchotherplaceinacordancewiththeFiscalAgency

Agrement.

WhilstanyBearerNoteisrepresentedbyaTemporaryBearerGlobalNote,paymentsof

principal,interest(ifany)andanyotheramountpayableinrespectoftheNotes,subjectas

providedbysuchTemporaryBearerGlobalNote,wilbemadeuponpresentationand(wheno

furtherpaymentisdueinrespectofsuchTemporaryBearerGlobalNote)surenderofsuch

TemporaryBearerGlobalNote.Onandafterthedate(the“ExchangeDate”)whichis40days

afteraTemporaryBearerGlobalNoteisisued,interestsinsuchTemporaryBearerGlobalNote

wilbexchangeable(freofchargetotheholder)uponarequestasdescribedthereineitherfor

(a)interestsinaPermanentBearerGlobalNoteofthesameSeriesor(b)ifsospecifiedinthe

aplicablePricingSuplement,fordefinitiveBearerNotesofthesameSeriesprovidedthatif

theaplicablePricingSuplementspecifiesthatTEFRADrulesaply,thereshalhaveben

certification(inaformtobeprovided)withrespectosuchnominalamountsubmitedforsuch

exchangedatednoearlierthantheExchangeDatetothefecthathebeneficialownersof

interestsinsuchTemporaryBearerGlobalNotearenotU.S.personsorpersonswhohave

purchasedforesaletoanyU.S.person,asrequiredbyU.S.Treasuryregulations.TheCMU

mayrequirethatanysuchexchangeforaPermanentBearerGlobalNoteismadeinwholeand

notinpartandinsuchevent,nosuchexchangewilbefecteduntilalrelevantacount

holders(asetoutinaCMUIsuePositionReportoranyotherelevantnotificationsupliedto

theCMULodgingandPayingAgentbytheCMU)havesocertified.TheholderofaTemporary

BearerGlobalNotewilnotbentitledtocolectanypaymentofinterest,principalorother

amountdueonoraftertheExchangeDateunles,uponduecertification,exchangeofthe

TemporaryBearerGlobalNoteforaninterestinaPermanentBearerGlobalNoteorfor

definitiveBearerNotesisimproperlywitheldorefused.

Paymentsofprincipal,interest(ifany)oranyotheramountsonaPermanentBearerGlobalNote

wilbemadeuponpresentationand(whenofurtherpaymentisdueinrespectofsuch

PermanentBearerGlobalNote)surenderofsuchPermanentBearerGlobalNotewithoutany

requirementforcertification.

InrespectofaBearerGlobalNoteheldthroughtheCMU,anypaymentsofprincipal,interest(if

any)oranyotheramountshalbemadetotheperson(s)forwhoseacount(s)interestsinthe

relevantBearerGlobalNotearecredited(asetoutinaCMUIsuePositionReportoranyother

relevantnotificationsupliedtotheCMULodgingandPayingAgentbytheCMU)and,savein

thecaseofinalpayment,nopresentationoftherelevantBearerGlobalNoteshalberequired

forsuchpurpose.

APermanentBearerGlobalNotewilbexchangeable(freofchargetotheholder),onorafter

theExchangeDate,inwholebutnot,exceptasprovidedbysuchPermanentBearerGlobalNote,

inpart,fordefinitiveBearerNotes(a)ifsuchPermanentBearerGlobalNoteisheldonbehalf

ofEuroclear,Clearstream,theCMUoranyotherclearingsystem(an“AlternativeClearing

System”)andanysuchclearingsystemisclosedforbusinesforacontinuousperiodof14days

(otherthanbyreasonofholidays,statutoryorotherwise)oranouncesanintentionpermanently

toceasebusinesordoesinfactdosor(b)ifprincipalinrespectofsuchPermanentBearer

GlobalNoteisnotpaidwhendue,bytheholdergivingnoticetothePayingAgentorCMU

LodgingandPayingAgent(asaplicable)ofitselectionforsuchexchange.Forthesepurposes,

“ExchangeDate”meansadayfalingnotlesthan60daysorinthecaseofexchangefolowing

failuretopayprincipalinrespectofsuchPermanentBearerGlobalNotewhendue30days,

afterthatonwhichthenoticerequiringexchangeisgivenandonwhichbanksareopenfor

businesinthecityinwhichthespecifiedoficeofthePayingAgentorCMULodgingand

PayingAgent(asaplicable)islocatedand,exceptinthecaseofexchangepursuanto(a)

above,inthecitiesinwhichEuroclearandClearstreamandtheCMU(asaplicable)or,if

relevant,theAlternativeClearingSystem,arelocated.

ThefolowinglegendwilapearonalBearerNotesandonalreceiptsandinterestcoupons

relatingtosuchNotes:

“ANYUNITEDSTATESPERSONWHOHOLDSTHISOBLIGATIONWILBESUBJECTO

LIMITATIONSUNDERTHEUNITEDSTATESINCOMETAXLAWS,INCLUDINGTHE

LIMITATIONSPROVIDEDINSECTIONS165(J)AND1287(A)OFTHEINTERNAL

REVENUECODE.”

ThesectionsreferedtoprovidethatUnitedStatesholders,withcertainexceptions,wilnotbe

entitledtodeductanylosonBearerNotes,receiptsorinterestcouponsandwilnotbentitled

tocapitalgainstreatmentofanygainonanysale,disposition,redemptionorpaymentof

principalinrespectofsuchNotes,receiptsorinterestcoupons.

NoteswhicharerepresentedbyaBearerGlobalNotewilonlybetransferableinacordance

withtherulesandproceduresforthetimebeingofEuroclear,ClearstreamortheCMU,asthe

casemaybe.

REGISTEREDNOTES

TheRegisteredNotesofeachTrancheoferedandsoldinrelianceonRegulationS,whichwil

besoldoutsidetheUnitedStates,wilinitialyberepresentedbyaglobalnoteinregistered

form(a“RegisteredGlobalNote”,togetherwithanyBearerGlobalNote,the“GlobalNotes”).

RegisteredGlobalNoteswilbedepositedwithaComonDepositaryforandregisteredinthe

nameofacomonomineof,Euroclear,Clearstreamand/ordepositedwithasub-custodianfor

theCMU(ifaplicable)orsuchotherpersoninsuchotherplaceinacordancewiththeFiscal

AgencyAgrement.

Paymentsofprincipal,interestoranyotheramountinrespectoftheRegisteredNotesinglobal

formwil,intheabsenceofprovisiontothecontrary,bemadetothepersonshownonthe

NoneoftheIsuer,theBank,theFiscalAgent,anyPayingAgentortheRegistrarwilhaveany

responsibilityorliabilityforanyaspectoftherecordsrelatingtorpaymentsordeliveriesmade

onacountofbeneficialownershipinterestsintheRegisteredGlobalNotesorformaintaining,

supervisingoreviewinganyrecordsrelatingtosuchbeneficialownershipinterests.

Paymentsofprincipal,interestoranyotheramountinrespectoftheRegisteredNotesin

definitiveformwil,intheabsenceofprovisiontothecontrary,bemadetothepersonshown

ontheRegisterontherelevantRecordDate(asdefinedinCondition7(b)(i)oftheTermsand

ConditionsoftheNotes)imediatelyprecedingtheduedateforpaymentinthemaner

providedinthatCondition.

TRANSFEROFINTERESTS

InterestsinaRegisteredGlobalNotemay,subjectocompliancewithalaplicablerestrictions,

betransferedtoapersonwhowishestoholdsuchinterestinanotherRegisteredGlobalNote.

NobeneficialownerofaninterestinaRegisteredGlobalNotewilbeabletotransfersuch

interest,exceptinacordancewiththeaplicableproceduresofEuroclear,Clearstreamandthe

CMU,ineachcasetothextentaplicable.

GENERAL

ForsolongasaGlobalNoteoraGlobalCertificateislodgedwiththeCMU,(i)theCMU

LodgingandPayingAgentshalpayanyamountsofprincipalandinterestdueonaGlobalNote

oraGlobalCertificatetotheperson(s)notifiedbytheCMUtotheCMULodgingandPaying

Agentasbeingtheperson(s)forwhoseacount(s)interest(s)inthatGlobalNoteorGlobal

certificateiscreditedandtheCMULodgingandPayingAgentshalnotendorsethatGlobal

NoteorGlobalCertificateand(i)therecordsoftheCMU(intheabsenceofmanifesteror)

shalbeconclusivevidenceoftheidentityofthepersonstowhoseacountsinterestsinthat

GlobalNoteorGlobalCertificatearecreditedandtheprincipalamount(s)oftheinterest(s)and

oftheTrancheofNotesrepresentedbythatGlobalNoteorevidencedbythatGlobalCertificate.

Saveinthecaseofmanifesteror,theCMULodgingandPayingAgentshalbentitledtorely

onanyCMUIsuePositionReportoranyotherstatementbytheCMUoftheidentitiesand

interestsofpersonscreditedwithinterestsinthatGlobalNoteorGlobalCertificate.If,andfor

solongas,aGlobalNoteorGlobalCertificateisnotlodgedwiththeCMU,thePayingAgent

andtheotherAgentshalmakealpaymentsinrespectofthatGlobalNoteorGlobal

Certificateagainstpresentation(and,inthecaseofitsredemptioninful,surender)ofthat

GlobalNoteorGlobalCertificateand(unlesthatGlobalNoteorGlobalCertificateis

surendered)shalonbehalfoftherelevantIsuerendorse,orprocurethendorsementof,a

memorandumofeachsuchpaymentintherelevantscheduletothatGlobalNoteorGlobal

Certificateandreturnit,orcauseitobereturned,toitsbearerorholder.

ANotemaybeaceleratedbytheholderthereofincertaincircumstancesdescribedinCondition

10.IfprincipalinrespectofanyNotesrepresentedbyaGlobalNoteisnotpaidwhendue(but

subjectasprovidedbelow),theholderthereofmayfromtimetotimelecthatDirectRights

undertheprovisionsof(andasdefinedin)theamendedandrestatededofcovenant(as

furthersuplementedand/oramended,the“DedofCovenant”)executedbytheBankasof18

June2024shalcomeintoefectinrespectofanominalamountofNotesuptotheagregate

nominalamountinrespectofwhichsuchfailuretopayprincipalhasocured.Suchelection

shalbemadebynoticetoandpresentationoftheGlobalNoteto,thePayingAgentortheCMU

LodgingandPayingAgent(asaplicable)foreductionofthenominalamountofNotes

representedbysuchGlobalNotebysuchamountasmaybestatedinsuchnotice.Uponeach

suchnoticebeingiven,suchGlobalNoteshalbecomevoidtothextentofthenominal

amountstatedinsuchnotice,savetothextenthatheapropriateDirectRightshalfailto

takefect,forwhatevereason.

FORMOFPRICINGSUPLEMENT

TheformofPricingSuplementhatwilbeisuedinrespectofeachTranche,subjectonlyto

thedeletionofnon-aplicableprovisions,isetoutbelow:

[PROHIBITIONOFSALESTOEARETAILINVESTORS–TheNotesarenotintendedto

beofered,soldorotherwisemadeavailabletoandshouldnotbeofered,soldorotherwise

madeavailabletoanyretailinvestorintheEuropeanEconomicArea(“EA”).Forthese

purposes,aretailinvestormeansapersonwhoisone(ormore)of:(i)aretailclientasdefined

inpoint(11)ofArticle4(1)ofDirective2014/65/EU(asamended,“MiFIDI”);(i)acustomer

withinthemeaningofDirective(EU)2016/97(the“InsuranceDistributionDirective”),where

thatcustomerwouldnotqualifyasaprofesionalclientasdefinedinpoint(10)ofArticle4(1)

ofMiFIDI;or(i)notaqualifiedinvestorasdefinedinRegulation(EU)2017/1129(the

“ProspectusRegulation”).ConsequentlynokeyinformationdocumentrequiredbyRegulation

(EU)No1286/2014(asamendedthe“PRIPsRegulation”)foroferingorselingtheNotesor

otherwisemakingthemavailabletoretailinvestorsintheEAhasbenpreparedandtherefore

oferingorselingtheNotesorotherwisemakingthemavailabletoanyretailinvestorinthe

EAmaybeunlawfulunderthePRIPsRegulation.]

[PROHIBITIONOFSALESTOUKRETAILINVESTORS–TheNotesarenotintendedto

beofered,soldorotherwisemadeavailabletoandshouldnotbeofered,soldorotherwise

madeavailabletoanyretailinvestorintheUnitedKingdom(“UK”).Forthesepurposes,aretail

investormeansapersonwhoisone(ormore)of:(i)aretailclient,asdefinedinpoint(8)of

Article2ofRegulation(EU)No2017/565asitformspartofdomesticlawbyvirtueofthe

EuropeanUnion(Withdrawal)Act2018(“EUWA”);(i)acustomerwithinthemeaningofthe

provisionsoftheFinancialServicesandMarketsAct2000(“FSMA”)andanyrulesor

regulationsmadeundertheFSMAtoimplementDirective(EU)2016/97,wherethatcustomer

wouldnotqualifyasaprofesionalclient,asdefinedinpoint(8)ofArticle2(1)ofRegulation

(EU)No600/2014asitformspartofdomesticlawbyvirtueoftheEUWA;or(i)nota

qualifiedinvestorasdefinedinArticle2ofRegulation(EU)2017/1129asitformspartof

domesticlawbyvirtueoftheEUWA.Consequentlynokeyinformationdocumentrequiredby

Regulation(EU)No1286/2014asitformspartofdomesticlawbyvirtueoftheEUWA(the

“UKPRIPsRegulation”)foroferingorselingtheNotesorotherwisemakingthemavailable

toretailinvestorsintheUKhasbenpreparedandthereforeoferingorselingtheNotesor

otherwisemakingthemavailabletoanyretailinvestorintheUKmaybeunlawfulundertheUK

PRIPsRegulation.]

[MiFIDIproductgovernance/ProfesionalinvestorsandECPsonlytargetmarket–Solely

forthepurposesof[the/each]manufacturer’sproductaprovalproces,thetargetmarket

asesmentinrespectoftheNoteshasledtotheconclusionthat:(i)thetargetmarketforthe

Notesiseligiblecounterpartiesandprofesionalclientsonly,eachasdefinedin[Directive

2014/65/EU(asamended,“MiFIDI”)]/[MiFIDI];and(i)alchanelsfordistributionofthe

Notestoeligiblecounterpartiesandprofesionalclientsareapropriate.[Consideranynegative

targetmarket]Anypersonsubsequentlyofering,selingorecomendingtheNotes(a

“distributor”)shouldtakeintoconsiderationthemanufacturer[’s/s’]targetmarketasesment;

however,adistributorsubjectoMiFIDIisresponsibleforundertakingitsowntargetmarket

asesmentinrespectoftheNotes(byeitheradoptingorefiningthemanufacturer[’s/s’]target

marketasesment)andeterminingapropriatedistributionchanels.]

[UKMiFIRproductgovernance/ProfesionalinvestorsandECPsonlytargetmarket–

Solelyforthepurposesof[the/each]manufacturer’sproductaprovalproces,thetargetmarket

asesmentinrespectoftheNoteshasledtotheconclusionthat:(i)thetargetmarketforthe

Notesisonlyeligiblecounterparties,asdefinedintheFCAHandbokConductofBusines

Sourcebok(“COBS”),andprofesionalclients,asdefinedinRegulation(EU)No600/2014as

itformspartofdomesticlawbyvirtueoftheEuropeanUnion(Withdrawal)Act2018(“UK

MiFIR”);and(i)alchanelsfordistributionoftheNotestoeligiblecounterpartiesand

profesionalclientsareapropriate.[Consideranynegativetargetmarket]Anyperson

subsequentlyofering,selingorecomendingtheNotes(a“distributor”)shouldtakeinto

considerationthemanufacturer[’s/s’]targetmarketasesment;however,adistributorsubjecto

theFCAHandbokProductInterventionandProductGovernanceSourcebok(the“UKMiFIR

ProductGovernanceRules”)isresponsibleforundertakingitsowntargetmarketasesmentin

respectoftheNotes(byeitheradoptingorefiningthemanufacturer[’s/s’]targetmarket

asesment)andeterminingapropriatedistributionchanels.]

[SingaporeSFAProductClasification:InconectionwithSection309BoftheSecuritiesand

FuturesAct2001(2020revisededition)ofSingapore(the“SFA”)andtheSecuritiesandFutures

(CapitalMarketsProducts)Regulations2018ofSingapore(the“CMPRegulations2018”),the

Isuerhasdetermined,andherebynotifiesalrelevantpersons(asdefinedinSection309A(1)of

theSFA),thatheNotesare[prescribedcapitalmarketsproducts]/[capitalmarketsproducts

otherthanprescribedcapitalmarketsproducts](asdefinedintheCMPRegulations2018)[and

[are][Excluded]/[Specified]InvestmentProducts(asdefinedinMASNoticeSFA04-N12:

NoticeontheSaleofInvestmentProductsandMASNoticeFA-N16:Noticeon

RecomendationsonInvestmentProducts).]

PricingSuplementdated[●]

[ISUER]

(ajointstockcompanyincorporatedinthePeople’sRepublicofChinawithlimitedliability)

Isueof[AgregateNominalAmountofTranche][TitleofNotes]due[●](the“Notes”)

undertheU.S.$5,000,000,000MediumTermNotePrograme(the“Programe”)

ThisdocumentconstitutesthePricingSuplementfortheNotesdescribedherein.Thisdocument

mustbereadinconjunctionwiththeOferingCirculardated18June2024[andthesuplement

toitdated[●]([together,]the“OferingCircular”).FulinformationontheIsuerandthe

oferoftheNotesisonlyavailableonthebasisofthecombinationofthisPricingSuplement

andtheOferingCircular.[CopiesoftheOferingCircularmaybeobtainedfrom[adres].

ForanyNotestobeoferedtoSingaporeinvestors,theIsuertoconsiderwhetheritnedstore-clasifythe

NotespursuantoSection309BoftheSFApriortothelaunchoftheofer.

TermsusedhereinshalbedemedtobedefinedasuchforthepurposesoftheTermsand

Conditions(the“Conditions”)setforthintheOferingCircular.

[ThefolowinglanguageaplieswheretherelevantSeriesofNoteswilbelistedontheHong

KongStockExchange:

Thisdocumentisfordistributiontoprofesionalinvestors(asdefinedinChapter37oftheRules

GoverningtheListingofSecuritiesonTheStockExchangeofHongKongLimited)

(“ProfesionalInvestors”)only.

TheStockExchangeofHongKongLimited(“HKSE”)hasnotreviewedthecontentsofthis

document,otherthantoensurethatheprescribedformdisclaimerandresponsibility

statements,andastatementlimitingdistributionofthisdocumentoProfesionalInvestors

onlyhavebenreproducedinthisdocument.ListingoftheProgrameortheNoteson

HKSEisnotobetakenasanindicationofthecomercialmeritsorcreditqualityofthe

Programe,theNotesortheIsuer,theBankortheGrouporqualityofdisclosureinthis

document.HongKongExchangesandClearingLimitedandHKSEtakenoresponsibilityforthe

contentsofthisdocument,makenorepresentationastoitsacuracyorcompletenesand

expreslydisclaimanyliabilitywhatsoeverforanyloshowsoeverarisingfromorinreliance

uponthewholeoranypartofthecontentsofthisdocument.

NoticetoHongKonginvestors:TheIsuerconfirmsthatheNotesareintendedfor

purchasebyProfesionalInvestorsonlyandwilbelistedonHKSEonthatbasis.

Acordingly,theIsuerconfirmsthatheNotesarenotapropriateasaninvestmentfor

retailinvestorsinHongKong.Investorshouldcarefulyconsidertherisksinvolved.

Thisdocument,togetherwiththeOferingCircular,includesparticularsgivenincompliance

withtheRulesGoverningtheListingofSecuritiesonTheStockExchangeofHongKong

LimitedforthepurposeofgivinginformationwithregardtotheIsuer,theBankandtheGroup.

TheIsueraceptsfulresponsibilityfortheacuracyoftheinformationcontainedinthis

documentandconfirms,havingmadealreasonablenquiries,thatothebestofitsknowledge

andbelieftherearenotherfactstheomisionofwhichwouldmakeanystatementherein

misleading.]

1.Isuer:[NameoftheIsuer]

2.(i)[SeriesNumber:][●]

(i)[TrancheNumber(Ifungiblewithan

existingSeries,detailsofthatSeries,

includingthedateonwhichtheNotes

becomefungible):]

[●]

3.SpecifiedCurencyorCurencies:[●]

4.AgregateNominalAmount:[●]

(i)[Series:][●]

(i)[Tranche:][●]

5.(i)[IsuePrice:][●]percent.oftheAgregateNominal

Amount[plusacruedinterestfrom

[insertdate](inthecaseofungible

isuesonly,ifaplicable)]

(i)[NetProceds:[●](Requiredonlyforlistedisues)]

(i)[Useofproceds:[●](Requiredifdiferentfromthe

OferingCircular)]

6.(i)SpecifiedDenominations:[●]

(1)

(i)CalculationAmount

(4)

:[●](IfonlyoneSpecifiedDenomination,

insertheSpecifiedDenomination.If

morethanoneSpecifiedDenomination,

inserthehighestcomonfactor.Note:

Theremustbeacomonfactorinthe

caseoftwormoreSpecified

Denominations.)

7.(i)IsueDate:[●]

(i)InterestComencementDate:[Specify/Isuedate/NotAplicable]

8.MaturityDate:[Specifydate(forFixedRateNotes)or

(forFloatingRateNotes)Interest

PaymentDatefalinginornearestothe

relevantmonthandyear]

(2)

9.InterestBasis:[●]percent.FixedRate]

[Specifyreferencerate]+/-[●]percent.

FloatingRate]

[ZeroCoupon]

[IndexLinkedInterest]

[Other(Specify)]

(furtherparticularspecifiedbelow)

10.Redemption/PaymentBasis:[Redemptionatpar]

[IndexLinkedRedemption]

[DualCurency]

[PartlyPaid][Instalment]

[Other(Specify)]

11.ChangeofInterestorRedemption/

PaymentBasis:

[Specifydetailsofanyprovisionfor

convertibilityofNotesintoanother

interestoredemption/paymentbasis]

12.Put/CalOptions:[Put]

[Cal]

[(furtherparticularspecifiedbelow)]

13.StatusoftheNotes:SeniorNotes

14.Listing:[TheStockExchangeofHongKong

Limited/Other(specify)/None(ForNotes

tobelistedontheHongKongStock

Exchange,inserthexpectedefective

listingdateoftheNotes)]

15.Methodofdistribution:[Syndicated/Non-syndicated]

PROVISIONSRELATINGTOINTEREST(IFANY)PAYABLE

16.FixedRateNoteProvisions[Aplicable/NotAplicable]

(Ifnotaplicable,deletetheremaining

sub-paragraphsofthisparagraph)

(i)Rate[(s)]ofInterest:[●]percent.peranum[payable

[anualy/semi-anualy/quarterly/monthly]

inarear]

(i)InterestPaymentDate(s):[●]ineachyear

(3)

[adjustedinacordance

with[specifyBusinesDayConvention

andanyaplicableBusinesCentre(s)

forthedefinitionof“BusinesDay”]/not

adjusted]

(i)FixedCouponAmount[(s)]:[●]perCalculationAmount

(4)

(iv)BrokenAmount:[●]perCalculationAmount,payableon

theInterestPaymentDatefaling[in/on]

[●][Insertparticularsofanyinitialor

finalbrokeninterestamountswhichdo

notcorespondwiththeFixedCoupon

Amount[(s)]andtheInterestPayment

Date(s)towhichtheyrelate]

(v)DayCountFraction(Condition5(j):[30/360/Actual/Actual(ICMA/ISDA)

/Actual/365(Fixed)

(10)

/Other]

(Daycountfractionshouldbe

Actual/Actual-ICMAforalfixedrate

isuesotherthanthoseDenominatedin

U.S.dolars,RenminbiorHongKong

dolars,unlestheclientrequests

otherwise)

(vi)DeterminationDate(s)

(Condition5(j):

[●]ineachyear[Insertregularinterest

paymentdates,ignoringisuedateor

maturitydateinthecaseofalongor

shortfirstorlastcoupon]

(5)

(vi)Othertermsrelatingtothemethodof

calculatinginterestforFixedRate

Notes:

[NotAplicable/givedetails]

17.FloatingRateNoteProvisions[Aplicable/NotAplicable](Ifnot

aplicable,deletetheremaining

sub-paragraphsofthisparagraph)

(i)InterestPeriod(s):[●]

(i)SpecifiedInterestPaymentDates:[●]

(i)InterestPeriodDate(s):[NotAplicable/specifydates](Not

aplicableunlesdiferentfromInterest

PaymentDate)

(iv)BusinesDayConvention:[FloatingRateNoteConvention/

FolowingBusinesDayConvention/

ModifiedFolowingBusinesDay

Convention/PrecedingBusinesDay

Convention/other(givedetails)]

(v)BusinesCentre(s)(Condition5(j):[●]

(vi)ManerinwhichtheRate(s)of

Interestis/aretobedetermined:

[ScrenRateDetermination/ISDA

Determination/other(givedetails)]

(vi)Partyresponsibleforcalculatingthe

Rate(s)ofInterestandInterest

Amount(s):

[●]

(vi)ScrenRateDetermination(Condition

5(b)(i)(B):

[●]

(cid:129)ReferenceRate:[●]

(cid:129)InterestDeterminationDate(s):[●][T2]BusinesDaysin[specifycity]

for[specifycurency]priorto[thefirst

dayineachInterestAcrualPeriod/each

InterestPaymentDate]

(cid:129)RelevantScrenPage:[●]

(ix)ScrenRateDetermination(SOFR)

(Condition5(b)(i)(C):

(cid:129)SOFRBenchmark:[SimpleSOFRAverage/CompoundedDaily

SOFR/CompoundedSOFRIndex]

(cid:129)CompoundedDailySOFR

Method:

[NotAplicable/SOFRLag/SOFR

ObservationShift/SOFRPayment

Delay/SOFRLockout]

(Onlyaplicableinthecaseof

CompoundedDailySOFR)

(cid:129)InterestDeterminationDate(s):[The[●]U.S.GovernmentSecurities

BusinesDaypriortothelastdayof

eachInterestAcrualPeriod–only

aplicableinthecaseofSimpleSOFR

Average/SOFRLag/SOFRObservation

Shift/SOFRLockout/CompoundedSOFR

Index]

[TheInterestPeriodDateathendof

eachInterestPeriod,providedthathe

InterestDeterminationDatewithrespect

tothefinalInterestAcrualPeriodwil

betheU.S.GovernmentSecurities

BusinesDayimediatelyfolowingthe

relevantSOFRateCut-OfDate–only

aplicableinthecaseofSOFRPayment

Delay]

(cid:129)LokbackDays:[NotAplicable/[●]U.S.Government

SecuritiesBusinesDay(s)]

(OnlyaplicableinthecaseofSOFRLag)

(cid:129)SOFRObservationShiftDays:[NotAplicable/[●]U.S.Government

SecuritiesBusinesDays]

(OnlyaplicableinthecaseofSOFR

ObservationShiftorCompoundedSOFR

Index)

(cid:129)InterestPaymentDelayDays:[NotAplicable/[●]U.S.Government

SecuritiesBusinesDay(s)]

(OnlyaplicableinthecaseofSOFR

PaymentDelay)

(cid:129)SOFRateCut-OfDate:[NotAplicable/Thedaythatisthe[●]

U.S.GovernmentSecuritiesBusines

Day(s)priortothendofeachInterest

AcrualPeriod]

(OnlyaplicableinthecaseofSimple

SOFRAverage,CompoundedDaily

SOFR:SOFRPaymentDelayor

CompoundedDailySOFR:SOFR

Lockout)

(cid:129)SOFRIndexStart[NotAplicable/[●]U.S.Government

SecuritiesBusinesDay(s)]

(Onlyaplicableinthecaseof

CompoundedSOFRIndex)

(cid:129)SOFRIndexEnd[NotAplicable/[●]U.S.Government

SecuritiesBusinesDay(s)]

(Onlyaplicableinthecaseof

CompoundedSOFRIndex)

(x)ISDADetermination(Condition

5(b)(i)(A):

(cid:129)FloatingRateOption:[●]

(cid:129)DesignatedMaturity:[●]

(cid:129)ResetDate:[●]

(cid:129)ISDADefinitions:2006(ifdiferentothosesetoutinthe

Conditions,pleasespecify)

(xi)Margin(s):[+/-][●]percent.peranum

(xi)MinimumRateofInterest:[●]percent.peranum

(xi)MaximumRateofInterest:[●]percent.peranum

(xiv)DayCountFraction(Condition5(j):[●]

(xv)Falbackprovisions,rounding

provisions,denominatorandanyother

termsrelatingtothemethodof

calculatinginterestonFloatingRate

Notes,ifdiferentfromthosesetout

intheConditions:

[BenchmarkDiscontinuation(General)

(Condition5(b)(iv)/Benchmark

Discontinuation(SOFR)(Condition

5(b)(v)/specifyotherifdiferentfrom

thosesetoutintheConditions]

18.ZeroCouponNoteProvisions[Aplicable/NotAplicable](Ifnot

aplicable,deletetheremaining

sub-paragraphsofthisparagraph)

(i)AmortisationYield(Condition6(b):[●]percent.peranum

(i)DayCountFraction(Condition5(j):[●]

(i)Anyotherformula/basisof

determiningamountpayable:

[●]

IndexLinkedInterestNoteProvisions[Aplicable/NotAplicable](Ifnot

aplicable,deletetheremaining

sub-paragraphsofthisparagraph)

19.(i)Index/Formula:[Giveoranexdetails]

(i)Partyresponsibleforcalculatingthe

Rate(s)ofInterestand/orInterest

Amount(s)(ifnothe[Agent]):

[●]

(i)ProvisionsfordeterminingCoupon

wherecalculationbyreferenceto

Indexand/orFormulaisimposibleor

impracticable:

[●]

(iv)InterestPeriod(s):[●]

(v)SpecifiedInterestPaymentDates:[●]

(vi)BusinesDayConvention:[FloatingRateBusinesDay

Convention/FolowingBusinesDay

Convention/ModifiedFolowingBusines

DayConvention/PrecedingBusinesDay

Convention/other(givedetails)]

(vi)BusinesCentre(s)(Condition5(j):[●]

(vi)MinimumRateofInterest:[●]percent.peranum

(ix)MaximumRateofInterest:[●]percent.peranum

(x)DayCountFraction(Condition5(j):[●]

20.DualCurencyNoteProvisions[Aplicable/NotAplicable](Ifnot

aplicable,deletetheremaining

sub-paragraphsofthisparagraph)

(i)RateofExchange/Methodof

calculatingRateofExchange:

[Givedetails]

(i)Party,ifany,responsiblefor

calculatingtheRate(s)ofInterestand

InterestAmount(s)(ifnothe

[Agent]):

[●]

(i)Provisionsaplicablewhere

calculationbyreferencetoRateof

Exchangeimposibleor

impracticable:

[●]

(iv)PersonatwhoseoptionSpecified

Curency(ies)is/arepayable:

[●]

(v)DayCountFraction(Condition5(j):[●]

PROVISIONSRELATINGTOREDEMPTION

21.CalOption[Aplicable/NotAplicable](Ifnot

aplicable,deletetheremaining

sub-paragraphsofthisparagraph)

(i)OptionalRedemptionDate(s):[●]

(i)OptionalRedemptionAmount(s)of

eachNoteandmethod,ifany,of

calculationofsuchamount(s):

[●]perCalculationAmount

(i)Ifredemableinpart:

(a)MinimumRedemptionAmount:[●]perCalculationAmount

(b)MaximumRedemptionAmount:[●]perCalculationAmount

(iv)Noticeperiod:[●]

22.PutOption[Aplicable/NotAplicable](Ifnot

aplicable,deletetheremaining

sub-paragraphsofthisparagraph)

(i)OptionalRedemptionDate(s):[●]

(i)OptionalRedemptionAmount(s)of

eachNoteandmethod,ifany,of

calculationofsuchamount(s):

[●]perCalculationAmount

(i)Noticeperiod:[●]

23.FinalRedemptionAmountofeachNote[●]perCalculationAmount

24.EarlyRedemptionAmount

(i)EarlyRedemptionAmount(s)per

CalculationAmountpayableon

redemptionfortaxationreasons

(Condition6(c)oranEventof

Default(Condition10and/orthe

methodofcalculatingthesame(if

requiredorifdiferentfromthatset

outintheConditions):

[●]

GENERALPROVISIONSAPLICABLETOTHENOTES

25.FormofNotes:[BearerNotes/RegisteredNotes]

[TemporaryGlobalNotexchangeablefor

aPermanentGlobalNotewhichis

exchangeableforDefinitiveNotesinthe

limitedcircumstancespecifiedinthe

PermanentGlobalNote]

[TemporaryGlobalNotexchangeablefor

DefinitiveNoteson[●]days’notice]

[PermanentGlobalNotexchangeablefor

DefinitiveNotesinthelimited

circumstancespecifiedinthePermanent

GlobalNote]

[PermanentGlobalNotexchangeablefor

DefinitiveNoteson[●]days’notice/at

anytime]

[PermanentGlobalCertificate

exchangeableforDefinitiveCertificates

inthelimitedcircumstancespecifiedin

thePermanentGlobalCertificate]

[PermanentGlobalCertificate

exchangeableforDefinitiveCertificates

on[●]days’notice/atanytime]

(6)(7)

26.FinancialCentre(s)(Condition7)orother

specialprovisionsrelatingtopayment

dates:

[NotAplicable/Givedetails.Notethathis

itemrelatestothedateandplaceof

payment,andnotinterestperiodend

dates,towhichitem16(i),17(iv)and

19(vi)relate]

27.TalonsforfutureCouponsorReceiptsto

beatachedtoDefinitiveNotes(and

datesonwhichsuchTalonsmature):

[Yes/No.Ifyes,givedetails]

28.DetailsrelatingtoPartlyPaidNotes:

amountofeachpaymentcomprisingthe

IsuePriceandateonwhicheach

paymentistobemadeandconsequences

(ifany)ofailuretopay,includingany

rightoftheIsuertoforfeitheNotes

andinterestdueonlatepayment:

[NotAplicable/givedetails]

29.DetailsrelatingtoInstalmentNotes:[NotAplicable/givedetails]

(i)InstalmentAmount(s):[●]

(i)InstalmentDate(s):[●]

(i)MinimumInstalmentAmount:[●]

(iv)MaximumInstalmentAmount:[●]

30.Redenomination,renominalisationand

reconventioningprovisions:

[NotAplicable/Theprovisionsanexedto

thisPricingSuplementaply]

31.Consolidationprovisions:[NotAplicable/Theprovisionsanexedto

thisPricingSuplementaply]

32.Othertermsorspecialconditions:[NotAplicable/givedetails]

(7)

DISTRIBUTION

33.(i)Ifsyndicated,namesofManagers:[NotAplicable/givenames]

(i)StabilisationManager(ifany):[NotAplicable/givename]

34.Ifnon-syndicated,nameofDealer:[NotAplicable/givename]

35.U.S.SelingRestrictions[SpecifytheaplicablecategoryofU.S.

SelingRestrictions/NotAplicable]

36.ProhibitionofSalestoEARetail

Investors:

[Aplicable/NotAplicable]

(IftheNotesclearlydonotconstitute

“packaged”products,ortheNotesdo

constitute“packaged”productsanda

keyinformationdocumentwilbe

preparedintheEA,“NotAplicable”

shouldbespecified.IftheNotesmay

constitute“packaged”productsandno

keyinformationdocumentwilbe

preparedintheEA,“Aplicable”

shouldbespecified.)

37.ProhibitionofSalestoUKRetail

Investors:

[Aplicable/NotAplicable]

(IftheNotesclearlydonotconstitute

“packaged”products,ortheNotesdo

constitute“packaged”productsanda

keyinformationdocumentwilbe

preparedintheUK,“NotAplicable”

shouldbespecified.IftheNotesmay

constitute“packaged”productsandno

keyinformationdocumentwilbe

preparedintheUK,“Aplicable”should

bespecified.)

38.SingaporeSalestoInstitutionalInvestors

andAcreditedInvestorsonly

[Aplicable/NotAplicable]

39.Aditionalselingrestrictions:[NotAplicable/givedetails]

OPERATIONALINFORMATION

40.ISINCode:[●]

41.ComonCode:[●]

42.CMUInstrumentNumber:[●]

43.LegalEntityIdentifierofthe

[Bank/Isuer]:

[300300C1030211000384]/[●]

44.Anyclearingsystem(s)otherthan

Euroclear,ClearstreamandtheCMUand

therelevantidentificationumber(s):

[NotAplicable/givename(s)and

number(s)]

45.Delivery:Delivery[against/freof]payment

46.AditionalPayingAgents(ifany):[●]

GENERAL

47.TheagregateprincipalamountofNotes

isuedhasbentranslatedintoU.S.

dolarsatherateof[●],producinga

sumof(forNotesnotdenominatedin

U.S.dolars):

[NotAplicable/U.S.$[●]

48.InthecaseofRegisteredNotes,specify

thelocationoftheoficeoftheRegistrar

ifotherthanHongKong:

[NotAplicable/Luxembourg]

49.InthecaseofBearerNotes,specifythe

locationoftheoficeoftheFiscalAgent

ifotherthanLondon:

[NotAplicable/HongKong]

50.(i)Dateofcorporateaproval(s)forthe

isuanceoftheNotes

[●]

(i)Dateofanyregulatoryaprovalfor

theisuanceoftheNotes

[●]

51.[Ratings:TheNotestobeisuedarexpectedtobe

rated[●]by[●]

52.HongKongSFCodeofConduct

(i)Rebates[Arebateof[●]bpsisbeingoferedby

the[Isuer]toalprivatebanksfor

orderstheyplace(otherthaninrelation

toNotesubscribedbysuchprivate

banksasprincipalwherebyitis

deployingitsownbalanceshetfor

onwardselingtoinvestors),payable

uponclosingofthisoferingbasedon

theprincipalamountoftheNotes

distributedbysuchprivatebanksto

investors.Privatebanksaredemedto

beplacinganorderonaprincipalbasis

unlestheyinformtheCMIsotherwise.

Asaresult,privatebanksplacingan

orderonaprincipalbasis(including

thosedemedasplacinganorderas

principal)wilnotbentitledto,and

wilnotbepaid,therebate.]/[Not

Aplicable]

(i)Contactemailadresesofthe

OveralCordinatorswhere

underlyinginvestorinformationin

relationtomnibusordershouldbe

sent

[Includerelevantcontactemailadreses

oftheOveralCordinatorswherethe

underlyinginvestorinformationshould

besent–OCstoprovide]/[Not

Aplicable]

(i)MarketingandInvestorTargeting

Strategy

[IfdiferentfromtheprogrameOC]

[LISTINGAPLICATION

ThisPricingSuplementcomprisesthefinaltermsrequiredtolistheisueofNotesdescribed

hereinpursuantotheU.S.$5,000,000,000MediumTermNoteProgrameofChinaCITICBank

CorporationLimited中信银行股份有限公司.]

[STABILISATION

Inconectionwiththisisue,oneormoreoftheManagersnamedasStabilisationManager(or

person(s)actingonbehalfofanyStabilisationManager(s)inthisPricingSuplementmay

over-alotNotesorefectransactionswithaviewtosuportingthemarketpriceoftheNotesat

alevelhigherthanthatwhichmightotherwiseprevail.However,stabilisationmaynot

necesarilyocur.Anystabilisationactionmaybeginonorafterthedateonwhichadequate

publicdisclosureofthetermsoftheoferoftheNotesismadeand,ifbegun,mayceaseatany

time,butitmustendnolaterthanthearlierof30daysaftertheisuedateoftheNotesand60

daysafterthedateofthealotmentoftheNotes.Anystabilisationactionoroveralotmentmust

beconductedbytherelevantStabilisationManager(s)(orperson(s)actingonbehalfofany

StabilisationManager)inacordancewithalaplicablelawsandrules.]

[NOMATERIALADVERSECHANGESTATEMENT

[Exceptasdisclosedinthisdocument,there/There]

(8)

hasbenosignificantchangeinthe

financialortradingpositionoftheIsueroroftheGroupsince[insertdateoflastaudited

acountsorinterimacounts(iflater)]andnomaterialadversechangeinthefinancialposition

orprospectsoftheIsueroroftheGroupsince[insertdateoflastpublishedanualacounts].]

RESPONSIBILITY

TheIsueraceptsresponsibilityfortheinformationcontainedinthisPricingSuplement.

SignedonbehalfoftheIsuer:

By:

Dulyauthorised

(1)

Notes(includingNotesdenominatedinsterling)inrespectofwhichtheisueprocedsaretobeaceptedbythe

IsuerintheUnitedKingdomorwhoseisueotherwiseconstitutesacontraventionofsection19oftheFSMA

andwhichaveamaturityoflesthanoneyearmusthaveaminimumredemptionvalueof£100,000(orits

equivalentinothercurencies).

Ifthespecifiedenominationisexpresedtobe€100,000oritsequivalentandmultiplesofalowerprincipal

amount(forexample€1,000),insertheaditionalwordingsetoutintheGuidanceNotepublishedbyICMAin

November2006(oritsreplacementfromtimetotime)asfolows:“€100,000andintegralmultiplesof€1,000in

excesthereofuptoandincluding€199,000.Nonotesindefinitiveformwilbeisuedwithadenomination

above€199,000”.

(2)

NotethatforRenminbiorHongKongdolardenominatedFixedRateNoteswheretheInterestPaymentDates

aresubjectomodificationitwilbenecesarytousethesecondoptionhere.

(3)

NotethatforcertainRenminbiorHongKongdolardenominatedFixedRateNotestheInterestPaymentDates

aresubjectomodificationandthefolowingwordshouldbeaded:“providedthatifanyInterestPayment

DatefalsonadaywhichisnotaBusinesDay,theInterestPaymentDatewilbethenextsucedingBusines

DayunlesitwouldtherebyfalinthenextcalendarmonthinwhicheventheInterestPaymentDateshalbe

broughtforwardtotheimediatelyprecedingBusinesDay.”

(4)

ForRenminbiorHongKongdolardenominatedFixedRateNoteswheretheInterestPaymentDatesaresubject

tomodificationthefolowingalternativewordingisapropriate:“EachFixedCouponAmountshalbecalculated

bymultiplyingtheproductoftheRateofInterestandtheCalculationAmountbytheDayCountFractionand

roundingtheresultantfiguretothenearestCNY0.01,CNY0.05inthecaseofRenminbidenominatedFixedRate

NotesortothenearestHK$0.01,HK$0.005inthecaseofHongKongdolardenominatedFixedRateNotes,

beingroundedupwards.”

(5)

OnlytobecompletedforanisuewheretheDayCountFractionisActual/Actual-ICMA.

(6)

IftheGlobalNote/CertificateisexchangeableforDefinitiveNotes/Certificatesatheoptionoftheholder,the

NoteshalbetradeableonlyinamountsofatleastheSpecifiedDenomination(orifmorethanoneSpecified

Denomination,thelowestSpecifiedDenomination)providedinparagraph6andmultiplesthereof.

(7)

Onlyaplicableifpermitedbytherulesoftherelevantclearingsystem.Thelimitedcircumstancesinwhich

exchangeispermitedaresetoutunderthesection“SumaryofProvisionsRelatingtoNoteswhileRepresented

byGlobalNotesorGlobalCertificates–Exchange”intheOferingCircular.

(8)

Ifultermsandconditionsaretobeused,pleaseadthefolowinghere:“ThefultextoftheConditionswhich

aplytotheNotes[andwhichwilbendorsedontheNotesindefinitiveform]aresetoutin[theAnex

hereto],whichConditionsreplaceintheirentiretythoseapearingintheOferingCircularforthepurposesof

theseNotesandsuchConditionswilprevailoveranyotherprovisiontothecontrary”.Thefirstsetofbracketed

wordsistobedeletedwherethereisaPermanentGlobalNoteinsteadofNotesindefinitiveform.Theful

ConditionshouldbeatachedtoandformpartofthePricingSuplement.

(9)

IfanychangeisdisclosedinthePricingSuplement,itmayrequireaprovalbytheStockExchange(s).

Considerationshouldbegivenastowhetherornotsuchdisclosureshouldbemadebymeansofasuplemental

OferingCircularatherthaninaPricingSuplement.

(10)

AplicabletoRenminbiandHongKongdolardenominatedFixedRateNotes.

TERMSANDCONDITIONSOFTHENOTES

Thefolowingisthetextofthetermsandconditionsthat,saveforthewordsinitalicsand

subjectocompletionandamendmentandasuplementedorvariedinacordancewiththe

provisionsoftherelevantPricingSuplement,shalbeaplicabletotheNotesindefinitiveform

(ifany)isuedinexchangefortheGlobalNote(s)ortheGlobalCertificaterepresentingeach

Series.Either(i)thefultextofthesetermsandconditionstogetherwiththerelevantprovisions

ofthePricingSuplementor(i)thesetermsandconditionsasocompleted,amended,

suplementedorvaried(andsubjectosimplificationbythedeletionofnon-aplicable

provisions),shalbendorsedonsuchBearerNotesorontheCertificatesrelatingtosuch

RegisteredNotes.AlcapitalisedtermsthatarenotdefinedintheseConditionswilhavethe

meaningsgiventothemintherelevantPricingSuplement.Thosedefinitionswilbendorsed

onthedefinitiveNotesorCertificates,asthecasemaybe.ReferencesintheConditionsto

“Notes”aretotheNotesofoneSeriesonly,notoalNotesthatmaybeisuedunderthe

Programe.

TheNotesarepartofaSeries(asdefinedbelow)ofNotesisuedbyChinaCITICBank

CorporationLimited中信银行股份有限公司(the“Bank”)ortherelevantbranchoftheBankas

specifiedhereon(the“Isuer”)andareisuedpursuantoanamendedandrestatedfiscalagency

agrement(asfurtheramended,restatedorsuplementedasatheIsueDate,the“Fiscal

AgencyAgrement”)dated18June2024whichasbenenteredintoinrelationtotheNotes

betwentheBank(onbehalfofitselfandonbehalfofitsbranches),CiticorpInternational

Limitedasfiscalagent,CMUlodgingandpayingagentandtheotheragentsnamedinitand

withthebenefitofanamendedandrestatedDedofCovenant(asfurtheramended,restatedor

suplementedasatheIsueDate,the“DedofCovenant”)dated18June2024executedbythe

Bank(onbehalfofitselfandonbehalfofitsbranches)inrelationtotheNotes.Thefiscalagent,

theCMUlodgingandpayingagent,theotherpayingagents,theregistrar,thetransferagent(s)

andthecalculationagent(s)forthetimebeing(ifany)arereferedtobelowrespectivelyasthe

“FiscalAgent”,the“CMULodgingandPayingAgent”,the“PayingAgents”(which

expresionshalincludetheFiscalAgentandtheCMULodgingandPayingAgent),the

“Registrar”,the“TransferAgents”(whichexpresionshalincludetheRegistrar)andthe

“CalculationAgent(s)”(suchFiscalAgent,CMULodgingandPayingAgent,PayingAgents,

RegistrarandTransferAgent(s)beingtogethereferedtoasthe“Agents”).Forthepurposesof

thesetermsandconditions(the“Conditions”),alreferencestotheFiscalAgentshal,with

respectoaSeriesofNotestobeheldintheCMU,bedemedtobereferencestotheCMU

LodgingandPayingAgentandalsuchreferenceshalbeconstruedacordingly.Copiesofthe

FiscalAgencyAgrementandtheDedofCovenantareavailableforinspectionduringusual

busineshoursathespecifiedoficesofthePayingAgents.

TheNoteholders(asdefinedbelow),theholdersoftheinterestcoupons(the“Coupons”)

relatingtointerestbearingNotesinbearerformand,whereaplicableinthecaseofsuchNotes,

talonsforfurtherCoupons(the“Talons”)(the“Couponholders”)andtheholdersofthereceipts

forthepaymentofinstalmentsofprincipal(the“Receipts”)relatingtoNotesinbearerformof

whichtheprincipalispayableininstalmentsarentitledtothebenefitofandaredemedto

havenoticeofaloftheprovisionsoftheFiscalAgencyAgrementaplicabletothem.

AsusedintheseConditions,“Tranche”meansNoteswhichareidenticalinalrespects.

1.FORM,DENOMINATIONANDTITLE

TheNotesareisuedinbearerform(“BearerNotes”)orinregisteredform(“Registered

Notes”)ineachcaseintheSpecifiedDenomination(s)shownhereon.

ThisNoteisaFixedRateNote,aFloatingRateNote,aZeroCouponNote,anIndex

LinkedInterestNote,anIndexLinkedRedemptionNote(togetherwithanIndexLinked

InterestNote,an“IndexLinkedNote”),anInstalmentNote,aDualCurencyNoteora

PartlyPaidNote,acombinationofanyoftheforegoingoranyotherkindofNote,

dependingupontheInterestBasisandRedemption/PaymentBasishownhereon.

BearerNotesareserialynumberedandareisuedwithCoupons(and,whereapropriate,a

Talon)atached,saveinthecaseofZeroCouponNotesinwhichcasereferencestointerest

(otherthaninrelationtointerestdueaftertheMaturityDate),CouponsandTalonsinthese

Conditionsarenotaplicable.InstalmentNotesareisuedwithoneormoreReceipts

atached.

RegisteredNotesarerepresentedbyregisteredcertificates(“Certificates”)and,saveas

providedinCondition2(c),eachCertificateshalrepresenthentireholdingofRegistered

Notesbythesameholder.

TitletotheBearerNotesandtheReceipts,CouponsandTalonshalpasbydelivery.Title

totheRegisteredNoteshalpasbyregistrationintheregisterthatheIsuershal

procuretobekeptbytheRegistrarinacordancewiththeprovisionsoftheFiscalAgency

Agrement(the“Register”).Exceptasorderedbyacourtofcompetentjurisdictionoras

requiredbylaw,theholder(asdefinedbelow)ofanyNote,Receipt,CouponorTalonshal

bedemedtobeandmaybetreatedasitsabsoluteownerforalpurposeswhetherornotit

isoverdueandregardlesofanynoticeofownership,trustoraninterestinit,anywriting

onit(orontheCertificaterepresentingit)oritstheftorlos(orthatoftherelated

Certificate)andnopersonshalbeliableforsotreatingtheholder.

IntheseConditions,“Noteholder”meansthebearerofanyBearerNoteandtheReceipts

relatingtoitorthepersoninwhosenameaRegisteredNoteisregistered(asthecasemay

be),“holder”(inrelationtoaNote,Receipt,CouponorTalon)meansthebearerofany

BearerNote,Receipt,CouponorTalonorthepersoninwhosenameaRegisteredNoteis

registered(asthecasemaybe)andcapitalisedtermshavethemeaningsgiventothem

hereon,theabsenceofanysuchmeaningindicatingthatsuchtermisnotaplicabletothe

Notes.

2.NOEXCHANGEOFNOTESANDTRANSFERSOFREGISTEREDNOTES

(a)NoExchangeofNotes:RegisteredNotesmaynotbexchangedforBearerNotes.

BearerNotesofoneSpecifiedDenominationmaynotbexchangedforBearerNotes

ofanotherSpecifiedDenomination.BearerNotesmaynotbexchangedfor

RegisteredNotes.

(b)TransferofRegisteredNotes:SubjectoCondition2(f),oneormoreRegistered

Notesmaybetransfereduponthesurender(athespecifiedoficeoftheRegistraror

anyTransferAgent)oftheCertificaterepresentingsuchRegisteredNotestobe

transfered,togetherwiththeformoftransferendorsedonsuchCertificate,(or

anotherformoftransfersubstantialyinthesameformandcontainingthesame

representationsandcertifications(ifany),unlesotherwiseagredbytheIsuer),duly

completedandexecutedandanyotherevidenceastheRegistrarorTransferAgent

mayreasonablyrequiretoprovethetitleofthetransferorandtheauthorityofthe

individualsthathavexecutedtheformoftransfer.Inthecaseofatransferofpart

onlyofaholdingofRegisteredNotesrepresentedbyoneCertificate,anewCertificate

shalbeisuedtothetransfereinrespectofthepartransferedandafurthernew

Certificateinrespectofthebalanceoftheholdingnotransferedshalbeisuedto

thetransferor.AltransfersofNotesandentriesontheRegisterwilbemadesubject

tothedetailedregulationsconcerningtransferofNotescheduledtotheFiscalAgency

Agrement.TheregulationsmaybechangedbytheIsuer,withthepriorwriten

aprovaloftheRegistrarand,tothextentreasonablyexpectedtobeprejudicialto

theinterestsoftheNoteholders,theNoteholders.Acopyofthecurentregulations

wilbemadeavailablebytheRegistrartoanyNoteholderuponrequest.

(c)ExerciseofOptionsorPartialRedemptioninRespectofRegisteredNotes:Inthe

caseofanexerciseofanIsuer’sorNoteholders’optioninrespectof,orapartial

redemptionof,aholdingofRegisteredNotesrepresentedbyasingleCertificate,a

newCertificateshalbeisuedtotheholdertoreflecthexerciseofsuchoptionor

inrespectofthebalanceoftheholdingnotredemed.NewCertificateshalonlybe

isuedagainstsurenderofthexistingCertificatestoaRegistraroranyother

TransferAgent.InthecaseofatransferofRegisteredNotestoapersonwhois

alreadyaholderofRegisteredNotes,anewCertificaterepresentingthenlarged

holdingshalonlybeisuedagainstsurenderoftheCertificaterepresentingthe

existingholding.

(d)DeliveryofNewCertificates:EachnewCertificatetobeisuedpursuanto

Conditions2(b)or2(c)shalbeavailablefordeliverywithinfivebusinesdaysof

receiptofadulycompletedformoftransferorExerciseNotice(asdefinedin

Condition6(e)andsurenderoftheCertificateforexchange.Deliveryofthenew

Certificate(s)shalbemadeathespecifiedoficeoftheRegistraroranyother

TransferAgent(asthecasemaybe)towhomdeliveryorsurenderofsuchformof

transfer,ExerciseNoticeorCertificateshalhavebenmadeor,atheoptionofthe

holdermakingsuchdeliveryorsurenderasaforesaidandaspecifiedintheformof

transfer,ExerciseNoticeorotherwiseinwriting,bemailedbyuninsuredpostathe

riskoftheholderentitledtothenewCertificatetosuchadresasmaybeso

specified,unlesucholderequestsotherwiseandpaysinadvancetotherelevant

Agenthecostsofsuchothermethodofdeliveryand/orsuchinsuranceasitmay

specify.InthisCondition2(d),“businesday”meansaday,otherthanaSaturdayor

Sunday,onwhichbanksareopenforbusinesintheplaceofthespecifiedoficeof

theRegistrarortherelevantotherTransferAgent(asthecasemaybe).

(e)TransfersFreofCharge:TransfersofNotesandCertificatesonregistration,

transfer,exerciseofanoptionorpartialredemptionshalbefectedwithoutcharge

byoronbehalfoftheIsuer,theRegistrarortheTransferAgents,butuponpayment

ofanytaxorothergovernmentalchargesthatmaybeimposedinrelationtoit(orthe

givingofsuchindemnityand/orsecurityand/orpre-fundingastheIsuer,the

RegistrarortherelevantotherTransferAgentmayrequire)inrespectoftaxesor

charges.

(f)ClosedPeriods:NoNoteholdermayrequirethetransferofaRegisteredNotetobe

registered(i)duringtheperiodof15daysendingon(andincluding)theduedatefor

redemptionof,orpaymentofanyInstalmentAmountinrespectof,thatNote,(i)

duringtheperiodof15daysendingon(andincluding)anydateonwhichNotesmay

beredemedbytheIsueratitsoptionpursuantoCondition6,(i)afteranysuch

NotehasbenputbytherelevantNoteholderor(iv)duringtheperiodofsevendays

endingon(andincluding)anyRecordDate.

3.STATUS

TheNotesandtheReceiptsandtheCouponsrelatingtothemconstitutedirect,

unconditional,unsubordinatedandunsecuredobligationsoftheIsuerandshalataltimes

rankparipasuandwithoutanypreferenceamongthemselves.Thepaymentobligationsof

theIsuerundertheNotesandtheReceiptsandtheCouponsrelatingtothemshal,save

forsuchexceptionsasmaybeprovidedbyaplicablelegislation,ataltimesrankatleast

equalywithalotherunsecuredandunsubordinatedindebtednesandmonetaryobligations

oftheIsuer,presentandfuture.

4.COVENANTS

(a)RegulatoryUndertakings:EachoftheBankandtheIsuerundertakesto:

(i)tothextentaplicable,provideorcausetobeprovidedtotheNDRCa

notificationoftherequisiteinformationandocumentswithinthetimeframe

prescribedaftertherelevantIsueDateoftheNotesinacordancewith

AdministrativeMeasuresforExaminationandRegistrationofMedium-and

Long-termForeignDebtofEnterprises(企业中长期外债审核登记管理办法(国家

发展和改革委员会令第56号)isuedbytheNDRCandefectiveasof10

February2023andanyimplementationrules,regulations,certificates,circulars

ornoticesinconectiontherewithasisuedbytheNDRCfromtimetotime;

(i)tothextentaplicable,submitorcausetobesubmitedtothePBOCthe

requisiteinformationandocumentswithinthetimeframeprescribedin

acordancewiththeCircularofthePeople’sBankofChinaonthe

Macro-prudenceManagementofCros-borderFinancinginFulAperture(中国人

民银行关于全口径跨境融资宏观审慎管理有关事宜的通知)isuedbythePBOC

andwhichcameintoefecton12January2017andanyimplementationrulesas

isuedbythePBOCfromtimetotime;

(i)tothextenthatitisrequiredbytheNFRA(formerlyknownasChinaBanking

andInsuranceRegulatoryComision),PBOCand/orSAFE,submitorcauseto

besubmitedtotheNFRA,PBOCand/orSAFEtherequisiteinformationand

documentswithinthetimeframeprescribed;and

(iv)complywithalaplicablePRClawsandregulationsinconectionwiththe

Notes.

IntheseConditions:

“HongKong”meanstheHongKongSpecialAdministrativeRegionofthePRC;

“NDRC”meanstheNationalDevelopmentandReformComisionofthePeople’s

RepublicofChina;

“NFRA”meansNationalFinancialRegulatoryAdministrationoritsrelevantlocal

counterpart;

“PBOC”meansthePeople’sBankofChina;

“Person”meansanyindividual,company,corporation,firm,partnership,jointventure,

undertaking,asociation,organisation,trust,stateoragencyofastateorotherentity,

whetherornothavingseparatelegalpersonality;

“PRC”meansthePeople’sRepublicofChina,whichforthepurposeofthese

Conditions,shalnotincludeHongKong,theMacauSpecialAdministrativeRegionof

thePRCorTaiwan);

“RatingAgency”meansanyoneof(a)Standard&Por’sRatingServices,andits

sucesors(“S&P”),(b)Mody’sInvestorsService,Inc.,asubsidiaryofMody’s

Corporation,anditsucesors(“Mody’s”),(c)FitchRatingsanditsucesors

(“Fitch”),and(d)ifoneormoreofS&P,Mody’sorFitchshalnotmakearatingof

theNotespubliclyavailable,anyorotherinternationalyrecognisedsecuritiesrating

agencyoragencies,asthecasemaybe,selectedbytheIsuer,whichshalbe

substitutedforS&P,Mody’sorFitchoranycombinationthereof,asthecasemaybe,

ratingagency;and

“SAFE”meanstheStateAdministrationofForeignExchangeofthePRCoritslocal

counterparts.

5.INTERESTANDOTHERCALCULATIONS

(a)InterestonFixedRateNotes:EachFixedRateNotebearsinterestonitsoutstanding

nominalamountfromandincludingtheInterestComencementDateatherateper

anum(expresedasapercentage)equaltotheRateofInterest,suchinterestbeing

payableinarearoneachInterestPaymentDate.Theamountofinterestpayableshal

bedeterminedinacordancewithCondition5(h).

(b)InterestonFloatingRateNotesandIndexLinkedInterestNotes:

(i)InterestPaymentDates:EachFloatingRateNoteandIndexLinkedInterestNote

bearsinterestonitsoutstandingnominalamountfromandincludingtheInterest

ComencementDateatherateperanum(expresedasapercentage)equalto

theRateofInterest,suchinterestbeingpayableinarearoneachInterest

PaymentDate.Theamountofinterestpayableshalbedeterminedinacordance

withCondition5(h).SuchInterestPaymentDate(s)is/areithershownhereonas

SpecifiedInterestPaymentDatesor,ifnoSpecifiedInterestPaymentDate(s)

is/areshownhereon,“InterestPaymentDate”shalmeaneachdatewhichfals

thenumberofmonthsorotherperiodshownhereonastheInterestPeriodafter

theprecedingInterestPaymentDateor,inthecaseofthefirstInterestPayment

Date,aftertheInterestComencementDate.

(i)BusinesDayConvention:IfanydatereferedtointheseConditionsthatis

specifiedtobesubjectoadjustmentinacordancewithaBusinesDay

ConventionwouldotherwisefalonadaythatisnotaBusinesDay,then,ifthe

BusinesDayConventionspecifiedis(A)theFloatingRateBusinesDay

Convention,suchdateshalbepostponedtothenextdaythatisaBusinesDay

unlesitwouldtherebyfalintothenextcalendarmonth,inwhichevent(x)such

dateshalbebroughtforwardtotheimediatelyprecedingBusinesDayand(y)

eachsubsequentsuchdateshalbethelastBusinesDayofthemonthinwhich

suchdatewouldhavefalenhaditnotbensubjectoadjustment,(B)the

FolowingBusinesDayConvention,suchdateshalbepostponedtothenext

daythatisaBusinesDay,(C)theModifiedFolowingBusinesDay

Convention,suchdateshalbepostponedtothenextdaythatisaBusinesDay

unlesitwouldtherebyfalintothenextcalendarmonth,inwhicheventsuch

dateshalbebroughtforwardtotheimediatelyprecedingBusinesDayor(D)

thePrecedingBusinesDayConvention,suchdateshalbebroughtforwardto

theimediatelyprecedingBusinesDay.

(i)RateofInterestforFloatingRateNotes:TheRateofInterestinrespectof

FloatingRateNotesforeachInterestAcrualPeriodshalbedeterminedbythe

CalculationAgentinthemanerspecifiedhereonandtheprovisionsbelow

relatingtoeitherISDADeterminationorScrenRateDeterminationshalaply,

dependinguponwhichispecifiedhereon.

(A)ISDADeterminationforFloatingRateNotes

WhereISDADeterminationispecifiedhereonasthemanerinwhichthe

RateofInterestistobedetermined,theRateofInterestforeachInterest

AcrualPeriodshalbedeterminedbytheCalculationAgentasaratequal

totherelevantISDARateplusorminus(asindicatedhereon)theMargin,if

any.Forthepurposesofthisub-paragraph(A),“ISDARate”foran

InterestAcrualPeriodmeansaratequaltotheFloatingRatethatwould

bedeterminedbytheCalculationAgentunderaSwapTransactionunderthe

termsofanagrementincorporatingtheISDADefinitionsandunderwhich:

(1)theFloatingRateOptionisaspecifiedhereon;

(2)theDesignatedMaturityisaperiodspecifiedhereon;and

(3)therelevantResetDateisthefirstdayofthatInterestAcrualPeriod

unlesotherwisespecifiedhereon.

Forthepurposesofthisub-paragraph(A),“FloatingRate”,“Calculation

Agent”,“FloatingRateOption”,“DesignatedMaturity”,“ResetDate”

and“SwapTransaction”havethemeaningsgiventothosetermsinthe

ISDADefinitions.

(B)ScrenRateDeterminationforFloatingRateNotes(otherthanNotes

wheretheReferenceRateispecifiedasSOFRBenchmark)

(1)WhereScrenRateDeterminationispecifiedhereonasthemanerin

whichtheRateofInterestistobedeterminedwheretheReference

RateisnotSOFRBenchmark,theRateofInterestforeachInterest

AcrualPeriodwil,subjectasprovidedbelow,beither:

(I)theoferedquotation;or

(I)thearithmeticmeanoftheoferedquotations,

(expresedasapercentagerateperanum)fortheReferenceRate

whichapearsorapear,asthecasemaybe,ontheRelevantScren

Pageasateither11.00a.m.(BruselstimeinthecaseofEURIBORor

HongKongtimeinthecaseofHIBOR)or,inthecaseofCNH

HIBOR,11.15a.m.(HongKongtime)orif,atoraroundthatimeitis

notifiedthathefixingwilbepublishedat2.30p.m.(HongKong

time),thenasof2.30p.m.(HongKongtime),ontheInterest

DeterminationDateinquestionasdeterminedbytheCalculation

Agent.Ifiveormoreofsuchoferedquotationsareavailableonthe

RelevantScrenPage,thehighest(or,ifthereismorethanonesuch

highestquotation,oneonlyofsuchquotations)andthelowest(or,if

thereismorethanonesuchlowestquotation,oneonlyofsuch

quotations)shalbedisregardedbytheCalculationAgentforthe

purposeofdeterminingthearithmeticmeanofsuchoferedquotations.

IftheReferenceRatefromtimetotimeinrespectofFloatingRate

NotesispecifiedhereonasbeingotherthanEURIBOR,HIBORor

CNHIBOR,theRateofInterestinrespectofsuchNoteswilbe

determinedasprovidedhereon;

(2)IftheRelevantScrenPageisnotavailableorifsub-paragraph

(B)(1)(I)apliesandnosuchoferedquotationapearsontheRelevant

ScrenPageorifsub-paragraph(B)(1)(I)aboveapliesandfewer

thanthresuchoferedquotationsapearontheRelevantScrenPage

ineachcaseasathetimespecifiedabove,subjectasprovidedbelow,

theCalculationAgentshalrequest,iftheReferenceRateis

EURIBOR,theprincipalEuro-zoneoficeofeachoftheReference

Banksor,iftheReferenceRateisHIBORorCNHIBOR,the

principalHongKongoficeofeachoftheReferenceBanks,toprovide

theCalculationAgentwithitsoferedquotation(expresedasa

percentagerateperanum)fortheReferenceRateand,ifthe

ReferenceRateisEURIBOR,ataproximately11.00a.m.(Brusels

time)or,iftheReferenceRateisHIBOR,ataproximately11.00a.m.

(HongKongtime)or,inthecaseofCNHIBOR,ataproximately

11.15a.m.(HongKongtime)ontheInterestDeterminationDatein

question.IftwormoreoftheReferenceBanksprovidethe

CalculationAgentwithsuchoferedquotations,theRateofInterestfor

suchInterestAcrualPeriodshalbethearithmeticmeanofsuch

oferedquotationsasdeterminedbytheCalculationAgent;and

(3)Ifparagraph(B)(2)aboveapliesandtheCalculationAgentdetermines

thatfewerthantwoReferenceBanksareprovidingoferedquotations,

subjectasprovidedbelow,theRateofInterestshalbethearithmetic

meanoftheratesperanum(expresedasapercentage)as

comunicatedto(andatherequestof)theCalculationAgentbythe

ReferenceBanksoranytwormoreofthem,atwhichsuchbanks

wereofered,iftheReferenceRateisEURIBOR,ataproximately

11.00a.m.(Bruselstime)or,iftheReferenceRateisHIBOR,at

aproximately11.00a.m.(HongKongtime)or,inthecaseofCNH

HIBOR,ataproximately11.15a.m.(HongKongtime)ontherelevant

InterestDeterminationDate,depositsintheSpecifiedCurencyfora

periodequaltothatwhichwouldhavebenusedfortheReference

Ratebyleadingbanksin,iftheReferenceRateisEURIBOR,the

Euro-zoneinter-bankmarketor,iftheReferenceRateisHIBORor

CNHIBOR,theHongKonginter-bankmarket,asthecasemaybe,

or,ifewerthantwoftheReferenceBanksprovidetheCalculation

Agentwithsuchoferedrates,theoferedratefordepositsinthe

SpecifiedCurencyforaperiodequaltothatwhichwouldhaveben

usedfortheReferenceRate,orthearithmeticmeanoftheoferedrates

fordepositsintheSpecifiedCurencyforaperiodequaltothatwhich

wouldhavebenusedfortheReferenceRate,atwhich,ifthe

ReferenceRateisEURIBOR,ataproximately11.00a.m.(Brusels

time)or,iftheReferenceRateisHIBOR,ataproximately11.00a.m.

(HongKongtime)or,inthecaseofCNHIBOR,ataproximately

11.15a.m.(HongKongtime)ontherelevantInterestDetermination

Date,anyoneormorebanks(whichbankorbanksisorareinthe

opinionoftheIsuersuitableforsuchpurpose)informstheCalculation

Agentitisquotingtoleadingbanksin,iftheReferenceRateis

EURIBOR,theEuro-zoneinter-bankmarketor,iftheReferenceRate

isHIBORorCNHIBOR,theHongKonginter-bankmarket,asthe

casemaybe,providedthat,iftheRateofInterestcanotbe

determinedinacordancewiththeforegoingprovisionsofthis

paragraph,theRateofInterestshalbedeterminedasathelast

precedingInterestDeterminationDate(thoughsubstituting,wherea

diferentMarginorMaximumorMinimumRateofInterestistobe

apliedtotherelevantInterestAcrualPeriodfromthatwhichaplied

tothelastprecedingInterestAcrualPeriod,theMarginorMaximum

orMinimumRateofInterestrelatingtotherelevantInterestAcrual

Period,inplaceoftheMarginorMaximumorMinimumRateof

InterestrelatingtothatlastprecedingInterestAcrualPeriod).

(C)ScrenRateDeterminationforFloatingRateNoteswheretheReference

RateispecifiedasbeingSOFRBenchmark

WhereScrenRateDeterminationispecifiedhereonasthemanerin

whichtheRateofInterestistobedeterminedwheretheReferenceRateis

SOFRBenchmark,theRateofInterestforeachInterestAcrualPeriodwil,

subjectasprovidedbelow,bequaltotherelevantSOFRBenchmarkplus

orminustheMargin(ifany)inacordancewithCondition5(g),alas

determinedbytheCalculationAgentontherelevantInterestDetermination

Date.

The“SOFRBenchmark”wilbedeterminedbasedonSimpleSOFR

Average,CompoundedDailySOFRorCompoundedSOFRIndex,asfolows

(subjectineachcasetoCondition5(b)(v)asfurtherspecifiedhereon):

(x)IfSimpleSOFRAverage(“SimpleSOFRAverage”)ispecified

hereonasthemanerinwhichtheSOFRBenchmarkwilbe

determined,theSOFRBenchmarkforeachInterestAcrualPeriod

shalbethearithmeticmeanoftheSOFRreferenceratesforeachday

duringtheperiod,ascalculatedbytheCalculationAgent,andwhere,if

aplicableandaspecifiedhereon,theSOFRreferencerateonthe

SOFRateCut-OfDateshalbeusedforthedaysintheperiodfrom

(andincluding)theSOFRateCut-OfDateto(butexcluding)the

InterestPeriodDate.

(y)IfCompoundedDailySOFR(“CompoundedDailySOFR”)is

specifiedhereonasthemanerinwhichtheSOFRBenchmarkwilbe

determined,theSOFRBenchmarkforeachInterestAcrualPeriod

shalbequaltothecompoundedaverageofdailySOFRreference

ratesforeachdayduringtherelevantInterestAcrualPeriod(where

SOFRLag,SOFRPaymentDelayorSOFRLockoutispecifiedas

aplicablehereontodetermineCompoundedDailySOFR)ortheSOFR

ObservationPeriod(whereSOFRObservationShiftispecifiedas

aplicablehereontodetermineCompoundedDailySOFR).

CompoundedDailySOFRshalbecalculatedbytheCalculationAgentin

acordancewithoneoftheformulasreferencedbelowdependingupon

whichispecifiedasaplicablehereon:

(1)SOFRLag:

− 1

withtheresultingpercentagebeingrounded,ifnecesary,tothenearestone

hundred-thousandthofapercentagepoint,with0.000005percent.being

roundedupwards(e.g.,9.876541percent.(or0.09876541)beingrounded

downto9.87654percent.(or0.0987654)and9.876545percent.(or

0.09876545)beingroundedupto9.87655percent.(or0.0987655)and

where:

“SOFRi–xUSBD”foranyU.S.GovernmentSecuritiesBusinesDay(i)in

therelevantInterestAcrualPeriod,isequaltotheSOFRreferenceratefor

theU.S.GovernmentSecuritiesBusinesDayfalingthenumberof

LokbackDayspriortothatU.S.GovernmentSecuritiesBusinesDay(i);

“LokbackDays”meansuchnumberofU.S.GovernmentSecurities

BusinesDaysaspecifiedhereon;

“d”meansthenumberofcalendardaysintherelevantInterestAcrual

Period;

“do”meansthenumberofU.S.GovernmentSecuritiesBusinesDaysinthe

relevantInterestAcrualPeriod;

“i”meansaseriesofwholenumbersascendingfromonetodo,representing

eachrelevantU.S.GovernmentSecuritiesBusinesDayfrom(and

including)thefirstU.S.GovernmentSecuritiesBusinesDayintherelevant

InterestAcrualPeriod(eacha“U.S.GovernmentSecuritiesBusines

Day(i)”);and

“ni”,foranyU.S.GovernmentSecuritiesBusinesDay(i),meansthe

numberofcalendardaysfrom(andincluding)suchU.S.Government

SecuritiesBusinesDay(i)upto(butexcluding)thefolowingU.S.

GovernmentSecuritiesBusinesDay.

(2)SOFRObservationShift:

− 1 ×

withtheresultingpercentagebeingrounded,ifnecesary,tothenearestone

hundred-thousandthofapercentagepoint,with0.000005percent.being

roundedupwards(e.g.,9.876541percent.(or0.09876541)beingrounded

downto9.87654percent.(or0.0987654)and9.876545percent.(or

0.09876545)beingroundedupto9.87655percent.(or0.0987655)and

where:

“SOFRi”foranyU.S.GovernmentSecuritiesBusinesDay(i)inthe

relevantSOFRObservationPeriod,isequaltotheSOFRreferenceratefor

thatU.S.GovernmentSecuritiesBusinesDay(i);

“SOFRObservationPeriod”means,inrespectofanInterestAcrual

Period,theperiodfrom(andincluding)thedatefalingthenumberofSOFR

ObservationShiftDayspriortothefirstdayofsuchInterestAcrualPeriod

to(butexcluding)thedatefalingthenumberofSOFRObservationShift

DayspriortotheInterestPeriodDateforsuchInterestAcrualPeriod;

“SOFRObservationShiftDays”meansthenumberofU.S.Government

SecuritiesBusinesDaysaspecifiedhereon;

“d”meansthenumberofcalendardaysintherelevantSOFRObservation

Period;

“do”meansthenumberofU.S.GovernmentSecuritiesBusinesDaysinthe

relevantSOFRObservationPeriod;

“i”meansaseriesofwholenumbersascendingfromonetodo,representing

eachU.S.GovernmentSecuritiesBusinesDayfrom(andincluding)the

firstU.S.GovernmentSecuritiesBusinesDayintherelevantSOFR

ObservationPeriod(eacha“U.S.GovernmentSecuritiesBusines

Day(i)”);and

“ni”,foranyU.S.GovernmentSecuritiesBusinesDay(i),meansthe

numberofcalendardaysfrom(andincluding)suchU.S.Government

SecuritiesBusinesDay(i)upto(butexcluding)thefolowingU.S.

GovernmentSecuritiesBusinesDay.

(3)SOFRPaymentDelay:

− 1 ×

withtheresultingpercentagebeingrounded,ifnecesary,tothenearestone

hundred-thousandthofapercentagepoint,with0.000005percent.being

roundedupwards(e.g.,9.876541percent.(or0.09876541)beingrounded

downto9.87654percent.(or0.0987654)and9.876545percent.(or

0.09876545)beingroundedupto9.87655percent.(or0.0987655)and

where:

“SOFRi”foranyU.S.GovernmentSecuritiesBusinesDay(i)inthe

relevantInterestAcrualPeriod,isequaltotheSOFRreferencerateforthat

U.S.GovernmentSecuritiesBusinesDay(i);

“InterestPaymentDate”shalbethenumberofInterestPaymentDelay

DaysfolowingeachInterestPeriodDate;providedthatheInterest

PaymentDatewithrespectothefinalInterestAcrualPeriodwilbethe

MaturityDateor,iftheIsuerelectstoredemtheNotespriortothe

MaturityDate,therelevantOptionalRedemptionDate;

“InterestPaymentDelayDays”meansthenumberofBusinesDaysas

specifiedhereon;

“d”meansthenumberofcalendardaysintherelevantInterestAcrual

Period;

“do”meansthenumberofU.S.GovernmentSecuritiesBusinesDaysinthe

relevantInterestAcrualPeriod;

“i”meansaseriesofwholenumbersascendingfromonetodo,representing

eachrelevantU.S.GovernmentSecuritiesBusinesDayfrom(and

including)thefirstU.S.GovernmentSecuritiesBusinesDayintherelevant

InterestAcrualPeriod(eacha“U.S.GovernmentSecuritiesBusines

Day(i)”);and

“ni”,foranyU.S.GovernmentSecuritiesBusinesDay(i),meansthe

numberofcalendardaysfrom(andincluding)suchU.S.Government

SecuritiesBusinesDay(i)upto(butexcluding)thefolowingU.S.

GovernmentSecuritiesBusinesDay.

ForthepurposesofcalculatingCompoundedDailySOFRwithrespecto

thefinalInterestAcrualPeriodwhereSOFRPaymentDelayispecified

hereon,theSOFRreferencerateforeachU.S.GovernmentSecurities

BusinesDayintheperiodfrom(andincluding)theSOFRateCut-Of

Dateto(butexcluding)theMaturityDateortherelevantOptional

RedemptionDate,asaplicable,shalbetheSOFRreferencerateinrespect

ofsuchSOFRateCut-OfDate.

(4)SOFRLockout:

− 1 ×

withtheresultingpercentagebeingrounded,ifnecesary,tothenearestone

hundred-thousandthofapercentagepoint,with0.000005percent.being

roundedupwards(e.g.,9.876541percent.(or0.09876541)beingrounded

downto9.87654percent.(or0.0987654)and9.876545percent.(or

0.09876545)beingroundedupto9.87655percent.(or0.0987655)and

where:

“SOFRi”foranyU.S.GovernmentSecuritiesBusinesDay(i)inthe

relevantInterestAcrualPeriod,isequaltotheSOFRreferencerateforthat

U.S.GovernmentSecuritiesBusinesDay(i),excepthatheSOFRforany

U.S.GovernmentSecuritiesBusinesDay(i)inrespectoftheperiodfrom

(andincluding)theSOFRateCut-OfDateto(butexcluding)theInterest

PeriodDateforsuchInterestAcrualPeriodshalbetheSOFRreference

rateinrespectofsuchSOFRateCut-OfDate;

“d”meansthenumberofcalendardaysintherelevantInterestAcrual

Period;

“do”meansthenumberofU.S.GovernmentSecuritiesBusinesDaysinthe

relevantInterestAcrualPeriod;

“i”meansaseriesofwholenumbersascendingfromonetodo,representing

eachrelevantU.S.GovernmentSecuritiesBusinesDayfrom(and

including)thefirstU.S.GovernmentSecuritiesBusinesDayintherelevant

InterestAcrualPeriod(eacha“U.S.GovernmentSecuritiesBusines

Day(i)”);and

“ni”,foranyU.S.GovernmentSecuritiesBusinesDay(i),meansthe

numberofcalendardaysfrom(andincluding)suchU.S.Government

SecuritiesBusinesDay(i)upto(butexcluding)thefolowingU.S.

GovernmentSecuritiesBusinesDay.

Thefolowingdefinedtermshalhavethemeaningsetoutbelowfor

purposeofthisCondition5(b)(i)(C)(x)andCondition5(b)(i)(C)(y):

“BlombergScrenSOFRATEPage”meanstheBlombergscren

designated“SOFRATE”oranysucesorpageorservice;

“ReutersPageUSDSOFR=”meanstheReuterspagedesignated

“USDSOFR=“oranysucesorpageorservice;

“SOFR”means,inrespectofaU.S.GovernmentSecuritiesBusinesDay,

thereferenceratedeterminedbytheCalculationAgentinacordancewith

thefolowingprovision:

(i)theSecuredOvernightFinancingRatepublishedatheSOFR

DeterminationTimeasuchreferencerateisreportedonthe

BlombergScrenSOFRATEPage;theSecuredOvernightFinancing

RatepublishedatheSOFRDeterminationTimeasuchreferencerate

isreportedontheReutersPageUSDSOFR=;ortheSecuredOvernight

FinancingRatepublishedatheSOFRDeterminationTimeonthe

SOFRAdministrator’sWebsite;

(i)ifthereferenceratespecifiedin(i)abovedoesnotapearandaSOFR

BenchmarkTransitionEventanditsrelatedSOFRBenchmark

ReplacementDatehavenotocured,theSOFRreferencerateshalbe

thereferenceratepublishedontheSOFRAdministrator’sWebsitefor

thefirstprecedingU.S.GovernmentSecuritiesBusinesDayforwhich

SOFRwaspublishedontheSOFRAdministrator’sWebsite;or

(i)ifthereferenceratespecifiedin(i)abovedoesnotapearandaSOFR

BenchmarkTransitionEventanditsrelatedSOFRBenchmark

ReplacementDatehaveocured,theprovisionsetforthinCondition

5(b)(v)shalaplyaspecifiedhereon;

“SOFRateCut-OfDate”meansthedatethatisanumberofU.S.

GovernmentSecuritiesBusinesDayspriortothendofeachInterest

AcrualPeriod,theMaturityDateortherelevantOptionalRedemption

Date,asaplicable,aspecifiedhereon;and

“SOFRDeterminationTime”meansaproximately3:00p.m.(NewYork

Citytime)ontheimediatelyfolowingtherelevantU.S.Government

SecuritiesBusinesDay.

(z)IfCompoundedSOFRIndex(“CompoundedSOFRIndex”)is

specifiedasaplicablehereon,theSOFRBenchmarkforeachInterest

AcrualPeriodshalbequaltothecompoundedaverageofdaily

SOFRreferenceratesforeachdayduringtherelevantSOFR

ObservationPeriodascalculatedbytheCalculationAgentasfolows:

withtheresultingpercentagebeingrounded,ifnecesary,tothenearestone

hundred-thousandthofapercentagepoint,with0.000005percent.being

roundedupwards(e.g.,9.876541percent.(or0.09876541)beingrounded

downto9.87654percent.(or0.0987654)and9.876545percent.(or

0.09876545)beingroundedupto9.87655percent.(or0.0987655)and

where:

“SOFRIndex”means,inrespectofaU.S.GovernmentSecuritiesBusines

Day,theSOFRIndexvalueaspublishedontheSOFRAdministrator’s

WebsiteatheSOFRIndexDeterminationTimeonsuchU.S.Government

SecuritiesBusinesDay,providedthat:

(a)ifthevaluespecifiedabovedoesnotapearandaSOFRBenchmark

TransitionEventanditsrelatedSOFRBenchmarkReplacementDate

havenotocured,the“SOFRIndex”shalbecalculatedonany

InterestDeterminationDatewithrespectoanInterestAcrualPeriod,

inacordancewiththeCompoundedDailySOFRformuladescribed

aboveinCondition5(b)(i)(C)(y)(2)“SOFRObservationShift”,and

theterm“SOFRObservationShiftDays”shalmeantwoU.S.

GovernmentSecuritiesBusinesDays;or

(b)ifthevaluespecifiedabovedoesnotapearandaSOFRBenchmark

TransitionEventanditsrelatedSOFRBenchmarkReplacementDate

haveocured,theprovisionsetforthinCondition5(b)(v)shalaply

aspecifiedhereon;

“SOFRIndexEnd”means,inrespectofanInterestAcrualPeriod,the

SOFRIndexvalueonthedatethatisthenumberofU.S.Government

SecuritiesBusinesDayspecifiedhereonpriortotheInterestPeriodDate

forsuchInterestAcrualPeriod(orinthefinalInterestAcrualPeriod,the

MaturityDate);

“SOFRIndexStart”means,inrespectofanInterestAcrualPeriod,the

SOFRIndexvalueonthedatethatisthenumberofU.S.Government

SecuritiesBusinesDayspecifiedhereonpriortothefirstdayofsuch

InterestAcrualPeriod;

“SOFRIndexDeterminationTime”means,inrespectofaU.S.

GovernmentSecuritiesBusinesDay,aproximately3:00p.m.(NewYork

Citytime)onsuchU.S.GovernmentSecuritiesBusinesDay;

“SOFRObservationPeriod”means,inrespectofanInterestAcrual

Period,theperiodfrom(andincluding)thedatefalingthenumberofSOFR

ObservationShiftDayspriortothefirstdayofsuchInterestAcrualPeriod

to(butexcluding)thedatefalingthenumberofSOFRObservationShift

DayspriortotheInterestPeriodDateforsuchInterestAcrualPeriod;

“SOFRObservationShiftDays”meansthenumberofU.S.Government

SecuritiesBusinesDaysaspecifiedhereon;and

“dc”meansthenumberofcalendardaysintheaplicableSOFR

ObservationPeriod.

IftheNotesbecomedueandpayableinacordancewithCondition10,the

finalInterestDeterminationDateshal,notwithstandinganyInterest

DeterminationDatespecifiedintherelevantPricingSuplement,bedemed

tobethedateonwhichtheNotesbecamedueandpayableandtheRateof

InterestontheNoteshal,forsolongastheNotesremainoutstanding,be

thatdeterminedonsuchdate.

Thefolowingdefinedtermshalhavethemeaningsetoutbelowfor

purposeofthisCondition5(b)(i)(C):

“SOFRAdministrator’sWebsite”meansthewebsiteoftheFederal

ReserveBankofNewYork,oranysucesorsource;

“SOFRBenchmarkReplacementDate”meansthedateofocurenceofa

BenchmarkEventwithrespectothethen-curentSOFRBenchmark;

“SOFRBenchmarkTransitionEvent”meanstheocurenceofa

BenchmarkEventwithrespectothethen-curentSOFRBenchmark;and

“U.S.GovernmentSecuritiesBusinesDay”meansanydayexceptfora

Saturday,aSundayoradayonwhichtheSecuritiesIndustryandFinancial

MarketsAsociationrecomendsthathefixedincomedepartmentsofits

membersbeclosedforthentiredayforpurposesoftradinginU.S.

governmentsecurities.

(iv)BenchmarkDiscontinuation(General)

WherethisCondition5(b)(iv)ispecifiedasaplicablehereon,iftheIsuer

determinesthataBenchmarkEventhasocured(orwilocuronorpriortothe

InterestDeterminationDaterelatingtothenextsucedingInterestAcrual

Period),whentheRateofInterest(oranyrelevantcomponentparthereof)

remainstobedeterminedbyreferencetotheReferenceRate,thenthefolowing

provisionshalaply:

(A)TheIsuershaluseitsreasonablendeavourstoapointanIndependent

Adviserforthedetermination(withtheIsuer’sagrement)ofaSucesor

Rateor,alternatively,iftheIndependentAdviserandtheIsueragrethat

thereisnoSucesorRate,analternativerate(the“Alternative

BenchmarkRate”)and,ineithercase,analternativescrenpageorsource

(the“AlternativeRelevantScrenPage”)andtheaplicableAdjustment

SpreadandanyBenchmarkAmendments(inacordancewithCondition

5(b)(iv)(F)albynolaterthanthre(3)BusinesDayspriortotherelevant

InterestDeterminationDaterelatingtothenextsucedingInterestAcrual

Period(the“InterestDeterminationCut-ofDate”)forpurposesof

determiningtheRateofInterestaplicabletotheNotesforalfuture

InterestAcrualPeriods(subjectothesubsequentoperationofthis

Condition5(b)(iv).

Intheabsenceofbadfaithorfraud,neithertheIsuernoranyIndependent

AdvisershalhaveanyliabilitywhatsoevertotheFiscalAgent,thePaying

Agents,theNoteholders,theReceiptholdersortheCouponholdersforany

determinationmadebyitpursuantothisCondition5(b)(iv);

(B)TheAlternativeBenchmarkRateshalbesuchalternativebenchmarkor

screnrateastheIndependentAdviserandtheIsueractingingodfaith

agrehasreplacedtheReferenceRateincustomarymarketusageforthe

purposesofdeterminingfloatingratesofinterestinrespectofeurobonds

denominatedintheSpecifiedCurency,or,iftheIndependentAdviserand

theIsueragrethathereisnosuchrate,suchotherateasthe

IndependentAdviserandtheIsueractingingodfaithagreismost

comparabletotheReferenceRate,andtheAlternativeRelevantScrenPage

shalbesuchpageofaninformationserviceasdisplaystheAlternative

BenchmarkRate;

(C)IftheIsuerisunabletoapointanIndependentAdviser,orifthe

IndependentAdviserandtheIsuercanotagreupon,orcanotselecta

SucesorRateoranAlternativeBenchmarkRateandanAlternative

RelevantScrenPageonorpriortotheInterestDeterminationCut-ofDate

inacordancewithsub-paragraph(A)and(C)above,thentheIsuer(acting

ingodfaithandinacomercialyreasonablemaner)maydetermine

which(ifany)alternativebenchmarkorscrenratehasreplacedthe

ReferenceRateincustomarymarketusageforpurposesofdetermining

floatingratesofinterestinrespectofeurobondsdenominatedinthe

SpecifiedCurency,or,ifitdeterminesonorpriortotheInterest

DeterminationCut-ofDatethathereisnosuchalternativebenchmarkor

screnrate,whichrate(ifany)ismostcomparabletotheReferenceRate,

andtheAlternativeBenchmarkRateshalbetheratesodeterminedbythe

IsuerandtheAlternativeRelevantScrenPageshalbesuchpageofan

informationserviceasdisplaystheAlternativeBenchmarkRate;provided,

however,thatifthisub-paragraph(C)apliesandtheIsuerisunableor

unwilingtodetermineanAlternativeBenchmarkRateandAlternative

RelevantScrenPagepriortotheInterestDeterminationCut-ofDate,the

RateofInterestaplicabletothenextsucedingInterestAcrualPeriod

shalbequaltotheRateofInterestlastdeterminedinrelationtotheNotes

inrespectoftheimediatelyprecedingInterestAcrualPeriod.Iftherehas

notbenafirstInterestPaymentDate,theRateofInterestshalbe

determinedusingtheReferenceRateaplicabletothefirstInterestAcrual

Period.WhereadiferentMarginorMaximumorMinimumRateofInterest

istobeapliedtotherelevantInterestAcrualPeriodfromthatwhich

apliedtothelastprecedingInterestAcrualPeriod,theMarginor

MaximumorMinimumRateofInterestrelatingtotherelevantInterest

AcrualPeriodshalbesubstitutedinplaceoftheMarginorMaximumor

MinimumRateofInterestrelatingtothatlastprecedingInterestAcrual

Period.Fortheavoidanceofdoubt,thisparagraphshalaplytothe

relevantnextsucedingInterestAcrualPeriodandanysubsequentInterest

AcrualPeriodsaresubjectothesubsequentoperationof,andto

adjustmentasprovidedin,thisCondition5(b)(iv);

(D)IfaSucesorRateoranAlternativeBenchmarkRateandanAlternative

RelevantScrenPagearedeterminedinacordancewiththepreceding

provisions,suchSucesorRateorAlternativeBenchmarkRateand

AlternativeRelevantScrenPage(ineachcaseasadjustedbytheaplicable

AdjustmentSpreadeterminedasprovidedinsub-paragraph(E)below)

shalsubsequentlybeusedinplaceoftheReferenceRatetodeterminethe

RateofInterest(ortherelevantcomponentpart(s)thereof)foralrelevant

futurepaymentsofinterestontheNotes(subjectothesubsequent

operationofthisCondition5(b)(iv);

(E)IfaSucesorRateoranAlternativeBenchmarkRateandanAlternative

RelevantScrenPagearedeterminedinacordancewiththepreceding

provisions,theIsuer,folowingconsultationwiththeIndependentAdviser

(ifapointed)andactingingodfaith,shaldetermine(i)theAdjustment

SpreadtobeapliedtotheSucesorRateorAlternativeBenchmarkRate

(asaplicable)and(i)thequantumof,oraformulaormethodologyfor

determining,suchAdjustmentSpread,andsuchAdjustmentSpreadshalbe

apliedtotheSucesorRateorAlternativeBenchmarkRateforeach

subsequentdeterminationoftheRateofInterestandInterestAmount(s)(or

acomponentparthereof)byreferencetosuchSucesorRateor

AlternativeBenchmarkRate;

(F)IfaSucesorRateoranAlternativeBenchmarkRateand(ineithercase)

theaplicableAdjustmentSpreadaredeterminedinacordancewiththe

aboveprovisions,theIndependentAdviser(withtheIsuer’sagrement)or,

failingwhich,theIsuer,mayalsospecifychangestotheDayCount

Fraction,RelevantScrenPage,BusinesDayConvention,BusinesDays,

InterestDeterminationDateand/orthedefinitionofReferenceRate

aplicabletotheNotes,andthemethodfordeterminingthefalbackratein

relationtotheNotes,asarenecesarytoensuretheproperoperation

(havingregardtoprevailingmarketpractice,ifany)oftheSucesorRate,

theAlternativeBenchmarkRateand(ineithercase)theaplicable

AdjustmentSpread(suchamendments,the“BenchmarkAmendments”),

whichchangeshal(subjectothesubsequentoperationofthisCondition

5(b)(iv)aplytotheNotesforalfutureInterestAcrualPeriods,without

anyrequirementfortheconsentoraprovalofNoteholders,andvarythese

Conditionsand/ortheFiscalAgencyAgrementogivefectosuch

BenchmarkAmendmentswithefectfromthedatespecifiedinsuchnotice.

InconectionwithanysuchvariationinacordancewiththisCondition

5(b)(iv)(F),theIsuershalcomplywiththerulesofanystockexchangeon

whichtheNotesareforthetimebeinglistedoradmitedtotrading;

(G)TheIsuershalpromptlyfolowingthedeterminationofanySucesor

RateorAlternativeBenchmarkRateandAlternativeRelevantScrenPage

andAdjustmentSpreadgivenoticethereofandofanyBenchmark

Amendmentspursuantosub-paragraph(F)abovetotheCalculationAgent,

theFiscalAgentandtheNoteholdersinacordancewithCondition14

(Notices);and

(H)NolaterthanotifyingtheFiscalAgentofthesame,theIsuershaldeliver

totheFiscalAgentacertificatesignedbyanauthorisedsignatoryofthe

Isuer:

(i)confirming(x)thataBenchmarkEventhasocured,(y)therelevant

SucesorRate,or,asthecasemaybe,therelevantAlternative

BenchmarkRateand,(z)therelevantAdjustmentSpreadand/orthe

specifictermsofanyrelevantBenchmarkAmendments,ineachcaseas

determinedinacordancewiththeprovisionsofthisCondition

5(b)(iv);and

(i)certifyingthatherelevantBenchmarkAmendmentsarenecesaryto

ensuretheproperoperation(havingregardtoprevailingmarket

practice,ifany)ofsuchrelevantSucesorRate,Alternative

BenchmarkRateand(ineithercase)theaplicableAdjustmentSpread.

TheFiscalAgentshaldisplaysuchcertificateatitsofices,forinspection

bytheNoteholdersatalreasonabletimesduringnormalbusineshours.

TheSucesorRateorAlternativeBenchmarkRateand(ineithercase)the

aplicableAdjustmentSpreadandtheBenchmarkAmendments(ifany)

specifiedinsuchcertificatewil(intheabsenceofmanifesterororbad

faithinthedeterminationthereof)bebindingontheIsuer,theFiscal

Agent,theCalculationAgent,theotherPayingAgents,theNoteholders,the

ReceiptholdersandtheCouponholders.

(v)BenchmarkDiscontinuation(SOFR)

ThisCondition5(b)(v)shalonlyaplytoU.S.dolar-denominatedNoteswhere

sospecifiedhereon.

ThefolowingprovisionshalaplyifBenchmarkDiscontinuation(SOFR)is

specifiedasaplicablehereon:

(i)BenchmarkReplacement

IftheIsueroritsdesignedeterminesonorpriortotherelevantReference

TimethataBenchmarkEventanditsrelatedBenchmarkReplacementDate

haveocuredwithrespectothethen-curentBenchmark,theBenchmark

Replacementwilreplacethethen-curentBenchmarkforalpurposes

relatingtotheNotesinrespectofaldeterminationsonsuchdateandforal

determinationsonalsubsequentdates.

(i)BenchmarkReplacementConformingChanges

InconectionwiththeimplementationofaBenchmarkReplacement,the

IsueroritsdesignewilhavetherightomakeBenchmarkReplacement

ConformingChangesfromtimetotime.Fortheavoidanceofdoubt,anyof

theAgentshal,athedirectionandexpenseoftheIsuer,efectsuch

consequentialamendmentstotheFiscalAgencyAgrementandthese

ConditionsasmayberequiredtogivefectothisCondition5(b)(v).

Noteholders’orCouponholders’consentshalnotberequiredinconection

withefectinganysuchchanges,includingthexecutionofanydocuments

oranystepstobetakenbyanyoftheAgents(ifrequired).Further,noneof

theAgentshalberesponsibleorliableforanydeterminations,decisionsor

electionsmadebytheIsueroritsdesignewithrespectoanyBenchmark

Replacementoranyotherchangesandshalbentitledtorelyconclusively

onanycertificationsprovidedtoeachoftheminthisregard.

(i)DecisionsandDeterminations

Anydetermination,decisionorelectionthatmaybemadebytheIsueror

itsdesignepursuantothisCondition5(b)(v),includinganydetermination

withrespectoatenor,rateoradjustmentoroftheocurenceor

non-ocurenceofanevent,circumstanceordateandanydecisiontotake

orefrainfromtakinganyactionoranyselection(A)wilbeconclusive

andbindingabsentmanifesteror,(B)wilbemadeinthesolediscretionof

theIsueroritsdesigne,asaplicable,and(C)notwithstandinganything

tothecontraryinthedocumentationrelatingtotheNotes,shalbecome

efectivewithoutconsentfromtheholdersoftheNotesoranyotherparty.

(iv)Thefolowingdefinedtermshalhavethemeaningsetoutbelowfor

purposeofthisCondition5(b)(v):

“Benchmark”means,initialy,therelevantSOFRBenchmarkspecified

hereon;providedthatiftheIsueroritsdesignedeterminesonorpriorto

theReferenceTimethataBenchmarkEventanditsrelatedBenchmark

ReplacementDatehaveocuredwithrespectotherelevantSOFR

Benchmark(includinganydailypublishedcomponentusedinthe

calculationthereof)orthethen-curentBenchmark,then“Benchmark”

meanstheaplicableBenchmarkReplacement;

“BenchmarkEvent”meanstheocurenceofoneormoreofthefolowing

eventswithrespectothethen-curentBenchmark(includinganydaily

publishedcomponentusedinthecalculationthereof):

(A)apublicstatementorpublicationofinformationbyoronbehalfofthe

administratoroftheBenchmark(orsuchcomponent)anouncingthat

suchadministratorhasceasedorwilceasetoprovidetheBenchmark

(orsuchcomponent),permanentlyorindefinitely,providedthat,athe

timeofsuchstatementorpublication,thereisnosucesor

administratorthatwilcontinuetoprovidetheBenchmark(orsuch

component);or

(B)apublicstatementorpublicationofinformationbytheregulatory

supervisorfortheadministratoroftheBenchmark(orsuch

component),thecentralbankforthecurencyoftheBenchmark(or

suchcomponent),aninsolvencyoficialwithjurisdictionoverthe

administratorfortheBenchmark(orsuchcomponent),aresolution

authoritywithjurisdictionovertheadministratorfortheBenchmark

(orsuchcomponent)oracourtoranentitywithsimilarinsolvencyor

resolutionauthorityovertheadministratorfortheBenchmark,which

statesthatheadministratoroftheBenchmark(orsuchcomponent)has

ceasedorwilceasetoprovidetheBenchmark(orsuchcomponent)

permanentlyorindefinitely,providedthat,athetimeofsuch

statementorpublication,thereisnosucesoradministratorthatwil

continuetoprovidetheBenchmark(orsuchcomponent);or

(C)apublicstatementorpublicationofinformationbytheregulatory

supervisorfortheadministratoroftheBenchmarkanouncingthathe

Benchmarkisnolongerepresentative;

“BenchmarkReplacement”meansthefirstalternativesetforthintheorder

belowthatcanbedeterminedbytheIsueroritsdesigneasofthe

BenchmarkReplacementDate:

(A)thesumof:

(x)thealternatereferenceratethathasbenselectedor

recomendedbytheRelevantGovernmentalBodyasthe

replacementforthethen-curentBenchmark(includinganydaily

publishedcomponentusedinthecalculationthereof);and

(y)theBenchmarkReplacementAdjustment;

(B)thesumof:

(x)theISDAFalbackRate;and

(y)theBenchmarkReplacementAdjustment;or

(C)thesumof:

(x)thealternatereferenceratethathasbenselectedbytheIsueror

itsdesigneasthereplacementforthethen-curentBenchmark

(includinganydailypublishedcomponentusedinthecalculation

thereof)givingdueconsiderationtoanyindustry-acepted

referencerateasareplacementforthethen-curentBenchmark

(includinganydailypublishedcomponentusedinthecalculation

thereof)forU.S.dolar-denominatedFloatingRateNotesatsuch

time;and

(y)theBenchmarkReplacementAdjustment;

“BenchmarkReplacementAdjustment”meansthefirstalternativeset

forthintheorderbelowthatcanbedeterminedbytheIsueroritsdesigne

asoftheBenchmarkReplacementDate:

(A)thespreadadjustment,ormethodforcalculatingordeterminingsuch

spreadadjustment,(whichmaybeapositiveornegativevalueorzero)

thathasbenselectedorecomendedbytheRelevantGovernmental

BodyfortheaplicableUnadjustedBenchmarkReplacement;

(B)iftheaplicableUnadjustedBenchmarkReplacementisequivalento

theISDAFalbackRate,theISDAFalbackAdjustment;or

(C)thespreadadjustment(whichmaybeapositiveornegativevalueor

zero)thathasbenselectedbytheIsueroritsdesignegivingdue

considerationtoanyindustry-aceptedspreadadjustment,ormethod

forcalculatingordeterminingsuchspreadadjustment,forthe

replacementofthethen-curentBenchmark(includinganydaily

publishedcomponentusedinthecalculationthereof)withthe

aplicableUnadjustedBenchmarkReplacementforU.S.

dolar-denominatedFloatingRateNotesatsuchtime;

“BenchmarkReplacementConformingChanges”means,withrespecto

anyBenchmarkReplacement,anytechnical,administrativeoroperational

changes(includingchangestothetimingandfrequencyofdeterminingrates

andmakingpaymentsofinterest,roundingofamountsortenors,andother

administrativematers)thatheIsueroritsdesignedecidesmaybe

apropriatetoreflectheadoptionofsuchBenchmarkReplacementina

manersubstantialyconsistentwithmarketpractice(or,iftheIsuerorits

designedecidesthatadoptionofanyportionofsuchmarketpracticeisnot

administrativelyfeasibleoriftheIsueroritsdesignedeterminesthatno

marketpracticeforuseoftheBenchmarkReplacementexists,insuchother

manerastheIsueroritsdesignedeterminesisreasonablynecesary);

“BenchmarkReplacementDate”meansthearliestocurofthe

folowingeventswithrespectothethen-curentBenchmark(includingany

dailypublishedcomponentusedinthecalculationthereof):

(A)inthecaseofsub-paragraph(A)or(B)ofthedefinitionof

“BenchmarkEvent”,thelaterof:

(x)thedateofthepublicstatementorpublicationofinformation

referencedtherein;and

(y)thedateonwhichtheadministratoroftheBenchmark

permanentlyorindefinitelyceasestoprovidetheBenchmark(or

suchcomponent);or

(B)inthecaseofsub-paragraph(C)ofthedefinitionof“Benchmark

Event”,thedateofthepublicstatementorpublicationofinformation

referencedtherein.

Fortheavoidanceofdoubt,iftheventgivingrisetotheBenchmark

ReplacementDateocursonthesamedayas,butearlierthan,theReference

Timeinrespectofanydetermination,theBenchmarkReplacementDatewil

bedemedtohaveocuredpriortotheReferenceTimeforsuch

determination;

“designe”meansadesigneaselectedandseparatelyapointedbythe

Isuerinwriting;

“ISDADefinitions”meansthe2006ISDADefinitionspublishedbythe

InternationalSwapsandDerivativesAsociation,Inc.oranysucesor

thereto,asamendedorsuplementedfromtimetotime,oranysucesor

definitionalbokletforinterestratederivativespublishedfromtimetotime,

includingthe2021ISDAInterestRateDerivativesDefinitions(asamended

orsuplementedfromtimetotime);

“ISDAFalbackAdjustment”meansthespreadadjustment(whichmaybe

apositiveornegativevalueorzero)thatwouldaplyforderivatives

transactionsreferencingtheISDADefinitionstobedetermineduponthe

ocurenceofanindexcesationeventwithrespectotheBenchmark;

“ISDAFalbackRate”meanstheratethatwouldaplyforderivatives

transactionsreferencingtheISDADefinitionstobefectiveuponthe

ocurenceofanindexcesationdatewithrespectotheBenchmark

(includinganydailypublishedcomponentusedinthecalculationthereof)

fortheaplicabletenorexcludingtheaplicableISDAFalbackAdjustment;

“ReferenceTime”withrespectoanydeterminationoftheBenchmark

means(A)iftheBenchmarkistheSOFRBenchmark,theSOFR

DeterminationTime(whereSimpleSOFRAverageorCompoundedDaily

SOFRispecifiedasaplicablehereon)orSOFRIndexDeterminationTime

(whereCompoundedSOFRIndexispecifiedasaplicablehereon),or(B)

iftheBenchmarkisnotheSOFRBenchmark,thetimedeterminedbythe

IsueroritsdesigneaftergivingefectotheBenchmarkReplacement

ConformingChanges;

“RelevantGovernmentalBody”meanstheFederalReserveBoardand/or

theFederalReserveBankofNewYork,oracomiteoficialyendorsed

orconvenedbytheFederalReserveBoardand/ortheFederalReserveBank

ofNewYorkoranysucesorthereto;and

“UnadjustedBenchmarkReplacement”meanstheBenchmark

ReplacementexcludingtheBenchmarkReplacementAdjustment.

(vi)RateofInterestforIndexLinkedInterestNotes:TheRateofInterestin

respectofIndexLinkedInterestNotesforeachInterestAcrualPeriodshal

bedeterminedbytheCalculationAgentinthemanerspecifiedhereonand

interestwilacruebyreferencetoanindexorformulaspecifiedhereon.

(c)ZeroCouponNotes:WhereaNotetheInterestBasisofwhichispecifiedtobeZero

CouponisrepayablepriortotheMaturityDateandisnotpaidwhendue,theamount

dueandpayablepriortotheMaturityDateshalbetheEarlyRedemptionAmountof

suchNote.AsfromtheMaturityDate,theRateofInterestforanyoverdueprincipal

ofsuchaNoteshalbearateperanum(expresedasapercentage)equaltothe

AmortisationYield(asdescribedinCondition6(b)(i).

(d)DualCurencyNotes:InthecaseofDualCurencyNotes,iftherateoramountof

interestfalstobedeterminedbyreferencetoaRateofExchangeoramethodof

calculatingRateofExchange,therateoramountofinterestpayableshalbe

determinedbytheCalculationAgentinthemanerspecifiedhereon.

(e)PartlyPaidNotes:InthecaseofPartlyPaidNotes(otherthanPartlyPaidNotes

whichareZeroCouponNotes),interestwilacrueasaforesaidonthepaid-up

nominalamountofsuchNotesandotherwiseaspecifiedhereon.

(f)AcrualofInterest:InterestshalceasetoacrueoneachNoteontheduedatefor

redemptionunles,uponduepresentation,paymentisimproperlywitheldorefused,

inwhicheventinterestshalcontinuetoacrue(bothbeforeandafterjudgment)athe

RateofInterestinthemanerprovidedinthisCondition5totheRelevantDate(as

definedinCondition8).

(g)Margin,Maximum/MinimumRatesofInterest,InstalmentAmountsand

RedemptionAmountsandRounding:

(i)IfanyMarginispecifiedhereon(either(x)generaly,or(y)inrelationtoneor

moreInterestAcrualPeriods),anadjustmentshalbemadetoalRatesof

Interest,inthecaseof(x),ortheRatesofInterestforthespecifiedInterest

AcrualPeriods,inthecaseof(y),calculatedinacordancewithCondition5(b)

abovebyading(ifapositivenumber)orsubtractingtheabsolutevalue(ifa

negativenumber)ofsuchMargin,subjectalwaystothenextparagraph.

(i)IfanyMaximumRateofInterest,MinimumRateofInterest,InstalmentAmount

orRedemptionAmountispecifiedhereon,thenanyRateofInterest,Instalment

AmountorRedemptionAmountshalbesubjectosuchmaximumorminimum,

asthecasemaybe.

(i)ForthepurposesofanycalculationsrequiredpursuantotheseConditions

(unlesotherwisespecified),(x)alpercentagesresultingfromsuchcalculations

shalberounded,ifnecesary,tothenearestonehundred-thousandthofa

percentagepoint(with0.000005ofapercentagepointbeingroundedup),(y)al

figureshalberoundedtosevensignificantfigures(providedthatiftheighth

significantfigureisa5orgreater,theseventhsignificantfigureshalberounded

up)and(z)alcurencyamountsthatfaldueandpayableshalberoundedtothe

nearestunitofsuchcurency(withalfaunitbeingroundedup),saveinthe

caseofyen,whichshalberoundedowntothenearestyen.Forthesepurposes

“unit”meansthelowestamountofsuchcurencythatisavailableaslegaltender

inthecountryofsuchcurency.

(h)Calculations:TheamountofinterestpayableperCalculationAmountinrespectof

anyNoteforanyInterestAcrualPeriodshalbequaltotheproductoftheRateof

Interest,theCalculationAmountspecifiedhereon,andtheDayCountFractionfor

suchInterestAcrualPeriod,unlesanInterestAmount(oraformulaforits

calculation)isaplicabletosuchInterestAcrualPeriod,inwhichcasetheamountof

interestpayableperCalculationAmountinrespectofsuchNoteforsuchInterest

AcrualPeriodshalequalsuchInterestAmount(orbecalculatedinacordancewith

suchformula).WhereanyInterestPeriodcomprisestwormoreInterestAcrual

Periods,theamountofinterestpayableperCalculationAmountinrespectofsuch

InterestPeriodshalbethesumoftheInterestAmountspayableinrespectofeachof

thoseInterestAcrualPeriods.Inrespectofanyotherperiodforwhichinterestis

requiredtobecalculated,theprovisionsaboveshalaplysavethatheDayCount

Fractionshalbefortheperiodforwhichinterestisrequiredtobecalculated.

InthecaseofNotesrepresentedbyaGlobalNoteorGlobalCertificate,interestshal

becalculatedinrespectofanyperiodbyaplyingtheRateofInterestothetotal

agregateoutstandingnominalamountoftheNotesrepresentedbysuchGlobalNote

orGlobalCertificate.

(i)DeterminationandPublicationofRatesofInterest,InterestAmounts,Final

RedemptionAmounts,EarlyRedemptionAmounts,OptionalRedemption

AmountsandInstalmentAmounts:TheCalculationAgentshal,asonas

practicableonsuchdateastheCalculationAgentmayberequiredtocalculateany

rateoramount,obtainanyquotationormakeanydeterminationorcalculation,

determinesuchrateandcalculatetheInterestAmountsfortherelevantInterest

AcrualPeriod,calculatetheFinalRedemptionAmount,EarlyRedemptionAmount,

OptionalRedemptionAmountorInstalmentAmount,obtainsuchquotationormake

suchdeterminationorcalculation,asthecasemaybe,andcausetheRateofInterest

andtheInterestAmountsforeachInterestAcrualPeriodandtherelevantInterest

PaymentDateand,ifrequiredtobecalculated,theFinalRedemptionAmount,Early

RedemptionAmount,OptionalRedemptionAmountoranyInstalmentAmountobe

notifiedtotheFiscalAgent,theIsuer,eachofthePayingAgents,theNoteholders,

anyotherCalculationAgentapointedinrespectoftheNotesthatistomakeafurther

calculationuponreceiptofsuchinformationand,iftheNotesarelistedonastock

exchangeandtherulesofsuchexchangeorotherelevantauthoritysorequire,such

exchangeorotherelevantauthorityasonasposibleaftertheirdeterminationbut

inoeventlaterthan(i)thecomencementoftherelevantInterestPeriod,if

determinedpriortosuchtime,inthecaseofnotificationtosuchexchangeofaRate

ofInterestandInterestAmount,or(i)inalothercases,thefourthBusinesDayafter

suchdetermination.WhereanyInterestPaymentDateorInterestPeriodDateis

subjectoadjustmentpursuantoCondition5(b)(i),theInterestAmountsandthe

InterestPaymentDatesopublishedmaysubsequentlybeamended(orapropriate

alternativearangementsmadebywayofadjustment)withoutnoticeintheventofan

extensionorshorteningoftheInterestPeriod.IftheNotesbecomedueandpayable

underCondition10,theacruedinterestandtheRateofInterestpayableinrespectof

theNoteshalneverthelescontinuetobecalculatedaspreviouslyinacordancewith

thisCondition5butnopublicationoftheRateofInterestortheInterestAmountso

calculatednedbemade.Thedeterminationofanyrateoramount,theobtainingof

eachquotationandthemakingofeachdeterminationorcalculationbytheCalculation

Agent(s)shal(intheabsenceofmanifesteror)befinalandbindinguponalparties

andtheNoteholders.

(j)Definitions:IntheseConditions,unlesthecontextotherwiserequires,thefolowing

definedtermshalhavethemeaningsetoutbelow:

“AdjustmentSpread”meanseitheraspread(whichmaybepositive,negativeor

zero)oraformulaormethodologyforcalculatingaspread,whichineachcaseisto

beapliedtotherelevantSucesorRateortherelevantAlternativeBenchmarkRate

(asaplicable),andisthespread,formulaormethodologywhich:

(i)inthecaseofaSucesorRate,isformalyrecomendedorformalyprovided

asanoptionforpartiestoadopt,inrelationtothereplacementoftheReference

RatewiththeSucesorRatebyanyRelevantNominatingBody;or

(i)inthecaseofaSucesorRateforwhichnosuchrecomendationhasben

made,oroptionprovided,orinthecaseofanAlternativeBenchmarkRate,isthe

spread,formulaormethodologywhichtheIsuer,folowingconsultationwiththe

IndependentAdviser(ifapointed)andactingingodfaith,determinestobe

apropriateasaresultofthereplacementoftheReferenceRatewiththe

SucesorRateorAlternativeBenchmarkRate(asthecasemaybe).

“BenchmarkEvent”means:

(i)theReferenceRatehasceasedtobepublishedforaperiodofatleastfive

BusinesDays;or

(i)themakingofapublicstatementbytheadministratoroftheReferenceRatethat

ithasceased,orwilcease,publishingsuchReferenceRatepermanentlyor

indefinitely(incircumstanceswherenosucesoradministratorhasben

apointedthatwilcontinuepublicationofsuchReferenceRate);or

(i)themakingofapublicstatementbythesupervisoroftheadministratorofthe

ReferenceRatethatsuchReferenceRatehasbenorwilbepermanentlyor

indefinitelydiscontinued;or

(iv)themakingofapublicstatementbythesupervisoroftheadministratorofthe

ReferenceRatethatmeansthatsuchReferenceRatewilbeprohibitedfrom

beingusedorthatitsusewilbesubjectorestrictionsoradverseconsequences,

incircumstanceswherethesameshalbeaplicabletotheNotes;or

(v)themakingofapublicstatementbythesupervisoroftheadministratorofthe

ReferenceRatethat,intheviewofsuchsupervisor,suchReferenceRateisno

longerepresentativeofitsunderlyingmarket,incircumstanceswherethesame

shalbeaplicabletotheNotes;or

(vi)ithasorwil,byaspecifiedatewithinthefolowingsixmonths,become

unlawfulfortheCalculationAgentortheIsuertocalculateanypaymentsdueto

bemadetoanyNoteholderusingtheReferenceRate(including,without

limitation,undertheBenchmarksRegulation(EU)2016/1011,ifaplicable),

providedthatinthecaseofparagraphs(i)to(v)above,theBenchmarkEventshal

ocuron:

(vi)inthecaseof(i)above,thedateofthecesationofthepublicationofthe

ReferenceRate;

(vi)inthecaseof(i)above,thediscontinuationoftheReferenceRate;

(ix)inthecaseof(iv)above,thedateonwhichtheReferenceRateisprohibited

fromuseorbecomesubjectorestrictionsoradverseconsequences(as

aplicable);or

(x)inthecaseof(v)above,thedateonwhichtheReferenceRateisdemedno

longertoberepresentative,

andnot(inanysuchcase)thedateoftherelevantpublicstatement(unlesthedateof

therelevantpublicstatementcoincideswiththerelevantdatein(vi),(vi),(ix)or(x)

above,asaplicable).

“BusinesDay”means:

(i)inthecaseofNotesdenominatedinacurencyotherthaneuroandRenminbi,a

day(otherthanaSaturdayorSunday)onwhichcomercialbanksandforeign

exchangemarketsetlepaymentsintheprincipalfinancialcentreforsuch

curency;and/or

(i)inthecaseofNotesdenominatedineuro,adayonwhichT2isoperating(a“T2

BusinesDay”);and/or

(i)inthecaseofNotesdenominatedinRenminbi,aday(otherthanaSaturday,

Sundayorpublicholiday)onwhichcomercialbanksinHongKongare

generalyopenforbusinesandsetlementofRenminbipaymentsinHongKong;

and/or

(iv)inthecaseofNotesdenominatedinacurencyand/oroneormoreBusines

Centrespecifiedhereon,aday(otherthanaSaturdayoraSunday)onwhich

comercialbanksandforeignexchangemarketsetlepaymentsinsuchcurency

intheBusinesCentre(s)or,ifnocurencyisindicated,generalyineachofthe

BusinesCentres.

“CalculationAmount”meanstheamountbyreferencetowhichtheInterestAmount,

FinalRedemptionAmount,EarlyRedemptionAmountandOptionalRedemption

Amountarecalculatedaspecifiedhereon.

“DayCountFraction”means,inrespectofthecalculationofanamountofinterest

onanyNoteforanyperiodoftime(fromandincludingthefirstdayofsuchperiodto

butexcludingthelast)(whetherornotconstitutinganInterestPeriodoranInterest

AcrualPeriod,the“CalculationPeriod”):

(i)if“Actual/Actual”or“Actual/Actual–ISDA”ispecifiedhereon,theactual

numberofdaysintheCalculationPeriodividedby365(or,ifanyportionof

thatCalculationPeriodfalsinaleapyear,thesumof(A)theactualnumberof

daysinthatportionoftheCalculationPeriodfalinginaleapyeardividedby

366and(B)theactualnumberofdaysinthatportionoftheCalculationPeriod

falinginanon-leapyeardividedby365);

(i)if“Actual/365(Fixed)”ispecifiedhereon,theactualnumberofdaysinthe

CalculationPeriodividedby365;

(i)if“Actual/365(Sterling)”ispecifiedhereon,theactualnumberofdaysinthe

CalculationPeriodividedby365or,inthecaseofanInterestPaymentDate

falinginaleapyear,366;

(iv)if“Actual/360”ispecifiedhereon,theactualnumberofdaysintheCalculation

Periodividedby360;

(v)if“30/360”,“360/360”or“BondBasis”ispecifiedhereon,thenumberofdays

intheCalculationPeriodividedby360,calculatedonaformulabasisas

folows:

Day Count Fraction =

[360×(Y

−Y

)]+[30×(M

−M

)]+(D

−D

)

where:

“Y1”istheyear,expresedasanumber,inwhichthefirstdayoftheCalculation

Periodfals;

“Y2”istheyear,expresedasanumber,inwhichthedayimediatelyfolowing

thelastdayincludedintheCalculationPeriodfals;

“M1”isthecalendarmonth,expresedasanumber,inwhichthefirstdayofthe

CalculationPeriodfals;

“M2”isthecalendarmonth,expresedasanumber,inwhichtheday

imediatelyfolowingthelastdayincludedintheCalculationPeriodfals;

“D1”isthefirstcalendarday,expresedasanumber,oftheCalculationPeriod,

unlesuchnumberwouldbe31,inwhichcaseD1wilbe30;and

“D2”isthecalendarday,expresedasanumber,imediatelyfolowingthelast

dayincludedintheCalculationPeriod,unlesuchnumberwouldbe31andD1

isgreaterthan29,inwhichcaseD2wilbe30.

(vi)if“30E/360”or“EurobondBasis”ispecifiedhereon,thenumberofdaysinthe

CalculationPeriodividedby360,calculatedonaformulabasisasfolows:

Day Count Fraction =

[360×(Y

−Y

)]+[30×(M

−M

)]+(D

−D

)

where:

“Y1”istheyear,expresedasanumber,inwhichthefirstdayoftheCalculation

Periodfals;

“Y2”istheyear,expresedasanumber,inwhichthedayimediatelyfolowing

thelastdayincludedintheCalculationPeriodfals;

“M1”isthecalendarmonth,expresedasanumber,inwhichthefirstdayofthe

CalculationPeriodfals;

“M2”isthecalendarmonth,expresedasanumber,inwhichtheday

imediatelyfolowingthelastdayincludedintheCalculationPeriodfals;

“D1”isthefirstcalendarday,expresedasanumber,oftheCalculationPeriod,

unlesuchnumberwouldbe31,inwhichcaseD1wilbe30;and

“D2”isthecalendarday,expresedasanumber,imediatelyfolowingthelast

dayincludedintheCalculationPeriod,unlesuchnumberwouldbe31,in

whichcaseD2wilbe30.

(vi)if“30E/360(ISDA)”ispecifiedhereon,thenumberofdaysintheCalculation

Periodividedby360,calculatedonaformulabasisasfolows:

Day Count Fraction =

[360×(Y

−Y

)]+[30×(M

−M

)]+(D

−D

)

where:

“Y1”istheyear,expresedasanumber,inwhichthefirstdayoftheCalculation

Periodfals;

“Y2”istheyear,expresedasanumber,inwhichthedayimediatelyfolowing

thelastdayincludedintheCalculationPeriodfals;

“M1”isthecalendarmonth,expresedasanumber,inwhichthefirstdayofthe

CalculationPeriodfals;

“M2”isthecalendarmonth,expresedasanumber,inwhichtheday

imediatelyfolowingthelastdayincludedintheCalculationPeriodfals;

“D1”isthefirstcalendarday,expresedasanumber,oftheCalculationPeriod,

unles(i)thatdayisthelastdayofFebruaryor(i)suchnumberwouldbe31,in

whichcaseD1wilbe30;and

“D2”isthecalendarday,expresedasanumber,imediatelyfolowingthelast

dayincludedintheCalculationPeriod,unles(i)thatdayisthelastdayof

FebruarybutnotheMaturityDateor(i)suchnumberwouldbe31,inwhich

caseD2wilbe30.

(vi)if“Actual/Actual–ICMA”ispecifiedhereon,

(A)iftheCalculationPeriodisequaltorshorterthantheDetermination

Perioduringwhichitfals,thenumberofdaysintheCalculationPeriod

dividedbytheproductof(1)thenumberofdaysinsuchDetermination

Periodand(2)thenumberofDeterminationPeriodsnormalyendinginany

year;and

(B)iftheCalculationPeriodislongerthanoneDeterminationPeriod,thesum

of:

(1)thenumberofdaysinsuchCalculationPeriodfalinginthe

DeterminationPeriodinwhichitbeginsdividedbytheproductof(I)

thenumberofdaysinsuchDeterminationPeriodand(I)thenumber

ofDeterminationPeriodsnormalyendinginanyear;and

(2)thenumberofdaysinsuchCalculationPeriodfalinginthenext

DeterminationPeriodividedbytheproductof(I)thenumberofdays

insuchDeterminationPeriodand(I)thenumberofDetermination

Periodsnormalyendinginanyear,

where:

“DeterminationPeriod”meanstheperiodfromandincludinga

DeterminationDateinanyeartobutexcludingthenextDetermination

Date;and

“DeterminationDate”meansthedate(s)specifiedasuchereonor,if

noneisospecified,theInterestPaymentDate(s).

“Euro-zone”meanstheregioncomprisedofmemberstatesoftheEuropean

UnionthatadopthesinglecurencyinacordancewiththeTreatyestablishing

theEuropeanComunity,asamended.

“IndependentAdviser”meansanindependentfinancialinstitutionof

internationalreputeorotherindependentfinancialadviserofrecognisedstanding

withrelevantexperienceintheinternationalcapitalmarkets,ineachcase

apointedbytheIsueratitsownexpense.

“InterestAcrualPeriod”meanstheperiodbeginingon(andincluding)the

InterestComencementDateandendingon(butexcluding)thefirstInterest

PeriodDateandeachsucesiveperiodbeginingon(andincluding)anInterest

PeriodDateandendingon(butexcluding)thenextsucedingInterestPeriod

Date.

“InterestAmount”means:

(i)inrespectofanInterestAcrualPeriod,theamountofinterestpayableper

CalculationAmountforthatInterestAcrualPeriodandwhich,inthecase

ofFixedRateNotes,andunlesotherwisespecifiedhereon,shalmeanthe

FixedCouponAmountorBrokenAmountspecifiedhereonasbeingpayable

ontheInterestPaymentDatendingtheInterestPeriodofwhichsuch

InterestAcrualPeriodformspart;and

(i)inrespectofanyotherperiod,theamountofinterestpayableper

CalculationAmountforthatperiod.

“InterestComencementDate”meanstheIsueDateorsuchotherdateasmay

bespecifiedhereon.

“InterestDeterminationDate”means,withrespectoaRateofInterestand

InterestAcrualPeriod,thedatespecifiedasuchereonor,ifnoneiso

specified,(i)thefirstdayofsuchInterestAcrualPeriodiftheSpecified

CurencyisSterling,HongKongdolarsorRenminbiotherthanwherethe

SpecifiedCurencyisRenminbiandtheReferenceRateisCNHIBORor(i)

thedayfalingtwoBusinesDaysinLondonfortheSpecifiedCurencypriorto

thefirstdayofsuchInterestAcrualPeriodiftheSpecifiedCurencyisnot

Sterling,euro,HongKongdolars,Renminbior(i)thedayfalingtwoT2

BusinesDayspriortothefirstdayofsuchInterestAcrualPeriodifthe

SpecifiedCurencyiseuror(iv)thedayfalingtwoBusinesDaysinHong

KongpriortothefirstdayofsuchInterestAcrualPeriodiftheSpecified

CurencyisRenminbiandtheReferenceRateisCNHIBORprovidedthatin

thisdefinition,“BusinesDay”shalmeanaday(otherthanaSaturdayor

Sunday)onwhichcomercialbanksandforeignexchangemarketsetle

paymentsinLondonorHongKong(asthecasemaybe).

“InterestPeriod”meanstheperiodbeginingonandincludingtheInterest

ComencementDateandendingonbutexcludingthefirstInterestPaymentDate

andeachsucesiveperiodbeginingonandincludinganInterestPaymentDate

andendingonbutexcludingthenextsucedingInterestPaymentDateunles

otherwisespecifiedhereon.

“InterestPeriodDate”meanseachInterestPaymentDateunlesotherwise

specifiedhereon.

“ISDABenchmarksSuplement”meanstheBenchmarksSuplement(as

amendedandupdatedasathedateofisueofthefirstTrancheoftheNotesof

therelevantSeries(aspecifiedhereon)publishedbytheInternationalSwaps

andDerivativesAsociation,Inc.

“ISDADefinitions”meansthe2006ISDADefinitions,asamendedand

suplementedandpublishedbytheInternationalSwapsandDerivatives

Asociation,Inc.,unlesotherwisespecifiedhereonand,ifspecifiedasuch

hereon,asuplementedbytheISDABenchmarksSuplement.

“RateofInterest”meanstherateofinterestpayablefromtimetotimein

respectoftheNotesandthatiseitherspecifiedorcalculatedinacordancewith

theprovisionshereon.

“ReferenceBanks”means,inthecaseofadeterminationofEURIBOR,the

principalEuro-zoneoficeofourmajorbanksintheEuro-zoneinter-bank

marketand,inthecaseofadeterminationofHIBOR,theprincipalHongKong

oficeofourmajorbanksintheHongKonginter-bankmarketand,inthecase

ofadeterminationofCNHIBOR,theprincipalHongKongoficeofourmajor

banksdealinginRenminbintheHongKonginter-bankmarket,ineachcase

selectedbytheCalculationAgentoraspecifiedhereon.

“ReferenceRate”meanstheratespecifiedasuchereon.

“RelevantNominatingBody”means,inrespectofabenchmarkorscrenrate

(asaplicable):

(i)thecentralbankforthecurencytowhichthebenchmarkorscrenrate(as

aplicable)relates,oranycentralbankorothersupervisoryauthoritywhich

isresponsibleforsupervisingtheadministratorofthebenchmarkorscren

rate(asaplicable);or

(i)anyworkingrouporcomitesponsoredby,chairedorco-chairedbyor

constitutedatherequestof(a)thecentralbankforthecurencytowhich

thebenchmarkorscrenrate(asaplicable)relates,(b)anycentralbankor

othersupervisoryauthoritywhichisresponsibleforsupervisingthe

administratorofthebenchmarkorscrenrate(asaplicable),(c)agroupof

theaforementionedcentralbanksorothersupervisoryauthoritiesor(d)the

FinancialStabilityBoardoranyparthereof.

“RelevantScrenPage”meansuchpage,section,caption,columnorotherpart

ofaparticularinformationserviceasmaybespecifiedhereonorsuchotherpage,

section,caption,columnorotherpartasmayreplaceitonthatinformation

serviceorsuchotherinformationservice,ineachcase,asmaybenominatedby

thepersonprovidingorsponsoringtheinformationapearingthereforthe

purposeofdisplayingratesorpricescomparabletotheReferenceRate.

“SpecifiedCurency”meansthecurencyspecifiedasuchereonor,ifnoneis

specified,thecurencyinwhichtheNotesaredenominated.

“SucesorRate”meansthereferenceratethatheIndependentAdvisororthe

Isuer(asaplicable)determinesisasucesortoreplacementofthe

ReferenceRatewhichisformalyrecomendedbyanyRelevantNominating

Body.

“T2”meanstheTrans-EuropeanAutomatedReal-timeGrosSetlementExpres

TransferSystemoranysucesororeplacementforthatsystem.

(k)CalculationAgent:TheIsuershalprocurethathereshalataltimesbeoneor

moreCalculationAgentsifprovisionismadeforitorthemhereonandforsolongas

anyNoteisoutstanding(asdefinedintheFiscalAgencyAgrement).Wheremore

thanoneCalculationAgentisapointedinrespectoftheNotes,referencesinthese

ConditionstotheCalculationAgentshalbeconstruedaseachCalculationAgent

performingitsrespectivedutiesundertheConditions.IftheCalculationAgentis

unableorunwilingtoactasuchor,iftheCalculationAgentfailsdulytoestablish

theRateofInterestforanInterestAcrualPeriodortocalculateanyInterestAmount,

InstalmentAmount,FinalRedemptionAmount,EarlyRedemptionAmountorOptional

RedemptionAmount,asthecasemaybe,ortocomplywithanyotherequirement,the

Isuershalapointaleadingbankorfinancialinstitutionengagedintheinterbank

market(or,ifapropriate,money,swaporover-the-counterindexoptionsmarket)that

ismostcloselyconectedwiththecalculationordeterminationtobemadebythe

CalculationAgent(actingthroughitsprincipalLondonoficeoranyotherofice

activelyinvolvedinsuchmarket)toactasuchinitsplace.TheCalculationAgent

maynotresignitsdutieswithoutasucesorhavingbenapointedasaforesaid.

6.REDEMPTION,PURCHASEANDOPTIONS

(a)RedemptionbyInstalmentsandFinalRedemption:

(i)Unlespreviouslyredemed,purchasedandcanceledasprovidedinthis

Condition6,eachNotethatprovidesforInstalmentDatesandInstalment

AmountshalbepartialyredemedoneachInstalmentDateatherelated

InstalmentAmountspecifiedhereon.Theoutstandingnominalamountofeach

suchNoteshalbereducedbytheInstalmentAmount(or,ifsuchInstalment

Amountiscalculatedbyreferencetoaproportionofthenominalamountofsuch

Note,suchproportion)foralpurposeswithefectfromtherelatedInstalment

Date,unlespaymentoftheInstalmentAmountisimproperlywitheldor

refused,inwhichcase,suchamountshalremainoutstandinguntiltheRelevant

DaterelatingtosuchInstalmentAmount.

(i)Unlespreviouslyredemed,purchasedandcanceledasprovidedbelow,each

NoteshalbefinalyredemedontheMaturityDatespecifiedhereonatitsFinal

RedemptionAmount(which,unlesotherwiseprovided,isitsnominalamount)

or,inthecaseofaNotefalingwithinCondition6(a)(i),itsfinalInstalment

Amount.

(b)EarlyRedemption:

(i)ZeroCouponNotes:

(A)TheEarlyRedemptionAmountpayableinrespectofanyZeroCouponNote,

theEarlyRedemptionAmountofwhichisnotlinkedtoanindexand/ora

formula,uponredemptionofsuchNotepursuantoCondition6(c),

Condition6(d)orCondition6(e)oruponitbecomingdueandpayableas

providedinCondition10shalbetheAmortisedFaceAmount(calculatedas

providedbelow)ofsuchNoteunlesotherwisespecifiedhereon.

(B)Subjectotheprovisionsofsub-paragraph(C)below,theAmortisedFace

AmountofanysuchNoteshalbethescheduledFinalRedemptionAmount

ofsuchNoteontheMaturityDatediscountedatarateperanum

(expresedasapercentage)equaltotheAmortisationYield(which,ifnone

ishownhereon,shalbesuchrateaswouldproduceanAmortisedFace

AmountequaltotheisuepriceoftheNotesiftheywerediscountedback

totheirisuepriceontheIsueDate)compoundedanualy.

(C)IftheEarlyRedemptionAmountpayableinrespectofanysuchNoteupon

itsredemptionpursuantoCondition6(c),Condition6(d)orCondition6(e)

(asaplicable)oruponitbecomingdueandpayableasprovidedin

Condition10isnotpaidwhendue,theEarlyRedemptionAmountdueand

payableinrespectofsuchNoteshalbetheAmortisedFaceAmountofsuch

Noteasdefinedinsub-paragraph(B)above,excepthatsuchsub-paragraph

shalhavefectasthoughthedateonwhichtheNotebecomesdueand

payableweretheRelevantDate.ThecalculationoftheAmortisedFace

Amountinacordancewiththisub-paragraphshalcontinuetobemade

(bothbeforeandafterjudgment)untiltheRelevantDate,unlesthe

RelevantDatefalsonoraftertheMaturityDate,inwhichcasetheamount

dueandpayableshalbethescheduledFinalRedemptionAmountofsuch

NoteontheMaturityDatetogetherwithanyinteresthatmayacruein

acordancewithCondition5(c).

Wheresuchcalculationistobemadeforaperiodoflesthanoneyear,itshal

bemadeonthebasisoftheDayCountFractionshownhereon.

(i)OtherNotes:TheEarlyRedemptionAmountpayableinrespectofanyNote

(otherthanNotesdescribedin(i)above),uponredemptionofsuchNotepursuant

toCondition6(c)orCondition6(d)oruponitbecomingdueandpayableas

providedinCondition10,shalbetheFinalRedemptionAmountunles

otherwisespecifiedhereon.

(c)RedemptionforTaxationReasons:TheNotesmayberedemedatheoptionofthe

Isuerinwhole,butnotinpart,onanyInterestPaymentDate(ifthisNoteiseithera

FloatingRateNoteoranIndexLinkedNote)oratanytime(ifthisNoteisneithera

FloatingRateNotenoranIndexLinkedNote),ongivingnotlesthan30normore

than60days’noticetotheNoteholders(whichnoticeshalbeirevocable)atheir

EarlyRedemptionAmount(asdescribedinCondition6(b)above)(togetherwith

interestacruedtothedatefixedforedemption),if

(i)theIsuerhasorwilbecomeobligedtopayAditionalTaxAmountsasprovided

oreferedtoinCondition8asaresultofanychangein,oramendmento,the

lawsoregulationsoftheRelevantJurisdictions(asdefinedbelow),orany

changeintheaplicationoroficialinterpretationofsuchlawsoregulations

(includingaholdingbyacourtofcompetentjurisdiction),whichchangeor

amendmentbecomesefectiveonorafterthedateonwhichagrementisreached

toisuethefirstTrancheoftheNotes;and

(i)suchobligationcanotbeavoidedbytheIsuertakingreasonablemeasures

availabletoit,

providedthatnosuchnoticeofredemptionshalbegivenearlierthan90daysprior

tothearliestdateonwhichtheIsuerwouldbeobligedtopaysuchAditionalTax

AmountswereapaymentinrespectoftheNotesthendue.

PriortothepublicationofanynoticeofredemptionpursuantothisCondition6(c),

theIsuershaldelivertotheFiscalAgent:

(A)acertificatesignedbyadirectororanauthorisedsignatoryoftheIsuerstating

thatheIsuerisentitledtoefectsuchredemptionandsetingforthastatement

ofactshowingthatheconditionsprecedentotherightoftheIsuersoto

redemhaveocured;and

(B)anopinionofindependentlegalortaxadvisersofrecognisedstandingtothe

efecthatheIsuerhasorwilbecomeobligedtopaysuchAditionalTax

Amountsasaresultofsuchchangeoramendment.

UponthexpiryofanysuchnoticeasisreferedtointhisCondition6(c),theIsuer

shalbeboundtoredemtheNotesinacordancewiththisCondition6(c).

(d)RedemptionatheOptionoftheIsuer:IfCalOptionispecifiedhereon,the

Isuermay,ongivingnotlesthan15normorethan30days’irevocablenoticetothe

Noteholders(orsuchothernoticeperiodasmaybespecifiedhereon)redemalor,if

soprovided,someoftheNotesonanyOptionalRedemptionDate.Anysuch

redemptionofNoteshalbeatheirOptionalRedemptionAmountspecifiedhereon

(whichmaybetheEarlyRedemptionAmount(asdescribedinCondition6(b)above),

togetherwithinterestacruedtothedatefixedforedemption.Anysuchredemption

orexercisemustrelatetoNotesofanominalamountatleastequaltotheMinimum

RedemptionAmountoberedemedspecifiedhereonandnogreaterthanthe

MaximumRedemptionAmountoberedemedspecifiedhereon.

AlNotesinrespectofwhichanysuchnoticeisgivenshalberedemedonthedate

specifiedinsuchnoticeinacordancewiththisCondition.

InthecaseofapartialredemptionthenoticetoNoteholdershalalsocontainthe

certificatenumbersoftheBearerNotes,orinthecaseofRegisteredNoteshal

specifythenominalamountofRegisteredNotesdrawnandtheholder(s)ofsuch

RegisteredNotes,toberedemed,whichshalhavebendrawninsuchplaceandin

suchmanerasmaybefairandreasonableinthecircumstances,takingacountof

prevailingmarketpractices,subjectocompliancewithanyaplicablelawsandstock

exchangeorotherelevantauthorityrequirements.

(e)RedemptionatheOptionofNoteholders:IfPutOptionispecifiedhereon,the

Isuershal,atheoptionoftheholderofanysuchNote,upontheholderofsuch

Notegivingnotlesthan15normorethan30days’noticetotheIsuer(orsuchother

noticeperiodasmaybespecifiedhereon)redemsuchNoteontheOptional

RedemptionDate(s)atitsOptionalRedemptionAmountspecifiedhereon(whichmay

betheEarlyRedemptionAmount(asdescribedinCondition6(b)above),together

withinterestacruedtothedatefixedforedemption.

Toexercisesuchoptiontheholdermustdeposit(inthecaseofBearerNotes)such

Note(togetherwithalunmaturedReceiptsandCouponsandunexchangedTalons)

withanyPayingAgentor(inthecaseofRegisteredNotes)theCertificaterepresenting

suchNote(s)withtheRegistraroranyotherTransferAgentatitspecifiedofice,

togetherwithadulycompletedoptionexercisenotice(an“ExerciseNotice”)inthe

formobtainablefromanyPayingAgent,theRegistraroranyotherTransferAgent(as

aplicable)withinthenoticeperiod.NoNoteorCertificatesodepositedandoption

exercisedmaybewithdrawn(exceptasprovidedintheFiscalAgencyAgrement)

withouthepriorconsentoftheIsuer.

(f)Notheredemption:TheIsuershalnotbentitledtoredemtheNotesotherwise

thanasprovidedinparagraphs(a),(c),(d)and(e)above.

(g)PartlyPaidNotes:PartlyPaidNoteswilberedemed,whetheratmaturity,early

redemptionorotherwise,inacordancewiththeprovisionsofthisCondition6andthe

provisionspecifiedhereon.

(h)Purchases:TheIsuer,theBankanditsSubsidiariesmayatanytimepurchaseNotes

(providedthatalunmaturedReceiptsandCouponsandunexchangedTalonsrelating

theretoareatachedtheretorsurenderedtherewith)intheopenmarketorotherwise

atanyprice.SuchNotesmay,atheoptionoftheIsuer,beheld,reisued,resoldor

surenderedtotheFiscalAgentforcancelation.TheNotesopurchased,whileheld

byoronbehalfoftheIsuer,theBankoranySubsidiaryoftheBank,shalnotentitle

theholdertovoteatanymetingsoftheNoteholdersandshalnotbedemedtobe

outstandingforthepurposesofcalculatingquorumsatmetingsoftheNoteholdersor

forthepurposesofCondition11.

(i)Cancelation:AlNotespurchasedbyoronbehalfoftheIsuer,theBankoranyof

itsSubsidiariesmaybesurenderedforcancelation,inthecaseofBearerNotes,by

surenderingeachsuchNotetogetherwithalunmaturedReceiptsandCouponsand

alunexchangedTalonstotheFiscalAgentand,inthecaseofRegisteredNotes,by

surenderingtheCertificaterepresentingsuchNotestotheRegistrarand,ineachcase,

ifsosurendered,shal,togetherwithalNotesredemedbytheIsuer,becanceled

forthwith(togetherwithalunmaturedReceiptsandCouponsandunexchangedTalons

atachedtheretorsurenderedtherewith).AnyNotesosurenderedforcancelation

maynotbereisuedoresoldandtheobligationsoftheIsuerinrespectofanysuch

Noteshalbedischarged.

7.PAYMENTSANDTALONS

(a)BearerNotes:PaymentsofprincipalandinterestinrespectofBearerNoteshal,

subjectasmentionedbelow,bemadeagainstpresentationandsurenderofthe

relevantReceipts(inthecaseofpaymentsofInstalmentAmountsotherthanonthe

duedateforedemptionandprovidedthatheReceiptispresentedforpayment

togetherwithitsrelativeNote),Notes(inthecaseofalotherpaymentsofprincipal

and,inthecaseofinterest,aspecifiedinCondition7(f)(vi)orCoupons(inthecase

ofinterest,saveaspecifiedinCondition7(f)(i),asthecasemaybe:

(i)inthecaseofNotesdenominatedinacurencyotherthanRenminbi,athe

specifiedoficeofanyPayingAgentoutsidetheUnitedStatesbyacheque

payableintherelevantcurencydrawnon,or,atheoptionoftheholder,by

transfertoanacountdenominatedinsuchcurencywith,abank;and

(i)inthecaseofNotesdenominatedinRenminbi,bytransfertoaRenminbiacount

maintainedbyoronbehalfoftheNoteholderwithabankinHongKong.

InthisCondition7,“bank”meansabankintheprincipalfinancialcentreforsuch

curencyor,inthecaseofeuro,inacityinwhichbankshaveacestotheT2or,in

thecaseofRenminbi,inHongKong.

(b)RegisteredNotes:

(i)Paymentsofprincipal(whichforthepurposesofthisCondition7(b)shal

includefinalInstalmentAmountsbutnototherInstalmentAmounts)inrespectof

RegisteredNoteshalbemadeagainstpresentationandsurenderoftherelevant

CertificatesathespecifiedoficeofanyoftheTransferAgentsorofthe

RegistrarandinthemanerprovidedinCondition7(b)(i)below.

(i)Interest(whichforthepurposeofthisCondition7(b)shalincludealInstalment

AmountsotherthanfinalInstalmentAmounts)onRegisteredNoteshalbepaid

tothepersonshownontheRegisterathecloseofbusinesonthefifth(inthe

caseofNotesdenominatedinRenminbi)andfiftenth(inthecaseofNotes

denominatedinacurencyotherthanRenminbi)daybeforetheduedatefor

paymenthereof(the“RecordDate”)andinthemanerprovidedinCondition

7(b)(i)below.

(i)Paymentsofprincipalorinterest,asthecasemaybe,oneachRegisteredNote

shalbemade:

(x)inthecaseofacurencyotherthanRenminbi,intherelevantcurencyby

chequedrawnonabankandmailedtotheholder(ortothefirstnamedof

jointholders)ofsuchNoteatitsadresapearingintheRegister.Upon

aplicationbytheholdertothespecifiedoficeoftheRegistrarorany

TransferAgentbeforetheRecordDate,suchpaymentofinterestmaybe

madebytransfertoanacountintherelevantcurencymaintainedbythe

payewithabank;and

(y)inthecaseofRenminbi,bytransfertotheregisteredacountofthe

Noteholder.

InthisCondition7(b)(i),“registeredacount”meanstheRenminbiacount

maintainedbyoronbehalfoftheNoteholderwithabankinHongKong,details

ofwhichapearontheRegisterathecloseofbusinesonthefifthbusinesday

beforetheduedateforpayment.

SolongastheNotesarerepresentedbytheGlobalCertificate,eachpaymentin

respectoftheGlobalCertificatewilbemadeto,ortotheorderof,theperson

shownastheholderoftheNotesintheRegisterathecloseofbusines(ofthe

relevantclearingsystem)ontheClearingSystemBusinesDayimediatelyprior

totheduedateforsuchpayment,where“ClearingSystemBusinesDay”means

awekday(MondaytoFriday,inclusive)except25Decemberand1January.

PaymentofinterestorprincipalbytheCMULodgingandPayingAgentothe

personforwhoseacountarelevantinterestintheGlobalCertificateiscredited

asbeingheldbytheCMUatherelevantimeasnotifiedtotheCMULodging

andPayingAgentbytheCMUinarelevantCMUInstrumentPositionReport(as

definedintherelevantCMUrules)oranyotherelevantnotificationbytheCMU

shaldischargetheobligationsoftheIsuerinrespectofthatpayment.

(c)PaymentsintheUnitedStates:Notwithstandingtheforegoing,ifanyBearerNotes

aredenominatedinU.S.dolars,paymentsinrespecthereofmaybemadeathe

specifiedoficeofanyPayingAgentinNewYorkCityinthesamemaneras

aforesaidif(i)theIsuershalhaveapointedPayingAgentswithspecifiedofices

outsidetheUnitedStateswiththereasonablexpectationthatsuchPayingAgents

wouldbeabletomakepaymentoftheamountsontheNotesinthemanerprovided

abovewhendue,(i)paymentinfulofsuchamountsatalsuchoficesisilegalor

efectivelyprecludedbyexchangecontrolsorothersimilarestrictionsonpaymentor

receiptofsuchamountsand(i)suchpaymentisthenpermitedbyUnitedStateslaw,

withoutinvolving,intheopinionoftheIsuer,anyadversetaxconsequencetothe

Isuer.

(d)PaymentsubjectoFiscalLaws:Alpaymentsaresubjectinalcasestoany

aplicablefiscalorotherlaws,regulationsandirectivesinHongKongoranyother

placeofpayment,butwithoutprejudicetotheprovisionsofCondition8andany

witholdingordeductionrequiredpursuantoanagrementdescribedinSection

1471(b)oftheU.S.InternalRevenueCodeof1986,asamended(the“Code”)or

otherwiseimposedpursuantoSections1471through1474oftheCode,any

regulationsoragrementsthereunder,anyoficialinterpretationsthereof,or(without

prejudicetotheprovisionsofCondition8)anylawimplementingan

intergovernmentalaproachthereto.Nocomisionorexpenseshalbechargedto

theNoteholdersorCouponholdersinrespectofsuchpayments.

(e)ApointmentofAgents:TheFiscalAgent,theCMULodgingandPayingAgent,the

PayingAgents,theRegistrarandtheTransferAgentsinitialyapointedbytheIsuer

andtheirespectivespecifiedoficesarelistedbelow.TheFiscalAgent,theCMU

LodgingandPayingAgent,thePayingAgents,theRegistrarandtheTransferAgents

apointedundertheFiscalAgencyAgrementandanyCalculationAgent(s)apointed

inrespectofanyNotesactsolelyasagentsoftheIsuerandonotasumeany

obligationorelationshipofagencyortrustfororwithanyNoteholderor

Couponholder.TheIsuereservestherightatanytimetovaryorterminatethe

apointmentoftheFiscalAgent,theCMULodgingandPayingAgent,anyother

PayingAgent,theRegistrar,anyTransferAgentortheCalculationAgent(s)andto

apointaditionalorotherPayingAgentsorTransferAgents,ineachcasein

acordancewiththeFiscalAgencyAgrement,providedthatheIsuershalatal

timesmaintain(i)aFiscalAgent,(i)aRegistrarinrelationtoRegisteredNotes

outsidetheUnitedKingdom,(i)aTransferAgentinrelationtoRegisteredNotes,

(iv)aCMULodgingandPayingAgentinrelationtoNotesaceptedforclearance

throughtheCMU,(v)oneormoreCalculationAgent(s)wheretheConditionso

require,(vi)aPayingAgentinSingapore,wheretheNotesmaybepresentedor

surenderedforpaymentoredemption,intheventhatheNotesareisuedin

definitiveform,forsolongastheNotesarelistedontheSingaporeExchange

SecuritiesTradingLimitedoranysucesorthereto(the“SGX-ST”)andtherulesof

theSGX-STsorequireand(vi)suchotheragentsasmayberequiredbyanyother

stockexchangeonwhichtheNotesmaybelisted.

Inadition,theIsuershalforthwithapointaPayingAgentinNewYorkCityin

respectofanyBearerNotesdenominatedinU.S.dolarsinthecircumstances

describedinCondition7(c)above.

Noticeofanysuchchangeoranychangeofanyspecifiedoficeshalpromptlybe

giventotheNoteholders.

(f)UnmaturedCouponsandReceiptsandunexchangedTalons:

(i)UpontheduedateforedemptionofBearerNoteswhichcompriseFixedRate

Notes(otherthanDualCurencyNotesorIndexLinkedNotes),suchNotes

shouldbesurenderedforpaymentogetherwithalunmaturedCoupons(ifany)

relatingthereto,failingwhichanamountequaltothefacevalueofeachmising

unmaturedCoupon(or,inthecaseofpaymentnotbeingmadeinful,that

proportionoftheamountofsuchmisingunmaturedCouponthathesumof

principalsopaidbearstothetotalprincipaldue)shalbedeductedfromthe

FinalRedemptionAmount,EarlyRedemptionAmountorOptionalRedemption

Amount,asthecasemaybe,dueforpayment.Anyamountsodeductedshalbe

paidinthemanermentionedaboveagainstsurenderofsuchmisingCoupon

withinaperiodof10yearsfromtheRelevantDateforthepaymentofsuch

principal(whetherornotsuchCouponhasbecomevoidpursuantoCondition9).

(i)UpontheduedateforedemptionofanyBearerNotecomprisingaFloatingRate

Note,DualCurencyNoteorIndexLinkedNote,unmaturedCouponsrelatingto

suchNote(whetherornotatached)shalbecomevoidandnopaymentshalbe

madeinrespectofthem.

(i)UpontheduedateforedemptionofanyBearerNote,anyunexchangedTalon

relatingtosuchNote(whetherornotatached)shalbecomevoidandnoCoupon

shalbedeliveredinrespectofsuchTalon.

(iv)UpontheduedateforedemptionofanyBearerNotethatisredemablein

instalments,alReceiptsrelatingtosuchNotehavinganInstalmentDatefaling

onoraftersuchduedate(whetherornotatached)shalbecomevoidandno

paymentshalbemadeinrespectofthem.

(v)WhereanyBearerNotethatprovidesthatherelevantunmaturedCouponsareto

becomevoidupontheduedateforedemptionofthoseNotesispresentedfor

redemptionwithoutalunmaturedCoupons,andwhereanyBearerNoteis

presentedforedemptionwithoutanyunexchangedTalonrelatingtoit,

redemptionshalbemadeonlyagainstheprovisionofsuchindemnityasthe

Isuermayrequire.

(vi)IftheduedateforedemptionofanyNoteisnotaduedateforpaymentof

interest,interestacruedfromtheprecedingduedateforpaymentofinterestor

theInterestComencementDate,asthecasemaybe,shalonlybepayable

againstpresentation(andsurenderifapropriate)oftherelevantBearerNoteor

Certificaterepresentingit,asthecasemaybe.InterestacruedonaNotethat

onlybearsinterestafteritsMaturityDateshalbepayableonredemptionofsuch

NoteagainstpresentationoftherelevantNoteorCertificaterepresentingit,as

thecasemaybe.

(g)Talons:OnoraftertheInterestPaymentDateforthefinalCouponformingpartofa

CouponshetisuedinrespectofanyBearerNote,theTalonformingpartofsuch

CouponshetmaybesurenderedathespecifiedoficeoftheFiscalAgentin

exchangeforafurtherCouponshet(andifnecesaryanotherTalonforafurther

Couponshet)(butexcludinganyCouponsthatmayhavebecomevoidpursuanto

Condition9).

(h)Non-BusinesDays:IfanydateforpaymentinrespectofanyNote,Receiptor

Couponisnotabusinesday,theholdershalnotbentitledtopaymentuntilthenext

folowingbusinesdaynortoanyinterestorothersuminrespectofsuchpostponed

payment.InthisCondition7,“businesday”meansaday(otherthanaSaturdayora

Sunday)onwhichbanksandforeignexchangemarketsareopenforbusinesinHong

Kongandtherelevantplaceofpresentation(ifpresentationand/orsurenderofsuch

Note,ReceiptorCouponisrequired)insuchjurisdictionsashalbespecifiedas

“FinancialCentres”hereonand:

(i)(inthecaseofapaymentinacurencyotherthaneurorRenminbi)where

paymentistobemadebytransfertoanacountmaintainedwithabankinthe

relevantcurency,onwhichforeignexchangetransactionsmaybecariedonin

therelevantcurencyintheprincipalfinancialcentreofthecountryofsuch

curency;or

(i)(inthecaseofapaymentinRenminbi)onwhichcomercialbanksandforeign

exchangemarketsinHongKongareopenforbusinesandsetlementof

Renminbipayments;or

(i)(inthecaseofapaymentineuro)whichisaT2BusinesDay.

8.TAXATION

Subjectasprovidedbelow,alpaymentsofprincipalandinterestbyoronbehalfofthe

IsuerinrespectoftheNotes,theReceiptsandtheCouponshalbemadefreandclear

of,andwithoutwitholdingordeductionfor,anytaxes,duties,asesmentsor

governmentalchargesofwhatevernatureimposed,levied,colected,witheldorasesed

byorwithinaRelevantJurisdiction,unlesuchwitholdingordeductionisrequiredby

lawofanyRelevantJurisdiction.

WheresuchwitholdingordeductionismadebytheIsuerbyorwithinthePRCuptoand

includingtherateaplicableontheIsueDate(the“AplicableRate”),theIsuerwil

increasetheamountspaidbyitothextentrequired,sothathenetamountreceivedby

NoteholdersandCouponholdersequalstheamountswhichwouldotherwisehaveben

receivedbythemhadnosuchwitholdingordeductionbenrequired.

IntheventheIsuerisrequiredtomakeadeductionorwitholdinginrespectof(i)PRC

taxinexcesoftheAplicableRateand/or(i)anytaxinaRelevantJurisdictionotherthan

thePRC,theIsuershalpaysuchaditionalamounts(“AditionalTaxAmounts”)as

shalresultinreceiptbytheNoteholdersandCouponholdersofsuchamountsaswould

havebenreceivedbythemhadnosuchwitholdingordeductionbenrequired,except

thatnosuchAditionalTaxAmountshalbepayablewithrespectoanyNote,Receiptor

Coupon:

(a)Otherconection:to,ortoathirdpartyonbehalfof,aholderwhoisliabletosuch

taxes,duties,asesmentsorgovernmentalchargesinrespectofsuchNote,Receiptor

CouponbyreasonofsucholderhavingsomeconectionwiththeRelevant

JurisdictionotherthanthemereholdingoftheNote,ReceiptorCoupon;or

(b)Lawfulavoidanceofwitholding:to,ortoathirdpartyonbehalfof,aholderwho

wouldnotbeliablefororsubjectosuchwitholdingordeductionbymakinga

declarationofidentity,non-residenceorothersimilarclaimforexemptiontothe

relevantaxauthorityif,afterhavingbenrequestedtomakesuchadeclarationor

claim,sucholderfailstodosowithinanyaplicableperiodprescribedbysuch

relevantaxauthority;or

(c)Presentationmorethan30daysaftertheRelevantDate:wheretherelevantNoteor

CouponorReceiptispresentedorsurenderedforpaymentmorethan30daysafter

theRelevantDatexceptothextenthatheholderofitwouldhavebenentitledto

suchaditionalamountsonpresentingitforpaymentonthethirtiethday.

IntheseConditions:

“RelevantDate”inrespectofanyNote,ReceiptorCouponmeanswhicheveristhelaterof

(a)thedateonwhichpaymentinquestionfirstbecomesdueand(b)ifthefulamount

payablehasnotbenpaidonorpriortosuchduedate,thedateonwhichthefulamount

hasbenpaidandnoticetothatefecthasbengiventotheNoteholders;and

“RelevantJurisdiction”meansthePRC,andiftheIsuerisabranchoftheBank,the

jurisdictionwherethatbranchislocated,oranypoliticalsubdivisionoranyauthority

thereoforthereinhavingpowertotaxoranyotherjurisdictionoranypoliticalsubdivision

oranyauthoritythereoforthereinhavingpowertotaxtowhichtheIsuerbecomesubject

inrespectofpaymentsmadebyitofprincipalandinterestontheNotes.

ReferencesintheseConditionsto(i)“principal”shalbedemedtoincludeanypremium

payableinrespectoftheNotes,alInstalmentAmounts,FinalRedemptionAmounts,Early

RedemptionAmounts,OptionalRedemptionAmounts,AmortisedFaceAmountsandal

otheramountsinthenatureofprincipalpayablepursuantoCondition6oranyamendment

orsuplementoit,(i)“interest”shalbedemedtoincludealInterestAmountsandal

otheramountspayablepursuantoCondition5oranyamendmentorsuplementoitand

(i)“principal”and/or“interest”shalbedemedtoincludeanyaditionalamountsthat

maybepayableunderthisCondition8.

Fortheavoidanceofdoubt,theIsuer’sobligationtopayaditionalamountsinrespectof

taxes,duties,asesmentsandothergovernmentalchargeswilnotaplyto(a)anyestate,

inheritance,gift,sales,transfer,personalpropertyoranysimilartax,duty,asesmentor

othergovernmentalchargeor(b)anytax,duty,asesmentorothergovernmentalcharge

whichispayableotherwisethanbydeductionorwitholdingfrompaymentsofprincipal

of,orinterestontheNotes,theReceiptsortheCoupons;providedthatheIsuershal

payalstamporothertaxes,duties,asesmentsorothergovernmentalcharges,ifany,

whichmaybeimposedbytheRelevantJurisdiction,withrespectotheFiscalAgency

AgrementorasaconsequenceoftheisuanceoftheNotes,theReceiptsortheCoupons.

9.PRESCRIPTION

ClaimsagainstheIsuerforpaymentinrespectoftheNotes,ReceiptsandCoupons

(which,forthispurpose,shalnotincludeTalons)shalbeprescribedandbecomevoid

unlesmadewithin10years(inthecaseofprincipal)orfiveyears(inthecaseofinterest)

fromtheapropriateRelevantDateinrespectofthem.

10.EVENTSOFDEFAULT

Ifanyofthefolowingevents(eachan“EventofDefault”)ocursandiscontinuing,any

NoteholdermaygivenoticetotheIsuerathespecifiedoficeoftheFiscalAgenthatany

Noteheldbyitisandshalimediatelybecome,dueandpayableatheEarlyRedemption

AmountofsuchNotetogetherwithacruedinterest(ifany)tothedateofpaymentwithout

furtherformality:

(a)Non-Payment:theIsuerfailstopaytheprincipaloforanypremium(ifany)or

interestonanyoftheNoteswhendueand,inthecaseofprincipal,wheresuchfailure

continuesforaperiodof7days,or,inthecaseofanypremium(ifany)orinterest,

wheresuchfailurecontinuesforaperiodof30days;or

(b)BreachofOtherObligations:theIsuerdefaultsintheperformanceorobservanceof

anyofitsotherobligationsunderorinrespectoftheNotesortheDedofCovenant

andsuchdefaultisincapableofremedyor,ifcapableofremedy,remainsunremedied

for45daysafterwritenoticethereof,adresedtotheIsuerbyanyNoteholder,has

bendeliveredtotheIsuerortothespecifiedoficeoftheFiscalAgent;or

(c)Cros-Default:

(i)anyPublicExternalIndebtednesoftheBankoranyofitsSubsidiariesisnot

paidwhendueor(asthecasemaybe)withinanyoriginalyaplicablegrace

period;

(i)anysuchPublicExternalIndebtednesbecomesdueandpayablepriortoits

statedmaturityotherwisethanatheoptionoftheBankortherelevant

Subsidiary(asthecasemaybe)or(providedthatnoeventofdefault,

howsoeverdescribed,hasocured)anypersonentitledtosuchPublicExternal

Indebtednes;or

(i)theBankoranyofitsSubsidiariesfailstopaywhendueor(asthecasemaybe)

withinanyoriginalyaplicablegraceperiodanyamountpayablebyitunderany

guaranteorindemnityofanyPublicExternalIndebtednes,

providedthatheamountofPublicExternalIndebtednesreferedtoin

sub-paragraph(i)and/orsub-paragraph(i)aboveand/ortheamountpayableunder

anyguaranteorindemnityreferedtoinsub-paragraph(i)above,individualyorin

theagregate,excedsU.S.$25,000,000(oritsequivalentinanyothercurencyor

curencies);or

(d)Securityenforced:asecuredpartytakesposesion,orareceiver,managerorother

similaroficerisapointed,ofthewholeorasubstantialpartoftheundertaking,

asetsandrevenuesoftheIsuer,theBankoranyofitsMaterialSubsidiaries;or

(e)Insolvency:(i)theBankoranyofitsMaterialSubsidiariesbecomesinsolventoris

unabletopayitsdebtsastheyfaldue,(i)anadministratororliquidatorisapointed

(oraplicationforanysuchapointmentismade)inrespectoftheBankoranyofits

MaterialSubsidiariesorthewholeorasubstantialpartoftheundertaking,asetsand

revenuesoftheBankoranyofitsMaterialSubsidiaries,(i)theBankoranyofits

MaterialSubsidiariestakesanyactionforareadjustmentordefermentofanyofits

obligationsormakesageneralasignmentoranarangementorcompositionwithor

forthebenefitofitscreditorsordeclaresamoratoriuminrespectofanyofits

indebtednesoranyguaranteorindemnityofanyindebtednesgivenbyitor(iv)the

BankoranyofitsMaterialSubsidiariesceasesorthreatenstoceasetocaryonalor

anysubstantialpartofitsbusines,except(x)ontermsaprovedbyanExtraordinary

ResolutionoftheNoteholdersor(y)inthecaseofanyMaterialSubsidiary,forthe

purposeofandfolowedby(A)asolventwinding-upordisolution,(B)a

Reorganisationwherebythebusines,undertakingandasetsofsuchMaterial

SubsidiaryaretransferedtorotherwisevestedintheBankand/oranother

Subsidiaryor(C)adisposaloforbyaMaterialSubsidiaryonanarm’slengthbasis

wheretheasets(whetherincashorotherwise)fromsuchdisposalshalbetransfered

torotherwisevestedintheBankand/oranotherSubsidiary;or

(f)Winding-up:anorderismadeoranefectiveresolutionispasedforthewindingup,

liquidationordisolutionoftheBankoranyofitsMaterialSubsidiaries,exceptinthe

caseofanyMaterialSubsidiary,forthepurposeofandfolowedby(i)asolvent

winding-upordisolution,(i)aReorganisationwherebythebusines,undertakingand

asetsofsuchMaterialSubsidiaryaretransferedtorotherwisevestedintheBank

and/oranotherSubsidiary,or(i)adisposaloforbyaMaterialSubsidiaryonan

arm’slengthbasiswheretheasets(whetherincashorotherwise)fromsuchdisposal

shalbetransferedtorotherwisevestedintheBankand/oranotherSubsidiary;or

(g)AnalogousEvents:anyeventocurswhichthatunderthelawsofanyrelevant

jurisdictionhasananalogousefectoanyoftheventsreferedtoinparagraphs(d)

(Securityenforced)to(f)(Winding-up)above;or

(h)Ilegality:itisorwilbecomeunlawfulfortheIsuerortheBanktoperformor

complywithanyoneormoreofitsobligationsunderorinrespectofanyofthe

Notes,theCouponsortheDedofCovenant.

IntheseConditions:

“MaterialSubsidiary”meansanySubsidiaryoftheBank:

(A)whosegrosrevenue(consolidatedinthecaseofaSubsidiarywhichitselfhas

consolidatedSubsidiaries),whosegrosasets(consolidatedinthecaseofa

SubsidiarywhichitselfhasconsolidatedSubsidiaries)orwhosenetprofit

(consolidatedinthecaseofSubsidiarywhichitselfhasconsolidatedSubsidiaries)

representnotlesthan5percent.oftheconsolidatedgrosrevenue,theconsolidated

grosasets,or,asthecasemaybe,theconsolidatednetprofitoftheBankandits

Subsidiariestakenasawhole,alascalculatedrespectivelybyreferencetothelatest

auditedoreviewedfinancialstatements(consolidatedor,asthecasemaybe,

unconsolidated)oftheSubsidiaryandthethenlatestauditedoreviewedconsolidated

financialstatementsoftheBank,providedthat:

(1)inthecaseofaSubsidiaryacquiredafterthendofthefinancialperiodtowhich

thethenlatestauditedoreviewedconsolidatedfinancialstatementsoftheBank

relateforthepurposeofaplyingeachoftheforegoingtests,thereferencetothe

Bank’slatestauditedoreviewedconsolidatedfinancialstatementshalbe

demedtobeareferencetosuchauditedoreviewedfinancialstatementsasif

suchSubsidiaryhadbenshownthereinbyreferencetoitsthenlatestrelevant

auditedoreviewedfinancialstatements,adjustedasdemedapropriatebythe

auditorforthetimebeing,afterconsultationwiththeBank;

(2)ifatanyrelevantimeinrelationtotheBankoranySubsidiarynofinancial

statementsarepreparedandaudited,itsgrosrevenue,grosasetsandnetprofit

(consolidated,ifaplicable)shalbedeterminedonthebasisofproforma

consolidatedfinancialstatements(consolidated,ifaplicable)preparedforthis

purpose;and

(3)ifthefinancialstatementsofanySubsidiary(notbeingaSubsidiaryreferedto

inproviso(1)above)arenotconsolidatedwiththoseoftheBank,thenthe

determinationofwhetherornotsuchSubsidiaryisaMaterialSubsidiaryshalbe

basedonaproformaconsolidationofitsfinancialstatements(consolidated,if

apropriate)withtheconsolidatedfinancialstatements(determinedonthebasis

oftheforegoing)oftheBank;or

(B)towhichistransferedalorsubstantialyalofthebusines,undertakingandasets

ofanotherSubsidiarywhichimediatelypriortosuchtransferisaMaterial

Subsidiary,whereupon(i)inthecaseofatransferbyaMaterialSubsidiary,the

transferorMaterialSubsidiaryshalimediatelyceasetobeaMaterialSubsidiaryand

(i)thetransfereSubsidiaryshalimediatelybecomeaMaterialSubsidiary,

providedthatonorafterthedateonwhichtherelevantfinancialstatementsforthe

financialperiodcurentathedateofsuchtransferarepublished,whethersuch

transferorSubsidiaryorsuchtransfereSubsidiaryisorisnotaMaterialSubsidiary

shalbedeterminedpursuantotheprovisionsofsub-paragraph(A)above.

AcertificatesignedbyanauthorisedsignatoryoftheIsuerthatinhis/heropinion(making

suchadjustments(ifany)ashe/sheshaldemapropriate)aSubsidiaryisorisnotorwas

orwasnotatanyparticulartimeorduringanyparticularperiodaMaterialSubsidiary

shal,intheabsenceofmanifesteror,beconclusiveandbindingontheIsuerandthe

Noteholders.

“PublicExternalIndebtednes”meansanyindebtednesoftheBank(or,forthepurposes

ofCondition10,anySubsidiary),oranyguaranteorindemnitybytheBankof

indebtednes,formoneyborowedwhich(i)isintheformoforepresentedbyanybond,

note,debenture,debenturestock,loanstock,certificateorotherinstrumentwhichis,oris

capableofbeing,listed,quotedortradedonanystockexchangeorinanysecuritiesmarket

(including,withoutlimitation,anyover-the-countermarket)outsidethePRC(without

regard,however,towhetherornotsuchinstrumentsaresoldthroughpublicoferingsor

privateplacement)and(i)hasanoriginalmaturityinexcesof365days.

“Reorganisation”meansanyreconstruction,amalgamation,reorganisation,mergeror

consolidation.

“Subsidiary”means,inrelationtoanyPerson(the“firstPerson”)atanyparticulartime,

anyotherPerson(the“secondPerson”):

(a)whoseafairsandpoliciesthefirstPersoncontrolsorhasthepowertocontrol,

whetherbyownershipofsharecapital,contract,thepowertoapointoremove

membersofthegoverningbodyofthesecondPersonorotherwise;or

(b)whosefinancialstatementsare,inacordancewithaplicablelawandgeneraly

aceptedacountingprinciples,consolidatedwiththoseofthefirstPerson.

11.METINGSOFNOTEHOLDERS,MODIFICATIONANDWAIVER

(a)MetingsofNoteholders:TheFiscalAgencyAgrementcontainsprovisionsfor

conveningmetingsofNoteholders(includingbywayofconferencecalorbyuseof

avideoconferenceplatform)toconsideranymaterafectingtheirinterests,including

thesanctioningbyExtraordinaryResolutionofamodificationofanyofthese

Conditions.SuchametingmaybeconvenedbyNoteholdersholdingnotlesthan10

percent.inominalamountoftheNotesforthetimebeingoutstanding.Thequorum

foranymetingconvenedtoconsideranExtraordinaryResolutionshalbetwor

morepersonsholdingorepresentingmorethan50percent.inominalamountofthe

Notesforthetimebeingoutstanding,oratanyadjournedmetingtwormore

personsbeingorepresentingNoteholderswhateverthenominalamountoftheNotes

heldorepresented,unlesthebusinesofsuchmetingincludesconsiderationof

proposals,interalia,(i)toamendthedatesofmaturityoredemptionoftheNotes,

anyInstalmentDateoranydateforpaymentofinterestorInterestAmountsonthe

Notes,(i)toreduceorcancelthenominalamountof,oranyInstalmentAmountof,or

anypremiumpayableonredemptionof,theNotes,(i)toreducetherateoratesof

interestinrespectoftheNotesortovarythemethodorbasisofcalculatingtherate

oratesoramountofinterestorthebasisforcalculatinganyInterestAmountin

respectoftheNotes,(iv)ifaMinimumand/orMaximumRateofInterest,Instalment

AmountorRedemptionAmountishownhereon,toreduceanysuchMinimumand/or

MaximumRateofInterest,InstalmentAmountorRedemptionAmount,(v)tovaryany

methodof,orbasisfor,calculatingtheFinalRedemptionAmount,theEarly

RedemptionAmountortheOptionalRedemptionAmount,includingthemethodof

calculatingtheAmortisedFaceAmount,(vi)tovarythecurencyorcurenciesof

paymentordenominationoftheNotes,or(vi)tomodifytheprovisionsconcerning

thequorumrequiredatanymetingofNoteholdersorthemajorityrequiredtopasan

ExtraordinaryResolution,inwhichcasethenecesaryquorumshalbetwormore

personsholdingorepresentingnotlesthanthre-quarters,oratanyadjourned

metingnotlesthanone-quarterofthenominalamountoftheNotesforthetime

beingoutstanding.AnyExtraordinaryResolutiondulypasedshalbebindingon

Noteholders(whetherornotheywerepresentathemetingatwhichsuchresolution

waspased)andonalCouponholders.

TheFiscalAgencyAgrementprovidesthataresolutioninwritingsignedbyoron

behalfoftheNoteholdersofnotlesthan75percent.inominalamountoftheNotes

outstandingorpasedbyElectronicConsent(asdefinedintheFiscalAgency

Agrement)shalforalpurposesbeasvalidandefectiveasanExtraordinary

ResolutionpasedatametingofNoteholdersdulyconvenedandheld.Sucha

resolutioninwritingmaybecontainedinonedocumentorseveraldocumentsinthe

sameform,eachsignedbyoronbehalfofoneormoreNoteholders.

TheseConditionsmaybeamended,modifiedorvariedinrelationtoanySeriesof

NotesbythetermsoftherelevantPricingSuplementinrelationtosuchSeries.

(b)Modification:NotwithstandingCondition11(a)above,theNotes,theseConditions

andtheDedofCovenantmaybeamendedwithoutheconsentoftheNoteholdersto

corectamanifesteror.Inadition,thepartiestotheFiscalAgencyAgrementmay

agretomodifyanyprovisionthereof,butheBankshalnotagre,withouthe

consentoftheNoteholders,toanysuchmodificationunlesitisofaformal,minoror

technicalnature,itismadetocorectamanifesterorortocomplywithmandatory

provisionsofthelaw.AnysuchmodificationshalbebindingontheNoteholdersand

suchmodificationshalbenotifiedtotheNoteholdersbytheBankasonas

practicablethereafterinacordancewithCondition14.

12.REPLACEMENTOFNOTES,CERTIFICATES,RECEIPTS,COUPONSAND

TALONS

IfaNote,Certificate,Receipt,CouponorTalonislost,stolen,mutilated,defacedor

destroyed,itmaybereplaced,subjectoaplicablelaws,regulationsandstockexchangeor

otherelevantauthorityregulations,athespecifiedoficeoftheFiscalAgent(inthecase

ofBearerNotes,Receipts,CouponsorTalons)andtheRegistrar(inthecaseof

Certificates)orsuchotherPayingAgentorTransferAgent,asthecasemaybe,asmay

fromtimetotimebedesignatedbytheIsuerforthatpurposeandnoticeofwhose

designationisgiventoNoteholders,ineachcaseonpaymentbytheclaimantofthefes

andcostsincuredinconectiontherewithandonsuchtermsastoevidence,securityand

indemnity(whichmayprovide,interalia,thatifthealegedlylost,stolenordestroyed

Note,Certificate,Receipt,CouponorTalonisubsequentlypresentedforpaymentor,as

thecasemaybe,forexchangeforfurtherCoupons,thereshalbepaidtotheIsueron

demandtheamountpayablebytheIsuerinrespectofsuchNotes,Certificates,Receipts,

CouponsorfurtherCoupons)andotherwiseastheIsuermayrequire.Mutilatedordefaced

Notes,Certificates,Receipts,CouponsorTalonsmustbesurenderedbeforereplacements

wilbeisued.

13.FURTHERISUES

TheIsuermayfromtimetotimewithoutheconsentoftheNoteholdersorCouponholders

createandisuefurthersecuritieshavingthesametermsandconditionsastheNotes

(exceptforthefirstpaymentofinterestandifaplicable,thetimingfornotificationtothe

NDRC,PBOC,NFRAand/orSAFEandsavethatfortheavoidanceofdoubt,referencesin

theseConditionsto“IsueDate”shalbethefirstisuedateoftheNotes)andsothathe

sameshalbeconsolidatedandformasingleserieswithsuchNotes,andreferencesin

theseConditionsto“Notes”shalbeconstruedacordingly.

14.NOTICES

NoticestotheNoteholderswilbe(i)(inthecaseofholdersofRegisteredNotes)sento

thembyfirstclasmail(oritsequivalent)or(ifpostedtoanoverseasadres)byairmail

atheirespectiveadresesontheRegister,andbedemedtohavebengivenonthe

fourthdayafterthedateofmailing,or(i)(inthecaseofholdersofBearerNotes)

publishedinEnglishintheSouthChinaMorningPostandinChineseintheHongKong

EconomicJournal.Ifatanytimepublicationinsuchnewspapersisnotpracticable,notices

wilbevalidifpublishedinanEnglishand/orChineselanguagenewspaper,asthecase

maybe,withgeneralcirculationinHongKong.Anysuchnoticewilbedemedtohave

bengivenonthedateofsuchpublicationor,ifpublishedmorethanonceondiferent

dates,onthefirstdateonwhichpublicationismade.

Couponholdershalbedemedforalpurposestohavenoticeofthecontentsofany

noticegiventotheholdersofBearerNotesinacordancewiththisCondition14.

SolongastheNotesarerepresentedbyaGlobalNoteoraGlobalCertificateandsuch

GlobalNoteorGlobalCertificateisheldonbehalfof(i)EuroclearorClearstreamorany

otherclearingsystem(exceptasprovidedin(i)below),noticestotheholdersofNotesof

thatSeriesmaybegivenbydeliveryoftherelevantnoticetothatclearingsystemfor

comunicationbyitoentitledacountholdersinsubstitutionforpublicationasrequired

bytheConditionsorbydeliveryoftherelevantnoticetotheholderoftheGlobalNoteor

(i)theCMU,noticestotheholdersofNotesofthatSeriesmaybegivenbydeliveryofthe

relevantnoticetothepersonshowninaCMUInstrumentPositionReportisuedbythe

CMUonthesecondbusinesdayprecedingthedateofdespatchofsuchnoticeasholding

interestsintherelevantGlobalNoteorGlobalCertificate.

15.CONTRACTS(RIGHTSOFTHIRDPARTIES)ACT1999

NopersonshalhaveanyrightoenforceanytermorconditionoftheNotesunderthe

Contracts(RightsofThirdParties)Act1999.

16.CURENCYINDEMNITY

Anyamountreceivedorecoveredinacurencyotherthanthecurencyinwhichpayment

undertherelevantNote,CouponorReceiptisdue(whetherasaresultof,orofthe

enforcementof,ajudgmentororderofacourtofanyjurisdiction,intheinsolvency,

winding-upordisolutionoftheIsuerorotherwise)byanyNoteholderorCouponholder

inrespectofanysumexpresedtobeduetoitfromtheIsuershalonlyconstitutea

dischargetotheIsuer,asthecasemaybe,tothextentoftheamountinthecurencyof

paymentundertherelevantNote,CouponorReceipthatherecipientisabletopurchase

withtheamountsoreceivedorecoveredinthatothercurencyonthedateofthatreceipt

orecovery(or,ifitisnotpracticabletomakethatpurchaseonthatdate,onthefirstdate

onwhichitispracticabletodoso).Iftheamountreceivedorecoveredislesthanthe

amountexpresedtobeduetotherecipientunderanyNote,CouponorReceipt,theIsuer

shalindemnifyitagainstanylosustainedbyitasaresult.Inanyevent,theIsuershal

indemnifytherecipientagainsthecostofmakinganysuchpurchase.Forthepurposesof

thisCondition16,itshalbesuficientfortheNoteholderorCouponholder,asthecase

maybe,todemonstratethatitwouldhavesuferedaloshadanactualpurchaseben

made.TheseindemnitiesconstituteaseparateandindependentobligationfromtheIsuer’s

otherobligations,shalgiverisetoaseparateandindependentcauseofaction,shalaply

irespectiveofanyindulgencegrantedbyanyNoteholderorCouponholderandshal

continueinfulforceandefectdespiteanyotherjudgment,order,claimorprofora

liquidatedamountinrespectofanysumdueunderanyNote,CouponorReceiptorany

otherjudgmentororder.

17.GOVERNINGLAWANDJURISDICTION

(a)GoverningLaw:TheNotes,theReceipts,theCouponsandtheTalonsandany

non-contractualobligationsarisingoutoforinconectionwiththemaregovernedby,

andshalbeconstruedinacordancewith,Englishlaw.

(b)Jurisdiction:ThecourtsofHongKongaretohavexclusivejurisdictiontosetleany

disputes,claims,diferencesorcontroversythatmayariseoutof,inrelationtorin

conectionwithanyNotes(andtheConditions),Receipts,CouponsorTalons,

includinganydisputeastoitsexistence,validity,interpretation,performance,breach

orterminationortheconsequencesofitsnulityandanydisputerelatingtoany

non-contractualobligationsarisingoutoforinconectionwithit(a“Dispute”)and

acordinglyanylegalactionorprocedingsarisingoutoforinconectionwithany

Notes(andtheConditions),Receipts,CouponsorTalonsandanynon-contractual

obligationsarisingoutoforinconectionwiththem(the“Procedings”)maybe

broughtinsuchcourts.TheIsuerirevocablysubmitstothexclusivejurisdictionof

thecourtsofHongKongandwaivesanyobjectiontotheProcedingsinsuchcourts

onthegroundofvenueoronthegroundthatheProcedingshavebenbroughtinan

inconvenientforumtosetleanyDispute.

(c)ServiceofProces:TheIsuerirevocablyagrestoreceiveserviceofprocesathe

placeofbusinesoftheBankinHongKongregisteredinacordancewiththe

CompaniesOrdinance(Cap.622)ofHongKongat5/F,ManulifePlace,348Kwun

TongRoad,Kowlon,HongKonginanyProcedingsinHongKong.Suchservice

shalbedemedcompletedondeliverytosuchadres(whetherornotactualy

receivedbytheBank).IfduetoanyreasontheBankshalceasetohaveaplaceof

businesinHongKong,theIsuerirevocablyagrestoapointasubstituteproces

agentandshalimediatelynotifytheNoteholdersofsuchapointment.Nothingshal

afectherightoserveprocesinanymanerpermitedbylaw.

(d)WaiverofImunity:EachoftheIsuerandtheBankfurtherhasirevocablyagres

thatnoimunity(tothextenthatitmaynoworhereafterexist,whetheronthe

groundsofsovereigntyorotherwise)fromanyProcedingsorfromexecutionof

judgmentshalbeclaimedbyoronbehalfofitorwithrespectoitsasets,anysuch

imunitybeingirevocablywaivedbytheIsuerortheBank,andeachoftheIsuer

andtheBankirevocablyconsentsgeneralyinrespectofanysuchProcedingstothe

givingofanyreliefortheisueofanyprocesinconectionwithanysuch

Procedingsincluding,withoutlimitation,themaking,enforcementorexecution

againstanypropertywhatsoeverofanyorderorjudgmentwhichmaybemadeor

giveninsuchProcedings.

CAPITALISATIONANDINDEBTEDNES

ThefolowingtablesetsforththecapitalisationandindebtednesoftheGroupasat31

December2024.Thefolowingtableshouldbereadinconjunctionwith“SumaryFinancial

Information”andtheGroup’sconsolidatedfinancialstatementsandrelatednotesincluded

elsewhereinthisOferingCircular.

Asat31December2024

(RMBinmilions)(U.S.$inmilions)

(1)

Debtsecuritiesisued

Long-termdebtsecuritiesisued

207,45428,421

Subordinatedbondsisued

73,62010,086

Certificatesofdepositisued

1,460200

Certificatesofinterbankdepositisued

930,954127,540

Convertiblecorporatebonds

7,034964

Acruedinterest

3,516482

Totaldebtsecuritiesisued

1,224,038167,693

Equity

Sharecapital

54,3977,452

Otherequityinstruments

105,49914,453

Capitalreserve

89,28612,232

Othercomprehensiveincome

16,8622,310

Surplusreserve

67,6299,265

Generalreserve

111,72315,306

Retainedearnings

343,86847,110

Totalequityatributabletoequityholders

oftheBank

789,264108,128

Non-controlinginterests

18,1012,480

TotalEquity

807,365110,608

TotalCapitalisation

(2)

2,031,403278,301

Notes:

1U.S.dolartranslationsareprovidedforindicativepurposesonlyandareunaudited.Thesetranslationswere

calculatedbasedonexchangerateofRMB7.2993toU.S.$1.00on31December2024asetforthintheH.10

statisticalreleaseoftheFederalReserveBoard.

2TotalcapitalisationcomprisestotaldebtsecuritiesisuedandtotalequityoftheGroup.

SaveasdisclosedinthisOferingCircular,therehasbenomaterialadversechangeinthe

capitalisationoftheGroupsince31December2024.

DESCRIPTIONOFTHEBANK

OVERVIEW

TheBank’slegalnameis中信银行股份有限公司andtheBank’scomercialnameisChina

CITICBank中信银行.TheBankisajointstockcompanyincorporatedinthePRCwithlimited

liabilityanditsunifiedsocialcreditidentifieris91110000101690725E.TheBankwas

incorporatedin1987andoperatesundertheCompanyLawofthePRCandotheraplicable

laws.TheBank’sregisteredoficeisat6–30/Fand32–42/F,BuildingNo.1,10GuanghuaRoad,

ChaoyangDistrict,Beijing100020,PRCandthetelephonenumberofitsregisteredoficeis

+86-10-66638188.ThebusinesadresofthemembersoftheboardofdirectorsoftheBankis

6–30/Fand32–42/F,BuildingNo.1,10GuanghuaRoad,ChaoyangDistrict,Beijing100020,

PRC.

TheBankisoneofthearliestemergingcomercialbanksestablisheduringChina’sreform

andopening-upandalsoChina’sfirstcomercialbankparticipatinginfinancingatboth

domesticandinternationalfinancialmarkets.InApril2007,theBanksimultaneouslylisteditsA

andHsharesatheShanghaiStockExchangeandHongKongStockExchange.In2024,Brand

FinanceoftheUnitedKingdomratedtheBankthe19thonitslistofthe“Top500Banking

Brands”,andTheBankermagazineoftheUnitedKingdomratedtheBankthe18thonitslistof

the“Top1,000WorldBanks”intermsoftier-onecapital.

TheBankofersful-rangeservicestocorporate,institutional,inter-bankmarketandindividual

customers.Forcorporatecustomers,institutionalcustomersandinter-bankmarketcustomers,the

Bankofersintegratedfinancialsolutionsincorporatebankingbusines,internationalbusines,

financialmarketbusines,institutionalbankingbusines,investmentbankingbusines,

transactionbankingbusinesandcustodybusines.Forindividualcustomers,theBankprovides

diversifiedfinancialproductsandservicesrelatedtowealthmanagement,privatebanking,

personalcredit,creditcards,pensionfinanceandgoingabroadfinance.

Geographicaly,theBankisincorporatedinthePRCwheresubstantialyalofitsoperationsare

located.Asat31December2024,theBankhad1,470outletsin153largeandmedium-sized

citiesinChinandsevenafiliates,namelyCIFH,CNCBInvestment,CITICFinancialLeasing,

CITICWealthManagement,CITICaiBank,JSCAltynBankandLin’anCITICRuralBank,

where:

(cid:129)CNCBI,asubsidiaryofCIFH,recorded31outletsandtwobusineswealthmanagement

centresinHongKong,Macau,NewYork,LosAngeles,SingaporeandtheChinese

mainland;

(cid:129)CNCBInvestmenthadthresubsidiariesinHongKongandtheChinesemainland;

(cid:129)CITICWealthManagementisthewholy-ownedwealthmanagementsubsidiaryofthe

Bank;

(cid:129)CITICaiBank,ajointventurecosponsoredbytheBankandBaidu,isthefirstindependent

legalentitypracticingdirectbankinginChina;and

(cid:129)JSCAltynBankhadsevenoutletsandoneprivatebankingcentreinKazakhstan.

Asat31December2024,theGrouphadRMB9,532.72bilionoftotalasets,RMB5,601.45

bilionofloansandadvancestocustomers,RMB5,864.31bilionofdepositsfromcustomers,

andRMB789.26bilionoftotalequityatributabletoequityholdersoftheBank.

CORPORATESTRUCTURE

ThefolowingdiagramsetsoutheownershipstructurebetwentheBank,itscontroling

shareholderanditsdefactocontrolerasat31December2024.

CITIC Group Corporation Limited

CITIC Polaris Limited

100%100%

100%

100%100%

100%

27.52%

0.52%

0.02%

65.69%

1.07%

25.60%

CITIC Limited

Metal Link LimitedCITIC Corporation Limited

CITIC Financial Holdings Co., Ltd.

Fortune Clas Investment Limited

CITIC Investment (HK) Limited

China CITIC Bank Corporation Limited

中信银行股份有限公司

CITIC Glory Limited

THEBANK’SCOMPETITIVESTRENGTHS

RelyingonthecomprehensiveresourcesofCITICGroupintermsof“Finance+Real

Economy”,theBankhasavisiontobecomeabankwith“FourFeatures”,namelyaresponsible,

uniqueandvaluableproviderofthebestcomprehensivefinancialserviceswithahumantouch

andoneoftheworld’sfirst-clasbanks.

ImportantplayerinthePRCbankingsystemwithstrongbrandinfluence.

Establishedin1987,theBankisoneofthearliestPRCcomercialbankstoparticipateinthe

overseasfinancialmarkets,contributingtotheconomicdevelopmentofthePRC.TheBank’s

scaleofbusinesanduniquestatusconsolidateditsignificanceandimportanceinthePRC

bankingsystem,positioningtheBanktoplayanintegralandstrategicroleinthePRCbanking

system.Asat31December2024,theGrouphadtotalasetsofaproximatelyRMB9,532.72

bilionandemployedaproximately65,466employesacrositsnetwork.

Withtheprovisionofafulrangeofinancialproductsandhigh-qualitycustomerservice,the

Bankenjoyedhighreputationandextensiveinfluenceinbothdomesticandoverseasmarkets.In

2024,theBankwasranked19thamongthe“Top500BankingBrands”byTheBankermagazine,

demonstratingtheBank’sleadingpositionamongcomercialbanksinthePRCandranked18th

onitslistofthe“Top1,000WorldBanks”intermsoftier-onecapital.

SynergieswithintheGroupandwithCITICGroup.

GivingintofulplaytheGroup’sadvantagesof“alfinancialicensesandwidecoverageof

industries”andfolowingthedevelopmentprincipleof“OneCITIC,OneCustomer”,theBank

delvedintothesixmajorareasofcordination,namely,financecordination,industryand

financecordination,thinktankcordination,cros-sectioncordination,parentcompanyand

subsidiarycordination,cros-branchcoperation,builteightmajorservicescenariosof

cordinatedservices,i.e.,technologyfinance,grenfinance,inclusivefinance,pensionfinance,

digitalfinance,governmentfinance,capitalmarketsandriskresolution,andhenceproviding

customerswithone-stop,customised,multi-scenarioandful-lifecycleprofesionalservices,

safeguardingthesteadydevelopmentoftherealeconomy.

CITICGroup,theBank’scontrolingshareholder,isaleadingstate-ownedmulti-national

conglomerateinthePRCengagedinawiderangeofinancialservices,includinginvestment

banking,trust,fundmanagement,insuranceandfutures.TheBank,aspartofCITICGroup,

frequentlyco-operateswithotherentitieswithinCITICGroupthroughclientresourcesharing,

jointmarketingefortsandcros-selingofservices,givingfulplaytoCITICGroup’sunique

advantagesin“Finance+theRealEconomy”.

IntermsofsynergywithothersubsidiariesofCITICGroup,theBankcoperateswithfinancial

subsidiarieswithinCITICGroupsuchasCITICSecurities,ChinaSecurities,CITICTrust,CITIC

PrudentialLifeandCITICAMCinsectorsincludingbondunderwriting,wealthmanagement,

anuitybusinesandasetrevitalisation.Italsopropeledindustryandfinancingsynergistic

colaborationandstrengthenedcolaborationwithnon-financialsubsidiarieswithinCITICGroup

suchasCITICPacificProperties,CITICPresCorporationandCITICAgricultureLimitedin

areasincludingadvancingthedevelopmentofnewurbanisation,developingagreatcountryin

termsofculture,andensuringnationalfodsecuritywithexpandedsynergisticservice

scenarios.Itempoweredthedevelopmentofbusinesoperationinmultipledimensions,launched

theComprehensivePlanonCITICSynergisticServiceforLocalEconomytogetherwithChina

InternationalEconomicConsultants.Furthermore,itcoperatedwithsubsidiarieswithinCITIC

Grouptorganiseaseriesofeventsthemedonsynergisticempowerment,andimplementeda

batchofqualitysynergyprojects,thusachievingnewresultsinprovidingsynergisticservices

fortherealeconomy.

Extensivenationwidebranchoutletnetworkcomplementedbyamulti-chaneldigital

bankingsystem.

TheBankhasanationwidebranchnetworkinthePRC.Asat31December2024,theBankhad

1,470outletsin153largeandmedium-sizedcitiesinthePRC,including37tier-onebranches

whicharedirectlymanagedbyitsheadofice(the“HeadOfice”),125tier-twobranches,and

1,308sub-branches,including30comunity,smalandmicrosub-branches.Itmaintainsa

strongpresenceandextensivenetworkineconomicalydevelopedareas.Suchextensivenetwork

enablestheBanktodiversifyrisksandminimisepotentialadverseinfluenceofregional

economicriskontheoveralbusinesoftheBank.

Intermsofofshoreoutlets,inaditiontotheBank’sLondonBranchandHongKongBranch,as

at31December2024,CIFH,anafiliateoftheBank,had31outletsand2busineswealth

managementcentresinHongKongSAR,Macau,NewYorkCity,LosAngeles,Singaporeand

thePRC.Asat31December2024,JSCAltynBank,asubsidiaryoftheBank,hadsevenoutlets

andoneprivatebankingcentreinKazakhstan.

Tocomplementandextenditsnationwidebranchnetwork,theBankoperatesamulti-chanel

electronicbankingtransactionsystem.Asat31December2024,theBankhad1,509self-service

banks,4,456self-serviceterminals,and9,593smartelermachines.

Inrecentyears,theBankspedupdigitaltransformation,andcontinuedtoactivatenewdigital

bankingsystems:

(cid:129)retailbusinesdigitalisation:in2023theBank’sretailM+platformlaunchedsuporting

tolsuchastratifiedcustomermanagement,concentratedpersonaloanmanagement,

stratifiedcustomerasetalocationandinvestmentconsultingservices,andsetledover

RMB1trilionproductransactionviaorders,thustronglyunderpiningcomprehensive

customermanagement.TheBankbuiltanadvancedenterprise-levelmarketingcentre

amongpers,formingamultilateralandopenmarketingecosystemwithinternaland

externalcolaboration,suportingover160,000activitiesandreachingover2bilion

person-times.In2024,theBankbuiltacustomer-centricdigitalcustomerinsightsystemfor

retailbusines,setuptheretailexpensemanagementplatformand“onehorizontal”

platformforunifiedoperationstrategies.Theaveragemonthlycustomercontactvolume

exceded300milionpersontimes;

(cid:129)corporatebusinesdigitalisation:in2024,theBankpromotedthefirstself-developed

“Tianyuantreasurysystem”intheindustry,iteratedandupgradedthestandardversionand

roledouthecosystemversionoferingcustomersdiversifiedtreasurymanagement

solutionsthatareprofesionalandcustomised,andbuiltaone-stopandinteligentglobal

treasurymanagementsystemforcentralenterprisesandlargestate-ownedenterprises.It

comprehensivelyimprovedwhole-procesonlinexperienceofautofinancewitha

replacementrateofautomaticloangrantingreaching85percent.,reducingriskprewarning

manualhandlingofrontlinemployesby60percent.TheBankalsotoksolidstepsto

propeldigitaltransformationofinclusivefinance,established“creditfactory”andenhanced

thequalityandeficiencyofproductR&Dby8times.Onlineproductsuchas“Credit

Guarante”significantlyreducedtheperiodofisuinguarantefrom4daysto10minutes

byusingautomaticreditverification,thusdramaticalyimprovingproducteficiencyand

customerexperience.In2024,relyingondigitalandinteligentechnologies,theBank’s

corporatebusinesdevelopedthe“SmartOnlineBanking5.0”platform,launchedthe

industry-leading,independentlydeveloped“TianyuanTreasury”system(StandardVersion

2.0)andthenewversionofthepopularproduct“EasySalary”,andbuiltheproduct

servicecosystemfeaturing“trading+setlement”,“financing+inteligence”,toprovide

corporatecustomerswithcomprehensivesolutionswhichare“beyondfinance”;and

(cid:129)financialmarketbusinesdigitalisation:theBankadherestointegratedbusines

managementforinterbankcustomers.Thenewgenerationof“Interbank+”platformwas

equipedwiththrefunctionpilars,namely“primeshop”,“market-makingtradingcloud

hal”and“inteligentandigitalcomunicationplatform”.Theplatformcoveredaltypes

ofinterbankcustomers.TheBankbecamethefirstintheindustrytorealiseAP

transactionsandestablishedacros-marketinteligentransactionplatformandwasthefirst

amongpersinrealisingtheautomationofcentralisedtransaction,thusignificantly

enhancingtheautomationandinteligenceofquotationtrading.

LeadingpositioninthecorporatebankingbusinesamongcomercialbanksinthePRC.

TheBankhasaleadingpositioninthecorporatebankingbusinesamongcomercialbanksin

thePRC.Fortheyearsended31December2022,2023and2024,theGroup’soperatingincome

fromitscorporatebankingbusineswasRMB94.44bilion,RMB91.56bilionandRMB95.25

bilion,respectively,acountingfor44.73percent.,44.54percent.and44.67percent.ofits

totaloperatingincome,respectively.TheBankhasachievedasteadygrowthincorporatedeposit

balancesinrecentyears.Fortheyearsended31December2022,2023and2024,theaverage

balanceoftheGroup’scorporatedepositwas,RMB3,924.77bilion,RMB4,051.31bilionand

RMB3,971.29bilion,respectively.Asat31December2024,theBankhadaproximately

1,266,600corporatecustomers.Corporateloanshavehistoricalybenthelargestcomponentof

theBank’sloanportfolio;asat31December2024,theGrouprecordedatotalcorporateloan

balanceofRMB2,908.11bilion,anincreaseof7.8percent.comparedtothebalanceasat31

December2023.TheBank’swel-establishedcustomerbasereinforcesitsleadingpositionin

corporatebankingbusinesamongnationaljointstockcomercialbanksinthePRC.

Al-roundedandbalancedgrowth,includingrapidgrowthandinovativedevelopmentin

retailbankingbusines.

Theinterplaybetwenretailbankingandcorporatebankingplaysaremarkableroleincustomer

acquisitionfortheBank.RetailbankingisoneoftheprincipalbusinesactivitiesoftheBankin

thePRC.Fortheyearsended31December2022,2023and2024,theGroup’soperatingincome

fromitsretailbankingbusineswasRMB84.68bilion,RMB86.43bilionandRMB85.69

bilion,respectively,acountingfor40.11percent.,42.04percent.and40.19percent.ofits

totaloperatingincome,respectively.

Upholdingthe“people-centric”philosophy,theBankadherestothecustomer-orientatedand

value-orientatedaproach,continuouslybuilds“newretail”withwealthmanagementatitscore,

comprehensivelydepenscustomerelationshiptobecomecustomers’firstchoiceofwealth

managementbankasanexpertat“setlement,investment,financing,activitiesandservices”

(“fivexpertise”),withthesuitabilityfor“alcustomers–alproducts–alchanels”asthe

operationstrategy,fourlinksof“sectorintegration,bank-widecolaboration,intra-Group

cordinationandexternalconection”asthedevelopmentpathandtwowingsof“digitalisation

andecologicalisation”asthecapabilitysuport.Thescalesofwealthmanagement,aset

managementandcomprehensivefinancingrealisedrapidgrowthinrecenthreyears.In2024,

theretailasetsundermanagement(AUM)(includingasetsmeasuredatfairvalue)

stodat

RMB4.69trilionandthemonthlyaveragedailybalanceoftheprivatebankingAUMstodat

RMB1.17trilionlevel.

TheBankalsopersistsintheinovationofretailbankingproductsandmodels.Formas

customers,itprovided“acompanying”servicethroughthecolaborationof“remote+AP+

AI”.ForwealthyandVIPcustomers,itestablishedoperationsystemandfulyputinplace

stratifiedoperation.Forprivatebankingcustomers,itrefinedlifecycleservicesystemand

continuedtoimproveprofesionalservicecapability.Inadition,itfurtherimproved

diferentiatedservicesforkeycustomergroups,exploredGenerationZyoungcustomer

management,andcomprehensivelyupgraded“Hapines+”agingfinancialservicesystem.In

termsofproducts,itfosteredinteligentconsultingservicecapabilitydrivenbyinvestmentand

researchaswelasleadingretailtradingsetlementcapability,launchedlifecyclewealth

managementservicesbasedon“threphasesandfoursteps”(wherethrephasesreferto

GenerationZ,MidleAgeandSliverAge,andfourstepsrefertobalancingtheboks,

preventingrisks,planingpensionandlong-terminvestment).Itrefinedal-categoryproduct

system,elevateditsoveralproductalocationcapabilities,andtokinovativewaystoutilise

balanceshetols.Itenrichedandrefineditsproductecosystemfeaturingalstrategiesandal

categoriesforprivatebankingandmethigh-net-worthcustomers’demandsforal-category

productalocation.Forpersonaloancustomers,theBankimprovedmainproductfunctions

includingmortgageofpropertyandunsecuredloanandebutedstandardisedloanproductson

onlineplatforms.Intermsofchanels,theBankimprovedal-chanelcolaboratedmarketing

capabilityandserviceficiencyandfosteredigitalmanagementcapabilityforalcustomers.

Focusingoncustomerexperience,theBankgainedinsightintocustomerdemandsthrough

digitalaproachandprovidedthemwithsuitableproductsandservices.ItlaunchedMobile

Banking10.0andMobileCardSpace10.0,releasingthecapacityofonlineoperationandremote

chanelatafasterpace,andupgradedoflineoutletservicesystemsimultaneously.

Vigorousexplorationsandinovations.

AsChina’sfirstcomercialbankparticipatinginfinancingatbothdomesticandinternational

financialmarkets,theBankisrenownedathomeandabroadforbreakingnumeroustrack

recordsinthemodernChinesefinancialhistory.Ithasthegenesofinovationandrivesits

developmenthroughinovationaswel.TheBankhascariedforwardtheCITICstyleof

explorationandinovationandbostedinovationinproductsandservicesandgainedunique

competitiveadvantagesinbusinesesuchasinvestmentbanking,cros-borderbusines,

transactionbanking,autofinance,wealthmanagement,goingabroadfinance,pensionfinance,

creditcard,andforexmarketmaking.

includingtheretailcustomers’asetsundermanagementoftheBank’subsidiaries

Inparticular,theBankadheredtoreformandinovationandaceleratedtheimprovementof

corebusinescapabilitiesuchaswealthmanagement,asetmanagementandcomprehensive

financing,soastobuildstrongbusinescapabilitiesadaptabletothenewdevelopmentpatern.

Thescalesofwealthmanagement,asetmanagementandcomprehensivefinancingrealisedrapid

growthinrecenthreyears.In2024,theretailasetsundermanagement(AUM)stodat

RMB4.69trilion,themonthlyaveragedailybalanceoftheprivatebankingAUMstodat

RMB1.17trilionlevel,andthecontributionofretailbankingtonetoperatingincomereached

40.94percent.TheBank’sal-roundasetmanagementbusinesystemwasincentivised,the

scaleofwealthmanagementsalestayedintheforefrontoftheindustry,andtheBankiswel

recognisedinthemarketforitsvaluecreationcapability.TheBank’sbondunderwritingbusines

maintainsatopositionintheindustry,andthescaleoful-yearinvestmentinthecapital

marketmanagedtogrowdespitethemarketdownturn.TheBanklaunchedthe“Tianyuan

treasurysystem”,thefirstself-developedtreasurymanagementsysteminthemarketandhas

gainedareputationasthefirstchoicetodevelopatreasurysystem.TheBankalsoachievedan

industry-leadingpositionbyestablishingacros-marketmarketmakingcentre,andtheRMB

forexmarketmakingvolumexcededU.S.$3.35trilion.

TheBankpersistsindevelopmenthroughscienceandtechnology.Inthefaceofdigitalisation,

theBankproactivelyimplementedtheforward-lokingstrategyofbuildingtheBank’strength

inscienceandtechnologyandinvestedunprecedentedlyintotechnologicaldevelopment.Asat

31December2024,theBank’stechnologypersonelgrewto5,832.TheBanktoktheleadin

buildingindependentandmanageablecorebusinesystemsinanal-roundway,andal

aplicationserversandatabaseserversofcorebusinesystemswerereplacedwithChina

chips,realisingashiftfromtechnology-suportotechnology-drivenmode.TheBankfolowed

thetrendofthetimestobuildadigitalecosystem,comprehensivelypromotedthedevelopment

of“DigitalCITIC”,andestablishedthedatainfrastructurefeaturing“onedatalakeandone

database”.Comparedwiththreyearsago,theBank’sdatastorageandcomputingcapacity

increasedbysixfolds,anditbecametheonlyjointstockbankthathaswontheFirstPrizeof

FinTechgrantedbythePBOCtwiceinthreyears.

Increasingnon-interestincomeinrecentyears.

TheBankgeneratesnon-interestincomethroughfeandcomisionincome,tradingains,

gainsfrominvestmentsecuritiesandhedgingains.Asteadyflowofnon-interestincomealows

theBanktodiversifyitsriskandenableitomaintainarelativelystablerevenuestreamin

timesofluctuatinginterestrates.Inrecentyears,theBanksteadilyincreaseditsnet

non-interestincomethroughthediversificationofitsbusines.Fortheyearsended31December

2022,2023and2024,theGroup’snetnon-interestincomewas,RMB60.46bilion,RMB62.03

bilionandRMB66.54bilion,respectively.

Scientificandefectiveriskmanagementandimprovedasetquality.

Inrecentyears,theBankhascomprehensivelyadvancedriskmanagementreform,and

continuouslybuildsariskmanagementsystemfeaturing“efectiveriskcontrolandvigorous

developmentpromotion”.TheBankpromotedthebank-wideriskmanagementobemore

specialised,inteligentandrefinedbyrestructuringtheunifiedcreditsystem,establishinga

close-loptransmisionsystemofriskapetite,advancingtheintegrationofriskmanagement

intothereform,andothermeasures.TheBankintensifiedefortstocontrolnewrisksand

resolveoldones,strenuouslypromotedriskresolutioninkeyareas,andstrengthened

managementofproblematicasets.TheBankadherestotargetedgovernanceandmadesolid

progresinthestablishmentof“fivesystems”,i.e.,compliancemanagementsystem,

rectificationsystem,internalcontrolevaluationsystem,extensivesupervisionsystem,and

moneylaunderingandsanctionsriskcontrolsystem,soastoprovideaprotectiveshieldfor

high-qualitydevelopment.Itstrengthenedefortsinthebuildingofthesmartriskcontrol

system,propeledthemulti-levelaplicationofdigitalriskcontroltols,andmaderisk

preventionandcontrolmoreforward-lokingandtargeted.Formoredetails,pleasereferto

“RiskManagement”.

TheasetqualityoftheBankhasremainedoveralstableinrecentyears.Asat31December

2022,2023and2024,theNPLratioftheBankwas1.27percent.,1.18percent.and1.16per

cent.,respectivelyandthespecialmentionloanratioftheBankwas1.63percent.,1.57per

cent.and1.64percent.,respectively.Asat31December2022,2023and2024,theliquidity

coverageratioftheBankwas168.03percent.,167.48percent.and218.13percent.,

respectively,excedingtheminimumregulatorystandardof100percent.forcomercialbanks

requiredbyrelevantPRCBankingRegulatoryAuthority.Asat31December2022,2023and

2024,thenetstablefundingratioftheBankwas107.64percent.,108.59percent.and106.90

percent.,respectively.Formoredetails,pleasereferto“RiskManagement–On-goingCredit

MonitoringandLoanClasification”.

Anexperiencedmanagementeamwithaproventrackrecord,employingscientific

corporategovernanceandbusinesoperations.

TheseniormanagementeamoftheBankhasextensiveprofesionalexperienceinthePRC

bankingindustry.AlmembersoftheBank’smanagementeamhavein-depthknowledgeof

bankingoperationsandmanagement,thePRCmacroeconomicenvironment,andthePRC

bankingindustry.TheBank’sexperiencedmanagementeamhasdemonstratedatrackrecordof

sucesfulyimplementingaseriesoftransformationinitiatives,includingtheimprovementof

theBank’scorporategovernanceandriskmanagement.TheBankhasimproveditsoperations

andfinancialresultsundertheleadershipofitsmanagementeam.

ThechairpersonandexecutivedirectoroftheBank,Mr.FangHeying,hasmorethan30yearsof

experienceintheChinesebankingindustry.Mr.Fanghaservedasdeputygeneralmanagerof

CITICGroup,deputygeneralmanagerandmemberofthexecutivecomiteofCITIC

Limited,deputygeneralmanagerofCITICorporationLimitedsinceDecember2020,andasa

PartyComitememberofCITICGroupsinceNovember2020.Mr.Fangisconcurentlya

directorofCIFHandCNCBI.Mr.FangservedaspresidentoftheBankfromMarch2019to

April2023.Priortothat,Mr.FangwaspresidentoftheBank’sSuzhouBranch,presidentofthe

Bank’sHangzhouBranch,andheadoftheBank’sfinancialmarketsbusines,vicepresidentand

chiefinancialoficeroftheBank.

ThepresidentandexecutivedirectoroftheBank,Mr.LuWei,has25yearsofexperienceinthe

Chinesebankingindustry.FromOctober2022toFebruary2025,Mr.Lusucesivelyservedas

secretaryofthePartyComite,generalmanager,vicechairmanandchairmanofCITICTrust

Co.,Ltd.FromJanuary2017toOctober2022,hesucesivelyservedasBoardsecretary,Board

secretary(businesdirectorlevel),businesdirector,amemberofPartyComiteandvice

presidentoftheBank,andheconcurentlyheldthepositionsofdeputyheadofthepreparatory

teamforthestablishmentofHongKongBranch,generalmanageroftheAsetandLiability

DepartmentofHeadOfice,deputyheadofpreparatoryteamforthestablishmentoftheJSC

AltynBankandadirectorofJSCAltynBank,andsecretaryofthePartyComiteand

presidentofShenzhenBranchoftheBank.

TheBank’scorporategovernanceandbusinesoperationarescientific,eficientandefective.

TheBankadherestomarket-orientedoperationandconstantlyimprovesitscorporategovernance

andbusinesoperationsystemsandmechanisms.Theresultistheformationofanorganisational

structurecharacterisedbyeficientmanagementandprofesionaldivisionofduties.Acordingto

theprincipleofseparatingthefront,midleandbackofices,theBankestablishedamatrix

managementmodelwiththeHeadOficedepartmentsasthelinesandthebranchesand

sub-branchesasthearays.

THEBANK’STRATEGIES

Suportingbusinesesintherealeconomywithtargetedmeasures

TheBanksekstoupholditsoriginalaspirationofsuportingtherealeconomy.Focusingonthe

fiveprioritiesoftechnologyfinance,grenfinance,inclusivefinance,pensionfinanceand

digitalfinance,theBankwasdedicatedtoplayingitsroleasapropelerforeconomic

development.TheBankshouldereditsresponsibilitiesforservingtherealeconomyand

providingloanstokeyareasincludingrencredit,strategicemergingindustries,mediumand

long-termanufacturing,ruralrevitalisationandinclusivefinance,whichalmaintainedarapid

growth,outpacingtheaveragegrowthrateoftheBank’stotaloans.

Fulintegrationwithnationaldevelopmentstrategies

TheBankisfulysuportiveof,andintendstofulyalignitsownbusinestrategieswith,

nationaldevelopmentstrategies.Basedonlocalgeographicandbusinesfeatures,theBanksets

diferentbusinesgoals,suportandmanagementauthoritytolocalbranchesinaneforto

suportnationalinitiatives.Thetotaloanstonationalstrategickeyregionsuchasthe

Beijing-Tianjin-Hebeiregion,YangtzeRiverDelta,Guangdong-HongKong-MacauGreaterBay

Area,andChengdu-Chongqingregionacountedfornearly70percent.oftheBank’scorporate

loans.TheBankproactivelydisposedlocalgovernmentdebtrisks,helpedforestalandefuse

risksinkeyareas,suportingtherealeconomy.

Inadition,theBankconscientiouslyconsidersandplansitsworkinacordancewiththe

nationalplanofestablishinganewdevelopmentpaternandputsemphasisonfivemajor

sectors,namelytechnologicalfinance,grenfinance,inclusivefinance,pensionfinanceand

digitalfinance.Forexample,theBanksparednoefortoservethestrategyofbuildingChina’s

strengthinscienceandtechnology,andproactivelyworkedoutplansfornewbusinespaterns

ofenterpriseswithspecialised,sophisticatedtechniquesandunique,novelproducts.Asat31

December2024,theBank’sbalanceofloanstotechenterprisestodatRMB564.372bilion.

Goingforward,theBankaimstocontinuetodepenreformandinovation,strengthen

high-qualityfinancialservices,strivetorealisetheorganicintegrationofdevelopmentquality,

structure,scale,sped,eficiencyandsafety,andunswervinglyfolowthepathofinancial

developmentwithChinesecharacteristics.

Five-prongedleadingbankstrategy

Forthepurposeofcreatingafeaturedandiferentiatedfinancialservicemode,theGrouputs

forwarda“five-prongedleading”bankstrategy,namely,theleadingwealthmanagementbank,

theleadingcomprehensivefinancingbank,theleadingtradingsetlementbank,theleading

foreignexchangeservicebankandtheleadingdigitalbank:

(cid:129)leadingwealthmanagementbank:throughupgradingbusinesystemsforalcustomers,

productsandchanels,theBankstrivestobuildthrebrandsofasetmanagement,private

bankingandconsumerfinance,soastobeterhelpcustomersachievecros-termaset

alocationandsmothreturnscurve,andrealiseintergenerationalwealthtransfer;

(cid:129)leadingcomprehensivefinancingbank:leveragingCITICGroup’sadvantagesin

industry-financecolaborationandfinance-financecoperation,theBankplanstoestablish

anewcomprehensivefinancialservicecosystemtometcustomers’variousfinancing

nedsinafasterandprofesionalway;

(cid:129)leadingtransactionsetlementbank:theBankintendstobaseitselfontransaction

setlement,thefundamentalfunctionofcomercialbanks,andcustomers’coreneds,and

aspiretodevelopintothefirst-inquiredbank,firstcontactpoint,fundamentalchaneland

servicecentreforcustomers’transactionsetlement;

(cid:129)leadingforeignexchangeservicebank:earnestlyfolowingthenationalstrategyof

high-levelopeningup,theBankstrivestoestablishacomprehensivecros-borderfinancial

servicesystemcovering“Chinandoverseas,localandforeigncurencies,ofshoreand

onshore,investmentbankingandcomercialbanking”,andre-establishthestrengthof

globalfinancialservicesoftheBank;and

(cid:129)leadingdigitalbank:theBankintendstofurtherbringintoplayitsacumulatedscientific

andtechnologicalstrengths,andgainmoreprecisecustomerandindustryinsights,and

providesmartermatchingproductsandservices,andhigher-qualityservicesand

experience.

TheBankbelievesthathesefivestrategieswilcreatestrategicpropelersforitoforgeoveral

competitiveadvantages,andwilbevividpracticesofouradherencetothecustomer-centred

philosophy.

THEBANK’SKEYMILESTONESANDCORPORATEHISTORY

In1984,Mr.RongYiren,thechairmanofCITICGroupathetime,requestedaprovalfromthe

PRCgovernmentosetupabankwithinCITICGroup.InApril1985,thebankingdepartmentof

CITICGroupwasformedwiththeaprovalfromtheStateCouncilandthePBOC.

On20April1987,theBankwasformalyestablishedasaseparatelegalentityunderthename

“CITICIndustrialBank”throughrestructuringofthebankingdepartmentofCITICGroupwith

aprovalfromtheStateCouncilandthePBOCtoconductlicensedRMBandforeign-curency

bankingbusinesesaswelasotherelevantfinancialoperations.

On11February1998,CNCB(HongKong)CapitalLimitedwasestablishedunderthename

“AIMAsetManagementLimited”.ItsnamechangedtoRocksAsiaCapitalGroupLimitedon2

March2011,andtoitscurentnameon22September2015.

On2August2005,theBankchangeditsnamefrom“CITICIndustrialBank”to“ChinaCITIC

Bank”,whichreflecteditscomitmentotransformintoabankthatfocusesonbothpersonal

bankingandcorporatebankingbusineses.TheBankwasestablishedasajointstocklimited

companyon31December2006underthename“ChinaCITICBankCorporationLimited”.The

BankwasimultaneouslylistedontheHongKongStockExchangeandShanghaiStock

Exchangeon27April2007.

InMay2012,theBankestablishedLin’anCITICRuralBankwithprivatebackbonenterprises.

InNovember2014,theBankestablisheditsLondonrepresentativeofice.

InMarch2015,theBankestablishedCITICFinancialLeasingwitharegisteredcapitalofRMB4

bilion.

InDecember2016,theBankco-operatedwithBaiduInc.andestablishedCITICaiBank

(originalynamedCITICBaixinBankCorporationLimited),ajointstocklimitedcompany,the

firstaprovedirectbankintheformofanindependentlegalpersoninthePRC.

InNovember2016,theBankestablisheditsSydneyrepresentativeofice.

InNovember2017,theBankandFujianBaiduBoruiNetworkTechnologyCo.,Ltd.jointly

establishedCITICaiBank,anewtypeofinternetbankandthefirstdirectbankwithindependent

legalpersonstatus.TheBankheld65.70percent.ofthesharesinCITICaiBank.

InApril2018,theBankacquiredamajoritystakeinJSCAltynBankandbecamethefirst

Chinesebanktoacquirebankequityinthecountriesalongthe“BeltandRoad”.

InJune2019,theBankopenedtheLondonBranch,thefirstoverseasbranchdirectlymanaged

bytheHeadOfice.

InJuly2020,CITICWealthManagementwasoficialyestablishedwitharegisteredcapitalof

RMB5bilionandopenedforbusines.Itmainlyengagesinwealthmanagement-related

businesuchasisuanceofpublicandprivatewealthmanagementproducts,andwealth

managementconsultationandadvisory.

InJune2023,theBank’sHongKongBranchwasoficialygrantedthelicenseforoperation,

markingamajorsteptowardstheBank’sinternationalisation.

On27March2024,asaprovedbytheHongKongMonetaryAuthority,theHongKongBranch

oftheBankhasbenoficialyestablished.

HONOURSANDAWARDS

TheBankhasachievednumerousawardsandrecognitionsinrecentyears,including:

AwardsandrecognitionsAwardingorganisation

December

“IngenuityBrand”people.cn

“OutstandingBankwithPracticein

FivePrioritiesinFinance”

TheEconomicObserver

“BankforForexServicesofthe

Year”

JiemianNews

“AwardofGlobalInfluential

Brand”andthe“Outstanding

CaseforFivePrioritiesin

Finance”

ChinaInvestmentNetwork

The“enhancingqualityand

eficiencyinservingthereal

economy”caseoftheBank’s

corporatebusinesincludedin

the“InovativePracticeCase

RepositoryforBuildinga

FinancialPowerhouse”

people.cn

“LetersfromthePolarRegions”

integratedbrandactivity

recognisedasa“Demonstration

CaseforPublicRelations”

ChinaPublicRelationsAsociation

November

“SecondPrizeintheFinancial

TechnologyDevelopmentAward”

PBOCforthe“DataIntegration

ProjectBasedonPrivacy

Computing”,“TrustTechnology

Platform”,and“Integrated

Platform(BenTeng)Projectfor

WealthManagementProduct

ComprehensiveSalesand

ColaborativeOperation”

“ResponsibleBrand”byChina

Newswek,and“Demonstration

CaseofAutoFinancialServices

intheResearchof‘GoldEngine’

AutoIndustryCompetitivenes”

21stCenturyBusinesHerald

AwardsandrecognitionsAwardingorganisation

October

“China’sTop30ESGPioner

ListedCompaniesinFinancial

Industry(2024)”listand

“China’sTop50ESGPioner

ListedCompaniesin

Beijing-Tianjin-HebeiRegion

(2024)”list

CTVFinance

Top20ESGComprehensive

PerformanceforBanks

ChinaFinancialMedia

ESGFinancialAnualPrizeof

ClearWatersandGren

MountainsAward

CLS.cn

“Top20A-shareListedCompanies

inFinancialIndustryofESG

InformationDisclosure2024”

listand“Top100A-shareListed

CompaniesofESGInformation

Disclosure2024”list

SinoSecuritiesIndex

“OutstandingWealthManagement

Institution”and“Outstanding

WealthManagementSalesBank”

intheselectionofthe

“ExcelenceDemonstration

CasesofWealthManagementfor

China’sBankingIndustry”

ChinaFund

“Hapines+”pensionfinance

servicesystemnamedthe

“OutstandingPensionFinance

BrandofFinancialInstitutions”

Xinhuanet

“CITICForex+”cros-border

financialservicesystem

recognisedasthe“BestGlobal

ServicePracticeDemonstration

Case”

ChinaInternationalFairforTrade

inServices(CIFTIS)Financial

ServicesThematicEvent

AwardsandrecognitionsAwardingorganisation

September

Rated“Tier1”inthefinancial

serviceregulatoryasesmenton

smalandmicro-sizedenterprise

NFRA

firstplaceinthe“Artificial

InteligenceTechnology

EmpoweringCybersecurity

AplicationTest”

NationalComputerNetwork

EmergencyResponseTechnical

Team/CordinationCenterof

China(CNCERT/C)

Obtained“EcosystemBrand

Certification”

NationalBrandProjectofXinhua

NewsAgency,XinhuaPublishing

House,KantarGroupand

Caijingmagazine

DigitalwealthadvisorXiaoxin

honoredas“ChinaService

PracticeCase”amongservice

demonstrationcasesand

includedinthe“Leading

OutstandingCasesofInternal

AuditDigitalTransformation”

OrganizingComiteofthe

ChinaInternationalFairfor

TradeinServices(CIFTIS)

ChinaAcademyofInformationand

ComunicationsTechnology

(CAICT)

August

Rankedas“Excelent”intherural

revitalisationasesment

PBOCandNFRA

“ExcelentWealthManagement

Bank”intheselectionofthe

“Golden-ShelAwardfor

CompetitiveWealthManagement

Cases”

21stCenturyBusinesHerald

July

Ranked18thonthelistof“Top

1,000WorldBanks”intermsof

tieronecapital

TheBankermagazineofthe

UnitedKingdom

ExcelentNorthboundMarket

Maker

BondConectCompanyLimited

AwardsandrecognitionsAwardingorganisation

The“Sentry’InteligentAnti-Fraud

System”andthe“DNAService

ManagementEnginering

Project”recognisedas“China’s

BestAntiFraudandRisk

ManagementProject”and

“China’sBestCustomerService

TechnologyImplementation”,

respectively

TheAsianBanker

ESGNewBenchmarkEnterprise

Award

stockstar.com

June

BestAdvertiseroftheYearIAInternationalAdvertising

Awards

TopTenInovativeModelsof

FinancialSuportforAgriculture

includestheBank’sagricultural

businesmodel

MinistryofAgricultureandRural

Afairs

May

BestPracticeCaseofInvestor

RelationsManagementof

ChineseListedCompanies

ChinaAsociationforPublic

Companies

OutstandingMobilePayment

CoperationAward

ChinaUnionPay

April

ExcelentRMBForeignExchange

ESPMarketMakerofInterbank

RMBForeignExchangeMarket,

ExcelentServiceEnterprise

ExchangeRateRisk

ManagementMember,Excelent

ForeignCurencyPairMarket

Maker,ExcelentDatand

InformationServiceSuport

Institution

ChinaForeignExchangeTrade

System

MarketOutlokAward–Second

PlaceofOveralAward

LondonStockExchangeGroup

March

Ranked19thamongthe“Top500

BankingBrands”

BrandFinanceoftheUnited

Kingdom

AwardsandrecognitionsAwardingorganisation

February

BestInstitutionintheInterbank

InquiryMarket,BestMarket

MakersintheInterbankInquiry

Market,BestBusines

InovationMembersoftheYear,

MemberwithSpecial

AchievementinInternational

Institution

ShanghaiGoldExchange

OutstandingClearingMember,

ExcelenceinProprietary

ForeignCurencyPairClearing,

ProgresAwardinProprietary

InterestRateSwapClearing,

OutstandingSetlementMember,

OutstandingIsuerofCapital

SuplementBonds,Outstanding

InstitutionforOver-the-Counter

DebtBusines,Outstanding

InstitutionforAdvancing

InovativeBusinesInitiatives

ShanghaiClearingHouse

January

MarketInfluenceInstitution,

MarketInovationBusines

Institution

NationalInterbankFundingCenter

ExcelentComprehensiveBusines

Institution,ExcelentAceptance

Institution,Excelent

DiscountingInstitution,

ExcelentTransactionInstitution,

ExcelentSetlementInstitution,

ExcelentInstitutionfor

PromotingNewGeneration

SystemBusines,Excelent

InstitutionofCorporate

PromotionofNewGeneration

System,ExcelentService

InstitutionofComercialPaper

InformationDisclosure

ShanghaiComercialPaper

ExchangeCorporationLtd.

AwardsandrecognitionsAwardingorganisation

BondMarketLeadingInstitution,

ExcelentFinancialBondIsuer,

ExcelentBondUnderwriting

Institution,Top100Proprietary

Setlement,Outstanding

ContributortoColateral

Busines,OutstandingSetlement

AgencyofGlobalConect

Busines,OutstandingInstitution

ofValuationServices,

OutstandingUnderwriting

InstitutionofChinaBondGren

BondIndex

ChinaCentralDepository&

ClearingCo.,Ltd.

December

FirstPrizeforFinTech

Development,fortheBank’s

InclusiveFinanceDigital

InovationEcosystem

PBOC

SecondPrizeofFinTech

DevelopmentforBank’s

Tianyuantreasurysystem

PBOC

Top10ParticipantsoftheYearPaymentandClearingSystemUser

ComiteofthePBOC

NationalAdvancedOrganisationof

InternalAudit

ChinaInstituteofInternalAudit

BestStrategicManagementBank

oftheYear

FinancialTimes

OutstandingHigh-quality

DevelopmentListedCompany

OrganisingComiteofChina

SecuritiesGoldenBauhinia

Award

ESGPionerSecuritiesDaily

BestListedCompanyinInvestor

RelationsManagement

SecuritiesMarketWekly

Top100EnterprisesinChinaChinaTop100ListedCompanies

Forum

AwardsandrecognitionsAwardingorganisation

ExcelentEnterpriseofSustainable

Development

SINAFinance

ExcelentEnterpriseofCorporate

GovernanceResponsibility

SINAFinance

ESGInvestmentPracticeAwardCLS.cn

ExcelentCaseofFinancial

SuportforKeyCountiesto

ReceiveAsistanceinPursuing

RuralRevitalization

ChinaBankingandInsurance

News

IngenuityBrandpeople.cn

ReputationBrandEnterpriseofthe

Year

ChinaTimes

Top10BankList2023ListofChinaNewFinancial

CompetitivenesbySouth

WeklyNewspaper

November

MostProgresiveBankstockstar.com

MostSocialyResponsibleBankstockstar.com

NationalExcelentCaseinRural

Revitalization

xinhuanet.comandChinaPoverty

AleviationPublicityand

EducationCenter

ResponsibleEnterpriseoftheYearChinaNewswekofChinaNews

Service

MostSocialyResponsibleListed

Company

NationalBusinesDaily

ESGExcelentPracticeCaseof

ListedCompany

ChinaAsociationforPublic

Companies

BankforAutoFinancialServices

oftheYear

21stCenturyBusinesHerald

TOP10AgingFinancialService

ProvideroftheYear

YICAI

AwardsandrecognitionsAwardingorganisation

October

BenchmarkCaseAwardforDigital

Operation

DigitalEconomyComiteof

ChinaInformationIndustry

Asociation

September

TheBank’sHapines+pension

financeservicesystemwas

selectedasthepracticecaseof

ChinaService

ChinaInternationalFairforTrade

inServices

Cros-borderFinancialServices

PlatformoftheYear

jiemian.com

August

“Excelent”rankingintherural

revitalizationasesment

PBOCandNFRA

ExcelentWealthManagement

Bank

21stCenturyBusinesHerald

BankforComonProsperity

Contribution

TsinghuaFinancialReview

2023EcosystemBrand

Certification

NationalBrandProjectofXinhua

NewsAgency,KantarGroupand

Caijingmagazine

July

Ranked19thonthelistof“Top

1,000WorldBanks”intermsof

tier-onecapital

TheBankermagazine

“MarketOutlokAward–Fourth

PlaceofOveralAward”and

“MarketOutlokAward–First

PrizeofFundFoundation”

LondonStockExchangeGroup

ExcelentNorthboundMarket

Maker

BondConectCompanyLimited

ExcelentCaseofFinancial

InovationforRural

Revitalization

JRJ.com

June

Top100ModelUnitforExcelent

ServicesinBankingIndustry”

fortheBank’soutletservice

ChinaBankingAsociation

AwardsandrecognitionsAwardingorganisation

AwardforGloryfortheBank’s

retailinteligentdecision-making

platform,DigitalandInteligent

Platform–GoldAwardof

DigitalEmpowerment”forthe

Bank’sopenbankingand“Gold

AwardofDigitalMarketing”for

theBank’sal-chanelintegrated

platform

cebnet.com.cn(DigitalChina

InovationContestACIC2023)

May

BestInteractivewithMinority

Investors,OutstandingIR

Enterpriseand“BestNewMedia

OperationAward”

p5w.net

April

ModelUnitinGrenBankRatingsChinaBankingAsociation

March

BestRMBForeignExchangeSpot

MarketMaker,BestRMB

ForeignExchangeESPMarket

Maker,ExcelentService

EnterpriseExchangeRateRisk

ManagementMember,Best

ForeignCurencyPairMarket

MakerandBestTechnical

ServiceSuportInstitution

ChinaForeignExchangeTrade

System

BestBusinesInovation

Contributor,BestInquiryMarket

MakerandBestInquiry

Institution

ShanghaiGoldExchange

February

Ranked20thamongthe“Top500

BankingBrands”

TheBankermagazineofthe

UnitedKingdom

AwardsandrecognitionsAwardingorganisation

ExcelentComprehensiveBusines

Institution,ExcelentInstitution

ofAceptanceBusines,

ExcelentInstitutionof

DiscountingBusines,Excelent

InstitutionofSetlement

Busines,ExcelentService

InstitutionofComercialPaper

InformationDisclosureand

ExcelentInstitutionof

LaunchingNewGenerationof

BilTradingSystem

ShanghaiComercialPaper

ExchangeCorporationLtd.

January

AwardforMarketInfluence–Core

Dealer,AwardforMarket

Influence–BondMarketDealer,

AwardforMarketInfluence–

DerivativesMarketDealer,

AwardforMarketInfluence–

Opening-upParticipant,Award

forMarketInovation–

X-Bargain,AwardforMarket

Inovation–X-Swap,Awardfor

MarketInovation–Derivatives

Inovation,AwardforMarket

Inovation–BondStrategy

TradingandAwardforMarket

Inovation–Cros-border

InvestmentInovation

NationalInterbankFundingCenter

ExcelentFinancialBondIsuer,

CDCMemberBusines

DevelopmentQualityEvaluation

–OutstandingContributorto

ColateralBusinesandCDC

MemberBusinesDevelopment

QualityEvaluation–Top100

ProprietarySetlement

ChinaCentralDepository&

ClearingCo.,Ltd.

ExcelenceAwardforProprietary

ClearingofStandardBond

Forward

ShanghaiClearingHouse

AwardsandrecognitionsAwardingorganisation

December

ExcelentParticipantintheDigital

Suply-ChainFinancialService

Platform

ChinaNationalClearingCenter

OutstandingBrandBankofthe

Year

TheEconomicObserver

MostInfluentialWealth

ManagementBank

Caijing

BestBankforAutoFinancial

Services

21stCenturyBusinesHerald

Cros-borderFinancialService

PlatformoftheYear

Jiemian.com

AwardfortheBestTransaction

BankingBrand

OrganisingComiteofthe

AnualConferenceofChina

TransactionBanking

BestBankforCros-border

FinancialServices

OrganisingComiteofthe

AnualConferenceofChina

TransactionBanking

InovativeCaseinRural

Revitalization

FinancialResearchInstituteof

People’sDaily

November

ExcelentCasesofCorporateESG

InclusiveFinance

w.xinhuanet.comandChina

EnterpriseReformand

DevelopmentSociety

AwardforBestWealth

ManagementoftheYear

w.stockstar.com

ComercialBankoftheYearfor

EmpoweringHigh-quality

DevelopmentwithInovation

w.investor.org.cn

RetailBankoftheYearChinaTimes

October

GoldenBulAwardforBank

WealthManagementSales

ChinaSecuritiesJournal

AwardsandrecognitionsAwardingorganisation

MostProgresiveBankoftheYear

andMostSocialyResponsible

BankoftheYear

w.stockstar.com

September

ModelUnitinGrenBankRatingsChinaBankingandInsurance

RegulatoryComisionandthe

ChinaBankingAsociation

ExcelentSetlementMember,

ExcelentUnderwriter,Excelent

ClearingMemberandExcelence

AwardforProprietaryClearing

ofStandardBondForward

ShanghaiClearingHouse

BestPrivatePlacementSalesBankw.chnfund.com

AnualWealthManagementAwardNationalBusinesDaily

AgingFinancialServiceProvider

oftheYear

SecuritiesTimes

EcosystemBrandEvaluationand

itsCITICcarbonacountand

suplychainfinancewere

selectedamongthebenchmark

casesofecosystembrands

Caijing’sthe2022FirstEcosystem

BrandSumit

August

NationalOutstandingInstitution

forAnualCreditSystemData

QualityintheBankingSector

CreditReferenceCenter,the

People’BankofChina

ExcelentMonetaryTransaction

InstitutionundertheBeltand

RoadInitiativeandBestForeign

CurencyLendingMember

ChinaForeignExchangeTrade

System

July

Ranked19thonthe“Top1,000

WorldBanks”intermsof

tier-onecapital

TheBankermagazineofthe

UnitedKingdom

Secondamongjointstockbanksin

regulatoryratingsofinancial

servicesformicroandsmal

enterprises

ChinaBankingandInsurance

RegulatoryComision

ExcelentCaseofDigitalInternal

Audit

FirstNationalDigitalAuditing

Conference

AwardsandrecognitionsAwardingorganisation

AwardfortheBestRegulatory

TechnologyImplementationin

Asia-PacificandBestAPIand

OpenBankingProduct,

AplicationorProjectinChina

TheAsianBanker

June

TheBank’sOpenBanking2.0

projectwaselectedastheBest

APIandOpenBankingProduct,

AplicationorProjectinChina

TheAsianBanker

May

AwardforInteractiveRelations

withMinorityInvestors

p5w.net

TheBank’sauditechnology

platformwaselectedasthe

ExcelentCaseofAnualDigital

RiskControlinDigital

Transformation

ChinaBankingandInsurance

News

March

ExcelentMarketInstitution,

ExcelentAceptingHouse,

ExcelentCustodyand

SetlementInstitution,Excelent

ProviderofBilPayment

Services,ExcelentProviderof

ComercialPaperInformation

DisclosureServicesand

ExcelentInstitutionforBil

BusinesPromotion

ShanghaiComercialPaper

ExchangeCorporationLtd.

TheBank’smobilebankingwas

alsoselectedastheInovative

MobileBankingoftheYear

SinaInstituteforFinancialStudies

February

Ranked21stamongthe“Top500

BankingBrands”

TheBankermagazine

AwardsandrecognitionsAwardingorganisation

AnualComprehensiveAwardfor

CentralizedClearingBusines–

OutstandingClearingMember,

AnualComprehensiveAward

forIsuance,Registration,

CustodyandSetlementBusines

–OutstandingSetlement

Member,ExcelenceAwardfor

ProprietaryClearingofAnual

StandardBondForward

InterbankMarketClearingHouse

Co.,Ltd.

January

AwardforMarketInovation

X-Repo,AwardforMarket

InovationX-Bargain,Awardfor

MarketInovationX-Swap,

AwardforMarketInfluence–

CoreDealer,AwardforMarket

Influence–CurencyMarket

Dealer,AwardforMarket

Influence–IsuerofInterbank

CertificatesofDeposit,Award

forMarketInfluence–Bond

MarketDealer,AwardforMarket

Influence–DerivativesMarket

Dealer,AwardforMarket

Influence–Opening-up

Participant

NationalInterbankFundingCenter

ExcelentNorthboundMarket

Maker

BondConectCompanyLimited

ParticipantsinFinancialMarket

InovationoftheCros-border

InterbankPaymentSystem

CIPSCO.,Ltd.

THEBANK’SPRINCIPALBUSINESACTIVITIES

TheBank’sprincipalbusinesactivitiesinthePRCincludecorporatebanking,retailbanking,

andfinancialmarkets.Italsocariesoutotherbusineses,includingintegratedfinancialservices

andinternetfinance.

ThefolowingtablesetsforththeoperatingincomeoftheGroupbybusinesegmentforthe

periodindicated.

Fortheyearended31December

Amount%oftotalAmount%oftotalAmount%oftotal

Unit:RMBmilion

Corporatebanking

94,43644.791,55744.595,24544.7

Retailbanking

84,67740.186,42542.185,69040.2

Financialmarkets

30,31214.425,98812.631,97315.6

Othersandunalocated

1,6840.81,6000.83150.1

Totaloperatingincome

211,109100.0205,570100.0213,223100.0

CorporateBanking

TheBank’scorporatebankingbusinestrivestoimplementhedecisionsandplansofthe

nation.Withigh-qualitysustainabledevelopmentasthemaintask,itincreasedsuportothe

realeconomyandactivelypromotedbusinestransformation.

Asat31December2023and2024,theGrouphadatotalcorporateloanofRMB2,697.15bilion

(representinganincreasefromRMB2,524.02bilionasat31December2022)andRMB2,908.1

bilion(representinganincreasefromRMB2,697.15bilionasat31December2023),

respectively.Fortheyearsended31December2023and2024,theBank’scorporatebanking

businesregisteredanetoperatingincomeofRMB85.66bilion(representingadecreasefrom

RMB89.25bilionin2022)andRMB89.98bilion(representinganincreasefromRMB85.66

bilionin2023),respectively,acountingfor44.91percent.and45.02percent.oftheBank’s

netoperatingincome,respectively.Fortheyearsended31December2023and2024,thenet

non-interestincomefromcorporatebankingtotaledRMB12.83bilion(representingadecrease

fromRMB13.46bilionin2022)andRMB14.08bilion(representinganincreasefrom

RMB12.83bilionin2023),respectively,acountingforand23.07percent.and22.80percent.

oftheBank’snetnon-interestincome,respectively.

Customers

Inrecentlyears,theBankremainedtruetoitsmisionofservingtherealeconomy,maintained

thecustomer-centricaproach,andpromotedstratifiedandclasifiedcustomermanagement.It

fulyleveragesmajorcustomers,furtherstrengthenscoperationwithgovernmentsatvarious

levels,vigorouslyadvancesthebuildingofsmalandmedium-sizedcustomergroups,and

improvedboththequantityandqualityofcorporatecustomergroups.TheBankincreasedthe

numberofcorporatecustomeracounts,especialybasecorporatecustomers

andvalid

customers

.Asat31December2024,theBankhadaproximately1.27milioncorporate

customers(representinganincreaseofaproximately109,000fromthenumberofcorporate

customersasat31December2023),whiletheGrouphadabalanceofcorporatedepositsof

RMB4,116.59bilion(representinganincreaseofRMB184.22bilionfromthebalanceasat31

December2023).

MajorCustomers

TheBank’sMajorCustomersconsistmainlyofleadingindustrialenterprisesthatserveaspilars

oftheconomy,manufacturingchampions,andhigh-market-valuelistedcompanies.TheBank

setuptheMajorCustomerDepartmentoadvancethein-depthmanagementofmajorcustomers,

leveragingthesynergisticadvantagesofCITICGroupandprovidingcustomisedfinancial

solutions.Itimplementedmajorprojectmanagement,inovatednewsuplychainfinancial

products,promotedscalexpandingandcustomeracquisitionofsuplychainsandladered

developmentofequitychainscentringonmajorcustomers,streamlinedbusinesproces,

expandedbusinesauthorisationandalocatediferentiatedresourcesforeachstrategic

customer.TheBankalsoestablishedstrategicoperationwithabatchofcustomersinkey

fieldsandindustriesandachievedbreakthroughsincoperationwith39qualitygroupsin2024.

Itdepenedcoperationwithleadingcustomersinkeyfieldsandindustriesuchasmedicine,

energy,equipmentmanufacturingandautomobileoncomprehensivefinancing,wealth

managementandtradingsetlement,andprovidedhigh-qualityandeficientfinancialservices

forsmalandmedium-sizedenterprisesontheindustrialchainsofMajorCustomers.

Asat31December2024,theBank’sbalanceofloanstomajorcustomerstodataproximately

RMB1,089.47bilion,representinganincreaseof8.01percent.overthebalanceasat31

December2023.Fortheyearended31December2024,theBank’sdailyaveragedepositsfrom

MajorCustomerstodataproximatelyRMB1,625.60bilion,adecreaseof4.76percent.year

onyear.

GovernmentandInstitutionalCustomers

TheBankiscomitedtoprovidingovernmentandinstitutionalcustomersofdiferentlevels

andtypeswithqualityfinancialservices,expandingcoperationwithmajorcustomergroupsin

keyareas,andcontinuouslyimprovingthebrandvaluesofgovernmentfinancialservicesofthe

Bank.

Inrecentyears,theBankcomprehensivelydepenedcoperationwithgovernmentsatalevels,

builtacustomerservicenetworkthatcoveredgovernmentdepartmentsandpublicinstitutionsat

alevels.In2024,itobtainedover1,000qualificationsforfiscalagency,andhadbenrated

“excelence”inthecentralisedpaymentandcolectionservicesforcentraltreasurybythe

MinistryofFinanceforthreconsecutiveyears.TheBankplayedapositiveroleinpracticing

nationalstrategiesandadvancinghigh-qualitydevelopment,andhelpedadrestheconcernsof

governmentswithful-proceservicesforlocalgovernmentbondsthatcoveredkeyareaslike

ReferstocorporatecustomerswithdailyaveragedepositsofRMB100,000andabove.

ReferstocorporatecustomerswithdailyaveragedepositsofRMB500,000andabove.

industrialparks,socialundertakings,infrastructure,renovationofoldurbanresidential

comunities,government-subsidizedhousingprojectsandtransport.Leveragingitstrengthsin

custodyserviceandthesynergyacrosCITICGroup,theBanktokanactivepartinthe

managementofgovernmentinvestmentfunds.Itactivelyengagedinthedigitaltransformationof

governments,suportedthereformdemandsofgovernmentsatvariouslevelsfor“getingone

thingdoneficiently”and“enablingseamlesonlineservices”,andestablishedthegovernment

coperationmodelintegrating“finance,technologyandgovernmentafairs”,achievingextensive

coverageacrosfiscal,socialsecurity,housingandurban-ruraldevelopment,universities,

hospitals,andothergovernmentservicescenarios,aswelasrapidproductpromotion.

Asat31December2024,theBankrecordedaproximately92,200acountsofgovernmentand

institutionalcustomers,anincreaseof7.21percent.fromthenumberofacountsasat31

December2023.Fortheyearended31December2024,theBankhadanaveragedailydeposits

ofaproximatelyRMB1,337.26bilionfromgovernmentandinstitutionalcustomers.

SmalandMedium-SizedCustomers

Upholdingtheoperationlogicof“10,100,1,000and10,000Customers”

,theBankis

comitedtothestrategicfocusof“sparingnoefortogrowthesmalandmedium-sized

customerbase”,thelong-termismprinciplethat“customerbasesarethefoundationof

development”,thedevelopmentpaththat“putsequalemphasisonqualityandquantity”,andthe

systemofpoweringdevelopmentinfourdimensionsof“policies,services,productsand

colaboration”,andworkedpersistentlytostrengthenthebuildingofsmalandmedium-sized

customerbases.

In2024,theBankestablishedhigh-qualitychanels,intensifiedconectionswithgovernment

departmentsandindustrialclusters,depened“head-to-head”colaborationandcolaboration

withregionalchanels,andcariedoutinfluentialmarketingcampaignsuchas“Visit10,000

EnterprisePartners”.Itservedhigh-growthcustomers,improvedorganisationalstructures,

advancedthemoveto“transformcustomerservicedepartmentsintoproduct-focusedunits,and

productdepartmentsintocustomer-focusedunits”,andvigorouslyexpandedtenmajorquality

customergroupswithighgrowthpotential,includingstate-levelenterpriseswithspecialized,

sophisticatedtechniquesandunique,novelproductsandmanufacturingchampionsinsingle

segments.TheBankintensifiedhigh-leveloperation,refinedthecreditexecutionsystemand

performance-basedstimuluspolicies,upgraded“SmartOnlineBanking”,“EasyLoan”and

“CITICBenefit+”wealthmanagementandotherproductsandservices,andtailored

diferentiatedservicesolutions.Itdepenedhigh-eficiencycolaborationbetwenthecorporate

bankinglineandtheretailbankingline,consolidatedthesystemforthecolaborationbetwen

corporatebankingandretailbankingbasedonrefinedscenarios,strategy-guidedservices,

profesionalteamsandregularsuport,andbuiltadistinctservicecosystem.

Asat31December2024,theBankrecordedaproximately306,700acountsofsmaland

medium-sizedcustomers,anincreaseofaproximately30,900fromthenumberofacountsasat

Targeting10mostvaluablecustomersunanimouslyrecognizedbylocalbanks,100corecustomerswithmajor

contributiontoprofits,1,000basicustomersthatmaintainsoundcoperationwiththeBank,and10,000

setlementcustomersthatmaintainregularexchangeswiththeBank.

31December2023.Amongthem,thenumberofenterpriseswithspecialised,sophisticated

techniquesandunique,novelproducts

totaled8,246,anincreaseof1,640fromthenumberas

at31December2022.Fortheyearended31December2024,theBankhadanaveragedaily

balanceofdepositsofRMB884.83bilion,fromsmalandmedium-sizedcustomers.

BusinesesandProducts

CorporateDepositBusines

TheBankoferstwoprincipaldepositproductstoitscorporatebankingcustomers,demand

depositsandtimeandcaldeposits.Asat31December2022,2023and2024,theGroup’s

balanceofcorporatedepositswas,RMB3,807.53bilion,RMB3,932.37bilionand

RMB4,116.59bilion,respectively.In2024,corporatedepositsacrosthemarketexperienced

largefluctuation,withsomedepositfundshiftedtowardsfixed-termdeposits,wealth

managementproductsandinterbankdeposits.TheBankactivelyrespondedtothechangesand

chalengesinmarketenvironment,andmaintainedthebalancedevelopmentbetwenthe

quantityandpricingofcorporatedepositsbyoptimisingproductalocationandimproving

integratedcustomerservices,amongothermeans.

LoansandAdvancestoCorporateCustomers

CorporateloanshavehistoricalybenthelargestcomponentoftheBank’sloanportfolio.Asat

31December2022,2023and2024,theGroup’scorporateloansbalancetotaled,RMB2,524.02

bilion,RMB2,697.15bilionandRMB2,908.12bilion,respectively.TheBank’scorporateloans

canbeclasifiedintoshort-termloansandmediumandlong-termloans.

TheBankprovidesdiscountedbilstoitscustomersasasourceofshort-termfinancing.The

interestratetheBankchargesfordiscountedbilsvariesacordingtothecreditworthinesof

eachcustomer.Asat31December2022,2023and2024,theGrouphadRMB511.85bilion,

RMB517.35bilionandRMB449.90bilion,respectively,ofdiscountedbilsoutstanding.

InvestmentBankingBusines

TheBankestablisheditsinvestmentbankingcentrein2007.Withinvestmentbankingbusines

asanimportantpilarunderpiningthepracticeofthestrategyofbestcomprehensivefinancial

services,theBankimplementednationalstrategies,furtherampedupcomprehensivefinancial

suportforkeyareasandweaklinksofrealeconomy,includingsci-techinovationfinance,

grenfinance,strategicemergingindustriesandmanufacturing,andservedthetransformation

andevelopmentofitscorporatebusines.Upholdingthephilosophyof“profesionalismin

empowermentandinovationforeficiency”,theBankvigorouslypromotedbusines

transformationandinovation,andcontinuedtoconsolidatethemarketpositionofits

competitivebusines.

Thestatisticalscopeisdeterminedacordingtothelatestlistsofenterpriseswithspecialized,sophisticated

techniquesandunique,novelproductsathenationalandprovincialevels,andmadecorespondingregresive

calculationofthebeginingbasefigures.

In2024,theBank’sinvestmentbankingbusinesrecordedafinancingscaleofRMB2,111.97

bilion,upby39.80percent.yearonyear.Itunderwrote2,223debtfinancinginstruments,with

atotalamountofRMB960.006bilion,upby34.98percent.yearonyear,rankingfirstinthe

marketbyboththenumberandscaleofunderwritenbonds

andrenewingthemarketrecordof

theanualscaleofunderwritencorporatecreditbonds.Itserved927customers,rankingfirstin

themarket.ItraisedaproximatelyRMB82.10bilioninthecapitalmarket

.Seizingthegreat

oportunityarisingfromthespecialoansforstockrepurchaseandshareholdingincrease,it

becameoneofthefirstsixlendingbanksinthemarket,andanounced23signedcontracts

worthRMB4.2bilionintotal,rankingfirstamongjoint-stockbanks.Itsucesfulybuilt

severalmarketbenchmarkprojectsinon-balanceshetfinancingareasuchascros-border

syndicatedloans,privatizationofHongKong-listedstocks,mergerandacquisition(M&A)loans

tofretradezone,andactivationofspecificasets,withthefinancingscalehitingarecord

high.

InternationalBusines

TheBank’sinternationalbusinesconsistsprimarilyofservicesrelatingtovarioustradeand

non-tradetransactionofimportandexportindustriesuchasinternationaletersofcredit,

internationalremitance,exportandimportcolectionandsetlement,letersofguarante,

packagedloansandforfeitingservices.Centringonthestrategicorientationofopeningupthe

financialindustryatahigherlevel,theBankproactivelyacteduponthepoliciesaboutheBelt

andRoadInitiativeandthedevelopmentofretradezone(port)andservedtherealeconomy

withfinancialresourcesinitsinternationalbusines.TheBankadvancedthebuildingofthe

cros-bordertreasuryservicesystemandformedtheinovativeservicematrixconsistingof

globalcashmanagementandcros-borderfundpolsandsteadilydroveforwardbusines

development.

In2024,theBank’sinternationalbusinesdemonstratedhigh-qualityandsustainablegrowthin

boththenumberofcustomersandinternationalsetlementvolume.Thenumberofinternational

businescustomersreached47,700,anincreaseof12.95percent.comparedtothenumberasat

31December2023.Theanualinternationalsetlementvolumeachievedaproximately

U.S.$923.25bilion,reflectingayear-on-yeargrowthof12.47percent.

Duringthesameperiodoftime,theBankprovidedmedium-tolong-termprojectfinancing

suportforlarge-scaleinfrastructureconstructionprojectsundertakenbyChinesenterprisesin

BeltandRoadpartnercountriesuchasIndonesia,Laos,Angola,andEgypt.Asat31December

2024,thefinancingbalancereachedRMB12.76bilion,representinga15.05percent.increase

comparedtothebalanceasat31December2023.Concurently,theBanklaunchedthe

“Cros-borderSafeDepositBox”servicesolutionforforeign-relatedguarantes,isuing

aproximatelyRMB47.43bilioninewforeign-relatedguarantesthroughout2024,markinga

year-on-yearincreaseof56.46percent.

AcordingtodataofWindInfo.

Inadition,tofulysuporthestabilisationoforeigntrade,in2024,theBankfocusedon

enhancingcreditsuportforsmalandmedium-sizedforeigntradenterprisesthroughthrekey

initiatives:upgradingtheloyaltycardmodelforexport-orientedbusineses,optimisingand

expandingthewhitelistcreditsolutionsincolaborationwithChinaExport&CreditInsurance

Corporationtoincludenon-residentclients,andindependentlydevelopingthefirstbigdata

financingproduct,“Cros-borderQuickLoan.”Thesemeasurescumulativelyfacilitatedthe

expansionofover1,200smalandmedium-sizedforeigntradecreditclients.TheBankdepened

itscolaborationwithChinaExport&CreditInsuranceCorporation,achievingaleadingposition

amongjoint-stockbanksinshort-termcreditinsurancefinancingscale.ThroughtheState

AdministrationofForeignExchange’sCros-borderFinancialServicePlatform,theBank’s

creditinsurancefinancingscalesurpasedRMB6bilion,positioningitatheforefrontofthe

industry.

TheBankstrengthensitsforeignexchangecompliancecapabilitiescontinuously,earningthe

highestA-levelratingfromtheSAFEin2024.Aditionaly,theHongKongBranchoficialy

comencedoperations,establishinganewstrategicfotholdfortheBankinprovidinglobal

financialservices.

TransactionBankingBusines

TheBankwasthefirstinthePRCtolaunchitsexclusivebrand,“Transaction+”,fortransaction

banking.Takingtransactionbankingbusinesasanimportantpilarfortransformingits

corporatebankingservices,theBankstrenuouslydevelopedtransactionbankingbusines,and

providesenterpriseswithcomprehensivedigitalandinteligentfinancialservicesbycombining

financingandsetlement.

Intermsoftradingsetlement,theBankstrovetodeliveroutstandingcustomerexperienceand

minimalistuserexperience.The“TianyuanTreasury2.0”unveiledafeaturedbusinescentreto

setanexamplefortheindustry;multi-bankcapabilitykeptenhancing,withthebankshaving

directfundlinksnumberingmorethan100;frequentlyusedfeatureswereupgradedfast,anda

specialtreasuryforstate-ownedasetswaslaunched,gatheringnearly2,700customerswithin

theGroup,servingnearly20,000memberenterprises,andhandlingtransactionsworthnearly

RMB500.0bilion.The“EasySalary”platformfacilitatedcustomerexpansion,introducing

featuresforninescenarios,andenabling“thre-stepregistration”fornewcustomersand

“seamlesmigration”forexistingcustomers.In2024,thenewversionof“EasySalary”recorded

22thousandnewlyregisteredcorporatecustomers.The“regulatorypayment”productcovered

fundregulationacrosfivemajorscenarios,withthescaleofundsunderegulationexceding

RMB600.0bilionin2024.

Intermsoftransactionfinancing,theBankworkedtobuildistinctsuplychainfinance

busines.Asforthebankaceptancebilbusines,theBankintensifiedonlineserviceand

scenarioaplications,registering26thousandfinancingcustomerswithmorethanRMB1.8

trilionfundedcumulatively.Asfortheguarantedcomercialbildiscountingbusines,the

Bankexpandedbusineschanels,andsuportedonlineprocesingofsuplychainbils,

financingover2,400customerswithnearlyRMB80.0bilionofunds.Thedomesticfactoring

businesfurthershoweditsuniqueadvantages,recordingRMB427milionofincomefrom

fe-basedbusines,upby56.53percent.yearonyear.AsfordomesticL/Gbusines,theBank

vigorouslypromotedthe“CreditGuarante–SpedyIsuance”,anautomaticreviewand

aprovalproduct,quicklymetingcustomers’demandsforguaranteinbiding&tenderingand

contractperformance,amongotherareas,andservingmorethan4,000customers.In2024,the

Bankprovidedprofesionalsolutionsforover2,500suplychainsinkeyindustries,establishing

leadingedgesknownasacompleteproductsystem,depinsightsintoindustries,highservice

eficiencyandstrongsuportfortherealeconomyinthemarket.

AsetCustodyBusines

TheBankhasplacedgreatimportancetotheinovationandevelopmentofitsasetcustody

busines.Upholdingthephilosophyof“value-adedcustody”,theBankconstantlydepens

businescolaborationwithintheGroup,intensifiedthemoveofbringingasetsgeneratedfrom

internalresourcesundercustody,sparednoefortsinthedevelopmentoftheasetmanagement

busines,andepenedcustomermanagement.Meanwhile,theBankpromotesasetmanagement

businesesuchasmutualfund,pensionandcros-borderfundcustody.Asat31December

2024,themutualfundsundertheBank’scustodyamountedtoRMB2.52trilion,anincreaseof

RMB351.65bilionfromtheamountasat31December2023,whichincludedmoneyfunds,

bondfunds,equityfunds,indexfundsandpubliclyoferedREITs.Thepensionbusinesandthe

cros-bordercustodybusinesmaintainedstablegrowth.Asat31December2024,theanuities

undertheBank’scustodyreachedRMB496.23bilionandtheQDIfundsundercustody

amountedtoRMB302.16bilion,upbyRMB82.68bilionandRMB123.82bilionfromthe

amountasat31December2023,respectively.

In2024,theBankenhanceditsdigitalcustodyservices.Itatachedgreatimportancetothe

developmentofthecustodybusinesystemanditapliedinovativeAItechnologiestofurther

optimisethebusinesproces,whichsignificantlyimprovedbusineseficiency.TheBank

continuouslyenrichedtheservicesofcustomerchanelsandcreatedmoredigitalservice

productsthatimprovecustomerexperienceandmetcustomerdemand.Itspedupthedigital

developmentofbusinesprocedures,enhancedriskidentificationandprocescontrol

capabilities,andidentifiedandremovedrisksandhidendangersinatimelymanerthrough

digitalmonitoringoftheproces,ensuringsecureandorderlybusinesoperations.

Asat31December2024,theGroup’scustodianasetsurpasedRMB16trilionandreached

RMB16.42trilion,anincreaseofRMB1.74trilionfromtheasetsasat31December2023.In

2024,theBankrecordedRMB3.720bilioninincomefromcustodybusines,upbyRMB203

milionyearonyear;themarketshareofcustodybusinesanditsincomecontinuedtogrow.

TheBankwasnamedthe“BestCustodianBankinAsia”foritsasetcustodybusinesbyThe

AsianBankerin2024.

WealthManagementforCorporateCustomers

TheBankasistscorporatecustomersinoptimisingtheirasetalocationstrategies,takinginto

acountfactorsuchasliquidityrequirements,risktolerance,andmarketconditions.Basedon

prudentcurenciesandcurency+withlowfluctuationsandpurebondcorporatewealth

managementproductswithlowfluctuations,theBankvigorouslyexploresfeaturedproducts

suchasfixedincome+preferedsharesandfixedincome+broad-basedindexoptions.In2024,

theBankeptstrengtheningthecoperationwithleadingexternalinstitutions,andfurther

enrichedthecosystemofcorporatewealthmanagementproducts.Asat31December2024,the

Bankhad29externalpartners,upbythrefromthebeginingoftheyear,andactedasasales

agentfor556corporatewealthmanagementproducts,upby149fromthebeginingoftheyear.

Meanwhile,theBankcombinedthefulfilmentofitscorporatesocialresponsibilitywiththe

advancementofcorporatewealthmanagementbusines,implementedthenationalrequirements

forpromotingtheFivePrioritiesinfinance,andstepedupthelaunchandsalesofgrenwealth

managementproducts,productsforenterpriseswithspecialised,sophisticatedtechniquesand

unique,novelproducts,andcharitableproducts.In2024,aproximatelyRMB23.51bilionofthe

saidproductsweresoldintotal,efectivelypromotingthegrentransitionofsocietyand

contributingtodiversesocialvalues.

Asat31December2024,thesizeofcorporatewealthmanagementwasaproximately

RMB209.92bilion,upby15.59percent.overthendofpreviousyear,inwhichcolaborated

agencysalesregisteredRMB42.09bilion.TheBankhadaproximately31,700corporatewealth

customers,upby18.96percent.overthenumberasat31December2023,withthecustomer

basefurtherconsolidated.

InclusiveFinanceBusines

TheBankupholdsthepoliticalconsciousnesandpeople-centerednesofinancework,

remainedcomitedtothepurposeof“providingtimelyhelpandservingthepeople’s

livelihod”,observedtheprinciplesof“market-orientedandlaw-basedoperation”,established

andimprovedthedistinct“five-prongedmodel”(scenario-basedservices,onlineproces

optimisation,batchcustomeracquisition,inteligentriskcontrolandatasetisation),and

mobilizedbank-widefortstodevelopinclusivefinance.Althisproducedpositiveresults,and

earnedtheBankthe“LevelI”rating(thehighestlevel)intheregulatoryasesmentofinancial

servicesformicroandsmalenterprisesbytheNFRA.Inrelationtoinclusivefinance,theBank

hastakenthefolowinginitiatives:

(cid:129)establishmentandimprovementofthespecialisedorganisationalsystemcharacterisedby

“sixunificationsatheHeadOficeandfourconcentrationsatbranches”

:theBank

continuouslyoptimisestheorganizationalstructureandriskcontrolmechanism,fuly

leveragesthebenefitsofthecordinationmechanismoftheInclusiveFinanceLeading

GroupandWorkingGroup,formulatedtheSpecialActionPlanofChinaCITCBankfor

PromotingInclusiveFinance,andestablishedandimplementedthe“FiveSpecialsandFive

Strengthens”

modelofthecordinatedfinancingmechanismformicroandsmal

enterprises.Itkeptinclusivefinanceindicatorsaspartoftheperformanceasesmentof

headsofbranchesandmaintainedaweightofover10percent.inthecomprehensive

performanceasesmentofbranches,providedsubsidies,remunerationandfundsfor

expenses,andcontinuouslyimprovedthemechanismofdevelopingtheconfidence,

wilingnes,capability,andexpertiseininclusivefinance;

Unificationofpolicies,proceses,products,systems,risksandbrandsatheHeadOfice,andconcentrationof

review,aproval,loanextensionandpost-lendingcontrolatbranches.

Setingupspecialtaskforces,formulatingspecialplans,optimisingspecialproducts,launchingspecial

campaigns,andprovidingspecialpoliciesatheHeadOfice;andstrengtheningcordination,comunication&

conection,activepush,implementation,andcontinuouservicesatbranches.

(cid:129)establishmentandimprovementoftheonlineproductsystemcharacterisedby“complete

servicecategoriesandexcelentcustomerexperience”:theBankconstantlyimprovesthe

testfieldmechanismforproductinovationandthecreditfactoryproductforR&D,

launched“OperationELoan”,restructuredthe“HousingMortgageELoan”,and

continuouslyenrichesthe“CITICEasyLoan”productsystembyfurtherefiningproduct

featuresanduserexperiencetomakefinancingsuportwithighcreditlinesandlow

interestratesacesibletocustomersinjustminutes;

(cid:129)establishmentandimprovementoftheprecisionmarketingsystemcharacterizedby“digital

empowermentandlist-basedcustomeracquisition”:theBankupgraded“SmartOnline

Banking”,refinedthefeaturesofelectronichanels,andputintoperation“Xinzhihui”,a

miniprogram,enablingfastandconvenientonlineaplicationforcustomers,and

efectivelyimprovingcustomerexperience.ItvigorouslyforgedAImarketingchanels,

createdthe“BenefitMarketing”platformforbusinesoportunities,andpromotedigital

marketingtolsuchas“InclusiveAIBusinesManager”,reducingmanualoperationand

bostingserviceficiency;

(cid:129)establishmentandimprovementoftheinteligentriskcontrolsystemcharacterizedby

“promotingrobustdevelopmentandefectiveriskcontrol”:theBankestablishedand

improvedtheinteligentriskcontrolsystemcharacterizedby“promotingrobust

developmentandefectiveriskcontrol”.TheBankdynamicalyrefinedtheriskcompliance

managementstrategy,andimprovedtheinstitutionalsystemforiskcompliancethat

consistsofmorethan60policies,tostrengthencreditpolicyguidance.Itupgradedthe

inteligentriskcontrolplatform,andcontinuouslyenhancedpost-lendingfirstinspection,

automaticregularinspectionandintegratedpost-lendingandearlywarningcapabilities.It

maintainedrisktolerance,andrefinedtherulesforexemptingthosewhofulfileduties

fromacountability.Itimprovedtheloanrenewalpolicy,andstepedupefortsinloan

renewalintheprincipleof“grantingrenewedloanswhereverelevantcriteriaismet”.As

at31December2024,thebalanceofrenewedloanstomicroandsmalenterprisestotaled

aproximatelyRMB102.30bilion,upbyaproximatelyRMB54.24bilion,orover100per

cent,fromthebalanceasat31December2023;and

(cid:129)establishmentandimprovementoftheintegratedservicesystemcharacterizedby

“customersfirstandcolaboration”:theBankfulyleveragedthestrengthsofCITICGroup

of“fulicensesinfinanceandfulcoverageinindustries”,strengthenedcolaborationwith

financialandnon-financialsubsidiaries,cariedoutcoperationwithgovernment

departmentsandlargeplatforms,amongothers,andprovided“credit+”integratedservices

coveringfinancing,wealthmanagementandsetlement.

Asathendof31December2022,2023and2024,thebalanceofloanstomicroand

smal-sizedenterprises

wasRMB1,248.20bilionRMB1,465.26bilionandRMB1,655.86

bilionrespectively.Asathendof31December2022,2023and2024,thebalanceofinclusive

loanstomicroandsmal-sizedenterprises

wasRMB445.99bilion,RMB545.08bilionand

RMB599.83bilionrespectively.Asat31December2024,thenumberofcustomerswith

outstandingloanswasaproximately310,400,anincreaseofaproximately26,800comparedto

thenumberasat31December2023.Overal,theasetqualitywaskeptatarelativelysound

level,withthenon-performingasetratiolowerthantheaverageoftotaloansacrostheBank.

TechnologyFinance

TheBankimplementsnationalpoliciesandstrategiesimprovedthesystemsandmechanismsfor

technologyfinanceandaligneditwiththenationaltechnologicalprogrames.Itatachesgreat

importancetothedevelopmentoftechnologyfinancebusines,furtherincreasedinputof

resources,andexploredinstitutionalinovationinmultipleaspects,withtheaimtotakethelead

inthemarket.Boththecoverageandepthofitservicesfortechenterpriseskeptexpanding.

Asat31December2024,theBank’sbalanceofloanstotechenterprises

stodatRMB564.37

bilion,anincreaseof19.34percent.fromthebalanceasat31December2023.Itserved8,246

enterpriseswithspecialised,sophisticatedtechniquesandunique,novelproducts

amongthe

firstfivebatchesofsuchenterprisesnamedbythestate,upby1,640fromthendofprioryear.

Intermsofproductinovation,theBankupholdstheconceptof“selectingcustomersfromthe

perspectiveofinvestment”,constantlyupgradedpointcard-basedaprovalmodel,andcreatively

launchedtheYangtzeRiverDeltapointcardand“TorchLoan”,amongotherproducts.Itfocused

onthehardandcoretechenterprisesatearlierstagesandofsmalerscales,andvigorously

advancedthelaunchofproductsuchasloansforthecomercializationoftechnological

outcomes,fixedasetloansfortechenterprisesandIPRloans,continuouslyforgingthepower

ofeaturedtechnologyfinanceproducts.

Intermsofecosystembuilding,theBankconstantlyimprovesthemechanismofregular

conectionwithgovernmentdepartmentsincludingtheMinistryofIndustryandInformation

TechnologyandtheMinistryofScienceandTechnology.Itdepenscoperationwithnational

industrialasociations,leadingsecuritiescompaniesandrelevantintermediaryagencies.The

Bankstepedupcolaborationwithnationalkeyuniversitiesandresearchinstitutes,andactively

engagedinindustry-academia-researchcolaboration.BasedontheCITICEquityInvestment

Aliance,theBankworkedtobuildaprivateplacementecosystemfortechnologyfinance,

guidingmorefinancialresourcestoflowintotechenterprises.

Referstoloanstosmal-sizedenterprises,loanstomicro-sizedenterprises,andbusinesloanstoself-employed

individualsandownersofmicroandsmal-sizedenterprises.

Refertotheloansforsmalenterprises,microenterprises,individualbusineses,andmicroandsmalbusines

ownerswiththetotalsingle-acountcreditamountofRMB10milionorbelow.

Thestatisticalstandardswereadjustedbasedonchangesinthescopeofthetechenterpriseslist,andthebaseline

athebeginingoftheyearwasadjustedacordingly.

Statisticswasconductedbasedonthelatestlistofstate-levelenterpriseswithspecialized,sophisticated

techniquesandunique,novelproducts,andthebaselineathebeginingoftheyearwasadjustedacordingly.

Intermsofriskcontrol,theBankcontinuedtomakecustomerselectionthefirststepofrisk

preventionandcontrol,andguidedbranchestopreciselyacquirecustomersthroughlist-based

management.Itvigorouslypushedforwardtheimplementationofthediferentiatedaproval

mechanismfortechnologyfinanceinkeyregions,andefectivelybostedtheficiencyand

precisionofaproval,tomethediversefinancingnedsofenterprises.Itadvancedthelaunch

ofcreditratingmodelsforenterprises,makingtheratingresultsmoreacurateandbasedon

science.

RetailBanking

TheBank’sretailbankingbusinesprovidescustomerswithcomprehensive“financialand

non-financial”services,includingwealthmanagement,privatebanking,personaloans,personal

deposits,creditcards,andpayrolservices.TheBankaimstobeanexpertatfivexpertise

(beingexpertiseinsetlement,investment,financing,activitiesandservices)byclosely

folowingmarketdevelopmentrendsandadheringtotheoperationlogicofretailbanking,

sharpeningitsdigitalinsightintocustomers,enlargingthecustomerbaseandstrengthening

customerelations.

Fortheyearsended31December2023and2024,theBank’snetoperatingincomefromits

retailbankingbusinesregisterednetoperatingincomewasRMB83.56bilion(representingan

increasefromRMB82.36bilionin2022)andRMB81.83bilion(representingadecreasefrom

RMB83.56bilionin2023),respectively,acountingfor43.81percent.and40.94percent.of

theBank’snetoperatingincome,respectively.Fortheyearsended31December2023and2024,

theBank’snetnon-interestincomefromitsretailbankingbusinesrecordedRMB23.65bilion

(representinganincreasefromRMB23.34bilionin2022)andRMB20.34bilion(representinga

decreasefromRMB23.65bilionin2023),respectively,acountingfor42.51percent.and32.93

percent.oftheBank’snetnon-interestincome,respectively.

Customers

TheBankimplementedstratifiedmanagementofretailcustomerstorealisevalueimprovement

fromordinarybasicustomers,wealthycustomers,VIPcustomerstoprivatebankingcustomers

relyingonal-chaneladvantageswithprofesionalcapabilitiesinstratifiedservices.Asat31

December2024,theBankrecorded145milionacountsofretailcustomers,agrowthof6.21

percent.overthenumberofacountsasat31December2023.Morespecificaly:

(cid:129)ordinarybasicustomers:theBankleveragesitscapabilitiesinthecordinatedoperationof

multiplechanels,includingmobilebanking,corporateWeChatacount,remoteasistant

andAIoutboundcals,toupgradefromvolumechanelingtotransformationofordinary

customerstowardscustomersofhighertiersinthechain.Asat31December2024,the

numberoftheBank’sordinarybasicustomerstotaledaproximately17.80milion,upby

4.78percent.fromthenumberasat31December2023;

(cid:129)wealthyandVIPcustomers:theBankbuilthemanagementaproachonthestrategyof

“acquisition,upgradationandretention”,continuouslydepenedcustomerelationshipasan

expertat“fivexpertise”,improvedprofesionalcapabilitiesinstratifiedservicesacros

chanels,andenhancedcustomerservicexperience.Asat31December2024,thenumber

oftheBank’swealthyandVIPcustomersreachedaproximately4,588,200,anincreaseof

7.01percent.comparedwiththenumberasat31December2023;and

(cid:129)privatebankingcustomers

:theBankfurtherimprovedthechain-likecustomerupgrade

mechanism,reinforcedstratifiedmanagementofprivatebankingcustomers,fostereda

customeracquisitionecosystemacrosprivatebankingchanels,andupgradedthedigital

operationsystemforprivatebanking,significantlybostingthequalityandeficiencyof

privatebankingbusines.Asat31December2024,thenumberofprivatebanking

customersreachedaproximately84,100,anincreaseof13.77percent.overthenumberas

at31December2023.In2024,themonthlyaveragedailybalanceofAUMoftheprivate

bankingcustomersreachedRMB1.17trilion,upby14.19percent.yearonyear;

Intermsofgroupedmanagementofcustomers,theBankprovidesprofesional,distinctive,

diferentiated,comprehensivefinancialandnon-financialservicestokeycustomergroupsuch

aspensioncustomers,goingabroadcustomers,andGenerationZcustomers.Morespecificaly:

(cid:129)pensioncustomers:theBankcariesouthepensioninvestmenteducationactivities,and

upgradedthe“Hapines+”pensionfinanceservicesystem,tometcustomers’diverse

pensioneds.Ithelpspre-retirementpeoplemakepensionplansinascience-basedway;

publishedTheLongevityEra:BetheCFOofYourOwnLife,thefirstnovel-likepension

financebok;andupgradedthe“Hapines+PensionAcountBok3.0”,aone-stop

pensionplaningplatform.TheBankhelpselderlypeoplegainbeteracestopension

services,renewedstrategicoperationwithagingasociations,releasedtheRisk

PreventionManualforElderlyFinancialConsumers,continuouslyhostedthe“Hapines+”

ParentTalentCompetition,launchedconvenientservicesuchaspensioncomunity,

healthcareasistanceandElderlyCareMaponmobilebanking,andcariedoutavarietyof

anti-fraudpublicityactivities,tohelpelderlycustomersprotectpropertysecurity.Asat31

December2024,theBankhadaproximately98,331,600midle-agedpre-retirementand

eldercustomers,upby12.27percent.fromthenumberasat31December2023;

(cid:129)goingabroadfinancecustomers:theBankfurtherforgeditsbrandasthetopchoicefor

bothoutboundandinboundtravelers.In2024,theBankexpandedthepresenceofdiverse

servicesingoingabroadfinance,and,incolaborationwiththevisaplicationcentresof

foreignembasies,overseascardorganizations,domesticalyleadingoverseastudyservice

agencies,tourismserviceplatformsandforeignexchangeserviceagencies,amongother

partners,launchedarangeofeaturedgoingabroadfinanceservicesandservices

facilitatingpaymentfromoverseasvisitorsinChina,tomethediversedemandsof

customers,includingoutboundtravelers,familieswithchildrenstudyingabroadand

foreignvisitorsinChina,throughoutheirjourneys.Asat31December2024,theBankhad

atotalofaproximately12,386,500goingabroadcustomers,upby12.11percent.fromthe

numberasat31December2023;and

ReferingtothecustomerswiththemonthlyaveragedailybalanceofAUMtotalingRMB6.00milionorabove.

(cid:129)GenerationZcustomers:onthebasisofthoroughlyunderstandingthelifestyle,

consumptionhabitsandvaluesofGenerationZcustomers,theBankdevelopedaservice

systemexclusivetoGenerationZcustomerstometyoungcustomers’diversifiedwealth

managementandconsumptiondemands.In2024,theBankroledouthe“LatePlan”,an

automaticinvestmentplanforwealthmanagement,tohelpyoungcustomersefectively

buildupwealth.Basedonyoungusers’preferences,theBankisuedco-brandedcards

themedgamesincludingStarRailandTearsofThemis.Focusingontheconsumption

scenariosofyoungpeople,suchastravelingandshoping,theBanklaunched“Yanka”

(god-lokingcard)creditcardseries,includingDragon-HorseSpiritCard,GoCard,Pas

card,andXingxingCard.Itbuiltanewmediachanelmatrixandopeneditsoficial

acount“ChinaCITICBankXinYouth”onbilibili.comandXiaohongshu,tocontinuously

comunicateitsphilosophyofservingyoungpeople.Asat31December2024,theBank

hadaproximately46.78milionGenerationZcustomers,isuedover15milion“Yanka”

creditcards,andrecordedatotaltransactionamountofoverRMB370.0bilion.

BusinesesandProducts

WealthManagementBusines

Inactiveresponsetoexternalchanges,theBank,adheringtothecustomer-centricand

investmentresearch-drivenaproach,closelyalignedwithcustomerdemands,strengthened

customerelationships,improvedthewealthmanagementproductsystem,provided

forward-lokingandefectivesuply,enhancedcustomerprofitexperience,promoted

high-qualitydevelopmentofwealthmanagementbusines,andachievedwin-winresultsfor

customersandtheBank.

TheBankhasimplementedtheaproachofmarket-orientedproductselection,profesional

investmentresearchandscience-basedasesment,enhancedthecapabilitiesofselecting

productsfromthewholemarket,andprovidedcustomerswithpro-cyclicalqualityproducts.

Morespecificaly:

(cid:129)intermsofwealthmanagementbusines,theBankpresedaheadwiththetransformation

towardsnetasetvalue(NAV)busines,strengthenedtheinvestmentresearch-driven

aproachandprofesionalcapabilitybuilding,andintensifiedcoperationwithleading

wealthmanagementcompanies,toselectoptimalproductsforcustomers.Asat31

December2024,thebalanceoftheBank’sretailwealthmanagementproductsexceded

RMB1.40trilion,anincreaseof10.90percent.fromthenumberasat31December2023;

(cid:129)intermsofundbusines,theBankfolowedmarketchangesandcustomerdemands,kept

enrichingthesuplyofundproducts,providedcustomerswithavarietyofasetalocation

solutions,suchaspurebondstrategy,fixedincome+strategy,indexstrategy,andproactive

equitystrategy,andoptimisedthestructureofcustomerasetalocation,todeliver

rewardingfinancialexperienceforcustomers.Asat31December2024,theagencysaleof

mutualfundsheldreachedRMB153.4bilion,ofwhichnon-monetaryfundsachieveda

stableanualgrowthof6.96percent.despiteavolatilestockmarketrend;

(cid:129)intermsofinsurancebusines,beingcustomerdemandoriented,theBankfurtherenriched

thetypesofinsuranceproductsitsoldasanagentcentringonpensionplansandinclusive

finance,toprovidecustomerswithmorecomprehensiveprotectionagainstrisks.In2024,

thesalesoftheretailinsurancebusinespostedRMB19.71bilion.TheBankactively

respondedtotheregulatoryrequirementson“returningtothefoundingmision”.In2024,

thesalesofproductsprovidinglong-termprotectionrepresented57.83percent.ofthe

total,indicatingabusinestructurebeterthanthemarketlevel;and

(cid:129)intermsofpersonaldeposits,fortimedeposits,theBankcontinuedtoptimisetheproduct

lineandimprovecustomerinvestmentexperience.Itrefinedfixed-termdepositproduct

withlump-sumdepositandwithdrawalbylaunchingthe“EnjoyasYouLike”feature,

whichoferedconvenientservicesuchason-demandauto-depositandauto-renewalupon

maturity,tobetermetcustomernedsforthealocationofdepositproducts.TheBank

continuedtoimprovethecustomerdepositprocesinpensionscenario,refinedthemobile

bankinginterfaceforthedisplayandpurchaseofsavingsproductsinpensionacounts,and

oferededicatedmodulesforproductpurchaseandpositionquery,alowingcustomersto

easilychecktheirpositions.Forpersonalsetlementdeposits,theBankestablishedthe

growthsystemledby“FiveExpertiseandSixDimensions”.Thatis,basedondepening

themanagementof“FiveExpertise”relatedcustomers,theBankalsobuilthegrowth

capabilitiesinsixdimensions(enlargingthesizeofnewcustomerbase,advancing

chain-likeupgradeofcustomersfromlowertierstohigherones,promotingcros-seling

amongcustomers,facilitatingproductintegrationandpenetration,strengtheningbuildingof

consumptionpaymentscenarios,andexpandingpaymentandsetlementprojects),tofurther

improvetheinteractionbetwenloanandepositservices,enhancedigitaloperation,and

promotetheimprovementoftheliabilitystructure.

Inadition,theBankactivelyalignswiththeorientationofmajornationalstrategies,and

enrichedproductsuplycentringontheFivePrioritiesinfinance.In2024,theBank

colaboratedwithleadingwealthmanagementcompaniesandsoldgrenandESGthemedwealth

managementproductsasanagent,tosuporthehealthyandhigh-qualitydevelopmentofthe

realeconomy.Asat31December2024,theBankrecorded27grenandESGthemedwealth

managementproductsinexistence,withtheAUMtotalingaproximatelyRMB5.17bilion.The

Banksold94grenandenvironmentalprotectionthemedmutualfundsofvarioustypesfor

domesticalyleadingfundcompanies.IncolaborationwithCITICWealthManagement,the

Bankexploredthenewmodelof“charity+finance”,topromotefinanceforgod.Asat31

December2024,theAUMundercharitablewealthmanagementproductsoldbytheBankasan

agentamountedtoaproximatelyRMB9.93bilion.

Moreover,theBankcontinuouslyintensifiesthebuildingoftheinvestmentresearchsystemand

hasbuiltasalescapacitysystem,andstrengthenedproductalocationcapacity.TheBank’s

wealthmanagementandfundbusineskeptabreastofmarketchanges,continuouslyoutput

investmentresearchviews,polishedalocationmethods,enhancedtheteam’sensitivityto

marketchangesandatentiontocustomerexperience,organizedandcariedoutactivitiesuch

as“10,000-MileTour”,andstrengthenedsalespersons’basicapabilitiesandalocationskils.In

termsofinsurancebusines,theBankcontinuedtoiteratethesalesmethodologyandoptimise

theinsuranceproces,upgradedthetrainingandhonorsystem,andstrengthenedprocescontrol

toimprovealocationeficiency.

Lastbutnotleast,beingcustomer-centric,theBankenhancedigitalservicecapacity,tomake

financialservicesmoreacesibleandconvenient.TheBankcontinuouslyupgradedthefeatures

of“XiaoXin”,adigitalwealthadvisor,providingcustomerswith24/7real-time

conversation-basedconsultingservicesbothbeforeandafterinvestmentforfunds,wealth

management,insurance,amongotherproducts,whileoferingthemservicesthroughouthe

procesofwealthmanagementincludingasetalocation.In2024,thedigitaladvisor“Xiao

Xin”wasnamed“ChineseServicePracticeCase”amongservicedemonstrationcasesatCIFTIS

foritsinovative,leadingandinclusivefeatures.

PersonalLoanBusines

Adheringtotheconceptof“ValuePersonalLoan”andtheroleofpersonaloansasthe“balast

stone”oftheBank’sasetbusines,theBankpromotedthebalancedevelopmentofthrekey

products,namely,personalhousingloans,personalbusinesloansandpersonalconsumerloans

inanbalancedmaner,tosuporthedevelopmentoftherealeconomyandprivateconomy

andbostconsumptionupgrading.

Intermsofpersonalhousingloans,theBankactivelyimplementedthecountry’spoliciesonreal

estateregulation,betersuportedpeople’snedsforesentialandimprovement-oriented

housing,andpromotedthebuildingofanewmodelforealestatedevelopment.Asat31

December2024,thebalanceofhousingmortgageloansregisteredRMB1,032.58bilion,an

increaseofRMB61.41bilionfromthebalanceasat31December2023,withtheincrement

rankingtopamongpers.

Intermsofpersonalbusinesloans,focusingontherealeconomyandinclusivebusines,the

Bankcontinuouslyoptimisespoliciesandsuportingfunctionsforpersonalbusinesloan

products,furtherimprovedtheshareofinclusivefinancialbusines,expandedthecoverageof

beneficiaries,andmadetheservicesmoreacesibleandconvenient.Asat31December2024,

thebalanceofpersonalinclusiveloanswasRMB411.65bilion,representinganincreaseof

aproximatelyRMB31.20bilionoverthebalanceasat31December2023.

Intermsofpersonalconsumerloans,theBankdeplyexploredconsumerfinancescenariosuch

ashousingandautomobile,maintainedactiveandsoundmarketingandriskcontrolstrategies,

andactivelycariedoutconsumerfinancebusines.Focusingonhigh-qualitytargetcustomer

groups,theBankcontinuedtoimproveitsbusinesandproductsystem,promotedproduct

inovationandupgrading,achievedin-depthintegrationoftechnologicalinovationand

upgrading,bigdataempowermentandbusinespractice,andcontinuouslyimprovedthequality

andeficiencyofconsumerloanservices.

Asat31December2024,thebalanceofpersonaloans(excludingcreditcards)oftheBankwas

RMB1,815.41bilion,anincreaseofRMB104.51bilionoverthendofthebalanceasat31

December2023.

CreditCardBusines

TheBank’screditcardcentrewasestablishedinDecember2007.TheBank’screditcard

businesthoroughlyimplementedthe“FiveLeading”andthe“RetailFirst”strategy.Focusingon

high-qualityandsustainabledevelopment,theBankcomprehensivelyupgradeditsproductand

servicesystems,andbuiltaqualityscenarioecosystemcentringaroundconsumptionofgeneral

public,whiledepeningtheprecisealignmentof“consumerneds,productoferings,and

consumptionscenarios”.Itfurtherputforwardhigh-qualitycustomeracquisitionandrefined

operations,aceleratedtechnologicalinovationandigitaltransformation,andfulyleveraged

theimportantroleofcreditcardsin“bostingspending,expandingdomesticdemand,and

improvepeople’swel-being”tofurtherenhancepeople’sensesofgain,hapinesandsecurity.

In2024,theBanktokthefolowinginitiatives:

(cid:129)focusingonhigh-qualitycustomeracquisition:theBankbuiltahigh-qualitycustomer

acquisitionsystemfeaturingtheintegrationof“sub-centres,branches,cros-industry

alianceandGroup”,andenhancedthequantityandqualityofcustomeracquisitionthrough

multiplechanels.Itupgradedtheproductsystem,and,centringaroundthebasicnedsfor

people’swel-being,dailyconsumptionandotherscenarios,isuedaseriesofproductsfor

“catering,acomodation,travel,entertainmentandshoping”,includingLoveCatering

Card,LoveAcomodationCard,LoveTravelCard,PASCard,andGOCard;

(cid:129)strengtheningscenario-basedecosystembuilding:theBankcontinuedtocaryouthe

“99365”

brandcampaign,andepenedthecosystembuildingofCBDandmerchantsby

combiningamixofmarketinginstrumentsincludingcouponsandiscountsforacertain

amountofpayment.Asat31December2024,theBankestablishedpartnershipswithover

6,000nationalmerchantbrands,coveringmorethan400thousandstores,engagedover12

milioncustomersincampaigns,andlaunchednearly1,500businesdistricts;

(cid:129)strengtheninginterestearningasetoperation:theBankimprovedtheconsumerinstalment

productsystem.Itprioritizedthe“neighbourhod”scenario-basedevelopment,depened

“head-to-head”coperationwithleadingenterprisesandtopinternetplatforms,and

launchediversifiedinstalmentmarketingcampaignstocomprehensivelyadresvarious

consumerfinancedemandsofcreditcardcustomers;and

(cid:129)enhancingcapacitybuildingoftechnologicalinovationandinteligentservices:theBank

leveragedAI-poweredresponseasistanceandsmartpolicyroutingtoestablishaneficient

socialengagementecosystemandsignificantlyimprovecustomerserviceficiency.It

upgradedtheinteligentoutboundcalingplatformwithcoresystemenhancementand

capacityexpansion,andbostedcapabilitiesinbusinescriptmatching,acuracyofmodel

identification,voiceselectionforobots,andhuman-machinecolaboration.

Asat31December2024,theBankisuedcumulatively123milioncreditcards,anincreaseof

6.68percent.overthenumberasat31December2023,andrecordedRMB487.88bilion

balanceofcreditcardloans.In2024,theBank’screditcardtransactionvolumestodat

RMB2.44trilion,adecreaseof10.13percent.yearonyear;itrealisedRMB55.91bilion

incomefromcreditcardbusines,adecreaseof5.91percent.yearonyear.

Refersto″RMB9MovieTicketPrivilege″,″RMB0.09ExchangePrivilege″and″Wonderful365″.

PrivateBankingBusines

Adheringtotheimplementationofthenewthre-year-developmentplan,theprivatebanking

businesoftheBankiscomitedtobuilditsprivatebankingbusinesasashiningnamecard

of“leadingwealthmanagementbank”.Itadheredtothecustomerandvalueorientation,

promotedstratifiedoperation,colaborativecustomeracquisition,capitalalocationandigital

operation,comprehensivelyenhancedtheprofesionaloperationcapabilityandcustomerservice

capabilityofprivatebanking.

TheBank’specialisedoperationsystemhasbecomemorematureandtheproductioncapacityof

theteamwasreleasedatanaceleratedpace.In2024,theBankpromotedthestratifiedand

intensiveoperationofprivatebankingcustomersonalfronts,withatotalof21branchesand

46privatebankingcentresimplementingintensiveoperation,coveringnearly9,000more

customerscomparedwiththebeginingoftheyear.Itaceleratedthestafingofprivate

banking,builtastandardisedteamanagementmechanism,optimisedthetrainingsystem,and

continuouslyimprovedtheoperatingresultoftheprivatebankingteam.Asanimportantpartfor

“service+operation”ofprivatebankingcustomers,privatebankingcentreshashadtheirlayout

improvedstepbystep,and99privatebankingcentres(11ofthemwerenewlyaproved)have

benestablishedwithaproval,covering69majorcities.

Athesametime,theBankstrengthenedresourceintegrationandaceleratedthereleaseof

customeracquisitioncapacitythroughchanels.Thecorporate-privateintegration“LightUp

Program”increasedthealocationofkeyresources,focusedonkeyscenariosandactivitiesuch

asthedividendistributionoflistedcompanies,andcontinuouslyimprovedtheficiencyof

corporate-retailintegration.In2024,theBankacquiredmorethan8,000corporateandprivate

customers,representingayear-on-yearincreaseof6.59percent.Thegoingabroadfinance

product“JuniorTrip”enrichedthescenarioecosystemandexpandedbrandreputationwithits

featuredservices.In2024,thenumberofprivatebankingcustomersacquiredthroughtheservice

increasedby77.59percent.yearonyear,andnearly13,600“JuniorTrip”creditcardswere

isuedcumulatively.Relyingontheadvantagesandbenefitsofkeycreditcardproducts,the

debit-creditlinkageincreasedinvestmentinactivities,andsignificantlyimprovedthetwo-way

customeracquisition.In2024,thenumberofprivatebankingcustomersacquiredthrough

debit-creditlinkageincreasedby26.79percent.yearonyear,andthecoveragerateofprivate

bankingcreditcardsincreasedby6.29percent.yearonyear.Thecros-borderlinkage

establishedamulti-scenariocustomeracquisitionmodel,and,relyingonoverseasfeatured

value-adedservices,drovethesignificantincreaseinchanelvalue,withtheglobalservice

capabilitiesforhigh-net-worthcustomerscontinuouslyenhanced.

Furthermore,theBankpromotedsalesthroughcapitalalocationandimprovedproduction

capacitythroughstructuraloptimisation.Privatebankingdepositsfocusedonthedevelopmentof

setlementdepositscenarios,andcontinuedtorefinethedepositstructure,withthedailyaverage

balanceofsetlementdepositsofprivatebankingcustomersincreasingby46.13percent.year

onyear.Privatebankingwealthmanagementcontinuedtofocusonfixedincome+products,

withsteadygrowthinscaleandsalesvolume.Thenumberofwealthmanagementproductsheld

byprivatebankingcustomersincreasedby16.40percent.overthendofthepreviousyear.The

premiumsofprivatebankinginsurancerecordedpositivegrowth,andtheproportionof

protectionproductscontinuedtoincrease,continuingimprovetheinsurancestructureofprivate

banking.Theperformanceofmutualfundandprivatefundproductscontinuedtoutperformthe

market,andexistingproductsincreasedby16.47percent.ascomparedtothendofthe

previousyear.Featuredsingleproductsmaintainedarapidgrowthmomentumandthescaleof

inheritancebusinesgrewsteadily.Thevolumeofdiscretionaryentrustmentincreasedby15.10

percent.fromthendofthepreviousyear,andthescaleofinheritancebusinesexceded

RMB70.0bilion.

Inadition,in2024,theBankstrengthenedigitaloperationandsuportcapabilities,andbuilt

digitalcapabilitiesofprivatebanking.TheBankupgradedthebusinestrategysystemfor

privatebankingcustomersinanal-roundmaner,establishedastrategicsynergymechanismfor

retailbanking,andadedandoptimised26precisemarketingmodelsforprivatebanking

businesintheyear,coveringmorethan30corebusinescenarios.Itstrengthenedtheonline

chaneloperationandproductivitydeliverycapability,andupgradedtheserviceprocesof

mobilebankingagencysalesofprivatebanking,privatebankingwealthmanagementand

featuredsingleproducts.Thenumberofactivecustomersofthexclusiveversionofprivate

bankingrewby33.14percent.yearonyear.TheBankefectivelyimprovedtheagencysale

productselectionandcustomerservicecapabilityforprivatebankingwiththesuportofthe

system,wasamongthefirstintheindustrytolaunchfamilyservicetrustandonlineandofline

ful-proceservices,andrealisedthequantitativevaluationofstandardproductsforagency

salesbasedoninternalandexternaldata.

AgeingFinanceBusines

TheBankisoneofthefirstcomercialbanksinChinatolaunchexclusiveservicesforsenior

customers,andastrategicpartnerofChinaNationalComiteonAgeing.

TheBankplacesgreatemphasisonitspensionfinanceservicesystem.ItsetupaPension

FinanceSpecialTaskforce,andformulatedtheSpecialActionPlanofChinaCITICBankfor

PromotingtheDevelopmentofPensionFinance.AsamemberofthePensionFinanceOficeof

theWealthManagementComiteunderCITICFinancialHoldings,theBankprovided

customerswithcomprehensiveservicesolutionsforpensionfinancethroughGroup-wide

cordinationandbank-widecolaboration.

Topromotehigh-qualitydevelopmentofthre-pilarpensionplans,theBankcontinuously

optimisethefirst-pilarsuportingfinancialservices,andrealisedthenational-wideisuanceof

digitalsocialsecuritycardsonmobilebanking.Thenumberofdigitalsocialsecuritycard

isuingregionsabovetheprefecturelevelexceded60.TheBankinovativelyimprovedthe

serviceplanforthesecond-pilaranuitycustomers,andforgedfeaturedvalue-adedservices

suitableforanuitymanagementneds.Asat31December2024,thescaleofcustodyof

pensionexcededRMB500.0bilion.Itpromotedandimplementedtheprivatepensionpolicies

nationwide,continuedtocaryoutinvestmenteducationactivitiesforpensionfinance,and

launchedthedialogueprogramofOldFriendsthemedCITICBankEmpowersYourDreamOver

Time,helpingdiseminatetheknowledgeonpensionfinance.TheBankfurtherenrichedpension

financeproductsandmadealcategoriesofprivatepensionproductsincludingsavingsdeposits,

pensionfunds,comercialinsuranceforthelderlyandpensionwealthmanagementavailable

forpurchase.Itlaunchedthe“Wel-Selected”pensionfinanceproductrecomendationsystemto

improvetheprecisematchbetwencustomerdemandandfinancialproducts.Asat31December

2024,theBankhadaproximately2,188,200privatepensionacounts,upby136.04percent.

fromthenumberasat31December2023.

Centringaroundiferentcustomergroups’nedsforelderlycare,theBankupgradedthe

“Hapines+”pensionfinanceservicesystem.Ontheonehand,centringaroundthenedsof

elderlygroupsincluding“independentseniors,semi-independentseniors,and

disabled/cognitivelyimpairedseniors”,theBankfurtherenrichedtheonlineservicesofits

“Hapines+Club”andlaunchedfeaturesuchas“elderlycarecomunities,medical-health

services,andelderlycaremaps”.Theseservicesnowcover67elderlycarecomunitiesacros

29cities,complementedbyoflinemedicalasistanceandfamilydoctorservices.Forthethird

consecutiveyear,theBankreleasedtheChinaResidentPensionWealthManagement

DevelopmentReport(2024),andtheindustry’sinauguralElderlyCareComunityWhitePaper.

Ontheotherhand,centringaroundtheplaningnedsofcustomerspreparingforetirement,the

Bankroledoutheautomaticinvestmentplan“LatePlan”for“youngcustomers”andlaunched

theasetmanagementol“balanceshet”onmobilebanking.Asat31December2024,the

userstotaledaproximately4,007,600.TheBankpublishedtheinauguralnovel-stylepension

financeguideTheLongevityEra:BetheCFOofYourOwnLifeforyoungandmidle-aged

groups.Itdevelopedandupgradedthe“Hapines+PensionAcountBok3.0”,aone-stop

pensionplaningplatform,andinovatedthefeatureofinancialandnon-financialpension

acountskeping.Asat31December2024,theuserstotaledaproximately5,035,500.

TheBank’spensionfinanceservicesystemsuportedby“sixsuports”,namely,“oneacount,

oneacountbok,onesetofproducts,onesetofservices,oneteamandoneplatform”,such

thateachcustomercanhaveapersonalpensionfundacounthatcanbeusedinmultiple

chanelsandscenarios,anacountbokthatisclear,manageable,andwelinvested,asetof

comprehensiveandhigh-qualitypensionfinanceproducts,asetofelderlycareservicescovering

wealthmanagement,health,privileges,education,heritage,andentertainment,ateamof

certifiedandexcelent“pensionfinanceplaners”,andaforward-lokingandspecialised

pensionfinanceoficeplatformlaunchedbyCITICFinancialHoldings.

Aditionaly,theBankconsolidatedthefortstomakefinancialservicesmoreage-friendly.The

Bankwasoneofthefirstcomercialbankstolaunchamobilebankingversionexclusiveto

elderlycustomers.Ithasmade100percent.ofitsoutletsage-friendly,continuedtoptimisethe

age-friendlyIVR

system,andlaunchedthe“HapinesExpres”,aconvenientmanualservice.

Meanwhile,theBankcontinuedtocaryoutfinancialeducationinitiativesandcrackdownon

elderly-targetingilegalfinancialactivities.Itdevelopededucationalmaterialsuchasthe

MasteringSmartphones,FinancialLiteracyHandbokfortheElderly,andGuideonElderly

FinancialConsumerRiskPrevention,whilecontinuouslyenhancingthe“Sentry”inteligent

anti-fraudriskcontrolsystemtosafeguardthefinancialsecurityofelderlycustomers.

IVRreferstoInteractiveVoiceResponsesystem,throughwhichcustomerscaninteractandobtainfunctionsuch

asmenunavigationbytelephone,reducewaitingtimefectivelyandachieveself-service.

PayrolServiceBusines

Startingfromthenedsofenterprisesandemployes,theBankintegratesitscompetitive

resourcesincorporateandretailbankingbusinesesandcreatedone-stopayrolservice

solutionsforenterprises.Fordiferentcorporatecustomergroups,theBankexpandedthe

coverageofpayrolservicewithafocusonenterpriseswhichincreasesitstafandsalary

payment,andbuiltone-stopsolutionforenterpriseswithitsintegrationoftheadvantagesof

corporateandretailbusines.Onthenterprisend,theBankhasbuilthe“EasySalary”payrol

serviceplatformandthenecesarytolsforthedigitaltransformationofenterprises’human

resourcesandfiscalmanagement.Ontheindividualend,theBankhasintroducedthexclusive

payrolcard,benefitsandwealthmanagementservicestocontinuouslybuildthe“caring”

customerservices.

DigitalFinance

Upholdingthephilosophyof“benefitingthepublicthroughinteligence”,theBankiscomited

tothedevelopmentpathof“AI+finance”andfocusesontheupgradeoftheretailbusines

towardsdata,ecosystem,personalisationandinteligence,coveringthemanagementofal

customersandprovidinginclusivewealthmanagementservicesforthepublicviadigitalmeans.

Intermsofdata,theBankupgradedthecustomerinsightplatform,andfocusedonadvancing

suchworkasdialogmining,laticecockpit,“fivexpertise”thermometer,customertimelineand

inteligentcalendar.In2024,theBanksegmentedcustomersintoatotalof112laticecustomer

groups,acumulatedmorethan4,700labels,trigeredanaverageof40milionbusines

oportunitiesonadailybasis,conectedtover270,000behaviourpoints,andintegrated71

marketingcalendars,furtherefiningtheinsightintocustomers’diversifiedemandsand

advancingtheimprovementofqualityandexpansionofcoverageofinclusivefinance.

Intermsofthecosystem,theBankestablishedcoperationwithmajorfinancialinstitutions

basedontheopenplatform“XingFuHao”.In2024,theplatformintroduced37external

financialinstitutionsandatractedover2.36milionfolowers.TheBankprovideduserswith

long-terminteractiveinvestoreducationservices,andlaunched15activitiesincludingcolecting

goldenbeans,surveyrewards,quizforprizes,puzlegames,SowingFestival,WealthCarnival

andsign-in.TheBankandpartnerfinancialinstitutionsjointlybuiltinvestmentcompanionship

scenarios,developedthefunction“HapinesExpert”,andbroughtinprofesionalinstitutional

investmentexpertstoprovidemorethoroughasetalocationservicestousers.

Intermsofpersonalisation,theBankestablishedtheinteligentmarketingandautomated

operationcapabilitiesfacingover100milioncustomersandupgradedtheunifiedstrategy

managementandA/Btestcapabilitiestometheirpersonalizedemandsforfinancialservices.

In2024,3,612strategiesweredeployedacroschanels,providingdiversifiedfinematched

contents,activities,informationandcaringservicesfor1.17bilionpersonscumulatively.

Intermsofinteligence,in2024,theBankcompletedtheupgradingofthedigitalwealthadvisor

“XiaoXin”,whichprovidesadvisoryservicesforfourtypesofproducts,namelywealth

management,funds,insuranceandeposits,aswelasasetalocationandiagnosiservices.

Sinceitslaunch,“XiaoXin”servedatotalof4.58milionadvisoryconversionsandhadoveral

satisfactionofmorethan95percent.TheBankfurtherimprovedtheinteligentrecomendation

system,whichsuportedstandardisedproductrecomendationacroschanelsthatsatisfies

tailor-madecustomerneds,andintroducedaplicationsforscenariosincludingproactive

serviceformobilebankingbreakpointsandfundtransferinterception,recordinganaverageof4

milionrecomendationserviceinstancesperday.Meanwhile,theBankcontinuedtodevelop

theAIoutboundcalchanel,focusedonpromotingthenewmodelof“AI-Humancolaborative

cal”,andapliedinteligentolstocontinuouslyempowermanualchanels,which

significantlyimprovedserviceficiencyandprovidedmorecustomerswithcaringonline

services.In2024,outboundcalsweremadeto39.14milioncustomers,upby9.79percent.

yearonyear.

FinancialMarkets

TheBank’sfinancialmarketsbusinesincludesinterbankbusinesandotherfinancialmarkets

busines.TheBank’sfinancialmarketsegmenthasbenrespondingtothecomplicatedand

dynamiceconomicandfinancialsituationathomeandabroad,byfolowingcloselythenational

policiesandcaryingoutitsdutyofsuportingtherealeconomywithfinancialservices.It

stayedcomitedtofivedirections,i.e.“depeningintegration,improvingcapability,ensuring

riskcontrol,enlargingthescale,andbostingprofitability”,improveditstructuralcapability

andexpandedsystematicadvantagesthroughbuildingabusinesystemthatintegratesales

service,investmentandtransactionandriskcontrolresearch(“S-T-R”),toservemorecustomers

andcreategreatervalue.

Fortheyearsended31December2023and2024,theBank’sfinancialmarketbusinesrecorded

anetoperatingincomeofRMB21.67bilion(representingadecreasefromRMB25.38bilionin

2022)andRMB26.74bilion(representinganincreasefromRMB21.67bilionin2023),

respectively,acountingfor11.36percent.and13.38percent.oftheBank’snetoperating

income,respectively.Forthesameperiod,theBank’snon-interestnetincomefromfinancial

marketbusinesrecordedRMB18.85bilion(representinganincreasefromRMB18.46bilionin

2022)andRMB27.37bilion(representinganincreasefromRMB18.85bilionin2023),

respectively,acountingfor33.89percent.and44.32percent.oftheBank’snetnon-interest

income,respectively.

Customers

Basedonthe“S-T-R”model,theBanktapedintotheblueoceanofinstitutionalcustomers.

Centringonfivemajorareasofurbanandruralcomercialbanking,securities,funds,elements

andinsurance,theBankdevelopedbusinesmodelsfeaturingcombinedoperation,chain

marketingandcrostraficdiversion,toconstantlybostheoperatingeficiencyindiferent

industries.Comprehensivelyleveragingdigitaloperationtols,suchasCITIC“Interbank+”,per

CRMandMP,theBankforgediferentiatedcompetitiveadvantagesinkeyindustriesand

regionsthroughthe“goingtothecountrysideandprimary-levelinstitutions”initiative.Asat31

December2024,the“Interbank+”platformrecorded3,022acounts,anincreaseof182acounts

fromthenumberasat31December2023.

BusinesesandProducts

FinancialInterbankBusines

TheBankhascontinuedtoexpandthescopeofitsbusinescoperationwithotherbanksand

financialinstitutionsafterachievingfulcoverageofmainstreamfinancialinstitutions.

Asat31December2022,2023and2024,theBank’sbalanceofinancialinterbankasets

(includingdepositsandplacementswith,loanstobanksandnon-bankfinancialinstitutions,

takingintoacountacruedinterestandalowanceforimpairmentloses)amountedto

RMB297.00bilion,RMB318.82bilionandRMB532.99bilion,respectively.Asat31

December2022,2023and2024,theBank’sbalanceofinancialinterbankliabilities(including

depositsandplacementsfrombanksandnon-bankfinancialinstitutions,takingintoacount

acruedinterest)amountedtoRMB1,214.52bilion,RMB1,014.21bilionandRMB1,057.04

bilion,respectively.

TheBank’sbildiscountingbusineshasbentargetinginclusive,grenandstrategicemerging

industriesaswelasmanufacturingandkeysectorsofrealeconomy,chanelinglow-costfunds

totherealeconomy.Fortheyearended31December2024,thevolumeofbildiscounting

businesreachingRMB1,577.98bilion,serving19,526acountsofcorporatecustomers,of

which14,385or73.67percent.weremicroandsmalenterprises.Fortheyearended31

December2023,thevolumeofbildiscountingbusinesreachedRMB1,547.13bilion,serving

16,777corporatebankingcustomers,ofwhich11,687or69.66percent.weremicroandsmal

enterprises.

TheBanklaunchedtheCITIC“Interbank+”platformonlineinthefirsthalfof2017.Itisa

one-stopinterbankfinancialserviceplatformthatintegratestraditionalfinanceandtheinternet.

Folowingtheoperatingphilosophyof“OneCITIC,OneCustomer”,theBankintegrated

resourcesincoperationwiththefinancialsubsidiariesofCITICGrouptofurtherdevelopthe

CITIC“Interbank+”platform.Focusingonthedemandofinancialinstitutionsforwealth

management,marketmakingtransactions,andinteligentservices,theBankdeployedthe

financialmarketbusinesesfeaturing“flor+over-the-counter”tradingand“domestic+

overseas”operations,andevelopedthremajorfeatures,i.e.“PremiumProductStore”,

“Cloud-basedInterbankMarketTradingHal”and“InteligentandDigitalComunication

Platform”.Centringonrenewalandupgrade,customerexperienceandfirst-linecustomer

services,theBankcompletedfastupgradeofeatures,andgradualyformedthrevaluechains

respectivelyofwealthmanagement,asetmanagementandcomprehensivefinancing.The

“Interbank+”platformrecordedanonlinebusinesvolumeofRMB2.25trilionfortheyear

ended31December2024,upbyRMB0.43trilionyearonyear.

ForexBusines

TheBank’sforexbusinesiscomitedtoservetherealeconomy,vigorouslysuportedthe

transmisionandimplementationofregulatorypolicies.TheBankactivelyfulfilsits

responsibilitiesasamarketmakerandpromotedthehigh-qualitydevelopmentoftheforex

market,providingenterprisesandoverseasinstitutionalinvestorswithexchangeraterisk

solutions.In2024,theBankcontinuouslyprovidedquotationtotheinterbankforexmarket.Its

forexmarketmakingvolumerecordedU.S.$3.35trilion,increasingby28.35percent.yearon

year,andstayingaheadinthemarket.TheBankadedthequotationtradingofIndonesian

RupederivativesandthetradingofMacaoPataca,andwasamongthefirstgrouptoparticipate

intheKoreanWonspreadeliveryforwardtradingoftheChinaForeignExchangeTrading

System.Curently,ithasthelistedirectransactionbetwenRMBand20curenciesof

countriesalongtheBeltandRoadInitiativesuchasSouthAfricanRand,KazakhstanTenge,

ThaiBaht,MacaoPatacandSingaporeDolar.Unswervinglyfolowingregulatoryorientations,

itstepedupthepublicityofthexchangerateriskneutralityconcept,andhelpedenterprises

establishthexchangerateriskmanagementmechanism.Itcontinuedtostrengthenforex

capabilitybuilding,enrichedthexchangeratehedgeproductsystem,providedprofesionaland

comprehensiveforexservices,andhelpedenterprises,particularlymicro,smaland

medium-sizedenterprisesimprovethecapabilityofmanagingexchangeraterisk.Itservedthe

high-levelopening-upofthefinancialindustry,andoferedcros-borderinstitutionalinvestors

withsolutionsincludingforexservices.Foreignexchangetradingservicesforcros-border

institutionalinvestorsexcededU.S.$200.0bilion,upby68.26percent.yearonyear.TheBank

tokanactivepartintheself-disciplineinitiativesinChina’sforexmarket,andsuportedthe

progresinvariousworkincludingself-disciplinemanagement,marketregulationand

internationalexchanges.

BondBusines

TheBank’sbondbusinestargeteditsfunctioninprovidingcustomerswithintegratedfinancing

services,activelycariedoutbondinvestmentransactionswithproprietaryfunds,providing

customerswithigh-qualityfinancialservicesforfund-raising,andoferedfinancialiquidity

forthedevelopmentoftherealeconomy.In2024,theBankearnestlyperformeditsdutyasa

centralgovernmentbondunderwriter,vigorouslysuportedtheisuanceofcentralgovernment

bondsinprimarymarkets,andprovidedstrongfundsuportforservingnationalstrategiesand

suportingtherealeconomy.TheBankrankedamongthetopjoint-stockbanksintermsof

comprehensiveunderwritingperformanceforthreconsecutiveyears.Itgavefulplaytoits

profesionalisminbondinvestment,stepedupcolaborationbetwentheHeadOficeand

branches,strengthenedtheficiencyoftransactioncirculation,unlockedthenewmomentumof

colaboration,efectivelysatisfiedthecomprehensivefinancingservicenedsofcorporate

customers,andempoweredtheintegratedmanagementofinterbankcustomers.

TheBankfulfileditsdutiesandresponsibilitiesasacoremarketmakerintheinterbankbond

market,continuedtocaryoutbilateralandrequestedmarketmarkingquotations,andactively

oferedthemarketpricingbenchmarkandliquiditysuport,rankingamongthetopmarket

makersbyseveralindicators.In2024,theBanklaunchedaseriesofinovativeproducts,

includingtheInovationDevelopmentIndexandbondbaskets,amongwhichtheBank’snew

qualityproductivitybondbasketwasthefirstmarket-widefinancialinstrumenthemedonew

qualityproductivity,whichasprovidedinvestorswithanovelavenueforthematicinvestments,

launchedthefirstIMcontractransactionundertheNorthboundBondConectprograminthe

market,andasistedtheChinaForeignExchangeTradeSystemandShanghaiClearingHousein

caryingouthefirstbatchof“SwapConect”contractcompresionbusinesinthemarket.It

sucesfulylaunchedthefirstbatchofnewinterestrateswapcontractsinthemarket,and

activelyparticipatedintheinovationofthederivativesmarket.Asforthemarketmaking

busines,theBankactivelyimplementedtheinterconectivitymechanisminthebondmarket,

andmadegreaterefortstofacilitateservicesforoverseasinstitutionalinvestors,stayingahead

inthemarketintermsoftheBondConectandbondsetlementagencybusineses,and

continuouslycontributingtothehigh-standardopening-upofthebondmarket.Athesametime,

theBankimplementedtheinclusivefinancepolicy,steadilypromotedtheOTCbondbusinesof

smalandmedium-sizedfinancialinstitutions,andbuiltawhole-procesintegratedOTCbond

systemtoservesmalandmedium-sizedfinancialinstitutionstofacilitatetheirparticipationin

thebondmarketandbolsterthedevelopmentofthemulti-levelbondmarket.

MonetaryMarketBusines

TheBank’smonetarymarketbusinesconductsbondrepurchaseinbothlocalandforeign

curencies,interbanklendingandinterbankcertificatesofdepositisuetoenrichfinancing

chanelsforsmalandmedium-sizedcomercialbanks,non-bankingfinancialinstitutionsas

welasothertradingentitiesoastohelpthemtometheirshort-termfinancingneds.In

2024,theBankactivelyconductedbondrepurchase,interbanklendingandisuanceofinterbank

certificatesofdepositsinbothlocalandforeigncurencies,continuedtoenhancethefinancing

capacityinthemonetarymarket,earnestlyperformedthedutiesofaprimarydealerintheopen

market,andactivelymetheshort-termfinancingnedsofsmalandmedium-sizedcomercial

banks,non-bankingfinancialinstitutionsaswelasothertradingentities.Itproactively

participatedintheinovationandbuildingoftradingmechanisms,launchedthefirstbatchof

pledge-stylegovernmentbondrepurchasetransactionsundergeneralrepoandswapfacilitiesin

thewholemarket,andconcludedthefirstanonymouslocalgovernmentbondcontractexpansion

repurchaseinthemarket,thethre-partyforeigncurencyrepurchasewithYulanbondbasketas

colateralandtheOTCrepurchaseofbondsundercustodyofShanghaiClearingHouseforsmal

andmedium-sizedfinancialinstitutions,thusfurtherconsolidatingitspositionasacoredealerin

theinterbankmarket.In2024,theBankrecordedatradingvolumeofRMB28.70trilioninthe

RMBmoneymarket,theisuanceofRMBinterbankcertificatesofdepositreachedRMB1.42

trilion,thetradingvolumeintheforeigncurencymoneymarketofaproximatelyU.S.$536.11

bilion,andtheisuanceofinterbankcertificatesofdepositinforeigncurenciesamountedto

aproximatelyU.S.$630milion.

PreciousMetalBusines

TheBank’spreciousmetalbusinesfocusesonservingtherealeconomywithfinancialservices,

enrichingtransactionstrategiesandincreasingbusinesincome.In2024,theBankactively

servedenterprisesacrosthepreciousmetalindustrychainthroughjointmarketingbetwenthe

HeadOficeandbranches,steadilypromotedcustomerproductsandprovidedcustomerswith

specialisedservicesuchasleasing,valuereservationandwarehousereceiptransaction.It

strengthenedmarketresearchandjudgment,activelyperformeditsdutyasanimporter,enhanced

thealocationtocoretradingoperations,andvigorouslypursuedbilateralswingtrading

strategiesthroughdigitalmeans.AsoneofthefirstgoldmarketmakersontheShanghaiGold

Exchange,theBankperformsthedutiesandobligationsasamarketmaker,continuously

conductedmarket-makingquotations,andactivelyprovidedliquiditysuportothemarket.In

2024,theBankremainedathetopofthemarketinmarketmaking.

AsetManagementBusines

TheBank’sasetmanagementbusinesisthekeylinkandroleinthevaluechainofits“wealth

management–asetmanagement–comprehensivefinancing”.TheBank’subsidiaryCITIC

WealthManagementleveragestheadvantagesofsynergywithintheCITICGroupand

colaborationbetwentheparentbankandsubsidiariesaswelasitsownasetorganizationand

investmentmanagementcapacitiestocontinuouslyforgeanal-roundasetmanagementbusines

linewithcorecompetitivenes,afulrangeofproducts,widecustomercoverageandleading

comprehensivestrength,andstrivestobuilditselfintoafirst-clasenterpriseinworldwithan

al-aroundasetmanagementbusines.

TheBank’sasetmanagementbusinesfoloweda“customer-centric”operationphilosophy.

CITICWealthManagementestablisheda“6+2”productsystemencompasingsixmajortracks

namelymoney,money+,fixedincome,fixedincome+,hybrid,equity,alongwithtwonewtracks

ofprojectsandstockrights.Meanwhile,itactivelyexploredscenario-basedbusinesesuchas

pensionfinance,wealthinheritanceandiscretionarytrust,tobuildafulifecyclewealth

managementservicesystem.

Givingprioritytothequalityandeficiencyoftherealeconomy,theBankfulyleveragesits

strengthofasetalocationplatformandsuportedhigh-qualitydevelopmentofthereal

economythroughitsfinancialresources,placingfocusesonFinTech,greneconomy,pension

financeandinclusivewealthmanagement:

(cid:129)FinTech:withafocusonpromotingsoundcirculationamong“technology,industriesand

finance”,CITICWealthManagementenhancedsuportforinovativetechnologiesuchas

newenergy,newmaterials,next-generationinformationtechnologyandbiomedicine;

(cid:129)greneconomy:CITICWealthManagementproactivelyactsonthegrenandsustainable

developmentphilosophyandsuportedgrendevelopmentinkeyareas.In2024,CITIC

WealthManagementisuedRMB8.81bilionwealthmanagementproductsonthemesof

ESG,grenetc;

(cid:129)inclusivewealthmanagement:in2024,CITICWealthManagementfurtherexpandedthe

“charity+finance”modelandcontinuedtodevelop“CaringforChildren”serieswealth

managementproducts.Asat31December2024,ithad21wealthmanagementproducts

worthatotalofaproximatelyRMB11.77bilion.Withthoseforts,itfulfiledthemision

ofsuportingcomonprosperitythroughwealthmanagement;

(cid:129)pensionfinance:in2024,CITICWealthManagementparticipatedinthedevelopmentofa

pensioninsurancesystemwithChinesecharacteristics.Asat31December2024,ithad169

ongoing“Xinyi”seriesproductswhichweredesignedtometpensioninvestmentneds,

withascaleofaproximatelyRMB70.42bilion.

TheBankadherestoatechnology-drivenaproachinitsasetmanagementbusinesand

strengthenedtheintegrationofdata,businesandtechnologyathetoplevel.In2024,CITIC

WealthManagementestablishedthe“DigitalandInteligentWealthManagement”technology

empowermentsystem,intensifiedefortstobuildadigitalisationtalenteam,andadvancedsix

majordigitaltransformationprojects.Centringaroundthevaluechainofwealthmanagement

busines,itadheredtotechnology-drivendevelopment,andcontinuedtofosternewquality

productiveforces.

Asat31December2024,thewealthmanagementproductsamountedtoRMB1.99trilion,an

increaseof15.29percent.fromthendofthepreviousyear,ofwhichthescaleofnew

net-worthmanagementproductsreachedRMB1.95trilion,acountingfor97.68percent.ofthe

total.TheBankcumulativelyservedaproximately22,567,300wealthmanagementcustomers,

representinganincreaseof37.79percent.ascomparedtothenumberofwealthmanagement

customersasat31December2023.In2024,theBankrealisedincomefromwealthmanagement

businesofaproximatelyRMB4.23bilion,upby47.87percent.yearonyear.

DISTRIBUTIONCHANELS

Asat31December2024,theBankhad1,470outletsin153largeandmedium-sizedcitiesinthe

PRC,aLondonBranchandaHongKongBranch.Inadition,theBankiscontinuously

promotingtheuseofonlinebankingchanels,suchasInternetbankingandmobilebanking.The

Bankisabletoprovideitscustomerswitheficientbankingservicesthroughitsextensive

networkofphysicaloutletsandonlinechanels.

ThetablebelowsetsoutheBank’sbalanceofdepositsfromcustomersbygeographicalregion

asat31December2024.

RegionBalanceProportion

RMBmilion%oftotal

HeadOfice

8,4840.1

BohaiRim

1,566,35326.7

YangtzeRiverDelta

1,509,60125.7

PearlRiverDeltandWestStrait

926,83815.8

CentralChina

779,61613.3

WesternChina

596,56610.2

NortheasternChina

126,5302.2

Overseas

350,3236.0

Total

5,864,311100.0

PhysicalOutlets

Asat31December2024,theBankhad1,470outletsin153medium-sizedandlargecitiesinthe

Chinesemainland,including37tier-onebranches(directlymanagedbyitsHeadOfice),125

tier-twobranches,and1,308sub-branches(including30comunity/microandsmal

sub-branches),plus1,509self-servicebanks(includingonsiteandofsiteself-servicebanks),

4,456self-serviceterminalsand9,593smartelermachines.

Intermsofthelayoutofoverseasoutlets,theBanksetupaLondonBranch,aHongKong

BranchandaSydneyRepresentativeOfice.Asat31December2024,CNCBI,anafiliateofthe

Bank,had31outletsandtwobusineswealthmanagementcentresinHongKong,Macau,New

York,LosAngeles,SingaporeandtheChinesemainland.CNCBInvestmenthad3subsidiariesin

HongKongandtheChinesemainland.JSCAltynBankhadsevenoutletsandoneprivate

bankingcentreinKazakhstan.

TheBank’sLondonBranch,uponaprovalofthePrudentialRegulationAuthorityandthe

FinancialConductAuthorityoftheUK,openedforbusineson21June2019.TheBank’s

LondonBranchistheBank’sfirstoverseasbranchdirectlymanagedbytheHeadOfice.It

conductswholesalebankinganditsmainbusinescopecoversdeposits,loansuchasbilateral

lending,syndicatedlending,tradefinanceandcros-borderM&Afinance,financialmarkets

servicesuchasagencyspotforeignexchangetrading,moneymarketrading,derivativetrading,

ofshoreRMBtrading,bondrepurchaseandinvestmentinandisuanceofbondsandcertificates

ofdeposits,aswelasfinancialservicesuchascros-borderRMBpaymentsetlement.It

proactivelyexploresmarketoportunitiesresultedfromthefluctuationsofmacroeconomy,and

staysactiveinthemoneymarketandforexmarket.TheBank’sLondonBranchundertokthe

forextransactionsbusinesoftheHeadOficeduringEuropeantradingsesions,provided

customerswitheficientandconvenientforexservicesthroughoutheday,activelyperformedits

dutiesasaninterbankforexmarketmaker,andoferedthemarketcontinuoustwo-way

quotations.TheBank’sLondonBranchrecordedaproprietarytradingvolumeofU.S.$36.51

bilion,andaforextradingvolumeofU.S.$36.58bilionasanagentoftheHeadOficeforthe

yearended31December2024.

TheBank’sLondonBranchachievedanoperatingincomeofU.S.$39.90milion,U.S.$28.15

milionandU.S.$36.73milion,fortheyearsended31December2022,2023and2024,

respectively.

On8June2023,theBank’sHongKongBranchwasgrantedthelicenseforoperationbythe

HongKongMonetaryAuthority.On27March2024,asaprovedbytheHongKongMonetary

Authority,theHongKongBranchoftheBankhasbenoficialyestablished.

RetailOnlineChanels

TheBankhasplacedsignificantemphasisondevelopingrobustretailonlinechanelstomet

thenedsofitsretailcustomers.Throughitsinternetandmobilebankingaplications,theBank

oferspersonalisedandexclusiveuserexperiencetoitsretailcustomers.

ChinaCITICBankAP

In2024,theBankcontinuedtoptimisethebasicservicescenariosofthemobilebankingAp

withafocusonuserexperienceandthroughthepathwayof“scenarioservices–trafic

distribution–businesmonetization”,andalsocariedoutproductoperationtoimprove

customerservicexperience.

Intermsofscenarioservices,theBankredesignedthexperiencejourneyforthreimportant

businescenarios,i.e.,acountrestructure,transactiondetails(income/expenseanalysis),and

membership,andintegratedlocalizedlifestyleservicescenariostofosterascenariofactive

users.Itupgradedthemembershiptiersystem,unifiedtheviewofmembershiplevel-based

benefitsandrights,andevelopedsixgrowth-orientedtols.

Intermsoftraficdistribution,basedonthexistinginteligentdistribution,theBankbuilta

“people–product–scenariostraficdistributionlargemodel”acordingtotheuserlifecycle,

productpreferenceanalysis,andscenario-basedinsights,toimprovethetraficalocation

eficiency.

Intermsofbusinesmonetisation,theBankcreatedonlineproductselectionscenariosuchas

“XinxinFamily”,“NightMarketofWealthManagement”and“ProductMap”,optimisedthe

pre-sales,in-procesandafter-salesprocesesforwealthmanagement,funds,insurance,and

deposits,providedcustomerswithfulifecycleacompanyingserviceswiththehelpofdigital

wealthadvisors,enhancedtheonlinedigitaloperationcapacityforwealthmanagementproducts

andensuredthetransformationofbusinesvalue.Astothedevelopmentofeaturedcustomer

groups,theBankcontinuedtoenhancefeaturedservicesforGenerationZ,midle-agedand

silver-agedcustomergroupsthroughupgradingcardservicesforyoungcustomers,Pension

AcountBok3.0,andasetauthorisationandsharingservicesetc.Itconsolidatedthe

cros-scenariosuportviathe“SuperCustomerRepresentativeServiceTeam”,reinforcedthe

“BetheCFOofYourOwnLife”valuepropositionandstrengthenedthebrandimageofa

“caringbank”.

In2024,ChinaCITICBankAPrecordedaproximately18.88miliononlinemonthlyactive

acounts(MAUs),andthetotalnumberofcustomersgrantedloansthroughtheLendingChanel

reachedaproximately1,938,100.

MobileCardSpaceAP

TheBankupgradedMobileCardSpaceAp11.0,launchedtwonewportalsof“CreditCard”

and“Discounts”,andcontinuouslyimprovedtheuserexperienceofcorebenefitreception

procesestoachievestructuredandvisualizedbenefits.Itwasoneofthefirstbatchinthe

industrytoreleasetheHarmonyOSEditionofthecreditcardAp,andlaunchedthe

senior-friendlyversion3.0oftheMobileCardSpaceAp.Centeringaroundtheinterfacedesign,

functionalworkflows,andsecurityperformance,theBankoptimisedthecorecardservicesfor

thelderlycustomers,andbuiltanewCardSecurityCenter,toprovidelderlycustomerswith

one-stopservicesandsetings.In2024,theMobileCardSpaceAprecordedaproximately

22,469,400onlinemonthlyactiveacounts,anincreaseof13.05percent.yearonyear.

RemoteCustomerManagementService

In2024,theBankestablishedtheRemoteCustomerManagementServiceCenter,andepened

multi-chanelcolaborationbetwenremoteoperations,onlineAplatforms,andoutlet-based

customermanagers.Foronlineusers,theBankapliedinteligentechnologiestoidentifyand

predictpainpoints,providedprecisepersonalizedservicesviaphonecals,WeCom,andother

chanels,andensureda“one-pointaces,ful-chanelresponse”experience.Forcustomers

beyondthereachofoflineoutlets,theremoteasistanteamscolaboratedwithbranch-based

customermanagerstodeliveracompanyingservicesintegratedwithmarketing,transformed

traditionalservicesuchaswealthmanagement,benefitnotifications,andeventupdatesinto

rapidonlinesolutionsviaremotengagement,andsignificantlyexpandedservicecoverage.In

2024,theBank’sRemoteCustomerManagementServiceCenterproactivelyreachedcustomers

forhundredsofmiliontimes,coveringnear20milioncustomers.

OpenBanking

TheBankadvancedthedevelopmentofopenbankingandthescenario-basedecosystem.

Throughstandardised,modularandlightdockingsolutions(includingbutnotlimitedtoAPI,

SDK,H5andWeChatMiniProgram),itembededfinancial/non-financialservicesinto

third-partycoperationscenariosandintroducedthird-partyservicestopromotetherapidoutput

ofretailbanking,inclusivefinance,corporatebankingandothercharacteristicproductsand

services,andtheficientintroductionofexternalresourcesfromcoperativeplatforms.In

2024,theBankjointlydevelopedscenariosuchasacount,wealth,paymentandbilpayment

withindustriesthroughstandardisedproductcomponents,servingmorethan85.51milion

person-timesandrecordingmorethanRMB551.6bilionincumulativetransactions.

CorporateOnlineChanels

In2024,theBankcontinuedtostrengthencorporateonlinechanelbuilding,launchedSmart

OnlineBanking5.0,andrealised“zero-distance”contractsigningforcorporateonlinebanking,

simplifyingcontractingprocedures.Itimprovedthe“self-service”experience,establisheda

“guidedservice”modelforonlinebanking,andleveragedcustomerbehaviourinsightstoguide

customerstoperatethroughinteligentprompts.TheBankintroducedaseriesofspecialzones

suchastheTaskCenter,ProductCenter,AdminDashboardandCloudCounterSeries,to

improvetheone-stopbusineshandlingeficiency.Itcomprehensivelyupgradedthesystems,

andprovidedsuportforUnionTech,Kylinandotherdomesticoperatingsystems.Itenhanced

theintensiveoperationofchanels,builtafour-tieroperationandmaintenancesystem,and

apliedco-screninteractivetoltoimprovequalityandeficiencyofcustomerservices.Asat

thendofthe2024,theBankrecordedaproximately1,227,900customersacroscorporate

onlinechanels,upby12.20percent.overthenumberofcustomersasat31December2023,

andthecoveragerateofcorporatecustomersthroughonlinechanelsreached96.95percent.In

2024,227miliontransactionswerenabledthroughcorporateonlinechanels,upby5.38per

cent.yearonyear,andtheamountoftransactionshitRMB177.72trilion,upby8.76percent.

yearonyear.

SubsidiariesandJointVentures

SetoutbelowaretheBank’smainsubsidiariesandotherjointventureswhichtheBankis

engagedin:

(cid:129)CIFHisawholy-ownedsubsidiaryoftheBank.Itsmainbusinescopeincludes

comercialbankingandnon-bankingfinancialservices,andservesastheBank’smain

platformforconductingoverseasbusines.CIFHconductsitscomercialbankingbusines

mainlyviaitsholdingsubsidiaryCNCBI(inwhichCIFHholdsa75percent.,equity

interest),andconductsitsnon-bankingfinancialbusinesprimarilyviaCIAM(inwhich

CIFHholdsa46percent.equityinterest):

(cid:129)CNCBIisawhole-licensecomercialbankthatofersabroadspectrumofinancial

servicestocustomersacrostheregion.AsthemainchaneloftheBank’soverseas

businesandcrosbordersynergy,itgivesfulplayofthesynergybetwentheBank

andCNCBI,providedcomprehensivefinancingservicesaroundcustomers’ned

regarding“equity,debt,loanandinvestment”.In2024,itsucesfulybuilthelayout

ofcros-borderwealthmanagementservicesthatcombinesChinesemainland

branches,HongKongprivatebankingandSingaporeprivatebanking,developing

cros-borderbusinesintoanewengineofincomeincrease,andachievingtwo-digit

growthinboththenumberofhigh-net-worthcustomersandincomefromcros-border

busines.Meanwhile,tofurtherspedupFinTechtransformationandempower

businesdevelopment,itestablishedCITICBankDigitalandInteligent(Shenzhen)

InformationTechnologyCo.,Ltd,andcomencedoperationsinearly2025.

(cid:129)CIAMisaHongKong-basedinstitutionmainlyengagedinprivatequityinvestment

andasetmanagement.

(cid:129)CNCBInvestmentisanoverseaswholy-controledsubsidiaryoftheBankestablishedin

HongKong.ThebusinescopeofCNCBInvestmentcoverslending(holdingaHongKong

moneylenderlicense),investment(mainlyincludingdebtsecuritiesinvestment,fund

investment,stockinvestmentandlong-termequityinvestment,etc.),andoverseaslicensed

investmentbankingbusinesandomesticequityinvestmentfundmanagementbusinesvia

itsownsubsidiaries.

(cid:129)CITICFinancialLeasingisawholy-ownedsubsidiaryoftheBank.Itsbusinescope

mainlycoversfinancialeasing.

(cid:129)CITICWealthManagementisawholy-ownedsubsidiaryoftheBank.Itmainlyengages

intheisuanceofwealthmanagementproducts,investmentandmanagementofinvestor

asetsundercustodyandfinancialadvisoryandconsultingservices.

(cid:129)CITICaiBankis65.70percent.ownedbytheBank.Itisaninovativeinternetbank

jointlyestablishedbytheBankandFujianBaiduBoruiNetworkTechnologyCo.,Ltd.

(cid:129)JSCAltynBankis50.1percent.ownedbytheBank.Itmainlyengagesinbanking

businesinKazakhstan.

(cid:129)Lin’anCITICRuralBankis51percent.ownedbytheBank.Itmainlyengagesin

generalcomercialbankingbusines.

RISKMANAGEMENT

TheBankcontinuouslyimprovesthecomprehensiveriskmanagementsystemthatis“efective

incontrolingrisksandpromotingdevelopment”,andconstantlydepenstheprudentialrisk

complianceculture.In2024,itpresedaheadwiththeimplementationofthe“FivePolicies”,

integratedexecutingvariousdecisionsandplansoftheCentralComiteoftheChinese

ComunistParty(“CPC”)andpromotingthefiveprioritiesinfinancewithseizingbusines

oportunities,andguidedtargetextensionandwithdrawalofcredit.Itimprovedtheunified

creditmanagementsystem,andstrengthenedregionalandcustomerconcentrationcontrol.It

depenedthemechanismforintegratedcreditaproval,managementandinspection,improved

theful-timeaproversystem,strengthenedpost-lendingmanagementandbuildingofthe

colateralmanagementsystem,andrefinedthewhole-procesmanagementmechanismforcredit

busines.Itightenedqualitycontroloveralasets,andclasifiedasetstrictly.Itpushed

forwardriskprojectsdefusing,increasedefortsincashrecovery,andtapedthevalueof

writen-ofasets.Itdepenedthecomprehensiveriskpenetrationmanagementofsubsidiaries,

strengthenedthebuildingofprofesionalriskmanagementeams,andenhancedtherisk

managementcapabilitiesoftheBank.

TheBankmaderiskapetiteadrivetotransmitandimplementnationalpolicyorientations,

upheldaprudentoveralriskapetite,andmadeconsistentefortstoensurecomplianceand

preventsystemicrisks.TheBankelaboratedonriskapetitefromfourperspectivesofvalue,

capital,riskandsocialresponsibility,definedquantitativeindicatorsofriskapetiteatdiferent

levels,andclearlyspecifiedbotom-linerequirementsforthemanagementofmajorisks

asociatedwithcredit,market,operationandliquidity,amongothers.TheBankstrengthenedthe

conectionofriskapetitewithcreditpolicies,risklimits,capitalmanagement,andapraisal

andasesment,highlightingbothuniformityandiference,intensifiedriskapetite

managementofsubsidiaries,andadvancedthefectivetransmisionandexecutionofrisk

apetiteacrostheGroup.

TheBankcontinuouslystrengthensdigitalriskcontrol,optimisedanditeratedigitalriskcontrol

tols,andpushedforwardthebuildingoftheriskmanagementsystem.Itdepenedata

integrationandgovernance,improvedigitalriskmanagementinthewholeprocescovering

riskidentification,measurementandevaluation,monitoring,reportingandcontrol,andupgraded

riskmanagementomakeitincreasinglypoweredbydatandinteligenceinsteadofbeingbased

oninformationalone.

Credit Risk Management Committee
Credit Risk Warning Committee
Non-performing Assets Disposal Committee

Compliance Department: compliance/ money-laundering/ sanctions risk	Operation Management Department: credit risk (loan granting)		General Office: reputational risk
Asset and Liability Department: strategy risk/ liquidity risk/ interest rate risk in the banking book		Information Technology Management Department: information technology risk

ThefolowingchartsetsoutheBank’sriskmanagementstructure:

Board of SupervisorsBoard of Directors

Risk Management Comite

Board of Directors,

Audit and Related Party

Transactions Control Comite

Board of Supervisors

Risk and Internal Control Comite

Risk Management

Department

comprehensive/

credit/market/

operational/

concentration/

country risk

CreditExecution

Department:

credit risk

Law and Aset

Preservation

Department:

Audit

credit/legal risk

Department

Regional

Risk

audit centers

Management

Department

Credit

Execution

Department

Law and Aset

Preservation

Department

Relevant branch

departments

Other

Branch

branch leaders

President

Board of

directors of

subsidiaries

Risk Management

Department

of subsidiaries

Senior

management

of subsidiaries

Branch

risk director

Vice President of the Bank in

charge of risk management

President and

the President’s Ofice

Bank

Vice Presidents of the

and

Senior Management

Branches

subsidiaries

Head

Ofice

CreditRiskManagement

Creditriskreferstotheriskofabankincuringlosesinitsbusinesduetothefailureofits

borowersortransactioncounterpartiestofulfiltheobligationspecifiedinrelevantagrements

orcontracts.TheBank’screditriskmainlycomesfromvariouscreditbusineses,includingbut

notlimitedtoloans(factoringincluded),guarante,aceptance,loancomitmentsandother

on-andof-balanceshetcreditbusineses,bondinvestmentofbankingbok,derivativestrading

andsecurityfinancing,structuredfinanceandotherbusineses.Undertheoveralobjectiveof

maintainingstableasetqualityandincreasingtheproportionofhigh-qualitycustomersand

guidedbytheprincipleofservingtherealeconomyandpreventingrisks,theBankcontinuously

optimiseditscreditstructure,enhancedcomprehensivefinancialservicecapabilities,

strengthenedthewhole-procescreditmanagement,preventedsystemicrisks,andkeptcredit

riskswithinatolerablerange.

TheBankstrictlyimplementedtheAdministrativeMeasuresforLargeExposuresofComercial

BanksreleasedbyformerCBIRCandotherelevantprovisions,proactivelyconducted

managementoflargexposuresundertheframeworkofcomprehensiveriskmanagement,

reinforcedtheinstitutionalfoundation,andcariedoutstatisticalmonitoringandregulatory

submisioninanorderlymaner.In2024,theBankstrictlyimplementedtheidentificationand

clasificationstandardsforcustomerswithlargexposures,withalindicatorsrelatedtolarge

exposureswithinregulatorylimits.

In2024,inordertoactivelyadaptomarketdevelopmentsandchangesinthepolicy

environment,theBanktokvariousmeasurestoimprovethecapability,qualityand

efectivenesofpost-lendingmanagement,therebyrealisingcontinuousvaluecreation.It

implementedtherequirementsof“YearforDepenedPost-lendingManagement”,and

continuouslyadvancedthedevelopmentofpost-lendingmanagementsystem.TheBankrevised

thepolicyonpost-lendingmanagementofcorporatecustomers,andfurtherimprovedrelevant

mechanisms.Itcontinuedtocaryoutstratifiedandclasifiedriskmonitoring,andstrengthened

riskinvestigationofkeyareasandkeycustomers.Italsoimprovedthearlywarningcomite

mechanism,optimisedearlywarningstrategies,andfurtherbroughtintoplaytheroleofearly

warningofrisk.Itorganisedspecialinspectionsofkeypost-lendingareasandstrictly

implementedregulatoryrequirements.

MarketRiskManagement

Marketriskreferstotheriskofon-andof-balanceshetbusinesesofabankincuringloses

duetounfavourablechangesinmarketprices(includinginterestrate,exchangerate,stockprice

andcomodityprice).ThemainmarketriskconfrontingtheBankincludesinterestrateriskand

exchangeraterisk.TheBankhasestablishedamarketriskmanagementpolicysystemcovering

marketriskidentification,measurement,monitoring,controlandreporting.Byclosely

monitoringmarketrisks,strictlyimplementingproductacesandrisklimitmanagement,timely

conductingriskmeasurementandreportingandothermeasures,theBankhaspreventedand

controleditsmarketrisk.ThetargetofmarketriskmanagementoftheBankistocontrol

marketriskwithinthereasonablerangeandmaximiserisk-adjustedreturnsbasedonitsrisk

apetite.

In2024,theBankmeasuredmarketriskcapitalacordingtotheRulesonCapitalManagement

ofComercialBanks,andcontinuedtoconsolidatethesystemandatafoundationofthemarket

riskmeasurement.Italsoimprovedthemarketriskmanagementsystem,andrevisedrelevant

rulesformarketrisklimitmanagement,strestesting,contingencyplansandreporting

management,inabidtoenhancemanagementefectivenes.Inadition,theBankcontinuously

trackedandmonitoredmarketfluctuationsofinterestrateandexchangerate,strengthenedrisk

analysisandjudgement,conductedriskwarningandreporting,andefectivelypreventedand

respondedtomarketrisks.Fordetailsofmarketriskcapitalmeasurement,pleaserefertothe

ThirdPilarInformationDisclosureReportof2024isuedbytheBank.Fordetailsofinterest

rategap,foreignexchangexposureandsensitivityanalysis,pleaserefertoNote55(b)ofthe

2024AnualFinancialStatements.

InterestRateRiskManagement

Interestrateriskinthetradingbok

TheBankestablishedacompleterisklimitsystemfortheinterestrateriskinthetradingbok,

setlimitsuchasvalueatrisk,interestratesensitivityandmarketvaluelosacordingto

featuresofdiferentproducts,andregularlyasesedtheinterestrateriskinthetradingbok

throughstrestestingandothertols,soastocontroltheinterestrateriskinthetradingbok

withinitsriskpreference.

TheBank’sinterestrateriskinthetradingbokismainlyafectedbychangesinyieldsofthe

domesticbondmarket.In2024,thedomesticbondmarketyieldsoveralwentdownwardsamid

fluctuations.TheBankcloselytrackedmarketchanges,strengthenedmarketresearchand

judgment,efectivelycariedoutriskmonitoringandwarning,andprudentlycontroledthe

interestrateriskexposureinthetradingbok.

Interestrateriskinthebankingbok

Interestrateriskinthebankingbok,consistingofgaprisk,benchmarkriskandoptionrisk,is

definedastheriskoflosintheoveralearningsandeconomicvalueofthebankingbok

arisingfromadversemovementsininterestrate,maturitystructureandotherfactors.TheBank

managesitsinterestrateriskinthebankingbokwiththebasicobjectiveofcontrolingits

interestrateriskinthebankingbokwithinareasonablerangeacordingtoitsriskmanagement

capability,riskpreferenceandtolerance.Relyingonefectivecomprehensiveriskmanagement,

theBankestablishedasoundmanagementsystemforinterestrateriskinthebankingbok,

includingamulti-levelriskmanagementstructure,riskmanagementstrategiesandproceses,

riskidentification,measurement,monitoring,controlandmitigationsystems,internalcontrol

andauditpolicies,informationmanagementsystems,riskreportingandinformationdisclosure

mechanism,etc.

In2024,theBankcloselyfolowedchangesinmonetarypoliciesandfiscalpolicies,

strengthenedtheanalysisandpredictionofthetrendofmarketinterestrateandthesimulation

andanalysisofcustomerbehaviorchanges,andtokforward-lokingmeasuresforproper

response.Itapliedgapanalysis,sensitivityanalysis,strestestingandothermethodsto

monitortheriskexposurelevelandchangesfromultipledimensionsuchasre-pricingap,

duration,netinterestincomefluctuation(△NI)andeconomicvalueofentityfluctuation(△

EVE).Italsoflexiblyemployedpriceguidance,durationmanagement,scalemanagementand

othermanagementolstoensuretheoveralstabilityoftheBank’sinterestrateriskexposures

inthebankingbok.Withthecombinedefectoftheabovemanagementmeasures,theBank’s

managementindicatorsforinterestrateriskinthebankingbokfluctuatedwithintherisk

tolerancerangeoftheBankin2024.

ExchangeRateRiskManagement

Exchangerateriskreferstotheriskofon-andof-balanceshetbusinesesofabankincuring

losesduetounfavourablechangesinexchangerates.TheBankmainlymeasuresthemagnitude

ofexchangerateriskthroughforeignexchangexposureanalysis.Itsforeignexchangexposure

mainlycomesfromtheforeignexchangepositionformedthroughforeignexchangetransactions

andfromforeigncurencycapitalandforeigncurencyprofits.TheBankmanagesexchangerate

riskbyreasonablymatchingRenminbiandforeigncurencydenominatedasetswithliabilities

denominatedinthesamecurenciesandbymakingapropriateuseofderivativefinancial

instruments.Forforeignexchangexposuresofbank-wideasetsandliabilitiesaswelas

foreignexchangexposuresformedinforeignexchangesetlementandsale,foreignexchange

tradingandothertransactions,theBanksetsexposurelimitstocontrolitsexchangerateriskat

anaceptablelevel.

ThexchangerateriskoftheBankwasmainlysubjectoimpactofchangesintheRenminbi

exchangerateagainstheU.S.dolar.In2024,thexchangerateofRMBagainstU.S.dolar

fluctuated.TheBankstrictlycontroledtheforeignexchangeriskexposuresofrelevant

busineses,andintensifiedroutineriskmonitoring,forewarningandreporting,controlingthe

exchangerateriskwithintheaceptablerange.

LiquidityRiskManagement

Liquidityriskreferstotheriskthatabankisunabletobtainadequatecapitalinatimely

manerandatareasonablecostorepaymaturedebts,performotherpaymentobligationsor

metothercapitalnedsfornormalbusines.TheBank’sliquidityriskmanagementaimsto

efectivelyidentify,measure,monitorandcontroltheliquidityriskathelegalpersonleveland

theGrouplevelbyestablishingascience-basedandsoundsystemforliquidityriskmanagement,

andensuringthatheliquiditydemandcanbemetatareasonablecostinatimelymaneronthe

premiseofcompliancewithregulatoryrequirements.

TheBankhasetuparobustgovernancestructureforliquidityriskmanagement,whichclearly

laysouthedivisionofdutiesamongtheBoardofDirectors,theBoardofSupervisorsandthe

seniormanagementandsubordinatespecialisedcomitesandtherelevantmanagement

departmentsoftheBank,andexplicitlydefinesthestrategies,policiesandprocedureson

liquidityriskmanagement.TheBoardofDirectorsasumestheultimateresponsibilityfor

liquidityriskmanagementoftheBank,andshalreviewandaprovetheliquidityriskapetite,

liquidityriskmanagementstrategy,importantpoliciesandprocedures,etc.TheBoardof

SupervisorsisresponsibleforsupervisingandevaluatingtheperformanceoftheBoardof

Directorsandtheseniormanagementinliquidityriskmanagement,andreportingtothe

shareholders’generalmeting.Theseniormanagementshaltakechargeofthemanagementof

liquidityrisk,kepabreastofmajorchangesinliquidityriskandregularlyreportotheBoard

ofDirectors.TheAsetandLiabilityComiteoftheHeadOficeshalperformpartof

responsibilitiesoftheseniormanagementunderthelater’sauthorization.Astheleading

departmentforliquidityriskmanagementoftheBank,theAsetandLiabilityDepartmentofthe

HeadOficeisresponsibleforformulatingpoliciesandproceduresforliquidityrisk

management,measuring,monitoringandanalysingliquidityriskandotherspecificmanagement

work.TheAuditDepartmentoftheHeadOficeisresponsibleforauditing,supervisingand

evaluatingtheBank’sliquidityriskmanagement.

TheBankmaintainsaprudentliquidityrisklevel,andimplementsaprudent,cordinated

liquidityriskmanagementstrategyandaunifiedliquidityriskmanagementmode.TheHead

Oficeisresponsibleforformulatingliquidityriskmanagementpoliciesandstrategiesforthe

Groupanditslegal-personinstitutions,andformanagingliquidityriskathelegal-person

institutionlevelinacentralisedmaner.AldomesticandoverseasafiliatesoftheGroupare

responsiblefordevelopingandcontinuouslyimplementingtheirownstrategiesandprocedures

forliquidityriskmanagementpursuantotherequirementsofcompetentregulatorsandwithin

theGroup’smasterpolicyframeworkonliquidityriskmanagement.

In2024,thedomesticeconomicrecoverystilfacedcertainchalenges,andthecounter-cyclical

adjustmentofmacropolicieswasintensified.Thecentralbankcuthereserverequirementratio

(R)twicetomaintainreasonablyampleliquidityinthemarket.Itcuthepolicyratetwice

androvedownthemarketinterestrate.Itlaunchedpolicytolsuchasgovernmentbond

tradingandbuy-outreverserepurchasetoptimisemarketcapitalstructure.Itadoptedand

optimisedstructuredinstrumentsofmonetarypolicy,andincreasedfinancialsuportokeyareas

andweaklinks.In2024,theliquidityofthemoneymarketwasreasonableandabundant,while

theinterestrateofthemoneymarketgeneralyfluctuatedownwardaroundthepolicyrate.

TheBankconstantlyenhancedliquidityriskmanagement,increasedtheforesightand

proactivenesofliquiditymanagementandkeptoptimisingthecordinatedmanagementof

asetsandliabilities.Adheringtostabilizingandincreasingdeposits,itstepedupefortsin

improvingthetotalamountandstructureofundsourcesandutilisation,andmaintaineda

dynamicbalancebetwenliquidityandeficiencyinacordinatedmaner.Italsoenhanced

liquidityriskmeasurementandmonitoring,keptpracticingliquidityrisklimitmanagement,and

keptliquidityriskmanagementindicatorsmetingregulatoryrequirementsandmaintainedat

reasonablelevels.Moreover,theBankproperlyconductedroutineliquiditymanagement,

strengthenedmarketanalysisandforecast,madeforward-lokingfundarangements,and

improvedtheficiencyofundutilizationonthebasisofensuringliquiditysafety.Itreinforced

proactivemanagementofliabilitiesandmaintainedareasonableandproactiveliabilitystructure

soastoensuresmothchanelsandiversifiedsourcesofinancing.Inadition,theBank

continuedtopromotetheisuanceofinancialbondstoreplenishandstabilisethesourcesof

liabilities.Itpaidatentiontoemergencyliquiditymanagement,andenhanceditsemergency

managementcapability.In2024,theBankreasonablysetstrescenariosandconducted

liquidityriskstrestestsonaquarterlybasis,comprehensivelytakingintoacountmajorfactors

andexternalenvironmentalfactorsthatmaytrigerliquidityrisk.Underthemild,mediumand

severescenarios,theBank’sminimumsurvivalperiodsalexcededthe30-daylimitspecified

bytheregulator.

OperationalRiskManagement

Operationalriskreferstotheriskoflosesresultingfromdeficientinternalprocedures,

employesandinformationtechnologysystemsandexternalincidents.Itincludeslegalriskbut

excludestrategicriskandreputationalrisk.TheBankhasestablishedasoundpolicysystemfor

operationalriskmanagementoconsolidatethefoundationforoperationalriskmanagement.

Aimingatimprovingitsriskmanagementandcontrolcapabilitiesandcapabilityofresponding

tointernalandexternalevents,andimprovingserviceficiencyandreturntoshareholders,the

Bankestablishedacorectvalueorientationforoperationalriskmanagement,andfostereda

favourableoperationalriskmanagementculture.Itstrengthenedtheorganiconectionbetwen

theoperationalriskmanagementsystemandmechanismsofbusinescontinuity,outsourcingrisk

management,networksecurityandatasecurity,soastoenhancetheoperationalresilienceof

theBank.

In2024,theBankcontinuedtostrengthenthemanagementandcontrolofitsoperationalrisk,

strictlyimplementedtheOperationalRiskManagementMeasuresofBankingandInsurance

Institutions,andrevisedandimprovedoperationalriskmanagementpoliciesandprocedures.It

activelyadvancedtheimplementationoftheoperationalriskmeasurementwithstandardised

capitalaproaches,andcontinuouslybolsteredthemechanismforcolectingdataboutlos

resultingfromoperationalrisk,improvingthequalityofdata.Itimelystartedoperational

risk-trigeredevaluationinthelinkswhereriskmanagementisweak,enrichedthekeyrisk

indicatorsystem,andmaderiskmonitoringmoreforward-loking.Itguidedsubsidiariesand

overseasbranchestoimprovetheoperationalriskmanagementsystemandoptimisethe

functionsoftheoperationalriskmanagementsystem,continuouslyenhancingtheBank-wide

operationalriskmanagement.Moreover,itmadefurtherendeavourstoestablisharobustrisk

managementsystemforitsoutsourcingbusines,strengthenedthescreningandasesment

reportingofoutsourcingrisk,urgedthedepartmentinchargeofoutsourcingafairstoperform

itsduty,reviewedandrevisedtheoutsourcingcatalogue,andstrengthenedthereviewof

outsourcingprojectsandpolicies.TheBankcontinuedtoimprovethebusinescontinuity

system,conductedproblemscreningandrectification,completedrilsonbusinescontinuity

ascheduled,continuouslymonitoredoperationalinteruptionrisk,andimprovedmanagement

qualityandeficiency.ItalsodepenedtheITriskasesmentandenhanceditsITrisk

managementcapability.In2024,theoperationalriskmanagementsystemoftheBankoperated

stably,placingoperationalriskundercontrolintheoveralsense.

ComplianceRiskManagement

Complianceriskreferstotheposibilityofcriminal,administrativeandciviliabilities,property

loses,reputationdamageorothernegativeimpactsincuredbyfinancialinstitutionsortheir

employesbecausefinancialinstitutions’operationandmanagementbehavioursortheir

employes’performanceofdutyarenotcompliantwithrelevantregulations.Compliancerisk

managementisacoreriskmanagementactivityoftheBank,withtheBoardofDirectorsbeing

thedecision-makingbodyforsignificantcompliancematersandultimatelyresponsibleforthe

efectivenesofcompliancemanagementoftheBank.

In2024,theBankstrictlyimplementedregulatorypoliciesandrequirements,andestablishedthe

conceptofoperationincompliancewithlawsandregulations,thusecuringitshigh-quality

development.TheBankuphelditsmisioninthe“YearforRectificationandImprovement”,

conductingovernancecombininginspection,rectificationandasesment

withreferenceto

thetypicalproblemsofdeparturefromservingtherealeconomyasidentifiedbytheNational

AuditOficeandtheNFRA,andworkingtoimprovethequalityandeficiencyofservingthe

realeconomy.TheBankfocusedonintensifyingtheimplementationofpoliciesandregulations.

ItisuedtheNoticeonFurtherStrengtheningImplementationofRegulatoryRequirements,

clasifiedregulatoryprovisions,clarifiedrequirementsforpolicytransmisionand

implementation,andintensifiedsupervisionovertheimplementationofregulatorypolicies

regardingrenewalofloanstomicroandsmal-sizedenterprises,amongothers.Itreleaseda

seriesofKeyComplianceReminders,sumarisedcriticalcompliancerequirements,andurged

strictdefenceofthebotomlineacrostheBank.TheBankdepenedpenetrationofits

complianceculture.ItlaunchedtheRiskComplianceCultureSeasoncampaignfortheninth

straightyear,and,undertheguidanceofthefinancialculturewithChinesecharacteristics,

asigned19keyjobsinfouraspects,namelyprimary-levelculturalpenetration,targeted

institutionalgovernance,riskcomplianceinspectionandrectification,andscreninginkey

Referingtotheinternalcontrolandcompliancegovernancemechanismthatintegratescomplianceinspection,

problemrectification,andevaluation&asesment.

fields.Itcariedouteducationthemed“FourComplianceLesons”

atprimary-level

institutions,andorganisedover20,000compliancetrainingsesionsandover10,000warning

educationsesionsatvariouslevelsacrostheBank,topromotecorectoutlokonoperation,

performanceandrisk.

InformationTechnologyRiskManagement

Informationtechnologyriskreferstotheoperational,legalandreputationalriskscausedby

naturaldisasters,humanfactors,technicalopholesandmanagementdefectsintheaplication

ofinformationtechnologybycomercialbanks.Informationtechnologyriskmanagementis

incorporatedintotheBank’scomprehensiveriskmanagementsystemandisanimportantpartof

comprehensiveriskmanagement.Withthecoreconceptof“adheringtothebotomline,

strengtheningawarenes,focusingonexecution,proactivemanagementandcreatingvalue”,the

Bankiscomitedtocreatinganinformationtechnologyriskculturesystemcovering“al

employes,alaspectsandfulproces”.

TheBankhasestablishedanorganizationalstructurefeaturing“threlinesofdefence”

consistingofthe“onedepartmentandthrecentres”ofinformationtechnology,risk

managementdepartment,compliancedepartment,auditdepartmentandotherelevant

departments.In2024,theBankcontinuedtoimprovetheinformationtechnologyrisk

managementpolicysystem,andstrengthenedthemanagementofinformationtechnologyrisk.It

continuouslyrefinedthemechanismandprocesforthemanagementofinformationtechnology

risk,andpromotedthearlydiscovery,warningandisposalofinformationtechnologyriskby

intensifyingriskindicatormonitoring,evaluationandinspection.Itstepeduproductionand

operationmanagement,enhancedthequalityofinformationsystemsinoperation,bostedthe

capabilityofbusinescontinuitydrils,andpromotedthesafe,sustainableandstableoperation

ofinformationsystems.

ReputationalRiskManagement

ReputationalriskmainlyreferstotheriskthatdamagestheBank’sbrandvalue,adversely

afectsitsnormaloperationandevenafectsmarketandsocialstabilityduetonegativeopinion

oftheBankbystakeholders,thepublicandthemediaresultedfromtheBank’sbehaviours,

employes’behavioursorexternalevents.

In2024,theBankupheldpoliticalconsciousnesandtokapeople-centricaproachinfinancial

work,folowedthebasicprinciplesof“forward-loking,comensuratenes,fulcoverageand

efectivenes”inreputationalriskmanagement,andensuredvariousworkrelatedtoreputation

riskmanagementbeadvancedefectively.TheBankadheredtotheParty’sleadership,and

promotedthefectiveoperationofthethre-tieredstructureforeputationriskgovernance

consistingoftheBoardofDirectors,BoardofSupervisorsandseniormanagement,departments

oftheHeadOfice,andbranchesandsubsidiaries.TheBankcontinuedtostrengthenthe

whole-procesmanagementmechanismforeputationalrisk,upheldthecustomer-centric

aproach,andtokactivestepstoeliminatehidenrisksathesource.Guidedbysystematic

″FourComplianceLesons″refertothecompliancelesonfortopexecutives,thecompliancelesonforbusines

lines,thefirstlesonfornewemployesandtheonlinecompliancelesonforalemployes.

thinking,theBankrefinedthepreventionandcontrolmechanismtoavoidanynegativepublic

opinioneventsthatmightrigerindustry-widerisks.TheBankadvancedthebuildingofthe

riskpreventionandcontrolsystem,andraisedthereputationalriskmanagementandresponse

capabilitiesofinstitutionsatvariouslevels.

CountryRiskManagement

CountryriskreferstotheriskoflosestothebusinesoftheBankinacountryoregionor

otherlosesoftheBankcausedbytheinabilityorefusalofthedebtorinthecountryoregion

torepaytheBank’sdebtsduetopolitical,economicandsocialchangesandeventsinthat

countryoregion.

TheBankformulatedsoundcountryriskmanagementpoliciesandproceduresoasto

efectivelyidentify,measure,monitorandcontrolcountryrisk.Itidentifiedandmeasured

countryriskincros-bordercreditextension,investmentandof-balanceshetbusineses,

conductedregularcountryriskasesmentandratingsincountries(regions)wherebusineshas

benconductedorplanedtobeconducted,setapropriatecountryrisklimits,andregularly

monitoredandrationalycontroledcountryriskexposures.In2024,theBankrevisedand

improvedcountryriskmanagementrulesandproceses,andpushedforwardtheimprovement

andoptimisationofmanagementols.Itcloselytrackedchangesininternationalsituations,

continuouslymonitoredandasesedcountryrisk,andintensifiedriskscrening.Itupdated

countryriskratings,reviewedandadjustedcountryrisklimitsinatimelymaner,cariedout

strestestsoncountryrisk,andcontroledcountryriskatanaceptablelevel.

MoneyLaunderingRiskManagement

Moneylaunderingriskreferstotheriskofcustomeratrition,businesorfinancialosorlegal

sanctions,regulatorypunishmentsoreputationdamageposiblyincuredbytheBankforbeing

exploitedbymoneylaunderingorotherilegalandcriminalactivitiesorfailingtobservethe

laws,regulationsandinternalrulesonanti-moneylaundering(“AML”)duringoperationand

management.

InAMLwork,theBankremainedledbyPartybuilding,strictlycompliedwiththeLawofthe

People’sRepublicofChinaonAnti-MoneyLaundering,theGuidelinesforRiskManagement

RegardingMoneyLaunderingandTeroristFinancinginCorporateFinancialInstitutions(Trial),

aswelasotherlawsandregulationsregardingAML,andefectivelyfulfileditslegal

obligationofAMLunderthemanagementmechanismwherethethrelinesofdefence

(decision-makingbytheBoardofDirectors,supervisionbytheBoardofSupervisorsand

executionbyseniormanagement)performedutiesinacordinatedmaner,andtheHead

Ofice,branchesandsub-branchesperformedrespectiveresponsibilities.

TheBankatachedgreatimportancetoAMLwork,andthoroughlypracticedthephilosophyof

risk-orientedAMLmanagement.Itcontinuedtoimproverelevantmechanismsandproceses,

toksolidstepstoadvanceAMLinspection,rectificationandasesment,vigorouslyimproved

therefinedmanagementofcustomers,andspedupAMLinteligencebuilding,toenhancethe

complianceofAMLworkandthefectivenesofAMLriskpreventionandcontrolinal

aspects.

In2024,instrictcompliancewithregulatoryrequirements,theBankeptoptimisingtheAML

policysystembyrevisingandisuingthrepoliciesrespectivelyregardingAMLdata

governance,customers’moneylaunderingriskeventmanagementnorms,andinternalacount

AMLmanagement,andformulatedthrenoticesrespectivelyregardingthestandardizationof

dutyperformancebyAMLleadingroupsatbranches,managementoflocalmoneylaundering

riskevents,andmanagementofAMLinvestigationriskevententries.TheBankregularly

conductedAMLreviewof“policies,productsandsystems”,andenhancedAMLriskreminding,

tosecurehealthybusinesdevelopment.ItcariedoutAMLinspection,rectificationand

asesmenthroughoutheyear,depenedspecialscreninginkeyareas,andrectified

institutionalandfundamentalproblems.Itfurtherpromotedtheworkforeducingtheburden

andincreasingtheficiencyofAML,andupgradedinteligentanalysisofsuspicious

transactions,toimproveitsoperationeficiencyandreducefalsescreningrisk.Itenrichedthe

rulesforcustomerduediligencemonitoring,refinedthestandardsforcustomercreditline

control,andconsolidatedthefectivenesofintegratedoperation.Leveragingnewtechnology

andalgorithm,itcontinuedtoincreaseandoptimisethemodelsforsuspicioustransaction

monitoring,andmadethesystemsmoreinteligentandeasier-to-use.TheBankorganisedover

1,100AMLtrainingsesionsfordirectors,supervisors,seniormanagementmembersand

employesatalevels,andcariedout855AMLpublicityactivitiesonregulatoryhotspots,to

fulfilitsocialresponsibilityinAMLwhilefosteringanAMLcomplianceculture.

CapitalManagement

TheGrouphasestablishedacomprehensivecapitalmanagementsystemcoveringcapital

planing,capitalalocation,capitalevaluation,capitalmonitoringandcapitalanalysisand

management.In2024,inlightofchangesinbothinternalandexternalsituations,theGroup

madegreaterefortstoservetherealeconomy,establishedandimprovedthelinkagemechanism

betwencapitalplaningandbusinesarangements,andreasonablypromotedasetgrowth.

Meanwhile,itcontinuedtoupholdthe“capitalight,asetlightandcostlight”development

strategy.Guidedbytheconceptsoflightdevelopmentandvaluecreation,itcontinuedto

optimisethecapitalalocationmodel,enhancedrefinedcapitalmanagement,guidedoperating

institutionstoreasonablyarangebusines,customerandproductstructureundercapital

constraints,andthusrealisedthebalancedevelopmentofbusinesgrowth,valuereturnand

capitalconsumption.

In2024,asrequiredbytheMeasuresforCapitalManagementofComercialBanks

promulgatedbytheNFRA,theGrouprecordedthefolowingcapitaladequacyprofile:capital

adequacyratiof13.36percent.,tier-onecapitaladequacyratiof11.26percent.,andcore

tier-onecapitaladequacyratiof9.72percent.,almetingregulatoryrequirements.

InternalAudit

TheBankestablishedanindependentandverticalsystemforinternalaudit,withtheinternal

auditdepartmentscaryingoutworkunderleadershipoftheBoardofDirectors,responsibleand

reportingtotheBoardofDirectors.TheBoardofDirectorsasumesultimateresponsibilitiesfor

theindependenceandefectivenesofinternalauditandprovidesnecesarysuportoensure

independentandobjectiveinternalaudit.TheBank’sinternalauditdepartmentsconsistofthe

HeadOfice’sAuditDepartmentandeightregionalauditcentresunderitsdirectmanagement,

whichperformthedutyofauditandsupervisionandareindependentfrombusinesoperation,

riskmanagement,andinternalcontrolandcompliance.

In2024,theBank,guidedbytheFive-YearPlanfortheDevelopmentofAuditWork

(2021–2025)andaligningitsinternalauditwithafocusondevelopmentstrategyandcentral

tasks,steadilypromotedauditsfocusingonquality,technology,talentandreform,acelerated

thedigitaltransformationofitsauditfunction,andactivelypromotedcontinuousauditing.

Throughauditing,itcordinatedthedisclosureofproblemsandsupervisionofrectification

work.Placingequalimportancetosupervisionandservices,theBankcontinuedtoconsolidate

thefoundationofauditmanagement,strengthenedthecultivationofaspecializedauditalent,

cariedoutresearch-basedaudits,guidedauditpracticewithresearchfindings,andcontinuously

improvedtheauditvalue,qualityandeficiency.

In2024,upholdingtheriskorientation,theBank,withthefocusontheimplementationof

nationalpoliciesandregulatoryatention,corporategovernanceandstrategyimplementation,

andinternalcontrolcomplianceofkeylinks,conductedauditsparticularlyinareasuchas

servingtherealeconomy,inclusivefinance,grenfinance,realestatefinancing,

government-backedcredit,consumerightsprotection,anti-moneylaundering,andcase

prevention.Itstepedupsupervisionoverkeyinstitutions,keyareasandkeypositions,urged

systematicrectificationoftheproblemsfoundinauditfromthesource,advancedtheaplication

ofauditresults,andstrengthenedthethrelinesofdefenceforjointpreventionandcontrol,

hencepromotingthehigh-qualityandsustainabledevelopmentacrostheBank.

INTERNALCONTROL

TheBankatachesgreatimportancetothestablishmentandimprovementofitsinternalcontrol

system,stepedupgovernanceofproceseswithfocusonkeyareas,continuouslystrengthened

managementoftheweaklinksofinternalcontrol,andfurtherefinedtheinternalcontrolsystem

withclearesponsibilities,efectivecontrolandpowerfulsupervision.

In2024,theBankpresedaheadwithtargetedgovernanceonregulations.Itclearedthe

policy-likedocumentswithmanagementrequirements,suchasregulatorynotices,guiding

opinions,andimplementationplans,inacentralisedmaner;organizedspecialre-inspectionsof

trialpolicies,policiesimplementedforfiveyearsorabove,andimplementationrulesof

branches;andeliminatedthelopholesinpolicyenforcement.Itcariedouthefourthroundof

institutionalgovernance,andconductedtheworkofestablishing,revising,andabolishing

regulationsintime,toeliminaterisksandlopholes.Itpromotedtheaplicationofthe

institutionalmidle-oficesysteminalaspects,movedalprocesesofinstitutional

managementonline,andstrengthenedprocestrackingandaceptanceinspection.

Duringthesameperiodoftime,theBankadvancedtheinternalcontrolgovernanceforkey

busineses.ItcompiledtheDirectoryofInternalControlManagementRiskPointsfor42key

businesesincludingCITICInstantLoanandcarfinance,andsortedkeyriskpoints,toclarify

controlmeasuresandintensifycontrolofkeylinks.Inconsiderationofregulatoryremindersand

industrialrisks,itcariedoutspecialinspectionsonautoloans,entrustedloans,agencysales,

andomesticletersofcredit,conductedinternalcontrolasesmentontheclasificationof

microandsmal-sizedenterprisesandcreditloansforenovationscenarios,andurged

responsibledepartmentstoimplementinternalcontrolmeasuresthroughoutheprocesof

operationandmanagement.

Inadition,in2024,theBankstrengthenedrectificationofkeyproblemsbycategory.Centering

onationalmacropolicies,regulatoryfocusesandoperationreality,theBankestablished“four

ledgers”fortherectificationofproblems.Itcariedout10tasksinthe“breakthroughledger”

forinternalcontrolathesource,strengtheningsystematicrectificationofsuchproblemsasthe

five-tierclasificationofloansandenterprisecategorisation;advancedrectificationand

clearanceoftheisuesinthe“priorityledger”aslistedintheanualregulatorynotificationsfor

legalentities;establisheda“regionaledger”of100keyisuesubjectolocalregulatory

penalties;andorganizedbranchestoestablisha“coreledger”forlocalnotifications,urging

rectificationofproblemsinlinewithregulatoryrequirements.

Lastbutnotleast,in2024theBankstrengthenedbehavioralcasepreventionmanagement.It

fulyimplementedthenewregulatoryrequirementsforcaseprevention,promptlyrevised

policiesregardingcasepreventionmanagement,casemanagement,androtationofkeypositions,

amongothers,andimprovedthemechanismforcasepreventionmanagement.Itpresedahead

withthespecialcampaignforcaseriskpreventionandcontrol,intensified“threchecksand

fourvisits”48acrostheBank,andanouncedtypicalemployeviolationcasesatimportant

bank-widemetings,tostrengthendailywarningeducation.

ENVIRONMENTAL,SOCIALANDGOVERNANCE(ESG)

OneofthedevelopmentprinciplesoftheBankistoadheretoprudentoperationandsustainable

development.TheBankpursueslong-termismdevelopment,balancesdevelopmentandrisksina

cordinatedmaner,andproperlyhandlestherelationsbetwenshort-termandlong-term

interests,andbetwenoveralandpartialperspectives.TheBankadherestotheESGconcept

andgrendevelopment,activelyfulfilsitsocialresponsibilities,andcontinuouslyimprovesits

environmental,socialandgovernanceperformance.

TheBankhasestablisheda“top-downandinovation-drivenESGmanagementsystemthat

featuresmutualpromotionandcordinatedoperation”.Throughout2024,theBankcontinuedto

improvetheESGmanagementsystemandmechanism.Itconvenedthe2024workingroup

metingonmarketcapitalizationandESGmanagement,andadvancedESGworkina

cordinatedmaner.Itcontinuouslystrengthenedatagovernance,gradualybuilthestatistical

andmanagementcapabilitiesofScope3emisions,sucesfulycompletedtheinventoryof

carbonemisionsfor2021-2023,andsortedhistoricaldata,layingasolidfoundationforthe

formulationoftheBank’s“carbonpeakingandcarboneutrality”objectivesandimplementation

path.ItcontinuouslypromotedtheintegrationoftheESGphilosophyintodailyoperationand

management,andincorporatedESG-relatedcontentsintoitsemployequalificationcertification

system.ItcariedoutheSpecialTrainingCourseonESGCapabilityImprovementofChina

CITICBankforESGmanagementpersonelteamsoftheHeadOfice,branchesand

sub-branches,andorganizedtrainingsesionsontheconceptofESGsustainabledevelopment,

carbonpeakingandcarboneutralitymanagement,climatechangeandgrenfinancetc.to

furtherenhancetheBank’sESGmanagement.

UnderthestrategicleadershipoftheBoardofDirectors,theBankactivelysuportedkeyareas

oftherealeconomy,vigorouslydevelopedgrenfinance,inclusivefinanceandelderly-oriented

finance,activelyservedtheruralrevitalisationstrategy,andcontinuouslycariedoutprecision

asistanceandpublicwelfaredonations.

INFORMATIONTECHNOLOGY

Adheringtoacomprehensivetechnology-drivenstrategy,theBankunderstodtheimportanceof

enhancingandupgradingitstechnologicalcapabilitiesandfocusedonadvancingdigital

transformationinitsoperation.TheBankcontinuedtoimprovedatacapabilitiesand

strengthenedITinovationtounleashthepotentialofdatandigitalinfrastructure.

In2024,theGroupinputaproximatelyRMB10.95bilionininformationtechnology,acounting

for5.13percent.ofitsoperating.Asat31December2024,theGrouphad5,832technology

personel,increasingby3.66percent.fromthenumberasat31December2023,and

acountingfor8.91percent.ofthetotalpersonel.Thevigoroftechnologicalinovationwas

furthereleased,and364patentswereauthorisedonacumulativebasis.

COMPETITION

AsathedateofthisOferingCircular,theBankcompetesprincipalywithlarge-scale

comercialbanks,nationaljointstockcomercialbanks,keyurbancomercialbanksand

foreign-investedbanksinthePRC.Inadition,theBankmayfacecompetitionforfundsfrom

otherformsofinvestmentalternativesasthePRCcapitalmarketscontinuetodevelop.

EMPLOYES

Asat31December2024,theGrouphadatotalof65,466employes.

LEGALANDREGULATORYPROCEDINGS

TheGrouphasbeninvolvedinseveralitigationandarbitrationcasesinitsordinaryandusual

courseofbusines.MostoftheselitigationsandarbitrationswereinitiatedbytheGroupto

enforceloanrecovery,andtherewerealsolitigationsandarbitrationsresultingfromdisputes

withcustomers.Asat31December2024,therewere116outstandinglitigationandarbitration

cases(regardlesofthedisputedamounts)involvedintheGroup’sordinaryandusualcourseof

busineswheretheGroupactedasdefendant/respondent,relatingtoanagregatedisputed

amountofaproximatelyRMB1.33bilion.

TheGroupisoftheviewthathelitigationsandarbitrationswilnothavesignificantadverse

impactsoneitheritsfinancialconditionsoresultsofoperations.

AsathedateoftheOferingCircular,theBankisnotinvolvedinanylitigation,arbitrationor

administrativeprocedings,whetherpendingorthreatened,whichareormighthaveamaterial

adversefectonthefinancialconditionsoresultsofoperationsoftheBankorwhichare

otherwisematerialinthecontextoftheisuanceoftheNotes.

RECENTDEVELOPMENTS

CapitalIncreaseinCITICFinancialLeasingandConversionofRetainedEarningsinto

RegisteredCapital

On20February2025,theBoardofDirectorsoftheBankreviewedandaprovedtheProposal

onCapitalReplenishmentPlanofCITICFinancialLeasingandagredthatCITICFinancial

LeasingwilconvertRMB3.0bilionofretainedearningsintoregisteredcapitalandthathe

BankwilincreaseRMB3.0bilioncapitalincashtoCITICFinancialLeasing.Uponcompletion

ofthecapitalincrease,theregisteredcapitalofCITICFinancialLeasingwilincreasefrom

RMB4.0biliontoRMB10.0bilion,andtheBankwilstilhold100percent.ofthesharesof

CITICFinancialLeasing.

ShareTransferbetwenControlingShareholderandItsPersonsActinginConcert

On27February2025,theregistrationofthetransferoftheBank’sHsharestoCITICFinancial

HoldingsfromitspersonsactinginconcertMetalLinkLimitedandFortuneClasInvestments

Limitedwascompleted.Aftercompletionofthesharetransfers,CITICFinancialHoldingsheld

36,028,393,412shares(including33,264,829,933Asharesand2,763,563,479Hshares)ofthe

Bank,acountingfor64.79percent.

oftheBank’stotalsharecapital;thenumberand

percentageofsharesCITICFinancialHoldingsanditspersonsactinginconcertcolectively

heldintheBankremainedunchanged;MetalLinkLimitedandFortuneClasInvestments

LimitednolongerheldtheBank’sharesoractedinconcertwithCITICFinancialHoldings.

DelistingofConvertibleBonds

InMarch2025,theRMB40.0bilionworthofA-shareconvertiblebondsisuedbytheBankin

March2019wasdelisteduponmaturity,recordingatotalofRMB39,943,149,000ofconvertible

bondsconvertedinto6,710,365,691sharesandintotalofRMB63,104,610redemedupon

maturity.

QuarterlyFinancialInformationasatandfortheThreMonthsEnded31March2025

On29April2025,theGroupanounceditsunauditedfinancialresultsasatandforthethre

monthsended31March2025(the“FirstQuarterlyReport”).TheGroupalsoreported

aditionalfinancialandoperatingindicators.Theunauditedconsolidatedquarterlyinterim

financialinformationasatandforthethremonthsended31March2024and2025setforthin

theFirstQuarterlyReporthasnotbenauditedoreviewedbytheBank’sauditors.

Consequently,suchconsolidatedquarterlyinterimfinancialinformationandtheFirstQuarterly

Reportshouldnotberelieduponbyinvestorstoprovidethesamequalityofinformation

asociatedwithinformationthathasbensubjectoanauditoreview.

Theshareholdingpercentageaftercompletionofthesharetransferwascalculatedbasedonthetotalsharecapital

oftheBank(55,607,461,451shares)asat27February2025.

Thefolowingtablesetsforth,fortheperiodsindicated,theGroup’sunauditedconsolidated

statementofprofitorlosandothercomprehensiveincome.

ForthePeriodofThreMonths

Ended31March

(Unaudited)(Unaudited)

(RMBinmilions)

Interestincome

78,73173,133

Interestexpense

(43,771)(37,456)

Netinterestincome

34,96035,677

Feandcomisionincome

9,38910,309

Feandcomisionexpense

(1,013)(1,873)

Netfeandcomisionincome

8,3768,436

Netradingain

1,6061,266

Netgainfrominvestmentsecurities

8,4335,791

Nethedgingincome

1(2)

Othernetoperatingincome

Operatingincome

53,56951,614

Operatingexpenses

(15,061)(14,567)

NetOperatingprofitbeforeimpairment

38,50837,047

Creditimpairmentloses

(16,819)(14,403)

Impairmentlosesonotherasets

(26)(14)

Shareofprofitofasociatesandjointventures

Profitbeforetax

21,91422,842

Incometaxexpense

(2,523)(3,059)

Profitfortheperiod

19,39119,783

Profitatributableto:

EquityholdersoftheBank

19,19119,509

Non-controlinginterests

ForthePeriodofThreMonths

Ended31March

(Unaudited)(Unaudited)

(RMBinmilions)

Othercomprehensiveincome,netoftax

i.Itemsthatwilnotbereclasifiedtoprofitorlos

(netoftax):

–Fairvaluechangesonfinancialinvestmentsdesignated

atfairvaluethroughothercomprehensiveincome

i.Itemsthatmaybereclasifiedsubsequentlytoprofitor

los(netoftax):

–Othercomprehensiveincometransferabletoprofitor

losunderequitymethod

17(41)

–Fairvaluechangesonfinancialasetsatfairvalue

throughothercomprehensiveincome

3,301(6,689)

–Creditimpairmentalowanceonfinancialasetsatfair

valuethroughothercomprehensiveincome

12(12)

–Exchangediferenceontranslationofinancial

statementsdenominatedinforeigncurency

952(491)

Othercomprehensiveincome,netoftax

4,297(7,213)

Totalcomprehensiveincomefortheperiod

23,68812,570

Totalcomprehensiveincomeatributeto:

EquityholdersoftheBank

23,48912,191

Non-controlinginterests

Earningspershareatributabletotheordinary

shareholdersoftheBank

Basicearningspershare(RMB)

0.390.36

Dilutedearningspershare(RMB)

0.380.36

Thefolowingtablesetsforth,asathedatesindicated,theGroup’sunauditedconsolidated

statementofinancialposition.

Asat

31December

Asat

31March

(Audited)(Unaudited)

(RMBinmilions)

Asets

Cashandbalanceswithcentralbanks

340,915368,270

Depositswithbanksandnon-bankfinancialinstitutions

128,193122,133

Preciousmetals

13,58031,371

Placementswithandloanstobanksandnon-bankfinancial

institutions

404,801446,523

Derivativefinancialasets

85,92964,735

Financialasetsheldunderesaleagrements

136,26599,702

Loansandadvancestocustomers

5,601,4505,747,735

FinancialInvestments

–Atfairvaluethroughprofitorlos

647,398653,867

–Atamortisedcost

1,118,9891,123,392

–Atfairvaluethroughothercomprehensiveincome

849,781956,456

–Designatedatfairvaluethroughothercomprehensive

income

4,7024,727

Investmentsinasociatesandjointventures

7,3497,518

Investmentproperties

Property,plantandequipment

46,51651,877

Right-of-useasets

11,03511,015

Intangibleasets

3,4192,826

Godwil

Deferedtaxasets

54,13056,440

Otherasets

76,733105,157

Totalasets

9,532,7229,855,268

Asat

31December

Asat

31March

(Audited)(Unaudited)

(RMBinmilions)

Liabilities

Borowingsfromcentralbanks

124,151109,173

Depositsfrombanksandnon-bankfinancialinstitutions

968,492822,554

Placementsfrombanksandnon-bankfinancial

institutions

88,550104,422

Financialiabilitiesatfairvaluethroughprofitorlos

1,7192,754

Derivativefinancialiabilities

81,16266,846

Financialasetsoldunderepurchaseagrements

278,003384,067

Depositsfromcustomers

5,864,3116,111,779

Acruedstafcosts

20,31818,430

Taxespayable

7,6457,375

Debtsecuritiesisued

1,224,0381,333,636

Leaseliabilities

10,86110,931

Provisions

9,99010,174

Deferedtaxliabilities

Otherliabilities

46,07846,228

Totaliabilities

8,725,3579,028,427

Equity

Sharecapital

54,39755,645

Otherequityinstruments

105,499104,948

Capitalreserve

89,28695,566

Othercomprehensiveincome

16,8629,544

Surplusreserve

67,62967,629

Generalreserve

111,723111,801

Retainedearnings

343,868363,299

Totalequityatributabletoequityholdersof

theBank

789,264808,432

Non-controlinginterests

18,10118,409

Totalequity

807,365826,841

Totaliabilitiesandequity

9,532,7229,855,268

Thefolowingtablesetsforth,fortheperiodsindicated,theGroup’sunauditedconsolidated

statementofcashflows.

ForthePeriodofThreMonths

Ended31March

UnauditedUnaudited

(RMBinmilions)

Operatingactivities

Profitbeforetax

21,91422,842

Adjustmentsfor:

–Revaluationgainoninvestments,derivativesand

investmentproperties

(1,973)2,135

–Investmentgains

(5,707)(5,815)

–Netloses/(gains)ondisposalofproperty,plantand

equipment,intangibleasetsandotherasets

(17)(4)

–Unrealisedforeignexchange(gains)/loses

(1,044)1,290

–Creditimpairmentloses

16,81914,403

–Impairmentlosesonotherasets

–Depreciationandamortisation

1,324963

–Interestexpenseondebtsecuritiesisued

6,8996,514

–Depreciationofright-of-useasetsandinterestexpense

onleaseliabilities

–Incometaxpaid

(3,248)(3,052)

Subtotal

35,87640,138

Changesinoperatingasetsandliabilities:

Decrease/(Increase)inbalanceswithcentralbanks

30,3192,111

Decreaseindepositswithbanksandnon-bankfinancial

institutions

14,1617,398

Increaseinplacementswithandloanstobanksand

non-bankfinancialinstitutions

(55,671)(67,495)

Decrease/(Increase)infinancialasetsheldfortrading

25,77518,102

Decrease/(Increase)infinancialasetsheldunderesale

agrements

28,33238,017

Increaseinloansandadvancestocustomers

(91,560)(158,922)

Increase/(Decrease)inborowingsfromcentralbanks

3,918(14,042)

Decreaseindepositsfrombanksandnon-bankfinancial

institutions

(20,641)(145,591)

(Decrease)/Increaseinplacementsfrombanksandnon-bank

financialinstitutions

(10,872)15,838

(Decrease)/Increaseinfinancialiabilitiesatfairvalue

throughprofitorlos

(345)1,048

Increaseinfinancialasetsoldunderepurchase

agrements

(249,248)106,218

Increaseindepositsfromcustomers

11,750251,883

Increaseinotheroperatingasets

(48,728)(46,864)

Decreaseinotheroperatingliabilities

(6,205)(9,846)

Subtotal

(369,015)(2,145)

Netcashflowsfromoperatingactivities

(333,139)37,993

ForthePeriodofThreMonths

Ended31March

UnauditedUnaudited

(RMBinmilions)

Investingactivities

Procedsfromdisposalandredemptionofinvestments

875,269979,473

Procedsfromdisposalofproperty,plantandequipment,

landuserights,andotherasets

Cashreceivedfromequityinvestmentincome

Paymentsonacquisitionofinvestments

(854,688)(1,107,828)

Paymentsonacquisitionofproperty,plantandequipment,

landuserightsandotherasets

(1,795)(8,272)

Netcashflowsfrominvestingactivities

18,942(136,355)

Financingactivities

Cashreceivedfromdebtsecuritiesisued

531,114388,079

Cashpaidforedemptionofotherequityinstruments

(279,165)271,320)

Interestpaidondebtsecuritiesisued

(6,584)(5,148)

Cashpaidfordividends

(70)(2,593)

Cashpaidinconectionwithotherfinancingactivities

(774)(752)

Netcashflowsfromfinancingactivities

244,521108,266

Net(decrease)/increaseincashandcashequivalents

(69,676)9,904

Cashandcashequivalentsasat1January

249,002262,779

Efectofexchangeratechangesoncashandcash

equivalents

2,333(859)

Cashandcashequivalentsasat31March

181,659271,824

Cashflowsfromoperatingactivitiesinclude:

Interestreceived

78,32072,823

Interestpaid,notincludinginterestpaidondebtsecurities

isued

(35,468)(32,452)

Analysisofcapitaladequacyratiosasat31March2025

Asat31March2025,theGrouprecordedacoretier-onecapitaladequacyratiof9.45per

cent.,atier-onecapitaladequacyratiof10.90percent.,andacapitaladequacyratiof12.90

percent.TheBankrecordedacoretier-onecapitaladequacyratiof9.15percent.,atier-one

capitaladequacyratiof10.68percent.,andacapitaladequacyratiof12.78percent.

DIRECTORS,SUPERVISORSANDSENIORMANAGEMENT

DIRECTORS

ThefolowingtablesetsoutcertaininformationrelatingtotheBank’sdirectorsasathedateof

thisOferingCircular.

NamePositionTermofapointment

ExecutiveDirectors

FangHeying

Chairman,ExecutiveDirectorSeptember2018–June2027

LuWei

ExecutiveDirector,PresidentJune2025–June2027

HuGang

ExecutiveDirector,Vice

President,ChiefRisk

Oficer

October2024–June2027

Non-executiveDirectors

HuangFang

Non-executivedirectorNovember2016–June2027

WangYankang

Non-executivedirectorApril2021–June2027

IndependentNon-executive

Directors

LiuTszBunBenet

Independentnon-executive

director

June2022–June2027

ZhouBowen

Independentnon-executive

director

August2023–June2027

WangHuacheng

Independentnon-executive

director

October2023–June2027

SongFangxiu

Independentnon-executive

director

October2023–June2027

NopotentialconflictsofinterestexistbetwenthedutiesoftheBank’sdirectorsandtheir

privateinterestsand/orotherduties.

ExecutiveDirectors

Mr.FangHeying(方合英)isthesecretaryofthePartyComite,chairmanandexecutive

directoroftheBank.Mr.FanghaservedasdeputygeneralmanagerofCITICGroup,deputy

generalmanagerandmemberofthexecutivecomiteofCITICLimited,andeputygeneral

managerofCITICorporationLimitedsinceDecember2020,andasaPartyComitemember

ofCITICGroupsinceNovember2020.Mr.FangservedaspresidentoftheBankfromMarch

2019toApril2023.Priortothat,Mr.FangwaspresidentoftheBank’sSuzhouBranch,

presidentoftheBank’sHangzhouBranch,andheadoftheBank’sfinancialmarketsbusines,

vicepresidentandChiefFinancialOficeroftheBank.Beforethat,hewasateacheratZhejiang

BankingSchol,asistantgeneralmanagerofthecreditdepartmentofthexperimentalurban

creditcoperativeofZhejiangBankingSchol.Mr.Fanghasmorethan30yearsofexperience

intheChinesebankingindustry.HegraduatedfromHunanColegeofFinanceandEconomics

(curentlyHunanUniversity)andatainedwithamaster’sdegreinbusinesadministrationfor

seniormanagementmemberfromPekingUniversity.Heisasenioreconomistwithful

profesorship.

Mr.LuWei(芦苇)isthedeputysecretaryofthePartyComite,presidentandexecutive

directoroftheBank.Mr.LuhaservedasecretaryofthePartyComite,generalmanager,

vicechairmanandchairmanofCITICTrustCo.,Ltd.fromOctober2022toFebruary2025.

FromJanuary2017toOctober2022,hesucesivelyservedasBoardsecretary,Boardsecretary

(businesdirectorlevel),businesdirector,amemberofPartyComiteandvicepresidentof

theBank,andconcurentlyheldthepositionsofdeputyheadofthepreparatoryteamforthe

establishmentofHongKongBranch,generalmanageroftheAsetandLiabilityDepartmentof

HeadOfice,deputyheadofpreparatoryteamforthestablishmentoftheJSCAltynBankanda

directorofJSCAltynBank,andsecretaryofthePartyComiteandpresidentofShenzhen

BranchoftheBank.FromJanuary1997toJanuary2017,Mr.LuworkedatheBusines

Department(curentlyBeijingBranch)andtheHeadOfice,andsucesivelyservedasa

memberofthePartyComite,asistantgeneralmanager,andeputygeneralmanagerofthe

BusinesDepartmentoftheHeadOfice,deputygeneralmanager(presiding)andgeneral

manageroftheBudgetandFinanceDepartment(curentlyFinanceandAcountingDepartment)

oftheHeadOficeaswelasgeneralmanagerofAsetandLiabilityDepartmentoftheHead

Ofice.Priortothat,heworkedinBeijingYouthIndustrialGroupCorporation.Mr.Luhas25

yearsofexperienceintheChinesebankingindustryandheisacertifiedpublicacountantof

thePRC,HongKongSARandAustralia.Heholdsamaster’sdegreinacountingfromDeakin

UniversityinAustralia.

Mr.HuGang(胡罡)isaPartyComitemember,executivedirector,vicepresidentandChief

RiskOficeroftheBank.Mr.HuconcurentlyservesasadirectorofCNCBI.Heusedtobe

deputyheadofthepreparatoryteamforthestablishmentoftheBank’sChangshaBranch,Party

ComitememberandvicepresidentofChangshaBranch;PartyComitemember,vice

president,secretaryofPartycomiteandpresidentoftheBank’sChongqingBranch;secretary

ofPartycomiteandpresidentoftheBank’sShanghaiBranch;ChiefRiskOficerandheadof

thewholesalebusinesoftheBank.Priortothat,hesucesivelyworkedforthePolitical

DepartmentofHunanProvincialProcuratorate,andservedasdeputysectionchiefathe

PersonelDepartmentofHunanProvincialPartyComiteOfice,asistantgeneralmanager

andgeneralmanagerofBeihaixiangPropertiesDevelopmentCompany,vicechairmanofHongdu

EnterpriseCompany(bothafiliatedtoHunanZhongliIndustrialGroupCo.,Ltd.)andchairman

ofChangshaXiangcaiUrbanCreditCoperativeinHunanProvince.Mr.Huhasnearly30years

ofexperienceintheChinesebankingindustry.HegraduatedfromHunanUniversitywitha

doctoraldegreineconomicsandisasenioreconomist.

Non-executiveDirectors

Ms.HuangFang(黄芳)isanon-executivedirectoroftheBank.Ms.Huanghaservedasa

directorofZhejiangXinhuGroupCo.,Ltd.sinceAugust2013.Previously,Ms.Huangworkedat

AgriculturalBankofChina(ABC)whereshesucesivelyservedasdeputygeneralmanagerof

theinternationalbusinesdepartmentatheZhejiangProvincialBranchbusinesdepartment,

vicepresident(presiding)ofHangzhouBaojiaosub-branch,deputygeneralmanagerofthe

corporatebankingunitatheZhejiangProvincialBranchbusinesdepartment,deputygeneral

manager(presiding)andgeneralmanagerofthepersonalfinanceunitatheZhejiangProvincial

Branchbusinesdepartment;andwasvicepresidentandchiefinancialoficerofXinhu

HoldingsLimited,adirectorofXinhuZhongbaoCo.,Ltd.,andvicepresidentandchiefinancial

oficerofZhejiangXinhuGroupCo.,Ltd.Ms.HuangraduatedfromZhejiangUniversitywith

abachelor’sdegreinlaw.Sheisanintermediateconomist.

Mr.WangYankang(王彦康)isanon-executivedirectoroftheBank.Mr.Wanghaservedas

chiefofState-ownedAsetsManagementDivisionoftheFinancialManagementandSupervision

Department(AuditDepartment)oftheStateTobacoMonopolyAdministrationsinceAugust

2016.Previously,heworkedatheFinancialManagementandSupervisionDepartment(Audit

Department)oftheStateTobacoMonopolyAdministrationwherehesucesivelyservedas

cadre,deputychiefstafmember,andchiefstafmemberoftheAuditDivision;deputychiefof

theFirstAuditDivision;deputychiefoftheState-ownedAsetsManagementDivision;and

consultantandeputychiefoftheState-ownedAsetsManagementDivision.Hewasonce

temporarilyapointedasthedeputycountychiefofYunxiCounty,HubeiProvince.Priortothat,

Mr.WangworkedatheFinanceDepartmentofTsinghuaUniversityandwasasignedbythe

NationalAuditOficetotheAuditBureauoftheStateTobacoMonopolyAdministration.Mr.

WangraduatedfromRenminUniversityofChinawithabachelor’sdegreinacounting,and

obtainedamaster’sdegreinacountingfromBeijingTechnologyandBusinesUniversity.He

isasenioracountant.

IndependentNon-executiveDirectors

Mr.LiuTszBunBenet(廖子彬)isanindependentnon-executivedirectoroftheBank.Mr.

LiuisnowanhonoraryconsultantoftheHongKongBusinesAcountantsAsociation,andan

independentdirectorofShenzhenWeBankCo.,Ltd.,PingAnLifeInsuranceCompanyofChina,

Ltd.,ChinaVankeCo.,Ltd.andChinaPetroleum&ChemicalCorporation.Heusedtobean

acountingconsultingexpertoftheMinistryofFinanceofChinandaHongKongmemberof

the14thsesionofTianjinMunicipalComiteoftheChinesePeople’sPoliticalConsultative

Conference.Mr.LiuhadservedasamanagingpartnerofauditofKPMGHuazhenLPChina,a

managingpartnerofauditofKPMGAsiaPacific,achairmanofKPMGChinandasenior

advisorofKPMGHongKong.Mr.LiugraduatedfromtheLondonScholofEconomicsand

PoliticalSciencewithabachelor’sdegreineconomics.Hehasthecharteredacountant

qualificationinEnglandandWalesaswelastheHongKongInstituteofCertifiedPublic

Acountantseniorfelowship.

Mr.ZhouBowen(周伯文)isanindependentnon-executivedirectoroftheBank.Mr.Zhouisan

IEFelow/CAIFelow,hasbenalong-tenuredprofesoratheDepartmentofElectronic

EngineringandaprofesorofHuiyanSymposiumofTsinghuaUniversitysinceMay2022,and

haservedasdirectorandchiefscientistofShanghaiArtificialInteligenceLaboratorysince

April2024.Previously,hewasthepresidentoftheBasicResearchInstituteofArtificial

InteligenceatIBM’sheadquartersinNewYork,USA,ChiefScientistofIBMWatson,andIBM

DistinguishedEnginerfromMarch2003toSeptember2017;Vicepresidentandseniorvice

presidentofJD.com,Inc.,chairmanofTechnologyComiteofJD.com,Inc.,presidentofJD

Cloud&AI,andpresidentofJDAIResearchInstitutefromSeptember2017toNovember2021;

directorofKingdeInternationalSoftwareGroupCo.Ltd.fromMarch2020toDecember2021;

andhefoundedBeijingXianyuanTechnologyCo.,Ltd.inDecember2021.Graduatedfromthe

UniversityofColoradowithadoctoratedegreinelectronicandcomputerenginering,Mr.

ZhouhasbenengagedinAIbasictheoryandcuting-edgetechnologyresearchformorethan

20years.Hehaslong-timeacademicresearchexperienceinthenewgenerationofinformation

technologyrepresentedbyartificialinteligence,andacumulatedanabundanceofhands-on

experienceinthefieldofInternet.

Mr.WangHuacheng(王化成)isanindependentnon-executivedirectoroftheBank.He

curentlyservesasaprofesorandPhDsupervisoratheDepartmentofFinanceofRenmin

BusinesSchol.Heisoneofthefirstbatchofoutstandingscholars(Post-Aprofesor)

apointedbyRenminUniversityofChina,astate-levelfamousteacher,thedeputydirectorof

theChinaNationalMPAcEducationSteringComite,vicechairmanofAcountingSociety

ofChina,vicechairmanofCostResearchSocietyofChina,andanindependentdirectorof

TsinghuaTongfangCo.,Ltd.,WanhuaChemicalGroupCo.,Ltd.andBeijingCapital

InternationalAirportCompanyLimited.Thepositionshepreviouslyheldincludedeputydirector

ofAcountingDepartmentandeputyDeanofthebusinescholatRenminUniversityof

ChinaswelasanindependentdirectorofmanycompaniesuchasHuataiSecuritiesCo.,Ltd.,

EFundManagementCo.,Ltd.,ChinaRailwayConstructionCorporationLimited,BOE

TechnologyGroupCo.,Ltd.,HuaXiaBankCo.,Ltd.,ChinaGreatWalSecuritiesCo.,Ltd.,etc.

GraduatedfromRenminUniversityofChinawithadoctoratedegreinmanagement(majoring

inacounting),Mr.Wanghasabundantresearchachievementsandextensivexperienceinfiscal,

acounting,andfinancialfields.

Ms.SongFangxiu(宋芳秀)isanindependentnon-executivedirectoroftheBank.Sheis

curentlydeputysecretaryofthePartyComiteoftheScholofEconomics,profesorand

PhDsupervisoratheDepartmentofFinance,directoroftheChinaCenterforFinancialand

InvestmentResearch,PekingUniversityandindependentdirectorofChinaSilverGroup

Limited.Ms.SonghasbenteachingatheScholofEconomics,PekingUniversitysince2003.

Sheonceworkedaslecturer,asociateprofesor,PartyComitememberoftheScholof

Economics,deputydirectoroftheDepartmentofFinanceandasistantothedeanoftheSchol

ofEconomics.From2006to2007,Ms.SongwasavisitingscholaratheUniversityof

Minesota.Ms.SongraduatedfromtheDepartmentofFinanceoftheScholofEconomics,

PekingUniversitywithadoctoraldegre.Heresearchfocusesonmonetarytheoriesand

policies,internationalfinanceandasetpricing.Shepublishedmorethan50academicpaperson

keyjournalsofeconomics,boksuchasAsetAlocationMechanismsandInterestRate

LiberalizationinChina’sTransitionEconomyandComparisonofCurencyInternationalization

BetwenChinandtheUnitedStatesandanumbertranslatedboks.Shehostedthreprovincial

orministerialevelresearchsubjectsintheNationalSocialScienceFundProjectandtheBeijing

PhilosophyandSocialScienceProjectandparticipatedinanumberofnationalandprovincial

levelresearchsubjects.

SUPERVISORS

ThefolowingtablesetsoutcertaininformationrelatingtotheBank’supervisorsasathedate

ofthisOferingCircular.

NamePositionTermofapointment

WeiGuobin

ExternalsupervisorMay2020–May2026

SunQixiang

ExternalsupervisorJune2021–June2027

LiRong

Shareholderepresentative

supervisor

January2021–June2027

ChengPusheng

Employerepresentative

supervisor

March2022–June2027

ZhangChun

EmployeRepresentative

Supervisor

June2024–June2027

ZengYufang

Employerepresentative

supervisor

September2017–June20247

Mr.WeiGuobin(魏国斌)isanexternalsupervisoroftheBank.Mr.Weisconcurentlyan

externalsupervisorofBankofHengshuiCo.,Ltd.HeservedasaboardirectorofBOCHong

KongInvestmentCo.,Ltd.andchairmanoftheboardofsupervisorsofZhongyiShanyuan

(Beijing)TechnologyCo.,Ltd.Priortothat,heworkedatBankofChinaLimitedandserved

sucesivelyasasistantpresidentandvicepresidentofHebeiBranch,presidentofShanxi

Branch,generalmanagerofthePersonalBankingDepartmentoftheHeadOfice,andpresident

ofHunanBranch.Mr.WeigraduatedfromHebeiBankingScholwithadegreinfinanceand

heisasenioreconomist.

Ms.SunQixiang(孙祁祥)isanexternalsupervisoroftheBank.Ms.Sunisnowaprofesor

andPhDsupervisorofScholofEconomics,PekingUniversity.Ms.SunistheC.V.Star

Profesor,thechiefexpertoftheprojectsponsoredbytheNationalSocialScienceFundof

China,andthexpertreceivingSpecialGovernmentAlowancesfromtheStateCouncil.Ms.

SunconcurentlyservesasmemberoftheU.S.-basedInternationalInsuranceSociety(IS)

BoardandindependentdirectorofChinaTaipingInsuranceGroupLtd.Previously,shewasa

deanoftheScholofEconomicsofPekingUniversity,chairpersonoftheAsiaPacificRiskand

InsuranceAsociation,visitingprofesoratHarvardUniversity,andindependentdirectorof

AVICIndustry-FinanceHoldingsCo.,Ltd.,BankofChinaInvestmentManagementCo.,Ltd.and

ChinaDevelopmentBankSecuritiesCo.,Ltd.Ms.SungraduatedfromtheScholofEconomics

ofPekingUniversitywithadoctoratedegreineconomics.

Ms.LiRong(李蓉)istheshareholderepresentativesupervisoroftheBank.Ms.Liscurently

thedirectoroftheBoardofDirectorsoficeandirectoroftheBoardofSupervisorsOficeof

theBank.Previously,sheservedasgeneralmanagerofRetailBankingDepartment,asistant

presidentandvicepresidentoftheBank’sChongqingBranch,generalmanageroftheInterbank

BusinesDepartmentandgeneralmanageroftheComplianceDepartmentoftheBank’sHead

Ofice.Priortothat,Ms.LiworkedatheChongqingBranchofChinaMerchantsBankCo.,

Ltd.,servingsucesivelyasdeputydirectoroftheGeneralOfice,generalmanagerofthe

PersonalBankingDepartment,generalmanageroftheBusinesDepartment,generalmanagerof

theRetailBankingDepartment,etc.Ms.LigraduatedfromChongqingUniversitywitha

master’sdegreofbusinesadministration.Sheisasenioreconomistwithfulprofesorship.

Mr.ChengPusheng(程普升)isanemployerepresentativesupervisoroftheBank.Mr.Cheng

isnowthegeneralmanageroftheAuditDepartmentoftheBank.Previously,Mr.Chengwas

asistantgeneralmanagerandeputygeneralmanageroftheBudgetandFinanceDepartment,

generalmanageroftheCentralizedPurchasingCenter,generalmanageroftheAuditDepartment,

andemployerepresentativesupervisoroftheBank,presidentofTaiyuanBranchoftheBank.

Mr.ChengraduatedfromShanxiUniversityofFinanceandEconomics(nowXi’anJiaotong

University)withamaster’sdegreineconomics,andisasenioreconomist.

Mr.ZhangChun(张纯)isanemployerepresentativesupervisoroftheBank.Mr.Zhangis

curentlythedeputygeneralmanager(presiding)oftheBank’sCultureandLaborUnion

Department.Mr.ZhangonceservedasdeputydirectoroftheBank’sGeneralOficeand

secretaryoftheComiteforDisciplinaryInspectionofBeijingBranch.Priortothat,Mr.

ZhangworkedinthePresident’sOficeofChinaHuarongAsetManagementCorporation

(curentlyChinaCITICFinancialAsetManagementCo.,Ltd.)asanasistantdirectorand

deputydirector,andwasathelevelofasistantdirectorofBoardofDirectors’oficeofCITIC

Group.Mr.ZhangraduatedfromCentralUniversityofFinanceandEconomicswithamaster’s

degreineconomics,andisasenioreconomist.

Ms.ZengYufang(曾玉芳)isanemployerepresentativesupervisoroftheBank.Ms.Zeng

curentlyservesasvicepresidentoftheBank’sGuangzhouBranch.Earlier,shewasdeputy

generalmanagerandgeneralmanageroftheacountingdepartmentoftheBank’sShenzhen

Branch,andasistantpresidentandvicepresidentofthebranch.Priortothat,shewasasistant

chiefofthefinanceandacountingdivisionofStateDevelopmentBankShenzhenBranch.Ms.

ZengraduatedfromEast-WestUniversityoftheU.S.withamaster’sdegreinbusines

administration.

SENIORMANAGEMENT

ThefolowingtablesetsoutcertaininformationrelatingtotheBank’seniormanagementasat

thedateofthisOferingCircular.

NamePositionTermofapointment

LuWei

Executivedirector,PresidentSinceJune2025

HuGang

Executivedirector,Vice

President,ChiefRisk

Oficer

SinceMay2017

XieZhibin

VicePresidentSinceJune2019

HeJingsong

VicePresidentSinceOctober2024

GuLingyun

VicePresidentSinceMarch2025

LuJingen

BusinesDirectorSinceAugust2018

ZhangQing

BoardsecretarySinceJuly2019

Mr.LuWei(芦苇)–Pleasereferto“Directors”formoredetails.

Mr.HuGang(胡罡)–Pleasereferto“Directors”formoredetails.

Mr.XieZhibin(谢志斌)isaPartyComitememberandvicepresidentoftheBank.Mr.Xie

servesasdirectorofCNCBInvestmentandisconcurentlyadirectorofCITICFoundationfor

ReformandDevelopmentStudies.Previously,hewasaPartyComitememberandasistant

generalmanagerofChinaExportCreditInsuranceCorporation(duringwhichetemporarily

workedasastandingmemberofthePartyComiteandDeputyMayorofHohotCityin

InerMongoliaAutonomousRegion),andPartyComitememberandsecretaryofthe

ComiteforDisciplinaryInspectionofChinaEverbrightGroupCo.,Ltd.Priortothat,Mr.

Xieservedasasistantgeneralmanager,deputygeneralmanagerandgeneralmanagerofthe

humanresourcesdepartment(asistantdirector,deputydirectorandirectoroftheorganization

departmentunderthePartyComite)ofChinaExportCreditInsuranceCorporation,Party

comitesecretaryofthecompany’sShenzhenBranch,andpersonincharge,Partycomite

secretaryandgeneralmanagerofthecompany’sHebeiprovincialbranch.Mr.Xiegraduated

fromRenminUniversityofChinawithadoctoratedegreineconomics.Heisasenior

economist.

Mr.HeJingsong(贺劲松)isaPartyComitememberandvicepresidentoftheBank.Mr.He

concurentlyservesasecretaryofPartyComiteandpresidentofBeijingBranchofthe

Bank.Hepreviouslyservedasvicepresident(presiding)andpresidentofDongchengenjie

Sub-branch,generalmanageroftheCorporateBankingDepartmentofChengduBranch,asistant

topresident,vicepresident,secretaryofthePartyComiteandpresidentofChengduBranch,

generalmanageroftheAsetPreservationDepartmentoftheHeadOfice,andsecretaryofParty

ComiteandpresidentofShanghaiBranchoftheBank.Priortothat,Mr.Heworkedat

SichuanRuralTrustandInvestmentCompany.Hehas27years’experienceinChina’sbanking

industry.HegraduatedfromSouthwesternUniversityofFinanceandEconomicsandobtained

master’sdegresineconomics.Heisasenioreconomist.

Mr.GuLingyun(谷凌云)isaPartyComiteMemberandvicepresidentoftheBank.Mr.Gu

usedtoserveastheasistantpresidentandvicepresident(presiding)ofJiefangsub-branchof

HangzhouBranch;vicepresident(presiding)andpresidentofQianjiangsub-branchofHangzhou

Branch;executivedeputygeneralmanageroftheBusinesDepartmentofHangzhouBranch;

asistantpresident,PartyComitemember,chiefriskoficerandvicepresidentofHangzhou

Branch;deputygeneralmanager(presiding)oftheInclusiveFinanceDepartmentoftheHead

Ofice;PartyComitemember,vicepresident(presiding),secretaryofthePartyComite

andpresidentoftheAsetManagementBusinesCenteroftheHeadOficeoftheBank;and

secretaryofthePartyComite,presidentandchairmanofCITICWealthManagement

CorporationLimited.Mr.Guhasmorethan20yearsofexperienceintheChinesebanking

industry.HegraduatedfromtheScholofInternationalBusinesandEconomicsofZhejiang

Universitywithabachelor’sdegreinEconomics.

Mr.LuJingen(陆金根)isbusinesdirectoroftheBank.Mr.Lupreviouslyservedasthe

deputychiefofthecorporatecreditdivision,presidentoftheOlympicVilagesub-branch,

presidentoftheCITICInternationalBuildingsub-branch,andPartycomitememberand

asistantgeneralmanageroftheBusinesDepartmentoftheHeadOficeoftheBank(curently

BeijingBranch);asistantgeneralmanager(presiding)oftheCorporateBankingDepartmentof

theBank,thesecretaryofPartycomiteandpresidentofKunmingBranch,ChangshaBranch

andNanjingBranchoftheBank,andgeneralmanageroftheCorporateBankingDepartment

(RuralRevitalizationDepartment)oftheBank.Mr.Luhas30years’experienceintheChinese

bankingindustry.Hereceivedhismaster’sdegreineconomicsfromRenminUniversityof

China,EMBAdegrefromPekingUniversityandoctoratedegreinmanagementfromCentral

SouthUniversity.Heisasenioreconomist.

Ms.ZhangQing(张青)isBoardsecretaryandcompanysecretaryoftheBank.Ms.Zhang

concurentlyservesasthegeneralmanageroftheRiskManagementDepartmentoftheBank.

Priortothat,Ms.Zhangservedasasistantgeneralmanager,deputygeneralmanager

(presiding),andgeneralmanageroftheCreditManagementandAprovalDepartmentofthe

Bank’sXi’anBranch,Partycomitemember,asistantpresident,andvicepresidentofthe

branch,generalmanageroftheCreditManagementDepartmentoftheBank,headofthe

OrganizingDepartmentofthePartyComiteandgeneralmanageroftheHumanResources

ManagementDepartmentoftheBank,andaboardirectorofCITICFinancialLeasingand

CNCBInvestmentLimited.Priortothat,sheworkedatheShanxiBranchofIndustrialand

ComercialBankofChina,sucesivelyworkingontheacounting,planing,credit

managementinthesub-branchandprojectreviewinthebranch.Shehasover30years’

profesionalexperienceintheChinesebankingindustry.ShegraduatedfromShanxiInstituteof

MechanicalEnginering(nowXi’anUniversityofTechnology)withamaster’sdegrein

enginering.Ms.Zhangisasenioreconomist.

BOK-ENTRYCLEARANCESYSTEMS

Theinformationsetoutbelowisubjectoanychangeinoreinterpretationoftherules,

regulationsandproceduresofEuroclear,ClearstreamorCMU(together,the“Clearing

Systems”)curentlyinefect.TheinformationinthisectionconcerningtheClearingSystems

hasbenobtainedfromsourcesthatherelevantIsuerandtheBankbelievestobereliable,but

noneoftheIsuers,theBankoranyDealertakesanyresponsibilityfortheacuracythereof.

InvestorswishingtousethefacilitiesofanyoftheClearingSystemsareadvisedtoconfirmthe

continuedaplicabilityoftherules,regulationsandproceduresoftherelevantClearingSystem.

NonetheIsuers,theBankoranyotherpartytotheFiscalAgencyAgrementwilhaveany

responsibilityorliabilityforanyaspectoftherecordsrelatingto,orpaymentsmadeonacount

of,beneficialownershipinterestsintheNotesheldthroughthefacilitiesofanyClearingSystem

orformaintaining,supervisingoreviewinganyrecordsrelatingto,orpaymentsmadeon

acountof,suchbeneficialownershipinterests.

BOK-ENTRYSYSTEMS

EuroclearandClearstream

EuroclearandClearstreameacholdsecuritiesforitscustomersandfacilitatestheclearance

andsetlementofsecuritiestransactionsbyelectronicbok-entrytransferbetwentheir

respectiveacountholders.EuroclearandClearstreamprovidevariouservicesincluding

safekeping,administration,clearanceandsetlementofinternationalytradedsecuritiesand

securitieslendingandborowing.EuroclearandClearstreamalsodealwithdomesticsecurities

marketsinseveralcountriesthroughestablishedepositaryandcustodialrelationships.

EuroclearandClearstreamhavestablishedanelectronicbridgebetwentheirtwosystems

acroswhichtheirespectiveparticipantsmaysetletradeswitheachother.

EuroclearandClearstreamcustomersareworld-widefinancialinstitutions,including

underwriters,securitiesbrokersandealers,banks,trustcompaniesandclearingcorporations.

IndirectacestoEuroclearandClearstreamisavailabletotherinstitutionsthatclearthrough

ormaintainacustodialrelationshipwithanacountholderofeithersystem.

CMU

TheCMUisacentraldepositaryserviceprovidedbytheCentralMoneymarketsUnitofthe

HKMAforthesafecustodyandelectronictradingbetwenthemembersofthiservice(“CMU

Members”)ofExchangeFundBilsandNotesClearingandSetlementServicesecuritiesand

capitalmarketsinstruments(together,“CMUInstruments”)whicharespecifiedintheCMU

ReferenceManualascapableofbeingheldwithintheCMU.

TheCMUisonlyavailabletoCMUInstrumentsisuedbyaCMUMemberorbyapersonfor

whomaCMUMemberactsasagentforthepurposesoflodginginstrumentsisuedbysuch

persons.MembershipoftheCMUisopentoalfinancialinstitutionsregulatedbytheHKMA,

SecuritiesandFuturesComision,InsuranceAuthorityorMandatoryProvidentFundSchemes

Authority.ForfurtherdetailsonthefulrangeoftheCMU’scustodialservices,pleasereferto

theCMUReferenceManual.

TheCMUhasanincomedistributionservicewhichisaserviceoferedbytheCMUtofacilitate

thedistributionofinterest,couponor“redemptionproceds”(colectively,the“income

proceds”)byCMUMemberswhoarepayingagentstothelegaltitleholdersofCMU

InstrumentsviatheCMUsystem.Furthermore,theCMUhasacorporateactionplatformwhich

alowsanisuer(oritsagent)tomakeananouncement/notificationofacorporateactionand

noteholderstosubmitherelevantcertification.Forfurtherdetails,pleaserefertotheCMU

ReferenceManual.

AninvestorholdinganinteresthroughanacountwitheitherEuroclearorClearstreaminany

NotesheldintheCMUwilholdthatinteresthroughtherespectiveacountswhichEuroclear

andClearstreameachavewiththeCMU.

TRANSFERSOFNOTESREPRESENTEDBYREGISTEREDGLOBALNOTES

TransfersofanyinterestsinNotesrepresentedbyaRegisteredGlobalNotewithinEuroclear,

ClearstreamandtheCMUwilbefectedinacordancewiththecustomaryrulesandoperating

proceduresoftherelevantClearingSystem.Euroclear,ClearstreamandtheCMUhaveach

publishedrulesandoperatingproceduresdesignedtofacilitatetransfersofbeneficialinterestsin

RegisteredGlobalNotesamongacountholdersofEuroclear,ClearstreamandtheCMU.

However,theyareundernobligationtoperformorcontinuetoperformsuchprocedures,and

suchproceduresmaybediscontinuedorchangedatanytime.NoneoftheIsuers,theBank,the

PayingAgents,theRegistrarandtheDealerswilberesponsibleforanyperformanceby

Euroclear,ClearstreamortheCMUortheirespectiveacountholdersoftheirespective

obligationsundertherulesandproceduresgoverningtheiroperationsandnoneofthemwil

haveanyliabilityforanyaspectoftherecordsrelatingtorpaymentsmadeonacountof

beneficialinterestsintheNotesrepresentedbyRegisteredGlobalNotesorformaintaining,

supervisingoreviewinganyrecordsrelatingtosuchbeneficialinterests.

REGULATIONANDSUPERVISIONINTHEPRC

ThebankingindustryisheavilyregulatedinthePRC,withtherelevantPRCBanking

RegulatoryAuthorityandPBOCactingastheprincipalregulatoryauthorities.TherelevantPRC

BankingRegulatoryAuthorityisprimarilyresponsibleforsupervisingandregulatingbanking

institutions,andthePBOC,asthecentralbankofthePRC,isprimarilyresponsiblefor

formulatingandimplementingmonetarypolicies.Theaplicablelawsandregulationsgoverning

activitiesinthePRC’sbankingindustryconsistprincipalyoftheLawofPRConthePeople’s

BankofChina(the“PRCPBOCLaw”),thePRComercialBankingLaw(中华人民共和国商

业银行法),theLawofPRConRegulationofandSupervisionovertheBankingIndustry(中华

人民共和国银行业监督管理法),andtherulesandregulationspromulgatedthereunder.

PBOC

AsthecentralbankofthePRC,thePBOCisresponsibleforformulatingandimplementing

monetarypoliciesandmaintainingthestabilityofthePRCfinancialmarkets.

AcordingtothePBOCBankingLawandrelevantprovisions,thePBOCshalperformthe

folowingfunctionsandresponsibilities:(1)topromulgateandcaryoutheordersand

regulationsrelatedtoitsfunctionsandresponsibilities;(2)toformulateandimplementmonetary

policiesinacordancewithlaw;(3)toisueRenminbi(RMB)andcontrolitscirculation;(4)to

superviseandadministertheinterbanklendingmarketandtheinterbankbondmarket;(5)to

exercisecontroloforeignexchangeandsuperviseandadministertheinterbankforeign

exchangemarket;(6)tosuperviseandadministerthegoldmarket;(7)tohold,administerand

managethestateforeignexchangereserveandgoldreserve;(8)tomanagethestatetreasury;(9)

tomaintainthenormaloperationofthesystemformakingpaymentsandsetlingacounts;(10)

toguideandmakeplansforthefightagainstmoneylaunderinginthefinancialindustry,andto

beresponsibleformonitoringtheuseofthefundsearmarkedforthefightagainstmoney

laundering;(11)toberesponsibleforstatistics,investigation,analysisandforecasting

concerningthefinancialindustry;(12)toengageinrelevantinternationalfinancialoperationsin

itscapacityasthecentralbankofthestate;and(13)otherfunctionsandresponsibilities

prescribedbytheStateCouncil.

FormerCBIRC

FunctionsandPowers

EstablishedbymergingtheformerCBRCandChinaInsuranceRegulatoryComisionandprior

tothestablishmentofNFRA,theCBIRCwasaninstitutiondirectlyundertheStateCouncil,

andwastheprincipalregulatoryauthorityforfinancialinstitutionsofthebankingindustryinthe

PRC,responsibleforthesupervisionandregulationofbankinginstitutionsoperatinginthePRC,

includingcomercialbanks,urbancreditcoperatives,ruralcreditcoperativesandother

financialinstitutionstakingdepositsfromthepublic,policybanksandcertainon-banking

financialinstitutions.TheformerCBIRCwasalsoresponsibleforthesupervisionandregulation

ofthentitiesestablishedbytheabovementionedfinancialinstitutionsoutsidethePRCandthe

overseasoperationsoftheabove-mentionedbankingandnon-bankingfinancialinstitutions.

ExaminationandSupervision

TheformerCBIRC,throughitsheadquartersinBeijinganditslocaloficesthroughouthePRC,

monitorstheoperationsofbanksandtheirbranchesandsub-branchesthroughon-site

examinationsandof-sitesurveilance.

Ifabankinginstitutionisnotincompliancewiththerelevantbankingregulations,theformer

CBIRCisauthorisedtorequireitorectifyandimposepunitivemeasuresagainstit,including

imposingfines,orderingthesuspensionofcertainbusinesactivities,witholdingtheaproval

forengaginginewbusineses,imposingrestrictionsondividends,distributionsinotherforms,

andtransferofasets,demandingthetransferofequityinterestheldbycontrolingshareholders

orlimitingthexerciseofsuchshareholders’rights,demandingthechangeofdirectorsorsenior

managementpersonelorlimitingtheirights,andwitholdingtheaprovalfortheopeningof

newbranchesandsub-branches.Ifthecaseisparticularlyserious,orthebankinginstitution

failstomakecorectionwithintheprescribedperiodoftime,theformerCBIRCmayorder

suspensionofbusinesorevocationofitsoperationlicense.Whenthereis,orislikelytobe,a

creditcrisiswithinabankinginstitution,whichmaymaterialyimpacthelegitimateinterestsof

depositorsandothercustomers,theformerCBIRCmaytakeoverorprocuretherestructuringof

suchbankinginstitution.

NFRA

China’snationalegislatureaprovedaplanon7March2023,onreformingtheinstitutionsof

theStateCouncil.TheStateCouncilanouncedthatitwouldabolishtheformerCBIRCand

moveitsfunctions,powersandresponsibilitiestoanationalfinancialregulator,namelythe

NationalFinancialRegulatoryAdministration.CertainfunctionsofthePBOCandtheCSRCwil

betransferedtotheNFRAaswel.

On18May2023,theNFRAwasoficialyestablished,whichopensanewchapteronfinancial

regulationinChina.TheNFRA,directlyundertheStateCouncil,isformedonthebasisofthe

formerCBIRC,inchargeofregulatingthefinancialindustryexcepthesecuritiesector.Apart

fromtakingoverthecomision’sresponsibilityofsupervisingbankingandinsurance

institutions,theNFRAwouldalsosupervisefinancialholdingcompaniesandotherfinancial

conglomerates,whichwasadutyofthePeople’sBankofChina.Therefore,theNFRAhas

inheritedalmostalthefunctionsoftheformerCBIRCandsuchreformofstateinstitutionshas

nosubstantialimpactontheBank’sbusinesandoperationsorthebankingindustryinthePRC.

OTHEREGULATORYAUTHORITIES

InaditiontotheNFRAandPBOC,comercialbanksinthePRCarealsosubjectothe

supervisionandregulationbyotheregulatoryauthoritiesincluding,butnotlimitedto,theMOF,

NDRCandSAFE.

REGULATIONSREGARDINGCAPITALADEQUACY

InMarch2004,therelevantPRCBankingRegulatoryAuthorityimplementedtheCapital

AdequacyMeasuresaplicabletoalcomercialbanksinthePRC.TheCapitalAdequacy

Measuresprovidedforaphase-inperiodwherebyaldomesticbanksmusthavemetminimum

capitaladequacyratiosby1January2007.On3July2007,therelevantPRCBanking

RegulatoryAuthorityamendedtheCapitalAdequacyMeasuresisuedinMarch2004tosetforth

newandmorestringentcapitaladequacyguidelineswhichmustbecompliedwithfrom3July

2007.

InJune2012,therelevantPRCBankingRegulatoryAuthorityisuedtheProvisionalCapital

ManagementRegulationsregulatingcapitaladequacyratios(“CAR”)ofPRCcomercialbanks,

whichabolishtheCapitalAdequacyMeasuresamendedon3July2007.TheProvisionalCapital

ManagementRegulations,whichareintendedtoreflectheBaselIregulatorycapital

requirements,setoutminimumCARrequirementsforcomercialbanksandprovidedetailed

guidelinesonthecalculationof“capital”and“risk-weightedasets”.TheoveralCAR

requirementsare11.5percent.fordomesticsystematicalyimportantcomercialbanksand10.5

percent.forothercomercialbanks.On26October2023,therelevantPRCBanking

RegulatoryAuthoritypromulgatedtheCapitalManagementRegulations(商业银行资本管理办

法),whichcameintoefecton1January2024andreplacedtheProvisionalCapitalManagement

Regulations.AcordingtotheCapitalManagementRegulations,comercialbanksinthePRC

arerequiredtohaveaCARofnotlesthan8percent.,Tier1CARofnotlesthan6percent.

andCoreTier1CARofnotlesthan5percent.TheCARsarecalculatedinacordancewith

theCapitalManagementRegulationsasfolows:

Capital

AdequacyRatio

(TotalCapital–deductionsfromcorespondingcapitalinstruments)

×100%

(Risk–weightedAsets)

Tier1Capital

AdequacyRatio

(Tier1Capital–deductionsfromcorespondingcapitalinstruments)

×100%

(Risk-weightedAsets)

CoreTier1

CapitalAdequacy

Ratio

(CoreTier1Capital–deductionsfromcorespondingcapitalinstruments)

×100%

(Risk–weightedAsets)

Furtherdetailsregardingthebasicprinciplesofsuchcalculationscanbeobtainedatheoficial

websiteoftheNFRA.

ThecontentsofthiswebsitedonotformapartofthisOferingCircular.

On29November2012,therelevantPRCBankingRegulatoryAuthorityreleasedtheGuiding

OpinionsoftheChinaBankingRegulatoryComisiononComercialBanks’Inovationon

CapitalInstruments(中国银监会关于商业银行资本工具创新的指导意见)andanamendmenton

22November2019(关于商业银行资本工具创新的指导意见(修订)(together,the“Inovation

onCapitalInstrumentsGuidingOpinions”),alowingandencouragingcomercialbanksto

developcapitalinstruments(includingtier2capitalinstruments)thatcomplywiththe

ProvisionalCapitalManagementRegulations.PursuantotheInovationonCapitalInstruments

GuidingOpinions,AditionalTier1CapitalinstrumentsandTier2Capitalinstrumentsisued

byacomercialbankafter1January2013mustcontainaprovisionthatrequiresuch

instrumentstobeitherwritenoforconvertedintocomonstockupontheocurenceofa

trigeringevent.AtrigeringeventforAditionalTier1Capitalinstrumentsocurswhenthe

CoreTier1CapitalAdequacyRatiofthecomercialbankfalsto5.125percent.orbelow.A

trigeringeventfortier2capitalinstrumentsocursuponthearlierof:(i)adecisionof

write-oforshareconversion,withoutwhichthecomercialbankwouldbecomenon-viable,as

determinedbytheformerCBIRC;or(i)adecisiontomakeapublicsectorinjectionofcapital

orequivalentsuport,withoutwhichthecomercialbankwouldhavebecomenon-viable,as

determinedbyrelevantauthorities.Folowingtheamendmenton22November2019,the

InovationonCapitalInstrumentsGuidingOpinions’furtherequirethat:(i)whenthesame

trigeringeventocurs,theAditionalTier1Capitalinstrumentshalbewritendownor

convertedintosharesinfulamount,beforethewrite-downorshareconversionoftheTier2

Capitalinstrumentislaunched;and(i)whenthesametrigeringeventocurs,eachcapital

instrumentofthesametiershalbewritendownorconvertedintosharesathesametime,in

proportiontothepercentageforwhichtheinstrumentacountsofthetotalamountofthecapital

instrumentsofthatier.TheamendedInovationonCapitalInstrumentsGuidingOpinions

furtherdemandthatbothkindsoftrigeringeventstatedaboveshalbesetconcurentlyfor

AditionalTier-1Capitalinstrumentstobeisuedaftertheamendmentifclasifiedin

acountingasliabilities.

On19July2019,therelevantPRCBankingRegulatoryAuthorityandCSRCpromulgated

GuidingOpinionsoftheChinaBankingandInsuranceRegulatoryComisionandtheChina

SecuritiesRegulatoryComisionontheIsuanceofPreferedSharesbyComercialBanksto

SuplementTier1Capital(中国银保监会、中国证监会关于商业银行发行优先股补充一级资本

的指导意见),thecomercialbanksisuingpreferenceshareshalcomplywithrelevant

regulationspromulgatedbytheStateCouncilandCSRCandtherequirementsofcapital

instrumentsreleasedbytherelevantPRCBankingRegulatoryAuthority,andtheCoreTier1

CapitalAdequacyRatioshalcomplywiththeprudentialregulationprinciplesformulatedbythe

relevantPRCBankingRegulatoryAuthority.Thecomercialbanksisuingpreferencesharesto

suplementier1capitalshalcomplywiththecriteriaoftheAditionalTier1Capital

instrumentsundertheProvisionalCapitalManagementRegulationsandtheGuidingOpinions,

andshalnotisuethepreferenceshareswithputprovisions.

On18January2018,therelevantPRCBankingRegulatoryAuthority,thePBOC,theCSRCand

theStateAdministrationofForeignExchangejointlyreleasedtheOpinionson

FurtherSuportingComercialBanks’InovationonCapitalInstruments(中国银监会、中国人

民银行、中国证监会、中国保监会、国家外汇管理局关于进一步支持商业银行资本工具创新的

意见),furthersuportingthebeneficialexplorationofcomercialbanksforinovatingcapital

instruments,expandingthechanelsforisuanceofcapitalinstruments,increasingcapital

instrumentypes,creatingfavourableconditionsforcomercialbankstoisuecapitalbonds

withoutfixedterms,Tier-2capitalbondstobeconvertedintoshares,capitalbondscontaining

regularshareconversionclauses,bondswithtotalos-absorbingcapacityandothercapital

instrumentsandimprovingtheaprovalofisuanceofcapitalinstruments.

On26October2023,therelevantPRCBankingRegulatoryAuthoritypromulgatedtheCapital

ManagementRegulations,whichcameintoefecton1January2024.ItreplacedtheProvisional

CapitalManagementRegulationsandshalprevailinthecaseofinconsistenciesbetwenthe

CapitalManagementRegulationsandanyregulationsorguidancesisuedbeforetheCapital

ManagementRegulationscameintoefect.

PRCURENCYCONTROLS

REMITANCEOFRENMINBINTOANDOUTSIDETHEPRC

TheRenminbisnotafrelyconvertiblecurency.TheremitanceofRenminbintoandoutside

thePRCisubjectocontrolsimposedunderPRClaw.

CurentAcountItems

UnderPRCforeignexchangecontrolregulations,curentacountitempaymentsinclude

paymentsforimportsandexportsofgodsandservices,paymentsofincomeandcurent

transfersintoandoutsidethePRC.

PriortoJuly2009,alcurentacountitemswererequiredtobesetledinforeigncurencies.

OnJuly2009,thePRCgovernmentpromulgatedMeasuresfortheAdministrationofthePilot

ProgramofRenminbiSetlementofCros-BorderTrades(跨境贸易人民币结算试点管理办法)

(the“PilotProgramMeasures”)anditsimplementationrules,pursuantowhichdesignatedand

eligiblenterprisesarealowedtosetletheircros-bordertradetransactionsinRenminbi.Since

July2009,subjectothePilotProgramMeasuresanditsimplementationrules,thePRChas

comencedaschemepursuantowhichRenminbimaybeusedforsetlementofcros-border

tradebetwenaprovedpilotenterprisesinfivedesignatedcitiesinthePRCincludingShanghai,

Guangzhou,Donguan,ShenzhenandZhuhaiandenterprisesindesignatedofshorejurisdictions

includingHongKongandMacau.On17June2010,thePRCgovernmentpromulgatedthe

CircularonIsuesconcerningtheExpansionoftheScopeofthePilotProgramofRenminbi

SetlementofCros-BorderTrades(关于扩大跨境贸易人民币结算试点有关问题的通知),

pursuantowhich(i)thelistofdesignatedpilotdistrictswasexpandedtocover20provinces

includingBeijing,Shanghai,Tianjin,Chongqing,Guangdong,Jiangsu,Zhejiang,Liaoning,

ShandongandSichuan,and(i)therestrictionondesignatedofshoredistrictswaslifted.

Acordingly,anyenterprisesinthedesignatedpilotdistrictsandofshorenterprisesarentitled

touseRenminbitosetleanycurentacountitemsbetwenthem(exceptinthecaseof

paymentsforexportsofgodsfromthePRC,suchRenminbiremitancemayonlybefectedby

aprovedpilotenterprisesin16provinceswithinthedesignatedpilotdistrictsinthePRC).On

27July2011,thePRCgovernmentpromulgatedtheCircularontheExpansionoftheRegionsof

RenminbiSetlementofCros-BorderTrades(关于扩大跨境贸易人民币结算地区的通知),

pursuantowhichthelistofdesignatedpilotdistrictswasexpandedtothewholecountry.On3

February2012,thePRCgovernmentpromulgatedtheCircularontheRelevantIsuesPertaining

toAdministrationoverEnterprisesEngaginginRMBSetlementofExportofGods(关于出口

货物贸易人民币结算企业管理有关问题的通知),pursuantowhichanyenterprisesinChina

whicharequalifiedtoengageinimportandexportradearealowedtosetletheirgodsexport

tradeinRenminbi.

On1November2014,thePBOCintroducedacashpolingarangementforqualified

multinationalenterprisegroupcompanies,underwhichamultinationalenterprisegroupcan

procescros-borderRenminbipaymentsandreceiptsforcurentacountitemsonacolective

basisforeligiblemembercompaniesinthegroup.On5September2015,thePBOCpromulgated

theCircularonFurtherFacilitatingtheCros-BorderBi-directionalRenminbiCashPoling

BusinesbyMultinationalEnterpriseGroups(关于进一步便利跨国企业集团开展跨境双向人民

币资金池业务的通知)(the“2015PBOCircular”),which,amongothers,haveloweredthe

eligibilityrequirementsformultinationalenterprisegroupsandincreasedthecapfornetcash

inflow.The2015PBOCircularalsoprovidesthatenterpriseswithinapilotfretradezonein

thePRC,suchastheChina(Shanghai)PilotFreTradeZonemayestablishanaditionalcash

polinthelocalschemeinsuchpilotfretradezone,buteachonshorecompanywithinthe

groupmayonlyelectoparticipateinonecashpol.

Acordingly,ofshorenterprisesarentitledtouseRenminbitosetleimportsofgodsand

servicesandothercurentacountitems.Renminbiremitanceforexportsofgodsfromthe

PRCmaybefectedbyenterpriseswiththeforeigntradingright.

On10April2020,theSAFEisuedNoticeoftheSAFEonOptimizingForeignExchange

AdministrationtoSuportheDevelopmentofForeign-relatedBusines(国家外汇管理局关于优

化外汇管理支持涉外业务发展的通知(汇发[2020]8号),whichcancelingtheregistrationof

specialrefundofremitance,simplifytheadministrationofregistrationofsomebusinesesunder

thecapitalacountandrelaxingthepurchaseoforeignexchangewithexportbackgroundfor

repaymentsofdomesticforeignexchangeloans.

On4December2023,theSAFEisuedtheNoticeonFurtherDepeningtheReformtoFacilitate

Cros-borderTradeandInvestment(国家外汇管理局关于进一步深化改革促进跨境贸易投资便

利化的通知(汇发[2023]28号),whichpartlyrevisedtheNoticebytheStateAdministrationof

ForeignExchangeofFurtherFacilitatingCros-borderTradeandInvestment(国家外汇管理局关

于进一步促进跨境贸易投资便利化的通知(汇发[2019]28号).

On3April2024,theSAFEisuedtheNoticeonFurtherOptimizingtheManagementofTrade

andForeignExchangeService(国家外汇管理局关于进一步优化贸易外汇业务管理的通知(汇发

[2024]11号),whichwilbeimplementedon1June2024.Therequirementforeachbranchof

theSAFEtoaprovetheregistrationofthe“DirectoryofEnterprisesdealingwithForeign

ExchangeReceiptsandExpendituresofTrade”shalbeabolished,andthedirectoryregistration

shalbehandledirectlybydomesticbanks.

On5July2013,thePBOCpromulgatedtheCircularonPoliciesrelatedtoSimplifyingand

ImprovingCros-borderRenminbiBusinesProcedures(关于简化跨境人民币业务流程和完善有

关政策的通知)(银发[2013]168号),which,inparticular,simplifiestheproceduresfor

cros-borderRenminbitradesetlementundercurentacountitems.Forexample,PRCbanks

mayconductsetlementforthePRCenterprises(excludingthoseontheSupervisionList)upon

thePRCenterprisespresentingthepaymentinstruction.PRCbanksmayalsoalowthePRC

enterprisestomake/receivepaymentsundercurentacountitemspriortotherelevantPRC

bank’sverificationofunderlyingtransactions(notingthatverificationofunderlyingtransactions

isusualyapreconditionforcros-borderemitance).

On23October2019,theSAFEpromulgatedtheNoticebytheStateAdministrationofForeign

ExchangeofSimplifyingForeignExchangeAcounts(国家外汇管理局关于精简外汇帐户的通

知(汇发[2019]29号)whichbecamefectiveon1February2020.SAFEhasdecidedtoreview

andintegratecertainforeignexchangeacountsandfurthereducethetypesofacountsinorder

tofurtherintensifythereformoforeignexchangeadministration,simplifyingtherelevant

businesoperatingprocedures,andfacilitatetrueandcompliantforeignexchangetransactionsby

banks,enterprisesandothermarketparticipants,forexample,“curentacounts–foreign

curencycashacount”and“curentacounts–foreignexchangeacountundercurentacounts

ofoverseasinstitutions”areincludedin“curentacounts–foreignexchangesetlement

acount”.

Onthesameday,theSAFEisuedtheNoticebytheStateAdministrationofForeignExchange

ofFurtherFacilitatingCros-borderTradeandInvestment(国家外汇管理局关于进一步促进跨境

贸易投资便利化的通知(汇发[2019]28号),basedonwhich,fortherevenueobtainedbyan

enterprisefromtradeingods,thenterprisemay,onitsown,decidewhethertopena

to-be-inspectedacountforexportrevenue(“to-be-inspectedacount”).Ifanenterprisehasnot

openedato-be-inspectedacount,thexaminedrevenuefromtradeingodsbythebankin

acordancewiththexistingprovisionsmaybedirectlydepositedintotheforeignexchange

acountundercurentacountsorusedforforeignexchangesetlement.

On29April2019,theSAFEisuedAdministrativeMeasuresfortheForeignExchangeService

ofPaymentInstitutions(支付机构外汇业务管理办法),whichfacilitatesdomesticinstitutionsand

individualstocaryoute-comercetradethroughtheinternet,standardizesthecros-border

foreignexchangepaymentservicesprovidedbypaymentinstitutions,andpreventstheriskof

cros-bordercapitalflowsthroughtheinternetchanel.

Theforegoingmeasuresandcircularswilbesubjectointerpretationandaplicationbythe

relevantPRCauthorities.LocalauthoritiesmayadoptdiferentpracticesinaplyingthePilot

ProgramMeasuresandimposeconditionsforsetlementofcurentacountitems.

CapitalAcountItems

UnderPRCforeignexchangecontrolregulations,capitalacountitemsincludecros-border

transfersofcapital,directinvestments,securitiesinvestments,derivativeproductsandloans.

Capitalacountpaymentsaregeneralysubjectoaprovalof,and/oregistrationorfilingwith,

therelevantPRCauthorities.

Capitalacountitemsaregeneralyrequiredtobemadeinforeigncurencies.Forinstance,

foreigninvestors(includinganyHongKonginvestors)aregeneralyrequiredtomakeany

capitalcontributiontoforeigninvestedenterprisesinaforeigncurencyinacordancewiththe

termsetoutintherelevantjointventurecontractsand/orarticlesofasociationasaprovedby

therelevantauthorities.ForeigninvestedenterprisesoranyotherelevantPRCpartiesarealso

generalyrequiredtomakecapitalacountitempaymentsincludingprocedsfromliquidation,

transferofshares,reductionofcapitalandprincipalrepaymentunderforeigndebtoforeign

investorsinaforeigncurency.Thatsaid,therelevantPRCauthoritiesmayaproveaforeign

entitytomakeacapitalcontributionorshareholder’sloantoaforeigninvestedenterprisewith

RenminbilawfulyobtainedbyitoutsidethePRCandfortheforeigninvestedenterpriseto

serviceinterestandprincipalrepaymentoitsforeigninvestoroutsidethePRCinRenminbiona

trialbasis.Theforeigninvestedenterprisemayalsoberequiredtocompleteregistrationand

verificationproceswiththerelevantPRCauthoritiesbeforesuchRenminbiremitances.

On7April2011,theSAFEisuedtheNoticeonRelevantIsuesregardingStreamliningthe

BusinesOperationofCros-borderRMBCapitalAcountItems(国家外汇管理局综合司关于规

范跨境人民币资本项目业务操作有关问题的通知),whichclarifiesthatheborowingbyan

onshorentity(includingafinancialinstitution)ofRenminbiloansfromanofshorecreditor

shalinprinciplefolowthecurentregulationsonborowingforeigndebtsandtheprovisionby

anonshorentity(includingafinancialinstitution)ofexternalguarantesinRenminbishalin

principlefolowthecurentregulationsontheprovisionofexternalguarantesinforeign

curencies.

On3December2013,theMOFCOMpromulgatedtheCircularonIsuesinrelationto

Cros-borderRenminbiForeignDirectInvestment(关于跨境人民币直接投资有关问题的公告)

(the“MOFCOMRMBFDICircular”)whichbecamefectiveon1January2014.Pursuanto

theMOFCOMRMBFDICircular,theprocedsfromforeigndirectinvestmentinRenminbimay

notbeusedtowardsinvestmentinsecurities,financialderivativesorentrustmentloansinthe

PRC,exceptforinvestmentinPRCdomesticlistedcompaniesunderthePRCstrategic

investmentregimewiththeaprovaloftheMOFCOMpursuantotheAdministrativeMeasures

forStrategicInvestmentbyForeignInvestorsinListedCompanies(外国投资者对上市公司战略

投资管理办法).

On3June2011,thePBOCpromulgatedtheCircularonClarifyingIsuesconcerning

Cros-borderRenminbiSetlement(中国人民银行关于明确跨境人民币业务相关问题的通知)

(the“2011PBOCircular”).The2011PBOCircularprovidesinstructionstolocalPBOC

authoritiesonproceduresfortheaprovalofsetlementactivitiesfornon-financialRenminbi

foreigndirectinvestmentintothePRC.The2011PBOCircularapliestoalnon-financial

RenminbiforeigndirectinvestmentintothePRC,andincludesinvestmentbywayof

establishinganewenterprise,acquiringanonshorenterprise,transferingtheshares,increasing

theregisteredcapitalofanexistingenterprise,orprovidingloanfacilitiesinRenminbi.The

domesticsetlementbanksoforeigninvestorsorforeigninvestedenterprisesinthePRCare

requiredtosubmitwritenaplicationstotherelevantlocalPBOCauthoritieswhichinclude,

interalia,requisiteaprovaletersisuedbytherelevantMOFCOMauthorities.

On13October2011,thePBOCisuedtheMeasuresonAdministrationoftheRMBSetlement

inrelationtoForeignDirectInvestment(外商直接投资人民币结算业务管理办法)(the“PBOC

RMBFDIMeasures”)andamendediton29May2015,tocomencethePBOC’sdetailed

RMBFDIadministrationsystem,whichcoversalmostalaspectsofRMBFDI,includingcapital

injection,paymentofpurchasepriceintheacquisitionofPRCdomesticenterprises,repatriation

ofdividendsandistribution,aswelasRMBdenominatedcros-borderloans.UnderthePBOC

RMBFDIMeasures,specialaprovalforRMBFDIandshareholderloansfromthePBOCwhich

waspreviouslyrequiredbythe2011PBOCircularisnolongernecesary.On14June2012,

thePBOCfurtherisuedtheimplementingrulesforthePBOCRMBFDIMeasures.

On19November2012,theSAFEpromulgatedtheCircularonFurtherImprovingandAdjusting

theForeignExchangeAdministrationPoliciesonDirectInvestment(国家外汇管理局关于进一步

改进和调整直接投资外汇管理政策的通知)(the“SAFECircularonDI”),whichbecame

efectiveon17December2012andwasamendedon4May2015,10October2018and30

December2019.AcordingtotheSAFECircularonDI,theSAFEremovesoradjustscertain

administrativelicensingitemswithregardtoforeignexchangeadministrationoverdirect

investmentstopromoteinvestment,including,butnotlimitedto,theabrogationofSAFE

aprovalforopeningofandpaymentintoforeignexchangeacountsunderdirectinvestment

acounts,theabrogationofSAFEaprovalforeinvestmentwithlegalincomegeneratedwithin

Chinaoforeigninvestors,thesimplificationoftheadministrationoforeignexchange

reinvestmentsbyforeigninvestmentcompanies,andtheabrogationofSAFEaprovalfor

purchaseandexternalpaymentoforeignexchangeunderdirectinvestmentacounts.

On5July2013,thePBOCpromulgatedtheNoticeonSimplifyingtheProceduresof

Cros-borderRenminbiBusinesandImprovingRelevantPolicies(关于简化跨境人民币业务流

程和完善有关政策的通知)(the“2013PBOCircular”),whichsimplifiestheoperating

proceduresoncurentacountcros-borderRenminbisetlement,provisionofRenminbi

outboundloansandRenminbicros-bordersecurityinfavourofofshorentitiesbyonshore

non-financialinstitutions,andfurtherpublishedpolicieswithrespectobankcardrelated

cros-borderRenminbiclearingandisuanceofofshoreRenminbibondsbyonshore

non-financialinstitutions.The2013PBOCircularintendstoimprovetheficiencyof

cros-borderRenminbisetlementandfacilitatetheuseofcros-borderRenminbisetlementby

banksandenterprises.

On30March2015,SAFEpromulgatedtheNoticesofReformationonAdministrationof

SetlementofCapitalForeignExchangeofForeign-investedEnterprises(关于改革外商投资企业

外汇资本金结汇管理方式的通知(汇发[2015]19号),whichbecamefectiveon1June2015.In

ordertofurtherdepenthereformoftheforeignexchangeadministrationsystem,betersatisfy

andfacilitatethenedsoforeign-investedenterprisesforbusinesandcapitaloperation,the

SAFEhasdecidedtoreformthemanagementaproachregardingthesetlementoftheforeign

exchangecapitaloforeign-investedenterprisesnationwideonthebasisofsumarisingthepilot

experienceofcertainregionsinthearlydays.Thekeypointsofthisnoticesetoutasthe

folowing:

(cid:129)theforeignexchangecapitaloforeign-investedenterpriseshalbesubjectothe

discretionalforeignexchangesetlement;

(cid:129)thecapitalinRenminbiobtainedbyforeign-investedenterprisesfromthediscretionary

setlementoforeignexchangecapitalshalbemanagedundertheacountpendingfor

foreignexchangesetlementpayment;

(cid:129)theuseofcapitalbyforeign-investedenterpriseshalfolowtheprinciplesofauthenticity

andself-usewithinthebusinescopeofenterprises;

(cid:129)facilitatingforeign-investedenterprisesincaryingoutdomesticequityinvestmentwiththe

capitalobtainedfromforeignexchangesetlement;

(cid:129)furtherstandardisingtheadministrationofpaymentbythecapitalobtainedbyforeign

exchangesetlement;

(cid:129)administrationofthesetlementanduseofthecapitalinotherforeignexchangeacounts

underdirectinvestment;and

(cid:129)furtherstrengtheningthex-postregulationaswelasinvestigationonandpunishment

againstviolationsbytheforeignexchangebureaus.

Previously,Renminbimayonlybeconvertedforcapitalacountexpensesoncetheprior

aprovaloftheSAFEhadbenobtained.However,acordingtotheCircularoftheSAFEon

FurtherSimplifyingandImprovingtheForeignExchangeAdministrationPoliciesofForeign

DirectInvestment(国家外汇管理局关于进一步简化和改进直接投资外汇管理政策的通知(汇发

[2015]13号)isuedon28February2015,theSAFEauthorisedsomequalifiedlocalbanksinthe

PRCtocaryoutforeignexchangeproceduresinrelationtoinboundandoutboundinvestment

from1June2015.

On26January2017,theSAFEisuedtheNoticeonFurtherPromotingtheReformofForeign

ExchangeAdministrationandImprovingtheExaminationofAuthenticityandCompliance(国家

外汇管理局关于进一步推进外汇管理改革完善真实合规性审核政策的通知(汇发[2017]3号)to

furtheradvancethereformoforeignexchangeadministration,suchas:

(cid:129)setlementofdomesticforeignexchangeloansarealowedforexportradeingods.A

domesticinstitutionshalrepayloanswiththeforeignexchangefundsreceivedfromexport

tradeingods,ratherthan,inprinciple,purchasedforeignexchange;

(cid:129)adebtormaydirectlyorindirectlyrepatriatethefundsunderguaranteandusethem

domesticalyby,amongothers,grantingloansandmakingequityinvestmentdomesticaly.

Whereabankperformsitsguaranteobligationunderoverseasloanswithdomestic

guarante,relevantforeignexchangesetlementandsaleshalbemanagedasthebank’s

ownforeignexchangesetlementandsale;

(cid:129)thedepositsabsorbedbyadomesticbankthroughitsprincipalinternationalforeign

exchangeacountandalowedtobeusedomesticalyarenomorethan100percent.of

theaveragedailydepositbalanceinthepreviousixmonthsasoposedtotheformer50

percent.;andthefundsusedomesticalyarenotincludedinthebank’soutstanding

short-termexternaldebtquota;

(cid:129)alowingforeignexchangesetlementinthedomesticforeignexchangeacountsof

overseasinstitutionswithinpilotfretradezones:Wherefundsarerepatriatedandused

domesticalyaftersetlement,adomesticbankshal,undertherelevantprovisionson

cros-bordertransactions,handlesuchfundsbyexaminingthevalidcomercialdocuments

andvouchersofdomesticinstitutionsandomesticindividuals;and

(cid:129)whereadomesticinstitutiongrantsoverseasloans,thetotalofthebalanceofoverseas

loansgrantedindomesticurencyandthebalanceofoverseasloansgrantedinforeign

curencyshalnotexced30percent.ofowner’sequityintheauditedfinancialstatements

ofthepreviousyear.

SinceSeptember2015,qualifiedmultinationalenterprisegroupscanextend

Renminbi-denominatedloansto,orborowRenminbi-denominatedloansfrom,eligibleofshore

memberentitieswithinthesamegroupbyleveragingthecashpolingarangements.The

Renminbifundswilbeplacedinaspecialdepositacountandmaynotbeusedtoinvestin

stocks,financialderivatives,ornon-self-userealestateasets,orpurchasewealthmanagement

productsorextendloanstoenterprisesoutsidethegroup.

Thesecuritiesmarkets,specificalytheRenminbiQualifiedForeignInstitutionalInvestor

(“RQFI”)regimeandtheChinaInterbankBondMarket(“CIBM”),havebenfurther

liberalisedforforeigninvestors.PBOChasrelaxedthequotacontrolforRQFI,initiatedabond

marketmutualaceschemebetwenmainlandandHongKongtoaloweligibleinvestorsto

investinCIBMandhasalsoexpandedthelistoforeigninvestorseligibletodirectlyinvestin

CIBM,removedquotarestriction,andgrantedmoreflexibilityforthesetlementagentsto

providetherelevantinstitutionswithmoretradingfacilities(forexample,inrelationto

derivativesforhedgingforeignexchangerisk).

Interbankforeignexchangemarketisalsopening-up.In2018,theChinaForeignExchange

TradeSystemfurtherelaxedqualifications,aplicationmaterialsandtheproceduresforforeign

participatingbanks(whichnedstohavearelativelylargescaleofRenminbipurchaseandsale

businesandinternationalinfluence)toacestheinter-bankforeignexchangemarket.

On23October2019,theSAFEpromulgatedNoticebytheStateAdministrationofForeign

ExchangeofSimplifyingForeignExchangeAcounts(国家外汇管理局关于精简外汇帐户的通

知(汇发[2019]29号)whichbecamefectiveon1February2020,acordingtowhich,several

measuresweretakentointensify,forexample,“capitalacounts–specialacountfordomestic

reinvestment”isincludedin“capitalacounts–foreignexchangecapitalacount”.

Onthesameday,theSAFEisuedNoticebytheStateAdministrationofForeignExchangeof

FurtherFacilitatingCros-borderTradeandInvestment(国家外汇管理局关于进一步促进跨境贸

易投资便利化的通知(汇发[2019]28号)inordertofurtherpromotethereformof“simplification

ofadministrativeproceduresandecentralisationofpowers,combinationofdecentralisationand

apropriatecontrol,andoptimisationofservices”.Itcanceledrestrictionsontheuseofundsin

domesticasetrealisationacountsforforeignexchangesetlementandrestrictionsonthe

numberofopenedforeignexchangeacountsundercapitalacounts.

On3April2024,theSAFEisuedtheNoticeonPromulgationoftheGuidelinesonForeign

ExchangeBusinesesunderCapitalAcounts(Edition2024)(国家外汇管理局关于印发《资本项

目外汇业务指引(2024年版)》的通知(汇发[2024]12号)inordertofurtheroptimisethe

workflowforhandlingofcapitalacountransactions.

Theforegoingcirculars,noticesandmeasureswilbesubjectointerpretationandaplicationby

therelevantPRCauthorities.Thereisnoasurancethataprovalofsuchremitances,borowing

orprovisionofexternalguaranteinRenminbiwilcontinuetobegrantedorwilnotbe

revokedinthefuture.Further,sincetheremitanceofRenminbibywayofinvestmentorloans

arenowcategorisedascapitalacountitems,suchremitancesaresubjectothespecific

requirementsorestrictionsetoutintherelevantSAFErules.

TAXATION

Thestatementshereinregardingtaxationarebasedonthelawsinforceasathedateofthis

documentandaresubjectoanychangesinlawocuringaftersuchdate,whichchangescould

bemadeonaretroactivebasis.Thefolowingsumarydoesnotpurportobeacomprehensive

descriptionofalofthetaxconsiderationsthatmayberelevantoadecisiontopurchase,own

ordisposeoftheNotesandoesnotpurportodealwiththetaxconsequencesaplicabletoal

categoriesofinvestors,someofwhich(suchasdealersorcertainprofesionalinvestors)maybe

subjectospecialrules.Investorshouldconsultheirowntaxadvisersregardingthetax

consequencesofaninvestmentintheNotes.

PRC

ThefolowingsumarydescribestheprincipalPRCtaxconsequencesofownershipoftheNotes

bybeneficialownerswho,orwhich,arenotresidentsofmainlandChinaforPRCtaxpurposes.

Thesebeneficialownersarereferedtoas“non-PRCNoteholders”or“non-residentNoteholders”

inthisection.InconsideringwhethertoinvestintheNotes,potentialpurchasershouldconsult

theirindividualtaxadvisorswithregardtotheaplicationofPRCtaxlawstotheirparticular

situationsaswelasanytaxconsequencesarisingunderthelawsofanyothertaxjurisdiction.

PursuantotheEnterpriseIncomeTaxLawefectiveon1January2008andamendedon24

February2017and29December2018,andthePRCIndividualIncomeTaxLaw,asamendedon

30June2011and31August2018,andtheirimplementationregulations,anincometaxis

imposedonpaymentofinterestbywayofwitholdinginrespectofdebtsecurities,isuedby

PRCenterprisestonon-residentNoteholders,includingnon-residententerprisesandnon-resident

individuals.

On23March2016,theMinistryofFinanceandtheStateAdministrationofTaxation(“SAT”)

isuedtheCircularofFulImplementationofBusinesTaxtoVATReform(关于全面推开营业

税改征增值税试点的通知)(Caishui[2016]No.36,“Circular36”)whichconfirmsthatbusines

taxwasreplacedbyVATfrom1May2016.Sincethen,theincomederivedfromtheprovision

ofinancialserviceswhichatractedbusinestaxwilbentirelyreplacedby,andsubjecto,

VAT.

AcordingtoCircular36,thentitiesandindividualsprovidingserviceswithinChinashalbe

subjectoVAT.TheservicesaretreatedasbeingprovidedwithinChinawhereithertheservice

providerortheservicerecipientislocatedinChina,butwheretheservicesaresoldbyofshore

entitiesorindividualstonshorentitiesorindividualsandsuchservicespurelytakeplace

outsidethePRC,theyshouldnotbedemedaservicesoldwithintheteritoryofChina.The

servicesubjectoVATincludetheprovisionofinancialservicesuchastheprovisionof

loans.ItisfurtherclarifiedunderCircular36thathe“loans”referstotheactivityoflending

capitalforanother’suseandreceivingtheinterestincomethereon.Basedonthedefinitionof

“loans”underCircular36,theisuanceofNotesislikelytobetreatedastheholdersofthe

NotesprovidingloanstotheIsuer.

(I)IntheventhatheIsueristheBankoranonshorebranchoftheBank(an

“OnshoreBankEntity”)

IntheventhatheIsuerisanOnshoreBankEntity,suchOnshoreBankEntitywilbe

subjectowitholdingPRCincometaxonthepaymentofinterestoftheNotesto

non-residentNoteholders.Thecurentratesofsuchincometaxare20percent.(for

non-residentindividuals)and10percent.(fornon-residententerprises)ofthegrosamount

oftheinterest,ineachcase,unlesalowerateisavailableunderanaplicabletaxtreaty.

Forexample,thetaxsochargedoninterestspaidontheNotestonon-residentNoteholders

who,orwhichareresidentsofHongKong(includingenterpriseholdersandindividual

holders)asdefinedunderthearangementbetwenthemainlandChinandHongKongfor

purposeoftheavoidanceofdoubletaxationwilbe7percent.ofthegrosamountofthe

interestpursuantosucharangement.Further,giventhatheOnshoreBankEntityis

locatedinthePRC,theholdersoftheNoteswouldberegardedasprovidingthefinancial

serviceswithinChinandconsequently,theholdersoftheNoteshalbesubjectoVATat

therateof6percent.whenreceivingtheinterestpaymentsundertheNotes.Giventhathe

OnshoreBankEntitypaysinterestincometoNoteholderswhoarelocatedoutsideofthe

PRC,suchOnshoreBankEntity,actingastheobligatorywitholderinacordancewith

aplicablelaw,shalwitholdVATfromthepaymentofinterestincometoNoteholders

whoarelocatedoutsideofthePRC.TheBankhasagredtopayaditionalamountsto

holdersoftheNotesothatholdersoftheNoteswouldreceivethefulamountofthe

scheduledpayment,asfurthersetoutinthe“TermsandConditionsoftheNotes”.

UndertheEnterpriseIncomeTaxLawanditsimplementationrules,anygainsrealisedon

thetransferoftheNotesbyholderswhoaredemedasnon-residententerprisesmaybe

subjectoPRCenterpriseincometaxifsuchgainsareregardedasincomederivedfrom

sourceswithinthePRC.Thereremainsuncertaintyastowhetherthegainsrealisedonthe

transferoftheNoteswouldbetreatedasincomesderivedfromsourceswithinthePRCand

besubjectoPRCenterpriseincometax.IfsuchgainsaresubjectoPRCincometax,the

10percent.enterpriseincometaxrateand20percent.individualincometaxratewil

aplyrespectivelyunlesthereisanaplicabletaxtreatyorarangementhatreducesor

exemptsuchincometax.Thetaxableincomewilbethebalanceofthetotalincome

obtainedfromthetransferoftheNotesminusalcostsandexpensesthatarepermited

underPRCtaxlawstobedeductedfromtheincome.Acordingtoanarangementbetwen

thePRCandHongKongforavoidanceofdoubletaxation,NoteholderswhoareHong

Kongresidents,includingbothenterpriseholdersandindividualholders,wilbexempted

fromPRCincometaxoncapitalgainsderivedfromasaleorexchangeoftheNotes.

(I)IntheventhatheIsuerisanofshorebranchoftheBank

IntheventhatheIsuerisanofshorebranchoftheBank,theIsuerisnotobligedto

witholdPRCincometaxatherateupto10percent.(fornon-residententerprises)or20

percent.(fornon-residentindividuals)onthepaymentsofinterestmadebyito

non-residentNoteholdersprovidedthathepaymentsaremadeoutsideoftheteritoryof

PRC.However,thisisubjectotheinterpretationbythePRCtaxauthorities.IfthePRC

taxauthoritiestakeaninterpretationthatheinterestontheNotespayablebytheIsueris

treatedasincomesourcedfromthePRC,awitholdingtaxmaybeimposedonsuch

interestandtheIsuerwilpayaditionalamountstoholdersoftheNotesothatholders

oftheNoteswouldreceivethefulamountofthescheduledpayment,asfurthersetoutin

the“TermsandConditionsoftheNotes”.

InthecaseofisuanceofNotesbyanofshorebranchoftheBank,Circular36wilnot

aplyiftheprovisionofloansbyindividualsorentitieslocatedoutsidethePRCtakes

placeoutsidethePRC.NeithertheofshorebranchoftheBanknortheholdersoftheNotes

arelocatedinthePRCandiftheprovisionofloanstakesplaceoutsidethePRC,theno

VATispayableoninterestpaymentsundertheNotes.Thisis,however,subjectothe

interpretationofCircular36bytherelevantauthority.

IftheBankshalperformtheobligationofpayinginterestoftheNotesintheventand

onlywhentheofshorebranchIsuerfailstoperformitsobligationsofpayingtheinterest

oftheNotes,theBankwilbeobligedtowitholdPRCincometaxatarateof10percent.

(fornon-residententerprises)or20percent.(fornon-residentindividuals)(unlesalower

rateisavailableunderanaplicabletaxtreaty)andPRCVATtaxatherateof6percent.

oftheinterestcomponentoftheamountpayablebytheBanktotheNoteholdersifthePRC

taxauthorityviewsuchcomponentasaninterestincomearisingwithintheteritoryofthe

PRC.

Non-residentNoteholderswilnotbesubjectothePRCtaxonanycapitalgainsderived

fromasaleorexchangeofNotesconsumatedoutsidethePRCbetwenon-resident

Noteholders,excepthowever,ifsuchcapitalgainsaredeterminedasincomesourcedin

China,acordinglysuchcapitalgainswouldbesubjectotherateof10percent.(for

non-residententerprises)or20percent.(fornon-residentindividuals)ofPRCwitholding

taxunlesthereisalowertaxrateaplicable.Acordingtoanarangementbetwenthe

mainlandChinandHongKongfortheavoidanceofdoubletaxation,Noteholderswhoare

HongKongresidents,includingbothenterpriseholdersandindividualholders,wilbe

exemptedfromPRCincometaxoncapitalgainsderivedfromasaleorexchangeofthe

Notes.ThereisuncertaintyastowhethergainsrealisedonthetransferoftheNotesby

individualholderswhoarenotPRCcitizensoresidentswilbetreatedasincomesourced

withinthePRCwhichasaresultwilbesubjectoPRCindividualincometax.

WhereaholderoftheNoteswhoisanentityorindividualocatedoutsideofthePRC

reselstheNotestoanentityorindividualocatedoutsideofthePRCanderivesanygain,

sinceneithertheserviceprovidernortheservicerecipientislocatedinthePRC,

theoreticalyVATprescribedunderCircular36doesnotaplyandtheofshorebranch

IsuerdoesnothavetheobligationtowitholdtheVATorthelocalevies.However,there

isuncertaintyastotheaplicabilityofVATifeithertheselerorbuyerofNotesislocated

insidethePRC.

TheabovestatementsonVATmaybesubjectofurtherchangeupontheisuanceofurther

clarificationrulesand/ordiferentinterpretationbythecompetentaxauthority.Thereis

uncertaintyastotheaplicationofCircular36.

PursuantotheEITLawandtheVATreformdetailedabove,theofshorebranchIsuer

shalwitholdEIT,(shouldsuchtaxaply)fromthepaymentsofinterestinrespectofthe

Notesforanynon-PRCNoteholderandtheofshorebranchIsuershalwitholdVAT

(shouldsuchtaxaply)fromthepaymentsofinterestinrespectoftheNotesforany

NoteholderslocatedoutsideofthePRC.However,intheventhatheIsuerisrequiredto

makesuchadeductionorwitholding(whetherbywayofEITorVATotherwise),the

Isuerhasagredtopaysuchaditionalamountsaswilresultinreceiptbythe

Noteholdersofsuchamountsaftersuchwitholdingordeductionaswouldhaveben

receivedbythemhadnosuchwitholdingordeductionbenrequired.Formore

information,se“TermsandConditionsoftheNotes–Condition8(Taxation)”.

NoPRCstampdutywilbechargeableupontheisueortransfer(forsolongasthe

registerofNoteholdersismaintainedoutsidethePRC)ofaNote.

HONGKONG

WitholdingTax

NowitholdingtaxispayableinHongKonginrespectofpaymentsofprincipalorintereston

theNotesorinrespectofanycapitalgainsarisingfromthesaleoftheNotes.

ProfitsTax

HongKongprofitstaxischargeableoneverypersoncaryingonatrade,profesionorbusines

inHongKonginrespectofprofitsarisinginorderivedfromHongKongfromsuchtrade,

profesionorbusines(excludingprofitsarisingfromthesaleofcapitalasets).

InterestontheNotesmaybedemedtobeprofitsarisinginorderivedfromHongKongfroma

trade,profesionorbusinescariedoninHongKonginthefolowingcircumstances:

(i)interestontheNotesisderivedfromHongKongandisreceivedbyoracruestoa

corporationcaryingonatrade,profesionorbusinesinHongKong;or

(i)interestontheNotesisderivedfromHongKongandisreceivedbyoracruestoaperson,

otherthanacorporation,caryingonatrade,profesionorbusinesinHongKongandisin

respectofthefundsofthatrade,profesionorbusines;or

(i)interestontheNotesisreceivedbyoracruestoafinancialinstitution(asdefinedinthe

InlandRevenueOrdinance(Cap.112)ofHongKong(the“IRO”)andarisesthroughor

fromthecaryingonbythefinancialinstitutionofitsbusinesinHongKong;or

(iv)interestontheNotesisreceivedbyoracruestoacorporation,otherthanafinancial

institution,andarisesthroughorfromthecaryingoninHongKongbythecorporationof

itsintra-groupfinancingbusines(withinthemeaningofsection16(3)oftheIRO).

WheretheHongKongBranchoftheBankistheIsuer,pursuantotheExemptionfromProfits

Tax(InterestIncome)Order,interestincomeacruingtoapersonotherthanafinancial

institutionondeposits(denominatedinanycurencyandwhetherornothedepositisevidenced

byacertificateofdeposit)placedwith,interalia,anauthorisedinstitutioninHongKong

(withinthemeaningofsection2oftheBankingOrdinance(Cap.155)ofHongKong)isexempt

fromthepaymentofHongKongprofitstax.Thisexemptiondoesnotaply,however,to

depositsthatareusedtosecureorguarantemoneyborowedincertaincircumstances.Provided

noprospectusinvolvingtheisueoftheNotesisregisteredundertheCompanies(WindingUp

andMiscelaneousProvisions)Ordinance(Cap.32)ofHongKong,theisueoftheNotesby

suchIsuerisexpectedtoconstituteadepositowhichtheabovexemptionfrompaymentwil

aply.

Sumsreceivedbyoracruedtoafinancialinstitutionbywayofgainsorprofitsarisingthrough

orfromthecaryingonbythefinancialinstitutionofitsbusinesinHongKongfromthesale,

disposalandredemptionofNoteswilbesubjectoHongKongprofitstax.Sumsreceivedbyor

acruedtoacorporation,otherthanafinancialinstitution,bywayofgainsorprofitsarising

throughorfromthecaryingoninHongKongbythecorporationofitsintra-groupfinancing

busines(withinthemeaningofsection16(3)oftheIRO)fromthesale,disposalorother

redemptionofNoteswilbesubjectoHongKongprofitstax.

Sumsderivedfromthesale,disposaloredemptionofNoteswilbesubjectoHongKong

profitstaxwherereceivedbyoracruedtoaperson,otherthanafinancialinstitution,who

cariesonatrade,profesionorbusinesinHongKongandthesumhasaHongKongsource,

unlesotherwisexempted.Thesourceofsuchsumswilgeneralybedeterminedbyhaving

regardtothemanerinwhichtheNotesareacquiredandisposedof.

Inadition,theInlandRevenue(Amendment)(TaxationonSpecifiedForeign-sourcedIncome)

Ordinance2022ofHongKong(the“AmendmentOrdinance”)cameintoefecton1January

2023.UndertheAmendmentOrdinance,certainforeign-sourcedinterestontheNotesacruedto

anMNEentity(asdefinedintheAmendmentOrdinance)caryingonatrade,profesionor

businesinHongKongisregardedasarisinginorderivedfromHongKongandsubjecto

HongKongprofitstaxwhenitisreceivedinHongKong.TheAmendmentOrdinancealso

providesforeliefagainstdoubletaxationinrespectofcertainforeign-sourcedincomeand

transitionalmaters.

Incertaincircumstances,HongKongprofitstaxexemptions(suchasconcesionarytaxrates)

maybeavailable.Investorsareadvisedtoconsultheirowntaxadvisorstoascertainthe

aplicabilityofanyexemptionstotheirindividualposition.

StampDuty

StampdutywilnotbepayableontheisueofBearerNotesbytherelevantIsuer,provided

thateither:

(i)suchBearerNotesaredenominatedinacurencyotherthanthecurencyofHongKong

andarenotrepayableinanycircumstancesinthecurencyofHongKong;or

(i)suchBearerNotesconstituteloancapital(asdefinedintheStampDutyOrdinance(Cap.

117)ofHongKong(the“SDO”).

Ifstampdutyispayable,itispayablebytherelevantIsuerontheisueofBearerNotesata

rateof3percent.ofthemarketvalueoftheBearerNotesathetimeofisue.Nostampduty

wilbepayableonanysubsequentransferofBearerNotes.

NostampdutyispayableontheisueofRegisteredNotes.Stampdutymaybepayableonany

transferofRegisteredNotesiftherelevantransferisrequiredtoberegisteredinHongKong.

Stampdutywil,however,notbepayableonanytransferofRegisteredNotes,providedthat

either:

(i)suchRegisteredNotesaredenominatedinacurencyotherthanthecurencyofHongKong

andarenotrepayableinanycircumstancesinthecurencyofHongKong;or

(i)suchRegisteredNotesconstituteloancapital(asdefinedintheSDO).

Withefectfrom17November2023,ifstampdutyispayableinrespectofthetransferof

RegisteredNotesitwilbepayableatherateof0.2percent.(ofwhich0.1percent.ispayable

bytheselerand0.1percent.ispayablebythepurchaser)normalybyreferencetothe

considerationoritsvalue,whicheverishigher.Inadition,stampdutyispayableathefixed

rateofHK$5oneachinstrumentoftransferexecutedinrelationtoanytransferofthe

RegisteredNotesiftherelevantransferisrequiredtoberegisteredinHongKong.

UNITEDSTATESFATCATAXPROVISIONS

PursuantocertainprovisionsoftheU.S.InternalRevenueCodeof1986,asamended,

comonlyknownasFATCA,a“foreignfinancialinstitution”mayberequiredtowitholdon

certainpaymentsitmakes(“foreignpasthrupayments”)topersonsthatfailtometcertain

certification,reportingorelatedrequirements.TherelevantIsuermaybeaforeignfinancial

institutionforthesepurposes.Anumberofjurisdictions(includingthePRC)haventeredinto,

orhaveagredinsubstanceto,intergovernmentalagrementswiththeUnitedStatesto

implementFATCA(“IGAs”),whichmodifythewayinwhichFATCAapliesintheir

jurisdictions.UndertheprovisionsofIGAsascurentlyinefect,aforeignfinancialinstitution

inanIGAjurisdictionwouldgeneralynotberequiredtowitholdunderFATCAoranIGAfrom

paymentsthatitmakes.CertainaspectsoftheaplicationoftheFATCAprovisionsandIGAsto

instrumentsuchastheNotes,includingwhetherwitholdingwouldeverberequiredpursuanto

FATCAoranIGAwithrespectopaymentsoninstrumentsuchasNotes,areuncertainandmay

besubjectochange.EvenifwitholdingwouldberequiredpursuantoFATCAoranIGAwith

respectopaymentsoninstrumentsuchasNotes,proposedregulationshavebenisuedthat

providethatsuchwitholdingwouldnotaplypriortothedatethatistwoyearsafterthedate

onwhichfinalregulationsdefiningforeignpasthrupaymentsarepublishedintheU.S.Federal

RegisterandNotescharacterisedasdebt(orwhicharenototherwisecharacterisedasequityand

haveafixedterm)forU.S.federaltaxpurposesthatareisuedonorpriortothedatethatisix

monthsafterthedateonwhichfinalregulationsdefiningforeignpasthrupaymentsare

publishedgeneralywouldbegrandfatheredforpurposesofFATCAwitholdingunles

materialymodifiedaftersuchdate.However,ifaditionalNotes(asdescribedunder“Terms

andConditionsoftheNotes–FurtherIsues”)thatarenotdistinguishablefrompreviously

isuedNotesareisuedafterthexpirationofthegrandfatheringperiodandaresubjecto

witholdingunderFATCA,thenwitholdingagentsmaytreatalNotes,includingtheNotes

oferedpriortothexpirationofthegrandfatheringperiod,asubjectowitholdingunder

FATCA.

Holdershouldconsultheirowntaxadvisersregardinghowtheserulesmayaplytotheir

investmentinNotes.

SUBSCRIPTIONANDSALE

DEALERAGREMENT

Subjectothetermsandontheconditionscontainedintheamendedandrestatedealer

agrementdated18June2024(suchdealeragrementasmodifiedand/orsuplementedand/or

restatedfromtimetotime,the“DealerAgrement”)madebetwentheBank,theArangerand

thepermanentDealers,theNoteswilbeoferedonacontinuousbasisbytherelevantIsuerto

thepermanentDealers.TheNotesmayberesoldatprevailingmarketprices,oratpricesrelated

thereto,athetimeofsuchresale,asdeterminedbytherelevantDealer.TheNotesmayalsobe

soldbytherelevantIsuerthroughtheDealers,actingasagentsoftherelevantIsuer.The

DealerAgrementalsoprovidesforNotestobeisuedinsyndicatedTranchesthatareseveraly

underwritenbytwormoreDealers.

TherelevantIsuerwilpayeachrelevantDealeracomisionasagredbetwenthemin

respectofNotesubscribedbyit.TherelevantIsuerwilreimbursetheArangerforcertainof

theirexpensesincuredinconectionwiththestablishmentoftheProgrameandtheDealers

forcertainoftheiractivitiesinconectionwiththePrograme.Thecomisionsinrespectof

anisueofNotesonasyndicatedbasiswilbestatedintherelevantsubscriptionagrement.

TherelevantIsuerwilindemnifytheDealersagainstcertainliabilitiesinconectionwiththe

oferandsaleoftheNotes.TheDealerAgremententitlestheDealerstoterminateany

agrementhatheymaketosubscribeNotesincertaincircumstancespriortopaymentforsuch

NotesbeingmadetotherelevantIsuer.

InconectionwiththeisueofanyTrancheofNotes,theDealerorDealers(ifany)namedas

theStabilisationManager(s)(orperson(s)actingonbehalfofanyStabilisationManager(s)in

theaplicablePricingSuplementmay,tothextentpermitedbyaplicablelawsand

directives,over-alotNotesorefectransactionswithaviewtosuportingthepriceofthe

NotesoftheSeriesatalevelhigherthanthatwhichmightotherwiseprevailforalimitedperiod

aftertheIsueDateoftherelevantTrancheofNotes,butinsodoing,theStabilisation

Manager(s)oranypersonactingonbehalfoftheStabilisationManager(s)shalactasprincipal

andnotasagentoftherelevantIsuer.However,thereisnobligationofsuchStabilisation

Manager(s)todothis.Anylosorprofitsustainedasaconsequenceofanysuchoveralotment

orstabilisationshalbefortheacountoftherelevantDealer.

TheAranger,theDealersandtheirespectiveafiliatesarefulservicefinancialinstitutions

engagedinvariousactivities,whichmayincludesecuritiestrading,comercialandinvestment

banking,financialadvisory,investmentmanagement,principalinvestment,hedging,financing

andbrokerageactivities(“BankingServicesorTransactions”).TheAranger,theDealersor

anyoftheirespectiveafiliatesmayhave,fromtimetotime,performed,andmayinthefuture

perform,variousBankingServicesorTransactionswithorfortherelevantIsuerand/orits

afiliatesforwhichtheyhavereceived,orwilreceive,fesandexpensesandmay,fromtimeto

time,engageintransactionswithandperformservicesfortherelevantIsuerand/oritsafiliates

intheordinarycourseoftherelevantIsuer’sortheirbusines.Inadition,certainofthe

ArangerandDealers,namelyChinaCITICBankInternationalLimited,isasubsidiaryofthe

Bank.ThenetprocedsfromeachisueoftheNotesmaybeon-lentbytherelevantIsuertothe

Bankand/oranyofitsubsidiaries.

Intheordinarycourseoftheirvariousbusinesactivities,theAranger,theDealersandtheir

respectiveafiliatesmakeorholdabroadarayofinvestmentsandactivelytradedebtandequity

securities(orelatederivativesecurities)andfinancialinstruments(includingbankloans)for

theirownacountandfortheacountsoftheircustomers,andmayatanytimeholdlongand

shortpositionsinsuchsecuritiesandinstruments.Suchinvestmentandsecuritiesactivitiesmay

involvesecuritiesandinstrumentsoftherelevantIsuerortheBank,includingtheNotesand

couldadverselyafecthetradingpriceandliquidityoftherelevantNotes.TheAranger,the

Dealersandtheirafiliatesmaymakeinvestmentrecomendationsand/orpublishorexpres

independentresearchviews(positiveornegative)inrespectoftheNotesorotherfinancial

instrumentsoftherelevantIsuerortheBankandmayrecomendtotheirclientsthathey

acquirelongand/orshortpositionsintheNotesorotherfinancialinstrumentsoftherelevant

IsuerortheBank.

InconectionwitheachTrancheofNotesisuedunderthePrograme,theDealersorcertainof

theirafiliatesorafiliatesoftherelevantIsuermaypurchaseNotesandbealocatedNotesfor

asetmanagementand/orproprietarypurposesbutnotwithaviewtodistribution.Further,the

Dealersand/ortheirespectiveafiliatesorafiliatesoftherelevantIsuermayactasinvestors

andplaceorders,receivealocationsandpurchaseandtradeNotesfortheirownacount

(withoutaviewtodistributingsuchNotes)andsuchordersand/oralocationsand/ortradesof

theNotesmaybematerial.SuchentitiesmayholdorselsuchNotesorpurchasefurtherNotes

fortheirownacountinthesecondarymarketordealinanyothersecuritiesoftherelevant

Isuer,andtherefore,theymayoferorseltheNotesorothersecuritiesotherwisethanin

conectionwiththeofering.Acordingly,referenceshereintotheNotesbeing“ofered”should

bereadasincludinganyoferingoftheNotestotherelevantIsuer,theBank,theAranger,the

Dealersand/ortheirespectiveafiliates,orafiliatesoftherelevantIsuerasinvestorsfortheir

ownacount.Suchentitiesarenotexpectedtodisclosesuchtransactionsorthextentofany

suchinvestment,otherwisethaninacordancewithanylegaloregulatoryobligationtodoso.

Ifsuchtransactionsocur,thetradingpriceandliquidityofsuchNotesmaybeimpacted.

Furthermore,itisposiblethatasignificantproportionofaSeriesoftheNotesmaybeinitialy

alocatedto,andsubsequentlyheldby,alimitednumberofinvestors.Ifthisisthecase,the

tradingpriceandliquidityoftradinginsuchNotesmaybeconstrained.TheIsuers,theBank

andtheDealersareundernobligationtodisclosethextentofthedistributionoftheNotes

amongstindividualinvestors,otherwisethaninacordancewithanyaplicablelegalor

regulatoryrequirements.

UNITEDSTATES

EachDealerhasrepresentedandagredandeachfurtherDealerapointedunderthePrograme

wilberequiredtorepresentandagrethat:

(a)TheNoteshavenotbenandwilnotberegisteredundertheSecuritiesActandmaynotbe

oferedorsoldwithintheUnitedStates(or,incertaincircumstances,to,orfortheacount

orbenefitof,U.S.persons)exceptpursuantoanexemptionfrom,oratransactionot

subjecto,theregistrationrequirementsoftheSecuritiesAct.

(b)BearerNotesaresubjectoU.S.taxlawrequirementsandmaynotbeofered,soldor

deliveredwithintheUnitedStatesoritsposesionsortoaUnitedStatesperson,exceptin

certaintransactionspermitedbyU.S.taxregulations.BearerNoteswilbeisuedin

acordancewiththeprovisionsofU.S.TreasuryRegulationorsection1.163–

5(c)(2)(i)(D),unlestherelevantPricingSuplementspecifiesthatNoteswilbeisuedin

acordancewiththeprovisionofU.S.TreasuryRegulationorsection1.163–5(c)(2)(i)(C).

TheaplicablePricingSuplementwilidentifywhetherTEFRACrulesorTEFRADrules

aplyorwhetherTEFRAisnotaplicable.

(c)InconectionwithanyNoteswhichareoferedorsoldoutsidetheUnitedStatesin

relianceonexemptionfromtheregistrationrequirementsoftheSecuritiesActprovided

underCategory1ofRegulationS(“Category1ofRegulationSNotes”),eachDealerhas

representedandagred,andeachfurtherDealerapointedundertheProgramewilbe

requiredtorepresentandagre,thatitwilnotoferorselanyNotesconstitutingpartof

itsalotmentintheUnitedStatesexceptinacordancewithRule903ofRegulationSunder

theSecuritiesAct,andthatacordingly,neitherit,itsafiliatesnoranypersonsactingon

itsortheirbehalfhavengagedorwilengageinanydirectedselingefortswithrespect

totheNotes.Inadition,until40daysafterthecomencementoftheoferingofany

identifiabletrancheofsuchNotes,anoferorsaleofNoteswithintheUnitedStatesbyany

dealer(whetherornotparticipatingintheofering)mayviolatetheregistration

requirementsoftheSecuritiesAct.

(d)InconectionwithanyNoteswhichareoferedorsoldoutsidetheUnitedStatesin

relianceonanexemptionfromtheregistrationrequirementsoftheSecuritiesActprovided

underCategory2ofRegulationS(“Category2ofRegulationSNotes”),eachDealerhas

representedandagred,andeachfurtherDealerapointedundertheProgramewilbe

requiredtorepresentandagre,thatitwilofer,selordeliversuchCategory2of

RegulationSNotes(i)aspartoftheirdistributionatanytimeor(i)otherwiseuntil40

daysafterthecompletionofthedistribution,asdeterminedandcertifiedbytherelevant

Dealeror,inthecaseofanisueofNotesonasyndicatedbasis,therelevantleadmanager,

ofalNotesoftheTrancheofwhichsuchCategory2ofRegulationSNotesareapart,only

inacordancewithRule903ofRegulationSundertheSecuritiesAct.EachDealerhas

furtheragred,andeachfurtherDealerapointedundertheProgramewilberequiredto

agre,thatitwilsendtoeachdealertowhichitselsanyCategory2ofRegulationS

Notesduringthedistributioncomplianceperiodaconfirmationorothernoticesetingforth

therestrictionsonofersandsalesoftheCategory2ofRegulationSNoteswithinthe

UnitedStatesorto,orfortheacountorbenefitof,U.S.persons.

(e)Until40daysafterthecomencementoftheoferingofanySeriesofNotes,anoferor

saleofsuchNoteswithintheUnitedStatesbyanydealer(whetherornotparticipatingin

theofering)mayviolatetheregistrationrequirementsoftheSecuritiesActifsuchoferor

saleismadeotherwisethaninacordancewithanavailablexemptionfromregistration

undertheSecuritiesAct.

PROHIBITIONOFSALESTOUKRETAILINVESTORS

UnlesthePricingSuplementinrespectofanyNotespecifiesthe“ProhibitionofSalestoUK

RetailInvestors”as“NotAplicable”,eachDealerhasrepresentedandagred,andeachfurther

DealerapointedundertheProgramewilberequiredtorepresentandagre,thatithasnot

ofered,soldorotherwisemadeavailableandwilnotofer,selorotherwisemakeavailable

anyNoteswhicharethesubjectoftheoferingcontemplatedbythisOferingCircularas

completedbythePricingSuplementinrelationtheretotoanyretailinvestorintheUK.Forthe

purposesofthisprovision:

(i)thexpresion“retailinvestor”meansapersonwhoisone(ormore)ofthefolowing:

(a)aretailclient,asdefinedinpoint(8)ofArticle2ofRegulation(EU)No2017/565as

itformspartofdomesticlawbyvirtueoftheEUWA;or

(b)acustomerwithinthemeaningoftheprovisionsoftheFSMAandanyrulesor

regulationsmadeundertheFSMAtoimplementheInsuranceDistributionDirective,

wherethatcustomerwouldnotqualifyasaprofesionalclient,asdefinedinpoint(8)

ofArticle2(1)ofRegulation(EU)No600/2014asitformspartofdomesticlawby

virtueoftheEUWA;or

(c)notaqualifiedinvestorasdefinedinArticle2oftheUKProspectsRegulation,and

(i)thexpresionan“ofer”includesthecomunicationinanyformandbyanymeansof

suficientinformationonthetermsoftheoferandtheNotestobeoferedsoastoenable

aninvestortodecidetopurchaseorsubscribefortheNotes.

PUBLICOFERSELINGRESTRICTIONSUNDERTHEUKPROSPECTUS

REGULATION

IfthePricingSuplementinrespectofanyNotespecifiesthe“ProhibitionofSalestoUK

RetailInvestors”as“NotAplicable”,eachDealerhasrepresentedandagred,andeachfurther

DealerapointedundertheProgramewilberequiredtorepresentandagre,thatithasnot

madeandwilnotmakeanoferofNoteswhicharethesubjectoftheoferingcontemplatedby

thisOferingCircularascompletedbythePricingSuplementinrelationtheretotothepublicin

theUKexcepthatitmaymakeanoferofsuchNotestothepublicintheUK:

(i)ifthePricingSuplementinrelationtotheNotespecifiesthatanoferofthoseNotesmay

bemadeotherthanpursuantoSection86oftheFSMA(a“PublicOfer”),folowingthe

dateofpublicationofaprospectusinrelationtosuchNoteswhichasbenaprovedby

theFinancialConductAuthority,providedthatanysuchprospectushasubsequentlyben

completedbythePricingSuplementcontemplatingsuchPublicOfer,intheperiod

beginingandendingonthedatespecifiedinsuchprospectusorPricingSuplement,as

aplicable,andtherelevantIsuerhasconsentedinwritingtoitsuseforthepurposeof

thatPublicOfer;

(i)atanytimetoanylegalentitywhichisaqualifiedinvestorasdefinedinArticle2ofthe

UKProspectusRegulation;

(i)atanytimetofewerthan150naturalorlegalpersons(otherthanqualifiedinvestorsas

definedinArticle2oftheUKProspectusRegulation)intheUK,subjectobtainingthe

priorconsentoftherelevantDealerorDealersnominatedbytherelevantIsuerforany

suchofer;or

(iv)atanytimeinanyothercircumstancesfalingwithinSection86oftheFSMA,

providedthatnosuchoferofNotesreferedtoin(i)to(iv)shalrequiretherelevantIsuer

oranyDealertopublishaprospectuspursuantoSection85oftheFSMAorsuplementa

prospectuspursuantoArticle23oftheUKProspectusRegulation.

Forthepurposesofthisprovision,thexpresion“anoferofNotestothepublic”inrelation

toanyNotesmeansthecomunicationinanyformandbyanymeansofsuficientinformation

onthetermsoftheoferandtheNotestobeoferedsoastoenableaninvestortodecideto

purchaseorsubscribefortheNotesandthexpresion“UKProspectusRegulation”meansthe

ProspectusRegulationasitformspartofdomesticlawbyvirtueoftheEUWA.

SELINGRESTRICTIONSADRESINGADITIONALUNITEDKINGDOM

SECURITIESLAWS

EachDealerhasrepresentedandagred,andeachfurtherDealerapointedunderthePrograme

wilberequiredtorepresentandagrethat,exceptaspermitedbytherelevantsubscription

agrement:

(a)inrelationtoanyNoteswhichaveamaturityoflesthanoneyear,(i)itisaperson

whoseordinaryactivitiesinvolveitinacquiring,holding,managingordisposingof

investments(asprincipaloragent)forthepurposesofitsbusinesand(i)ithasnot

oferedorsoldandwilnotoferorselanyNotesotherthantopersonswhoseordinary

activitiesinvolvetheminacquiring,holding,managingordisposingofinvestments(as

principalorasagent)forthepurposesoftheirbusinesesorwhoitisreasonabletoexpect

wilacquire,hold,manageordisposeofinvestments(asprincipaloragent)forthe

purposesoftheirbusineseswheretheisueoftheNoteswouldotherwiseconstitutea

contraventionofSection19oftheFSMAbytherelevantIsuer;

(b)ithasonlycomunicatedorcausedtobecomunicatedandwilonlycomunicateor

causetobecomunicatedaninvitationorinducementoengageininvestmentactivity

(withinthemeaningofSection21oftheFSMA)receivedbyitinconectionwiththeisue

orsaleofanyNotesincircumstancesinwhichSection21(1)oftheFSMAdoesnotaply

totherelevantIsuer;and

(c)ithascompliedandwilcomplywithalaplicableprovisionsoftheFSMAwithrespecto

anythingdonebyitinrelationtoanyNotesin,fromorotherwiseinvolvingtheUnited

Kingdom.

PROHIBITIONOFSALESTOEARETAILINVESTORS

UnlesthePricingSuplementinrespectofanyNotespecifies“ProhibitionofSalestoEA

RetailInvestors”as“NotAplicable”,eachDealerhasrepresented,warantedandagred,and

eachfurtherDealerapointedundertheProgramewilberequiredtorepresent,warantand

agre,thatithasnotofered,soldorotherwisemadeavailableandwilnotofer,selor

otherwisemakeavailableanyNoteswhicharethesubjectoftheoferingcontemplatedbythis

OferingCircularascompletedbythePricingSuplementinrelationtheretotoanyretail

investorintheEuropeanEconomicArea.Forthepurposesofthisprovision:

(a)thexpresion“retailinvestor”meansapersonwhoisone(ormore)ofthefolowing:

(i)aretailclientasdefinedinpoint(11)ofArticle4(1)ofMiFIDI;or

(i)acustomerwithinthemeaningoftheInsuranceDistributionDirective,wherethat

customerwouldnotqualifyasaprofesionalclientasdefinedinpoint(10)ofArticle

4(1)ofMiFIDI;or

(i)notaqualifiedinvestorasdefinedintheProspectusRegulation;and

(b)thexpresionan“ofer”includesthecomunicationinanyformandbyanymeansof

suficientinformationonthetermsoftheoferandtheNotestobeoferedsoastoenable

aninvestortodecidetopurchaseorsubscribefortheNotes.

PUBLICOFERSELINGRESTRICTIONUNDERTHEPROSPECTUSDIRECTIVE

IfthePricingSuplementinrespectofanyNotespecifies“ProhibitionofSalestoEARetail

Investors”as“NotAplicable”,inrelationtoeachMemberStateoftheEuropeanEconomic

Area,eachDealerhasrepresented,warantedandagred,andeachfurtherDealerapointed

undertheProgramewilberequiredtorepresent,warantandagre,thatithasnotmadeand

wilnotmakeanoferofNoteswhicharethesubjectoftheoferingcontemplatedbythis

OferingCircularascompletedbythePricingSuplementinrelationtheretotothepublicinthat

MemberStatexcepthatitmaymakeanoferofsuchNotestothepublicinthatMember

State:

(a)Aprovedprospectus:ifthePricingSuplementinrelationtotheNotespecifiesthatan

oferofthoseNotesmaybemadeotherthanpursuantoArticle1(4)oftheProspectus

RegulationinthatMemberState(a“Non-exemptOfer”),folowingthedateof

publicationofaprospectusinrelationtosuchNoteswhichasbenaprovedbythe

competentauthorityinthatMemberStateor,whereapropriate,aprovedinanother

MemberStateandnotifiedtothecompetentauthorityinthatMemberState,providedthat

anysuchprospectushasubsequentlybencompletedbythePricingSuplement

contemplatingsuchNon-exemptOfer,inacordancewiththeProspectusRegulation,inthe

periodbeginingandendingonthedatespecifiedinsuchprospectusorPricing

Suplement,asaplicableandtherelevantIsuerhasconsentedinwritingtoitsuseforthe

purposeofthatNon-exemptOfer;

(b)Qualifiedinvestors:atanytimetoanylegalentitywhichisaqualifiedinvestorasdefined

intheProspectusRegulation;

(c)Fewerthan150oferes:atanytimetofewerthan150naturalorlegalpersons(otherthan

qualifiedinvestorsasdefinedintheProspectusRegulation)subjectobtainingtheprior

consentoftherelevantDealerorDealersnominatedbytherelevantIsuerforanysuch

ofer;or

(d)Otherexemptofers:atanytimeinanyothercircumstancesfalingwithinArticle1(4)of

theProspectusRegulation,

providedthatnosuchoferofNotesreferedtoin(b)to(d)aboveshalrequiretherelevant

IsueroranyDealertopublishaprospectuspursuantoArticle3oftheProspectusRegulation

orsuplementaprospectuspursuantoArticle23oftheProspectusRegulation.

Forthepurposesofthisprovision,thexpresionan“oferofNotestothepublic”inrelation

toanyNotesinanyMemberStatemeansthecomunicationinanyformandbyanymeansof

suficientinformationonthetermsoftheoferandtheNotestobeoferedsoastoenablean

investortodecidetopurchaseorsubscribefortheNotes,andthexpresion“Prospectus

Regulation”meansRegulation(EU)2017/1129.

SINGAPORE

IfthePricingSuplementinrespectofanyNotespecifies“SingaporeSalestoInstitutional

InvestorsandAcreditedInvestorsonly”as“Aplicable”,eachDealerhasacknowledged,and

eachfurtherDealerapointedundertheProgramewilberequiredtoacknowledge,thathis

OferingCircularhasnotbenregisteredasaprospectuswiththeMonetaryAuthorityof

Singapore.Acordingly,eachDealerhasrepresentedandagredthat,andeachfurtherDealer

apointedundertheProgramewilberequiredtorepresentandagrethatithasnotoferedor

soldanyNotesorcausedtheNotestobemadethesubjectofaninvitationforsubscriptionor

purchaseandwilnotoferorselanyNotesorcausetheNotestobemadethesubjectofan

invitationforsubscriptionorpurchase,andhasnotcirculatedordistributed,norwilitcirculate

ordistribute,thisOferingCircularoranyotherdocumentormaterialinconectionwiththe

oferorsale,orinvitationforsubscriptionorpurchase,oftheNotes,whetherdirectlyor

indirectly,toanypersoninSingaporeotherthan(i)toaninstitutionalinvestor(asdefinedin

Section4AofSFA)pursuantoSection274oftheSFAor(i)toanacreditedinvestor(as

definedinSection4AoftheSFA)pursuantoandinacordancewiththeconditionspecifiedin

Section275oftheSFA.

IfthePricingSuplementinrespectofanyNotespecifies“SingaporeSalestoInstitutional

InvestorsandAcreditedInvestorsonly”as“NotAplicable”,eachDealerhasacknowledged,

andeachfurtherDealerapointedundertheProgramewilberequiredtoacknowledge,that

thisOferingCircularhasnotbenregisteredasaprospectuswiththeMonetaryAuthorityof

Singapore.Acordingly,eachDealerhasrepresentedandagred,andeachfurtherDealer

apointedundertheProgramewilberequiredtorepresentandagre,thatithasnotoferedor

soldanyNotesorcausedtheNotestobemadethesubjectofaninvitationforsubscriptionor

purchaseandwilnotoferorselanyNotesorcausetheNotestobemadethesubjectofan

invitationforsubscriptionorpurchase,andhasnotcirculatedordistributed,norwilitcirculate

ordistribute,thisOferingCircularoranyotherdocumentormaterialinconectionwiththe

oferorsale,orinvitationforsubscriptionorpurchase,oftheNotes,whetherdirectlyor

indirectly,toanypersoninSingaporeotherthan(i)toaninstitutionalinvestor(asdefinedin

Section4AofSFA)pursuantoSection274oftheSFA,(i)toarelevantperson(asdefinedin

Section275(2)oftheSFA)pursuantoSection275(1)oftheSFA,oranypersonpursuanto

Section275(1A)oftheSFA,andinacordancewiththeconditionspecifiedinSection275of

theSFA,or(i)otherwisepursuanto,andinacordancewiththeconditionsof,anyother

aplicableprovisionoftheSFA.

JAPAN

TheNoteshavenotbenandwilnotberegisteredundertheFinancialInstrumentsand

ExchangeActofJapan(ActNo.25of1948,asamended)(the“FIEA”).Acordingly,each

Dealerhasrepresentedandagred,andeachfurtherDealerapointedundertheProgramewil

berequiredtorepresentandagre,thatithasnot,directlyorindirectly,oferedorsoldandwil

notoferorselanyNotesinJapanorto,orforthebenefitof,anyresidentofJapan(asdefined

underItem5,Paragraph1,Article6oftheForeignExchangeandForeignTradeAct(ActNo.

228of1949,asamended),ortothersfore-oferingore-sale,directlyorindirectly,inJapan

orto,orforthebenefitof,aresidentofJapan,exceptpursuantoanexemptionfromthe

registrationrequirementsof,andotherwiseincompliancewith,theFIEAandanyother

aplicablelaws,regulationsandministerialguidelinesofJapan.

HONGKONG

EachDealerhasrepresentedandagred,andeachfurtherDealerapointedunderthePrograme

wilberequiredtorepresentandagre,that:

(a)ithasnotoferedorsoldandwilnotoferorselinHongKong,bymeansofany

document,anyNotes(exceptforNoteswhicharea“structuredproduct”asdefinedinthe

SecuritiesandFuturesOrdinance(Cap.571)ofHongKong(the“SFO”)otherthan(i)to

“profesionalinvestors”asdefinedintheSFOandanyrulesmadeunderthatOrdinance,or

(i)inothercircumstanceswhichdonotresultinthedocumentbeinga“prospectus”as

definedintheCompanies(WindingUpandMiscelaneousProvisions)Ordinance(Cap.32)

ofHongKongorwhichdonotconstituteanofertothepublicwithinthemeaningofthat

Ordinance;and

(b)ithasnotisuedorhadinitsposesionforthepurposesofisueandwilnotisueor

haveinitsposesionforthepurposesofisue,whetherinHongKongorelsewhere,any

advertisement,invitationordocumentrelatingtotheNotes,whichisdirectedat,orthe

contentsofwhicharelikelytobeacesedoreadby,thepublicinHongKong(exceptif

permitedtodosounderthesecuritieslawsofHongKong)otherthanwithrespecto

NoteswhichareorareintendedtobedisposedofonlytopersonsoutsideHongKongor

onlyto“profesionalinvestors”asdefinedintheSFOandanyrulesmadeunderthat

Ordinance.

NOTICETOCAPITALMARKETINTERMEDIARIESANDPROSPECTIVEINVESTORS

PURSUANTOPARAGRAPH21OFTHEHONGKONGSFCODEOFCONDUCT–

IMPORTANTNOTICETOCMIS(INCLUDINGPRIVATEBANKS)

ThisnoticetoCMIs(includingprivatebanks)isasumaryofcertainobligationstheSFCode

imposesonCMIs,whichrequiretheatentionandcoperationofotherCMIs(includingprivate

banks).CertainCMIsmayalsobeactingasOCsfortherelevantCMIOferingandaresubject

toaditionalrequirementsundertheSFCode.Theaplicationoftheseobligationswildepend

ontherole(s)undertakenbytherelevantDealer(s)inrespectofeachCMIOfering.

Prospectiveinvestorswhoarethedirectors,employesormajorshareholdersoftherelevant

Isuer,aCMIoritsgroupcompanieswouldbeconsideredundertheSFCodeashavingan

AsociationwiththerelevantIsuer,theCMIortherelevantgroupcompany.CMIshould

specificalydisclosewhethertheirinvestorclientshaveanyAsociationwhensubmitingorders

fortherelevantNotes.Inadition,privatebankshouldtakealreasonablestepstoidentify

whethertheirinvestorclientsmayhaveanyAsociationswiththerelevantIsueroranyCMI

(includingitsgroupcompanies)andinformtherelevantDealersacordingly.

CMIsareinformedthat,unlesotherwisenotified,themarketingandinvestortargetingstrategy

fortherelevantCMIOferingmayincludeinstitutionalinvestors,sovereignwealthfunds,

pensionfunds,hedgefunds,familyoficesandhighnetworthindividuals,ineachcase,subject

totheselingrestrictionsandanyMiFIDIproductgovernancelanguageoranyUKMiFIR

productgovernancelanguagesetoutelsewhereinthisOferingCircularand/ortheaplicable

PricingSuplement.

CMIshouldensurethatordersplacedarebonafide,arenotinflatedandonotconstitute

duplicatedorders(i.e.twormorecorespondingoridenticalordersplacedviatwormore

CMIs).CMIshouldenquirewiththeirinvestorclientsregardinganyorderswhichapear

unusualoriregular.CMIshouldisclosetheidentitiesofalinvestorswhensubmitingorders

fortherelevantNotes(exceptforomnibusorderswhereunderlyinginvestorinformationmay

nedtobeprovidedtoanyOCswhensubmitingorders).Failuretoprovideunderlyinginvestor

informationforomnibusorders,whererequiredtodoso,mayresultinthatorderbeingrejected.

CMIshouldnotplace“X-orders”intotheorderbok.

CMIshouldsegregateandclearlyidentifytheirownproprietaryorders(andthoseoftheir

groupcompanies,includingprivatebanksasthecasemaybe)intheorderbokandbok

mesages.

CMIs(includingprivatebanks)shouldnotoferanyrebatestoprospectiveinvestorsorpason

anyrebatesprovidedbytherelevantIsuer.Inadition,CMIs(includingprivatebanks)should

notenterintoarangementswhichmayresultinprospectiveinvestorspayingdiferentpricesfor

therelevantNotes.CMIsareinformedthataprivatebankrebatemaybepayableastatedabove

andintheaplicablePricingSuplement,orotherwisenotifiedtoprospectiveinvestors.

TheSFCoderequiresthataCMIdisclosecompleteandacurateinformationinatimely

maneronthestatusoftheorderbokandotherelevantinformationitreceivestotargeted

investorsforthemtomakeaninformedecision.Inordertodothis,thoseDealersincontrolof

theorderbokshouldconsiderdisclosingorderbokupdatestoalCMIs.

WhenplacinganorderfortherelevantNotes,privatebankshouldisclose,athesametime,if

suchorderisplacedotherthanona“principal”basis(wherebyitisdeployingitsownbalance

shetforonwardselingtoinvestors).Privatebankswhodonotprovidesuchdisclosureare

herebydemedtobeplacingtheirorderonsucha“principal”basis.Otherwise,suchordermay

beconsideredtobeanomnibusorderpursuantotheSFCode.Privatebankshouldbeaware

thatplacinganorderona“principal”basismayrequiretherelevantafiliatedDealer(s)(ifany)

tocategoriseitasaproprietaryorderandaplythe“proprietaryorders”requirementsofthe

SFCodetosuchorderandwilresultinthatprivatebanknotbeingentitledto,andnotbeing

paid,anyrebate.

Inrelationtomnibusorders,whensubmitingsuchorders,CMIs(includingprivatebanks)that

aresubjectotheSFCodeshouldiscloseunderlyinginvestorinformationinrespectofeach

orderconstitutingtherelevantomnibusorder(failuretoprovidesuchinformationmayresultin

thatorderbeingrejected).Underlyinginvestorinformationinrelationtomnibusordershould

consistof:

(cid:129)Thenameofeachunderlyinginvestor;

(cid:129)Auniqueidentificationumberforeachinvestor;

(cid:129)Whetheranunderlyinginvestorhasany“Asociations”(asusedintheSFCode);

(cid:129)Whetheranyunderlyinginvestororderisa“ProprietaryOrder”(asusedintheSFCode);

(cid:129)Whetheranyunderlyinginvestororderisaduplicateorder.

UnderlyinginvestorinformationinrelationtomnibusordershouldbesentotheDealers

namedintherelevantPricingSuplement.

TothextentinformationbeingdisclosedbyCMIsandinvestorsispersonaland/orconfidential

inature,CMIs(includingprivatebanks)agreandwarant:(A)totakeapropriatestepsto

safeguardthetransmisionofsuchinformationtoanyOCs;and(B)thatheyhaveobtainedthe

necesaryconsentsfromtheunderlyinginvestorstodisclosesuchinformationtoanyOCs.By

submitinganorderandprovidingsuchinformationtoanyOCs,eachCMI(includingprivate

banks)furtherwarantsthatheyandtheunderlyinginvestorshaveunderstodandconsentedto

thecolection,disclosure,useandtransferofsuchinformationbyanyOCsand/oranyother

thirdpartiesasmayberequiredbytheSFCode,includingtotherelevantIsuer,relevant

regulatorsand/oranyotherthirdpartiesasmayberequiredbytheSFCode,forthepurposeof

complyingwiththeSFCode,duringthebokbuildingprocesfortherelevantCMIOfering.

CMIsthatreceivesuchunderlyinginvestorinformationareremindedthatsuchinformation

shouldbeusedonlyforsubmitingordersintherelevantCMIOfering.TherelevantDealers

maybeaskedtodemonstratecompliancewiththeirobligationsundertheSFCode,andmay

requestotherCMIs(includingprivatebanks)toprovidevidenceshowingcompliancewiththe

obligationsabove(inparticular,thathenecesaryconsentshavebenobtained).Insuchevent,

otherCMIs(includingprivatebanks)arerequiredtoprovidetherelevantDealerswithsuch

evidencewithinthetimelinerequested.

PEOPLE’SREPUBLICOFCHINA

EachDealerhasrepresentedandagred,andeachfurtherDealerapointedunderthePrograme

wilberequiredtorepresentandagre,thatheNotesarenotbeingoferedorsoldandmaynot

beoferedorsold,directlyorindirectly,inthePeople’sRepublicofChina(forsuchpurposes,

notincludingtheHongKongSpecialAdministrativeRegionandMacauSpecialAdministrative

RegionofthePeople’sRepublicofChinaorTaiwan),exceptaspermitedbythesecuritieslaws

ofthePeople’sRepublicofChina.

GENERAL

EachDealerhasagredandeachfurtherDealersapointedundertheProgramewilbe

requiredtoagrethatitwil(tothebestofitsknowledgeandbelief)complywithalaplicable

securitieslawsandregulationsinforceinanyjurisdictioninwhichitpurchases,ofers,selsor

deliversNotesorposesesordistributesthisOferingCircularandwilobtainanyconsent,

aprovalorpermisionrequiredbyitforthepurchase,ofer,saleordeliverybyitofNotes

underthelawsandregulationsinforceinanyjurisdictiontowhichitisubjectorinwhichit

makesuchpurchases,ofers,salesordeliveriesandnoneoftheIsuersandanyotherDealer

shalhaveanyresponsibilitytherefor.

NoneoftheIsuersandanyoftheDealersrepresentsthatNotesmayatanytimelawfulybe

soldincompliancewithanyaplicableregistrationorotherequirementsinanyjurisdictionthat

wouldpermitapublicoferingofanyoftheNotes,orpursuantoanyexemptionavailable

thereunder,orasumesanyresponsibilityforfacilitatinganysuchsale.

WithregardtoeachTranche,therelevantDealerwilberequiredtocomplywithanyaditional

restrictionsagredbetwentherelevantIsuerandtherelevantDealerandsetoutinthe

aplicablePricingSuplement.

GENERALINFORMATION

AUTHORISATION

1.TheisueoftheNoteshasbendulyauthorisedpursuantotheresolutionsoftheBank’s

boardofdirectorsdated28August2024andtheresolutionsoftheBank’shareholder

dated20November2024.

LISTING

2.AplicationhasbenmadetotheHongKongStockExchangeforthelistingofthe

ProgramebywayofdebtisuestoProfesionalInvestorsonlyduringthe12month

periodafterthedateofthisOferingCircular.Separateaplicationwilbemadeforthe

listingof,andpermisiontodealin,theNotesisuedundertheProgrameontheHong

KongStockExchange.TheisuepriceoflistedNotesontheHongKongStockExchange

wilbexpresedasapercentageoftheirnominalamount.

NDRCAPROVAL

3.WhereaplicableforarelevantTrancheofNotes,theNoteswilbeisuedinacordance

withthepre-isuancexaminationandregistrationwiththeNDRCtobtaintheCertificate

ofExaminationandRegistrationofForeignDebtsBorowedbyEnterprises(企业借用外债

审核登记证明)priortotheisuanceoftheNotesundertheProgramepursuantothe

NDRCAdministrativeMeasures.

4.TheBankwilmakeapre-isuanceregistrationwiththeNDRC,folowedbypost-isuance

filingswiththeNDRCwithintheprescribedtimefolowingoftheNotes.

CLEARINGSYSTEMS

5.TheNotestobeisuedundertheProgramehavebenaceptedforclearancethrough

EuroclearandClearstream.TheapropriateComonCodeandISINforeachTrancheof

NotesalocatedbyEuroclearandClearstreamwilbespecifiedintheaplicablePricing

Suplement.TheIsuermayalsoaplytohaveNotesaceptedforclearancethroughthe

CMU.TherelevantCMUinstrumentnumberwilbespecifiedintheaplicablePricing

Suplement.IftheNoteswilbeclearedthroughanaditionaloralternativeclearing

system,theapropriateinformationwilbespecifiedintherelevantPricingSuplement.

LEGALENTITYIDENTIFIER

6.ThelegalentityidentifieroftheBankis300300C1030211000384.

NOSIGNIFICANTCHANGE

7.SaveasdisclosedinthisOferingCircular,therehasbenosignificantchangeinthe

financialortradingpositionoftheBankoroftheGroupsince31December2024.

NOMATERIALADVERSECHANGE

8.SaveasdisclosedinthisOferingCircular,therehasbenomaterialadversechangein

thefinancialpositionorprospectsoftheBankoroftheGroupsince31December2024.

LITIGATION

9.SaveasdisclosedinthisOferingCircular,neithertheIsuernoranymemberoftheGroup

isinvolvedinanylegalorarbitrationprocedings(includinganyprocedingswhichare

pendingorthreatenedofwhichtheIsuerisaware)whichmayhaveorhavehadinthe12

monthsprecedingthedateofthisdocumentasignificantefectonthefinancialpositionof

theIsuerortheGroup.

INDEPENDENTAUDITOR

10.ThecurentindependentauditoroftheBankisKPMG,CertifiedPublicAcountants,Hong

Kong.

11.TheauditedconsolidatedfinancialstatementsoftheBankasatandfortheyearended31

December2022,whichareincludedelsewhereinthisOferingCircular,havebenaudited

byPricewaterhouseCopers,thethenindependentauditoroftheBank,inacordancewith

HKSAs,astatedinitsreportincludedinthisOferingCircular.

12.TheauditedconsolidatedfinancialstatementsoftheBankasatandfortheyearsended31

December2023and2024,whichareincludedelsewhereinthisOferingCircular,have

benauditedbyKPMG,thecurentindependentauditoroftheBank,inacordancewith

HKSAs,astatedinitsreportsincludedinthisOferingCircular.

DOCUMENTS

13.SolongasNotesarecapableofbeingisuedunderthePrograme,copiesofthefolowing

documentswil,whenpublished,beavailablefromtheregisteredoficeoftherelevant

IsuerandfromthespecifiedoficeoftheFiscalAgentforthetimebeingat40/F

ChampionTower,3GardenRoad,Central,HongKong:

(a)theconstitutionaldocumentsoftheBank;

(b)theauditedconsolidatedfinancialstatementsoftheGroupinrespectoftheyears

ended31December2022,2023and2024(ineachcasetogetherwiththeauditor’s

reportinconectiontherewith).TheBankcurentlypublishesauditedconsolidated

acountsonananualbasis;

(c)themostrecentanualauditedconsolidatedfinancialstatementsoftheGroupandthe

mostrecentlypublishedunauditedconsolidatedinterimfinancialstatementsofthe

Group(ifany);

(d)theFiscalAgencyAgrement,theDedofCovenantandtheformsoftheGlobal

Notes,theNotesindefinitiveform,theReceipts,theCouponsandtheTalons;

(e)acopyofthisOferingCirculartogetherwithanysuplementothisOferingCircular

andanyotherdocumentsincorporatedhereinortherein;and

(f)anyfutureoferingcirculars,prospectuses,informationmemorandandsuplements

includingPricingSuplements(savethataPricingSuplementrelatingtoanunlisted

NotewilonlybeavailableforinspectionbyaholderofsuchNoteandsucholder

mustproducevidencesatisfactorytotherelevantIsuerandthePayingAgentasto

itsholdingofNotesandidentity)tothisOferingCircularandanyotherdocuments

incorporatedhereinorthereinbyreference.

INDEXTOCONSOLIDATEDFINANCIALSTATEMENTS

Page

FORTHEFIRSTQUARTEROF2025ENDED31MARCH2025

UnauditedConsolidatedStatementofProfitorLosand

OtherComprehensiveIncome.F-2

UnauditedConsolidatedStatementofFinancialPosition.F-4

UnauditedConsolidatedStatementofCashFlows.F-7

FORTHEYEARENDED31DECEMBER2024

(1)

IndependentAuditor’sReport.F-10

ConsolidatedStatementofProfitorLos.F-17

ConsolidatedStatementofProfitorLosandOtherComprehensiveIncome.F-18

ConsolidatedStatementofFinancialPosition.F-19

ConsolidatedStatementofChangesinEquity.F-21

ConsolidatedStatementofCashFlows.F-22

NotestotheConsolidatedFinancialStatements.F-24

FORTHEYEARENDED31DECEMBER2023

(1)

IndependentAuditor’sReport.F-146

ConsolidatedAnualStatementofProfitorLosand

OtherComprehensiveIncome.F-153

ConsolidatedAnualStatementofFinancialPosition.F-155

ConsolidatedAnualStatementofChangesinEquity.F-157

ConsolidatedAnualStatementofCashFlows.F-158

NotestotheConsolidatedAnualFinancialStatements.F-160

FORTHEYEARENDED31DECEMBER2022

(1)

IndependentAuditor’sReport.F-281

ConsolidatedAnualStatementofProfitorLosand

OtherComprehensiveIncome.F-288

ConsolidatedAnualStatementofFinancialPosition.F-290

ConsolidatedAnualStatementofChangesinEquity.F-292

ConsolidatedAnualStatementofCashFlows.F-293

NotestotheConsolidatedAnualFinancialStatements.F-295

(1)

Theindependentauditor’sreportsontheGroup’sconsolidatedfinancialstatementsfortheyearsended31

December2022,2023and2024setouthereinarereproducedfromtheGroup’sanualreportsfortheyears

ended31December2022,2023and2024,respectively.Pagereferencesreferedtointheabovenamedreports

refertopagesetoutinsuchanualreports.Theseindependentauditor’sreportsandtheconsolidatedfinancial

statementshavenotbenspecificalypreparedforinclusioninthisOferingCircular.

–F-1–

-28 –

China CITIC Bank Corporation Limited

Consolidated Statement of Profit or Los

For the Period of Thre Months Ended 31 March 2025

(Amounts in milions of Renminbi unles otherwise stated)

January –

March

January –

March

UnauditedUnaudited

Interest income73,13378,731

Interest expense(37,456)(43,771)

Net interest income35,67734,960

Fe and comision income10,3099,389

Fe and comision expense(1,873)(1,013)

Net fe and comision income8,4368,376

Net trading gain1,2661,606

Net gain from investment securities5,7918,433

Net hedging (los)/gain(2)1

Other net operating income446193

Operating income51,61453,569

Operating expenses(14,567)(15,061)

Net operating profit before impairment37,04738,508

Credit impairment loses(14,403)(16,819)

Impairment loses on other asets(14)(26)

Share of profit of asociates and joint ventures212251

Profit before tax22,84221,914

Income tax expense(3,059)(2,523)

Profit for the period19,78319,391

Profit atributable to:

Equity holders of the Bank19,50919,191

Non-controling interests274200

Earnings per share atributable to the ordinary shareholders

of the Bank

Basic earnings per share (RMB) 0.360.39

Diluted earnings per share (RMB)0.360.38

–F-2 –

– 29 –

China CITIC Bank Corporation Limited

Consolidated Statement of Comprehensive Income

For the Period of Thre Months Ended 31 March 2025

(Amounts in milions of Renminbi unles otherwise stated)

January –

March

January –

March

UnauditedUnaudited

Profit for the period19,78319,391

Other comprehensive income, net of tax:

I. Items that wil not be reclasified subsequently to profit or los

– Fair value changes on financial investments designated at fair

value through other comprehensive income2015

I. Items that may be reclasified subsequently to profit or los

– Other comprehensive income transferable to profit or los

under equity method(41)17

– Fair value changes on financial asets at fair value through

other comprehensive income(6,689)3,301

– Impairment alowance on financial asets at fair value through

other comprehensive income(12)12

– Exchange diference on translation of foreign financial

statements(491)952

Other comprehensive income, net of tax(7,213)4,297

Total comprehensive income for the period12,57023,688

Total comprehensive income atribute to:

Equity holders of the Bank12,19123,489

Non-controling interests379199

– F-3 –

– 30 –

China CITIC Bank Corporation Limited

Consolidated Statement of Financial Position

31 March 2025

(Amounts in milions of Renminbi unles otherwise stated)

31 March

31 December

UnauditedAudited

Asets

Cash and balances with central banks368,270340,915

Deposits with banks and non-bank financial institutions122,133128,193

Precious metals31,37113,580

Placements with and loans to banks and non-bank financial

institutions446,523404,801

Derivative financial asets64,73585,929

Financial asets held under resale agrements99,702136,265

Loans and advances to customers5,747,7355,601,450

Financial investments

– at fair value through profit or los653,867647,398

– at amortized cost1,123,3921,118,989

– at fair value through other comprehensive income956,456849,781

– designated at fair value through other comprehensive income4,7274,702

Investments in asociates and joint ventures7,5187,349

Investment properties573578

Property, plant and equipment51,87746,516

Right-of-use asets11,01511,035

Intangible asets2,8263,419

Godwil951959

Defered tax asets56,44054,130

Other asets105,15776,733

Total asets9,855,2689,532,722

– F-4 –

– 31 –

31 March

31 December

UnauditedAudited

Liabilities

Borowings from central banks109,173124,151

Deposits from banks and non-bank financial institutions822,554968,492

Placements from banks and non-bank financial institutions104,42288,550

Financial liabilities at fair value through profit or los2,7541,719

Derivative financial liabilities66,84681,162

Financial asets sold under repurchase agrements384,067278,003

Deposits from customers6,111,7795,864,311

Acrued staf costs18,43020,318

Taxes payable7,3757,645

Debt securities isued1,333,6361,224,038

Lease liabilities10,93110,861

Provisions10,1749,990

Defered tax liabilities5839

Other liabilities46,22846,078

Total liabilities9,028,4278,725,357

– F-5 –

– 32 –

31 March

31 December

UnauditedAudited

Equity

Share capital55,64554,397

Other equity instruments104,948105,499

Capital reserve95,56689,286

Other comprehensive income9,54416,862

Surplus reserve67,62967,629

General reserve111,801111,723

Retained earnings363,299343,868

Total equity atributable to the equity holders of the Bank808,432789,264

Non-controling interests18,40918,101

Total equity826,841807,365

Total liabilities and equity9,855,2689,532,722

Aproved and authorized for isue by the Board of Directors on 29 April 2025.

Fang HeyingLu Wei

Chairman, Executive DirectorPresident (In charge of finance and acounting work

of the Bank)

Kang Chao(Company stamp)

The head of the Finance and Acounting

Department

– F-6 –

– 33 –

China CITIC Bank Corporation Limited

Consolidated Statement of Cash Flows

For the Period of Thre Months Ended 31 March 2025

(Amounts in milions of Renminbi unles otherwise stated)

January –

March

January –

March

UnauditedUnaudited

Operating activities

Profit before tax22,84221,914

Adjustments for:

– revaluation loses/(gains) on investments, derivatives and

investment properties2,135(1,973)

– investment gains(5,815)(5,707)

– net gains on disposal of property, plant and equipment,

intangible asets and other asets(4)(17)

– unrealised foreign exchange loses/(gains)1,290(1,044)

– credit impairment loses14,40316,819

– impairment loses on other asets1426

– depreciation and amortisation9631,324

– interest expense on debt securities isued6,5146,899

– dividend income from equity investment(10)–

– depreciation of right-of-use asets and interest expense on

lease liabilities858883

– income tax paid(3,052)(3,248)

Subtotal40,13835,876

– F-7 –

– 34 –

January –

March

January –

March

UnauditedUnaudited

Changes in operating asets and liabilities:

Decrease in balances with central banks2,11130,319

Decrease in deposits with banks and non-bank financial institutions7,39814,161

Increase in placements with and loans to banks and non-bank

financial institutions(67,495)(55,671)

Decrease in financial asets held for trading18,10225,775

Decrease in financial asets held under resale agrements 38,01728,332

Increase in loans and advances to customers (158,922)(91,560)

(Decrease)/Increase in borowings from central banks (14,042)3,918

Decrease in deposits from banks and non-bank financial

institutions (145,591)(20,641)

Increase/(Decrease) in placements from banks and non-bank

financial institutions15,838(10,872)

Increase/(Decrease) in financial liabilities at fair value through

profit or los 1,048(345)

Increase/(Decrease) in financial asets sold under repurchase

agrements106,218(249,248)

Increase in deposits from customers 251,88311,750

Increase in other operating asets(46,864)(48,728)

Decrease in other operating liabilities(9,846)(6,205)

Subtotal(2,145)(369,015)

Net cash flows from/(used in) operating activities37,993(333,139)

– F-8 –

– 35 –

January –

March

January –

March

UnauditedUnaudited

Investing activities

Proceds from disposal and redemption of investments979,473875,269

Proceds from disposal of property, plant and equipment, land use

rights, and other asets2120

Cash received from equity investment income251136

Payments on acquisition of investments(1,107,828)(854,688)

Payments on acquisition of property, plant and equipment, land

use rights and other asets(8,272)(1,795)

Net cash flows (used in)/from investing activities(136,355)18,942

Financing activities

Cash received from debt securities isued388,079531,114

Cash paid for redemption of debt securities isued(271,320)(279,165)

Interest paid on debt securities isued(5,148)(6,584)

Cash paid for dividends(2,593)(70)

Cash paid in conection with other financing activities(752)(774)

Net cash flows from financing activities108,266244,521

Increase/(Decrease) in cash and cash equivalents9,904(69,676)

Cash and cash equivalents as at 1 January262,779249,002

Efect of exchange rate changes on cash and cash equivalents(859)2,333

Cash and cash equivalents as at 31 March271,824181,659

Cash flows from operating activities include:

Interest received72,82378,320

Interest paid, excluding interest paid for debt securities isued(32,452)(35,468)

– F-9 –

Chapter 9 Independent Auditor’s Report

1892024 Anual Report

For year ended 31 December 2024

To the Shareholders of China CITIC Bank Corporation Limited

(Incorporated in the People’s Republic of China with limited liability)

Opinion

We have audited the consolidated financial statements of China CITIC Bank Corporation Limited (the “Bank”) and its

subsidiaries (the “Group”) set out on pages 196 to 324, which comprise the consolidated statement of financial position as

at 31 December 2024, the consolidated statement of profit or los, the consolidated statement of profit or los and other

comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for

the year then ended and notes to the consolidated financial statements, comprising material acounting policies and other

explanatory information.

In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of the

Group as at 31 December 2024 and of its consolidated financial performance and its consolidated cash flows for the year

then ended in acordance with IFRS Acounting Standards isued by the International Acounting Standards Board (“IASB”)

and have ben properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance.

Basis for Opinion

We conducted our audit in acordance with Hong Kong Standards on Auditing (“HKSAs”) isued by the Hong Kong Institute

of Certified Public Acountants (“HKICPA”). Our responsibilities under those standards are further described in the Auditor’s

responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in

acordance with the HKICPA’s Code of Ethics for Profesional Acountants (the “Code”) together with any ethical requirements

that are relevant to our audit of the consolidated financial statements in the People’s Republic of China, and we have fulfiled

our other ethical responsibilities in acordance with these requirements and the Code. We believe that the audit evidence we

have obtained is suficient and apropriate to provide a basis for our opinion.

Key Audit Maters

Key audit maters are those maters that, in our profesional judgement, were of most significance in our audit of the consolidated

financial statements of the curent period. These maters were adresed in the context of our audit of the consolidated financial

statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these maters.

– F-10 –

China CITIC Bank Corporation Limited190

Chapter 9 Independent Auditor’s Report

For year ended 31 December 2024

Measurement of expected credit loses for loans and advances to customers and financial asets at amortised costs

Se Note 4(c), Note 5(i), Note 21 and Note 22 to the consolidated financial statements.

The key audit materHow the mater was adresed in our audit

As at 31 December 2024, the gros balance of loans and

advances to customers and acrued interest included for

the purpose of expected credit los asesment in the

Group’s consolidated statement of financial position,

amounted to RMB5,730,231 milion, for which

management recognized an impairment alowance of

RMB140,942 milion; the gros balance of financial asets

at amortised costs and acrued interest included for the

purpose of expected credit los asesment amounted

to RMB1,145,154 milion, for which management

recognized an impairment alowance of RMB26,165

milion.

The Group uses an expected credit los (“ECL”) model

to measure the los alowance for loans and advances

to customers and financial asets at amortised costs in

acordance with IFRS 9, Financial instruments.

The determination of ECL alowance of loans and

advances to customers and financial asets at amortised

costs is subject to the aplication of a number of key

parameters and asumptions, including the credit

risk staging, probability of default, los given default,

exposures at default and discount rate, adjustments

for forward-loking information and other adjustment

factors. Extensive management judgment is involved in

the selection of those parameters and the aplication of

the asumptions.

Our audit procedures to ases ECL for loans and advances

to customers and financial asets at amortised costs

included the folowing:

’s IT audit

specialists, understanding and asesing the design,

implementation and operating efectivenes of

key internal controls of financial reporting over

the aproval, recording and monitoring of loans

and advances to customers and financial asets at

amortised costs, the credit risk staging proces and

the measurement of ECL for loans and advances to

customers and financial asets at amortised costs.

’s financial risk

specialists, asesing the apropriatenes of the ECL

model in determining the los alowance of loans

and advances to customers and financial asets at

amortised costs and the apropriatenes of the key

parameters and asumptions in the model, which

included credit risk staging, probability of default,

los given default, exposure at default, adjustments

for forward-loking information and other

adjustments, and asesing the apropriatenes of

related key management judgement.

• Asesing the completenes and acuracy of key

data used in the ECL model. We compared

the total balance of the loans and advances to

customers and financial asets at amortised costs

used by management to ases the ECL alowance

with the general ledger to check the completenes

of the data. We also selected samples to compare

information of individual loan and advance to

customers and financial asets at amortised costs

with the underlying agrements and other related

documentation. In adition, we checked the

acuracy of key external data used by management

by comparing them with public sources.

• For key parameters used in the ECL model which

were derived from system generated internal data,

asesing the acuracy of input data by comparing

the input data with original documents on a sample

basis. In adition, we involved KPMG’s IT audit

specialists to ases the acuracy of the loans and

advances’ overdue information on a sample basis.

– F-11 –

1912024 Anual Report

Chapter 9 Independent Auditor’s Report

For year ended 31 December 2024

Measurement of expected credit loses for loans and advances to customers and financial investments (continued)

Se Note 4(c), Note 5(i), Note 21 and Note 22 to the consolidated financial statements.

The key audit materHow the mater was adresed in our audit

The amount of impairment of the loans and advances

to customers and financial asets at amortised costs is

significant, and the measurement has a high degre of

estimation uncertainty. The measurement of ECL aplied

significant management judgments and asumptions, and

involved significant inherent risk. In view of these reasons,

we identified this as a key audit mater.

’s

asesment on whether the credit risk of the

loans and advances customers and financial asets

at amortised costs have, or have not, increased

significantly since initial recognition and whether

the loans and advances to customers and financial

asets at amortised costs are credit-impaired by

selecting risk-based samples. We analyzed the

portfolio by industry sector to select samples in

industries more vulnerable to the curent economic

situation and selected samples from borowers

with potential credit risk. For selected samples,

we checked loans and advances to customers

and financial asets at amortised costs overdue

information, making enquiries of the credit

managers about the borowers’ busines operations,

checking borowers’ financial information and

researching market information about borowers’

busineses, to check the credit risk status of the

borower, and the reasonablenes of credit risk

stage.

• For corporate loans and advances and financial

asets at amortised costs that are credit-impaired,

we selected samples to evaluate the forecasted

future cash flows prepared by the Group based

on financial information of borowers and

guarantors, colateral valuations, other available

information and posible future factors together

with discount rates in suporting the computation

of los alowance.

, we selected

samples and asesed the acuracy of calculation

for loans and advances to customers and financial

asets at amortised costs’ credit loses by using the

ECL model.

• Performing retrospective review of ECL model

components and significant asumptions to ases

whether the results indicate posible management

bias on los estimation.

• Asesing the reasonablenes of the disclosures in

the financial statements in relation to ECL for loans

and advances to customers and financial asets

at amortised costs against prevailing acounting

standards.

– F-12 –

China CITIC Bank Corporation Limited192

Chapter 9 Independent Auditor’s Report

For year ended 31 December 2024

Consolidation of Structured Entities – Non-principal Guaranted Wealth Management Products

Se Note 4(a), Note 5(v) and Note 59 to the consolidated financial statements.

The key audit materHow the mater was adresed in our audit

As at 31 December 2024, al of non-principal guaranted

wealth management products (“WMPs”) isued and

managed by the Group are structured entities that are

not included in the scope of consolidation.

In determining whether the Group retains any partial

interests in a structured entity for non-principal guaranted

WMPs or should consolidate it, management is required

to consider the power it poseses, its exposure to variable

returns, and its ability to use its power to afect returns.

These factors are not purely quantitative and ned to be

considered colectively in the overal substance of the

transactions.

We have identified this as a key audit mater due to the

material balance and significant management judgements

were involved in asesing the consolidation of the

structured entities for non-principal guaranted WMPs.

Our audit procedures related to consolidation of

structured entities for non-principal guaranted WMPs

included the folowing:

•understanding and asesing the design,

implementation, and operating efectivenes of

key internal controls of financial reporting over

measurement of interests in and consolidation of

structured entities for non-principal guaranted

WMPs.

•selecting samples of structured entities for non-

principal guaranted WMPs and performing the

folowing procedures:

–inspecting the related contracts, internal

establishment documents and information

disclosed to the investors to understand

the purpose of the establishment of

the structured entity for non-principal

guaranted WMPs and the involvement

the Group has with the structured entity

for non-principal guaranted WMPs and

to ases management’s judgement over

whether the Group can exercise power

over the structured entity for non-principal

guaranted WMPs;

–F-13 –

1932024 Anual Report

Chapter 9 Independent Auditor’s Report

For year ended 31 December 2024

Consolidation of Structured Entities – Non-principal Guaranted Wealth Management Products (continued)

Se Note 4(a), Note 5(v) and Note 59 to the consolidated financial statements.

The key audit materHow the mater was adresed in our audit

– performed independent analysis and tests

on the variable returns from the structured

entities for non-principal guaranted WMPs,

including but not limited to comision

income and aset management fes earned,

gain from investments, retention of residual

income, and, if any, liquidity, and other

suport provided to the structured entities

for non-principal guaranted WMPs, to

ases management’s judgement as to the

exposure, or rights, to variable returns from

the Group’s involvement in such an entity;

– inspecting management’s analysis of

the structured entity for non-principal

guaranted WMPs, including qualitative

analysis and the calculation of the magnitude

and variability asociated with the Group’s

economic interests in the structured entity

for non-principal guaranted WMPs, to

ases management’s judgement over the

Group’s ability to afect its variable returns

from the structured entity for non-principal

guaranted WMPs;

– asesing management’s judgement over

whether the structured entity for non-

principal guaranted WMPs should be

consolidated or not.

• asesing the reasonablenes of the disclosures

in the financial statements in relation to the

measurement of interests in and consolidation of

structured entities for non-principal guaranted

WMPs against prevailing acounting standards.

– F-14 –

China CITIC Bank Corporation Limited194

Chapter 9 Independent Auditor’s Report

For year ended 31 December 2024

Information other than the consolidated financial statements and auditor’s report thereon

The directors are responsible for the other information. The other information comprises al the information included in the

anual report, other than the consolidated financial statements and our auditor’s report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not expres any form

of asurance conclusion thereon.

In conection with our audit of the consolidated financial statements, our responsibility is to read the other information and,

in doing so, consider whether the other information is materialy inconsistent with the consolidated financial statements or

our knowledge obtained in the audit or otherwise apears to be materialy mistated.

If, based on the work we have performed, we conclude that there is a material mistatement of this other information, we are

required to report that fact. We have nothing to report in this regard.

Responsibilities of the directors for the consolidated financial statements

The directors are responsible for the preparation of the consolidated financial statements that give a true and fair view in

acordance with IFRS Acounting Standards isued by the IASB and the disclosure requirements of the Hong Kong Companies

Ordinance and for such internal control as the directors determine is necesary to enable the preparation of consolidated

financial statements that are fre from material mistatement, whether due to fraud or eror.

In preparing the consolidated financial statements, the directors are responsible for asesing the Group’s ability to continue

as a going concern, disclosing, as aplicable, maters related to going concern and using the going concern basis of acounting

unles the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

The directors are asisted by the Audit Comite in discharging their responsibilities for overseing the Group’s financial

reporting proces.

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable asurance about whether the consolidated financial statements as a whole are fre from

material mistatement, whether due to fraud or eror, and to isue an auditor’s report that includes our opinion. This report

is made solely to you, as a body, and for no other purpose. We do not asume responsibility towards or acept liability to any

other person for the contents of this report.

Reasonable asurance is a high level of asurance, but is not a guarante that an audit conducted in acordance with HKSAs

wil always detect a material mistatement when it exists. Mistatements can arise from fraud or eror and are considered

material if, individualy or in the agregate, they could reasonably be expected to influence the economic decisions of users

taken on the basis of these consolidated financial statements.

As part of an audit in acordance with HKSAs, we exercise profesional judgement and maintain profesional scepticism

throughout the audit. We also:

, whether due to fraud

or eror, design and perform audit procedures responsive to those risks, and obtain audit evidence that is suficient

and apropriate to provide a basis for our opinion. The risk of not detecting a material mistatement resulting from

fraud is higher than for one resulting from eror, as fraud may involve colusion, forgery, intentional omisions,

misrepresentations, or the overide of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are apropriate

in the circumstances, but not for the purpose of expresing an opinion on the efectivenes of the Group’s internal

control.

– F-15 –

1952024 Anual Report

Chapter 9 Independent Auditor’s Report

For year ended 31 December 2024

• Evaluate the apropriatenes of acounting policies used and the reasonablenes of acounting estimates and related

disclosures made by the directors.

’ use of the going concern basis of acounting and, based on the audit

evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt

on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required

to draw atention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such

disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to

the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a

going concern.

, structure and content of the consolidated financial statements, including the disclosures,

and whether the consolidated financial statements represent the underlying transactions and events in a maner that

achieves fair presentation.

• Plan and perform the group audit to obtain suficient apropriate audit evidence regarding the financial information

of the entities or busines units within the Group as a basis for forming an opinion on the group financial statements.

We are responsible for the direction, supervision and review of the audit work performed for purposes of the group

audit. We remain solely responsible for our audit opinion.

We comunicate with the Audit Comite regarding, among other maters, the planed scope and timing of the audit and

significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Audit Comite with a statement that we have complied with relevant ethical requirements regarding

independence and comunicate with them al relationships and other maters that may reasonably be thought to bear on our

independence and, where aplicable, actions taken to eliminate threats or safeguards aplied.

From the maters comunicated with the Audit Comite, we determine those maters that were of most significance in the

audit of the consolidated financial statements of the curent period and are therefore the key audit maters. We describe these

maters in our auditor’s report unles law or regulation precludes public disclosure about the mater or when, in extremely

rare circumstances, we determine that a mater should not be comunicated in our report because the adverse consequences

of doing so would reasonably be expected to outweigh the public interest benefits of such comunication.

The engagement partner on the audit resulting in this independent auditor’s report is Wong Yuen Shan.

Certified Public Acountants

8th Flor, Prince’s Building

10 Chater Road

Central, Hong Kong

26 March 2025

– F-16 –

2024
309,791
(163,112)
146,679
37,414
(6,312)
31,102
6,769
27,111
2
1,560
213,223
(71,938)
141,285
(61,045)
(68)
(24)
715
80,863
(11,395)
69,468
68,576
892
1.22
1.20

Chapter 9 Consolidated Statement of Profit or Los

China CITIC Bank Corporation Limited196

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

Years ended 31 December

Note2023

Interest income317,692

Interest expense(174,153)

Net interest income6143,539

Fe and comision income36,999

Fe and comision expense(4,616)

Net fe and comision income732,383

Net trading gain87,138

Net gain from investment securities921,103

Net hedging gain–

Other operating income1,407

Operating income205,570

Operating expenses10(69,214)

Operating profit before impairment136,356

Credit impairment loses11(61,926)

Impairment loses on other asets12(278)

Revaluation loses on investment properties(1)

Share of profit of asociates and joint ventures736

Profit before tax74,887

Income tax expense13(6,825)

Profit for the year68,062

Net profit atributable to:

Equity holders of the Bank67,016

Non-controling interests1,046

Earnings per share atributable to the ordinary shareholders of

the Bank

Basic earnings per share (RMB)151.27

Diluted earnings per share (RMB)151.14

The acompanying notes form an integral part of these consolidated anual financial statements.

– F-17 –

2024
69,468
(82)
(1)
15
10,737
384
1,767
94
12,914
82,382
81,381
1,001

Chapter 9 Consolidated Statement of Profit or Los and

Other Comprehensive Income

1972024 Anual Report

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

Years ended 31 December

Note2023

Profit for the year68,062

Other comprehensive income, net of tax

Items that wil not be reclasified to profit or los (net of tax):

— Fair value changes on financial investments designated at fair

value through other comprehensive income(144)

— Changes in defined benefit plan liabilities–

Items that may be reclasified subsequently to profit or los

(net of tax):

— Other comprehensive income transferable to profit or los

under equity method39

— Fair value changes on financial asets at fair value through

other comprehensive income4,989

— Impairment alowance on financial asets at fair value through

other comprehensive income(512)

— Exchange diference on translation of financial statements1,198

— Others5

Other comprehensive income, net of tax145,575

Total comprehensive income for the year73,637

Total comprehensive income atribute to:

Equity holders of the Bank72,508

Non-controling interests1,129

The acompanying notes form an integral part of these consolidated anual financial statements.

– F-18 –

31 December 2024
340,915
128,193
13,580
404,801
85,929
136,265
5,601,450
647,398
1,118,989
849,781
4,702
7,349
578
46,516
11,035
3,419
959
54,130
76,733
9,532,722
124,151
968,492
88,550
1,719
81,162
278,003
5,864,311
20,318
7,645
1,224,038
10,861
9,990
39
46,078
8,725,357

Chapter 9 Consolidated Statement of Financial Position

China CITIC Bank Corporation Limited198

As at 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

Note

31 December

Asets

Cash and balances with central banks16416,442

Deposits with banks and non-bank financial institutions1781,075

Precious metals11,674

Placements with and loans to banks and non-bank financial

institutions18237,742

Derivative financial asets1944,675

Financial asets held under resale agrements20104,773

Loans and advances to customers215,383,750

Financial investments22

— at fair value through profit or los613,824

— at amortised cost1,085,598

— at fair value through other comprehensive income888,677

— designated at fair value through other comprehensive income4,807

Investments in asociates and joint ventures236,945

Investment properties25528

Property, plant and equipment2638,309

Right-of-use asets2710,643

Intangible asets28 4,595

Godwil29926

Defered tax asets3052,480

Other asets3165,021

Total asets9,052,484

Liabilities

Borowings from central banks273,226

Deposits from banks and non-bank financial institutions33927,887

Placements from banks and non-bank financial institutions3486,327

Financial liabilities at fair value through profit or los1,588

Derivative financial liabilities1941,850

Financial asets sold under repurchase agrements35463,018

Deposits from customers365,467,657

Acrued staf costs3722,420

Taxes payable384,536

Debt securities isued39965,981

Lease liabilities2710,245

Provisions4010,846

Defered tax liabilities301

Other liabilities4142,227

Total liabilities8,317,809

– F-19 –

31 December 2024
54,397
105,499
89,286
16,862
67,629
111,723
343,868
789,264
18,101
807,365
9,532,722

1992024 Anual Report

As at 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

Chapter 9 Consolidated Statement of Financial Position

(Continued)

Note

31 December

Equity

Share capital4248,967

Other equity instruments43118,060

Capital reserve4459,400

Other comprehensive income454,057

Surplus reserve4660,992

General reserve47105,127

Retained earnings48320,619

Total equity atributable to equity holders of the Bank717,222

Non-controling interests4917,453

Total equity734,675

Total liabilities and equity9,052,484

The acompanying notes form an integral part of these consolidated anual financial statements.

Aproved and recognized for isue by the board of directors on 26 March 2025.

Fang HeyingLu Wei

Chairman

Executive Director

In charge of finance and acounting of the Bank

(performing the duties of the President)

Kang ChaoCompany stamp

The head of the Finance and

Acounting Department

– F-20 –

Equity attributable to equity holders of the Bank							Non-controlling interests
Share capital	Other equity instruments	Capital reserve	Other comprehensive income	Surplus reserve	General reserve	Retained earnings	Ordinary shareholders in subsidiaries	Other equity instruments holders	Total equity
48,967	118,060	59,400	4,057	60,992	105,127	320,619	9,763	7,690	734,675
–	–	–	–	–	–	68,576	544	348	69,468
–	–	–	12,805	–	–	–	109	–	12,914
–	–	–	12,805	–	–	68,576	653	348	82,382
5,430	(2,568)	29,897	–	–	–	–	–	–	32,759
–	30,000	(4)	–	–	–	–	–	–	29,996
–	(39,993)	(7)	–	–	–	–	–	–	(40,000)
–	–	–	–	6,637	–	(6,637)	–	–	–
–	–	–	–	–	6,596	(6,596)	–	–	–
–	–	–	–	–	–	(27,306)	–	–	(27,306)
–	–	–	–	–	–	(1,428)	–	–	(1,428)
–	–	–	–	–	–	–	(5)	–	(5)
–	–	–	–	–	–	(3,360)	–	(348)	(3,708)
54,397	105,499	89,286	16,862	67,629	111,723	343,868	10,411	7,690	807,365

Chapter 9 Consolidated Statement of Changes in Equity

China CITIC Bank Corporation Limited200

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

Note

As at 1 January 2024

(i) Net profit

(i) Other comprehensive income14

Total comprehensive income

(i) Investor capital

— Conversion of convertible corporate bonds

to equity

— Isuance of perpetual bonds43

— Redemption of perpetual bonds43

(iv) Profit apropriations

— Apropriations to surplus reserve46

— Apropriations to general reserve47

— Dividend distribution to ordinary

shareholders of the Bank48

— Dividend distribution to preference

shareholders48

— Dividend distribution to non-controling

interests

— Interest paid to holders of perpetual bonds48

As at 31 December 202454,397105,49989,28616,86267,629111,723343,86810,4117,690807,365

Equity atributable to equity holders of the BankNon-controling interests

NoteShare capital

Other equity

instruments

Capital

reserve

Other

comprehensive

income

Surplus

reserve

General

reserve

Retained

earnings

Ordinary

shareholders

in subsidiaries

Other equity

instruments

holdersTotal equity

As at 1 January 202348,935118,07659,216(1,621)54,727100,580285,5059,22011,192685,830

(i) Net profit–67,01645858868,062

(i) Other comprehensive income14 –5,492–83–5,575

Total comprehensive income–5,492–67,01654158873,637

(i) Investor capital

— Conversion of convertible corporate bonds

to equity32(16)192–208

— Reduction of capital by other equity

instruments holders43 –(4)–(3,502)(3,506)

— Reduction of capital by Non-controling

interests43 –- –- – – – (2)–(2)

(iv) Profit apropriations

— Apropriations to surplus reserve46–6,265–(6,265)–

— Apropriations to general reserve47–4,547(4,547)–

— Dividend distribution to ordinary

shareholders of the Bank48 –(16,110)–(16,110)

— Dividend distribution to preference

shareholders48–(1,428)–(1,428)

— Dividend distribution to non-controling

interests–(6)–(6)

— Interest paid to holders of perpetual bonds48 –(3,360)–(588)(3,948)

(v) Transfers within the owners’ equity

— Other comprehensive income transfered to

retained earnings–186–(186)–

— Reduction of capital by Non-controling interests–(4)–(6)10–

As at 31 December 202348,967118,06059,4004,05760,992105,127320,6199,7637,690734,675

The acompanying notes form an integral part of these consolidated anual financial statements.

– F-21 –

2024
80,863
(3,803)
(19,973)
(154)
(2,896)
61,045
68
5,072
27,608
(196)
3,692
(9,841)
141,485
30,381
7,715
(124,278)
(30,168)
(258,336)
9,738
(148,593)
40,871
(2,211)
93
(186,823)
365,813
(43,595)
16,876
(322,517)
(181,032)

Chapter 9 Consolidated Statement of Cash Flows

2012024 Anual Report

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

Years ended 31 December

Operating activities

Profit before tax74,887

Adjustments for:

— revaluation gains on investments, derivatives and investment properties(521)

— investment gains(19,843)

— net gains of property, plant and equipment, intangible asets and other

asets(9)

— unrealised foreign exchange gains(3,013)

— credit impairment loses61,926

— impairment loses on other asets278

— depreciation and amortisation4,868

— interest expense on debt securities isued24,996

— dividend income from equity investment(169)

— depreciation of right-of-use asets and interest expense on lease liabilities3,710

— income tax paid(13,523)

Subtotal133,587

Changes in operating asets and liabilities:

Decrease in balances with central banks8,361

Decrease in deposits with banks and non-bank financial institutions1,760

(Increase)/Decrease in placements with and loans to banks and non-bank

financial institutions6,115

Increase in financial asets held under resale agrements(90,988)

Increase in loans and advances to customers(380,326)

Decrease/(Increase) in financial asets at fair value through profit or los (79,755)

(Decrease)/Increase in borowings from central banks152,670

Increase/(Decrease) in deposits from banks and non-bank financial institutions(215,881)

(Decrease)/Increase in placements from banks and non-bank financial

institutions17,387

Increase in financial liabilities at fair value through profit or los5

(Decrease)/Increase in financial asets sold under repurchase agrements206,389

Increase in deposits from customers286,207

Increase in other operating asets(46,723)

Increase in other operating liabilities274

Subtotal(134,505)

Net cash flows used in operating activities(918)

– F-22 –

2024
3,848,154
260
1,070
–
(3,860,233)
(18,783)
(29,532)
30,000
1,553,890
(39,993)
(1,261,613)
(28,178)
(29,925)
(3,378)
220,803
10,239
249,002
3,538
262,779
317,099
(118,514)

China CITIC Bank Corporation Limited202

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

Chapter 9 Consolidated Statement of Cash Flows (Continued)

Years ended 31 December

Note2023

Investing activities

Proceds from disposal and redemption of investments2,768,331

Proceds from disposal of property, plant and equipment, land use

rights, and other asets83

Cash received from equity investment income653

Cash received from disposal of asociates70

Payments on acquisition of investments(2,753,726)

Payments on acquisition of property, plant and equipment, land

use rights and other asets(13,524)

Net cash flows (used in)/from investing activities1,887

Financing activities

Cash received from isuing other equity instruments–

Cash received from debt securities isued1,096,139

Cash paid for redemption of other equity instruments(3,516)

Cash paid for redemption of debt securities isued(1,106,000)

Interest paid on debt securities isued(24,724)

Cash paid for dividends(21,492)

Cash paid in conection with other financing activities(3,509)

Net cash flows from/(used in) financing activities(63,102)

Increase/(Decrease) in cash and cash equivalents(62,133)

Cash and cash equivalents as at 1 January307,871

Efect of exchange rate changes on cash and cash equivalents3,264

Cash and cash equivalents as at 31 December50249,002

Cash flows from operating activities include:

Interest received318,778

Interest paid(136,150)

The acompanying notes form an integral part of these consolidated anual financial statements.

– F-23 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2032024 Anual Report

1 Corporate information

China CITIC Bank Corporation Limited (the “Bank” or “CNCB”) is a joint stock company incorporated in the People’s

Republic of China (the “PRC” or “Mainland China”) on 31 December 2006. Headquartered in Beijing, the Bank’s

registered ofice is located at 6-30F and 32-42F No.10 Guanghua Road, Chaoyang District, Beijing, China. The Bank

listed its A shares and H shares on the Shanghai Stock Exchange and the Main Board of The Stock Exchange of Hong

Kong Limited, respectively on 27 April 2007.

The Bank operates under financial services certificate No. B0006H111000001 isued by the National Financial

Regulatory Administration (the former “China Banking and Insurance Regulatory Comision”, the “NFRA”), and

unified social credit code No. 91110000101690725E isued by the State Administration of Industry and Comerce

of the PRC.

The principal activities of the Bank and its subsidiaries (colectively the “Group”) are the provision of corporate and

personal banking services, conducting treasury busines, the provision of aset management, financial leasing, wealth

management and other non-banking financial services.

As at 31 December 2024, the Group mainly operates in Mainland China with branches covering 31 provinces,

autonomous regions and municipalities, and overseas. In adition, the Bank’s subsidiaries have operations in Mainland

China, the Hong Kong Special Administrative Region of PRC (“Hong Kong”), the Macau Special Administrative

Region of the PRC (“Macau”) and other overseas countries and regions.

For the purpose of these consolidated anual financial statements, Mainland China refers to the PRC excluding Hong

Kong, Macau and Taiwan. Overseas refers to countries and regions other than Mainland China.

The consolidated anual financial statements were aproved by the Board of Directors of the Bank on 26 March 2025.

2 Basis of preparation

These consolidated financial statements have ben prepared on a going concern basis. The consolidated financial

statements for the year ended 31 December 2024 comprise the Bank and its subsidiaries, asociates and joint ventures.

(a) Acounting year

The acounting year of the Group is from 1 January to 31 December.

(b) Functional curency and presentation curency

The functional curency of the Group’s domestic branches and subsidiaries is Renminbi (“RMB”). The functional

curencies of overseas subsidiaries are determined in acordance with the primary economic environment in

which they operate, and are translated into Renminbi for the preparation of the consolidated financial statements

acording to Note 4 (b)(i). The consolidated financial statements of the Group are presented in Renminbi and,

unles otherwise stated, expresed in milions of Renminbi.

– F-24 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited204

3 Principal acounting policies

These consolidated financial statements have ben prepared in acordance with al aplicable IFRS Acounting Standards

as isued by the International Acounting Standards Board (“IASB”), and the disclosure requirements of the Hong Kong

Companies Ordinance. These consolidated financial statements also comply with the aplicable disclosure provisions

of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

These consolidated financial statements have ben prepared under the historical cost convention, as modified by financial

asets and financial liabilities (including derivative instruments) at fair value through profit or los and at fair value

through other comprehensive income, and investment properties, which are caried at fair value.

The preparation of financial statements in conformity with IFRSs requires the use of certain critical acounting estimates.

It also requires management to exercise its judgement in the proces of aplying the Group’s acounting policies. The

areas involving a higher degre of judgement or complexity, or areas where asumptions and estimates are significant

to the consolidated financial statements are disclosed in Note 5.

(a) Standards and amendments efective in 2024 relevant to and adopted by the Group

In the curent reporting period, the Group has adopted the folowing IFRS Acounting Standards and amendments

isued by the International Acounting Standards Board (“IASB”), that are mandatorily efective for the curent

reporting period.

– Amendments to IAS 1 and Clasification of Liabilities as

Curent or Non-Curent – Amendments to IAS 1

– Amendments to IAS 7 and IFRS 7

– Amendments to IFRS 16

The adoption of these standards and amendments do not have significant impacts on the consolidated financial

statements of the Group. The Group has not aplied any new standard or interpretation that is not yet efective

for the curent acounting period.

(b) Standards and amendments relevant to the Group that are not yet efective and have not

ben adopted before their efective dates in 2024

Efective dateNew acounting standards or amendments

1 January 2025Lack of Exchangeability – Amendments to IAS 21

1 January 2026Clasification and Measurement of Financial Instruments –

Amendments to IFRS 9 and IFRS 7

1 January 2026Anual Improvements to IFRS Acounting Standards – Volume 11

1 January 2027IFRS 18 Presentation and Disclosure in Financial Statements

1 January 2027IFRS 19 Subsidiaries without Public Acountability: Disclosures

Available for optional adoption/

efective date defered indefinitely

Sale or Contribution of Asets betwen an Investor and its Asociate

or Joint Venture – Amendments to IFRS 10 and IAS 28

– F-25 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2052024 Anual Report

4 Sumary of significant acounting policies

(a) Consolidated financial statements

(i) Busines combinations involving enterprises under comon control

A busines combination involving enterprises under comon control is a busines combination in which

al of the combining enterprises are ultimately controled by the same party or parties both before and

after the busines combination, and that control is not transitory. The asets and liabilities asumed are

measured based on their carying amounts in the financial statements of the acquire at the combination

date. The diference betwen the share of carying amount of the net asets acquired and the consideration

paid for the combination (or the total face value of shares isued) is adjusted against share premium in

the capital reserve with any exces adjusted against retained earnings. The isuance costs of equity or

debt securities as a part of the consideration for the acquisition are included in the carying amounts

of these equity or debt securities upon initial recognition. Other acquisition-related costs are expensed

when incured. The combination date is the date on which one combining enterprise obtains control of

other combining enterprises.

(i) Busines combinations not involving entities under comon control

A busines combination involving entities not under comon control is a busines combination in which

al of the combining entities are not ultimately controled by the same party or parties before the busines

combination. Where (i) the agregate of the acquisition date fair value of asets transfered (including

the acquirer’s previously held equity interest in the acquire), liabilities incured or asumed, and equity

securities isued by the acquirer, in exchange for control of the acquire, exceds (i) the acquirer’s interest

in the acquisition date fair value of the acquire’s identifiable net asets, after considering the impact of

relevant defered income tax, the diference is recognized as godwil (Note 4 (k). If (i) is les than (i),

the diference is recognized in the consolidated statement of profit or los for the curent period. The

isuance costs of equity or debt securities as a part of the consideration for the acquisition are included

in the carying amounts of these equity or debt securities upon initial recognition. Other acquisition-

related costs are expensed as incured. Any diference betwen the fair value and the carying amount of

the asets transfered as consideration is recognized in the consolidated statement of profit or los. The

acquire’s identifiable aset, liabilities and contingent liabilities, if the recognition criteria are met, are

recognized by the Group at their acquisition date fair value. The acquisition date is the date on which

the acquirer obtains control of the acquire.

For a busines combination not involving enterprises under comon control and achieved in stages, the

Group remeasures its previously-held equity interest in the acquire to its fair value at the acquisition

date. The diference betwen the fair value and the carying amount is recognized as investment income

for the curent period. The amount recognized in other comprehensive income relating to the previously-

held equity interest in the acquire that can be reclasified into profits and loses in the future and other

changes in owner’s equity acounted by the equity method wil be reclasified to profit or los.

(i) Consolidated financial statements

The scope of consolidated financial statements is based on control and the consolidated financial statements

comprise the Bank and its subsidiaries, as wel as structured entities controled by the Group. The Group

controls an entity when it is exposed, or has rights, to variable returns from its involvement with the

entity and has the ability to afect those returns through its power over the entity. When asesing whether

the Bank has power, only substantive rights (held by the Bank and other parties) are considered. The

financial statements of subsidiaries are included in the consolidated financial statements from the date

that control comences until the date that control ceases.

– F-26 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited206

4 Sumary of significant acounting policies (continued)

(a) Consolidated financial statements (continued)

(i) Consolidated financial statements (continued)

Non-controling interest is presented separately in the consolidated statement of financial position within

owners’ equity. Profit or los and total comprehensive income atributable to non-controling equity holders

are presented separately in the consolidated statement of profit or los and other comprehensive income.

When the amount of los for the curent period atributable to the non-controling interest of a subsidiary

exceds the non-controling interest’s portion of the opening balance of equity holders’ equity of the

subsidiary, the exces is alocated against the non-controling interests.

When the acounting period or acounting policies of a subsidiary are diferent from those of the Bank,

the Bank makes necesary adjustments to the financial statements of the subsidiary based on the Bank’s

own acounting period or acounting policies. Intra-group balances, transactions and cash flows, and

any recognized profits arising from intra-group transactions, are eliminated in preparing the consolidated

financial statements. Unrealised loses resulting from intra-group transactions are eliminated only limited

to the extent that this is no evidence of impairment.

Where a subsidiary was acquired during the reporting period, through a busines combination involving

enterprises under comon control, the financial statements of the subsidiary are included in the consolidated

financial statements as if the combination had ocured at the date the ultimate controling party first

obtained control. Therefore, the opening balances and the comparative figures of the consolidated

financial statements are restated.

Where a subsidiary was acquired during the reporting period, through a busines combination not involving

enterprises under comon control, the identifiable asets and liabilities of the acquired subsidiaries are

included in the scope of consolidation from the date that control comences, based on the fair value of

those identifiable asets and liabilities at the acquisition date.

The diference betwen the costs of long-term investments newly acquired by the Bank by acquiring

minority interests and the fair value of the Bank’s share of the net identifiable asets of its subsidiaries

calculated based on the increased shareholding, and the diference betwen the proceds the Bank

obtained from partial disposal of its equity investments in its subsidiaries without ceasing control over the

subsidiaries and its share of the net asets of the subsidiaries that coresponds to the disposed longterm

equity investments, shal both be recognized as adjustments to reduce the capital reserve (share premium)

of the consolidated statement of financial position, and if the capital reserve (share premium) is not

suficient to cover the reductions, the exces is charged to the retained earnings.

When the Group loses control of a subsidiary due to the disposal of a portion of an equity investment,

the Group derecognized asets, liabilities, non-controling interests and other related items in equity

holders’ equity in relation to that subsidiary. The remaining equity investment is remeasured at its fair

value at the date when control is lost. Any gains or loses therefore incured are recognized as investment

income for the curent period when the control is lost.

If there is a diference betwen the acounting entity of the Group and the acounting entity of the Bank

or a subsidiary on measuring the same transaction, the transaction wil be adjusted from the perspective

of the Group.

– F-27 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2072024 Anual Report

4 Sumary of significant acounting policies (continued)

(b) Foreign curency translations

(i) Translation of foreign curency transactions

When the Group receives capital in foreign curencies from investors, the capital is translated to Renminbi

at the spot exchange rate at the date of the receipt. Other foreign curency transactions are, on initial

recognition, translated into Renminbi by aplying the spot exchange rates at the dates of the transaction.

Monetary items denominated in foreign curencies are translated to Renminbi at the spot exchange rate

at the reporting date. The resulting exchange diferences are recognized in the consolidated statement

of profit or los. Non-monetary items that are measured in terms of historical cost in a foreign curency

are translated to Renminbi using the exchange rate at the transaction date.

Non-monetary items that are measured at fair value in a foreign curency are translated using the foreign

exchange rate at the date the fair value is determined. The diferences arising from the translation of

financial asets at fair value through other comprehensive income is recognized in other comprehensive

income. Changes in the fair value of monetary asets denominated in foreign curency clasified as

financial asets at fair value through other comprehensive income are analysed betwen translation

diferences resulting from changes in the amortised cost of the monetary asets and other changes in the

carying amount. Translation diferences related to changes in the amortised cost are recognized in the

consolidated statement of profit or los, and other changes in the carying amount are recognized in other

comprehensive income. The translation diferences resulting from other monetary asets and liabilities

are recognized in the consolidated statement of profit or los.

(i) Translation of financial statements denominated in foreign curency

Financial statements denominated in foreign curency are translated into Renminbi for the preparation

of consolidated financial statements. The asets and liabilities in the financial statements denominated

in foreign curency are translated into Renminbi at the spot exchange rates prevailing at the reporting

date. The equity items, except for “retained earnings”, are translated to Renminbi at the spot exchange

rates at the dates on which such items arose. Income and expenses are translated at exchange rates at the

date of the transactions, or a rate that aproximates the exchange rates of the date of the transaction.

The resulting exchange diferences are recognized in other comprehensive income.

Upon disposal of a foreign operation, the cumulative amount of the translation diferences recognized in

equity holders’ equity which relates to that foreign operation is transfered to profit or los in the period

in which the disposal ocurs. The efect of exchange rate changes on cash and cash equivalents held or

due in a foreign curency are reported in the statement of cash flows.

– F-28 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited208

4 Sumary of significant acounting policies (continued)

Financial asets and financial liabilities are recognized when the Group becomes a party to the contractual

provisions of the instrument. Regular way purchases and sales of financial asets are recognized on trade-date,

the date on which the Group comits to purchase or sel the aset.

(i) Initial recognition and clasification of financial instruments

Financial asets

Financial asets are clasified on the basis of the Group’s busines model for managing the financial aset

and the contractual cash flow characteristics of the financial asets:

“FVPL”);

“FVOCI”); or

• Amortised cost

The busines model adopted by the Group for managing its financial asets refers to how the Group

manages its financial asets in order to generate cash flows. The busines model determines whether the

cash flows from the financial asets managed by the Group come from the colection of contractual cash

flows, sale of financial asets or a combination of the two methods. In determining the busines model for

a group of financial asets, the Group considers various factors, including: past experience in colecting

cash flows from this group of asets; how to ases the performance of this group of aset and report

it to key management personel; how to ases and manage risks are; and how to compensate people

responsible for managing these asets, among others.

The contractual cash flow characteristics of financial asets refer to contractual terms as agred in the

financial instrument contracts that reflect the economic characteristics of the financial asets, i. e., the

contractual cash flows arising at a specified date from the financial asets at amortised cost or FVOCI are

solely payments of principal and interest on the principal amount outstanding. Of which, the principal

is the fair value of the financial aset at initial recognition, and the amount of the principal may change

over the life of the financial aset, if, e. g., there are repayments of principal; and the interest includes

consideration for the time value of money, and credit risk, other basic lending risks and costs asociated

with holding the financial aset for a particular period of time.

Financial asets with embeded derivatives are considered in their entirety when determining whether

their cash flows are solely payment of principal and interest.

The clasification requirements for debt instruments and equity instruments are described below:

– F-29 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2092024 Anual Report

4 Sumary of significant acounting policies (continued)

(i) Initial recognition and clasification of financial instruments (continued)

Debt Instruments

Debt instruments are those instruments that met the definition of a financial liability from the isuer’s

perspective. Clasification and subsequent measurement of debt instruments depend on: i) the Group’s

busines model for managing the aset; and i) the cash flow characteristics of the aset.

Based on these factors, the Group clasifies its debt instruments into one of the folowing thre measurement

categories:

: Asets that are held for colection of contractual cashflows where those cash flows

represent solely payments of principal and interest (“SPI”), and that are not designated at FVPL,

are measured at amortised cost.

: Financial asets that are held for colection

of contractual cash flows and for seling the asets, where the asets’ cash flows represent solely

payments of principal and interest, and that are not designated at FVPL, are measured at FVOCI.

: Asets that do not met the criteria for amortised cost or FVOCI

are measured at FVPL.

The Group may also irevocably designate financial asets at fair value through profit or los if doing

so significantly reduces or eliminates a mismatch created by asets and liabilities being measured on

diferent bases.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the asets of the Group after

deducting the liabilities. A financial instrument is an equity instrument if, and only if, both conditions

i) and i) below are met:

i) The financial instrument includes no contractual obligation to deliver cash or another financial

aset to another entity, or to exchange financial asets or financial liabilities with another entity

under conditions that are potentialy unfavorable to the Group; and

i) If the financial instrument wil or may be setled in the Group’s own equity instruments, it is

a non-derivative instrument that includes no contractual obligations for the Group to deliver a

variable number of its own equity instruments; or a derivative that wil be setled only by the

Group exchanging a fixed amount of cash or another financial aset for a fixed number of its own

equity instruments.

Equity investments of the Group are measured at FVPL, except where the Group’s management has

elected, at initial recognition, to irevocably designate an equity investment at FVOCI. The Group’s

policy is to designate equity investments as FVOCI when those investments are held for purposes other

than trading. After designation, the fair value change is recognized in the other comprehensive income

and it is not alowed to subsequently reclasify to profit or los (including upon disposal). Impairment

los and reversal of impairment is not presented separately in the financial statements and is included

in the fair value change. Dividend income as the return from investments is recognized by the Group

when the right to receive is formed.

– F-30 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited210

4 Sumary of significant acounting policies (continued)

(i) Initial recognition and clasification of financial instruments (continued)

Financial liabilities

The Group’s financial liabilities are clasified into financial liabilities at FVPL and other financial liabilities

caried at amortised cost on initial recognition. Financial liabilities at FVPL is aplied to derivatives,

financial liabilities held for trading and financial liabilities designated as such at initial recognition.

The Group may, at initial recognition, irevocably designate a financial liability as measured at fair value

through profit or los when doing so results in more relevant information, because either:

i) it eliminates or significantly reduces a measurement or recognition inconsistency that would

otherwise arise; or

i) a group of financial liabilities or financial asets and financial liabilities is managed and its

performance is evaluated on a fair value basis, in acordance with a documented risk management

or investment strategy, and information about the Group is provided internaly on that basis to

the Group’s key management personel.

(i) Measurement of financial asets

Initial measurement

At initial recognition, the Group measures a financial aset or financial liability at its fair value. For

a financial aset or financial liability at fair value through profit or los, transaction costs are directly

recognized in profit or los. For other financial aset or liability, transaction costs are recognized in the

initial measurement.

Subsequent measurement

Subsequent measurement of financial instruments depends on the categories:

Financial asets and financial liabilities measured at amortised cost

The amortised cost is the amount at which the financial aset is measured at initial recognition: i) minus

the principal; i) plus or minus the cumulative recognized using the efective interest method of any

diference betwen that initial amount and maturity amount; i) for financial asets, adjusted for any

los alowance.

The efective interest rate is the rate that exactly discounts estimated future cash payments or receipts

through the expected life of the financial aset or financial liability to the gros carying amount of a

financial aset (i.e. its amortised cost before any impairment alowance) or to the amortised cost of a

financial liability. The calculation does not consider expected credit loses (‘ECL’) and includes transaction

costs, premiums or discounts and fes and points paid or received that are integral to the efective interest

rate. For purchased or originated credit-impaired (‘POCI’) financial asets – asets that are credit-impaired

at initial recognition – the Group calculates the credit-adjusted efective interest rate, which is calculated

based on the amortised cost of the financial aset instead of this gros carying amount and incorporates

the impact of ECL in estimated future cash flows.

– F-31 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2112024 Anual Report

4 Sumary of significant acounting policies (continued)

(i) Measurement of financial asets (continued)

Financial asets and financial liabilities measured at amortised cost (continued)

Interest income is calculated by aplying the efective interest rate to the carying amount of a financial

aset, except for:

i) a POCI financial aset, whose interest income is calculated, since initial recognition, by aplying

the credit-adjusted efective interest rate to its amortised cost; and

i) a financial aset that is not a POCI financial aset but has subsequently become credit-impaired,

whose interest income is calculated by aplying the efective interest rate to its amortised cost. If, in

a subsequent period, the financial aset improves its quality so that it is no longer credit-impaired

and the improvement in credit quality can be related objectively to a certain event ocuring after

the aplication of the above-mentioned rule, then the interest income can again be calculated

by aplying the efective interest rate to its gros carying amount. Interest income from these

financial asets is included in ‘interest income’ using the efective interest rate method.

For floating-rate financial asets and floating-rate financial liabilities, periodic re-estimation of cash flows

to reflect the movements in the market rates of interest alters the efective interest rate. If a floatingrate

financial aset or a floating rate financial liability is recognized initialy at an amount equal to the principal

receivable or payable on maturity, re-estimating the future interest payments normaly has no significant

efect on the carying amount of the aset or the liability.

If the Group revises its estimates of payments or receipts, the diference betwen the gros carying amount

of the financial aset or amortised cost of a financial liability calculated from revised estimated contractual

cash flows and the present value of the estimated future contractual cash flows that are discounted at the

financial instrument’s original efective interest rate should be recognized in profit or los.

Financial asets at fair value through other comprehensive income

Debt instruments

Movements in the carying amount are taken through other comprehensive income, except for the

recognition of impairment gains or loses, interest income and foreign exchange gains and loses on the

instrument’s amortised cost which are recognized in profit or los.

When the financial asets is derecognized, the cumulative gain or los previously recognized in other

comprehensive income is reclasified from equity to profit or los and recognized in ‘Net investment

income’. Interest income from these financial asets is included in ‘Interest income’ using the efective

interest rate method.

Equity instruments

Where an investment in an equity investment not held for trading is designated as a financial aset

measured at fair value through other comprehensive income, the fair value changes of the financial

aset is derecognized in the other comprehensive income. When the financial aset is derecognized, the

cumulative gain or los previously recognized in other comprehensive income is reclasified from other

comprehensive income to retained earnings. The dividends on the investment are recognized in profit or

los only when the Group’s right to receive payment of the dividends is established.

– F-32 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited212

4 Sumary of significant acounting policies (continued)

(i) Measurement of financial asets (continued)

Financial asets at fair value through profit or los

Financial asets at fair value through profit or los are stated at fair value and a gain or los on the financial

asets that is measured at fair value should be recognized in profit or los.

Financial liabilities at fair value through profit or los

Financial liabilities at fair value through profit or los are measured at fair value with al gains or loses

recognized in the profit or los of the curent period, except for financial liabilities designated as at fair

value through profit or los, where gains or loses on the financial liabilities are treated as folows:

’s own credit risk are

recognized in other comprehensive income; and

• other changes in fair value of such financial liabilities are recognized in profit or los of the curent

period.

(i) Impairment of financial asets

The Group aseses on a forward-loking basis the ECL asociated with its debt instrument asets caried

at amortised cost and FVOCI and with exposure arising from loan comitments, financial guarante

contracts and lease receivables.

ECL is the weighted average of credit loses with the respective risks of a default ocuring as the weights.

Credit los is the diference betwen al contractual cash flows that are due to the Group in acordance with

the contract and al the cash flows that the Group expects to receive, i. e. al cash shortfals, discounted

at the original efective interest rate (or credit-adjusted efective interest rate for POCI financial asets).

The Group measures ECL of a financial instrument in a way that reflects:

• an unbiased and probability-weighted amount that is determined by evaluating a range of posible

outcomes;

; and

• reasonable and suportable information that is available without undue cost or efort at the

reporting date about past events, curent conditions and forecasts of future economic conditions.

Detailed information about ECL is set out in note 55 (a).

The Group aplies the impairment requirements for the recognition and measurement of a los alowance

for debt instruments that are measured at fair value through other comprehensive income. The los

alowance is recognised in other comprehensive income and the impairment los is recognized in profit

or los, and it should not reduce the carying amount of the financial aset in the consolidated statement

of financial position.

– F-33 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2132024 Anual Report

4 Sumary of significant acounting policies (continued)

(i) Impairment of financial asets (continued)

If the Group has measured the los alowance for a financial instrument at an amount equal to lifetime

ECL in the previous reporting period, but determines at the curent reporting date that the credit risk

on the financial instruments has increased significantly since initial recognition is no longer met, the

Group measures the los alowance at an amount equal to 12-month ECL at the curent reporting date

and the amount of ECL reversal is recognized in profit or los.

At the reporting date, the Group only recognized the cumulative changes in lifetime ECL since initial

recognition as a los alowance for POCI financial asets. At each reporting date, the Group recognized

in profit or los the amount of the changes in lifetime ECL as an impairment gain or los.

(iv) Modification of loans

The Group sometimes renegotiates or otherwise modifies the contractual cash flows of loans to customers.

When this hapens, the Group aseses whether or not the new terms are substantialy diferent to the

original terms. The Group does this by considering, among others, the folowing factors:

, whether the modification merely reduces the contractual

cash flows to amounts the borower is expected to be able to pay.

, such as a profit share/equity-based return that

substantialy afects the risk profile of the loan.

• Significant extension of the loan term when the borower is not in financial dificulty.

• Significant change in the interest rate.

• Change in the curency the loan is denominated in.

, other security or credit enhancements that significantly afect the credit

risk asociated with the loan.

If the terms are substantialy diferent, the Group derecognizes the original financial aset and recognizes a

‘new’ aset at fair value and recalculates a new efective interest rate for the aset. The date of renegotiation is

consequently considered to be the date of initial recognition for impairment calculation purposes, including

for the purpose of determining whether a significant increase in credit risk has ocured. However, the

Group also aseses whether the new financial aset recognized is demed to be credit-impaired at initial

recognition, especialy in circumstances where the renegotiation was driven by the debtor being unable

to make the originaly agred payments. Diferences in the carying amount are also recognized in profit

or los as a gain or los on derecognition.

If the terms are not substantialy diferent, the renegotiation or modification does not result in derecognition,

and the Group recalculates the gros carying amount based on the revised cash flows of the financial aset

and recognizes a modification gain or los in profit or los. The new gros carying amount is recalculated

by discounting the modified cash flows at the original efective interest rate (or credit-adjusted efective

interest rate for POCI financial asets).

– F-34 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited214

4 Sumary of significant acounting policies (continued)

(v) Derivatives and hedges

Derivatives are initialy recognized at fair value on the date on which the derivative contract is entered

into and are subsequently remeasured at fair value. Al derivatives are caried as asets when fair value is

positive and as liabilities when fair value is negative.

Certain derivatives are embeded in hybrid contracts, such as the conversion option in a convertible

bond. If the hybrid contract contains a host that is a financial aset, then the Group aseses the entire

contract as described in the financial asets section above for clasification and measurement purposes.

Otherwise, the embeded derivatives are treated as separate derivatives when:

;

; and

• The hybrid contract is not measured at fair value through profit or los.

These embeded derivatives are separately acounted for at fair value, with changes in fair value recognized

in the statement of profit or los unles the Group choses to designate the hybrid contracts at fair value

through profit or los.

The method of recognizing the resulting fair value gain or los depends on whether the derivative is

designated and qualifies as a hedging instrument, and if so, the nature of the item being hedged. The

Group designates certain derivatives as hedges of the fair value of recognized asets or liabilities or firm

comitments for fair value hedges.

The Group documents, at the inception of the hedge, the relationship betwen hedged items and

hedging instruments, as wel as its risk management objective and strategy for undertaking various hedge

transactions. The Group also documents its asesment, both at hedge inception and on an ongoing basis,

of whether the derivatives that are used in hedging transactions are highly efective in ofseting changes

in fair values of hedged items.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded

in the statement of profit or los, together with changes in the fair value of the hedged aset or liability

that are atributable to the hedged risk.

If the hedge no longer mets the criteria for hedge acounting, the adjustment to the carying amount

of a hedged item for which the efective interest method is used is amortised to profit or los over the

period to maturity and recorded as net interest income.

– F-35 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2152024 Anual Report

4 Sumary of significant acounting policies (continued)

(vi) Derecognition of financial asets

Financial asets

The Group derecognizes a financial aset only when (1) the contractual rights to the cash flows from

the aset expire, or (2) when it transfers the financial aset and substantialy al the risks and rewards

of ownership of the aset to another entity, or (3) when it transfers the financial aset and gives up the

control of the transfered asets though the Group neither transfers nor retains substantialy al the risks

and rewards of ownership.

Where a transfer of a financial aset in its entirety mets the criteria for de-recognition, the diference

betwen the two amounts below is recognized in the consolidated statement of profit and los:

– the carying amount of the financial aset transfered;

– the sum of the consideration received from the transfer and the cumulative gain or los that has

ben recognized directly in equity.

If the Group neither transfers nor retains substantialy al the risks and rewards of ownership and continues

to control the transfered aset, the Group continues to recognize the aset to the extent of its continuing

involvement and recognized an asociated liability.

Financial liabilities

Financial liabilities are derecognized when the related obligation is discharged, is canceled or expires.

An agrement betwen the Group and an existing lender to exchange the original financial liability with

a new financial liability with substantialy diferent terms, or a substantial modification of the terms of

an existing financial liability is acounted for as an extinguishment of the original financial liability and

recognition of a new financial liability.

The diference betwen the carying amount of the financial liability derecognized and the consideration

paid and payable is recognized in the consolidated statement of profit and los.

(vi) Securitization

As part of its operations, the Group securitizes financial asets, generaly through the sale of these asets

to structured entities which isue securities to investors. Upon sale of financial asets that qualify for

de-recognition, the relevant financial asets are de-recognized in their entirety and a new financial aset

or liability is recognized regarding the interest in the unconsolidated recognized vehicles that the Group

acquired. Upon sale of financial asets that do not qualify for de-recognition, the relevant financial asets

are not derecognized, and the consideration paid by third parties are recorded as a financial liability. Upon

sale of financial asets that are partialy qualified for de-recognition, where the Group has not retained

control, it derecognized these financial asets and recognized separately as asets or liabilities any rights

and obligations created or retained in the transfer. Otherwise the Group continues to recognize these

financial asets to the extent of its continuing involvement in the financial asets.

(vi) Sales of asets on condition of repurchase

De-recognition of financial asets sold on condition of repurchase is determined by the economic

substance of the transaction. If a financial aset is sold under an agrement to repurchase the same or

substantialy the same aset at a fixed price or at the sale price plus a reasonable return, the Group wil

not derecognize the aset. If a financial aset is sold together with an option to repurchase the financial

aset at its fair value at the time of repurchase (in case of transferor sels such financial aset), the Group

wil derecognize the financial aset.

– F-36 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited216

4 Sumary of significant acounting policies (continued)

(ix) Presentation of financial asets and financial liabilities

Financial asets and financial liabilities are presented separately in the consolidated statement of financial

position and are not ofset. However, financial asets and financial liabilities are ofset and the net amount

is reported in the consolidated statement of financial position only if the Group has a legaly enforceable

right to set of the recognized amounts and the transactions are intended to be setled on a net basis, or

by recognizing the aset and setling the liability simultaneously.

(x) Financial asets held under resale and financial asets sold under repurchase agrements

Financial asets held under resale agrements are transactions which the Group acquires financial asets

which wil be resold at a predetermined price in the future date under resale agrements. Financial asets

sold under repurchase agrements are transactions which the Group sels financial asets which wil be

repurchased at a predetermined price in the future date under repurchase agrements.

Cash advanced or received is recognized as amounts held under resale and repurchase agrements on

the consolidated statement of financial position. Asets held under resale agrements are recorded in

memorandum acounts as of-balance shet items. Asets sold under repurchase agrements continue to

be recognized in the consolidated statement of financial position.

The diference betwen the resale and repurchase consideration, and that betwen the purchase and sale

consideration, should be expired over the period of the respective transaction using the efective interest

method and are included in interest expense and interest income, respectively.

(xi) Equity instruments

The isuance of equity instruments is recognised at the actual isue price in shareholders’ equity, relevant

transaction costs are deducted from shareholders’ equity (capital reserve), with any exces deducted from

surplus reserve and retained earnings sequentialy. Consideration and transaction costs paid by the Bank

for repurchasing self-isued equity instruments are deducted from shareholders’ equity.

(d) Precious metals

Precious metals comprise gold and other precious metals. Precious metals that are not related to the Group’s

precious metals trading activities are initialy measured at acquisition cost and subsequently measured at the

lower of cost and net realizable value. Precious metals acquired by the Group for trading purposes and precious

metals leasing are initialy measured at fair value and subsequent changes in fair value are recorded in the

consolidated statement of profit or los.

(e) Interests in subsidiaries

In the Bank’s consolidated statement of financial position, interests in subsidiaries are acounted for using the

cost les impairment loses (se Note 4 (m). Cost includes direct atributable costs of investment. Dividends

declared by subsidiaries are recognized in investment income.

Determination of investment cost

For long-term equity investments acquired through a busines combination: involving enterprises under comon

control, the investment cost shal be the absorbing party’s share of the carying amount of owners’ equity of

the party being absorbed at the combination date; for long-term equity investment acquired through a busines

combination involving enterprises not under comon control, the investment cost shal be the combination cost.

For long-term equity investments acquired not through a busines combination: for long-term equity investment

acquired by payment in cash, the initial investment cost shal be the purchase price actualy paid; for long-term

equity investments acquired by isuing equity securities, the initial investment cost shal be the fair value of the

equity securities isued.

– F-37 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2172024 Anual Report

4 Sumary of significant acounting policies (continued)

(f) Interests in asociates and joint ventures

An asociate is an entity over which the Group has significant influence. A joint venture is an arangement

whereby the Group and other parties contractualy agre to share control of the arangement, and have rights

to the net asets of the arangement.

When acquiring asociates and joint ventures, the Group recognizes as initial investment cost in the principle

which: for the investments obtained by making payment in cash, the Group recognizes the purchase cost which

is actualy paid as initial investment costs; for the investments obtained by equity securities, the Group recognizes

the fair value of the equity securities isued as initial investment cost.

An investment in an asociate or a joint venture is acounted for using the equity method, unles the investment

is clasified as held for sale.

The Group adopts the folowing acounting treatments when using the equity method:

– Where the initial investment cost of an asociate or joint venture exceds the Group’s interest in the

fair value of the investe’s identifiable net asets at the date of acquisition, the investment is initialy

recognized at the initial investment cost. Where the initial investment cost is les than the Group’s

interest in the fair value of the investe’s identifiable net asets at the date of acquisition, the investment

is initialy recognized at the investor’s share of the fair value of the investe’s identifiable net asets, and

the diference is charged to profit or los.

– After the acquisition of the investment, the Group recognizes its share of the investe’s profit or los

and other comprehensive income as investment income or loses and other comprehensive income

respectively, and adjusts the carying amount of the investment acordingly. Once the investe declares

any cash dividends or profit distributions, the carying amount of the investment is reduced by that

amount atributable to the Group. Changes in the Group’s share of the investe’s owners’ equity, other

than those arising from the investe’s profit or los, other comprehensive income or profit distribution,

is recognized in the Group’s equity, and the carying amount of the investment is adjusted acordingly.

– The Group recognizes its share of investe’s profits or loses, other comprehensive income and other

changes in equity holders’ equity after making apropriate adjustments to align the acounting policies

or acounting periods with those of the Group based on the fair value of the investe’s identifiable net

asets at the date of acquisition. Unrealised profits and loses resulting from transactions betwen the

Group and its asociates or joint ventures are eliminated to the extent of the Group’s interests in the

asociates or joint ventures. When an entity in the Group transacts with the Group’s asociate, profits

and loses resulting from the transaction are recognized in the Group’s consolidated financial statements

only to the extent of the interest in the asociate that are not related to the Group. Unrealised loses are

eliminated unles the transaction provides evidence of an impairment of the aset transfered.

– The Group discontinues recognition of its share of net loses of investes after the carying amount of

investment in the asociates and joint ventures and any long-term interest that in substance forms part

of the Group’s net interest in the asociates and joint ventures are reduced to zero, except to the extent

that the Group has an obligation to asume aditional loses. Aditional los is recognized only to the

extent that the Group has incured legal or constructive obligations or made payments on behalf of that

asociate. Where profits are subsequently made by the asociates and joint ventures, the Group resumes

the recognition of its share of those profits only after its share of the profits equals the share of loses

not recognized.

Significant influence is the power to participate in the financial and operating policy decisions of an investe

but does not have control or joint control over those policies.

The Group makes provisions for impairment of interests in asociates and joint ventures in acordance with the

principles described in Note 4 (m).

– F-38 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited218

4 Sumary of significant acounting policies (continued)

(g) Property, plant and equipment

Property, plant and equipment is aset held by the Group for the conduct of busines and is expected to be used

for more than one year. Construction-in-progres, an item of property, represents property under construction

and is transfered to property when ready for its intended use.

(i) Cost

Property, plant and equipment is stated at cost upon initial recognition. Costs of a purchased property,

plant and equipment comprise purchase price, related taxes, and any directly atributable expenditures

for bringing the aset to working condition for its intended use. Costs of the self-constructed property,

plant and equipment comprise construction materials, direct labor costs and those expenditures necesarily

incured for bringing the aset to working condition for its intended use.

Subsequent to initial recognition, property, plant and equipment is stated at cost les acumulated

depreciation and impairment loses.

Where an item of property, plant and equipment comprises major components having diferent useful

lives, they are acounted for as separate items of property, plant and equipment.

(i) Subsequent costs

Any subsequent costs including the cost of replacing part of an item of fixed asets are recognised as

asets when the recognition conditions of fixed asets are met, and the carying amount of the replaced

part is derecognised. The costs of the day-to-day maintenance of fixed asets are recognised in profit or

los as incured.

(i) Depreciation

Depreciation is calculated to write of the cost, les residual value if aplicable, of property, plant and

equipment and is charged to profit or los on a straight-line basis over the estimated useful lives of each

part of an item of property, plant and equipment.

The estimated useful lives are as folows:

Estimated

useful lives

Estimated

residual valueDepreciation rate

Buildings30-35 years0%~5%2.71%-3.17%

Computer equipment and others3-10 years0%~5%9.50%-31.67%

No depreciation is provided in respect of construction in progres.

The residual value and useful lives of asets are reviewed, and adjusted if apropriate, as of each reporting

date.

(iv) Impairment

Impairment loses on property, plant and equipment are acounted for in acordance with the acounting

policies as set out in Note 4 (m).

(v) Disposal and retirement

Gains or loses arising from the disposal or retirement of property, plant and equipment are determined as

the diference betwen the net disposal proceds and the carying amount of the aset and are recognized

in the consolidated statement of profit or los on the date of disposal or retirement.

– F-39 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2192024 Anual Report

4 Sumary of significant acounting policies (continued)

(h) Lease

A lease is a contract under which the lesor conveys to the lese the right to use an aset for a period of time

in exchange for consideration.

The Group as the lese

The Group recognises the right-of-use asets on the comencement date of the lease term and recognises the

lease liability at the present value of the lease payments that have not ben paid yet. Each lease payment is

alocated betwen the liability and interest expense. The interest expense is charged to profit or los over the

lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each

period. The lease payments include fixed payments and payments to be made in the event that it is reasonably

determined that the purchase option wil be exercised or the lease option is terminated. The lease payments are

discounted using the interest rate implicit in the lease. If that rate canot be determined, the lese’s incremental

borowing rate is used.

The Group’s right-of-use asets include leased buildings, land use right, equipment, vehicles and others. The

right-of-use asets are initialy measured at cost, which includes the initial measurement of the lease liability, the

lease payments paid on or before the lease comencement date, and the initial direct costs, les any lease incentives

received. If the Group can reasonably expect to obtain the ownership of the leased aset at the expiration of the

lease term, it is depreciated over the remaining useful life of the leased aset on a straight-line basis; if it is not

posible to reasonably determine whether the ownership of the leased aset can be obtained at the expiration

of the lease term, it is depreciated over the shorter period of the lease term and the remaining useful life of the

leased asets on a straight-line basis. When the recoverable amount is lower than the carying amount of an

right-of-use aset, the Group writes down the carying amount to the recoverable amount.

For short-term leases with a lease term of no more than 12 months and leases of asets with low values when new,

the Group choses not to recognise the right-of-use asets and lease liabilities. Instead, it recognises in each period

the relevant rental payments in profit or los or relevant aset costs on a straight-line basis over the lease term.

Land use rights are amortised on a straight-line basis over the respective periods of grant. When the costs

atributable to the land use rights canot be reliably measured and separated from that of the building at inception,

the costs are included in the cost of buildings and recorded in property, plant and equipment.

Impairment los on land use rights is acounted for in acordance with the acounting policies as set out in

Note 4(m).

The Group as the lesor

A lease is clasified as either a finance lease or an operating lease. A finance lease is a lease that transfers substantialy

al the risks and rewards incidental to ownership of a leased aset to the lese, irespective of whether the legal

title to the aset is eventualy transfered. An operating lease is a lease other than a finance lease.

(i) Finance leases

Where the Group is a lesor under finance leases, an amount representing the sum of the minimum

lease receipts and unguaranted residual value, net of initial direct costs, al discounted at the implicit

lease rate (the “net lease investment”), is included in “loans and advances to customers” on consolidated

statement of financial position as a finance lease receivable. At the comencement of the lease term,

the Group recognises the agregate of the minimum lease receipts determined at the inception of a lease

and the initial direct costs as finance lease receivable. The diference betwen the net lease investment

and the agregate of their present value is recognised as unearned finance income which is included in

“loans and advances to customers” as wel. Unrecognised finance income under finance leases is amortised

using the efective interest rate method over the lease term. The financing income included in finance

lease receivable wil be recognized as “interest income” acording to the proportion of invested capital

during the lease term.

Impairment loses are acounted in acordance with the acounting policies as set out in Note 4 (c)(i).

– F-40 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited220

4 Sumary of significant acounting policies (continued)

(h) Lease (continued)

The Group as the lesor (continued)

(i) Operating leases

Where the Group leases out asets under operating leases, the asets are included in the consolidated

statement of financial position acording to their nature and, where aplicable, are depreciated in

acordance with the Group’s depreciation policies, as set out in Note 4 (g) except where the aset is

clasified as an investment property. Impairment loses are acounted in acordance with the acounting

policies as set out in Note 4 (m). Revenue arising from operating leases is recognised in acordance with

the Group’s revenue recognition policies, as set out in Note 4 (t)(iv).

(i) Intangible asets

Intangible asets are initialy recognized at cost. The cost les estimated net residual values (if any) of the intangible

asets is amortised on a straight-line basis over their useful lives, and charged to profit or los. Impaired intangible

asets are amortised net of acumulated impairment loses.

Estimated Useful Lives of Intangible Asets are as folowsEstimated Useful Lives

Computer Software5 years

Data Resources3 years

Others5-35 years

Impairment los on intangible asets is acounted for in acordance with the acounting policies as set out in

Note 4 (m). Impaired intangible asets are amortised net of acumulated impairment loses.

Intangible asets which are not yet available for use should be estimated at least at each financial year end, even

if there was no indication that the asets were impaired.

(j) Investment properties

Investment properties are land and/or buildings which are owned and/or held under a leasehold interest to earn

rental income and/or for capital apreciation.

The Group’s investment properties are acounted for using the fair value model for subsequent measurement

when either of the folowing conditions is met:

– There is an active property market in the location in which the investment property is situated;

– The Group can obtain the market price and other relevant information regarding the same type of or

similar properties from the property market, so as to reasonably estimate the fair value of the investment

property.

Investment properties are stated at fair value in the consolidated statement of financial position. The Group

does not acrue depreciation or amortization of investment properties. Any gain or los arising from a change

in fair value or from the retirement or disposal of an investment property is recognized in the consolidated

statement of profit or los.

When there is a change in use of properties from owner-ocupation to earn rentals or for capital apreciation,

the investment property transfering from property, plant and equipment or intangible asets is measured at fair

value on the date of transfer. On the transfered date of property, plant and equipment or intangible asets, if

the fair value of investment property is lower than the carying amount of property, the diference is recognized

in profit or los, otherwise in the other comprehensive income.

When an investment property is sold, transfered, retired or damaged, the Group recognized the amount of

any proceds on disposal, net of the carying amount and related expenses, in the consolidated statement of

profit and los.

– F-41 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2212024 Anual Report

4 Sumary of significant acounting policies (continued)

(k) Godwil

Godwil represents the exces of the cost of a busines combination over the Group’s interest in the fair value

of the acquire’s identifiable net asets. Godwil is not amortised. Godwil arising from a busines combination

is alocated to each cash-generating unit (“CGU”) or a group of CGUs, that is expected to benefit from the

synergies of the combination. The Group performs impairment test on godwil anualy.

Any exces of the Group’s interest in the net fair value of the acquire’s identifiable net asets over the cost of

a busines combination is recognized imediately in the consolidated statement of profit or los.

On disposal of the related CGU or a group of CGUs, any atributable amount of the purchased godwil net

of alowance for impairment loses, if any, is included in the calculation of the profit or los on disposal.

Impairment los on godwil is acounted in acordance with the acounting policies as set out in Note 4 (m).

(l) Reposesed asets

In the recovery of impaired loans and advances, the Group may take posesion of asets held as colateral

through court procedings or voluntary delivery of posesion by the borowers. Where it is intended to achieve

an orderly realization of the impaired asets and the Group is no longer seking repayment from the borower,

reposesed asets are reported as “other asets” in the consolidated statement of financial position.

When the Group seizes asets to compensate for the loses of loans and advances and interest receivables, the

reposesed asets are initialy recognized at fair value and any taxes that are directly atributable to the asets,

and other expenses incured for colecting the reposesed asets.

When the fair value les costs to sel is lower than a reposesed aset’s carying amount, an impairment los

is recognized in the consolidated statement of profit or los. Reposesed asets are recognized at the carying

value, net of alowance for impairment loses. The impairment los is recorded in the consolidated statement

of profit and los.

The reposesed asets are disposed after acquisition and canot be used without authorisation. The reposesed

asets that are transfered to own use are treated as newly purchased property, plant and equipment. Any gain

or los arising from the disposal of the reposesed asets is included in the consolidated statement of profit or

los in the period in which the item is disposed.

(m) Alowance for impairment of non-financial asets

(i) Impairment of non-financial asets other than godwil

At the end of each reporting period, the Group aseses whether there is any indication that a non-financial

aset other than godwil such as investments in asociates and joint ventures, property, plant and

equipment, intangible asets, investment properties and other asets may be impaired. If any indication

exists that an aset may be impaired, the Group estimates the recoverable amount of the aset.

The recoverable amount of an aset is the higher of its fair value les costs to sel and the present value

of the future cash flows expected to be derived from the aset. The Group considers al relevant factors

in estimating the present value of future cash flows, such as the expected future cash flows, the useful

life and the discount rate.

If the recoverable amount of an aset is les than its carying amount, the carying amount of the aset is

reduced to its recoverable amount. That reduction is recognized as an impairment los in the consolidated

statement of profit or los.

– F-42 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited222

4 Sumary of significant acounting policies (continued)

(m) Alowance for impairment of non-financial asets (continued)

(i) Impairment of godwil

For the purpose of impairment testing, godwil acquired in a busines combination is alocated to the

CGU or the group of CGUs that is expected to benefit from the synergies of the combination.

A CGU is the smalest identifiable group of asets that generates cash inflows that is largely independent

of the cash flows from other asets or groups of asets.

The CGU or the group of CGUs to which godwil has ben alocated is tested for impairment by the

Group anualy, or whenever there is an indication that the CGU or the group of CGUs are impaired,

by comparing the carying amount of the CGU or the group of CGUs, including the godwil, with the

recoverable amount of the CGU or the group of CGUs. The recoverable amount of the CGU or the

group of CGUs are the estimated future cash flows, which are discounted to their present value using a

discount rate that reflects curent market asesments of the time value of money and the risks specific

to the CGU or the group of CGUs with alocated godwil.

At the time of impairment testing of a CGU or a group of the CGUs to which godwil has ben alocated,

there may be an indication of an impairment of an aset within the CGU containing the godwil. In

such circumstances, the Group tests the aset for impairment first, and recognized any impairment los

for that aset before testing for impairment on the CGU or group of the CGUs containing the godwil.

Similarly, there may be an indication of an impairment of a CGU within a group of the CGUs containing

the godwil. In such circumstances, the Group tests the CGU for impairment first, and recognized any

impairment los for that CGU, before testing for impairment the group of CGUs to which the godwil

is alocated.

For a CGU or a group of CGUs, the amount of impairment los firstly reduces the carying amount

of any godwil alocated to the CGU or the group of CGUs, and then reduces the carying amount

of other asets (other than godwil) within the CGU or the group of CGUs, pro rata on the basis of

the carying amount of each aset. The carying amount of an aset should not be reduced below the

highest of its fair value les costs of disposal (if measurable); its value in use (if determinable) and zero.

An impairment los in respect of godwil is not reversed.

(n) Fair value measurement

Fair value is the price that would be received to sel an aset or paid to transfer a liability in an orderly transaction

in the principal (or most advantageous) market at the measurement date under curent market conditions (i.

e. an exit price) regardles of whether that price is directly observable or estimated using another valuation

technique (Note 57).

– F-43 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2232024 Anual Report

4 Sumary of significant acounting policies (continued)

(o) Employe benefits

(i) Employe salaries

During the acounting period when an employe has rendered service to the Group, the Group wil

recognize the actual amount of employe wages, bonuses, labor union expenses and employe education

expenses, medical insurance, work-related injury insurance, maternity insurance and housing provident

funds paid for employes acording to the regulated benchmark and ratio, are recognised as a liability

as the employe provides services, with a coresponding charge to profit or los or included in the cost

of asets where apropriate.

(i) Post-employment benefits-Defined contribution plans

Pursuant to the relevant laws and regulations in the PRC, the Group participates in a defined contribution

basic pension insurance in the social insurance system established and managed by government organisations.

The Group makes contributions to basic pension insurance plans based on the aplicable benchmarks

and rates stipulated by the government. Basic pension contributions payable is recognised as a liability

as the employe provides services, with a coresponding charge to profit or los or included in the cost

of asets where apropriate.

In adition to the statutory provision plan, the Bank’s qualified employes in Mainland China. have

joined its anuity scheme (the”scheme”) which was established by the CITIC Group Corporation

(“CITIC Group”) in acordance with policies regarding the state-owned enterprise anuity policy. The

Bank has made anuity contributions in proportion to its employes’ gros salaries which are expensed

in the consolidated statement of profit or los when the contributions are made.

The Group operates a defined contribution provident fund and a Mandatory Provident Fund scheme

for Hong Kong staf. Contributions are charged to profit or los as and when the contribution fal due.

(i) Post-employment benefits: Defined benefit plans

The defined benefit plans of the Group are suplementary retirement benefits provided to the domestic

employes.

The Group adopts the projected unit credit actuarial cost method, using unbiased and mutualy compatible

actuarial asumptions to estimate the demographic and financial variables, to measure the obligation

asociated in the defined benefits plan. The discounted present value of the defined benefit obligation is

recognized as the liabilities of the defined benefit plans.

The Group recognizes the obligation of defined benefit plans in the acounting period in which the

employes render the related services. Past-service costs are recognized imediately in the consolidated

statement of profit or los. Re-measurement arising from experience adjustments and changes in actuarial

asumptions are charged or credited to equity in other comprehensive income in the period in which

they arise.

– F-44 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited224

4 Sumary of significant acounting policies (continued)

(p) Government grants

Government grants are transfers of monetary asets or non-monetary asets from the government to the Group

at no consideration except for any capital contribution from the government as an investor in the Group. Special

funds such as investment grants alocated by the government, if clearly defined in oficial documents as part of

“capital reserve” are dealt with as capital contributions, and not regarded as government grants.

Government grants are recognized when there is reasonable asurance that the grants wil be received and that

the Group wil comply with the conditions ataching to the grants. Government grants are measured at the

amount received or wil be received when recognized as monetary asets. Government grants are measured at

fair value when recognized as non-monetary asets.

The grants related to asets are government grants whose primary condition is that an entity qualifying for them

should purchase, construct or otherwise acquire long-term asets. The grants related to income are government

grants other than those related to asets. A government grant related to an aset is recognized initialy as defered

income and amortised to profit or los on a straight-line basis over the useful life of the aset. A grant that

compensates the Group for expenses or loses to be incured in the subsequent periods is recognized initialy as

defered income, and recognized in the consolidated statement of profit or los or ofset against related expenses

in the same periods in which the expenses are recognized. A grant that compensates the Group for expenses

incured is recognized in the consolidated statement of profit or los imediately. The Group uses the same

statement method for similar government grants.

For the policy loans with favourable interest rates, the Group records the loans at the actual amounts and

calculates the interests by loan principals and the favourable interest rates. The interest subsidies directly received

from government are recorded as a reduction of interest expenses.

(q) Financial guarante contracts and loan comitments

A financial guarante contract is a contract that requires the isuer to make specified payments to reimburse

the holder for a los it incurs because a specified debtor fails to make payment when due, in acordance with

the terms of a debt instrument.

Financial guarantes are initialy recognized at fair value on the date the guarante was given. Subsequent

to initial recognition, the Group’s liabilities under such guarantes are measured at the higher of the initial

amount, les amortisation of guarante fes, and the best estimate of the expected credit los provision required

to setle the guarante. Any increase in the liability relating to guarantes is taken to the consolidated statement

of profit and los.

The impairment alowance of loan comitments provided by the Group is measured by ECL. The Group has

not provided any comitment to provide loans at a below-market interest rate, or that can be setled net in

cash or by delivering or isuing another financial instrument.

For loan comitments and financial guarante contracts, the los alowance is recognized as a provision. However,

for contracts that include both a loan and an undrawn comitment and the Group canot separately identify

the ECL on the undrawn comitment component from those on the loan component, the ECL on the undrawn

comitment are recognized together with the los alowance for the loan. To the extent that the combined ECL

exced the gros carying amount of the loan, the ECL are recognized as a provision.

– F-45 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2252024 Anual Report

4 Sumary of significant acounting policies (continued)

(r) Provisions and contingent liabilities

A provision is recognized in the consolidated statement of financial position when the Group has a present legal

or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits

wil be required to setle the obligation and a reliable estimate can be made. A provision is initialy measured

at the best estimate of the expenditure required to setle the related present obligation. Factors pertaining to a

contingency such as the risks, uncertainties and time value of money are taken into acount as a whole in reaching

the best estimate. Where the efect of the time value of money is material, the best estimate is determined by

discounting the related future cash outflows. The Group recognizes the los alowance of financial guarante

contracts measured by ECL as a provision.

A contingent liability is (i) a posible obligation that arises from past events and whose existence can only be

confirmed by the ocurence or non-ocurence of one or more uncertain future events not wholy within the

control of the Group; or (i) a present obligation that arises from past events and it is not probable that an

outflow of economic benefits is required to setle the obligation; or the amount of the obligation canot be

measured reliably. Such liability is disclosed as contingent liabilities under Note 51.

(s) Fiduciary activities

The Group acts in a fiduciary capacity as a custodian, truste, or an agent for customers. Asets held by the

Group and the related undertakings to return such asets to customers are excluded from the consolidated

financial statements as the risks and rewards of the asets reside with the customers.

Entrusted lending is the busines where the Group enters into entrusted loan agrements with customers, whereby

the customers provide funding (the “entrusted funds”) to the Group, and the Group grants loans to third parties

(the “entrusted loans”) at the instruction of the customers. As the Group does not asume the risks and rewards

of the entrusted loans and the coresponding entrusted funds, entrusted loans and funds are recorded as of-

balance shet items at their principal amounts and no impairment asesments are made for these entrusted loans.

(t) Income recognition

Revenue is the gros inflow of economic benefit arising in the course of the Group’s ordinary activities when

those inflows result in increases in equity, other than increases relating to contributions from owners. Revenue

is recognized when the controls of related products or services is obtained and satisfy the other conditions for

diferent type of revenues as below.

(i) Interest income

Interest income of financial asets is calculated using the efective interest method and included in the

profit and los.

The acounting policies about interest income of financial asets measured at amortised cost refer to

note 4 (c)(i).

(i) Fe and comision income

Fe and comision income is recognized when the Group fulfils its performance obligation, either over

time or at a point in time when a customer obtains control of the service. Origination or comitment

fes received by the Group which result in the creation or acquisition of a financial aset are defered and

recognized as an adjustment to the efective interest rate. If the comitment expires without the Group

making a loan or anticipating wil not, the fe is recognized as revenue on expiry.

– F-46 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited226

4 Sumary of significant acounting policies (continued)

(t) Income recognition (continued)

(i) Dividend income

Dividend income is recognized in the consolidated statement of profit or los on the date when the

Group’s right to receive payment is established.

(iv) Rental income from operating lease

Rental income received under operating leases is recognized as other operating income in equal instalments

over the periods covered by the lease term, except where an alternative basis is more representative of

the patern of benefits to be derived from the leased aset. Lease incentives granted are recognized in the

consolidated statement of profit or los as an integral part of the agregate net lease payments receivable.

(v) Finance income from finance lease and hire purchase contract

Finance income implicit in finance lease and hire purchase payments is recognized as interest income

over the period of the leases so as to produce an aproximately constant periodic rate of return on the

outstanding net investment in the leases for each acounting period.

(u) Income tax

Curent tax and defered tax are recognized in the consolidated statement of profit or los except to the extent

that they relate to a busines combination or items recognized directly in equity (including other comprehensive

income).

Curent income tax is the expected tax payables on the taxable income for the year, using tax rates enacted or

substantialy enacted at the reporting date, and any adjustment to tax payables in respect of previous periods.

Defered tax is provided for temporary diferences betwen the carying amounts of asets and liabilities for

financial reporting purposes and the amounts used for taxation purposes. Temporary diferences also arise from

unused tax loses and unused tax credits. Defered tax liabilities are not recognized if they arise from the initial

recognition of godwil, the defered income tax is not acounted for if it arises from initial recognition of an

aset or liability in a transaction other than a busines combination that at the time of the transaction afects

neither acounting nor taxable profit or los. A defered tax aset is recognized to the extent that it is probable

that future taxable profits wil be available against which the aset can be recognized.

Defered income tax liabilities are provided on taxable temporary diferences arising from investments in

subsidiaries, asociates and joint arangements, except for defered income tax liability where the timing of the

reversal of the temporary diference is controled by the Group and it is probable that the temporary diference

wil not reverse in the foreseable future. Defered income tax asets are recognized on deductible temporary

diferences arising from investments in subsidiaries, asociates and joint ventures arangements only to the

extent that it is probable the temporary diference wil reverse in the future and there is suficient taxable profit

available against which the temporary diference can be recognized.

At the end of the reporting date, defered tax asets and defered tax liabilities are measured at the tax rates

that are expected to aply to the period when the aset is recognized or the liability is setled acording to the

requirements of tax laws. The Group also considers the probability of realization and the setlement of defered

tax asets and defered tax liabilities in the calculation.

The carying amount of a defered tax aset is reviewed at the end of the reporting date, and is reduced to the

extent that it is no longer probable that the related tax benefits wil be utilised. Such reductions are reversed to

the extent that it becomes probable that suficient taxable profits wil be available.

Curent tax asets are ofset against curent tax liabilities, and defered tax asets against defered tax liabilities if

the Group has the legaly enforceable right to set of curent tax asets against curent tax liabilities and met the

aditional conditions that defered tax asets and liabilities relate to income taxes levied by the same authority

on the same taxable entity. Otherwise, defered tax asets and liabilities and their changes shal be presented

separately and not ofset each other.

– F-47 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2272024 Anual Report

4 Sumary of significant acounting policies (continued)

(v) Cash equivalents

Cash equivalents are short-term, highly liquid investments that are readily convertible into known amounts of

cash and which are subject to an insignificant risk of changes in value, with original maturity of thre months

or les at acquisition.

(w) Profit distribution

Proposed dividends for ordinary shares which are declared and aproved after the end of each reporting period

are not recognized as a liability in the consolidated statement of financial position and are instead disclosed as

a subsequent event after the end of each reporting period in the notes to the consolidated financial statements.

Dividends payable are recognized as liabilities in the period in which they are aproved.

As authorized by the shareholders’ anual general meting, the Board of Directors has the sole discretion to

declare and distribute dividends on preference shares. Preference shares dividend distribution is recognized as a

liability in the consolidated financial statements in the period in which the dividends are aproved.

(x) Related parties

If the Group has the power, directly or indirectly, to control, jointly control or exercise significant influence

over another party, or vice versa, or where the Group and one or more parties are subject to comon control,

jointly control from another party, they are considered to be related parties. Related parties may be individuals

or enterprises.

(y) Operating segments

An operating segment is a component of the Group that satisfies al of the folowing conditions: (1) the component

is able to earn revenues and incur expenses from its ordinary activities; (2) whose operating results are regularly

reviewed by the Group’s management to make decisions about resources to be alocated to the segment and to

ases its performance, and (3) for which the information on financial position, operating results and cash flows

is available to the Group. If two or more operating segments have similar economic characteristics and satisfy

certain conditions, they are agregated into one single operating segment.

Operating segments are reported in a maner consistent with the internal reporting provided to the Group’s

chief operating decision-maker for the purposes of alocating resources and asesing performance. The Group

considers the busines from diferent perspectives including products and services and geographic areas. The

operating segments that met the specified criteria have ben agregated, and the operating segments that met

quantitative thresholds have ben reported separately.

Inter-segment revenues are measured on the basis of actual transaction price for such transactions for segment

reporting, and segment acounting policies are consistent with those for the consolidated financial statements.

– F-48 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited228

5 Critical acounting estimates and judgements

Preparation of the consolidated financial statements requires management to make judgments, estimates and asumptions

that afect the aplication of policies and the reported amounts of asets and liabilities, income and expenses. The

estimates and asociated asumptions are based on historical experience and other factors that are believed to be

reasonable under the circumstances, the results of which form the basis of making the judgments about carying values

of asets and liabilities that are not readily aparent from other sources. Actual results may difer from these estimates.

The estimates and asociated key asumptions are reviewed on an ongoing basis. Revisions to acounting estimates are

recognized in the period in which the estimates are revised and in any future periods afected.

(i) Measurement of the expected credit los alowance

The measurement of the expected credit los alowance for financial asets of debt instruments and of balance

shet credit asets measured at amortised cost and FVOCI is an area that requires the use of complex models

and significant asumptions about future economic conditions and credit recognition (e. g. the likelihod of

customers defaulting and the resulting loses). Explanation of the inputs, asumptions and estimation techniques

used in measuring ECL is further detailed in note 55 (a).

A number of significant judgements are also required in aplying the acounting requirements for measuring

ECL, such as:

;

;

, or a default or

impairment los was incured;

, and the aplication of economic scenarios and

weightings;

• Management overlay for aset portfolios whose non-linear risk characteristics canot be adequately reflected

through impairment models; and

• Discounted cash flows model is aplicable to asets related to corporate client in stage 3.

Detailed information about the judgements and estimates made by the Group in the above areas is set out in

note 55 (a).

(i) Clasification of financial asets

The critical judgments the Group has in determining the clasification of financial asets include analysis of

busines models and characteristics of contractual cash flows.

The Group determines the busines model for managing financial asets at the level of financial aset portfolio.

The factors considered include evaluation and reporting of financial aset performance to key management

personel, risks afecting the performance of financial asets and their management methods, and related busines

management personel. The way to get paid, etc.

When asesing whether the contractual cash flow of financial asets is consistent with the basic lending

arangement, the Group has the folowing main judgments: whether the principal may be subject to change in

the duration or amount of money due to prepayments during the duration; whether interests is only included

curency time value, credit risk, other basic borowing risks, and considerations for costs and profits; whether

the amount paid in advance reflect only the outstanding principal and interest on the outstanding principal, as

wel as reasonable compensation for early termination of the contract.

– F-49 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2292024 Anual Report

5 Critical acounting estimates and judgements (continued)

(i) Fair value of financial instruments

For financial instruments without active market, the Group determines fair values using valuation techniques

which include discounted cash flow models, as wel as other types of valuation models. Asumptions and inputs

used in valuation techniques include risk-fre and benchmark interest rates, credit spreads and foreign curency

exchange rates. Where discounted cash flow techniques are used, estimated cash flows are based on management’s

best estimates and the discount rate used is a market rate at the end of each reporting period aplicable for

an instrument with similar terms and conditions. Where other pricing models are used, inputs are based on

observable market data at the end of each reporting period. However, where market data are not available,

management neds to make estimates on such unobservable market inputs based on asumptions. Changes in

asumptions about these factors could afect the estimated fair value of financial instruments.

(iv) De-recognition of financial asets

In its normal course of busines, the Group transfers financial asets through various types of transactions

including regular way sales and transfers, securitization, financial asets sold under repurchase agrements and

etc., the Group aplies significant judgement in asesing whether it has transfered these financial asets which

qualify for a ful or partial de-recognition.

Where the Group enters into structured transactions by which it transfered financial aset to structured entities,

the Group analyses whether the substance of the relationship betwen the Group and these structured entities

indicates that it controls these structured entities to determine whether the Group neds to consolidate these

structured entities. This wil determine whether the folowing de-recognition analysis should be conducted at

the consolidated level or at the entity level from which the financial asets was transfered.

The Group analyses the contractual rights and obligations in conection with such transfers to determine whether

the de-recognition criteria are met based on the folowing considerations:

– whether it has transfered the rights to receive contractual cash flows from the financial asets or the

transfer qualified for the “pas through” of those cash flows to independent third parties;

– the extent to which the asociated risks and rewards of ownership of the financial asets are transfered by

using apropriate models. Significant judgment is aplied in the Group’s asesment with regard to the

parameters and asumptions aplied in the models, estimated cash flows before and after the transfers,

the discount rates used based on curent market interest rates, variability factors considered and the

alocation of weightings in diferent scenarios;

– where the Group neither retains nor transfers substantialy al of the risks and rewards asociated with

their ownership, the Group analyses whether the Group has relinquished its controls over these financial

asets, and if the Group has continuing involvement in these transfered financial asets.

(v) Consolidation of structured entities

The Group makes significant judgment to ases whether the Group controls and should consolidate structured

entities. When performing this asesment, the Group has comprehensively considered various factors:

– aseses its contractual rights and obligations in light of the transaction structures, and evaluates the

Group’s power over the structured entities;

– performs independent analyses and tests on the variable returns from the structured entities, including

but not limited to comision income and aset management fes earned, retention of residual income,

and, if any, liquidity and other suport provided to the structured entities; and;

– aseses its ability to exercise its power to influence the variable returns asesed whether the Group

acts as a principal or an agent through analysis of the scope of the Group’s decision-making authority,

remuneration entitled, other interests the Group holds, and the rights held by other parties.

– F-50 –

2024
5,842
1,965
10,296
1,275
123,592
112,330
30,873
23,549
69
309,791
(6,367)
(17,832)
(2,679)
(4,148)
(103,975)
(27,608)
(452)
(51)
(163,112)
146,679

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited230

5 Critical acounting estimates and judgements (continued)

(vi) Income taxes

Determining income tax provisions involves judgement on the future tax treatment of certain transactions. There

are certain transactions and activities for which the ultimate tax determination is uncertain during the ordinary

course of busines. The Group carefuly evaluates the tax implications of transactions and tax provisions are set up

acordingly. The tax treatment of such transactions is reconsidered periodicaly to take into acount al changes

in tax legislations. Defered tax asets are recognized for temporary deductible diferences. As those defered tax

asets can only be recognized to the extent that it is probable that future taxable profits wil be available against

which the unused tax credits can be recognized, management’s judgement is required to ases the probability

of future taxable profits. Management’s asesment is constantly reviewed and aditional defered tax asets are

recognized if it becomes probable that future taxable profits wil alow the defered tax asets to be recovered.

6 Net interest income

Years ended 31 December

Interest income arising from (Note (i):

Deposits with central banks6,445

Deposits with banks and non-bank financial institutions1,756

Placements with and loans to banks and non-bank financial institutions8,125

Financial asets held under resale agrements1,029

Loans and advances to customers

— corporate loans126,650

— personal loans116,749

Financial investments

— at amortised cost36,759

— at fair value through other comprehensive income20,117

Others62

Subtotal317,692

Interest expense arising from:

Borowings from central banks(4,281)

Deposits from banks and non-bank financial institutions(22,479)

Placements from banks and non-bank financial institutions(2,366)

Financial asets sold under repurchase agrements(3,762)

Deposits from customers(115,734)

Debt securities isued(24,996)

Lease liabilities(454)

Others(81)

Subtotal(174,153)

Net interest income143,539

Note:

(i) Interest income includes interest income acrued on credit-impaired financial asets of RMB760 milion for the year ended 31 December 2024 (2023:

RMB715 milion).

– F-51 –

2024
15,557
7,801
4,981
4,997
2,476
1,602
37,414
(6,312)
31,102

2024
4,217
210
2,342
6,769

2024
14,980
2,518
6,951
22
1,342
805
493
27,111

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2312024 Anual Report

7 Net fe and comision income

Years ended 31 December

Fe and comision income:

Bank card fes16,800

Comision for custodian busines and other fiduciary6,303

Agency fes and comision (Note (i)5,855

Guarante and advisory fes5,216

Setlement and clearance fes2,261

Others564

Total36,999

Fe and comision expense(4,616)

Net fe and comision income32,383

Note:

(i) Agency fes and comision represent fes earned from seling bonds, investment funds and insurance products, and provision of entrusted lending

activities.

8 Net trading gain

Years ended 31 December

Debt securities and certificates of interbank deposit4,110

Foreign curencies4,046

Derivatives and related exposures(1,018)

Total7,138

9 Net gain from investment securities

Years ended 31 December

Financial investments

— at fair value through profit or los14,794

— at amortised cost3,806

— at fair value through other comprehensive income633

— Investments in equity instruments designated at fair value through

other comprehensive income14

Net gain from bils rediscounting916

Proceds from the resale of forfaiting549

Others391

Total21,103

– F-52 –

2024
28,000
1,571
2,208
2,179
915
4,490
321
39,684
3,239
3,189
1,342
2,045
1,883
553
500
12,751
2,194
17,309
71,938

2024
RMB’000
20,834
–
1,357
22,191

2024
4
1

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited232

10 Operating expenses

Years ended 31 December

Staf costs

— salaries and bonuses28,100

— welfare expenses1,318

— social insurance1,565

— housing fund1,982

— labor union expenses and employe education expenses786

— post-employment benefits — defined contribution plans3,990

— other benefits342

Subtotal38,083

Property and equipment related expenses

— depreciation of right-of-use asets3,256

— depreciation of property, plant and equipment2,915

— rent and property management expenses1,107

— maintenance1,334

— amortisation expenses1,953

— electronic equipment operating expenses520

— others490

Subtotal11,575

Tax and surcharges2,185

Other general operating and administrative expenses17,371

Total69,214

Note:

(i) Included in other general operating and administrative expenses were audit fes of RMB16 milion for the year ended 31 December 2024 (2023: RMB16

milion) and non-audit fes of RMB8 milion for the year ended 31 December 2024 (2023: RMB3 milion).

(a) Individuals with highest emoluments

For the year ended 31 December 2024, of the 5 individuals with the highest emoluments in the Group, there

was no director (2023: Nil) and no supervisor (2023: Nil). The agregate of the emoluments before individual

income tax in respect of the five highest paid individuals of the Group were as folows:

Years ended 31 December

RMB’000

Basic salaries, housing alowances, other alowances and benefits

in kind21,163

Discretionary bonuses21,856

Contribution to pension scheme1,217

Total44,236

The emoluments before individual income tax of the five individuals of the Group with the highest emoluments

are within the folowing bands:

Years ended 31 December

RMB0 – RMB5,000,000–

RMB5,000,001 – RMB10,000,0005

No inducement fe and compensation for los of ofice was paid to the five highest paid individuals for the year

ended 31 December 2024 (2023: Nil).

– F-53 –

2024
–
42
(12)
52,699
3,104
735
5,564
(1,087)
61,045

2024
68

2024
16,017
369
74
(5,065)
11,395

2024
80,863
20,216
(298)
5,185
(8,261)
(4,058)
(1,389)
11,395

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2332024 Anual Report

11 Credit impairment loses

Years ended 31 December

Credit impairment loses

Impairment reversal of deposits with banks and non-bank financial

institutions(43)

Impairment loses of placements with and loans to banks and non-bank

financial institutions1

Impairment (reversals)/loses of financial asets held under resale

agrements99

Impairment loses of loans and advances to customers49,840

Impairment loses of financial investments

— at amortised cost2,282

— at fair value through other comprehensive income223

Impairment loses of other financial asets and acrued interest7,970

Impairment (reversals)/loses of of-balance shet items1,554

Total61,926

12 Impairment loses on other asets

Years ended 31 December

Impairment loses of other asets-reposesed asets278

13 Income tax

(a) Recognized in the consolidated anual statement of profit and los and other comprehensive

income

Years ended 31 December

Note2023

Curent tax

— Mainland China5,493

— Hong Kong182

— Overseas161

Defered tax30(c)989

Income tax6,825

Mainland China and Hong Kong income tax have ben provided at the rate of 25% and 16.5% respectively.

Overseas tax has ben provided at the rates of taxation prevailing in the regions in which the Group operates

respectively.

(b) Reconciliation betwen income tax expense and acounting profit

Years ended 31 December

Profit before tax74,887

Income tax calculated at PRC statutory tax rate18,722

Efect of diferent tax rates in other regions(226)

Tax efect of non-deductible expenses1,424

Tax efect of non-taxable income

— interest income arising from PRC government bonds and

local government bonds(7,767)

— dividend income from investment funds(3,900)

— others(1,428)

Income tax6,825

– F-54 –

2024
(1)
(140)
58
(83)
15
21,151
(7,066)
(3,348)
466
(82)
94
1,767
12,997
12,914

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited234

14 Other comprehensive income, net of tax

Years ended 31 December

Items that wil not be reclasified subsequently to profit or los

Changes in defined benefit plan liabilities

— net changes during the year before tax–

Fair value changes on financial aset designated at fair value through

other comprehensive income, net of tax

— net changes during the year before tax(128)

— income tax(16)

Subtotal(144)

Items that may be reclasified subsequently to profit or los

Other comprehensive income transferable to profit or los under equity

method

— net changes during the year39

Fair value changes on financial asets at fair value through other

comprehensive income, net of tax (Note (i)

— net changes during the year before tax7,051

— net amount transfered to profit or los(734)

— Income tax(1,328)

Credit impairment alowance on financial asets at fair value through

other comprehensive income (Note (i)

— net changes during the year(674)

— Income tax162

Others

— net changes during the year before tax5

Exchange diferences on translation of financial statements1,198

Subtotal5,719

Other comprehensive income, net of tax5,575

Notes:

(i) Fair value changes on financial asets at fair value through other comprehensive income include those of financial investments and loans and advances to

customers at fair value through other comprehensive income.

(i) Credit impairment alowance include financial investments and loans and advances to customers at fair value through other comprehensive income.

15 Earnings per share

Earnings per share information for the years ended 31 December 2024 and 2023 is computed by dividing the profit

for the year atributable to ordinary shareholders of the Bank by the weighted average number of shares in isue during

the year.

The Bank isued non-cumulative preference shares in 2016 under the terms and conditions as detailed in Note 43 (i).

The Bank declared and paid cash dividends of RMB1,428 milion of non-cumulative preference shares for the year of

2024 (2023: 1,428 milion).

The Bank isued RMB40 bilion write-down undated capital bonds (the “Bonds”) in 2019, and the Bank isued RMB40

bilion write-down undated capital bonds (the “Bonds”) in 2021, with terms and conditions disclosed in detail in Note

43(i) under perpetual Bonds. The Bank declared and paid RMB3,360 milion in interests on the perpetual bonds in

2024 (2023: 3,360 milion).

– F-55 –

2024
68,576
4,788
63,788
52,389
1.22
1.20

31 December 2024
4,737
321,339
6,803
3,699
4,178
159
340,915

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2352024 Anual Report

15 Earnings per share (continued)

The conversion feature of preference shares is considered to fal within contingently isuable ordinary shares. The

trigering events of conversion did not ocur as at 31 December 2024, therefore the conversion feature of preference

shares has no efect on the basic and diluted earnings per share calculation in 2024.

The diluted earnings per share are calculated on the asumption that al the Bank’s convertible corporate bonds had

ben converted into ordinary shares at the begining of the year, by dividing the net profit for the year atributable

to ordinary shareholders of the Bank after adjustments for the interest expenses of convertible corporate bonds for the

year, by the adjusted weighted average number of outstanding ordinary shares for the year.

Years ended 31 December

Profit for the year atributable to equity holders of the Bank67,016

Les: Equity atributable to holders of other equity instruments of the

Bank4,788

Profit for the year atributable to ordinary shareholders of the Bank62,228

Weighted average number of shares (in milion shares)48,954

Basic earnings per share (in RMB)1.27

Diluted earnings per share (in RMB)1.14

16 Cash and balances with central banks

Notes

31 December

Cash4,467

Balances with central banks

— statutory deposit reserve funds(i)356,042

— surplus deposit reserve funds(i)52,473

— fiscal deposits(i)356

— foreign exchange reserve(iv)2,926

Acrued interest178

Total416,442

Notes:

(i) The Group places statutory deposit reserve funds with the People’s Bank of China (“PBOC”) and overseas central banks where it has operations. The

statutory deposit reserve funds are not available for use in the Group’s daily busines.

As at 31 December 2024, the statutory deposit reserve funds placed with the PBOC was calculated at 6% (31 December 2023: 7%) of eligible Renminbi

deposits for domestic branches of the Bank and at 6% (31 December 2023: 7%) of eligible Renminbi deposits from overseas financial institutions. The

Bank was also required to deposit an amount equivalent to 4% (31 December 2023: 4%) of its foreign curency deposits from domestic branch customers

as statutory deposit reserve funds.

As at 31 December 2024, the statutory RMB deposit reserve rates aplicable to Zhejiang Lin’an CITIC Rural Bank Corporation Limited (“Lin’an Rural

Bank”), a subsidiary of the Group, was at 5% (31 December 2023: 5%).

The amounts of statutory deposit reserves funds placed with the central banks of overseas countries are determined by respective jurisdictions. The statutory

deposit reserve funds are interest bearing except for the foreign curency reserve funds deposits placed with the PBOC.

(i) The surplus deposit reserve funds are maintained with the PBOC for the purposes of clearing

(i) Fiscal deposits placed with the PBOC are not available for use in the Group’s daily operations, and are non-interest bearing (except for regulations provided

by the local People’s Bank).

(iv) The foreign exchange reserve is maintained with the PBOC in acordance with the related notice isued by the PBOC. The reserve is provided as of 20%

of customer-driven foreign exchange forward transactions volume on a monthly basis. Such foreign exchange reserve is non-interest bearing and wil be

repayable in 12 months acording to the Notice.

– F-56 –

31 December 2024
76,247
18,880
95,127
31,507
1,280
32,787
335
128,249
(56)
128,193

31 December 2024
97,100
1,781
29,033
127,914
335
128,249
(56)
128,193

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited236

17 Deposits with banks and non-bank financial institutions

(a) Analysed by types and locations of counterparties

Note

31 December

In Mainland China

— banks52,508

— non-bank financial institutions6,946

Subtotal59,454

Outside Mainland China

— banks20,390

— non-bank financial institutions839

Subtotal21,229

Acrued interest448

Gros balance81,131

Les: Alowances for impairment loses32(56)

Net balance81,075

(b) Analysed by remaining maturity

Note

31 December

Demand deposits (Note (i)42,383

Time deposits with remaining maturity

— within one month3,800

— betwen one month and one year34,500

Subtotal80,683

Acrued interest448

Gros balance81,131

Les: Alowances for impairment loses32(56)

Net balance81,075

Note:

(i) As at 31 December 2024, within the demand deposits there were pledged deposits of RMB1,542 milion (as at 31 December 2023: RMB911

milion). These deposits were mainly maintenance margins with a regulatory body.

– F-57 –

31 December 2024
64,651
269,520
334,171
69,134
451
69,585
1,230
404,986
(185)
404,801

31 December 2024
93,695
251,297
58,764
1,230
404,986
(185)
404,801

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2372024 Anual Report

18 Placements with and loans to banks and non-bank financial institutions

(a) Analysed by types and locations of counterparties

Note

31 December

In Mainland China

— banks (Note (i)23,450

— non-bank financial institutions148,150

Subtotal171,600

Outside Mainland China

— banks64,997

— non-bank financial institutions-

Subtotal64,997

Acrued interest1,288

Gros balance237,885

Les: Alowances for impairment loses32(143)

Net balance237,742

Note:

(i) The leased gold betwen Banks is included in the Placements with and loans to banks and non-bank financial institutions, measured at fair

value through profit or los. As at 31 December 2024, the carying amount of leased gold was RMB22,789 milion (as at 31 December 2023:

RMB7,320 milion)

(b) Analysed by remaining maturity

Note

31 December

Within one month70,820

Betwen one month and one year164,277

Over one year1,500

Acrued interest1,288

Gros balance237,885

Les: Alowances for impairment loses32(143)

Net balance237,742

– F-58 –

31 December 2024
Nominal amount	Assets	Liabilities
5,289	121	29
4,668,484	21,023	20,762
4,605,533	64,282	57,090
94,871	503	3,281
9,374,177	85,929	81,162

31 December 2024
3,243,260
4,318,460
1,777,322
35,135
9,374,177

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited238

19 Derivatives

Derivatives include forward, swap and option transactions undertaken by the Group in foreign exchange, interest rate,

and precious metals derivatives related to trading, aset and liability management and customer-initiated transactions.

The Group, through the operations of its branch network, acts as an intermediary for a wide range of customers for

structuring deals to ofer risk management solutions to match individual customer neds. These positions are actively

managed through hedging transactions with external parties to ensure the Group’s net exposures are within aceptable

risk levels. The Group also uses these derivatives for proprietary trading purposes and to manage its own aset and

liability and structural positions. Derivatives are held for trading. Derivatives clasified as held for trading are for

trading and customer-initiated transactions purpose, and those for risk management purposes do not met the criteria

for hedge acounting.

The contractual/notional amounts of derivatives provide a basis for comparison with fair values of derivatives recognized

on the consolidated statement of financial position but do not necesarily indicate the amounts of future cash flows

involved or the curent fair values of the derivatives and, therefore, do not indicate the Group’s exposure to credit or

market risks.

31 December 2023

Nominal

amountAsetsLiabilities

Hedging instruments

— interest rate derivatives71623–

Non-Hedging instruments

— interest rate derivatives3,632,63314,63314,360

— curency derivatives3,071,03929,87226,748

— precious metal derivatives34,448147742

Total6,738,83644,67541,850

(a) Nominal amount analysed by remaining maturity

31 December

Within thre months2,606,918

Betwen thre months and one year2,594,719

Betwen one year and five years1,500,503

Over five years36,696

Total6,738,836

(b) Credit risk weighted amounts

The credit risk weighted amount has ben computed in acordance with “Regulation Governing Capital of

Comercial Banks” promulgated by the National Administration of Financial Regulation in the year of 2023,

and depends on the status of the counterparties and the maturity characteristics of the instruments, including

those customer-driven back-to-back transactions. As at 31 December 2024, the total amount of credit risk

weighted amount for counterparty was RMB24,307 milion (31 December 2023: RMB28,225 milion).

– F-59 –

31 December 2024
101,671
31,919
133,590
972
1,759
2,731
31
136,352
(87)
136,265

31 December 2024
136,321
–
136,321
31
136,352
(87)
136,265

31 December 2024
135,622
699
31
136,352
(87)
136,265

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2392024 Anual Report

20 Financial asets held under resale agrements

(a) Analysed by types and locations of counterparties

Note

31 December

In Mainland China

— banks51,038

— non-bank financial institutions51,124

Subtotal102,162

Outside Mainland China

— banks2,197

— non-bank financial institutions478

Subtotal2,675

Acrued interest35

Gros balance104,872

Les: Alowance for impairment loses32(99)

Net balance104,773

(b) Analysed by types of colateral

Note

31 December

Debt securities103,338

Discounted bils1,499

Subtotal104,837

Acrued interest35

Gros balance104,872

Les: Alowance for impairment loses32(99)

Net balance104,773

Note

31 December

Within one month103,887

Betwen one month and one year950

Acrued interest35

Gros balance104,872

Les: Alowance for impairment loses32(99)

Net balance104,773

– F-60 –

31 December 2024
2,771,263
2,182
49,579
2,823,024
1,067,339
488,716
488,898
310,637
6,151
2,361,741
21,715
5,206,480
(138,691)
(1,702)
5,066,087
76,032
447,719
523,751
105
11,612
5,601,450
(549)

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited240

21 Loans and advances to customers

(a) Analysed by nature

Note

31 December

Loans and advances to customers at amortised cost

Corporate loans and advances

— loans2,586,610

— discounted bils1,684

— finance lease receivables46,819

Subtotal2,635,113

Personal loans and advances

— residential mortgages1,003,321

— credit cards521,260

— busines loans459,113

— personal consumption298,561

— finance lease receivables1,591

Subtotal2,283,846

Acrued interest19,948

Gros balance4,938,907

Les: Alowances impairment loses on loans32

— principal(133,861)

— interest(681)

Loans and advances to customers at amortised cost,

net4,804,365

Loans and advances to customers at fair value

through other comprehensive income

— loans58,163

— discounted bils515,664

Carying amount of loans and advances at fair value

through other comprehensive income573,827

— fair value changes through other comprehensive

income(98)

Carying amount of loans and advances at fair value

through profit or los5,558

Total5,383,750

Alowances for impairment loses on loans and

advances to customers at fair value through other

comprehensive income32(656)

– F-61 –

31 December 2024
Stage one	Stage two	Stage three	Total
Stage one	Stage two	(Note (i))
5,000,518	115,459	68,788	5,184,765
15,835	5,087	793	21,715
(62,041)	(29,453)	(48,899)	(140,393)
4,954,312	91,093	20,682	5,066,087
523,134	460	157	523,751
5,477,446	91,553	20,839	5,589,838
(545)	(1)	(3)	(549)

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2412024 Anual Report

21 Loans and advances to customers (continued)

(b) Analysed by asesment method of alowance for impairment loses

Gros loans and advances to

customers at amortised costs

Acrued interest

Les: Alowance for impairment

loses

Carying amount of loans

and advances to customers

measured at amortised cost

Carying amount of loans

and advances to customers

at fair value through other

comprehensive income

Total

Alowance for impairment

loses on loans and advances

to customers at fair value

through other comprehensive

income(545)(1)(3)(549)

31 December 2023

Stage oneStage twoStage threTotal

(Note (i)

Gros loans and advances to

customers at amortised costs4,755,90096,02367,0364,918,959

Acrued interest19,03941149819,948

Les: Alowance for impairment

loses(62,976)(27,105)(44,461)(134,542)

Carying amount of loans

and advances to customers

measured at amortised cost4,711,96369,32923,0734,804,365

Carying amount of loans

and advances to customers

at fair value through other

comprehensive income573,370345112573,827

Total5,285,33369,67423,1855,378,192

Alowance for impairment

loses on loans and advances

to customers at fair value

through other comprehensive

income(586)–(70)(656)

– F-62 –

31 December 2024
33,296
35,649
68,945
(48,902)

31 December 2024
Overdue within three months	Overdue between three months and one year	Overdue between one year and three years	Overdue over three years	Total
29,555	13,178	2,171	380	45,284
7,497	3,683	2,899	2,678	16,757
12,846	10,965	9,216	2,071	35,098
3,220	1,570	570	137	5,497
53,118	29,396	14,856	5,266	102,636

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited242

21 Loans and advances to customers (continued)

(b) Analysed by asesment method of alowance for impairment loses (continued)

Note:

(i) Stage 3 loans are loans and advances to customers that have incured credit impairment.

31 December 2023

Secured portion33,606

Unsecured portion33,542

Gros balance67,148

Alowance for impairment loses(44,531)

As at 31 December 2024, the maximum exposure covered by pledge and colateral held on secured portion is RMB32,890 milion (as at 31

December 2023: RMB33,438 milion).

The fair value of colateral was estimated by management based on the latest revaluation including available external valuation, if any, adjusted

by taking into acount the curent realisation experience as wel as market situation.

Unsecured loans

Guaranted loans

Loans with pledged asets

— loans secured by

colateral

— pledged loans

Total53,11829,39614,8565,266102,636

31 December 2023

Overdue

within thre

months

Overdue

betwen thre

months and

one year

Overdue

betwen one

year and

thre years

Overdue over

thre yearsTotal

Unsecured loans19,85911,8062,08924634,000

Guaranted loans1,5444,2432,6001,0189,405

Loans with pledged asets

— loans secured by

colateral15,56411,75710,2491,05438,624

— pledged loans3,7891,0842,3871377,397

Total40,75628,89017,3252,45589,426

Overdue loans represent loans of which the principal or interest are overdue one day or more.

– F-63 –

31 December 2024
21,545
10,651
6,929
16,974
56,099
(705)
(858)
(381)
54,155

31 December 2024
427,597
153,564
57,626
5,213
2,131
1,267
647,398
920,170
189,906
20,162
1,095
1,131,333
13,821
(26,165)
(26,108)
(57)
1,118,989

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2432024 Anual Report

21 Loans and advances to customers (continued)

(d) Finance lease receivables

Finance lease receivables are atributable to the Group’s subsidiaries, CITIC Financial Leasing Limited (“CFL”)

and CITIC International Finance Holdings Limited (“CIFH”), include net investment in machines and equipment

leased to customers under finance lease and hire purchase contracts which have the characteristics of finance

leases. The remaining period of these contracts range from 1 to 25 years. The total finance lease receivables

under finance lease and hire purchase contracts and their present values are as folows:

31 December

Within one year (including one year)15,008

One year to two years (including two years)12,638

Two years to thre years (including thre years)6,647

Over thre years14,117

Gros balance48,410

Les: Alowance for impairment loses

— stage one(798)

— stage two(691)

— stage thre(365)

Net balance46,556

22 Financial investments

(a) Analysed by types

Note

31 December

Financial asets at fair value through profit or los

Investment funds421,154

Debt securities106,501

Certificates of deposit75,790

Equity instruments6,334

Wealth management products4,045

Trust investment plans–

Net balance613,824

Financial asets at amortised cost

Debt securities870,087

Trust investment plans204,840

Investment management products managed by

securities companies22,908

Certificates of deposit and interbank certificates of

deposit1,064

Subtotal1,098,899

Acrued interest13,004

Les: Alowance for impairment loses32(26,305)

— principles(26,239)

— acrued interest(66)

Net balance1,085,598

– F-64 –

31 December 2024
831,495
11,861
843,356
6,425
849,781
(2,558)
4,702
2,620,870

31 December 2024
Equity instruments	Debt securities instruments	Total
5,390	829,405	834,795
(688)	13,951	13,263
4,702	843,356	848,058
4,702	(2,558)	(2,558)

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited244

22 Financial investments (continued)

(a) Analysed by types (continued)

Note

31 December

Financial asets at fair value through other

comprehensive income (Note (i)

Debt securities877,424

Certificates of deposit4,922

Subtotal882,346

Acrued interest6,331

Net balance888,677

Alowances for impairment loses on financial

investments at fair value through other

comprehensive income32(1,968)

Financial asets designated at fair value through

other comprehensive income (Note (i)4,807

Total2,592,906

Notes:

(i) Financial investments at fair value through other comprehensive income:

Note

Costs/Amortised cost

Acumulated fair value change in other

comprehensive income

Fair value

Alowance for impairment loses32

31 December 2023

NoteEquity instruments

Debt securities

instrumentsTotal

Costs/Amortised cost5,421882,343887,764

Acumulated fair value change in other

comprehensive income(614)3(611)

Fair value4,807882,346887,153

Alowance for impairment loses32(1,968)(1,968)

– F-65 –

31 December 2024
1,406,533
29,337
831,313
130,868
2,398,051
65,255
94,032
57,938
11,513
228,738
20,246
2,647,035
(26,165)
2,620,870
43,954
2,319,126
257,790
2,620,870

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2452024 Anual Report

22 Financial investments (continued)

(b) Analysed by location of counterparties

Note

31 December

In Chinese Mainland

— governments1,379,382

— policy banks52,960

— banks and non-bank financial institutions906,935

— corporates90,512

Subtotal2,429,789

Outside Chinese Mainland

— governments80,515

— banks and non-bank financial institutions41,467

— corporates44,182

— public entities3,923

Subtotal170,087

Acrued interest19,335

Total2,619,211

Les: Impairment alowance for financial asets at

amortised cost32(26,305)

Net balance2,592,906

Listed in Hong Kong43,247

Listed outside Hong Kong2,210,432

Unlisted339,227

Total2,592,906

Bonds traded in China’s inter-bank bond market are listed outside Hong Kong.

– F-66 –

31 December 2024
Stage one	Stage two	Stage three	Total
1,077,295	8,921	45,117	1,131,333
12,468	1,290	63	13,821
(1,901)	(1,046)	(23,218)	(26,165)
1,087,862	9,165	21,962	1,118,989
842,850	–	506	843,356
6,401	–	24	6,425
849,251	–	530	849,781
1,937,113	9,165	22,492	1,968,770
(1,787)	–	(771)	(2,558)

31 December 2024
7,009
340
7,349

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited246

22 Financial investments (continued)

Financial asets at amortised costs

Acrued interest

Les: Alowance for impairment loses

Net balance

Financial asets at fair value through

other comprehensive income

Acrued interest

Net balance

Total carying amount of financial

asets afected by credit risk

Alowance for impairment loses of

other debt instruments included in

other comprehensive income(1,787)–(771)(2,558)

31 December 2023

Stage oneStage twoStage threTotal

Financial asets at amortised costs1,046,0065,44747,4461,098,899

Acrued interest12,4554886113,004

Les: Alowance for impairment loses(2,676)(1,361)(22,268)(26,305)

Net balance1,055,7854,57425,2391,085,598

Financial asets at fair value through

other comprehensive income880,873503970882,346

Acrued interest6,292–396,331

Net balance887,1655031,009888,677

Total carying amount of financial

asets afected by credit risk1,942,9505,07726,2481,974,275

Alowance for impairment loses of

other debt instruments included in

other comprehensive income(1,289)(219)(460)(1,968)

23 Investments in asociates and joint ventures

Note

31 December

Investments in joint ventures(a)6,572

Investments in asociates(b)373

Total6,945

– F-67 –

As at or for the year ended 2024
Total assets	Total liabilities	Total net assets	Operating income	Net gain
117,290	108,245	9,045	4,626	652
13,937	12,024	1,913	965	577

Year ended 31 December 2024
5,265
6,572
(137)
13
743
(182)
7,009

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2472024 Anual Report

23 Investments in asociates and joint ventures (continued)

(a) Investment in joint ventures

The details of the joint ventures as at 31 December 2024 were as folows:

Name of company

Form of

busines

structure

Place of

incorporation

Efective

percentage

of shares

Principal

activities

Nominal value of

isued shares

CITIC aiBank Corporation

Limited (“CITIC aiBank”)

(Note (i)

CorporationBeijing65.7%Financial

services

RMB5.634 bilion

JSC Altyn Bank (Note (i)CorporationKazakhstan50.1%Financial

services

KZT7.05 bilion

Notes:

(i) Acording to the articles of asociation of CITIC aiBank, major activities of CITIC aiBank must be decided after the unanimous consent of the

Bank and Fujian Baidu Borui Network Technology Co., Ltd.

(i) Acording to the Articles of Asociation of JSC Altyn Bank, decisions regarding al major activities of JSC Altyn Bank shal be subject to the

joint aproval of the Bank and the other shareholder, the JSC Halyk Bank of Kazakhstan.

Financial statements of the joint ventures are as folow:

Name of Company

CITIC aiBank

JSC Altyn Bank13,93712,0241,913965577

As at or for the year ended 2023

Name of CompanyTotal asets

Total

liabilities

Total net

asets

Operating

incomeNet gain

CITIC aiBank112,511104,1778,3344,534855

JSC Altyn Bank13,84912,0101,839900519

Movement of the Group’s interests in the joint ventures:

Year ended

31 December

Initial investment cost5,265

As at 1 January5,811

Dividend received(110)

Other changes in equity40

Share of net gain of the joint ventures for the year827

Exchange diference4

As at 31 December6,572

– F-68 –

As at or for the year ended 2024
Total assets	Total liabilities	Total net assets	Operating income	Net loss
585	39	546	(14)	(64)
474	35	439	2	(75)

Year ended 31 December 2024
1,058
373
–
(28)
2
(7)
340

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited248

23 Investments in asociates and joint ventures (continued)

(b) Investment in asociates

The Group holds its investment in asociates through subsidiaries and details of the asociates as at 31 December

2024 was as folows:

Name of Company

Form of

busines

structure

Place of

incorporation

Efective

percentage

of shares and

voting right

held by the

Group

Principal

activities

Nominal value of

isued shares

CITIC International Asets

Management Limited

(“CIAM”)

CorporationHong Kong46%Investment

holding

and asets

management

HKD2,218 milion

Tianjin Leasing Asets Trading

Center Co., Ltd. (“Tianjin

Leasing Aset Trading Center”)

CorporationTianjin20%Services and

investment

RMB500 milion

Financial statements of the asociates are as folow:

Name of Company

CIAM

Tianjin Leasing Aset

Trading Center474354392(75)

As at or for the year ended 2023

Name of CompanyTotal asets

Total

liabilities

Total net

asets

Operating

incomeNet los

CIAM63346587(68)(161)

Tianjin Leasing Aset

Trading Center5523451845(10)

Movement of the Group’s interests in asociates:

Year ended

31 December

Initial investment cost1,058

As at 1 January530

Changes in investment in asociates(71)

Share of net (los) of asociates for the year(91)

Other changes in equity(1)

Exchange diference6

As at 31 December373

– F-69 –

31 December 2024
16,570
1,577
102
4,000
5,000
27,249

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2492024 Anual Report

24 Investments in subsidiaries

Notes

31 December

Investment in subsidiaries

— CIFH(i)16,570

— CNCB (Hong Kong) Investment Limited (“CNCB

Investment”)(i)1,577

— Lin’an Rural Bank(i)102

— CFL(iv)4,000

— CITIC Wealth Management CO., LTD. (“CITIC

Wealth”)(v)5,000

Total27,249

Major subsidiaries of the Group as at 31 December 2024 are as folows:

Name of company

Principal place of

busines

Place of

incorporation

Particulars of the isued

and paid up capitalPrincipal activities

% of

ownership

directly

held by the

Bank

The Group’s

efective

interest

CIFH (Note (i)Hong KongHong KongHKD7,503 milionComercial banking and

other financial services

100%100%

CNCB Investment

(Note (i)

Hong KongHong KongHKD1,871 milionInvestment and lending

services

100%100%

Lin’an Rural Bank

(Note (i)

Hangzhou,

Zhejiang

Province

Hangzhou,

Zhejiang

Province

RMB200 milionComercial banking51%51%

CFL (Note (iv)TianjinTianjinRMB4,000 milionFinancial lease operations100%100%

CITIC Wealth (Note (v)ShanghaiShanghaiRMB5,000 milionWealth management100%100%

Notes:

(i) CIFH is an investment holding company registered and headquartered in Hong Kong. Its busines scope through its subsidiaries covers comercial

banking and other financial services. The Bank holds 100% shareholding in CIFH. CIFH holds 75% shareholding in CITIC Bank International Limited

(“CNCBI”).

(i) CNCB (Hong Kong) Investment Limited (CNCB Investment), founded in Hong Kong in 1984, formerly China Investment and Finance Limited,

incorporated and operating in Hong Kong, holds a money lending licence isued by the Hong Kong Monetary Authority; and also the No.1, 4, 6 and

9 licenses from Hong Kong Securities Regulatory Comision through its wholy owned subsidiary CNCB (Hong Kong) Capital Limited. The busines

scope of CNCB Investment includes investment banking, capital market investment, lending and other related services.

(i) Lin’an Rural Bank was founded in Zhejiang Province of Mainland China in 2011 with a registered capital of RMB200 milion. Its principal activities are

comercial banking and related busineses. The Bank holds 51% of Lin’an Rural Bank’s shares and voting rights.

(iv) The Bank established CFL in 2015 with a registered capital of RMB4 bilion. Its principal busines activity is financial leasing. The Bank holds 100%

of its shares and voting rights.

(v) CITIC Wealth was established in 2020 with a registered capital of RMB5 bilion. Its principal busines operation is wealth management. The Bank holds

100% of its shares and voting rights.

– F-70 –

Year ended 31 December 2024
528
4
27
19
578

Buildings	Construction in progress	Computer equipment and others	Total
34,036	3,147	20,505	57,688
2,928	–	11,460	14,388
(107)	(2,374)	(1,657)	(4,138)
17	–	87	104
36,874	773	30,395	68,042
(9,398)	–	(9,981)	(19,379)
(1,110)	–	(2,325)	(3,435)
79	–	1,245	1,324
(11)	–	(25)	(36)
(10,440)	–	(11,086)	(21,526)
24,638	3,147	10,524	38,309
26,434	773	19,309	46,516

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited250

25 Investment properties

Year ended

31 December

Fair value as at 1 January516

Change in fair value(1)

Transfers–

Exchange diference13

Fair value as at 31 December528

Investment properties of the Group are buildings held by subsidiaries and mainly located in Hong Kong and leased to

third parties through operating leases. There are active real estate markets where the investment properties are located

and the Group is able to obtain market price and related information of similar properties, and therefore makes

estimation about the fair value of the investment properties as at 31 December 2024.

Al investment properties of the Group were revalued at 31 December 2024 by an independent firm of surveyors on

an open market value basis. The fair value is in line with the definition of “IFRS13 – Fair value measurement”. The

revaluation surplus has ben recognized in the profit or los for the curent year.

The investment properties of the Group are categorised into Level 3.

26 Property, plant and equipment

Cost or demed cost:

As at 1 January 2024

Aditions

Disposals/Transfers

Exchange diferences

As at 31 December 2024

Acumulated depreciation:

As at 1 January 2024

Depreciation charges

Disposals/Transfers

Exchange diferences

As at 31 December 2024

Net carying value:

As at 1 January 2024

As at 31 December 2024 (Note (i)26,43477319,30946,516

– F-71 –

Buildings	Land use right	Equipment	Vehicles and others	Total
20,132	1,221	72	73	21,498
3,682	–	2	11	3,695
(2,379)	–	(8)	(6)	(2,393)
34	–	–	–	34
21,469	1,221	66	78	22,834
(10,356)	(389)	(70)	(40)	(10,855)
(3,194)	(30)	(2)	(13)	(3,239)
2,291	–	8	5	2,304
(9)	–	–	–	(9)
(11,268)	(419)	(64)	(48)	(11,799)
9,776	832	2	33	10,643
10,201	802	2	30	11,035

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2512024 Anual Report

26 Property, plant and equipment (continued)

Buildings

Construction

in progres

Computer

equipment

and othersTotal

Cost or demed cost:

As at 1 January 202333,9392,93014,51251,381

Aditions872176,5766,880

Disposals(3)–(606)(609)

Exchange diferences13–2336

As at 31 December 202334,0363,14720,50557,688

Acumulated depreciation:

As at 1 January 2023(8,336)–(8,615)(16,951)

Depreciation charges(1,056)–(1,859)(2,915)

Disposals2–512514

Exchange diferences(8)–(19)(27)

As at 31 December 2023(9,398)–(9,981)(19,379)

Net carying value:

As at 1 January 202325,6032,9305,89734,430

As at 31 December 2023 (Note (i)24,6383,14710,52438,309

Note:

(i) As at 31 December 2024, the registration of certain buildings acquired has not ben completed, and the net bok value of such buildings was aproximately

RMB10,411 milion (as at 31 December 2023: RMB10,735 milion). The Group believes the incomplete registration does not afect the rights of the

Group as the legal sucesor to these buildings.

27 Right-of-use asets

Cost or demed cost:

As at 1 January 2024

Aditions

Disposals

Exchange diferences

As at 31 December 2024

Acumulated depreciation:

As at 1 January 2024

Acrual

Disposals

Exchange diferences

As at 31 December 2024

Net carying value:

As at 1 January 2024

As at 31 December 202410,20180223011,035

– F-72 –

Year ended 31 December 2024
926
33
959

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited252

27 Right-of-use asets (continued)

Buildings

Land use

rightEquipment

Vehicles and

othersTotal

Cost or demed cost:

As at 1 January 202319,2361,221835820,598

Aditions3,088–2213,111

Disposals(2,232)–(13)(6)(2,251)

Exchange diferences40–40

As at 31 December 202320,1321,221727321,498

Acumulated depreciation:

As at 1 January 2023(9,315)(359)(68)(32)(9,774)

Acrual(3,200)(30)(13)(13)(3,256)

Disposals2,181–1152,197

Exchange diferences(22)–(22)

As at 31 December 2023(10,356)(389)(70)(40)(10,855)

Net carying value:

As at 1 January 20239,921862152610,824

As at 31 December 20239,77683223310,643

As at 31 December 2024, the balance of the Group’s lease liabilities amounted to RMB10,861 milion (31 December

2023: RMB10,245 milion), including RMB2,912 milion of lease liabilities that wil mature within a year (31 December

2023: RMB2,944 milion).

As at 31 December 2024, lease payments of the Group’s lease contracts signed but to be executed amounted to RMB573

milion (31 December 2023: RMB27 milion).

For the year ended 31 December 2024, the lease expense of short-term leases with a lease term of no more than 12

months and leases of asets with low values amounted to RMB411 milion (for the year ended 31 December 2023:

RMB209 milion).

28 Intangible asets

The Group’s intangible asets mainly include computer software and data resources. As of December 31, 2024, in

acordance with the Notice on Promulgation of the Interim Provisions on Acounting Treatment for Enterprise Data

Resources isued by the Ministry of Finance, the original value of data resources recognized as intangible asets was

RMB5.79 milion, the acumulated amortization was RMB0.85 milion, and the net carying amount was RMB4.94

milion.

29 Godwil

Year ended

31 December

As at 1 January903

Exchange diference23

As at 31 December926

Based on the result of impairment test, no impairment loses on godwil were recognized as at 31 December 2024

(31 December 2023: Nil).

– F-73 –

31 December 2024
54,130
(39)
54,091

31 December 2024
Deductible/ (taxable) temporary differences	Deferred tax assets/ (liabilities)
221,382	55,261
(26,237)	(6,585)
15,830	3,957
5,817	1,497
216,792	54,130
(58)	(14)
(158)	(25)
(216)	(39)
216,576	54,091

Allowance for impairment losses	Fair value adjustments	Employee retirement benefits and accrued staff cost	Others	Total deferred tax
49,423	(2,540)	4,394	1,202	52,479
5,833	(630)	(437)	299	5,065
–	(3,434)	–	(26)	(3,460)
5	5	–	(3)	7
55,261	(6,599)	3,957	1,472	54,091

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2532024 Anual Report

30 Defered tax asets/(liabilities)

31 December

Defered tax asets52,480

Defered tax liabilities(1)

Net52,479

(a) Analysed by nature and jurisdiction

31 December 2023

Deductible/

(taxable)

temporary

diferences

Defered

tax asets/

(liabilities)

Defered tax asets

— alowance for impairment loses198,15049,423

— fair value adjustments(9,859)(2,539)

— employe retirement benefits and

salaries payable17,5764,394

— others4,6651,202

Subtotal210,53252,480

Defered tax liabilities

— fair value adjustments(5)(1)

— others(2)–

Subtotal(7)(1)

Total210,52552,479

(b) Ofseting of defered tax asets and defered tax liabilities

As at 31 December 2024, the defered tax asets/liabilities ofset by the Group were RMB9,277 milion (31

December 2023: RMB5,442 milion).

As at 1 January 2024

Recognized in profit or los

Recognized in other

comprehensive income

Exchange diferences

As at 31 December 202455,261(6,599)3,9571,47254,091

As at 1 January 202350,766152,9241,30355,008

Recognized in profit or los(1,350)(1,010)1,470(99)(989)

Recognized in other

comprehensive income–(1,551)–(1,551)

Exchange diferences76–(2)11

As at 31 December 202349,423(2,540)4,3941,20252,479

– F-74 –

31 December 2024
21,439
11,582
7,692
6,807
6,545
6,353
1,552
1,154
1,047
14
12,548
76,733

31 December 2024
2,284
2
2,286
(1,132)
1,154

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited254

31 Other asets

Notes

31 December

Advanced payments and setlement acounts12,794

Asets with continuing involvement11,654

Precious metal leasing8,525

Fe and comision receivables6,478

Interest receivables(i)5,899

Prepayments for properties and equipment3,820

Other receivables1,354

Reposesed asets(i)1,231

Leasehold improvements938

Prepaid rent19

Others(i)12,309

Total65,021

Notes:

(i) Interest receivable

Interest receivable represents interest on financial instruments due and receivable but not yet received as at the balance shet date and is stated net of

coresponding impairment alowances. The impairment alowance on the Group’s interest receivable is RMB7,019 milion (as at 31 December 2023:

RMB6,633 milion).

(i) Reposesed asets

31 December

Premises2,367

Others2

Gros balance2,369

Les: Alowance for impairment loses(1,138)

Net balance1,231

As at 31 December 2024, the Group intended to dispose al the reposesed asets and had no plan to transfer the reposesed asets for own use (as at 31

December 2023: Nil).

(i) Others

Others include Defered expenses, temporary legal fes, advances for cases and risk events, etc.

– F-75 –

Year ended 31 December 2024
As at 1 January	Charge/ (Reversal) for the year	Write-offs/ transfer out	Others	As at 31 December
As at 1 January	Charge/ (Reversal) for the year	Write-offs/ transfer out	Notes (i)
56	–	–	–	56
143	42	–	–	185
99	(12)	–	–	87
134,517	52,699	(60,724)	12,748	139,240
26,239	3,104	(3,205)	(30)	26,108
1,968	735	(160)	15	2,558
11,069	5,564	(5,848)	1,288	12,073
10,520	(1,087)	(41)	329	9,721
184,611	61,045	(69,978)	14,350	190,028
1,138	68	(74)	–	1,132
1,138	68	(74)	–	1,132

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2552024 Anual Report

32 Movements of alowance for impairment loses

Notes

Alowance for credit impairment loses

Deposits with bank and non-bank

financial institutions17

Placements with and loans to banks and

non-bank financial institutions18

Financial asets held under resale

agrements20

Loans and advances to customers21

Financial investments

— at amortised cost22

— at fair value through other

comprehensive income22

Other financial asets and acrued

interest

Of balance shet credit asets40

Subtotal

Alowance for impairment loses on

other asets

Other asets – reposesed asets

Subtotal1,13868(74)–1,132

Year ended 31 December 2023

Notes

As at 1

January

Charge/

(Reversal)

for the year

Write-ofs/

transfer outOthers

As at 31

December

Notes (i)

Alowance for credit impairment loses

Deposits with bank and non-bank

financial institutions1798(43)–156

Placements with and loans to banks and

non-bank financial institutions181401–2143

Financial asets held under resale

agrements20–99–99

Loans and advances to customers21131,20249,840(60,054)13,529134,517

Financial investments

— at amortised cost2228,5282,282(4,620)4926,239

— at fair value through other

comprehensive income222,717223(1,009)371,968

Other financial asets and acrued

interest7,3497,970(5,076)82611,069

Of balance shet credit asets408,9571,554–910,520

Subtotal178,99161,926(70,759)14,453184,611

Alowance for impairment loses on

other asets

Other asets – reposesed asets1,250278(395)51,138

Subtotal1,250278(395)51,138

– F-76 –

31 December 2024
343,795
616,466
960,261
5,661
238
5,899
2,332
968,492

31 December 2024
69,555
69,555
18,707
271
18,978
17
88,550

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited256

32 Movements of alowance for impairment loses (continued)

The impairment loses of acrued interest of the financial instruments in this table and its changes are included in

“Other financial asets and acrued interest”.

Notes:

(i) Others include recovery of loans writen of, and efect of exchange diferences during the year.

33 Deposits from banks and non-bank financial institutions

Analysed by types and locations of counterparties

31 December

In Mainland China

— banks265,621

— non-bank financial institutions648,556

Subtotal914,177

Outside Mainland China

— banks9,692

— non-bank financial institutions260

Subtotal9,952

Acrued interest3,758

Total927,887

34 Placements from banks and non-bank financial institutions

Analysed by types and locations of counterparties

31 December

In Mainland China

— banks64,848

Subtotal64,848

Outside Mainland China

— banks21,264

— non-bank financial institutions50

Subtotal21,314

Acrued interest165

Total86,327

– F-77 –

31 December 2024
196,732
66,474
263,206
14,561
–
14,561
236
278,003

31 December 2024
201,035
76,732
236
278,003

31 December 2024
1,986,104
439,965
2,426,069
2,062,315
1,221,680
3,283,995
68,167
86,080
5,864,311

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2572024 Anual Report

35 Financial asets sold under repurchase agrements

(a) Analysed by type and location of counterparties

31 December

In Mainland China

— PBOC391,152

— Banks51,190

Subtotal442,342

Outside Mainland China

— Banks19,790

— Non-bank financial institutions693

Subtotal20,483

Acrued interest193

Total463,018

(b) Analysed by type of colateral

31 December

Debt securities369,613

Discounted bils93,212

Acrued interest193

Total463,018

The Group did not derecognize financial asets transfered as colateral in conection with financial asets sold

under repurchase agrements. As at 31 December 2024, no legal title of the colateral has ben transfered to

counterparties. The above information of colateral is included in the Note 52.

36 Deposits from customers

Analysed by nature

31 December

Demand deposits

— corporate customers2,168,251

— personal customers340,432

Subtotal2,508,683

Time and cal deposits

— corporate customers1,745,094

— personal customers1,125,384

Subtotal2,870,478

Outward remitance and remitance payables19,022

Acrued interest69,474

Total5,467,657

– F-78 –

31 December 2024
465,609
21,411
43,450
30,284
560,754

Year ended 31 December 2024
As at 1 January	Additions during the year	Reductions during the year	As at 31 December
21,238	28,000	(30,147)	19,091
10	2,208	(2,208)	10
3	1,571	(1,569)	5
7	2,179	(2,179)	7
952	915	(788)	1,079
18	4,490	(4,490)	18
17	–	–	17
175	321	(405)	91
22,420	39,684	(41,786)	20,318

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited258

36 Deposits from customers (continued)

Analysed by nature (continued)

Guarante deposits included in above deposits:

31 December

Bank aceptances407,634

Guarantes21,005

Leters of credit23,736

Others38,651

Total491,026

37 Acrued staf costs

Notes

Salaries and bonuses

Social insurance

Welfare expenses

Housing fund

Labor union expenses and employe

education expenses

Post-employment benefits

— defined contribution plans(a)

Post-employment benefits

— defined benefit plans(b)

Other benefits

Total22,42039,684(41,786)20,318

Year ended 31 December 2023

Notes

As at

1 January

Aditions

during the

year

Reductions

during the

year

As at

31 December

Salaries and bonuses20,64328,100(27,505)21,238

Social insurance151,565(1,570)10

Welfare expenses41,318(1,319)3

Housing fund101,982(1,985)7

Labor union expenses and employe

education expenses988786(822)952

Post-employment benefits

— defined contribution plans(a)183,990(3,990)18

Post-employment benefits

— defined benefit plans(b)18–(1)17

Other benefits209342(376)175

Total21,90538,083(37,568)22,420

– F-79 –

31 December 2024
1.75%
5.00%
Male: 60 years old Female: 55 years old
5.00%

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2592024 Anual Report

37 Acrued staf costs (continued)

(a) Post-employment benefits – defined contribution plans

Post-employment benefits defined contribution plans include contributions to statutory retirement plan. Pursuant to the relevant laws and regulations in the

PRC governing labor and social security, the Group has joined statutory retirement plan for the employes as set out by city and provincial governments.

The Group is required to make contributions based on defined ratios of the salaries, bonuses and certain alowance of the employes to the statutory

retirement plan under the administration of the government.

In adition to the above statutory retirement plan, the Bank’s qualified employes have joined a defined contribution retirement scheme (the “Scheme”)

which was established by the Group and managed by CITIC Group. For year ended 31 December 2024, the Bank has made anuity contributions at 8%

(31 December 2023: 7%) of its employes’ gros wages. For year ended 31 December 2024, the Bank made anuity contribution amounted to RMB1,855

milion (year ended 31 December 2023: RMB1,690 milion).

The Group operates a defined contribution provident fund and a Mandatory Provident Fund scheme for Hong Kong staf. Contributions are charged to

profit or los when the contribution fal due.

(b) Post-employment benefits – defined benefit plans

The Group ofers suplementary retirement benefits for certain of its qualified employes in Mainland China. Retired employes are eligible to join this

suplementary retirement plan. The amount that is recognized as at reporting date presents the discounted value of future obligation.

The present value of the Group’s suplementary retirement plan obligations on the date of balance shet is calculated through projected unit credit method

and computed by a qualified profesional actuary firm Towers Watson Consulting (Shenzhen) Ltd. Beijing Branch.

The primary asumptions used by the actuary are as folows

31 December

Discount rate2.50%

Anual withdrawal rate5.00%

Normal retirement ageMale: 60 years old

Female: 55 years old

Anual increase rate of social average wage and salary for curent active employes5.00%

Mortality rateDetermined by the China Life Insurance Mortality Table

In 2023 and 2024, the change amount of suplementary retirement benefits scheme liabilities incured by the actuarial asumptions variations ilustrated

above was imaterial.

Except for the aforementioned contributions, the Group has no other material obligation for payment of retirement benefits.

(c) The salaries, bonuses, alowances and subsidies, retirement benefits and other social insurance payable to employes are paid in acordance with relevant

laws and regulations within time limit stipulated by the Group.

– F-80 –

31 December 2024
3,297
3,708
640
7,645

31 December 2024
207,454
69,992
3,628
1,460
930,954
7,034
3,516
1,224,038

31 December 2024 Nominal Value
RMB
–
2,554
–
–
30,000
30,000
10,000
30,000
–
10,000
1,335
2,190
40,000
700
20,000
25,000
5,000
700
207,479
(25)
–
207,454

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited260

38 Taxes payable

31 December

Income tax368

VAT and surcharges3,448

Others720

Total4,536

39 Debt securities isued

Notes

31 December

Long-term debt securities isued(a)138,311

Subordinated bonds isued:

— by the Bank(b)69,995

— by CNCBI(c)7,086

Certificates of deposit isued(d)1,418

Certificates of interbank deposit isued(e)705,273

Convertible corporate bonds(f)39,794

Acrued interest4,104

Total965,981

(a) Long-term debt securities isued by the Group as at 31 December 2024:

Bond TypeIsue DateMaturity Date

Anual Interest

Rate

31 December

Nominal

Value

RMB

Fixed rate bond2 February 20212 February 20240.875%1,418

Fixed rate bond2 February 20212 February 20261.250%2,482

Fixed rate bond10 June 202110 June 20243.190%20,000

Fixed rate bond17 November 202117 November 20241.750%3,546

Fixed rate bond28 April 202228 April 20252.800%30,000

Fixed rate bond5 August 20225 August 20252.500%30,000

Fixed rate bond27 March 202327 March 20262.790%10,000

Fixed rate bond13 April 202313 April 20262.770%30,000

Fixed rate bond26 April 202326 April 20243.900%1,800

Fixed rate bond16 May 202316 May 20262.680%10,000

Fixed rate bond22 April 202417 April 20253.400%–

Floating rate bond2 July 20249 July 2027SOFR +0.550%–

Fixed rate bond12 July 202412 July 20272.100%–

Fixed rate bond8 August 20246 August 20253.200%–

Fixed rate bond9 August 20249 August 20271.810%–

Fixed rate bond7 November 20247 November 20272.060%–

Fixed rate bond10 December 202410 September 20273.100%–

Total nominal value139,246

Les: Unamortised

isuance cost(20)

Les: ofset(915)

Carying value138,311

– F-81 –

31 December 2024
39,996
21,496
8,500
69,992

31 December 2024
–
3,628
3,628

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2612024 Anual Report

39 Debt securities isued (continued)

(b) The carying value of the Bank’s subordinated bonds isued:

Notes

31 December

Subordinated fixed rate bonds maturing:

— in August 2030(i)39,995

— in December 2033(i)21,500

— in December 2038(i)8,500

Total69,995

Notes:

(i) The Bank isued fixed-rate subordinated bonds on 14 August 2020 with a coupon rate of 3.87% per anum. The Bank has the option to redem

the bonds on 14 August 2025. If the Bank does not exercise this option, the coupon rate wil remain 3.87% per anum for the next five years.

(i) The Bank isued fixed-rate subordinated bonds on 19 December 2023 with a coupon rate of 3.19% per anum. The Bank has the option to

redem the bonds on 19 December 2028. If the Bank does not exercise this option, the coupon rate wil remain 3.19% per anum for the next

five years.

(i) The Bank isued fixed-rate subordinated bonds on 19 December 2023 with a coupon rate of 3.25% per anum. The Bank has the option to

redem the bonds on 19 December 2033. If the Bank does not exercise this option, the coupon rate wil remain 3.25% per anum for the next

five years.

Notes

31 December

Subordinated fixed rate notes maturing:

— in February 2029(i)3,543

— in December 2033(i)3,543

Total7,086

Notes:

(i) CNCBI isued USD500 milion subordinated notes at a coupon rate of 4.625% per anum on 28 February 2019. CNCBI redemed the notes

on 28 February 2024.

(i) CNCBI isued USD500 milion subordinated notes at a coupon rate of 6.00% per anum on 5 December 2023. CNCBI has an option to redem

these notes on each coupon payment date on and after 5 December 2028. If CNCBI does not exercise the redemption option, the coupon rate

per anum wil be the 5-year US treasury bond rate on 5 December 2028, plus 1.65%. The notes are listed on the Hong Kong Stock Exchange.

– F-82 –

Liability	Equity	Total
36,859	3,141	40,000
(74)	(6)	(80)
36,785	3,135	39,920
3,215	–	3,215
(206)	(16)	(222)
39,794	3,119	42,913
–	–	–
(32,760)	(2,568)	(35,328)
7,034	551	7,585

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited262

39 Debt securities isued (continued)

(d) These certificates of deposit were isued by CNCBI with interest rate ranging from 4.65% to 4.87% per anum.

(e) As at 31 December 2024, the Bank’s outstanding large transferable certificates of interbank deposits amounted

to RMB930,759 milion (31 December 2023: RMB705,273 milion), with reference yields ranging from 1.55%

to 2.46% per anum (31 December 2023: 2.16% to 2.75%). Their original expiry terms range from one months

to one year.

(f) As aproved by the relevant regulatory authorities in China, the Bank made a public ofering of RMB40 bilion

A-shares convertible corporate bonds on 4 March 2019. The convertible corporate bonds have a term of six

years from 4 March 2019 to 3 March 2025, at coupon rates of 0.3% for the first year, 0.8% for the second

year, 1.5% for the third year, 2.3% for the fourth year, 3.2% for the fifth year and 4.0% for the sixth year.

The conversion of these convertible corporate bonds begins on the first trading day (11 September 2019) after

six months upon the completion date of the ofering, until the maturity date (3 March 2025).

In acordance with formulas set out in the prospectus of the convertible corporate bonds, the initial conversion

price of the convertible corporate bonds is RMB7.45 per share, and the price of the convertible corporate bonds

wil be adjusted to reflect the dilutive impact of cash dividends and increase in paid-in capital under specified

circumstances. On 11 December 2024, the conversion price of the convertible corporate bonds has ben adjusted

to RMB5.59 per share. During the conversion period (from 4 March 2019 to 3 March 2025), if the closing price

of the Bank’s A shares is lower than 80% of the curent conversion price for at least 15 trading days in any 30

consecutive trading days, the Board of Directors of the Bank has the right to propose to lower the conversion

price and submit the proposal to the shareholders’ meting for deliberation.

These convertible corporate bonds are subject to conditional redemptions. During their conversion period, if the

closing prices of the Bank’s A-shares are no les than 130% (inclusive) of the curent conversion price for at least

15 trading days in 30 consecutive trading days, the Bank has the right to redem al or part of the outstanding

convertible corporate bonds at their par value plus the curent acrued interest, upon aproval of the relevant

regulatory authorities (if required). In adition, when the total amount of the outstanding convertible corporate

bonds is les than RMB30 milion, the Bank has the right to redem al outstanding convertible corporate bonds

at their par value plus the curent acrued interest.

As at 31 December 2024, convertible corporate bonds of RMB32,965.98 milion were converted to 5,462,217,208

A shares.

Isued nominal value of convertible corporate

bonds

Direct isuance expenses

Balance at the isuance date

Acumulated amortisation as at

1 January 2024

Acumulated conversion amount as at

1 January 2024

Balance as at 1 January 2024

Amortisation during this year

Conversion amount during this year

Balance as at 31 December 20247,0345517,585

– F-83 –

31 December 2024
9,721
269
9,990

Year ended 31 December 2024
326
(19)
(38)
269

31 December 2024
11,711
11,582
5,628
3,823
2,523
2,409
814
279
7,309
46,078

31 December 2024
39,515
14,882
54,397

Year ended 31 December 2024
48,967
5,430
54,397

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2632024 Anual Report

40 Provisions

31 December

Alowance for impairment loses on of balance shet items10,520

Litigation provisions326

Total10,846

The movement of of-balance shet alowance for impairment loses is included in the Note 32.

Movement of provisions:

Year ended

31 December

As at 1 January779

(Reversal)/Charge8

Payment(461)

As at 31 December326

41 Other liabilities

31 December

Setlement and clearing acounts14,561

Continuing involvement liabilities11,654

Other payables4,401

Advances and defered expenses3,839

Dividends payables–

Payment and colection acounts2,243

Leasing deposits514

Acrued expenses329

Others4,686

Total42,227

42 Share capital

Number of shares and

Nominal Value (milions)

31 December

Ordinary shares

Registered, isued and fuly paid:

A-Share34,085

H-Share14,882

Total48,967

Note

Year ended

31 December

As at 1 January48,935

Convertible bond setlement(i)32

As at 31 December48,967

Note:

(i) For the year ended 31 December 2024, convertible corporate bonds of RMB32,759,741,000 were converted to 5,430,147,827 A-shares (In 2023, convertible

corporate bonds of RMB205,904,000 were converted to 32,022,297 A-shares).

– F-84 –

31 December 2024
34,955
69,993
551
105,499

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited264

43 Other equity instruments

31 December

Preference shares (Note (i)34,955

Perpetual bonds (Note (i)79,986

Equity of convertible corporate bonds (Note 39(f)3,119

Total118,060

(i) Preference shares

Financial

instruments

in isueDividend rate

Isued price

(RMB)

Isued

number of

shares (RMB

milions)

Isued

nominal

value (RMB

milions)

Maturity

DateConversions

Preference

3.80% per anum for the first

five years after isuance, and

re-priced every five years

10035035,000No maturity

date

conversion

during the

year

35,000 milion preference shares of RMB100 each were isued in October 2016, with a dividend rate of 3.80%

per anum for the first five years from isuance, to no more than 200 qualified investors, pursuant to the aproval

by its ordinary shareholders’ meting and relevant regulatory authorities.

The carying amount of preference shares, net of direct isuance expenses, was RMB34,955 milion. Al the

proceds received is used to replenish Other Tier-One capital in order to increase the Bank’s Tier-One capital

adequacy ratio (Note 56). Dividends are non-cumulative and where payable are paid anualy. Dividend rate

wil be re-priced every five years thereafter with reference to the five-year PRC treasury bonds yield plus a fixed

premium of 1.30%. During the second dividend period begining from 26 October 2021, the base rate and

fixed premium is 2.78% and 1.30%, respectively, and the coupon rate is 4.08%. The dividend is paid anualy.

As authorised by the ordinary shareholders’ Anual General Meting, the Board of Directors has the sole discretion

to declare and distribute dividends on preference shares. The Bank shal not distribute any dividends to its ordinary

shareholders before it declares such dividends to preference shareholders for the relevant period. The distribution

of preference shares dividend is at the Bank’s discretion and is non-cumulative. Preference shareholders are not

entitled to participate in the distribution of retained profits except for the dividends stated above.

The Bank has redemption option when specified conditions as stipulated in the ofering documents of preference

shares are met, subject to regulatory aproval, whereas preference shareholders have no right to require the Bank

to redem the preference shares.

Upon ocurence of the trigering events as stipulated in the ofering documents of and subject to regulatory

aproval, preference shares shal be mandatorily converted into ordinary A shares of the Bank at the conversion

price of RMB7.07 per share, partialy or entirely. The conversion price of the preference shares wil be adjusted

where certain events ocur including bonus isues, rights isue, capitalisation of reserves and new isuances of

ordinary shares below market price, subject to terms and formulae provided for in the ofering documents, to

maintain the relative interests betwen preference shareholders and ordinary shareholders.

These preference shares are clasified as equity instruments and presented as equity in the consolidated anual

statement of financial position; and are qualified as Aditional Tier-One capital Instruments in acordance with

the NFRA requirements.

– F-85 –

31 December 2024
789,264
683,765
105,499
4,788
18,101
10,411
7,690

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2652024 Anual Report

43 Other equity instruments (continued)

(i) Perpetual bonds

The Bank isued RMB40 bilion write-down undated capital bonds (the “Bonds”) in the domestic interbank

bond market on 11 December 2019. The Bonds has ben redemed in 11 December 2024.

On 26 April 2021, the Bank isued RMB40 bilion write-down undated capital bonds (the “Bonds”) in the

domestic interbank bond market. The denomination of these Bonds is RMB100 each, and the anual coupon

rate of the Bonds for the first 5 years is 4.20%, reseting every 5 years.

On 26 April 2024, the Bank isued RMB30 bilion write-down undated capital bonds (the “Bonds”) in the

domestic interbank bond market. The denomination of these Bonds is RMB100 each, and the anual coupon

rate of the Bonds for the first 5 years is 2.42%, reseting every 5 years.

The duration of these Bonds is the same as the continuing operation of the Bank. Subject to the satisfaction

of the redemption conditions and having obtained the prior aproval of the NFRA, the Bank may redem the

Bonds in whole or in part on each distribution payment date 5 years after the isuance date of the Bonds. Upon

the ocurence of a triger event for write-downs, with the consent of the NFRA and without the consent of

the bondholders, the Bank has the right to write down al or part of the above Bonds isued and existing at

that time in acordance with the total par value. The claims of the holders of the Bonds wil be subordinated

to the claims of depositors, general creditors and subordinated creditors; and shal rank in priority to the claims

of shareholders and wil rank pari pasu with the claims under any other aditional tier 1 capital instruments

of the Bank that rank pari pasu with the Bonds.

The Bonds are paid by non-cumulative interest. The Bank shal have the right to cancel distributions on the

Bonds in whole or in part and such cancelation shal not constitute a default. The Bank may at its discretion

utilize the proceds from the canceled distribution to met other obligations of maturing debts. But the Bank

shal not distribute profits to ordinary shareholders until the resumption of ful interest payment.

These perpetual bonds are clasified as equity instruments, and presented as equity in the consolidated statement

of financial position; and are qualified as Aditional Tier-One Capital Instruments in acordance with the

NFRA requirements.

Interests atributable to equity instruments’ holder:

31 December

Total equity atributable to equity holders of the Bank717,222

Equity atributable to ordinary equity holders of the Bank599,162

Equity atributable to other equity instruments holders of the

Bank118,060

— Dividend distribution for the year4,788

Total equity atributable to non-controling interests17,453

Equity atribute to non-controling interests of ordinary shares9,763

Equity atributable to non-controling interests of other equity

instruments7,690

During the year ended 31 December 2024, RMB1,428 milion was paid to preference shareholders (2023:

RMB1,428 milion), RMB3,360 milion was paid to holders of perpetual bonds (2023: RMB3,360 milion).

– F-86 –

31 December 2024
88,969
317
89,286

Year ended 31 December 2024
60,992
6,637
67,629

Year ended 31 December 2024
105,127
6,596
111,723

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited266

44 Capital reserves

31 December

Share premium59,083

Other reserves317

Total59,400

45 Other comprehensive income

Other comprehensive income comprises items that wil not be reclasified subsequently to profit or los, such as net

changes on the measurement of defined benefit plans (Note 37) and fair value changes on financial investments designated

at fair value through other comprehensive income, and items that may be reclasified subsequently to profit or los,

such as fair value changes on financial asets at fair value through other comprehensive income, credit impairment

alowance on financial asets at fair value through other comprehensive income and exchange diferences on translation.

46 Surplus reserve

Year ended

31 December

As at 1 January54,727

Apropriations6,265

As at 31 December60,992

Under the relevant PRC Laws, the Bank and the Bank’s subsidiaries in Mainland China are required to apropriate 10%

of its profit for the year, as determined under regulations isued by the regulatory bodies of the PRC, to the statutory

surplus reserve until the reserve balance reaches 50% of the registered capital. After making the apropriation to the

statutory surplus reserve, the Bank may also apropriate its profit for the year to the discretionary surplus reserve upon

aproval by ordinary shareholders at the Anual General Meting. The Bank makes its apropriation on an anual basis.

Subject to the aproval of ordinary shareholders, statutory surplus reserves may be used for replenishing acumulated

loses, if any, and may be converted into share capital, provided that the balance of statutory surplus reserve after such

capitalisation is not les than 25% of the registered capital before the proces.

47 General reserve

Year ended

31 December

As at 1 January100,580

Apropriations4,547

As at 31 December105,127

Pursuant to relevant Ministry of Finance (“MOF”) notices, the Bank and the Group’s banking subsidiaries in Mainland

China are required to set aside a general reserve to cover potential loses against their asets. The Bank and the Group

make its apropriation on an anual basis.

CITIC Wealth shal draw operational risk reserves on a monthly basis acording to the Administrative Measures for

Financial Subsidiaries of Comercial Banks. CNCBI Macau shal draw down its regulatory reserves on a monthly

basis acording to the requirements of the Monetary Authority of Macau, China CITIC Bank International shal

draw operational risk reserves acording to the requirements of the Administrative Measures for Financial Subsidiaries

of General reserve. During the year ended 31 December 2024, a total of RMB3,455 milion of coresponding risk

provisions was drawn by CIFH and CITIC Wealth (During the year ended 31 December 2024: RMB3,152 milion).

– F-87 –

Year ended 31 December 2024
6,637
6,596
13,233

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2672024 Anual Report

48 Profit apropriations and retained earnings

(a) Profit apropriations and distributions other than dividends declared during the year

Note

Year ended

31 December

Apropriations to

— surplus reserve466,265

— general reserve474,547

Total10,812

The Bank apropriated RMB6,637 milion to statutory surplus reserve fund for the year of 2024, and apropriated

RMB6,596 milion to general reserve. The Group’s subsidiary, Lin’an rural bank, made apropriations to general

reserve in acordance with relevant regulatory requirements.

(b) In acordance with the resolution aproved in the Anual General Meting of the Bank on 20 June 2024, a total

amount of aproximately RMB17,432 milion (RMB3.56 per 10 shares) were distributed in the form of cash

dividend to the ordinary shareholders. In acordance with the resolution aproved in the Second Extraordinary

Shareholder’s Meting of the Bank on 20 November 2024, a total amount of aproximately RMB9,874

milion(RMB1.825 per 10 shares) were distributed in the form of cash dividend to the ordinary shareholders.

the year 2024. Subject to the aproval of the ordinary shareholders at the Anual General Meting, aproximately

RMB9,582 milion wil be payable to those on the register of ordinary shareholders as at the relevant record

date. This proposal is a non-adjusting event after the reporting period and has not ben recognized as liability

as at 31 December 2024.

(d) On 11 December 2019, the Bank isued RMB40 bilion write-down undated capital bonds in the domestic

interbank bond market. The Bank paid RMB1,680 milion in interest at a coupon rate of 4.20% to investors

of perpetual bonds on 11 December 2024; On 26 April 2021, the Bank isued RMB40 bilion write-down

undated capital bonds in the domestic interbank bond market. The Bank paid RMB1,680 milion in interest

at a coupon rate of 4.20% to investors of perpetual bonds on 26 April 2024.

(e) In acordance with the resolution aproved in the Board of Directors Meting of the Bank on 28 August 2024,

a total amount of aproximately RMB1,428milion (calculated by the Bank using the agred dividend rate of

4.08% with RMB4.08 per share) were distributed in the form of cash dividend to the preference shareholders

on 28 October 2024.

(f) As at 31 December 2024, the retained earnings included the statutory surplus reserves of certain subsidiaries

of RMB1,517 milion (31 December 2023: RMB1,167 milion). Such statutory surplus reserves canot be

distributed.

– F-88 –

31 December 2024
4,737
6,803
93,287
99,734
58,218
258,042
262,779

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited268

49 Non-controling interests

As at 31 December 2024, non-controling interests included ordinary shares held by non-controling interest in

subsidiaries and other equity instrument holders’ interests. Other equity instrument holders’ interest amounted to

RMB7,690 milion (31 December 2023: RMB7,690 milion) representing other equity instruments isued by CNCBI

on 29 July 2021 and 22 April 2022, an entity ultimately controled by the Group. Such instruments are perpetual

non-cumulative subordinated aditional Tier-One capital securities (the “Capital Securities”).

Financial

instruments

in isueIsue DateNominal ValueFirst Cal DateCoupon Rate

Payment

Frequency

Capital

Securities

29 July 2021USD600 milion29 July 20263.25% per anum for the first five

years after isuance, and re-

priced every five years to a rate

equivalent to the five-year US

Treasury rate plus 2.53% per

anum

Semi-anualy

Capital

Securities

22 April 2022USD600 milion22 April 20274.80% per anum for the first five

years after isuance, and re-

priced every five years to a rate

equivalent to the five-year US

Treasury rate plus 2.104% per

anum

Semi-anualy

CNCBI may, at its sole discretion, elect to cancel any payment of coupon, in whole or in part, or redem Capital

Securities in whole on the first cal date and any subsequent coupon distribution date, where the holders of these

Capital Securities have no right to require CNCBI to redem. These Capital Securities listed above are clasified as

other equity instruments.

A distribution of RMB348 milion was paid to the holders of the Capital Securities mentioned above during the year

ended 31 December 2024 (During the year ended 31 December 2023: RMB588 milion).

50 Notes to consolidated anual statement of cash flows

Cash and cash equivalents

31 December

Cash4,467

Cash equivalents

— Surplus deposit reserve funds52,473

— Deposits with banks and non-bank financial institutions due within

thre months when acquired41,673

— Placements with and loans to banks and non-bank financial

institutions due within thre months when acquired59,707

— Investment securities due within thre months when acquired90,682

Subtotal244,535

Total249,002

– F-89 –

31 December 2024
16,885
37,179
54,064
854,489
812,562
273,578
324,861
2,319,554

31 December 2024
679,525

31 December 2024
1,055

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2692024 Anual Report

51 Comitments and contingent liabilities

(a) Credit comitments

The Group’s credit comitments take the form of loan comitments, credit card comitments, financial

guarantes, leters of credit and aceptances.

Loan comitments and credit card comitments represent the undrawn amount of aproved loans with signed

contracts and credit card limits. Financial guarantes and leters of credit represent guarantes provided by the

Group to guarante the performance of customers to third parties. Bank aceptances comprise undertakings

by the Group to pay bils of exchange drawn on customers. The Group expects the majority aceptances to be

setled simultaneously with the reimbursement from the customers.

The contractual amounts of credit comitments by categories are set out below. The amounts disclosed in

respect of loan comitments and credit card comitments asume that amounts are fuly drawn down. The

amounts of guarantes, leters of credit and aceptances represent the maximum potential los that would be

recognized at the reporting date if counterparties failed to perform as contracted.

31 December

Contractual amount

Loan comitments

— with an original maturity within one year13,995

— with an original maturity of one year or above32,773

Subtotal46,768

Bank aceptances867,523

Credit card comitments779,947

Leters of guarante isued237,359

Leters of credit isued256,351

Total2,187,948

(b) Credit comitments analysed by credit risk weighted amount

31 December

Credit risk weighted amount of credit comitments602,231

The credit risk weighted amount refers to the amount as computed in acordance with the rules set out by the

NFRA and depends on the status of counterparties and the maturity characteristics. The risk weighting used

range from 0% to 150%.

(i) The Group had the folowing authorised capital comitments in respect of property, plant and equipment

at the reporting date:

31 December

For the purchase of property and equipment

— contracted for1,521

– F-90 –

31 December 2024
2,615

31 December 2024
256,705
76,894
333,599

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited270

51 Comitments and contingent liabilities (continued)

(d) Outstanding contingencies including litigation and disputes

The Group has asesed and has made provisions for any probable outflow of economic benefits in relation to

comitments and contingent liabilities at the reporting date in acordance with its acounting policies including

litigation and disputes.

As at 31 December 2024, the Group was involved in certain pending litigation as defendant with gros claims of

RMB1,326 milion (as at 31 December 2023: RMB1,166 milion). Such contingencies, including litigation and

disputes, are not expected to have material impact on the financial position and operations of the Bank (Note 40).

(e) Bonds redemption obligations

As an underwriting agent of PRC treasury bonds, the Group has the responsibility to buy back those bonds

sold by it should the holders decide to early redem the bonds held. The redemption price for the bonds at any

time before their maturity dates is based on the nominal value plus any interest unpaid and acrued up to the

redemption date. Acrued interest payables to the bond holders are calculated in acordance with relevant rules

of the MOF and the PBOC. The redemption price may be diferent from the fair value of similar instruments

traded at the redemption date.

The redemption obligations below represent the nominal value of treasury bonds underwriten and sold by the

Group, but not yet matured at the reporting date:

31 December

Redemption comitment for PRC treasury bonds2,735

The original maturities of these bonds vary from one to five years. Management of the Group expects the amount

of redemption before maturity dates of these bonds wil not be material. The MOF wil not provide funding

for the early redemption of these bonds on a back-to-back basis, but wil setle the principal and interest upon

maturity.

(f) Underwriting obligations

As at 31 December 2024 and 2023, the Group did not have unfulfiled comitment in respect of securities

underwriting busines.

52 Colateral

(a) Asets pledged

(i) The carying amount of financial asets pledged as colateral in the Group’s ordinary course of busineses,

including repurchase agrements and borowings from central banks, are disclosed as below:

31 December

Debt securities744,648

Discounted bils93,454

Total838,102

As at 31 December 2024 and 2023, the Group’s liabilities related to the above colateral were due within

12 months from the efective dates of these agrements and title of these colateral was not transfered

to counterparties.

– F-91 –

31 December 2024
449,034
449,035

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2712024 Anual Report

52 Colateral (continued)

(a) Asets pledged (continued)

(i) In adition, as at 31 December 2024, the Group pledged deposits with banks and other financial

institutions with carying amount totaling RMB1,542 milion (31 December 2023: RMB911 milion)

as colateral for derivative transactions and guarante funds to exchanges. Title of these pledged asets

was not transfered to counterparties.

(b) Colateral acepted

The Group received debt securities and bils as colateral for financial asets held under resale agrements as set

out in Note 20. Under the terms of these agrements, the Group could not resel or re-pledge certain parts of

these colateral unles in the event of default by the counterparties. As at 31 December 2024, the Group held

no colateral that can be resold or re-pledged (31 December 2023: Nil). During the year ended 31 December

2024, the Group did not resel or re-pledge any of these colateral (year ended 31 December 2023: Nil).

53 Transactions on behalf of customers

(a) Entrusted lending busines

The Group provides entrusted lending busines services to corporations and individuals, as wel as entrusted

provident housing fund mortgage busines services. Al entrusted loans are made under the instruction or at

the direction of these corporations, individuals or provident housing fund centre and are funded by entrusted

funds from them.

For entrusted asets and liabilities and entrusted provident housing fund mortgage busines, the Group does not

expose to credit risk in relation to these transactions, but acts as an agent to hold and manage these asets and

liabilities at the instruction of the entrusting parties and receives fe income for the services provided.

Entrusted asets are not asets of the Group and are not recognized on the consolidated statement of financial

position. Income received and receivable for providing these services is included in the consolidated statement

of profit or los as fe income.

At the reporting date, the entrusted asets and liabilities were as folows:

31 December

Entrusted loans425,026

Entrusted funds425,028

(b) Wealth management services

As at 31 December 2024, the amount of total asets invested by these non-principal guaranted wealth management

products isued by the Group was disclosed in Note 59(b).

The funds raised by non-principal guaranted wealth management products from investors are invested in various

investments, including debt securities and money market instruments, credit asets and other debt instruments,

equity instruments etc. Credit risk, liquidity risk and interest rate risk asociated with these products are borne

by the customers. The Group only earns comision which represents the charges on customers in relation

to the provision of custodian, sale and management services. Income is recognized in the anual consolidated

statement of profit or los as comision income. The Group has entered into placements transactions at market

interest rates with the wealth management products vehicles (Note 59 (b).

As at 31 December 2024, the total investment of non-principal guaranted wealth management products managed

by the Group that was not included in the Group’s consolidated financial statements was disclosed in Note 59(b).

– F-92 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited272

54 Segment reporting

Measurement of segment asets and liabilities, and segment income and expenses are based on the Group’s acounting

policies.

Internal charges and transfer pricing of transactions betwen segments are determined for management purpose and

have ben reflected in the performance of each segment. Net interest income and expenses arising from internal charges

and transfer pricing adjustments are refered to as “Internal net interest income/expenses”. Interest income and expenses

earned from third parties are refered to as “External net interest income/expenses”.

Segment income, expense, asets and liabilities include items directly atributable to a segment as wel as those that can

be alocated on a reasonable basis. Segment asets and liabilities do not include defered tax asets and liabilities. Segment

income, expenses, asets, and liabilities are determined before intra-group balances, and intra-group transactions are

eliminated as part of the consolidation proces. Segment capital expenditure is the total costs incured during the year

to acquire asets (including both tangible asets and intangible asets) whose estimated useful lives are over one year.

(a) Busines segments

The Group has the folowing main busines segments for management purpose:

Corporate banking

This segment represents the provision of a range of financial products and services to corporations, government

agencies and non-financial institutions, as wel as conducts investment banking busineses and international

busineses. The products and services include corporate loans, deposit taking activities, agency services, remitance

and setlement services and guarante services.

Personal banking

This segment represents the provision of a range of financial products and services to individual customers.

The products and services comprise loans, deposit services, securities agency services, remitance and setlement

services and guarante services.

Treasury busines

This segment conducts capital markets operations, inter-bank operations, which, specificaly, includes inter-

bank money market transactions, repurchase transactions, and investments and trading in debt instruments.

Furthermore, treasury busines segment also caries out derivatives and forex trading both for the Group and

for customers.

– F-93 –

Year ended 31 December 2024
Corporate Banking	Personal Banking	Treasury Business	Others and Unallocated	Total
53,949	80,553	40,181	(28,004)	146,679
26,601	(16,526)	(40,916)	30,841	–
80,550	64,027	(735)	2,837	146,679
11,429	19,929	(291)	35	31,102
3,266	1,734	32,999	(2,557)	35,442
95,245	85,690	31,973	315	213,223
(2,422)	(2,048)	(2,931)	(910)	(8,311)
(26,864)	(32,241)	(2,839)	(1,683)	(63,627)
(16,078)	(42,155)	(2,416)	(396)	(61,045)
(52)	(16)	–	–	(68)
–	–	–	(24)	(24)
–	–	–	715	715
49,829	9,230	23,787	(1,983)	80,863
				(11,395)
				69,468
1,819	1,489	2,182	796	6,286

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2732024 Anual Report

54 Segment reporting (continued)

(a) Busines segments (continued)

Others and unalocated

Others comprise components of the Group that are not atributable to any of the above segments, along with

certain asets, liabilities, income or expenses of the Head Ofice that could not be alocated on a reasonable

basis. This segment also manages the Group’s liquidity position.

External net interest income/

(expense)

Internal net interest income/

(expense)

Net interest income/

(expense)

Net fe and comision

income/(expense)

Other net income/(expense)

(Note (i)

Operating income

Operating expenses

— depreciation and

amortisation

— others

Credit impairment loses

Impairment loses on other

asets

Revaluation los on

investment properties

Share of gains of asociates

and joint ventures

Profit/(Los) before tax

Income tax

Profit for the year

Capital expenditure1,8191,4892,1827966,286

– F-94 –

31 December 2024
Corporate Banking	Personal Banking	Treasury Business	Others and Unallocated	Total
3,016,097	2,342,470	3,554,046	558,630	9,471,243
–	–	–	7,349	7,349
				54,130
				9,532,722
4,167,546	1,764,899	1,198,792	1,594,081	8,725,318
				39
				8,725,357
1,505,475	814,079	–	–	2,319,554

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited274

54 Segment reporting (continued)

(a) Busines segments (continued)

Others and unalocated (continued)

Segment asets

Interest in asociates and

joint ventures

Defered tax asets

Total aset

Segment liabilities

Defered tax liabilities

Total liabilities

Of-balance shet credit

comitments1,505,475814,079–2,319,554

Year ended 31 December 2023

Corporate

Banking

Personal

Banking

Treasury

Busines

Others and

UnalocatedTotal

External net interest income/

(expense)44,79887,01440,396(28,669)143,539

Internal net interest income/

(expense)32,960(25,165)(37,720)29,925–

Net interest income77,75861,8492,6761,256143,539

Net fe and comision

income/(expense)11,44020,4635,949(5,469)32,383

Other net income (Note (i)2,3594,11317,3635,81329,648

Operating income91,55786,42525,9881,600205,570

Operating expenses

— depreciation and

amortisation(2,514)(2,024)(2,725)(978)(8,241)

— others(25,154)(31,499)(2,577)(1,743)(60,973)

Credit impairment loses(21,709)(36,967)(3,405)155(61,926)

Impairment loses on other

asets(278)–(278)

Revaluation los on

investment properties–(1)(1)

Share of profits of asociates

and joint ventures–736736

Profit/(Los) before tax41,90215,93517,281(231)74,887

Income tax(6,825)

Profit for the year68,062

Capital expenditure1,8041,5092,1988616,372

– F-95 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2752024 Anual Report

54 Segment reporting (continued)

(a) Busines segments (continued)

Others and unalocated (continued)

31 December 2023

Corporate

Banking

Personal

Banking

Treasury

Busines

Others and

UnalocatedTotal

Segment asets2,822,0642,249,6443,336,485584,8668,993,059

Interest in asociates and

joint ventures–6,9456,945

Defered tax asets52,480

Total aset9,052,484

Segment liabilities3,968,8551,553,6441,136,7121,658,5978,317,808

Defered tax liabilities1

Total liabilities8,317,809

Of-balance shet credit

comitments1,407,233780,715–2,187,948

Note:

(i) Other net income consists of net trading gain, net gain from investment securities, net hedging gain and other operating income.

(b) Geographical segments

The Group operates principaly in Mainland China with branches located in 31 provinces, autonomous regions

and municipalities. The Bank’s principal subsidiaries, CNCB Investment and CIFH are registered and operating

in Hong Kong. The other subsidiaries, Lin’an Rural Bank, CITIC Wealth and CFL are registered and operating

in Mainland China.

In presenting information by geographical segments, operating income is alocated based on the location of

the branches that generated the revenue. Segment asets and capital expenditure are alocated based on the

geographical location of the underlying asets.

Geographical segments, as defined for management reporting purposes, are as folows:

– “Yangtze River Delta” refers to the folowing areas where Tier-One branches of the Group are located:

Shanghai, Nanjing, Suzhou, Hangzhou and Ningbo, as wel as Lin’an Rural Bank and CITIC Wealth;

– “Pearl River Delta and West Strait” refers to the folowing areas where Tier-One branches of the Group

are located: Guangzhou, Shenzhen, Fuzhou, Donguan, Xiamen, and Haikou;

– “Bohai Rim” refers to the folowing areas where Tier-One branches of the Group are located: Beijing,

Tianjin, Dalian, Qingdao, Shijiazhuang, Jinan and CFL;

– “Central” region refers to the folowing areas where Tier-One branches of the Group are located: Hefei,

Zhengzhou, Wuhan, Changsha, Taiyuan and Nanchang;

– “Western” region refers to the folowing areas where Tier-One branches of the Group are located: Chengdu,

Chongqing, Xi’an, Kunming, Naning, Hohot, Urumqi, Guiyang, Lanzhou, Xining, Yinchuan and

Lhasa;

– “North-eastern” region refers to the folowing areas where Tier-One branches of the Group is located:

Shenyang, Changchun and Harbin;

– F-96 –

Year ended 31 December 2024
Yangtze River Delta	Pearl River Delta and West Strait	Bohai Rim	Central	Western	Northeastern	Head Office	Overseas	Elimination	Total
35,402	12,163	3,191	18,960	16,301	762	53,350	6,550	–	146,679
(4,493)	1,808	20,598	(4,302)	(5,434)	783	(8,977)	17	–	–
30,909	13,971	23,789	14,658	10,867	1,545	44,373	6,567	–	146,679
5,599	1,517	2,402	1,261	782	103	17,752	1,686	–	31,102
1,707	737	1,592	734	587	69	28,170	1,846	–	35,442
38,215	16,225	27,783	16,653	12,236	1,717	90,295	10,099	–	213,223
(1,069)	(796)	(905)	(666)	(696)	(184)	(3,427)	(568)	–	(8,311)
(11,199)	(6,077)	(8,852)	(6,341)	(5,703)	(1,274)	(20,629)	(3,552)	–	(63,627)
(8,679)	(8,802)	(8,179)	(5,007)	(4,338)	(42)	(22,793)	(3,205)	–	(61,045)
–	(11)	(5)	(10)	(22)	(4)	–	(16)	–	(68)
–	–	–	–	–	–	–	(24)	–	(24)
–	–	–	–	–	–	744	(29)	–	715
17,268	539	9,842	4,629	1,477	213	44,190	2,705	–	80,863
									(11,395)
									69,468
336	247	221	287	257	28	4,481	429	–	6,286

31 December 2024
Yangtze River Delta	Pearl River Delta and West Strait	Bohai Rim	Central	Western	Northeastern	Head Office	Overseas	Elimination	Total
2,080,747	1,080,806	2,010,887	900,004	750,011	132,623	3,544,471	520,058	(1,548,364)	9,471,243
–	–	–	–	–	–	7,009	340	–	7,349
									54,130
									9,532,722
2,048,244	1,142,811	1,925,658	888,016	762,263	133,944	2,927,282	445,464	(1,548,364)	8,725,318
									39
									8,725,357
399,571	292,758	273,121	307,856	180,892	23,965	801,306	40,085	–	2,319,554

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited276

54 Segment reporting (continued)

(b) Geographical segments (continued)

– “Head Ofice” refers to the headquarters of the Bank and the Credit Card Center; and

– “Overseas” includes al the operations of London branch, HongKong branch, CNCB Investment, CIFH

and its subsidiaries.

External net interest income

Internal net interest (expense)/income

Net interest income

Net fe and comision income

Other net income (Note (i)

Operating income

Operating expense

— depreciation and amortisation

— others

Credit impairment loses

Impairment loses on other asets

Revaluation los on investment properties

Share of gains/(los) of asociates and

joint ventures

Profit before tax

Income tax

Profit for the year

Capital expenditure336247221287257284,481429–6,286

Segment asets

Interest in asociates and joint ventures

Defered tax asets

Total asets

Segment liabilities

Defered tax liabilities

Total liabilities

Of-balance shet credit comitments399,571292,758273,121307,856180,89223,965801,30640,085–2,319,554

– F-97 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2772024 Anual Report

54 Segment reporting (continued)

(b) Geographical segments (continued)

Year ended 31 December 2023

Yangtze

River Delta

Pearl River

Delta and

West StraitBohai RimCentralWesternNortheasternHead OficeOverseasEliminationTotal

External net interest income/(expense)29,40510,713(5,496)20,02816,9921,15963,8076,931–143,539

Internal net interest income/(expense)3,60993125,902(1,712)(3,901)461(25,321)31–

Net interest income33,01411,64420,40618,31613,0911,62038,4866,962–143,539

Net fe and comision income5,1851,6743,0921,40694215418,6101,320–32,383

Other net income (Note (i)1,8045997221842704025,795234–29,648

Operating income40,00313,91724,22019,90614,3031,81482,8918,516–205,570

Operating expense

— depreciation and amortisation(988)(798)(1,119)(653)(744)(195)(3,164)(580)–(8,241)

— others(9,677)(5,200)(7,207)(5,935)(5,023)(1,059)(23,295)(3,577)–(60,973)

Credit impairment loses(8,481)(6,500)(3,855)(5,122)(4,337)(332)(30,723)(2,576)–(61,926)

Impairment loses on other asets(65)(22)(34)(44)(111)(2)–(278)

Revaluation los on investment properties–(1)–(1)

Share of gains of asociates and joint

ventures–736–736

Profit before tax20,7921,39712,0058,1524,08822625,7092,518–74,887

Income tax(6,825)

Profit for the year68,062

Capital expenditure395247238205222344,624407–6,372

31 December 2023

Yangtze

River Delta

Pearl River

Delta and

West StraitBohai RimCentralWesternNortheasternHead OficeOverseasEliminationTotal

Segment asets2,009,211994,5101,889,859879,067732,239126,4493,436,157480,095(1,554,528)8,993,059

Interest in asociates and joint ventures–6,573372–6,945

Defered tax asets52,480

Total asets9,052,484

Segment liabilities1,995,4331,041,1091,884,262854,890733,286132,9962,817,827412,405(1,554,400)8,317,808

Defered tax liabilities1

Total liabilities8,317,809

Of-balance shet credit comitments395,730255,105254,314281,328175,19521,048770,57234,656–2,187,948

Note:

(i) Other net income consists of net trading gain, net gain from investment securities, net hedging gain and other operating income.

– F-98 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited278

55 Financial risk management

This section presents information about the Group’s exposure to and its management and control of risks, in particular

the primary risks asociated with its use of financial instruments:

– Credit risk Credit risk represents the potential los that may arise from the failure of a customer

or counterparty to met its contractual obligations or comitments to the Group.

– Market risk Market risk arises from unfavorable changes in market prices (interest rate, exchange rate,

stock price or comodity price) that lead to a los of on-balance shet or of-balance

shet busines in the Group.

– Liquidity risk Liquidity risk arises when the Group, in meting the demand of liabilities due and other

payment obligations as wel as the neds of busines expansion, is unable to suficiently,

timely or cost-efectively acquire funds.

– Operational risk Operational risk arises from inapropriate or problematic internal procedures, personel,

IT systems, or external events, such risk includes legal risk, but excluding strategic risk

and reputational risk.

The Group has established policies and procedures to identify and analyse these risks, to set apropriate risk limits and

controls, and to constantly monitor the risks and limits by means of reliable and up-to-date management information

systems. The Group regularly modifies and enhances its risk management policies and systems to reflect changes in

markets, products and best practice risk management proceses. Internal auditors also perform regular audits to ensure

compliance with relevant policies and procedures.

(a) Credit risk

Credit risk management

Credit risk refers to the risk of los caused by default of debtor or counterparty. Credit risk also ocurs when

the Group makes unauthorized or inapropriate loans and advances to customers, financial comitments or

investments. The credit risk exposures of the Group mainly arise from the Group’s loans and advances to

customers, bonds, interbank busines, receivables, lease receivables, other debt investments, and other on-balance

shet asets, and also of-balance shet items, such as credit comitments.

The Group has standardized management on the entire credit busines proces including loan aplication and

its investigation, aproval and granting of loan, and monitoring of non-performing loans. Through strictly

standardized credit busines proces, strengthening the whole proces management of pre-lending investigation,

credit rating and credit granting, examination and aproval, loan review and post-lending monitoring, improving

risk mitigating impact of colateral, acelerating the colection and disposal of non-performing loans, and

promoting the upgrading and transformation of credit management system, the credit risk management of the

Group has ben comprehensively improved.

The Group writes of financial aset when it canot reasonably expect to recover al or part of the aset. Signs

indicating that the recoverable amount canot be reasonably expected to recover include: (1) the enforcement

has ben terminated, and (2) the Group’s recovery method is to confiscate and dispose of the colateral, but the

expected value of the colateral canot cover the entire principal and interest.

In adition to the credit risk caused by credit asets, the Group manages the credit risk for treasury busineses

through prudently selecting pers and other financial institutions with comparable credit levels as counterparties,

balancing credit risk with returns on investment, comprehensively considering internal and external credit

rating information, granting credit hierarchy, and using credit management system to review and adjust credit

comitments on a timely basis, etc. In adition, the Group provides of-balance shet comitment and guarante

busineses to customers, so it is posible for the Group to make payment on behalf of the customer in case of

customer’s default and bear risks similar to the loan. Therefore, the Group aplies similar risk control procedures

and policies to such busines to reduce the credit risk.

– F-99 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2792024 Anual Report

55 Financial risk management (continued)

(a) Credit risk (continued)

Measurement of expected credit loses (“ECL”)

The Group adopts the “expected credit los model” on its debt instruments which are clasified as financial

asets measured at amortised cost and at fair value through other comprehensive income and of-balance shet

credit asets in acordance with the provisions of IFRS 9.

For financial asets that are included in the measurement of expected credit loses, the Group evaluates whether

the credit risks of related financial asets have increased significantly since the initial recognition. The impairment

model is used to measure their alowances for impairment loses respectively to recognize expected credit loses

and their movements:

Stage 1: Financial asets with no significant increase in credit risk since initial recognition wil be clasified as

“Stage 1” and the Group continuously monitors their credit risk. The los alowance of financial asets in Stage

1 is measured based on the expected credit loses in the next 12 months, which represent the proportion of the

lifetime expected credit loses that may arise from posible default events in the next 12 months.

Stage 2: If there is a significant increase in credit risk from initial recognition but not has ben credit-impaired, the

Group transfers the related financial asets to Stage 2, but does not consider them as credit-impaired instruments.

The expected credit loses of financial asets in Stage 2 are measured based on the lifetime expected credit loses.

Stage 3: If a financial aset has ben credit-impaired, it wil be moved to Stage 3. The expected credit loses of

financial asets in Stage 3 are measured based on the lifetime expected credit loses.

Purchased or originated credit-impaired financial asets refers to financial asets that are credit-impaired at initial

recognition. Alowance for impairment loses on these asets are the lifetime expected credit loses.

The Group measures ECLs of financial asets through testing models including the risk parameters model and

discounted cash flows model. The risk parameters model method is aplicable to the financial asets in Stages 1 and

2. Both the risk parameter model and discounted cash flows model are aplicable to the Stage 3 financial asets.

The discounted cash flow model is used to calculate the impairment alowance for an aset based on the regular

forecasts of the future cash flows of the aset. At each measurement date, the Group makes forecasts of the future

cash inflows of the aset in diferent periods and in diferent scenarios, aplies probability weightings to obtain

the weighted averages of the future cash flows, aplies apropriate discount rates to the weighted averages and

ads these discounted weighted averages to obtain the present value of the future cash inflows.

The risk parameter model has two main components: 1) the asesment methods under, the Internal Rating-

Based (IRB) aproach for key parameters, such as probability of default (PD) and los given default (LGD);

and 2) the forward-loking adjustment model for multi-scenario forecasts based on the key parameters. The

expected credit loses of financial asets are asesed individualy by measuring PDs, LGDs and forward-loking

adjustments. The key judgments involved and asumptions adopted by the Group in asesing expected credit

loses are as folows:

(1) Grouping of risks

Acording to the nature of the busineses, the Group mainly divides its financial asets into thre major

categories, i. e., corporate asets, personal loans and credit card asets acording to the aset categories, and

further divides them into risk groups in light of their credit risk characteristics, including the industries

in which the customers operate and product type.

– F-100 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited280

55 Financial risk management (continued)

(a) Credit risk (continued)

Measurement of expected credit loses (“ECL”) (continued)

(2) Significant increase in credit risk

On each balance shet date, the Group evaluates whether the credit risk of the relevant financial

instruments has increased significantly since the initial recognition. When one or more quantitative or

qualitative threshold, or pre-set uper limit are trigered, the credit risk of financial instruments would

be considered as having increased significantly.

By seting quantitative and qualitative criteria, the Group determines whether the credit risk of financial

instruments has increased significantly since initial recognition. The criteria mainly include days past

due, the absolute level and relative level of default probability changes, changes in credit risk clasification

and other circumstances indicating significant changes in credit risk.

In acordance with the policies of the central government and regulatory authorities and in light of its

credit management neds, the Group makes prudential asesments of the repayment ability of borowers

who aply for loan extensions, To eligible borowers provides a number of relief options, including

defered repayment of interest and adjustment of repayment schedules., and at the same time, the Group

makes individual and colective asesments to ases whether there has ben a significant increase in the

credit risk of these borowers.

(3) Definition of credit-impaired asets

When credit impairment ocured, the Group defines that the financial aset is in default. In general, a

financial aset that is overdue for more than 90 days is considered to be in default.

When one or more events that significant adversely afect the expected future cash flow of a financial

aset ocurs, the financial aset becomes a credit-impaired financial aset. Evidence of credit-impaired

financial asets includes the folowing observable information:

;

• The borower is in breach of financial covenant(s) such as default or overdue in repayment of

interests or principal etc.;

, considering for

economic or contractual reasons relating to the debtor’s financial dificulties;

;

• An active market for that financial aset has disapeared because of financial dificulties from

isuer or borower;

• Financial asets are purchased or originated at a dep discount that reflects the incured credit

loses.

– F-101 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2812024 Anual Report

55 Financial risk management (continued)

(a) Credit risk (continued)

Measurement of expected credit loses (“ECL”) (continued)

(4) Inputs for measurement of expected credit loses

The expected credit los is measured on either a 12-month or lifetime basis depending on whether a

significant increase in credit risk has ocured or whether an aset is considered to be credit-impaired.

Related definitions are as folows:

“PD”) represents the likelihod of a borower defaulting on its financial

obligations, either over the next 12 months or over the remaining lifetime of the obligation.

“LGD”) represents the Group’s expectation of the extent of los on a defaulted

exposure. LGD varies by type of counterparty, type and seniority of claim, and colateral or other

credit suport. LGD is expresed as a percentage los per unit of exposure at the time of default

and is calculated on a 12-month or lifetime basis.

“EAD”) is based on the amounts that the Group expects to be owned at the

time of default, over the next 12 months or over the remaining lifetime of the obligation.

The Group regularly monitors and reviews the asumptions related to the calculation of ECL, including

the PDs for various maturities and the changes in the values of colateral over time.

The Group clasifies exposures with similar risk characteristics into groups and colectively estimates

their risk parameters, including PDs, LGDs, and EADs. During 2024, based on data acumulation, the

Group optimized and updated the relevant models and parameters. The Group has obtained suficient

information to ensure its statistical reliability.The Group makes alowances for its expected credit loses

based on on-going asesment of and folow-up on changes in its customers and their financial asets on

an individual basis.

(5) Forward-loking information

The asesment of significant increases in credit risk and the calculation of expected credit loses both

involve forward-loking information. Based on historical analysis, the Group has identified the key

economic variables impacting expected credit loses for various risk groups.

These economic variables have diferent impacts on the probabilities of default and the loses given default

of diferent risk groups. The Group makes, forecasts of these economic indicators at least semi-anualy.

In this proces, the Group also resorts to expert judgment, and aplies expert judgment to determine the

impact of these economic variables on the probabilities of and the loses given default.

In adition to the neutral economic scenario, the Group determines the posible scenarios and their

weightings by a combination of statistical analysis and expert judgment. The Group measures expected

credit loses as either a probability weighted 12 months expected credit loses (Stage 1) or a probability

weight lifetime expected credit loses (Stage 2 and Stage 3). These probability-weighted expected credit

loses are determined by runing each scenario through the relevant expected credit loses model and

multiplying it by the apropriate scenario weighting.

– F-102 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited282

55 Financial risk management (continued)

(a) Credit risk (continued)

Measurement of expected credit loses (“ECL”) (continued)

(5) Forward-loking information (continued)

Macroeconomic scenario and weighting information

The Group has performed historical analysis and identified the key economic variables impacting credit

risk and ECL for each portfolio. Based on comprehensive considerations of internal and external data

expert forecasts, and the best estimate of future, outcomes, the Group makes regular forecasts of the

macro indicators in thre macro-economic scenarios, i. e., the positive, neutral, and negative scenarios,

to determine the coeficients for forward-loking adjustments. Neutral is defined as the most likely to

hapen in the future, as compared to other scenarios. Positive scenario and negative scenario represent

the likely scenario that is beter of or worse of as compared to the neutral scenario.

The Group reasesed and updated the key economic indicators afecting ECLs and their estimates during

the reporting period based on the latest historical data. The economic indicators curently aplied in the

neutral scenario, including consumer price index, narow money suply and gros domestic product, etc.,

are basicaly consistent with the forecasts of research institutions.

Considered diferent macroeconomic scenarios and the key macroeconomic scenario asumptions used

in estimating ECL are set out below:

VariablesRange

Total Retail Sales of Consumer Gods (cumulative year-on-year growth)0.59%~5.02%

Completed Investment in Fixed Asets (cumulative year-on-year growth)3.81%~5.60%

Per capita Consumption Expenditure of Urban Residents

(cumulative year-on-year growth)3.13%~6.79%

Curently, the weighting of neutral scenario is equal to the sum of the weightings of other scenarios.

Folowing this asesment, the Group measures ECL as a weighted average probability of ECL in the next

12-month under the thre scenarios for Stage 1 financial instruments; and a weighted average probability

of lifetime ECL for Stage 2 and 3 financial instruments.

Considering the portfolios that canot be modeled by regresion, such as those with extremely low default

rate or without apropriate internal rating data, the Group mainly adopts the expected los ratio of similar

portfolios with established regresion models, in order to expand the coverage of the existing ECL model.

(6) Sensitivity information and management overlay

Changes to the inputs and forward-loking information used in ECL measurement wil afect the

asesment of significant increase in credit risk and the measurement expected of credit loses.

As at 31 December 2024, asuming a 10% increase in the weighting of the positive scenario and a 10%

decrease in the weighting of the neutral scenario, the Group’s credit impairment loses would be reduced

by no more than 5% of the curent credit impairment loses; asuming a 10% increase in the weighting

of the negative scenario and a 10% decrease in the weighting of the neutral scenario, the Group’s credit

impairment loses would increase by no more than 5% of the curent credit impairment loses.

As at 31 December 2024, asuming an overal increase or decrease of 5% in the macroeconomic factors,

the change to the impairment los alowances for the main credit asets of the Group and the Bank would

not exced 10% of the curent impairment los alowances.

For risks in specific areas the impacts of defered principal also considered and aplied management overlays

to increase the impairment provisions to further bost its risk mitigation capacity, and the subsequent

increase in the impairment los alowances did not exced 5% of the curent impairment los alowances.

– F-103 –

31 December 2024
Stage 1	Stage 2	Stage 3	Not applicable	Total
336,178	–	–	–	336,178
128,193	–	–	–	128,193
382,012	–	–	22,789	404,801
–	–	–	85,929	85,929
136,265	–	–	–	136,265
5,477,446	91,553	20,839	11,612	5,601,450
–	–	–	647,398	647,398
1,087,862	9,165	21,962	–	1,118,989
849,251	–	530	–	849,781
–	–	–	4,702	4,702
20,221	9,813	862	–	30,896
8,417,428	110,531	44,193	772,430	9,344,582
2,318,250	1,209	95	–	2,319,554
10,735,678	111,740	44,288	772,430	11,664,136

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2832024 Anual Report

55 Financial risk management (continued)

(a) Credit risk (continued)

Measurement of expected credit loses (“ECL”) (continued)

(i) Maximum credit risk exposure

The maximum exposure to credit risk at the reporting date without taking into consideration of any

colateral held or other credit enhancement is represented by the net balance of each type of financial asets

in the consolidated anual statement of financial position after deducting any alowance for impairment

loses. A sumary of the maximum exposure is as folows:

Balances with central banks

Deposits with bank and non-

bank financial institutions

Placements with and loans

to banks and non-bank

financial institutions

Derivative financial asets

Financial asets held under

resale agrements

Loans and advances to

customers

Financial investments

— at fair value through

profit or los

— at amortised cost

— at fair value through

other comprehensive

income

— designated at fair

value through other

comprehensive income

Other financial asets

Subtotal

Credit comitments

Maximum credit risk

exposure10,735,678111,74044,288772,43011,664,136

– F-104 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited284

55 Financial risk management (continued)

(a) Credit risk (continued)

Measurement of expected credit loses (“ECL”) (continued)

(i) Maximum credit risk exposure (continued)

31 December 2023

Stage 1Stage 2Stage 3

Not

aplicableTotal

Balances with central banks411,975–411,975

Deposits with bank and non-

bank financial institutions81,075–81,075

Placements with and loans

to banks and non-bank

financial institutions230,422–7,320237,742

Derivative financial asets–44,67544,675

Financial asets held under

resale agrements104,773–104,773

Loans and advances to

customers5,285,33369,67423,1855,5585,383,750

Financial investments

— at fair value through

profit or los–613,824613,824

— at amortised cost1,055,7854,57425,239–1,085,598

— at fair value through

other comprehensive

income887,1655031,009–888,677

— designated at fair

value through other

comprehensive income–4,8074,807

Other financial asets18,6049,815756–29,175

Subtotal8,075,13284,56650,189676,1848,886,071

Credit comitments2,186,8601,03256–2,187,948

Maximum credit risk

exposure10,261,99285,59850,245676,18411,074,019

Acording to the quality of asets, the Group clasified the credit rating of the financial asets as risk level

1, risk level 2, risk level 3 and default. “Risk level 1” refers to customers who have competitive advantages

among local pers with god foundations, outstanding operation results, strong operational and financial

strength, and/or god corporate governance structure. “Risk level 2” refers to customers who are in the

midle tier among local pers with fair foundations, fair operation results, fair operational and financial

strength, and/or fair corporate governance structure. “Risk level 3” refers to customers who are in the

lower tier among local pers, with weak foundations, por operation results, por operational and financial

strength, and/or deficiency in corporate governance structure. The definition of “Default” is same as the

definition of credit impaired. The credit rating is used for internal risk management.

– F-105 –

31 December 2024
Risk level 1	Risk level 2	Risk level 3	Default	Subtotal	Allowance for impairment losses	Net balance
3,584,584	1,720,473	234,430	–	5,539,487	(62,041)	5,477,446
1,389	19,577	100,040	–	121,006	(29,453)	91,553
–	–	–	69,738	69,738	(48,899)	20,839
1,056,949	32,325	489	–	1,089,763	(1,901)	1,087,862
637	5,488	4,086	–	10,211	(1,046)	9,165
–	–	–	45,180	45,180	(23,218)	21,962
848,602	649	–	–	849,251	(1,787)	849,251
–	–	–	–	–	–	–
–	–	–	530	530	(771)	530
5,492,161	1,778,512	339,045	115,448	7,725,166	(169,116)	7,558,608

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2852024 Anual Report

55 Financial risk management (continued)

(a) Credit risk (continued)

Measurement of expected credit loses (“ECL”) (continued)

(i) Maximum credit risk exposure (continued)

The folowing table provides an analysis of loans and advances to customers and financial investments that

are included in the ECL asesment acording to the credit risk level. The bok value of the folowing

financial asets is the Group’s maximum exposure to credit risk for these asets.

Loans and advances to

customers (Note (i)

Stage 1

Stage 2

Stage 3

Financial investments

at amortised cost

Stage 1

Stage 2

Stage 3 (Note (i)

Financial investments

at fair value through

other comprehensive

income

Stage 1

Stage 2

Stage 3

Maximum credit risk

exposure5,492,1611,778,512339,045115,4487,725,166(169,116)7,558,608

31 December 2023

Risk

level 1

Risk

level 2

Risk

level 3DefaultSubtotal

Alowance

for

impairment

loses

Net

balance

Loans and advances to

customers (Note (i)

Stage 13,989,3611,198,860160,088–5,348,309(62,976)5,285,333

Stage 22,66314,09480,022–96,779(27,105)69,674

Stage 3–67,64667,646(44,461)23,185

Financial investments

at amortised cost

Stage 11,020,41137,356694–1,058,461(2,676)1,055,785

Stage 2–5,935–5,935(1,361)4,574

Stage 3 (Note (i)–47,50747,507(22,268)25,239

Financial investments

at fair value through

other comprehensive

income

Stage 1885,9371,228–887,165(1,289)887,165

Stage 2–503–503(219)503

Stage 3–1,0091,009(460)1,009

Maximum credit risk

exposure5,898,3721,252,041246,739116,1627,513,314(162,815)7,352,467

– F-106 –

Year ended 31 December 2024
Stage 1	Stage 2	Stage 3
5,348,309	96,779	67,646
(121,079)	–	–
–	42,321	–
–	–	78,758
304,200	(19,131)	(16,400)
–	–	(60,724)
8,057	1,037	458
5,539,487	121,006	69,738

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited286

55 Financial risk management (continued)

(a) Credit risk (continued)

Measurement of expected credit loses (“ECL”) (continued)

(i) Maximum credit risk exposure (continued)

Notes:

(i) Loans and advances to customers include loans and advances to customers measured at fair value through other comprehensive income,

and its coresponding impairment are not included in the “Alowance for impairment loses” as shown in the table.

(i) Claims in Stage 3 mainly represent investment management products and trust investment plans (Note 55(a)(vi).

(i) Measurement of expected credit loses

The folowing table shows the movement in carying value of loans and advances to customers in curent

reporting period:

As at 1 January 2024

Movements

Net transfers out from Stage 1

Net transfers into Stage 2

Net transfers into Stage 3

Net transactions incured during the

year (Note(i)

Write-of

Others (Note (i)

As at 31 December 20245,539,487121,00669,738

Year ended 31 December 2023

Stage 1Stage 2Stage 3

As at 1 January 20234,998,80491,45175,816

Movements

Net transfers out from Stage 1(104,735)–

Net transfers into Stage 2–26,544–

Net transfers into Stage 3–78,191

Net transactions incured during the

year (Note(i)443,018(20,657)(26,433)

Write-of–(60,054)

Others (Note (i)11,222(559)126

As at 31 December 20235,348,30996,77967,646

– F-107 –

Year ended 31 December 2024
Stage 1	Stage 2	Stage 3
1,945,626	6,438	48,516
(4,812)	–	–
–	4,301	–
–	–	511
(6,687)	(1,339)	(148)
–	–	(3,365)
4,887	811	196
1,939,014	10,211	45,710

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2872024 Anual Report

55 Financial risk management (continued)

(a) Credit risk (continued)

Measurement of expected credit loses (“ECL”) (continued)

(i) Measurement of expected credit loses (continued)

The folowing table shows the movement in carying value of financial investment in curent reporting

period:

As at 1 January 2024

Movements

Net transfers out from Stage 1

Net transfers into Stage 2

Net transfers into Stage 3

Net transactions incured during the

year (Note(i)

Write-of

Others (Note (i)

As at 31 December 20241,939,01410,21145,710

Year ended 31 December 2023

Stage 1Stage 2Stage 3

As at 1 January 20231,908,0415,23255,440

Movements

Net transfers out from Stage 1(5,334)–

Net transfers into Stage 2–3,460–

Net transfers into Stage 3–1,874

Net transactions incured during the

year (Note(i)38,725(2,366)(3,020)

Write-of–(5,629)

Others (Note (i)4,194112(149)

As at 31 December 20231,945,6266,43848,516

Notes:

(i) Net transactions during the year mainly include changes in carying amount due to purchase, origination, or derecognition (excluding

write-ofs).

(i) Others include changes in acrued interest receivables and efect of exchange diferences during the year.

– F-108 –

Year ended 31 December 2024
Stage 1	Stage 2	Stage 3
63,562	27,105	44,531
(3,136)	–	–
–	6,157	–
–	–	33,557
7,501	(4,995)	(6,962)
(5,303)	131	25,749
–	–	(60,724)
(38)	1,056	12,751
62,586	29,454	48,902

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited288

55 Financial risk management (continued)

(a) Credit risk (continued)

Measurement of expected credit loses (“ECL”) (continued)

(i) Measurement of expected credit loses (continued)

The folowing table shows the movement in alowance for impairment of loans and advances to customers

in curent reporting period:

As at 1 January 2024

Movements (Note(i)

Net transfers out from Stage 1

Net transfers into Stage 2

Net transfers into Stage 3

Net transactions incured during the

year (Note(i)

Changes in parameters for the year

(Note (i)

Write-of

Others (Note (iv)

As at 31 December 202462,58629,45448,902

Year ended 31 December 2023

Stage 1Stage 2Stage 3

As at 1 January 202360,72722,52448,363

Movements (Note(i)

Net transfers out from Stage 1(3,045)–

Net transfers into Stage 2–9,082–

Net transfers into Stage 3–34,778

Net transactions incured during the

year (Note(i)6,982(3,989)(6,742)

Changes in parameters for the year

(Note (i)(1,171)(149)14,094

Write-of–(60,054)

Others (Note (iv)69(363)14,092

As at 31 December 202363,56227,10544,531

– F-109 –

Year ended 31 December 2024
Stage 1	Stage 2	Stage 3
3,965	1,580	22,728
(165)	–	–
–	(58)	–
–	–	223
203	(618)	1,386
(309)	138	2,961
–	–	(3,365)
(6)	4	56
3,688	1,046	23,989

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2892024 Anual Report

55 Financial risk management (continued)

(a) Credit risk (continued)

Measurement of expected credit loses (“ECL”) (continued)

(i) Measurement of expected credit loses (continued)

The folowing table shows the movement in alowance for impairment of financial investment in curent

reporting period:

As at 1 January 2024

Movements (Note(i)

Net transfers out from Stage 1

Net transfers out from Stage 2

Net transfers into Stage 3

Net transactions incured during the

year (Note(i)

Changes in parameters for the year

(Note (i)

Write-of

Others (Note (iv)

As at 31 December 20243,6881,04623,989

Year ended 31 December 2023

Stage 1Stage 2Stage 3

As at 1 January 20233,8991,48525,899

Movements (Note(i)

Net transfers out from Stage 1(177)–

Net transfers into Stage 2–650–

Net transfers into Stage 3–893

Net transactions incured during the

year (Note(i)2321192,373

Changes in parameters for the year

(Note (i)5(676)(810)

Write-of–(5,629)

Others (Note (iv)622

As at 31 December 20233,9651,58022,728

Notes:

(i) Movements in alowance for impairment during the year mainly include the impact of stage changes on the measurement of ECLs.

(i) Net transactions during the year mainly include changes in alowance for impairment due to financial asets purchased newly originated,

purchased or derecognized (excluding write-ofs).

(i) Changes in parameters mainly include changes in risk exposures and the impacts on ECLs due to changes in PDs and LGDs folowing

regular updates on modeling parameters rather than stages movements.

(iv) Others include recovery of loans writen of, changes of impairment loses of acrued interest, and efect of exchange diferences.

– F-110 –

31 December 2024
Gross balance	%	Loans and advances secured by collateral
563,951	9.8	156,726
556,173	9.7	197,868
437,242	7.6	96,817
285,149	5.0	196,753
226,139	3.9	93,242
148,934	2.6	62,888
118,483	2.1	46,869
115,613	2.0	36,822
91,514	1.6	8,896
66,479	1.2	22,681
298,440	5.2	84,905
2,908,117	50.7	1,004,467
2,362,110	41.1	1,593,382
449,901	7.8	–
21,715	0.4	–
5,741,843	100.0	2,597,849

31 December 2024
Gross balance	%	Loans and advances secured by collateral
1,647,237	28.8	760,263
1,455,154	25.3	465,582
812,116	14.1	482,490
804,731	14.0	402,389
696,388	12.1	343,939
84,343	1.5	46,712
220,159	3.8	96,474
21,715	0.4	–
5,741,843	100.0	2,597,849

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited290

55 Financial risk management (continued)

(a) Credit risk (continued)

Measurement of expected credit loses (“ECL”) (continued)

(i) Loans and advances to customers analysed by industry sector:

31 December 2023

Gros

balance%

Loans and

advances

secured by

colateral

Corporate loans

— rental and busines

services531,4249.6148,751

— manufacturing500,0029.1177,434

— water, environment

and public utility

management434,5707.9104,719

— real estate259,3634.7171,880

— wholesale and retail213,6323.9100,650

— transportation, storage

and postal services139,2012.563,159

— production and suply

of electric power,

heat, gas and water96,1901.739,998

— construction116,0992.145,125

— financial industry78,7561.44,720

— Information

transmision,

software and

information

technology services54,7051.021,882

— others273,2085.082,093

Subtotal2,697,15048.9960,411

Personal loans2,283,84641.31,510,757

Discounted bils517,3489.4–

Acrued interest19,9480.4–

Gros loans and advances to

customers5,518,292100.02,471,168

(iv) Loans and advances to customers analysed by geographical sector:

31 December 2023

Gros

balance%

Loans and

advances

secured by

colateral

Yangtze River Delta1,538,26927.9723,947

Bohai Rim

(including Head Ofice)1,423,02625.8431,641

Pearl River Delta and

West Strait782,23114.2459,753

Central790,47714.3379,773

Western669,58912.1328,307

Northeastern85,0371.552,682

Outside Mainland China209,7153.895,065

Acrued interest19,9480.4–

Total5,518,292100.02,471,168

– F-111 –

31 December 2024
1,625,741
1,046,637
2,597,849
2,197,326
400,523
5,270,227
449,901
21,715
5,741,843

31 December 2024
Gross balance	% of total loans and advances
29,601	0.52%
1, 626	0.03%

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2912024 Anual Report

55 Financial risk management (continued)

(a) Credit risk (continued)

Measurement of expected credit loses (“ECL”) (continued)

(v) Loans and advances to customers analysed by type of security

31 December

Unsecured loans1,546,536

Guaranted loans963,292

Secured loans2,471,168

— loans secured by colateral2,057,869

— pledged loans413,299

Subtotal4,980,996

Discounted bils517,348

Acrued interest19,948

Gros loans and advances to customers5,518,292

(vi) Rescheduled loans and advances to customers

31 December 2023

Gros balance

% of total

loans and

advances

Rescheduled loans and

advances17,4770.32%

— rescheduled loans and

advances overdue more

than 3 months3,1470.06%

Rescheduled loans and advances are those loans and advances to customers which have ben restructured

or renegotiated because of deterioration in the financial position of the borowers, or of the inability of

the borower to met the original repayment schedule and for which the revised repayment terms are a

concesion that the Group would not otherwise consider. As of 31 December 2024, the Group’s concesion

given under renegotiation with borowers or court rulings as a result of deterioration in financial position

of borowers is not significant.

– F-112 –

31 December 2024
Unrated	AAA	AA	A	Below A	Total
(Note (i))
909,891	532,386	41,824	240	–	1,484,341
24,475	–	–	5,192	–	29,667
–	–	11,705	–	–	11,705
20,305	211,989	16,377	45,594	8,514	302,779
20,254	83,324	23,093	20,474	13,020	160,165
16,712	–	–	–	–	16,712
175,858	–	–	–	–	175,858
1,167,495	827,699	92,999	71,500	21,534	2,181,227

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited292

55 Financial risk management (continued)

(a) Credit risk (continued)

Measurement of expected credit loses (“ECL”) (continued)

(vi) Debt securities analysed by credit rating

The Group adopts a credit rating aproach to manage credit risk of its debt instruments portfolio. The

ratings are obtained from major rating agencies where the debt instruments are isued. As at 31 December

2024 and 2023, debt instruments investments analysed by rating as at the end of the reporting period

are as folows:

Debt securities isued by:

— governments

— policy banks

— public entities

— banks and non-bank

financial institutions

— corporates

Investment management

products managed by

securities companies

Trust investment plans

Total1,167,495827,69992,99971,50021,5342,181,227

31 December 2023

UnratedABelow ATotal

(Note (i)

Debt securities isued by:

— governments898,954512,41959,1732,270–1,472,816

— policy banks23,60624,039–5,859–53,504

— public entities–3,987–3,987

— banks and non-bank

financial institutions7,545260,68113,11620,8402,189304,371

— corporates21,34964,26913,2088,8385,314112,978

Investment management

products managed by

securities companies19,176–19,176

Trust investment plans189,733–189,733

Total1,160,363861,40889,48437,8077,5032,156,565

Note:

(i) Unrated debt securities held by the Group are primarily bonds isued by the Chinese government, policy banks, banks, non-bank

financial institutions, investment management products managed by securities companies and trust investment plans.

– F-113 –

31 December 2024
210,068
210,068

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2932024 Anual Report

55 Financial risk management (continued)

(a) Credit risk (continued)

Measurement of expected credit loses (“ECL”) (continued)

(vi) Investment management products managed by securities companies and trust investment plans analysed by type

of underlying asets

31 December

Investment management products managed by securities

companies and trust investment plans

— credit asets227,748

Total227,748

The Group puts investment management products managed by securities companies and trust investment

plans into comprehensive credit management system, to manage its credit risk exposure in a holistic

maner. The type of security of credit asets includes guarante, secured by colateral, and pledge.

(b) Market risk

Market risk refers to risks that may cause a los of on-balance shet and of-balance shet busineses for the Group

due to the adverse movement of market prices, including interest rates, foreign exchange rates, stock prices and

comodity prices. The Group has established a market risk management system that formulates procedures to

identify, measure, supervision and control market risks. This system aims to limit market risk to an aceptable

level through examining and aproving new products and limit management.

Management of the Group is responsible for aproving market risk management policies, establishing apropriate

organizational structure and information systems to efectively identify, measure, monitor and control market

risks, and ensuring adequate resources to reinforce the market risk management. The Risk Management

Department is responsible for independently managing and controling market risks of the Group, including

developing market risk management policies and authorization limits, providing independent report of market

risk to identify, measure and monitor the Group’s market risk. Busines departments are responsible for the

day-to-day management of market risks, including efectively identifying, measuring, controling market risk

factors asociated with the relevant operations, so as to ensure the dynamic balance betwen busines development

and risk undertaking.

The Group uses sensitivity analysis, foreign exchange exposure and interest rate re-pricing gap analysis as the

primary instruments to monitor market risk.

Interest rate risk and curency risk are the major market risks that the Group is exposed to.

Interest rate risk

The Group’s interest rate exposures mainly arise from the mismatching of asets and liabilities’ re-pricing dates,

as wel as the efect of interest rate volatility on trading positions.

The Group primarily uses gap analysis to ases and monitor its re-pricing risk and adjust the ratio of floating

and fixed rate exposures, the loan re-pricing cycle, as wel as optimization of the term structure of its deposits

acordingly.

The Group implements various methods, such as duration analysis, sensitivity analysis, stres testing and scenario

simulation, to measure, manage and report the interest rate risk on a regular basis.

– F-114 –

31 December 2024
Total	Non- interest bearing	Less than three months	Between three months and one year	Between one and five years	More than five years
340,915	15,890	325,025	–	–	–
128,193	335	108,521	19,337	–	–
404,801	1,230	170,143	175,035	58,393	–
136,265	31	136,234	–	–	–
5,601,450	20,013	3,880,345	1,356,402	310,160	34,530
647,398	434,941	69,204	70,241	13,200	59,812
1,118,989	13,764	78,013	182,951	591,096	253,165
849,781	6,425	71,374	102,832	482,857	186,293
4,702	4,702	–	–	–	–
300,228	300,228	–	–	–	–
9,532,722	797,559	4,838,859	1,906,798	1,455,706	533,800

31 December 2024
Total	Non- interest bearing	Less than three months	Between three months and one year	Between one and five years	More than five years
124,151	1,544	57,836	64,771	–	–
968,492	4,404	894,161	69,927	–	–
88,550	17	49,378	35,528	3,627	–
1,719	1	–	15	1,652	51
278,003	236	232,354	45,413	–	–
5,864,311	166,440	3,563,608	1,100,317	1,033,946	–
1,224,038	3,516	266,626	734,854	149,050	69,992
10,861	–	790	2,122	6,595	1,354
165,232	163,559	1,673	–	–	–
8,725,357	339,717	5,066,426	2,052,947	1,194,870	71,397
807,365	457,842	(227,567)	(146,149)	260,836	462,403

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited294

55 Financial risk management (continued)

(b) Market risk (continued)

Interest rate risk (continued)

The folowing tables sumarise the average interest rates, and the next re-pricing dates or contractual maturity

date whichever is earlier for the asets and liabilities as at the end of each reporting date.

Average

interest

rate

(Note (i)

Asets

Cash and balances with central banks1.63%

Deposits with banks and non-bank

financial institutions2.22%

Placements with and loans to banks

and non-bank financial institutions3.14%

Financial asets held under resale

agrements1.81%

Loans and advances to customers

(Note (i)4.24%

Financial investment

— at fair value through profit

or los

— at amortised cost2.93%

— at fair value through other

comprehensive income2.80%

— designated at fair value through

other comprehensive income

Others

Total asets9,532,722797,5594,838,8591,906,7981,455,706533,800

Average

interest

rate

(Note (i)

Liabilities

Borowings from central banks2.48%

Deposits from banks and non-bank

financial institutions2.01%

Placements from banks and non-bank

financial institutions3.15%

Financial liabilities at fair value

through profit or los

Financial asets sold under repurchase

agrements2.10%

Deposits from customers1.89%

Debt securities isued2.42%

Lease liabilities4.37%

Others

Total liabilities

Interest rate gap807,365457,842(227,567)(146,149)260,836462,403

– F-115 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2952024 Anual Report

55 Financial risk management (continued)

(b) Market risk (continued)

Interest rate risk (continued)

31 December 2023

Average

interest

rateTotal

Non-

interest

bearing

Les than

thre

months

Betwen

thre

months

and one

year

Betwen

one and

five years

More than

five years

(Note (i)

Asets

Cash and balances with central banks1.60%416,44210,592405,850–

Deposits with banks and non-bank

financial institutions2.07%81,0752,65153,09825,326–

Placements with and loans to banks

and non-bank financial institutions3.18%237,7421,28886,813148,1411,500–

Financial asets held under resale

agrements1.61%104,77335104,738–

Loans and advances to customers

(Note (i)4.56%5,383,75019,2673,560,3301,527,678261,49214,983

Financial investment

— at fair value through profit

or los613,824421,78779,06087,29710,80614,874

— at amortised cost3.16% 1,085,59812,92065,996184,679630,192191,811

— at fair value through other

comprehensive income2.73% 888,6776,419130,264132,711426,617192,666

— designated at fair value through

other comprehensive income4,8074,807–

Others235,796235,796–

Total asets9,052,484715,5624,486,1492,105,8321,330,607414,334

31 December 2023

Average

interest

rateTotal

Non-

interest

bearing

Les than

thre

months

Betwen

thre

months

and one

year

Betwen

one and

five years

More than

five years

(Note (i)

Liabilities

Borowings from central banks2.61%273,2262,02653,857217,243100–

Deposits from banks and non-bank

financial institutions2.12%927,8874,808779,154143,925–

Placements from banks and non-bank

financial institutions3.00%86,32716544,84340,3191,000–

Financial liabilities at fair value

through profit or los1,588–519–81,061

Financial asets sold under repurchase

agrements2.13%463,018193458,4394,386–

Deposits from customers2.12%5,467,65799,1913,600,066681,1291,087,271–

Debt securities isued2.62%965,9814,104271,275466,722153,88569,995

Lease liabilities4.46%10,245–8322,1125,9981,303

Others121,880121,880–

Total liabilities8,317,809232,3675,208,9851,555,8361,248,26272,359

Interest rate gap734,675483,195(722,836)549,99682,345341,975

– F-116 –

31 December 2024
Net interest Income	Other comprehensive income
(3,372)	(6,403)
3,372	6,403

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited296

55 Financial risk management (continued)

(b) Market risk (continued)

Interest rate risk (continued)

Notes:

(i) Average interest rate represents the ratio of interest income/expense to average interest bearing asets/liabilities during the year.

(i) For loans and advances to customers, the “Les than thre months” category includes overdue amounts (net of alowance for impairment loses)

of RMB42,178 milion as at 31 December 2024 (as at 31 December 2023: RMB39,762 milion).

The Group uses sensitivity analysis to measure the potential efect of changes in interest rates on the Group’s

net interest income and Other comprehensive income . The folowing table sets forth the results of the Group’s

interest rate sensitivity analysis as at 31 December 2024 and 2023.

31 December 2023

Net interest

Income

Other

comprehensive

income

+100 basis points(3,103)(7,681)

– 100 basis points3,1037,681

This sensitivity analysis is based on a static interest rate risk profile of the Group’s non-derivative asets and

liabilities and certain asumptions as discused below. The analysis measures only the impact of changes in interest

rates within one year, showing how anualized interest income would have ben afected by repricing of the

Group’s non-derivative asets and liabilities within the one-year period. The analysis is based on the folowing

asumptions: (i) al asets and liabilities that reprice or mature within the thre months bracket, and the beyond

thre months but within one year bracket both are repriced or mature at the begining of the respective periods,

(i) it does not reflect the potential impact of unparaleled yield curve movements, and (i) there are no other

changes to the portfolio, al positions wil be retained and roled over upon maturity. The analysis does not take

into acount the efect of risk management measures taken by management. Due to the asumptions adopted,

actual changes in the Group’s net interest income and other comprehensive income resulted from increases or

decreases in interest rates may difer from the results of this sensitivity analysis.

Curency risk

Curency risk arises from the potential change of exchange rates that cause a los to the on-balance shet and

of-balance shet busines of the Group. The Group measures its curency risk with foreign curency exposures,

and manages its curency risk by spot and forward foreign exchange transactions and matching its foreign

curency denominated asets with coresponding liabilities in the same curency, as wel as using derivative

financial instruments, mainly foreign exchange swaps, to manage its exposure.

– F-117 –

31 December 2024
RMB	USD	HKD	Others	Total
RMB	(RMB equivalent)	(RMB equivalent)	(RMB equivalent)
327,032	12,720	907	256	340,915
85,607	36,476	2,009	4,101	128,193
309,905	42,845	48,040	4,011	404,801
133,855	2,410	–	–	136,265
5,311,058	144,969	113,703	31,720	5,601,450
630,378	12,648	3,146	1,226	647,398
1,111,220	7,342	–	427	1,118,989
666,480	133,849	33,473	15,979	849,781
4,417	217	68	–	4,702
266,000	14,684	15,910	3,634	300,228
8,845,952	408,160	217,256	61,354	9,532,722
124,151	–	–	–	124,151
943,456	23,967	778	291	968,492
61,494	25,745	896	415	88,550
313	215	1,191	–	1,719
263,688	10,752	–	3,563	278,003
5,360,385	258,715	197,147	48,064	5,864,311
1,201,622	17,335	2,165	2,916	1,224,038
9,968	36	784	73	10,861
76,685	24,483	60,297	3,767	165,232
8,041,762	361,248	263,258	59,089	8,725,357
804,190	46,912	(46,002)	2,265	807,365
2,201,100	92,517	12,648	13,289	2,319,554
51,373	(44,569)	45,529	(2,111)	50,222

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2972024 Anual Report

55 Financial risk management (continued)

(b) Market risk (continued)

Curency risk (continued)

The exposures at the reporting date were as folows:

Asets

Cash and balances with central

banks

Deposits with banks and non-

bank financial institutions

Placements with and loans to

banks and non-bank financial

institutions

Financial asets held under resale

agrements

Loans and advances to customers

Financial investments

— at fair value through profit

or los

— at amortised cost

— at fair value through other

comprehensive income

— designated at fair

value through other

comprehensive income

Others

Total asets

Liabilities

Borowings from central banks

Deposits from banks and non-

bank financial institutions

Placements from banks and non-

bank financial institutions

Financial liabilities at fair value

through profit or los

Financial asets sold under

repurchase agrements

Deposits from customers

Debt securities isued

Lease liability

Others

Total liabilities

Net on-balance shet position

Credit comitments

Derivatives (Note (i)51,373(44,569)45,529(2,111)50,222

– F-118 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited298

55 Financial risk management (continued)

(b) Market risk (continued)

Curency risk (continued)

31 December 2023

RMBUSDHKDOthersTotal

(RMB

equivalent)

(RMB

equivalent)

(RMB

equivalent)

Asets

Cash and balances with central

banks404,81210,786587257416,442

Deposits with banks and non-

bank financial institutions51,01723,9431,7374,37881,075

Placements with and loans to

banks and non-bank financial

institutions161,31443,83732,132459237,742

Financial asets held under resale

agrements102,1942,579–104,773

Loans and advances to customers5,102,314133,675117,14730,6145,383,750

Financial investments

— at fair value through profit

or los598,68710,1603,7161,261613,824

— at amortised cost1,074,42810,817–3531,085,598

— at fair value through other

comprehensive income733,21398,49142,19114,782888,677

— designated at fair

value through other

comprehensive income4,56517468–4,807

Others202,58615,31616,6401,254235,796

Total asets8,435,130349,778214,21853,3589,052,484

Liabilities

Borowings from central banks273,226–273,226

Deposits from banks and non-

bank financial institutions888,52437,999479885927,887

Placements from banks and non-

bank financial institutions58,43822,9892,5952,30586,327

Financial liabilities at fair value

through profit or los51981,061–1,588

Financial asets sold under

repurchase agrements442,49119,779–748463,018

Deposits from customers5,050,568237,047151,31028,7325,467,657

Debt securities isued940,71420,9623,330975965,981

Lease liability9,219408889810,245

Others92,88612,27911,6195,096121,880

Total liabilities7,756,585351,103171,28238,8398,317,809

Net on-balance shet position678,545(1,325)42,93614,519734,675

Credit comitments2,076,74792,9825,10113,1182,187,948

Derivatives (Note (i)17,8771,176(164)(15,443)3,446

Note:

(i) Derivatives represent the net notional amount of curency derivatives, including undelivered foreign exchange spot, foreign exchange forward,

foreign exchange swap and curency option.

– F-119 –

31 December 2024
Profit before tax	Other comprehensive income
93	8
(93)	(8)

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

2992024 Anual Report

55 Financial risk management (continued)

(b) Market risk (continued)

Curency risk (continued)

The Group uses sensitivity analysis to measure the potential efect of changes in foreign curency exchange rates

on the Group’s profit or los and other comprehensive income. The folowing table sets forth, as at 31 December

2024 and 2023, the results of the Group’s foreign exchange rate sensitivity analysis.

31 December 2023

Profit before tax

Other

comprehensive

income

5% apreciation2,095(10)

5% depreciation(2,095)10

This sensitivity analysis is based on a static foreign exchange exposure profile of asets and liabilities and certain

asumptions as folows: (i) the foreign exchange sensitivity is the gain and los realised as a result of 500 basis

point fluctuation in the foreign curency exchange rates against RMB at the reporting date, (i) the exchange

rates against RMB for al foreign curencies change in the same direction simultaneously and does not take into

acount the corelation efect of changes in diferent foreign curencies, and (i) the foreign exchange exposures

calculated include both spot foreign exchange exposures, forward foreign exchange exposure and options, and;

al positions wil be retained and roled over upon maturity. The analysis does not take into acount the efect

of risk management measures taken by management. Due to the asumptions adopted, actual changes in the

Group’s profit and other comprehensive income resulting from increases or decreases in foreign exchange rates

may difer from the results of this sensitivity analysis.

Liquidity risk arises when the Group, in meting the demand of liabilities due and other payment obligations

as wel as the neds of busines expansion, is unable to suficiently, timely or cost-efectively acquire funds. The

Group’s liquidity risk arises mainly from the mismatch of asets to liabilities and customers may concentrate

their withdrawals.

The Group has implemented overal liquidity risk management on the entity level. The headquarters has the

responsibility for developing the entire Group’s liquidity risk policies, strategies, and implements centralised

management of liquidity risk on the entity level. The domestic and foreign afiliates develop their own liquidity

policies and procedures within the Group’s liquidity strategy management framework, based on the requirements

of relevant regulatory bodies.

The Group manages liquidity risk by seting various indicators and operational limits acording to the overal

position of the Group’s asets and liabilities, with referencing to market condition. The Group holds asets

with high liquidity to met unexpected and material demand for payments in the ordinary course of busines.

The tols that the Group uses to measure and monitor liquidity risk mainly include:

– Liquidity gap analysis;

– Liquidity indicators (including but not limited to regulated and internal managed indicators, such as

liquidity coverage ratio, net stable funding ratio, loan-to-deposit ratio, liquidity ratio, liquidity gap rate,

exces reserves rate) monitoring;

– Scenario analysis;

– Stres testing.

On this basis, the Group establishes regular reporting mechanisms for liquidity risk to report the latest situation

of liquidity risk to the senior management on a timely basis.

– F-120 –

31 December 2024
Repayable on demand	Within one month	Between one month and three months	Between three months and one year	Between one and five years	More than five years	Undated	Total
Repayable on demand	Within one month	Between one month and three months	Between three months and one year	Between one and five years	More than five years	(Note (i))
11,699	–	–	4,178	–	–	325,038	340,915
97,144	4,488	7,117	19,444	–	–	–	128,193
–	94,012	76,768	175,217	58,804	–	–	404,801
–	135,562	703	–	–	–	–	136,265
13,537	578,960	522,345	1,161,484	1,502,071	1,798,422	24,631	5,601,450
–	28,832	41,228	70,247	24,108	59,508	423,475	647,398
–	16,626	38,226	184,878	597,173	254,872	27,214	1,118,989
–	18,768	32,693	105,146	505,293	187,351	530	849,781
–	–	–	–	–	–	4,702	4,702
47,570	20,694	21,806	42,262	77,435	8,949	81,512	300,228
169,950	897,942	740,886	1,762,856	2,764,884	2,309,102	887,102	9,532,722

31 December 2024
Repayable on demand	Within one month	Between one month and three months	Between three months and one year	Between one and five years	More than five years	Undated	Total
Repayable on demand	Within one month	Between one month and three months	Between three months and one year	Between one and five years	More than five years	(Note (i))
–	31,605	27,775	64,771	–	–	–	124,151
505,294	165,422	227,196	70,580	–	–	–	968,492
–	8,352	41,339	35,403	3,158	298	–	88,550
–	–	–	15	1,652	52	–	1,719
–	113,633	118,957	45,413	–	–	–	278,003
2,588,659	473,087	667,866	1,100,725	1,033,974	–	–	5,864,311
–	32,991	233,913	735,791	150,723	70,620	–	1,224,038
–	319	471	2,122	6,595	1,354	–	10,861
43,700	21,203	17,570	35,415	24,376	9,986	12,982	165,232
3,137,653	846,612	1,335,087	2,090,235	1,220,478	82,310	12,982	8,725,357
(2,967,703)	51,330	(594,201)	(327,379)	1,544,406	2,226,792	874,120	807,365

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited300

55 Financial risk management (continued)

Analysis of the remaining contractual maturity of asets and liabilities

Asets

Cash and balances with central banks

Deposits with banks and non-bank

financial institutions

Placements with and loans to banks

and non-bank financial institutions

Financial asets held under

resale agrements

Loans and advances to customers

(Note (i)

Financial investments

— at fair value through profit or los

— at amortised cost

— at fair value through other

comprehensive income

— de signated at fair value through

other comprehensive income

Others

Total asets169,950897,942740,8861,762,8562,764,8842,309,102887,1029,532,722

Liabilities

Borowings from central banks

Deposits from banks and non-bank

financial institutions

Placements from banks and

non-bank financial institutions

Financial liabilities at fair value

through profit or los

Financial asets sold under

repurchase agrements

Deposits from customers

Debt securities isued

Lease liabilities

Others

Total liabilities

(Short)/Long position(2,967,703)51,330(594,201)(327,379)1,544,4062,226,792874,120807,365

– F-121 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

3012024 Anual Report

55 Financial risk management (continued)

31 December 2023

Repayable

on demand

Within

one month

Betwen

one month

and thre

months

Betwen

thre

months and

one year

Betwen

one and

five years

More than

five yearsUndatedTotal

(Note (i)

Asets

Cash and balances with central banks57,118–2,926–356,398416,442

Deposits with banks and non-bank

financial institutions45,9273,8735,05226,031–19281,075

Placements with and loans to banks

and non-bank financial institutions–71,17516,314148,7521,501–237,742

Financial asets held under

resale agrements–103,819954–104,773

Loans and advances to customers

(Note (i)14,349589,646531,7211,095,5561,367,9251,749,01235,5415,383,750

Financial investments

— at fair value through profit or los–41,01442,53087,30611,72515,021416,228613,824

— at amortised cost–17,48629,524186,182634,834191,91125,6611,085,598

— at fair value through other

comprehensive income–57,88460,515134,949440,219194,134976888,677

— de signated at fair value through

other comprehensive income–4,8074,807

Others45,18419,41018,47213,65863,2701,79774,005235,796

Total asets162,578904,307705,0821,695,3602,519,4742,151,875913,8089,052,484

31 December 2023

Repayable

on demand

Within

one month

Betwen

one month

and thre

months

Betwen

thre

months and

one year

Betwen

one and

five years

More than

five yearsUndatedTotal

(Note (i)

Liabilities

Borowings from central banks–20,00035,883217,343–273,226

Deposits from banks and non-bank

financial institutions496,771118,600168,140144,376–927,887

Placements from banks and

non-bank financial institutions–23,41720,13639,7393,035–86,327

Financial liabilities at fair value

through profit or los–519–81,061–1,588

Financial asets sold under

repurchase agrements–401,98056,6524,386–463,018

Deposits from customers2,638,317599,263461,262681,5321,087,283–5,467,657

Debt securities isued–53,569217,730467,229156,83070,623–965,981

Lease liabilities–3584742,1125,9981,303–10,245

Others46,09610,79010,95412,98324,2054,51212,340121,880

Total liabilities3,181,1841,227,977971,7501,569,7001,277,35977,49912,3408,317,809

(Short)/Long position(3,018,606)(323,670)(266,668)125,6601,242,1152,074,376901,468734,675

– F-122 –

31 December 2024
Repayable on demand	Within one month	One month and three months	Three months and one year	One and five years	More than five years	Undated	Total
Repayable on demand	Within one month	One month and three months	Three months and one year	One and five years	More than five years	(Note (i))
11,699	–	1,324	8,302	–	–	325,038	346,363
97,144	4,559	7,401	20,284	–	–	–	129,388
–	94,145	76,887	175,483	59,417	–	–	405,932
–	135,580	703	–	–	–	–	136,283
13,537	589,458	555,519	1,273,664	1,806,400	2,159,588	29,495	6,427,661
–	28,876	41,308	71,222	26,697	61,577	423,475	653,155
–	18,669	44,336	207,281	662,182	274,729	27,769	1,234,966
–	19,863	34,737	119,731	557,246	213,611	530	945,718
–	–	–	–	–	–	4,702	4,702
47,570	20,694	21,806	42,262	77,435	8,949	81,512	300,228
169,950	911,844	784,021	1,918,229	3,189,377	2,718,454	892,521	10,584,396

31 December 2024
Repayable on demand	Within one month	One month and three months	Three months and one year	One and five years	More than five years	Undated	Total
Repayable on demand	Within one month	One month and three months	Three months and one year	One and five years	More than five years	(Note (i))
–	32,368	28,459	66,060	–	–	–	126,887
505,294	165,815	230,735	77,803	–	–	–	979,647
–	8,358	41,352	35,485	3,158	507	–	88,860
–	–	–	15	1,658	74	–	1,747
–	113,809	119,124	45,485	–	–	–	278,418
2,588,659	480,649	684,519	1,160,859	1,120,928	–	–	6,035,614
–	32,991	234,323	742,810	166,662	77,398	–	1,254,184
–	319	474	2,173	7,612	1,649	–	12,227
43,700	21,203	17,570	35,415	24,376	9,986	12,982	165,232
3,137,653	855,512	1,356,556	2,166,105	1,324,394	89,614	12,982	8,942,816
(2,967,703)	56,332	(572,535)	(247,876)	1,864,983	2,628,840	879,539	1,641,580
–	527	2,079	(2,600)	345	28	–	379
–	(909)	(1,532)	645	314	–	–	(1,482)
–	1,090,891	903,359	2,342,900	211,124	1,114	–	4,549,388
–	(1,091,800)	(904,891)	(2,342,255)	(210,810)	(1,114)	–	(4,550,870)

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited302

55 Financial risk management (continued)

The tables below present the cash flows of the Group’s financial asets and liabilities. The amounts disclosed in

the table are the contractual undiscounted cash flow:

Non-derivative cash flow

Asets

Cash and balances with central banks

Deposits with banks and

non-bank financial institutions

Placements with and loans to banks

and non-bank financial institutions

Financial asets held under

resale agrements

Loans and advances to customers

(Note (i)

Financial investments

— at fair value through profit or los

— at amortised cost

— at fair value through other

comprehensive income

— de signated at fair value through

other comprehensive income

Others

Total asets169,950911,844784,0211,918,2293,189,3772,718,454892,52110,584,396

Liabilities

Borowings from central banks

Deposits from banks and

non-bank financial institutions

Placements from banks and

non-bank financial institutions

Financial liabilities at fair value

through profit or los

Financial asets sold under

repurchase agrements

Deposits from customers

Debt securities isued

Lease liability

Others

Total liabilities

(Short)/Long position

Derivative cash flow

Derivative financial instrument

setled on a net basis

Derivative financial instruments

setled on a gros basis

— cash inflow

— cash outflow–(1,091,800)(904,891)(2,342,255)(210,810)(1,114)–(4,550,870)

– F-123 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

3032024 Anual Report

55 Financial risk management (continued)

31 December 2023

Repayable

on demand

Within

one month

One month

and thre

months

Thre

months and

one year

One and

five years

More than

five yearsUndatedTotal

(Note (i)

Non-derivative cash flow

Asets

Cash and balances with central banks57,118–1,4597,565–356,398422,540

Deposits with banks and

non-bank financial institutions45,9273,9565,25126,809–19282,135

Placements with and loans to banks

and non-bank financial institutions–71,25617,223151,3431,550–241,372

Financial asets held under

resale agrements–103,852954–104,806

Loans and advances to customers

(Note (i)14,349600,023563,6731,197,9431,733,0772,107,86935,5416,252,475

Financial investments

— at fair value through profit or los–41,01642,82289,35313,11417,256416,228619,789

— at amortised cost–17,62331,546210,463702,595212,50826,8111,201,546

— at fair value through other

comprehensive income–57,89461,511150,851494,372222,304976987,908

— de signated at fair value through

other comprehensive income–4,8074,807

Others45,18419,41018,47213,65863,2701,79774,006235,797

Total asets162,578915,030742,9111,847,9853,007,9782,561,734914,95910,153,175

31 December 2023

Repayable

on demand

Within

one month

One month

and thre

months

Thre

months and

one year

One and

five years

More than

five yearsUndatedTotal

(Note (i)

Liabilities

Borowings from central banks–20,00036,040222,765–278,805

Deposits from banks and

non-bank financial institutions496,771119,468172,987153,100–942,326

Placements from banks and

non-bank financial institutions–23,57722,50440,4153,302–89,798

Financial liabilities at fair value

through profit or los–519–172,121–2,657

Financial asets sold under

repurchase agrements–402,34056,9164,490–463,746

Deposits from customers2,638,318607,021471,849808,3721,224,844–5,750,404

Debt securities isued–53,769222,310486,317175,64979,910–1,017,955

Lease liability- 3594772,1636,7451,567- 11,311

Others46,09610,79010,95412,98324,2054,51212,340121,880

Total liabilities3,181,1851,237,324994,5561,730,6051,434,76288,11012,3408,678,882

(Short)/Long position(3,018,607)(322,294)(251,645)117,3801,573,2162,473,624902,6191,474,293

Derivative cash flow

Derivative financial instrument setled

on a net basis–4978(45)26125–368

Derivative financial instruments setled

on a gros basis–(211)(1,263)(1,958)19(17)–(3,430)

— cash inflow–804,403800,5881,251,430217,4111,281–3,075,113

— cash outflow–(804,614)(801,851)(1,253,388)(217,392)(1,298)–(3,078,543)

– F-124 –

31 December 2024
Less than 1 year	1-5 years	Over 5 years	Total
854,489	–	–	854,489
812,562	–	–	812,562
163,520	109,710	348	273,578
8,509	17,002	28,553	54,064
323,768	1,093	–	324,861
2,162,848	127,805	28,901	2,319,554

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited304

55 Financial risk management (continued)

Credit Comitments include bank aceptances, credit card comitments, guarantes, loan comitments and

leters of credit. The tables below sumarise the amounts of credit comitments by remaining contractual

maturity.

Bank aceptances

Credit card comitments

Guarantes

Loan comitments

Leters of credit

Total2,162,848127,80528,9012,319,554

31 December 2023

Les than 1 year1-5 yearsOver 5 yearsTotal

Bank aceptances867,523–867,523

Credit card comitments779,947–779,947

Guarantes154,92781,806626237,359

Loan comitments4,28811,88930,59146,768

Leters of credit255,478873–256,351

Total2,062,16394,56831,2172,187,948

Notes:

(i) For cash and balances with central banks, the undated period amount represented statutory deposit reserve funds and fiscal deposits maintained

with the PBOC. For loans and advances to customers and investments, the undated period amount represented the balances being credit-impaired

or overdue for more than one month. Equity investments and investment funds were also reported under undated period.

(i) The balances of loans and advances to customers which were overdue within one month but not impaired are included in repayable on demand.

(d) Operational risk

Operational risk refers to the risk of los arising from inapropriate or problematic internal procedures, personel,

IT systems, or external events, including legal risk, but excluding strategic risk and reputational risk.

The Group manages operational risk through deply aplying the thre major tols of operational risk management

by establishing a sound mechanism of operational risk management in order to identify, evaluate, measure,

monitor, control, mitigate and report operational risks. Internal control, as an efective means of operational

risk management, mainly includes the folowing aspects:

– by establishing a matrix authorisation management system of the whole group, carying out the anual

unified authorisation work, and strictly restricting the institutions and personel at al levels to cary out

busines activities within the scope of authority granted, the management requirements of prohibiting the

oversteping of authority to engage in busines activities were further clarified at the institutional level;

– F-125 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

3052024 Anual Report

55 Financial risk management (continued)

(d) Operational risk (continued)

– through consistent legal responsibility framework, taking strict disciplinary actions against non-compliance

in order to ensure acountability;

– promoting the culture establishments throughout the organisation; building a team of operational risk

management, strength training and performance apraisal management in raising risk management

awarenes;

– strengthening cash and acount management in acordance with the relevant policies and procedures,

intensifying the monitoring of suspicious transactions. Ensure our staf are wel-equiped with the

necesary knowledge and basic skils on anti-money laundering through continuous training;

– Disaster backup systems and recovery plans covering al the important activities, in order to minimize any

unforesen interuption. Insurance cover is aranged to mitigate potential loses asociated with certain

disruptive events.

In adition to the above, the Group improves its operational risk management information systems on an ongoing

basis to eficiently identify, evaluate, measure, monitor, control, mitigate and report its level of operational risk.

The Group’s management information system has the functionalities of recording and capturing lost data and

events of operational risk to further suport operational risk control and self-asesment, monitoring key risk

indicators, suporting operational risk capital measurement, as wel as providing operational risk management

report content.

56 Capital Adequacy Ratio

Capital adequacy ratio reflects the Group’s operational and risk management capability and it is the core of capital

management. The Group considers its strategic development plans, busines expansion plans and risk variables in

conducting its scenario analysis, stres testing and other measures to forecast, plan and manage capital adequacy ratio.

The Group’s capital management objectives are to met the legal and regulatory requirements, and to prudently determine

the capital adequacy ratio under realistic exposures with reference to the capital adequacy ratio levels of leading global

banks and the Group’s operating situations.

From 1 January 2024, the Group comenced the computation of its capital adequacy ratios in acordance with the

Regulation Governing Capital of Comercial Banks and other relevant regulations promulgated by the NFRA in the

year of 2023. Acording to the requirements, for credit risk, the capital requirement was measured using the weighting

method. The market and operational risk were measured by adopting the standardised aproach. The requirements

pursuant to these regulations may have certain diferences comparing to those aplicable in Hong Kong and other

jurisdictions. The Group’s management monitors the Group’s and the Bank’s capital adequacy regularly based on

regulations isued by the NFRA. The required information is filed with the NFRA by the Group and the Bank regularly.

– F-126 –

31 December 2024
9.72%
11.26%
13.36%
54,397
89,282
16,553
67,606
111,723
343,599
8,604
691,764
(1,060)
(3,566)
(4)
687,134
108,619
795,753
69,992
75,939
2,476
944,160
7,068,736

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited306

56 Capital Adequacy Ratio (continued)

As at 31 December 2024, the core Tier-One capital adequacy ratio, Tier-One capital adequacy ratio, and capital

adequacy ratio computed by the Group in acordance with the Regulation Governing Capital of Comercial Banks

and other relevant regulations are listed as below:

Core Tier-One capital adequacy ratio

Tier-One capital adequacy ratio

Capital adequacy ratio

Components of capital base

Core Tier-One capital:

Share capital

Capital reserve

Other comprehensive income and qualified portion of other equity instruments

Surplus reserve

General reserve

Retained earnings

Qualified portion of non-controling interests

Total core Tier-One capital

Core Tier-One capital deductions:

Godwil (net of related defered tax liability)

Other intangible asets other than land use right (net of related defered tax liability)

Unrealized gains and loses resulting from changes in the fair value of its liabilities due to

changes in its own credit risk

Net core Tier-One capital

Other Tier-One capital (Note (i)

Tier-One capital

Tier-Two capital:

Qualified portion of Tier-Two capital instruments isued and share premium

Surplus alowance for loan impairment

Qualified portion of non-controling interests

Net capital base

Total risk-weighted asets

– F-127 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

3072024 Anual Report

56 Capital Adequacy Ratio (continued)

As at 31 December 2023, the core Tier-One capital adequacy ratio, Tier-One capital adequacy ratio, and capital

adequacy ratio computed by the Group in acordance with the Regulation Governing Capital of Comercial Banks

(Trial) isued by the former China Banking and Insurance Regulatory Comision in 2012 are listed as below:

31 December

Core Tier-One capital adequacy ratio8.99%

Tier-One capital adequacy ratio10.75%

Capital adequacy ratio12.93%

Components of capital base

Core Tier-One capital:

Share capital48,967

Capital reserve59,410

Other comprehensive income and qualified portion of other equity instruments7,224

Surplus reserve60,992

General reserve105,127

Retained earnings320,802

Qualified portion of non-controling interests8,287

Total core Tier-One capital610,809

Core Tier-One capital deductions:

Godwil (net of related defered tax liability)(926)

Other intangible asets other than land use right (net of related defered tax liability)(4,727)

Net core Tier-One capital605,156

Other Tier-One capital (Note (i)118,313

Tier-One capital723,469

Tier-Two capital:

Qualified portion of Tier-Two capital instruments isued and share premium69,995

Surplus alowance for impairment73,674

Qualified portion of non-controling interests2,715

Net capital base869,853

Total risk-weighted asets6,727,713

Note:

(i) As at 31 December 2024 and 31 December 2023, the Group’s other Tier-One capital included preference shares, perpetual bonds isued by the Bank

(Note 43) and non-controling interests (Note 49).

– F-128 –

31 December 2024		31 December 2024
1,085,598
1,118,989		1,143,541
1,430 140,599 77,781 705,316 40,855
1,470		1,480
210,029		212,115
74,264		77,097
931,004		932,348
7,271		7,690

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited308

57 Fair value

Fair value estimates are generaly subjective in nature, and are made as of a specific point in time based on the

characteristics of the financial instruments and relevant market information. The Group uses the folowing hierarchy

for determining and disclosing the fair value of financial instruments:

Level 1: Quoted prices (unadjusted) in active markets for identical asets or liabilities that the Group can aces at

the measurement date. This level includes listed equity instruments and debt instruments on exchanges

and exchange-traded derivatives.

Level 2: Inputs other than quoted prices included within Level 1 are observable for asets or liabilities, either

directly or indirectly. The asets clasified into the level 2 include bond investment without active market

quotation, part of the bils rediscounting and forfeiting in loans and advances, part of the investment

management products managed by securities companies and trust investment plans, as wel as a majority

of over-the-counter derivative contracts. The bonds are determined acording to the valuation results of

China Central Depository & Clearing Corporate Limited or Blomberg; Foreign exchange forward and

swaps, interest rate swap use discount cash flow evaluation method; Foreign exchange options use Option

Pricing Model; Bils rediscounting, forfeiting, investment management products managed by securities

companies and trust investment plans use discount cash flow evaluation method to estimate fair value.

Input parameters are sourced from the open market such as Blomberg and Reuters.

Level 3: Inputs for asets or liabilities are based on unobservable parameters. This level includes equity instruments

and debt instruments with one or more than one significant unobservable parameter.Management

determines the fair value through inquiring from counterparties or using the valuation techniques. The

model incorporates unobservable parameters such as discount rate and market price volatilities.

For the year ended 31 December 2024, there was no significant change in the valuation techniques or inputs used to

determine fair value measurements.

(a) Financial asets and financial liabilities not measured at fair value

Financial asets and liabilities not caried at fair value of the Group include cash and balances with central

banks, deposits with banks and non-bank financial institutions, placements with and loans to banks and non-

bank financial institutions, financial asets held under resale agrements, loans and advances to customers at

amortised cost, financial investments at amortised cost, borowings from central banks, deposits from banks

and non-bank financial institutions, placements from banks and non-bank financial institutions, financial asets

sold under repurchase agrements, deposits from customers and debt securities isued.

Except for the items shown in the tables below, the maturity dates of aforesaid financial asets and liabilities are

within a year or are mainly floating interest rates, as a result, their carying amounts are aproximately equal

to their fair value.

Carying valuesFair values

31 December

Financial asets:

Financial investments

— at amortised cost1,093,861

Financial liabilities:

Debt securities isued

— ce rtificates of deposit (not for

trading purpose) isued1,430

— debt securities isued141,123

— subordinated bonds isued78,722

— ce rtificates of interbank

deposit isued694,130

— convertible corporate bonds44,666

– F-129 –

31 December 2024
Level 1	Level 2	Level 3	Total
2,444	949,679	191,418	1,143,541
–	–	1,480	1,480
4,784	204,554	2,777	212,115
3,781	73,316	–	77,097
29,663	902,685	–	932,348
–	–	7,690	7,690

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

3092024 Anual Report

57 Fair value (continued)

(a) Financial asets and financial liabilities not measured at fair value (continued)

Fair value of financial asets and liabilities above at fair value hierarchy is as folows:

Financial asets:

Financial investments

— at amortised cost

Financial liabilities:

Debt securities isued

— ce rtificates of deposit (not for

trading purpose) isued

— debt securities isued

— subordinated bonds isued

— certificates of interbank

deposit isued

— co nvertible corporate bonds

isued–7,6907,690

31 December 2023

Level 1Level 2Level 3Total

Financial asets:

Financial investments

— at amortised cost8,885871,585213,3911,093,861

Financial liabilities:

Debt securities isued

— ce rtificates of deposit (not for

trading purpose) isued–1,4301,430

— debt securities isued4,671136,452–141,123

— subordinated bonds isued7,25571,467–78,722

— ce rtificates of interbank

deposit isued–694,130–694,130

— co nvertible corporate bonds

isued–44,66644,666

– F-130 –

Level 1	Level 2	Level 3	Total
(Note (i))	(Note (i))	(Note (ii))
–	76,032	–	76,032
–	447,719	–	447,719
–	–	11,612	11,612
128,148	291,036	8,413	427,597
2,317	145,632	5,615	153,564
–	57,626	–	57,626
41	688	1,402	2,131
–	–	1,267	1,267
449	–	4,764	5,213
134,051	697,228	216	831,495
1,766	10,095	–	11,861
216	–	4,486	4,702
1	21,143	–	21,144
–	64,282	–	64,282
–	503	–	503
266,989	1,811,984	37,775	2,116,748
94	–	–	94
–	–	1,625	1,625
3	20,788	–	20,791
–	57,090	–	57,090
–	3,281	–	3,281
97	81,159	1,625	82,881

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited310

57 Fair value (continued)

(b) Financial asets and financial liabilities measured at fair value

As at 31 December 2024

Recuring fair value measurements

Asets

Loans and advances to customers

at fair value through other

comprehensive income

— loans

— discounted bils

Loans and advances to customers at

fair value through curent profit

or los

Financial investments at fair value

through profit or los

— investment funds

— debt securities

— certificates of deposit

— wealth management

— trust investment plans

— equity instruments

Financial investments at fair value

through other comprehensive

income

— debt securities

— certificates of deposit

Financial investments designated

at fair value through other

comprehensive income

— equity instruments

Derivative financial asets

— interest rate derivatives

— curency derivatives

— precious metals derivatives

Total financial asets measured at

fair value

Liabilities

Financial liabilities at fair value

through profit or los

— short position in debt

securities

— structured products

Derivative financial liabilities

— interest rate derivatives

— curency derivatives

— precious metals derivatives

Total financial liabilities

measured at fair value9781,1591,62582,881

– F-131 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

3112024 Anual Report

57 Fair value (continued)

(b) Financial asets and financial liabilities measured at fair value (continued)

Level 1Level 2Level 3Total

(Note (i)(Note (i)(Note (i)

As at 31 December 2023

Recuring fair value measurements

Asets

Loans and advances to customers

at fair value through other

comprehensive income

— loans–58,163–58,163

— discounted bils–515,664–515,664

Loans and advances to customers at

fair value through curent profit

or los–5,5585,558

Financial investments at fair value

through profit or los

— investment funds105,538271,29744,319421,154

— debt securities19,60881,4285,465106,501

— certificates of deposit–75,790–75,790

— wealth management5142,0981,4334,045

— equity instruments892145,4286,334

Financial investments at fair value

through other comprehensive

income

— debt securities139,599737,350475877,424

— certificates of deposit1,1173,805–4,922

Financial investments designated

at fair value through other

comprehensive income

— equity instruments173–4,6344,807

Derivative financial asets

— interest rate derivatives1514,641–14,656

— curency derivatives2729,845–29,872

— precious metals derivatives–147–147

Total financial asets measured at

fair value267,4831,790,24267,3122,125,037

Liabilities

Financial liabilities at fair value

through profit or los

— short position in debt

securities8519–527

— structured products–1,0611,061

Derivative financial liabilities

— interest rate derivatives1814,342–14,360

— curency derivatives14826,600–26,748

— precious metals derivatives–742–742

Total financial liabilities measured

at fair value17442,2031,06143,438

– F-132 –

Assets					Liabilities
Financial assets at fair value through profit or loss	Financial assets at fair value through other comprehensive income	Financial assets designated at fair value through other comprehensive income	Loans and advances to customers	Total	Financial liabilities at fair value through profit or loss	Total
56,645	475	4,634	5,558	67,312	(1,061)	(1,061)
2,169	–	–	87	2,256	–	–
–	(415)	(158)	–	(573)	–	–
9,208	255	–	6,339	15,802	(525)	(525)
(1,689)	(102)	–	(624)	(2,415)	–	–
(45,122)	–	–	–	(45,122)	–	–
250	3	10	252	515	(39)	(39)
21,461	216	4,486	11,612	37,775	(1,625)	(1,625)

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited312

57 Fair value (continued)

(b) Financial asets and financial liabilities measured at fair value (continued)

Notes:

(i) During the curent period, there were no significant transfers amongst Level 1, Level 2 and Level 3 of the fair value hierarchy.

(i) The folowing table shows a reconciliation from the begining balances to the ending balances for fair value measurements in the Level 3 fair

value hierarchy:

As at 1 January 2024

Total gains or loses

— in profit or los

— in comprehensive income

Purchases

Setlements

Transfer out

Exchange efect

As at 31 December 2024

AsetsLiabilities

Financial asets

at fair value

through profit

or los

Financial asets

at fair value

through other

comprehensive

income

Financial asets

designated

at fair value

through other

comprehensive

income

Loans and

advances to

customersTotal

Financial

liabilities at fair

value through

profit or losTotal

As at 1 January 202338,3484064,8363,88147,471(1,034)(1,034)

Total gains or loses

— in profit or los770–25795–

— in comprehensive income–39761–458–

Purchases18,523333911,61220,559–

Setlements(2,020)(678)(359)(72)(3,129)–

Transfer out80613–819–

Exchange efect21845112339(27)(27)

As at 31 December 202356,6454754,6345,55867,312(1,061)(1,061)

For unlisted equity investments, fund investments, bond investments, structured products, the Group determines

the fair value through counterparties’ quotations and valuation techniques, etc. Valuation techniques include

discounted cash flow analysis and the market comparison aproach, etc. The fair value measurement of these

financial instruments may involve important unobservable inputs such as credit spread and liquidity discount,

etc. The fair value of the financial instruments clasified under level 3 is not significantly influenced by the

reasonable changes in these unobservable inputs.

– F-133 –

Year ended 31 December 2024
Ultimate holding company and affiliates	The ultimate parent company and its subsidiaries of other important holding companies	Associates and joint ventures
Ultimate holding company and affiliates	Notes (i)
3,646	1,091	232
289	40	2
(1,945)	(3,398)	(27)
58	42	–
(3,358)	(717)	(65)

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

3132024 Anual Report

58 Related parties

(a) Relationship of related parties

(i) The Group is controled by CITIC Financial Holding Co., Ltd (incorporated in Mainland China), which

owns 65.69% of the Bank’s shares. The ultimate parent of the Group is CITIC Group (incorporated in

Mainland China).

(i) Related parties of the Group include enterprises controled, jointly controled and exerting significant

influence by CITIC Group, and enterprises controled by China National Tobaco Corporation and

Quzhou Industrial Holding Group Co., Ltd.The Bank entered into banking transactions with its

subsidiaries at arm’s length in the ordinary course of busines. These transactions are eliminated on

consolidation.

China National Tobaco Corporation (“CNTC”) and Quzhou Xin’an Development Co., Ltd. have a non-

executive director on the Board of Directors of the Bank, which can exert significant influence on the Bank

and constitute a related party of the Bank.

(b) Related party transactions

The Group entered into transactions with related parties in the ordinary course of its banking busineses

including lending, asets transfer (i.e., isuance of aset-backed securities in the form of public placement),

wealth management, investment, deposit, setlement and clearing, of-balance shet transactions, and purchase,

sale, and leases of property. These banking transactions were conducted under normal comercial terms and

conditions and priced at the relevant market rates prevailing at the time of each transaction.

The major related party transaction betwen the Group and related parties are submited in turn to the board

of directors for deliberation, and the relevant anouncements have ben posted on the websites of the Shanghai

Stock Exchange, the Hong Kong Stock Exchange and the Bank.

In adition, transactions during the relevant year and the coresponding balances outstanding at the reporting

dates are as folows:

Profit and los

Interest income

Fe and comision income and other

operating income/expense

Interest expense

Net trading gains

Other service fes(3,358)(717)(65)

– F-134 –

31 December 2024
Ultimate holding company and affiliates	The ultimate parent company and its subsidiaries of other important holding companies	Associates and joint ventures
Ultimate holding company and affiliates	Notes (i)
48,915	20,794	–
(545)	(9)	–
48,370	20,785	–
100	–	25,500
56,865	–	–
1,275	–	–
1,601	–	–
4,267	–	–
18,187	2,625	–
5,410	1,942	–
453	–	–
–	–	7,349
39	2	–
76	–	–
367	–	40
581	1	–
47,214	853	305
348	–	–
1,132	–	–
72,909	199,703	1
77	–	–
707	–	23
8,404	12,395	–
2,692	–	–
255,460	–	–

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited314

58 Related parties (continued)

(b) Related party transactions (continued)

Year ended 31 December 2023

Ultimate holding

company and

afiliates

The ultimate

parent company

and its subsidiaries

of other

important holding

companies

Asociates and

joint ventures

Notes (i)

Profit and los

Interest income5,063837315

Fe and comision income and other

operating income/expense3351342

Interest expense(2,278)(2,887)(25)

Net trading gains/(loses)111(18)–

Other service fes(2,214)(863)(89)

Asets

Gros loans and advances to customers

Les: alowance for impairment loses on loans

and advances

Loans and advances to customers (net)

Deposits with banks and non-bank financial

institutions

Placements with and loans to banks and non-

bank financial institutions

Derivative financial asets

Financial asets held under resale agrement

Investment in financial asets

— at fair value through profit or los

— at amortised cost

— at fair value through other

comprehensive income

— de signated at fair value through other

comprehensive income

Investments in asociates and joint ventures

Property, plant and equipment

Right-of-use asets

Intangible asets

Other asets

Liabilities

Deposits from banks and non-bank financial

institutions

Placements with and loans to banks and non-

bank financial institutions

Derivative financial liabilities

Deposits from customers

Lease liabilities

Other liabilities

Of-balance shet items

Guarantes and leters of credit

Aceptances

Nominal amount of derivatives financial

instruments255,460–

– F-135 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

3152024 Anual Report

58 Related parties (continued)

(b) Related party transactions (continued)

31 December 2023

Ultimate holding

company and

afiliates

The ultimate

parent company

and its subsidiaries

of other

important holding

companies

Asociates and

joint ventures

Notes (i)

Asets

Gros loans and advances to customers45,58417,512–

Les: alowance for impairment loses on loans

and advances(989)(70)–

Loans and advances to customers (net)44,59517,442–

Deposits with banks and non-bank financial

institutions–29,506

Placements with and loans to banks and non-

bank financial institutions33,850–

Derivative financial asets546–

Financial asets held under resale agrement3,000–

Investment in financial asets

— at fair value through profit or los3,255–

— at amortised cost17,4352,325–

— at fair value through other

comprehensive income4,3601,223–

— de signated at fair value through other

comprehensive income460–

Investments in asociates and joint ventures–6,942

Other asets70923

Liabilities

Deposits from banks and non-bank financial

institutions53,4241,307125

Derivative financial liabilities424–

Deposits from customers75,466157,9741

Lease liabilities732–

Other liabilities93–23

Of-balance shet items

Guarantes and leters of credit5,1878,821–

Aceptances1,913–

Nominal amount of derivatives financial

instruments160,188–

Note:

(i) Other major equity holders include CNTC and Quzhou Xin’an Development Co., Ltd.

The related party transactions and balances betwen the Group and CNTC, Quzhou Industrial Holding Group

Co., Ltd. and its controled enterprises disclosed above fel into the period when related party relationship exists.

During the year ended 31 December 2024, the transactions betwen the Group and the subsidiaries of CNTC

were not significant.

– F-136 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited316

58 Related parties (continued)

Key management personel are those persons who have the authority and responsibility for planing, directing

and controling the activities of the Group, directly or indirectly, including directors, supervisors and executive

oficers.

The Group entered into banking transactions with key management personel and their close family members

and those companies controled or jointly controled by them in the normal course of busines. Other than those

disclosed below, there was no material transactions and balances betwen the Group and these individuals, their

close family members or those companies controled or jointly controled by them.

The agregate amount of relevant loans outstanding as at 31 December 2024 to directors, supervisors and

executive oficers is Nil (as at 31 December 2023: RMB0.57 milion).

The agregated compensations for directors, supervisors and executive oficers of the Bank during the year ended

31 December 2024 amounted to RMB24.58 milion (year ended 31 December 2023: RMB27.14 milion).

(d) Suplementary defined contribution plan

The Group has established a suplementary defined contribution plan for its qualified employes which is

administered by CITIC Group (Note 37(b).

(e) Transactions with state-owned entities in the PRC

The Group operates in an economic regime curently predominated by entities directly or indirectly owned by the

PRC government through its government authorities, agencies, afiliations and other organisations (colectively

refered to as “state-owned entities”).

Transactions with state-owned entities, including CNTC’s indirect subsidiaries and its controled enterprises,

include but are not limited to the folowing:

– lending and deposit taking;

– taking and placing of inter-bank balances;

– derivative transactions;

– entrusted lending and other custody services;

– insurance and securities agency, and other intermediary services;

– sale, purchase, underwriting and redemption of bonds isued by state-owned entities;

– purchase, sale and leases of property and other asets; and

– rendering and receiving of utilities and other services.

These transactions are conducted in the ordinary course of the Group’s banking busines on terms similar to

those that would have ben entered into with non-state-owned entities. The Group has also established its pricing

strategy and aproval proceses for major products and services, such as loans, deposits and comision income.

The pricing strategy and aproval proceses do not depend on whether the customers are state-owned entities

or not. The Directors are of opinion that none of these transactions are material related party transactions that

require separate disclosure.

– F-137 –

31 December 2024
Carrying amount
Investments in financial assets at fair value through profit or loss	Investments in financial assets at amortised costs	Investments in financial assets at fair value through other comprehensive income	Total	Maximum loss exposure
2,131	–	–	2,131	2,131
–	20,162	–	20,162	20,162
1,267	189,906	–	191,173	191,173
840	76,613	34,056	111,509	111,509
427,597	–	–	427,597	427,597
431,835	286,681	34,056	752,572	752,572

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

3172024 Anual Report

59 Structured entities

(a) Consolidated structured entities

Structured entities consolidated by the Group include certain aset management plans, isued, managed and/or

invested by the Group. The Group controls these entities because the Group has power over, is exposed to, or

has right to variable returns from its involvement with these entities and has the ability to use its power over

these entities to afect the amount of the Group’s returns.

(b) Unconsolidated structured entities sponsored and managed by third parties

The Group invests in unconsolidated structured entities which are sponsored and managed by other entities

for investment return, and records trading gains or loses and interest income therefrom. These unconsolidated

structured entities primarily include wealth management products, trust investment plans, investment management

products, investment funds and aset-backed securities.

The folowing table sets out an analysis of the carying amounts of interests held by the Group as at 31 December

2024 in the structured entities sponsored by third party institutions, as wel as an analysis of the line items in

the consolidated anual statement of financial position under which relevant asets are recognized:

Wealth management product

Investment management

products managed by

securities companies

Trust investment plans

Aset-backed securities

Investment funds

Total431,835286,68134,056752,572752,572

31 December 2023

Carying amount

Investments in

financial asets

at fair value

through profit

or los

Investments in

financial asets

at amortised

costs

Investments in

financial asets

at fair value

through other

comprehensive

incomeTotal

Maximum los

exposure

Wealth management product4,045–4,0454,045

Investment management

products managed by

securities companies–22,908–22,90822,908

Trust investment plans–204,840–204,840204,840

Aset-backed securities912123,15819,666143,736143,736

Investment funds421,154–421,154421,154

Total426,111350,90619,666796,683796,683

The maximum exposures to risk in the above wealth management products, trust investment plans, investment

management products, investment funds and aset-backed securities managed by securities companies and trust

investment funds are the carying value of the asets held by the Group at the reporting date.

– F-138 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited318

59 Structured entities (continued)

Unconsolidated structured entities sponsored and managed by the Group mainly include non-principal guaranted

wealth management products. The wealth management products invest in a range of primarily fixed-rate asets,

most typicaly money market instruments, debt securities and loan asets. As the manager of these wealth

management products, the Group invests, on behalf of its customers, in asets as described in the investment

plan related to each wealth management product and receives fe and comision income.

As at 31 December 2024, the total asets invested by these outstanding non-principal guaranted wealth

management products isued by the Group amounted to RMB1,992,675 milion (31 December 2023:

RMB1,728,406 milion).

During the year ended 31 December 2024, the Group’s interest in these wealth management products included

fe and comision income of RMB4,871 milion (year ended 31 December 2023: RMB3,462 milion).

The Group enters into repo transactions at market interest rates with these wealth management products, and

the outstanding balance of these transactions was represented the Group’s maximum exposure to the wealth

management products. During the year ended 31 December 2024, net interest income which related to repo

transactions entered into by the Group with these wealth management products were RMB216 milion (year

ended 31 December 2023: RMB149 milion)

In order to achieve a smoth transition and steady development of the wealth management busines, in 2024,

in acordance with the requirements of the “Guiding Opinions on Regulating the Aset Management Busines

of Financial Institutions”, the Group continues to promote net-value-based reporting of its aset management

products and dispose of existing portfolios.

As at 31 December 2024, asets of these wealth management products amounting to RMB291,631 milion (31

December 2023: RMB187,083 milion) were invested in investments in which certain subsidiaries and asociates

of the CITIC Group acted as trustes.

60 Transfers of financial asets

For the year ended 31 December 2024, the Group entered into transactions which involved securitisation transactions

and transfers of non-performing financial asets.

These transactions were entered into in the normal course of busines by which recognized financial asets were

transfered to third parties or structured entities. Transfers of asets may give rise to ful or partial derecognition of the

financial asets concerned. On the other hand, where transfered asets do not qualify for derecognition as the Group has

retained substantialy al the risks and rewards of these asets, the Group continues to recognize the transfered asets.

Details of the financial asets sold under repurchase agrements are set forth in Note 35. Details of securitisation

transactions and non-performing financial asets transfer transactions conducted by the Group for the year ended 31

December 2024 totaled RMB40,658 milion (year ended 31 December 2023: RMB45,172 milion) are set forth below.

Securitisation transactions

During the year ended 31 December 2024, the Group, through securitisation, transfered financial asets at the original

cost of RMB28,760 milion, which qualified for ful de-recognition (year ended 31 December 2023:RMB17,510 milion,

which qualified for ful de-recognition).

– F-139 –

31 December 2024
336,954
116,952
13,580
339,015
66,224
129,437
5,315,869
641,043
1,118,313
706,869
3,869
34,258
33,363
10,192
2,725
52,618
61,984
8,983,265

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

3192024 Anual Report

60 Transfers of financial asets (continued)

Loan and other Financial asets transfers

During the year ended 31 December 2024, the Group also transfered loan and other financial asets of bok value before

impairment of RMB11,898 milion through other types of transactions (year ended 31 December 2023: RMB27,662

milion). RMB8,434 milion of this balance (year ended 31 December 2023: RMB19,272 milion) was non-performing

loans. RMB3,362 milion of this balance (year ended 31 December 2023: RMB7,990 milion) was non-performing

financial investments. No bond financing was caried out this year (year ended 31 December 2023: RMB400 milion).

The Group caried out asesment based on the transfer of risks and rewards of ownership and concluded that these

transfered asets qualified for ful de-recognition.

During the year ended 31 December 2024, the Group transfered loans and other financial asets of bok value before

impairment of RMB2,920 milion to China CITIC Financial Aset Management Co., Ltd. (formerly China Huarong

Aset Management Co., Ltd.) through other types of transactions. RMB1,400 milion of this balance was non-performing

loans. RMB1,520 milion of this balance was non-performing financial investments. Al of the above-mentioned financial

asets are qualified for ful de-recognition.

61 Ofseting financial asets and financial liabilities

Financial asets and financial liabilities are ofset and the net amount is reported in the consolidated anual statement

of financial position when there is a legaly enforceable right to ofset the recognized amounts and there is an intention

to setle on a net basis, or realize the aset and setle the liability simultaneously.

As at 31 December 2024, the amount of the financial asets and financial liabilities subject to enforceable master neting

arangements or similar agrements are not material to the Group.

62 Anual statements of financial position and changes in equity of the Bank

Statement of financial position

31 December

Asets

Cash and balances with central banks413,366

Deposits with banks and non-bank financial institutions67,014

Precious metals11,674

Placements with and loans to banks and non-bank financial institutions187,695

Derivative financial asets25,120

Financial asets held under resale agrements97,780

Loans and advances to customers5,114,597

Financial investments

— at fair value through profit or los606,972

— at amortised cost1,086,156

— at fair value through other comprehensive income762,773

— designated at fair value through other comprehensive income4,102

Investments in subsidiaries and joint ventures33,821

Property, plant and equipment34,316

Right-of-use asets9,707

Intangible asets4,071

Defered tax asets50,781

Other asets55,300

Total asets8,565,245

– F-140 –

31 December 2024
124,090
967,785
4,942
–
62,536
262,164
5,512,990
19,634
6,918
1,215,952
9,895
9,897
35,781
8,232,584
54,397
105,499
91,676
11,895
67,629
107,205
312,380
750,681
8,983,265

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited320

62 Anual statements of financial position and changes in equity of the Bank (continued)

Statement of financial position (continued)

31 December

Liabilities

Borowings from central banks273,126

Deposits from banks and non-bank financial institutions930,090

Placements from banks and non-bank financial institutions24,216

Financial liabilities at fair value through profit or los519

Derivative financial liabilities22,436

Financial asets sold under repurchase agrements442,491

Deposits from customers5,155,140

Acrued staf costs21,297

Taxes payable4,046

Debt securities isued952,909

Lease liabilities9,219

Provisions10,759

Other liabilities35,377

Total liabilities7,881,625

Equity

Share capital48,967

Preference shares118,060

Capital reserve61,790

Other comprehensive income1,867

Surplus reserve60,992

General reserve101,140

Retained earnings290,804

Total equity683,620

Total liabilities and equity8,565,245

– F-141 –

Share capital	Other equity instruments	Capital reserve	Other comprehensive income	Surplus reserve	General reserve	Retained earnings	Total equity
48,967	118,060	61,790	1,867	60,992	101,140	290,804	683,620
–	–	–	–	–	–	66,372	66,372
–	–	–	10,028	–	–	–	10,028
–	–	–	10,028	–	–	66,372	76,400
5,430	(2,568)	29,897	–	–	–	–	32,759
–	30,000	(4)	–	–	–	–	29,996
–	(39,993)	(7)	–	–	–	–	(40,000)
–	–	–	–	6,637	–	(6,637)	–
–	–	–	–	–	6,065	(6,065)	–
–	–	–	–	–	–	(27,306)	(27,306)
–	–	–	–	–	–	(1,428)	(1,428)
–	–	–	–	–	–	(3,360)	(3,360)
54,397	105,499	91,676	11,895	67,629	107,205	312,380	750,681

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

3212024 Anual Report

62 Anual statements of financial position and changes in equity of the Bank (continued)

Statement of changes in equity

As at 1 January 2024

(i) Profit for the year

(i) Other comprehensive income

Total comprehensive income

(i) Investor capital

— Capital injection by isuing convertible corporate bonds

— Isuance of perpetual bonds

— Redemption of perpetual bonds

(iv) Profit apropriations

— Apropriations to surplus reserve

— Apropriations to general reserve

— Dividend distribution to ordinary shareholders of the Bank

— Dividend distribution to preference shareholders

— Interest paid to holders of perpetual bonds

As at 31 December 202454,397105,49991,67611,89567,629107,205312,380750,681

capital

Other equity

instruments

Capital

reserve

Other

comprehensive

income

Surplus

reserve

General

reserve

Retained

earnings

Total

equity

As at 1 January 202348,935118,07661,598(1,736)54,72796,906259,792638,298

(i) Profit for the year–62,65162,651

(i) Other comprehensive income–3,361–3,361

Total comprehensive income–3,361–62,65166,012

(i) Investor capital–

— Capital injection by isuing convertible corporate bonds32(16)192–208

(iv) Profit apropriations

— Apropriations to surplus reserve–6,265–(6,265)–

— Apropriations to general reserve–4,234(4,234)–

— Dividend distribution to ordinary shareholders of the Bank–(16,110)(16,110)

— Dividend distribution to preference shareholders–(1,428)(1,428)

— Interest paid to holders of perpetual bonds–(3,360)(3,360)

(v) Transfers within the owners’ equity

— Other comprehensive income transfered to retained earnings–242–(242)–

As at 31 December 202348,967118,06061,7901,86760,992101,140290,804683,620

– F-142 –

Emoluments paid or receivable in respect of services as director or supervisor of the Group
Fees	Salary	Discretionary bonuses	Housing allowance	Allowances and benefits in kind	Employer’s contribution to retirement benefit scheme	Remunerations paid or receivable in respect of accepting office as director and supervisor	Emoluments paid or receivable in respect of director or supervisor’s other services in connection with the management of the affairs of the Group	Total
RMB’000	RMB’000	RMB’000	RMB’000	RMB’000	RMB’000	RMB’000	RMB’000	RMB’000
–	–	–	–	–	–	–	–	–
–	1,804	600	–	69	273	–	–	2,746
–	1,548	372	–	69	273	–	–	2,262
–	–	–	–	–	–	–	–	–
–	–	–	–	–	–	–	–	–
–	–	–	–	–	–	–	–	–
310	–	–	–	–	–	–	–	310
280	–	–	–	–	–	–	–	280
300	–	–	–	–	–	–	–	300
270	–	–	–	–	–	–	–	270

Emoluments paid or receivable in respect of services as director or supervisor of the Group
Fees	Salary	Discretionary bonuses	Housing allowance	Allowances and benefits in kind	Employer’s contribution to retirement benefit scheme	Remunerations paid or receivable in respect of accepting office as director and supervisor	Emoluments paid or receivable in respect of director or supervisor’s other services in connection with the management of the affairs of the Group	Total
RMB’000	RMB’000	RMB’000	RMB’000	RMB’000	RMB’000	RMB’000	RMB’000	RMB’000
–	434	810	–	69	273	–	–	1,586
–	424	820	–	69	273	–	–	1,586
–	345	620	–	73	243	–	–	1,281
–	332	670	–	69	273	–	–	1,344
260	–	–	–	–	–	–	–	260
260	–	–	–	–	–	–	–	260
–	33	60	–	23	23	–	–	139
257	–	–	–	–	–	–	–	257

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited322

63 Benefits and interests of directors and supervisors

(a) Relationship of related parties

For the year ended 31 December 2024

Executive directors

Fang Heying Note (i)

Liu Cheng

Hu Gang

Non-executive directors

Cao Guoqiang Note (i)

Huang Fang Note (i)

Wang Yankang Note (i)

Independent non- executive

directors

Liu Tsz Bun Benet

Song FangXiu

Wang Huacheng

Zhou Bowen270 –270

Supervisors

Li Rong

Cheng Pusheng

Zeng Yufang

Zhang Chun

Wei Guobin

Sun Qi Xiang

Former Directors and

Supervisors resigned in 2024

Chen Panwu (Note (i)

Liu Guoling (Note (i)257 – – – – – – – 257

– F-143 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

3232024 Anual Report

63 Benefits and interests of directors and supervisors (continued)

(a) Relationship of related parties (continued)

For the year ended 31 December 2023

Emoluments paid or receivable in respect of services as director or supervisor of the Group

FesSalary

Discretionary

bonuses

Housing

alowance

Alowances and

benefits in kind

Employer’s

contribution

to retirement

benefit scheme

Remunerations

paid or

receivable

in respect of

acepting ofice

as director and

supervisor

Emoluments

paid or

receivable

in respect of

director or

supervisor’s

other services in

conection with

the management

of the afairs of

the GroupTotal

RMB’000RMB’000RMB’000RMB’000RMB’000RMB’000RMB’000RMB’000RMB’000

Executive directors

Fang Heying Note (i)–

Liu Cheng–1,624420–47261–2,352

Non-executive directors

Cao Guoqiang Note (i)–

Huang Fang Note (i)–

Wang Yankang Note (i)–

Independent

non–executive directors

Liu Tsz Bun Benet299–299

Song FangXiu52–52

Wang Huacheng70–70

Zhou Bowen90–90

Emoluments paid or receivable in respect of services as director or supervisor of the Group

FesSalary

Discretionary

bonuses

Housing

alowance

Alowances and

benefits in kind

Employer’s

contribution

to retirement

benefit scheme

Remunerations

paid or

receivable

in respect of

acepting ofice

as director and

supervisor

Emoluments

paid or

receivable

in respect of

director or

supervisor’s

other services in

conection with

the management

of the afairs of

the GroupTotal

RMB’000RMB’000RMB’000RMB’000RMB’000RMB’000RMB’000RMB’000RMB’000

Supervisors

Li Rong–434810–47261–1,552

Cheng Pusheng–424820–47261–1,552

Chen Panwu–4141,271–47261–1,993

Zeng Yufang–345620–53245–1,263

Wei Guobin260–260

Sun Qi Xiang260–260

Liu Guoling260–260

Former Directors and

Supervisors resigned in 2023

Guo Danghuai–1,293310–47175–1,825

Zhu Hexin –

He Cao 200–200

Chen Lihua 215–215

Qian Jun 253–253

– F-144 –

Chapter 9 Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

(Amounts in milions of Renminbi unles otherwise stated)

China CITIC Bank Corporation Limited324

63 Benefits and interests of directors and supervisors (continued)

(a) Relationship of related parties (continued)

Notes:

(i) Mr. Fang Heying, Mr. Cao Guoqiang, Ms. Huang Fang, and Mr. Wang Yankang did not receive any emoluments from the Bank in 2024. Their

salary is borne by the main comon shareholders of the Bank.Two of the four directors are apointed by CITIC Limited and CITIC Group

(“Parent Companies”). Their emoluments were paid by the Parent Companies in 2024. The other two directors are apointed respectively by

Quzhou Industrial Holding Group Co. Ltd and CNTC. Their emolument alocations are not disclosed due to the dificulty to aportion the

services provided by the directors to the Bank.

(i) Mr. Chen Panwu resigned in January 2024, Mr. Liu Guoling resigned in December 2024.

(b) Other benefits and interests

No direct or indirect retirement benefits and termination benefits were paid to directors as at 31 December

2024 (as at December 2023: Nil).

For the year ended 31 December 2024 and 31 December 2023, the balance of loans and advances from the

Group to Directors, Supervisors or certain controled body corporates and conected entities of the Directors

or Supervisors was not significant.

No significant transactions, arangements and contracts in relation to the Group’s busines to which the Company

was a party and in which a director of the Company had a material interest, whether directly or indirectly,

subsisted at the end of the year or at any time during the year 2024 (2023: Nil).

64 Events after the reporting period

On 4 March 2025, the Bank redemed al unconverted convertible bonds from investors at the price of 111% of the

par value of the isued convertible bonds (including the anual interest of the last period) totaling RMB56.85 milion.

On the same day, the convertible bonds was delisted in the Shanghai Stock Exchange.

65 Comparative figures

Certain comparative data has ben restated to conform to the presentation of the curent year.

– F-145 –

Chapter 9 Independent Auditor’s Report

1892023 Anual Report

For the year ended 31 December 2023

To the Board of Directors of China CITIC Bank Corporation Limited

(Incorporated in the People’s Republic of China with limited liability)

Opinion

We have audited the consolidated financial statements of China CITIC Bank Corporation Limited (the “Bank”) and its

subsidiaries (the “Group”) set out on pages 196 to 323, which comprise the consolidated statement of financial position as at

31 December 2023, the consolidated statement of profit or los and other comprehensive income, the consolidated statement

of changes in equity and the consolidated cash flow statement for the year then ended and notes to the consolidated financial

statements, including significant acounting policy information.

In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of the

Group as at 31 December 2023 and of its consolidated financial performance and its consolidated cash flows for the year

then ended in acordance with International Financial Reporting Standards (“IFRSs”) isued by the International Acounting

Standards Board (the “IASB”) and have ben properly prepared in compliance with the disclosure requirements of Hong

Kong Companies Ordinance.

Basis for Opinion

We conducted our audit in acordance with Hong Kong Standards on Auditing (“HKSAs”) isued by the Hong Kong Institute

of Certified Public Acountants (“HKICPA”). Our responsibilities under those standards are further described in the Auditor’s

responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in

acordance with the HKICPA’s Code of Ethics for Profesional Acountants (the “Code”) together with any ethical requirements

that are relevant to our audit of the consolidated financial statements in the People’s Republic of China, and we have fulfiled

our other ethical responsibilities in acordance with these requirements and the Code. We believe that the audit evidence we

have obtained is suficient and apropriate to provide a basis for our opinion.

Key Audit Maters

Key audit maters are those maters that, in our profesional judgement, were of most significance in our audit of the consolidated

financial statements of the curent period. These maters were adresed in the context of our audit of the consolidated financial

statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these maters.

– F-146 –

China CITIC Bank Corporation Limited190

Chapter 9 Independent Auditor’s Report

For the year ended 31 December 2023

Measurement of expected credit loses for loans and advances to customers and financial asets at amortised costs

Se Note 4(c), Note 5(i), Note 21 and Note 22 to the consolidated financial statements.

The Key Audit MaterHow the mater was adresed in our audit

As at 31 December 2023, the gros balance of loans and

advances to customers and acrued interest included for the

purpose of expected credit los asesment in the Group’s

consolidated statement of financial position, amounted to

RMB5,512,734 milion, for which management recognized

an impairment alowance of RMB135,198 milion; the

gros balance of financial asets at amortised costs and

acrued interest included for the purpose of expected

credit los asesment amounted to RMB1,111,903

milion, for which management recognized an impairment

alowance of RMB26,305milion.

The Group uses an expected credit los (“ECL”) model

to measure the los alowance for loans and advances

to customers and financial asets at amortised costs

in acordance with International Financial Reporting

Standard 9, Financial instruments.

The determination of ECL alowance of loans and

advances to customers and financial asets at amortised

costs is subject to the aplication of a number of key

parameters and asumptions, including the credit

risk staging, probability of default, los given default,

exposures at default and discount rate, adjustments

for forward-loking information and other adjustment

factors. Extensive management judgment is involved in

the selection of those parameters and the aplication of

the asumptions.

Our audit procedures to ases ECL for loans and advances

to customers and financial asets at amortised costs

included the folowing:

’s IT audit

specialists, understanding and asesing the design,

implementation and operating efectivenes of

key internal controls of financial reporting over

the aproval, recording and monitoring of loans

and advances to customers and financial asets at

amortised costs, the credit risk staging proces and

the measurement of ECL for loans and advances to

customers and financial asets at amortised costs.

’s financial risk

specialists, asesing the apropriatenes of the ECL

model in determining the los alowance of loans

and advances to customers and financial asets at

amortised costs and the apropriatenes of the key

parameters and asumptions in the model, which

included credit risk staging, probability of default,

los given default, exposure at default, adjustments

for forward-loking information and other

adjustments, and asesing the apropriatenes of

related key management judgement.

• Asesing the completenes and acuracy of key

data used in the ECL model. We compared

the total balance of the loans and advances to

customers and financial asets at amortised costs

used by management to ases the ECL alowance

with the general ledger to check the completenes

of the data. We also selected samples to compare

information of individual loan and advance to

customers and financial asets at amortised costs

with the underlying agrements and other related

documentation. In adition, we checked the

acuracy of key external data used by management

by comparing them with public sources.

• For key parameters used in the ECL model which

were derived from system generated internal data,

asesing the acuracy of input data by comparing

the input data with original documents on a sample

basis. In adition, we involved KPMG’s IT audit

specialists to ases the acuracy of the loans and

advances’ overdue information on a sample basis.

– F-147 –

1912023 Anual Report

Chapter 9 Independent Auditor’s Report

For the year ended 31 December 2023

Measurement of expected credit loses for loans and advances to customers and financial investments (continued)

Se Note 4(c), Note 5(i), Note 21 and Note 22 to the consolidated financial statements.

The Key Audit MaterHow the mater was adresed in our audit

The amount of impairment of the loans and advances

to customers and financial asets at amortised costs is

significant, and the measurement has a high degre of

estimation uncertainty. The measurement of ECL aplied

significant management judgments and asumptions, and

involved significant inherent risk. In view of these reasons,

we identified this as a key audit mater.

’s

asesment on whether the credit risk of the

loans and advances customers and financial asets

at amortised costs have, or have not, increased

significantly since initial recognition and whether

the loans and advances to customers and financial

asets at amortised costs are credit-impaired by

selecting risk-based samples. We analyzed the

portfolio by industry sector to select samples in

industries more vulnerable to the curent economic

situation with reference to other borowers

with potential credit risk. For selected samples,

we checked loans and advances to customers

and financial asets at amortised costs overdue

information, making enquiries of the credit

managers about the borowers’ busines operations,

checking borowers’ financial information and

researching market information about borowers’

busineses, to check the credit risk status of the

borower, and the reasonablenes of credit risk

stage.

• For corporate loans and advances and financial

asets at amortised costs that are credit-impaired,

we selected samples to evaluate the forecasted

future cash flows prepared by the Group based

on financial information of borowers and

guarantors, colateral valuations, other available

information and posible future factors together

with discount rates in suporting the computation

of los alowance.

, we selected

samples and asesed the acuracy of calculation

for loans and advances to customers and financial

asets at amortised costs’ credit loses by using the

ECL model.

• Performing retrospective review of ECL model

components and significant asumptions to ases

whether the results indicate posible management

bias on los estimation.

• Asesing the reasonablenes of the disclosures in

the financial statements in relation to ECL for loans

and advances to customers and financial asets

at amortised costs against prevailing acounting

standards.

– F-148 –

China CITIC Bank Corporation Limited192

Chapter 9 Independent Auditor’s Report

For the year ended 31 December 2023

Consolidation of Structured Entities – Non-principal Guaranted Wealth Management Products

Se Note 4(a), Note 5(v) and Note 58 to the consolidated financial statements.

The Key Audit MaterHow the mater was adresed in our audit

As at 31 December 2023, al of non-principal guaranted

wealth management products (“WMPs”) isued and

managed by the Group are structured entities that are

not included in the scope of consolidation.

In determining whether the Group retains any partial

interests in a structured entity for non-principal guaranted

WMPs or should consolidate it, management is required

to consider the power it poseses, its exposure to variable

returns, and its ability to use its power to afect returns.

These factors are not purely quantitative and ned to be

considered colectively in the overal substance of the

transactions.

We have identified this as a key audit mater due to the

material balance and significant management judgements

were involved in asesing the consolidation of the

structured entities for non-principal guaranted WMPs.

Our audit procedures related to consolidation of

structured entities for non-principal guaranted WMPs

included the folowing:

implementation, and operating efectivenes of

key internal controls of financial reporting over

measurement of interests in and consolidation of

structured entities for non-principal guaranted

WMPs.

• selecting samples of structured entities for non-

principal guaranted WMPs and performing the

folowing procedures:

– inspecting the related contracts, internal

establishment documents and information

disclosed to the investors to understand

the purpose of the establishment of

the structured entity for non-principal

guaranted WMPs and the involvement

the Group has with the structured entity

for non-principal guaranted WMPs and

to ases management’s judgement over

whether the Group can exercise power

over the structured entity for non-principal

guaranted WMPs;

– performed independent analysis and tests

on the variable returns from the structured

entities for non-principal guaranted WMPs,

including but not limited to comision

income and aset management fes earned,

gain from investments, retention of residual

income, and, if any, liquidity, and other

suport provided to the structured entities

for non-principal guaranted WMPs, to

ases management’s judgement as to the

exposure, or rights, to variable returns from

the Group’s involvement in such an entity;

– F-149 –

1932023 Anual Report

Chapter 9 Independent Auditor’s Report

For the year ended 31 December 2023

Consolidation of Structured Entities – Non-principal Guaranted Wealth Management Products (continued)

Se Note 4(a), Note 5(v) and Note 58 to the consolidated financial statements.

Key Audit MaterHow our audit adresed the Key Audit Mater

– inspecting management’s analysis of

the structured entity for non-principal

guaranted WMPs, including qualitative

analysis and the calculation of the magnitude

and variability asociated with the Group’s

economic interests in the structured entity

for non-principal guaranted WMPs, to

ases management’s judgement over the

Group’s ability to afect its variable returns

from the structured entity for non-principal

guaranted WMPs;

– asesing management’s judgement over

whether the structured entity for non-

principal guaranted WMPs should be

consolidated or not.

• asesing the reasonablenes of the disclosures

in the financial statements in relation to the

measurement of interests in and consolidation of

structured entities for non-principal guaranted

WMPs against prevailing acounting standards.

– F-150 –

China CITIC Bank Corporation Limited194

Chapter 9 Independent Auditor’s Report

For the year ended 31 December 2023

Information other than the consolidated financial statements and auditor’s report thereon

The directors are responsible for the other information. The other information comprises al the information included in the

anual report, other than the consolidated financial statements and our auditor’s report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not expres any form

of asurance conclusion thereon.

In conection with our audit of the consolidated financial statements, our responsibility is to read the other information and,

in doing so, consider whether the other information is materialy inconsistent with the consolidated financial statements or

our knowledge obtained in the audit or otherwise apears to be materialy mistated.

If, based on the work we have performed, we conclude that there is a material mistatement of this other information, we are

required to report that fact. We have nothing to report in this regard.

Responsibilities of the directors for the consolidated financial statements

The directors are responsible for the preparation of the consolidated financial statements that give a true and fair view in

acordance with IFRSs isued by the IASB and the disclosure requirements of the Hong Kong Companies Ordinance and

for such internal control as the directors determine is necesary to enable the preparation of consolidated financial statements

that are fre from material mistatement, whether due to fraud or eror.

In preparing the consolidated financial statements, the directors are responsible for asesing the Group’s ability to continue

as a going concern, disclosing, as aplicable, maters related to going concern and using the going concern basis of acounting

unles the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

The directors are asisted by the Audit Comite in discharging their responsibilities for overseing the Group’s financial

reporting proces.

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable asurance about whether the consolidated financial statements as a whole are fre from

material mistatement, whether due to fraud or eror, and to isue an auditor’s report that includes our opinion. This report

is made solely to you, as a body, and for no other purpose. We do not asume responsibility towards or acept liability to any

other person for the contents of this report.

Reasonable asurance is a high level of asurance, but is not a guarante that an audit conducted in acordance with HKSAs

wil always detect a material mistatement when it exists. Mistatements can arise from fraud or eror and are considered

material if, individualy or in the agregate, they could reasonably be expected to influence the economic decisions of users

taken on the basis of these consolidated financial statements.

As part of an audit in acordance with HKSAs, we exercise profesional judgement and maintain profesional scepticism

throughout the audit. We also:

, whether due to fraud

or eror, design and perform audit procedures responsive to those risks, and obtain audit evidence that is suficient

and apropriate to provide a basis for our opinion. The risk of not detecting a material mistatement resulting from

fraud is higher than for one resulting from eror, as fraud may involve colusion, forgery, intentional omisions,

misrepresentations, or the overide of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are apropriate

in the circumstances, but not for the purpose of expresing an opinion on the efectivenes of the Group’s internal

control.

– F-151 –

1952023 Anual Report

Chapter 9 Independent Auditor’s Report

For the year ended 31 December 2023

• Evaluate the apropriatenes of acounting policies used and the reasonablenes of acounting estimates and related

disclosures made by the directors.

’ use of the going concern basis of acounting and, based on the audit

evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt

on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required

to draw atention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such

disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to

the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a

going concern.

, structure and content of the consolidated financial statements, including the disclosures,

and whether the consolidated financial statements represent the underlying transactions and events in a maner that

achieves fair presentation.

• Obtain suficient apropriate audit evidence regarding the financial information of the entities or busines activities

within the Group to expres an opinion on the consolidated financial statements. We are responsible for the direction,

supervision and performance of the group audit. We remain solely responsible for our audit opinion.