CMBC Announcement

Announcement on the Bank’s Equity Participation in UCBH

2009-11-10 16:52:56

I. Current situation of the United Commercial Bank (UCB)

According to the latest news from the website of the Federal Deposit Insurance Corporation (FDIC), the UCB was closed by the California Department of Financial Institutions, which appointed the FDIC as receiver.

The Bank has made equity participation in the UCBH Holdings Inc. (UCBH), which operates its main businesses through the UCB. The closing of the UCB might cause investment loss risks to shareholders of the UCBH, including the Bank.

II. The Bank’s equity participation in the UCBH

The Bank has made an aggregated investment of RMB 887 million in the UCBH, approximately accounting for 9.9% of UCBH’s total capital stock. For details, please refer to the China Securities Journal, Shanghai Securities News and the Securities Times on October 8, 2007 and December 20, 2008.

III. The Bank’s provision for impairment losses

The Bank’s aggregated investment amounted to RMB 887 million. The Bank has confirmed a total of investment loss and impairment loss at RMB 824 million in accordance with the accounting standard.

III. Impact on the Bank

Having made sufficient impairment loss provision for the investment in the UCBH, the Bank does not consider the closing of the UCB had material impact on its business operations and profits.

Board of Directors

China Minsheng Banking Corp., Ltd.

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