Investor Presentaiton

Harnessing the opportunity as a leading bank for RMB internationalisation A Global 1 Notes: Trading Currency June 2009 Pilot launch of cross-border RMB trade settlement scheme June 2010 Expansion of cross-border RMB trade settlement scheme August 2011 Announcement on nationwide expansion of the scheme Trade settled in RMB totaled RMB2.08trn¹ in 2011 March 2012 Expansion of RMB export trade settlement from businesses on the Mainland Designated Enterprises (MDES) list to all companies qualified for external trade The MDE list was replaced by a watch list in June, fully opening the cross- border RMB trade settlement channel 1 Source: PBOC 2 CNH is the name used in the market to refer to offshore deliverable RMB 3 Qualified Foreign Institutional Investors 4 Source: Wall Street Journal • A Global 2 Investment Currency • July 2010 Establish the offshore RMB (CNH2) market in HK August 2010 China inter-bank bond market (CIBM) opened to selected offshore RMB Financial Institutions and central banks January 2011 Mainland Enterprises can make overseas investment in RMB in the form of ODI August 2011 Mainland corporates can issue RMB bonds in Hong Kong October 2011 Formalisation of RMB Foreign Direct investment (FDI) RMB21bn for 110 projects approved by end December December 2011 RMB QFII³ launched allowing HK subsidiaries of Chinese asset management and securities firms to invest onshore April 2012 RMB QFII³ expanded by RMB50bn and allowed to be used in issuing A-share ETFs CIBM eligible investors expanded to supranationals, sovereign wealth funds and insurers May 2012 Formalisation of RMB bond issuance in Hong Kong by Mainland non- financial firms 19 countries have signed swap agreements with China, totaling RMB1.7trn June 2012 The first RQFII A-share ETF authorised for listing on the SEHK Notice from PBOC on "Clarifying the Operating Details of RMB Settlement for FDI" August 2012 Authorised Institutions (Als) can offer RMB services to personal customers who are non-Hong Kong residents 17 3 . A Global Reserve Currency Accepted across world: For investment, financing, and payment purposes As a reserve, intervention and anchor currency Nigeria has added the equivalent of USD500m in RMB to its reserves4 • Chile, Thailand, Brazil and Venezuela are understood to have begun efforts to • include RMB in reserve portfolio¹ Japan, Korea and Thailand have approved quotas of RMB65bn, 20bn and 7bn respectively to invest in CIBM The International Bank for Reconstruction and Development (IBRD) & the International Development Association (IDA) to invest in CIBM through PBOC Indonesia's central bank started buying bonds in CIBM Countries that have indicated they will add RMB to their reserves account for an aggregated 33% of world total FX holdings excluding China

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