Guotai Junan International and CTICM Entered into Strategic Cooperation Agreement

[8 February 2018, Hong Kong] Guotai Junan International Holdings Limited ("Guotai Junan International" or the "Company", Stock code: 1788.HK) announced that the Company has recently entered into a strategic cooperation agreement ("the Agreement") with CTI Capital Management Limited ("CTICM"), a wholly owned subsidiary of CITIC Trust Co., Ltd. ("CITIC Trust") in Hong Kong. Mr. Chen Yisong, Chairman of CITIC Trust, Mr. Zhang Hao, Chief Executive Officer of CTICM, Dr. Yim Fung, Chairman and CEO and Ms. Qi Haiying, Deputy CEO of Guotai Junan International attended the signing ceremony. The strategic cooperation will fully integrate the competitive advantages in respective fields for both parties and enhance the whole comprehensive strength to create a win-win situation.

According to the Agreement, leveraging on in-depth knowledge of overseas markets and rich experience and advantages in cross-border businesses, Guotai Junan International will provide diversified services and products for CTICM through bridge financing, return swap, structured notes and other means to meet their overseas investment and financing needs. At the same time, Guotai Junan International's strong research team can assist CTICM to focus attention on all types of projects that meet the investment requirements, including mezzanine, Mergers and Acquisitions loans (M&A loans), bonds, equity, convertible bonds and funds. CTICM will make full use of Guotai Junan International's pricing power and advantages in the derivatives markets to provide product design and matched financing and risk hedging operations for its overseas and cross-border asset management businesses to enhance the scale of asset management and increase income on investment.

Guotai Junan International and CTICM have already had successful cooperation experience. China Hongqiao Group Limited ("China Hongqiao", Stock code: 1378.HK), the world's largest aluminum producer, was negatively affected by short selling reports published by a short selling institution on 28 February 2017. Then China Hongqiao's stock plunged and began suspension on March 22. Subsequently, China Hongqiao entered into a Memorandum of Understanding with CTICM, intending to place 10% shares to CTICM. Guotai Junan International contributed a lot in this Placing Shares project, tailored a comprehensive financing plan and provided financial support for this project at the crucial moment, contributing to supporting the long-term development of China's outstanding national enterprises. On 30 October 2017, China Hongqiao resumed trading successfully with rising by 31.91% on the first day. As of now, the share price of China Hongqiao has risen by 57% since its resumption of trading.

As a leading manufacturer among the aluminum industry, China Hongqiao owns the high-quality bauxite resources, the low-cost private power grids and the international advanced level of production lines with obvious cost advantages and gene of excellent enterprise. Meanwhile, China Hongqiao is also the advocate of environmental protection in the industry. Under the new environmental protection situation, China Hongqiao has fulfilled the environmental requirements with high standards, and the air in Binzhou City has been significantly improved. China Hongqiao has always responded positively to the macro-policy of national supply-side reform and capacity upgrade. Now the company has officially entered a new development stage, and "paying attention to environmental protection, lowering leverage and increasing dividends" has become the company's main strategic direction. On the other hand, China Hongqiao has introduced the capital of CTICM and other institutions, which also fully demonstrated its confidence in its future development and is more conducive to the company's leading position in the industry and its further development.


Dr. Yim Fung, JP, Chairman and CEO of Guotai Junan International, said, "Both companies have received satisfactory results in the past cooperation. We have cooperated to support outstanding national enterprises in the international capital markets and attack malicious short selling, laying a good foundation for cooperation and trust. More importantly, Guotai Junan International has always responded positively to the national's policy summons of 'getting rid of the financial bubble, guiding funds into the real economy', boosting the development of national industries. This is a milestone in supporting China Hongqiao by standing shoulder to shoulder with CTICM. In the future, we will expand in-depth cooperation with CTICM in more fields. Leveraging on both parties' rich experience and resources in the industry, we believe we will be able to achieve business synergies to seize new development opportunities."

- End -

About Guotai Junan International Holdings Limited

Guotai Junan International is the market leader and first mover for internationalization of Chinese Securities Company. The Company is the first Chinese securities broker to list on the Main Board of The Hong Kong Stock Exchange by way of initial public offering. Based in Hong Kong, the Company provides diversified integrated financial services. The five core services include: (i) brokerage, (ii) corporate finance, (iii) loans and financing, (iv) asset management, (v) financial products, market making and investments.

The Company is one of the constituents of HSCI, Hang Seng Composite LargeCap & MidCap Index, FTSE HK index and FTSE HK ex H share index. Guotai Junan International has been assigned "Baa2 / Prime-2" and "BBB+ / A-2" rating from Moody's Investor Service and Standard & Poor's Global Ratings respectively.

Our controlling shareholder, Guotai Junan Securities Company Limited ("Guotai Junan", Stock Code: 601211.SH; 2611.HK), is one of the China's leading securities houses. Backed by strong operational support, the Company will be able to further explore the HK and the Asia-Pacific market.

For more information about Guotai Junan International: http://www.gtjai.com.

About CTI Capital Management Limited

CTI Capital Management Limited ("CTICM"), incorporated in Hong Kong with limited liability in 2012. And its English name is CTI Capital Management Limited. CTICM is a wholly owned subsidiary of CITIC Trust Co. Ltd. ("CITIC Trust") and is also the first overseas subsidiary in China's trust industry approved by China Banking Regulatory Commission, carrying out both regulated and non-regulated businesses in Hong Kong financial markets and also participating in cross-border transactions.

CTI Capital Hong Kong Limited, a wholly owned subsidiary of CTICM, holds SFC type 1 (dealing in securities), type 4 (advising on securities) and type 9 (asset management) licenses, providing securities issuance, securities consulting and asset management services for investors. In addition, the wholly owned subsidiary of CTICM also holds money lenders license (MLR No. is No. 1847/2017) and can engage in foreign loans businesses. "CTI Capital Global Opportunities Fund", the flagship hedge fund of CTICM, was selected and awarded the "Best New Asian Hedge Fund for 2017" by Eurekahedge, the world's leading hedge fund research institution.