On 15 September 2008, Lehman Brothers Holdings Inc. officially filed for bankruptcy protection. As of the date of this announcement, the Bank of China Group holds USD75.62 million bonds issued by Lehman Brothers Holdings Inc. and its subsidiaries, of which USD69.21 million bonds are held by Bank of China (Hong Kong) Limited. In addition, the Bank’s New York Branch has outstanding loans of USD50 million and USD3.2 million that were extended to Lehman Brothers Holding Inc. and its subsidiaries, respectively. The above bonds and loans in aggregate account for 0.01% of the total assets and 0.19% of the net assets of the Bank of China Group as at 30 June 2008, respectively.
The Bank will closely monitor the development of this event, promptly assess any risk in relation thereto, make corresponding provisions for diminution in value in a prudent manner, and safeguard our assets to the greatest extent in accordance with the relevant laws and regulations. It is expected that this event will not have any significant impact on the financial position of the Bank of China Group.
By Order of the Board
YEUNG Cheung Ying
Company Secretary
Hong Kong, 17 September 2008
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