s342IMPORTANT: If you are in any doubt about any of the contents of this prospectus, you should obtainindependent professional advice.

A1A(1)BANK OF CHINA LIMITED(A joint stock company incorporated in the People's Republic of China with limited liability)

GLOBAL OFFERING

A1A(15)(2)(Number of OÅer Shares under the : 25,568,590,000 (subject to adjustment and the Over-Global OÅering Allotment Option)

Number of Hong Kong OÅer Shares : 1,278,430,000 (subject to adjustment)

Number of OÅer Shares under the : 24,290,160,000 (subject to adjustment and the Over-International OÅering Allotment Option)

A1A(15)(2)(

3rd Sch 9Maximum OÅer Price : HK$3.00 per Hong Kong OÅer Share payable in full on

application, subject to refund, plus brokerage of 1%,SFC transaction levy of 0.005% and Hong Kong StockExchange trading fee of 0.005%

Nominal value : RMB1.00 each

Stock code : 3988

Joint Global Coordinators, Joint Bookrunners, Joint Sponsors and Joint Lead Managers(in alphabetical order)

LR11.20The Stock Exchange of Hong Kong Limited and Hong Kong Securities Clearing Company Limited take no responsibility for the contents ofthis prospectus, make no representation as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any losshowsoever arising from or in reliance upon the whole or any part of the contents of this prospectus.

s342C(1)

s342C(2)

A copy of this prospectus, having attached thereto the documents speciÑed in Appendix X Ì ""Documents Delivered to the Registrar ofCompanies and Available for Inspection'' to this prospectus, has been registered by the Registrar of Companies in Hong Kong as requiredby Section 342C of the Companies Ordinance, Chapter 32 of the Laws of Hong Kong. The Securities and Futures Commission of HongKong and the Registrar of Companies in Hong Kong take no responsibility for the contents of this prospectus or any other documentreferred to above.

I.E. Note The OÅer Price is expected to be Ñxed by agreement between the Joint Global Coordinators (on behalf of the Hong Kong Underwriters)and us on the Price Determination Date. The Price Determination Date is expected to be on or around May 24, 2006 and, in any event, notlater than May 29, 2006. The OÅer Price will be not more than HK$3.00 and is currently expected to be not less than HK$2.50 unlessotherwise announced. Applicants for Hong Kong OÅer Shares are required to pay, on application, the maximum OÅer Price of HK$3.00 foreach Hong Kong OÅer Share together with brokerage of 1%, SFC transaction levy of 0.005% and Hong Kong Stock Exchange trading feeof 0.005% subject to refund if the OÅer Price should be lower than HK$3.00.

I.E. Note I.E. Note

The Joint Global Coordinators (on behalf of the Underwriters, and with our consent) may reduce the number of OÅer Shares beingoÅered under the Global OÅering and/or the indicative OÅer Price range below that stated in this prospectus (which is HK$2.50 toHK$3.00 per H Share) at any time prior to the morning of the last day for the lodging of applications under the Hong Kong PublicOÅering. In such a case, notices of the reduction in the number of Hong Kong OÅer Shares and/or the indicative OÅer Price range willbe published in the South China Morning Post (in English) and the Hong Kong Economic Times (in Chinese) not later than themorning of the last day for the lodging of applications under the Hong Kong Public OÅering. If applications for Hong Kong OÅer Shareshave been submitted prior to the last day for the lodging of applications under the Hong Kong Public OÅering, then even if the numberof Hong Kong OÅer Shares and/or the indicative OÅer Price range is so reduced, such applications cannot be subsequentlywithdrawn. Further details are set out in ""Structure of the Global OÅering''.

LR19A.42(63We are incorporated, and a signiÑcant portion of our businesses are located, in the PRC. Potential investors should be aware of thediÅerences in the legal, economic and Ñnancial systems between the mainland of the PRC and Hong Kong, and that there are diÅerent riskfactors relating to investments in PRC-incorporated companies. Potential investors should also be aware that the regulatory framework inthe mainland of the PRC is diÅerent from the regulatory framework in Hong Kong, and should take into consideration the diÅerent marketnature of our Shares. Such diÅerences and risk factors are set out in ""Risk Factors'', ""Supervision and Regulation'', Appendix VII Ì""Summary of Principal Legal and Regulatory Provisions'' and Appendix VIII Ì ""Summary of Articles of Association''.

S342May 18, 2006

EXPECTED TIMETABLE(1)

A1A(15)(2)(Application lists open(2)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 11:45 a.m. on Tuesday, May 23, 20063rd Sch 8Latest time for lodging White and Yellow Application

FormsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 12:00 noon on Tuesday, May 23, 2006Latest time to give electronic application instructions

to HKSCC ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 12:00 noon on Tuesday, May 23, 2006Application lists closeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 12:00 noon on Tuesday, May 23, 2006Expected price determination date(3)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Wednesday, May 24, 2006

I.E. Note 13Announcement of:‚ the OÅer Price;‚ the levels of indication of interest in the

International OÅering;‚ the results of applications in the Hong Kong

Public OÅering (with successful applicants'identiÑcation document numbers, whereappropriate); and

A1A(15)(2)(

‚ the basis of allotment of the Hong Kong OÅerShares to be published in South China MorningPost (in English) and Hong Kong EconomicTimes (in Chinese), on or before ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Tuesday, May 30, 2006

Dispatch of H Share certiÑcates in respect of wholly orpartially successful applications on or before(4) ÏÏÏÏÏ Tuesday, May 30, 2006

Dispatch of refund checks in respect of wholly orpartially unsuccessful applications on or before(4)(5) Thursday, June 1, 2006

A1A(22)

Dealings in the H Shares on the Hong Kong StockExchange expected to commence atÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9:30 a.m. on Thursday, June 1, 2006

(1) All times refer to Hong Kong local time, except as otherwise stated. Details of the structure of the Global OÅering,including conditions of the Hong Kong Public OÅering, are set out in ""Structure of the Global OÅering''.

(2) If there is a ""black'' rainstorm warning or a tropical cyclone warning signal number 8 or above in force in Hong Kong atany time between 9:00 a.m. and 12:00 noon on Tuesday, May 23, 2006, the application lists will not open on that day.

(3) The price determination date is expected to be on or about Wednesday, May 24, 2006 and in any event no later thanMonday, May 29, 2006. If, for any reason, the OÅer Price is not agreed on or before Monday, May 29, 2006 between usand the Joint Global Coordinators (on behalf of the Hong Kong Underwriters), the Global OÅering (including the HongKong Public OÅering) will not proceed and will lapse.

(4) Applicants who applied for 1,000,000 or more Hong Kong OÅer Shares and have indicated in their Application Formstheir wish to collect refund checks (where applicable) and H Share certiÑcates (where applicable) in person may do sofrom our H Share registrar, Computershare Hong Kong Investor Services Limited, from 9:00 a.m. to 1:00 p.m. on thedate notiÑed by the Company in the newspapers as the date of dispatch of share certiÑcate(s) and refund check(s).The date of dispatch of share certiÑcate(s) is expected to be Tuesday, May 30, 2006. The date of dispatch of refundcheck(s) is expected to be Thursday, June 1, 2006. Applicants being individuals who opt for personal collection mustnot authorize any other person to make collection on their behalf. Applicants being corporations who opt for personalcollection must attend by their authorized representatives, each bearing a letter of authorization from his corporationstamped with the corporation's chop. Both individuals and authorized representatives (if applicable) must produce, atthe time of collection, evidence of identity acceptable to Computershare Hong Kong Investor Services Limited.Uncollected refund checks and H Share certiÑcates will be dispatched by ordinary post to the addresses as speciÑed inthe applicants' Application Forms at the applicants' own risk.

(5) Refund will be made in respect of wholly or partially unsuccessful applications and in respect of successful applicationsif the OÅer Price is less than the price payable on application.

H Share certiÑcates will become valid certiÑcates of title only if the Hong Kong Public OÅering has become unconditionalin all respects and neither the Hong Kong Underwriting Agreement nor the International Purchase Agreement has beenterminated in accordance with their respective terms. Investors who trade the H Shares on the basis of publicly availableallocation details prior to the receipt of H Share certiÑcates or prior to the H Share certiÑcates becoming valid certiÑcatesof title do so entirely at their own risk.

i

CONTENTS

You should rely only on the information contained in this prospectus and theApplication Forms to make your investment decision. We have not authorized anyone toprovide you with information that is diÅerent from what is contained in this prospectus.Any information or representation not made in this prospectus must not be relied on byyou as having been authorized by the Company, the Joint Global Coordinators, the JointSponsors, the Underwriters, any of their respective directors, or any other person orparty involved in the Global OÅering.

Expected TimetableÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ i

Contents ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ ii

Summary ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1

DeÑnitionsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 14

Forward-Looking Statements ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 26

Risk Factors ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 27

Information about this Prospectus and the Global OÅering ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 47

Parties Involved in the Global OÅering ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 52

Corporate Information ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 58

Industry OverviewÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 59

Supervision and RegulationÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 73

Our Restructuring ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 96

Our Strategic and Other InvestorsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 102

Business ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 120

Overview ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 120

Our StrengthsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 121

Our Strategy ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 124

Our Principal Business ActivitiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 127

Commercial BankingÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 128

Investment BankingÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 146

InsuranceÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 148

Other BusinessÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 149

Product PricingÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 150

Distribution Network ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 150

Information Technology ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 152

CompetitionÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 153

EmployeesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 154

Intellectual Property ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 155

Our Relationship with BOCHK Holdings ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 155

Legal and Regulatory ProceedingsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 158

Special Events ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 160

Other Matters ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 162

Properties ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 163

Risk ManagementÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 167

Overview ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 167

Risk Management Structure ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 169

ii

CONTENTS

Credit Risk Management ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 173

Market Risk Management ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 184

Liquidity Risk ManagementÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 187

Operational Risk Management and Internal Controls ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 188

Anti-Money Laundering and Combating Financing of Terrorism MeasuresÏÏÏÏÏÏÏÏÏÏÏÏ 189

Internal Audit ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 190

Risk Management of BOCHKÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 192

Relationship with Our Promoter and Connected Transactions ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 197

Directors, Supervisors, Senior Management and Employees ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 200

Substantial Shareholders ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 213

Share Capital ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 215

Description of Our Assets and Liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 220

AssetsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 220

Liabilities and Sources of Funds ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 254

Financial Information ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 260

Overview ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 260

Impact of Our Restructuring ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 262

Results of OperationsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 264

Segmental Operating ResultsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 288

Financial PositionÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 292

Critical Accounting PoliciesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 307

Indebtedness ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 310

Rules 13.11 to 13.19 of the Hong Kong Listing RulesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 311

ProÑt Forecast ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 311

Dividend PolicyÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 312

Distributable Reserves ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 314

Unaudited Pro Forma Adjusted Net Tangible AssetsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 314

No Material Adverse Change ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 315

Working Capital ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 315

Future Plans and Use of Proceeds from the Global OÅering ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 316

Underwriting ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 317

Structure of the Global OÅeringÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 323

A Share OÅering ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 329

How to Apply for Hong Kong OÅer Shares ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 330

Appendices

Appendix I Ì Accountants' Report ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ I-1

Appendix II Ì Unaudited Supplementary Financial Information ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ II-1

Appendix III Ì Unaudited Pro Forma Financial Information ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ III-1

Appendix IV Ì ProÑt Forecast ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ IV-1

Appendix V Ì Property Valuation Report ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ V-1

Appendix VI Ì Taxation and Foreign ExchangeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ VI-1

iii

CONTENTS

Appendix VII Ì Summary of Principal Legal and Regulatory Provisions ÏÏÏÏÏÏÏÏÏÏÏÏÏ VII-1

Appendix VIII Ì Summary of Articles of Association ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ VIII-1

Appendix IX Ì Statutory and General InformationÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ IX-1

Appendix X Ì Documents Delivered to the Registrar of Companies and Availablefor Inspection ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ X-1

iv

SUMMARY

This summary aims to give you an overview of the information contained in this prospectus.As it is a summary, it does not contain all the information that may be important to you. Youshould read the whole document before you decide to invest in the H Shares.

There are risks associated with any investment. Some of the particular risks in investing inthe H Shares are set forth in ""Risk Factors''. You should read that section carefully beforeyou decide to invest in the H Shares.

The market share and industry data in this prospectus were derived from data prepared inaccordance with PRC GAAP or other applicable local GAAP, which diÅers from IFRS incertain signiÑcant respects.

OVERVIEW

3rd Sch 1We are one of the four largest commercial banks in the PRC in terms of total assets with themost extensive international branch network among PRC commercial banks. According to theBanker magazine, we were the 32nd largest bank in the world based on total assets as ofDecember 31, 2004. Our core business is commercial banking, which primarily consists of corporatebanking, personal banking and treasury operations and accounted for 92.7% of our operating proÑtin 2005. We also conduct investment banking and insurance activities through our subsidiaries. Thecombination of our commercial banking, investment banking and insurance businesses has createda universal banking platform that allows us to provide integrated services to our customers.

We are headquartered in Beijing with operations in the Chinese Mainland, Hong Kong andMacau and other overseas regions. Our operating proÑt was RMB37,416 million, RMB37,122 millionand RMB53,636 million in 2003, 2004 and 2005, respectively, of which RMB13,203 million,RMB17,786 million and RMB29,676 million, respectively, was derived from our domestic operations.As of December 31, 2005, our total assets were RMB4,740,048 million, of which 76.4% were derivedfrom our domestic operations before inter-company balance elimination.

We had one of the most extensive domestic distribution networks, with over 11,000 branchesand outlets, 580 self-service centers and 11,600 automated service machines throughout the PRCas of December 31, 2005. We also have an extensive international network. As of December 31,2005, our international network comprised over 600 overseas branches, subsidiaries andrepresentative oÇces covering 27 countries and regions, and we had correspondent bankingrelationships with over 1,400 foreign banks. In addition, we oÅer electronic-banking services suchas telephone banking and Internet banking. As of December 31, 2004, we had the highest totalassets, customer deposits and outstanding loans and advances per branch among the Big Fouraccording to data released by the Big Four.

We are also a leading commercial bank in Hong Kong and Macau. Our Hong Kong and Macauoperations together accounted for 19.8% of our total assets before inter-company balanceelimination as of December 31, 2005 and 41.1% of our operating proÑt in 2005. Our subsidiary,BOCHK, was the second largest commercial bank in Hong Kong in terms of total assets as ofDecember 31, 2005. BOCHK's direct holding company, BOCHK Holdings, is listed on the Hong KongStock Exchange. Our Macau branch was the largest commercial bank in Macau in terms of totalassets as of June 30, 2005 based on data published by the Macau government.

BOCHK and our Macau branch are each one of the few banks authorized to issue bank notes intheir respective jurisdictions.

1

SUMMARY

OUR STRENGTHS

Our principal strengths include:

¬ Well-recognized brand name. Established in 1912, we are one of the best-knowncommercial banks in the PRC. Over more than 90 years of history, we have built one of themost recognized brand names in the PRC through our contributions to the evolution of thePRC commercial banking industry.

¬ Largest and rationally distributed overseas network complementing an extensive domesticnetwork. Our domestic branch network covers major geographic regions in the PRC. Inaddition, we have the largest overseas network among the PRC commercial banks,covering major international Ñnancial centers such as New York, London, Tokyo, HongKong, Frankfurt and Singapore.

¬ Solid customer base and strong presence in attractive customer segments. We haveestablished and continue to maintain strong relationships with leading domestic andinternational corporations and Ñnancial institutions. We also have a strong presence in theaÉuent retail customer segment. Our relationship with these customers has enabled us toincrease our product penetration.

¬ Universal banking platform. In addition to commercial banking, we provide investmentbanking, insurance and other services through our wholly owned subsidiaries, BOCI,BOCG Insurance and BOCG Investment. The combination of these businesses has createda universal banking platform that provides us with the ability to oÅer a broad range ofÑnancial products and services, which enables us to diversify our sources of income,establish stronger relationships with strategically targeted customers and strengthencustomer loyalty.

¬ Leader in non-interest income and foreign exchange businesses with strong productinnovation capabilities. In 2004, our non-interest income as a percentage of our totaloperating income based on PRC GAAP was the highest among the Big Four. We believeour ability to oÅer innovative Ñnancial solutions to our customers provides us with acompetitive advantage over other PRC commercial banks. We are also a market leader inthe PRC in the foreign currency-denominated deposit, lending, and trade-related services.

¬ Experienced senior management team with proven track record. Our senior managementteam has extensive experience in the banking and Ñnancial services, with an average of21 years of relevant experience. In addition, over 40% of our management personnel at orabove the level of assistant general manager in our head oÇce have overseas workingexperience.

A1A(34)(1)(c)OUR STRATEGY

We strive to become the premier bank in the PRC by pursuing sustainable proÑtability andquality-driven growth. We intend to become the Ñnancial services provider of choice in the PRC forlarge corporations and aÉuent retail customers, as well as a leading international Ñnancial servicescompany. We intend to achieve our objectives by focusing on the following strategies:

¬ Strengthen corporate governance, risk management and Ñnancial management. We striveto achieve an appropriate balance between risk and return. We are in the process ofbuilding an integrated risk management framework covering credit risk, market risk,liquidity risk and operational risk. We seek to manage our capital base and improve our

2

SUMMARY

asset and liability mix and pricing, and plan on further improving our Ñnancial andaccounting controls.

¬ Focus on attractive customer groups. We seek to expand the scope of our business withlarge corporate customers by providing them with a broad range of treasury, investmentbanking and insurance services in addition to traditional banking products and services. Wewill continue to selectively seek small and medium-sized enterprise customer opportunitiesbased on improved risk management tools, risk management and pricing policies andcustomized product oÅerings. We also intend to focus on the high-end retail segment byfurther developing our wealth management products and services.

¬ Seek further diversiÑcation by enhancing our product oÅerings and strengthening ouruniversal banking platform. For the personal banking business, we will continue to focuson our mortgage lending. In particular, we have developed a direct-sale model to marketour mortgage products directly to our retail customers in order to provide customizedmortgage products and to improve our customer service. For the corporate banking andtreasury operations, we seek to reinforce our leading position in trade related services,trade Ñnance and treasury products, and continue to develop fee-based businesses. Wealso intend to develop and promote globalized products and services based on ouroverseas network, and to develop our investment banking and insurance operations,leveraging our existing platform and customer relationships to promote and capture cross-selling opportunities.

¬ Focus on domestic strategic regions and further develop our international franchise tosupport cross-border businesses. We have identiÑed 10 Key Regions as well as 40 KeyCities in the PRC as our key strategic regions. We will allocate resources and prioritize oureÅorts accordingly. We will continue to develop our overseas network in order to supportour domestic and international customers. Through better coordination and expandedcross-border services and products, we intend to capture business opportunities arisingfrom the increasing globalization of the PRC economy.

¬ Implement infrastructure reform to streamline processes and increase eÇciency. We are inthe process of transforming our organizational structure to centralize and streamline keydecision-making processes. We expect our Board committees and senior management tocontinue to focus on reform, and we intend to strengthen the functions of our tier onebranches as regional management centers. We are also in the process of streamlining andstandardizing our operational processes and upgrading our information technologysystem.

¬ Train and develop our employees to enhance our competitive advantage. Our competitiveadvantage depends on our ability to attract, retain, train and motivate our employees. Wewill continue to enhance our strategic human resource management to align ouremployees' and shareholders' interests. In addition, we plan to introduce an equity-basedincentive plan for our senior management.

¬ Cooperate with our strategic investors to create synergies. We believe our strategicinvestors have complementary areas of expertise that can assist us in our business andinfrastructure development. Through cooperation agreements, we will seek to takeadvantage of the expertise of our strategic investors to enhance the business opportunitieswith our existing customers to increase market penetration. We believe cooperation withour strategic investors will enhance our competitiveness.

3

SUMMARY

DIVIDEND POLICY

Any dividend distribution plan may be proposed by our Board or any shareholder who holds,either alone or jointly with others, more than 3% of our Shares to a shareholders' meeting forapproval. Alternatively, two or more shareholders who hold in the aggregate 10% or more of ourShares may request a special shareholders' meeting to review a proposal of dividend distribution.The decision to make a recommendation for the payment of any dividend and the amount of thedividend will depend on:

¬ our results of operations and cash Öows;

¬ our Ñnancial position;

¬ statutory capital adequacy requirements as determined under relevant regulations;

¬ the interests of all of our shareholders;

¬ general business conditions;

¬ our business prospects;

¬ statutory and regulatory restrictions on the payment of dividends by us; and

¬ any other factor that our Board deems relevant.

Under PRC law, dividends may be paid only out of distributable proÑts as determined underPRC GAAP or IFRS, whichever is lower. Distributable proÑts mean our unconsolidated proÑtattributable to equity holders, after any replenishment of unconsolidated accumulated losses,allocations to statutory surplus reserve, general and regulatory reserve and discretionary surplusreserve that we are required to make. Any distributable proÑts that are not distributed in a given yearare retained and available for distribution in subsequent years. Dividend distributions in the amountof RMB14,200 million for the year ended December 31, 2004, and RMB12,737 million to ourshareholders on record as of December 29, 2005 for the six-month period ended June 30, 2005,were approved at the shareholders' meetings in September and December 2005, respectively. Wepaid such dividends in cash by December 31, 2005. In addition, dividend distributions in the amountof RMB1,375 million to our shareholders on record as of December 31, 2005 were approved by theshareholders in April 2006.

The amount of dividends we paid historically is not indicative of the dividends we will pay in thefuture or our future payment ratio.

In April 2006, the Board of Directors approved the dividend policy for the period beginning onthe date of the Global OÅering and ending on December 31, 2008. See ""Financial Information ÌDividend Policy''.

INFORMATION DISCLOSURE

Under PRC law, our annual report shall disclose, among other things, audited consolidatedÑnancial statements prepared under PRC GAAP. PRC GAAP may be materially diÅerent fromgenerally accepted accounting principles used by banks in other jurisdictions. Our consolidatedÑnancial statements included in this prospectus were prepared in accordance with IFRS. Please see""Supervision and Regulation Ì Corporate Governance Ì Information Disclosure''.

3rd Sch 3SUMMARY HISTORICAL CONSOLIDATED FINANCIAL INFORMATION

You should read the summary historical consolidated Ñnancial information below in conjunctionwith Appendix I Ì ""Accountants' Report'', which has been prepared in accordance with IFRS. The

4

SUMMARY

summary historical consolidated income statement data for the years ended December 31, 2003,2004 and 2005 and the summary historical consolidated balance sheet data as of December 31,2003, 2004 and 2005 set forth below have been derived from the Accountants' Report issued byPricewaterhouseCoopers, CertiÑed Public Accountants, Hong Kong, and included in Appendix I tothis prospectus.

A1A(33)(1)3rd Sch 27

For the year ended December 31,

2003 2004 2005

(in millions of RMB,unless otherwise stated)

Summary Historical Consolidated Income Statement DataInterest incomeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 116,967 132,353 167,948Interest expense ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (40,370) (43,918) (66,940)

Net interest income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 76,597 88,435 101,008Net fee and commission income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7,353 8,557 9,247Net trading income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,303 8,882 4,283Net gains/(losses) on investment securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,094 337 (582)Other operating income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,849 9,602 11,150Net gains on sale of shares in a subsidiary ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7,400 Ì ÌImpairment losses on loans and advancesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (18,100) (23,812) (11,486)Other operating expensesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (46,080) (54,879) (59,984)

Operating proÑt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 37,416 37,122 53,636Share of results of associates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (69) 141 175

ProÑt before income taxÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 37,347 37,263 53,811Income tax expense ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (3,162) (10,198) (22,253)

ProÑt for the year ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 34,185 27,065 31,558

Attributable to:Equity holders of our bank ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 31,015 22,301 25,921Minority interest ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,170 4,764 5,637

34,185 27,065 31,558

Earnings per share for proÑt attributable to the equity holders ofour bank during the year (Renminbi per ordinary share)Ì basic and diluted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.17 0.12 0.14

5

SUMMARY

As of December 31,

2003 2004 2005

(in millions of RMB)

Summary Historical Consolidated Balance Sheet DataAssetsCash and due from banksÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 30,333 35,779 41,082Balances with central banksÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 267,159 284,348 316,941Placements with banks and other Ñnancial institutions ÏÏÏÏÏÏÏÏ 428,915 340,192 332,099Government certiÑcates of indebtedness for bank notes

issued ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 34,789 38,440 35,586Precious metals ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 28,596 26,105 26,974Trading assets and other Ñnancial instruments at fair value

through proÑt or loss ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 115,144 92,124 111,782Derivative Ñnancial instruments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 13,162 16,076 16,808Loans and advances to customers, netÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,921,861 2,072,919 2,152,112Investment securities

Available-for-saleÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 421,471 357,587 602,221Held-to-maturity ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 215,175 457,994 607,459Loans and receivables ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 352,315 413,941 361,851

Investment in associates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,355 1,227 5,061Property and equipment ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 66,614 65,012 62,417Investment property ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,837 6,288 8,511Deferred income tax assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 14,111 21,614 20,504Other assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 56,443 35,575 38,640

Total assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,973,280 4,265,221 4,740,048

LiabilitiesDue to banks ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 95,181 111,788 134,217Due to central banks ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 76,815 66,738 30,055Bank notes in circulation ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 34,836 38,570 35,731CertiÑcates of deposits and placements from banks and other

Ñnancial institutionsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 157,243 141,087 212,626Derivative Ñnancial instruments and liabilities at fair value

through proÑt or loss ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 50,977 93,760 91,174Due to customers ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,033,364 3,338,448 3,699,464Bonds issued ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,823 26,253 60,179Special purpose borrowingsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 77,229 69,549 52,164Current tax liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,949 19,588 23,459Retirement beneÑt obligations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,669 4,274 7,052Deferred income tax liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,951 2,399 2,136Other liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 211,397 124,860 136,272

A1A(32)(2)Total liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,751,434 4,037,314 4,484,529

6

SUMMARY

As of December 31,

2003 2004 2005

(in millions of RMB)

Summary Historical Consolidated Balance Sheet Data(Continued)

EquityCapital and reserves attributable to equity holders of our bankShare capitalÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 186,390 186,390 209,427Capital reserveÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 32,976 (10,432) (5,954)Statutory reservesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 3,140 5,987General and regulatory reservesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 419 5,109(Accumulated losses)/undistributed proÑts ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (28,241) 16,547 10,188Reserve for fair value changes of available-for-sale securities 4,078 2,730 1,899Currency translation diÅerences ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,617 1,961 (237)

Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 196,820 200,755 226,419Minority interest ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 25,026 27,152 29,100

Total equityÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 221,846 227,907 255,519

Total equity and liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,973,280 4,265,221 4,740,048

As of or for theyear ended December 31,

2003 2004 2005

Selected Financial RatiosProÑtability ratios:

Return on total assets(1) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.86% 0.63% 0.67%Return on average total assets(2) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.94% 0.66% 0.70%Return on equity(3) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 15.76% 11.11% 11.45%Return on average equity(4) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 15.76%(5) 11.22% 12.14%Net interest spread(6) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2.08% 2.14% 2.21%Net interest margin(7) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2.16% 2.24% 2.33%Non-interest income to operating income(8)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 24.61% 23.64% 19.26%Operating expenses to operating income(8) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 45.36% 47.39% 47.95%Operating expenses to operating income

(excluding business and other taxes)(8) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 41.45% 43.08% 43.41%Asset and credit quality ratios:

IdentiÑed impaired loans to gross loans(9) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 16.58% 5.51% 4.90%Total allowance for impairment losses to identiÑed impaired

loans ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 66.73% 63.16% 75.92%Total allowance for impairment losses to gross loans(9) ÏÏÏÏÏÏ 11.06% 3.48% 3.72%

Other RatiosCore capital adequacy ratio(10) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ N/A 8.48% 8.08%Capital adequacy ratio(10) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ N/A 10.04% 10.42%Total equity to total assets(11) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.58% 5.34% 5.39%

(1) Represents the proÑt for the year (including proÑt attributable to minority interest) as a percentage of the year endbalance of total assets.

(2) Represents the proÑt for the year (including proÑt attributable to minority interest) as a percentage of the averagebalance of total assets as of the beginning and end of the year.

7

SUMMARY

(3) Represents the proÑt attributable to equity holders of our bank as a percentage of the year end balance of total equityexcluding minority interest.

(4) Represents the proÑt attributable to equity holders of our bank as a percentage of the average balance of total equityexcluding minority interest as of the beginning and end of the year.

(5) The amount for 2003 was calculated using total equity excluding minority interest as of December 31, 2003, as totalequity excluding minority interest as of January 1, 2003 was less than zero.

(6) Calculated as the diÅerence between the average yield on average interest-earning assets and the average cost onaverage interest-bearing liabilities.

(7) Calculated by dividing net interest income by average interest-earning assets.

(8) Operating income consists of net interest income, net fee and commission income, net trading income, net gains(losses) on investment securities, other operating income and net gains on sale of shares in a subsidiary.

(9) Gross loans represent the total amount of loans and advances to customers before allowance for impairment losses.

(10) Represents the consolidated ratios as of year end calculated in accordance with the CBRC guidelines and based onPRC GAAP Ñnancial data.

(11) Represents the year end balance of total equity as a percentage of the balance of total assets as of the year end date.

RISK FACTORS

There are certain risks and considerations relating to an investment in our Shares. These canbe categorized into: (i) risks relating to our loan portfolio; (ii) risks relating to our business;(iii) risks relating to the PRC banking industry; (iv) risks relating to the PRC; and (v) risks relatingto the Global OÅering. These risk factors and considerations are further described in ""Risk Factors''and are summarized below.

Risks Relating to Our Loan Portfolio

¬ If we are unable to eÅectively control and reduce the level of impaired loans and advancesin our current loan portfolio and in new loans we extend in the future, or if our allowance forimpairment losses on loans and advances is insuÇcient to cover actual loan losses, ourÑnancial condition and results of operations may be materially and adversely aÅected.

¬ If we are unable to realize the collateral or guarantees securing our loans to cover theoutstanding principal and interest balance of our loans, our Ñnancial condition and resultsof operations may be adversely aÅected.

¬ Loans due within one year account for a signiÑcant portion of our interest income, and anyfailure to maintain our position in the loan market may result in a signiÑcant decrease in ourinterest income.

¬ Our allowance for impairment losses on loans and advances is determined in accordancewith IAS 39, and future amendment to IAS 39 or interpretive guidance on the application ofIAS 39 may require us to signiÑcantly increase our allowance for impairment losses onloans and advances and materially aÅect our Ñnancial conditions and results of operations.

Risks Relating to Our Business

¬ We are in the process of improving our risk management and internal control systems andpractices, but our implementation of and compliance with some of these improved systemsand their eÅectiveness have not been fully tested. There are areas within our riskmanagement and internal control system that require further improvements. Our businessand prospects may be materially and adversely aÅected if our eÅorts to improve thesesystems prove to be ineÅective.

8

SUMMARY

¬ We may encounter diÇculties in eÅectively implementing centralized management andsupervision of our branches and subsidiaries, as well as consistent application of ourpolicies throughout our bank, and may not be able to timely detect or prevent fraud or othermisconduct by our employees or third parties.

¬ We are subject to Öuctuations in interest rates and currency exchange rates and othermarket risks, which may materially and adversely aÅect our Ñnancial condition and resultsof operations.

¬ We derive a signiÑcant portion of our proÑts from our overseas operations, particularlyfrom BOCHK, and any deterioration or disruption of these operations could materially andadversely aÅect our Ñnancial condition and results of operations.

¬ We are subject to credit risks relating to the ten-year bond issued by China Orient.

¬ We are subject to credit and funding risks with respect to certain oÅ-balance sheetarrangements.

¬ We are subject to risks associated with our derivative transactions.

¬ While we have experienced growth in recent years, our business, Ñnancial condition,results of operations and prospects could be adversely aÅected if we are unable tosuccessfully manage our growth or otherwise obtain suÇcient resources to support suchgrowth.

¬ Our liquidity may be adversely aÅected if we fail to maintain our deposit growth or if there isa signiÑcant decrease in our deposits.

¬ Any substantial failure to improve or upgrade our information technology infrastructureeÅectively or on a timely basis could materially and adversely aÅect our competitiveness,Ñnancial condition and results of operations.

¬ We are subject to PRC and overseas regulatory inspections, examinations, inquiries oraudits, and future sanctions, Ñnes and other penalties, if any, could materially andadversely aÅect our business, Ñnancial condition, results of operations and our reputation.

¬ Our largest shareholder is able to exercise signiÑcant control over us.

¬ Although we own a majority of the issued share capital of BOCHK Holdings, our ability toexercise control over BOCHK Holdings may be limited in certain circumstances.

¬ We may not be able to detect money laundering and other illegal or improper activities fullyor on a timely basis, which could expose us to additional liability and harm our business.

¬ We could be exposed to substantial penalties or other liabilities in the United States, andour business in the United States and our reputation may be adversely aÅected, if it weredetermined that business relationships resulted in prohibited transactions with countriesand entities that are the subject of U.S. sanctions.

¬ We have not obtained formal title certiÑcates to some of the properties we occupy andsome of our landlords lack relevant title certiÑcates for properties leased to us, which maymaterially and adversely aÅect our right to use such properties.

9

SUMMARY

Risks Relating to the PRC Banking Industry

¬ The increasingly competitive nature of the PRC banking industry, as well as competition forfunds which may arise from the developing PRC capital markets, could adversely aÅect ourbusiness, Ñnancial condition, results of operations and prospects.

¬ Our operations are highly regulated and our business, Ñnancial condition, results ofoperations and prospects may be materially and adversely aÅected by regulatory changesor other governmental policies, including their interpretation and application.

¬ PRC regulations impose certain limitations on the types of investments we may make, and,as a result, our ability to seek optimal investment returns and our ability to diversify ourinvestment portfolio or hedge the risks relating to our Renminbi-denominated assets arelimited.

¬ Investments in PRC commercial banks are subject to ownership restrictions that mayadversely aÅect the value of your investment.

¬ The eÅectiveness of our credit risk management function is aÅected by the quality andscope of information available in the PRC.

¬ Our loan classiÑcation guidelines are diÅerent from those applicable to banks in certainother countries or regions.

¬ The facts, forecasts and statistics contained in this prospectus with respect to the PRC,Hong Kong and Macau and their economies and banking industries are derived fromvarious governmental sources and may not be accurate, reliable, complete or up to date.

¬ Our business, Ñnancial condition, results of operations, prospects, and the value of yourinvestment may be adversely aÅected as a result of negative media coverage of the PRCbanking industry.

Risks Relating to the PRC

¬ PRC economic, political and social conditions, as well as government policies, could aÅectour asset quality, results of operations, Ñnancial condition and prospects.

¬ We are subject to the PRC Government controls on currency conversion.

¬ The PRC legal system could limit the legal protections available to you.

¬ You may experience diÇculties in eÅecting service of legal process and enforcingjudgments against us and our Directors and oÇcers.

¬ Holders of H Shares may be required to pay withholding tax on dividends.

¬ Payment of dividends is subject to restrictions under PRC laws.

Risks Relating to the Global OÅering

¬ Our actual Ñnancial performance could vary from the forecast Ñnancial informationcontained in this prospectus.

¬ An active trading market for our Shares may fail to develop or be sustained, which couldhave a material adverse eÅect on the market price and liquidity of our Shares.

¬ Future sales or perceived sales of substantial amounts of our securities in the publicmarket, including any future A Share OÅering, sale of our H Shares by SSF or re-

10

SUMMARY

registration of Shares held on our domestic share register into H Shares, could have amaterial adverse eÅect on the prevailing market price of our H Shares and our ability toraise capital in the future, and may result in dilution of your shareholdings.

¬ Since the OÅer Price of our H Shares is higher than the net tangible asset value per Share,you will incur immediate dilution.

LR11.18PROFIT FORECAST FOR THE YEAR ENDING DECEMBER 31, 2006(1)

Forecast consolidated proÑt attributable to equity holders of ourbank for the year ending December 31, 2006(2)(3)ÏÏÏÏÏÏÏÏÏÏÏÏ not less than RMB33,000

million (HK$31,918 million)Forecast earnings per Share(3) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ

(a) Pro forma basis(4)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ RMB0.136 (HK$0.132)(b) Weighted average basis(5) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ RMB0.143 (HK$0.138)

(1) All statistics in this table are based on the assumption that the Over-Allotment Option is not exercised.

(2) The bases and assumptions on which the above proÑt forecast has been prepared are set out in Appendix IV to thisprospectus.

(3) Forecast consolidated proÑt attributable to equity holders of our bank for the year ending December 31, 2006 andforecast earnings per Share are converted into Hong Kong dollars at the PBOC rate of HK$1.00 to RMB1.0339prevailing on May 2, 2006.

(4) The forecast earnings per Share on a pro forma basis is calculated by dividing the forecast consolidated proÑtattributable to equity holders of our bank for the year ending December 31, 2006 by a weighted average of241,854,139,211 Shares assumed to be issued and outstanding during the year ending December 31, 2006, assumingthe Over-Allotment Option is not exercised. The weighted average of 241,854,139,211 Shares, assuming the Over-Allotment Option is not exercised, is calculated based on 209,427,362,357 Shares issued and outstanding as ofDecember 31, 2005, 8,514,415,652 Shares issued on March 13, 2006 upon completion of the SSF Investment, and25,568,590,000 Shares to be issued pursuant to the Global OÅering on an assumption that the Global OÅering wascompleted on January 1, 2006.

(5) The forecast earnings per Share on a weighted average basis is calculated by dividing the forecast consolidated proÑtattributable to equity holders of our bank for the year ending December 31, 2006 by a weighted average of231,276,448,553 Shares assumed to be issued and outstanding during the year ending December 31, 2006, assumingthe Over-Allotment Option is not exercised. The weighted average of 231,276,448,553 Shares, assuming the Over-Allotment Option is not exercised, is calculated based on 209,427,362,357 Shares issued and outstanding as ofDecember 31, 2005, 8,514,415,652 Shares issued on March 13, 2006 upon completion of the SSF Investment, and25,568,590,000 Shares to be issued pursuant to the Global OÅering on an assumption that the Global OÅering wascompleted on June 1, 2006.

If the Over-Allotment Option is exercised in full, the forecast earnings per Share on a pro formabasis and a weighted average basis, calculated on the basis set out above, will be diluted toapproximately RMB0.134 (HK$0.130) and RMB0.141 (HK$0.137), respectively.

11

SUMMARY

A1A(21)OFFER STATISTICS

All statistics in this table are based on the assumption that the Over-Allotment Option is notexercised.

Based on an Based on an OÅerOÅer Price of HK$2.50 Price of HK$3.00

Market capitalization of the Shares(1)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ HK$608,776 HK$730,531million million

Prospective price/earnings multiple(a) Pro forma basis(2) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18.94 times 22.73 times(b) Weighted average basis(3)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18.11 times 21.74 times

Pro forma adjusted net tangible asset value per Share(4)ÏÏ HK$1.189 HK$1.242

(1) The calculation of market capitalization is based on 243,510,368,009 Shares expected to be issued and outstandingfollowing the Global OÅering.

(2) The calculation of the prospective price/earnings multiple on a pro forma basis is based on the forecast earnings perShare on a pro forma basis at the respective OÅer Prices of HK$2.50 and HK$3.00.

(3) The calculation of the prospective price/earnings multiple on a weighted average basis is based on the forecastearnings per Share on a weighted average basis at the respective OÅer Prices of HK$2.50 and HK$3.00.

(4) The pro forma adjusted net tangible asset value per Share is arrived at after the adjustments referred to in the sectionheaded ""Financial Information Ì Unaudited Pro Forma Adjusted Net Tangible Assets'' in this prospectus and on thebasis of 234,995,952,357 Shares in issue at the respective OÅer Prices of HK$2.50 and HK$3.00 per H Share. Noadjustment has been made to reÖect any business operations or other transactions of the Group entered intosubsequent to December 31, 2005 including, inter-alia, the subscription of 8,514,415,652 Shares by SSF on March 13,2006 for a consideration of RMB10 billion and a dividend in the amount of RMB1,375 million approved on April 30, 2006by our shareholders at a post-adjournment session of our annual general meeting.

If the Over-Allotment Option is exercised in full, assuming an OÅer Price of HK$2.75 (being themid-point of the estimated OÅer Price range of HK$2.50 to HK$3.00), the pro forma adjusted nettangible asset value per Share, calculated on the basis set out above, will be approximatelyRMB1.281 (HK$1.239).

USE OF PROCEEDS OF THE GLOBAL OFFERING

We estimate that we will receive net proceeds from the Global OÅering of approximatelyHK$68,071 million (RMB70,379 million, based on the PBOC rate of HK$1.00 • RMB1.0339prevailing on May 2, 2006), after deducting the estimated underwriting fees and expenses payableby us in the Global OÅering, assuming the Over-Allotment Option is not exercised, and assuming anOÅer Price of HK$2.75 per H Share, the mid-point of the estimated OÅer Price range of HK$2.50 toHK$3.00 per H Share. We intend to use these net proceeds to strengthen our capital base tosupport the ongoing growth of our business. See ""Future Plans and Use of Proceeds from theGlobal OÅering''.

12

SUMMARY

PROPOSED A SHARE OFFERING

We are in the process of preparing for an A Share OÅering and intend to pursue such oÅeringas soon as practicable. Subject to obtaining the relevant approvals and market conditions, we maypossibly undertake the A Share OÅering shortly after the Global OÅering. The proposed A ShareOÅering will comprise not more than 10,000,000,000 A Shares, all of which will be newly issuedshares, and will raise not more than RMB20,000 million, and will be within the limits approved by therelevant regulatory authorities. Assuming that we can complete our A Share OÅering by July 2007,no speciÑc approval by holders of our H Shares will be required. See ""A Share OÅering''.

There are risks associated with any investment. Some of the particular risks in investingin the OÅer Shares are set forth in ""Risk Factors''. You should read that section carefullybefore you decide to invest in the OÅer Shares.

13

DEFINITIONS

In this prospectus, unless the context otherwise requires, the following words and expressionshave the following meanings.

""10 Key Regions'' Beijing Municipality, Fujian Province, Guangdong Province,Jiangsu Province, Liaoning Province, Shandong Province,Shanghai Municipality, City of Shenzhen, Tianjin Municipality andZhejiang Province

""40 Key Cities'' Beijing, Changchun, Changsha, Chengdu, Chongqing, Dalian,Dongguan, Foshan, Fuzhou, Guangzhou, Hangzhou, Harbin,Hefei, Jinan, Kunming, Lanzhou, Nanchang, Nanjing, Nantong,Ningbo, Qingdao, Quanzhou, Shanghai, Shaoxing, Shenyang,Shenzhen, Shijiazhuang, Suzhou, Taiyuan, Tianjin, Urumqi,Wenzhou, Wuhan, Wuxi, Xi'an, Xiamen, Yantai, Zhengzhou,Zhongshan and Zhuhai

""A Share OÅering'' the proposed oÅering of not more than 10,000,000,000 A Sharesand raising not more than RMB20,000 million by the Company tothe public in the PRC

""A Share(s)'' Domestic Share(s) listed on a PRC stock exchange anddenominated in Renminbi

""ABC'' Agricultural Bank of China ( )

""ADB'' Asian Development Bank

""AFH'' Asia Financial Holdings Pte. Ltd.

""ATM'' automated teller machine

""Application Form(s)'' white application form(s) and yellow application form(s) or,where the context requires, any of them

""Articles of Association'' the articles of association of our bank, adopted on March 28, 2006

""Authoritative InterpretativeBodies''

the International Financial Reporting Interpretations Committeeand other relevant accounting standards interpretative bodies

""B Share(s)'' share(s) listed on a PRC stock exchange and denominated inforeign currencies

""Banking Ordinance'' the Banking Ordinance (Chapter 155 of the Laws of Hong Kong),as amended, supplemented or otherwise modified from time to time

""Bank Secrecy Act'' the United States Bank Secrecy Act of 1970, as amended

""Big Four'' ABC, CCB, ICBC and our bank

14

DEFINITIONS

""BOCHK'' Bank of China (Hong Kong) Limited ( ), acompany incorporated under the laws of Hong Kong and a wholly-owned subsidiary of BOCHK Holdings

""BOCHK (BVI)'' BOC Hong Kong (BVI) Limited

""BOCHK Group'' BOC Hong Kong (Group) Limited ( )

""BOCHK Holdings'' BOC Hong Kong (Holdings) Limited ( ), acompany incorporated under the laws of Hong Kong, in which wehold a 65.88% interest and the ordinary shares of which are listedon the Hong Kong Stock Exchange

""BOC Hong Kong Group'' BOCHK Holdings and its intermediate holding companies, BOCHKGroup and BOCHK (BVI)

""BOCG Insurance'' Bank of China Group Insurance Company Limited( )

""BOCG Investment'' Bank of China Group Investment Limited ( )

""BOCG Life'' BOC Group Life Assurance Company Limited ()

""BOCI'' BOC International Holdings Limited ( )

""BOCI Asia'' BOCI Asia Limited ( )

""BOCI China'' BOC International (China) Limited ( )

""BOCI Group'' BOCI and its subsidiaries and associated companies

""BOCI-Prudential'' BOCI-Prudential Asset Management Limited ()

""Board'' or ""Board ofDirectors''

the board of directors of our bank

""Board of BOCHK'' the board of directors of BOCHK

""Board of Supervisors'' the supervisory committee of our bank established pursuant to thePRC Company Law, as described in ""Directors, Supervisors,Senior Management and Employees''

""Bohai Rim Economic Zone'' the area including, for the purpose of this prospectus, BeijingMunicipality, Tianjin Municipality, Hebei Province, ShandongProvince and our head oÇce

""CBRC'' China Banking Regulatory Commission ()

15

DEFINITIONS

""CCASS'' the Central Clearing and Settlement System established andoperated by HKSCC

""CCASS Broker Participant'' a person admitted to participate in CCASS as a broker participant

""CCASS CustodianParticipant''

a person admitted to participate in CCASS as a custodianparticipant

""CCASS Investor Participant'' a person or persons admitted to participate in CCASS as aninvestor participant who may be an individual or joint individuals ora corporation

""CCASS Participant'' a CCASS Broker Participant or a CCASS Custodian Participant ora CCASS Investor Participant

""CCB'' China Construction Bank Corporation () and its predecessors

""CDM'' cash deposit machine

""CEPA'' the Mainland and Hong Kong Closer Economic PartnershipArrangement

""CIRC'' China Insurance Regulatory Commission ()

""CNAO'' National Audit OÇce of the PRC ( )

""CRS'' customer recycle system, which combines the functions of ATMand CDM

""CSRC'' China Securities Regulatory Commission ()

""Central and Southern China'' the area including, for the purpose of this prospectus, HenanProvince, Hubei Province, Hunan Province, Guangdong ProvinceGuangxi Autonomous Region and Hainan Province

""China Orient'' China Orient Asset Management Corporation (), an asset management company established by the PRC

Government for management and disposal of non-performingloans acquired from PRC commercial banks

""Cinda'' China Cinda Asset Management Corporation () , an asset management company established by

the PRC Government for management and disposal of non-performing loans acquired from PRC commercial banks

16

DEFINITIONS

""Companies Ordinance'' the Companies Ordinance (Chapter 32 of the Laws of HongKong), as amended, supplemented or otherwise modiÑed fromtime to time

""Connected Transactions'' as deÑned under Chapter 14A of the Hong Kong Listing Rules

""Corporate GovernanceGuidelines''

the Corporate Governance Guidelines for Joint Stock CommercialBanks ( ), as enacted by the PBOCon June 4, 2002 and eÅective on the same date

""Corporate Investors'' means the persons named in the section headed ""Our Strategicand Other Investors Ì Our Corporate Investors'' who haveagreed to subscribe for an aggregate of approximatelyHK$17,521 million of H Shares at the OÅer Price

""Derivative BusinessMeasures''

the Provisional Administrative Measures on DerivativeBusiness of Financial Institutions (

), as enacted by the CBRC on February 4,2004 and eÅective on March 1, 2004

""Director(s)'' the director(s) of our bank

""domestic operations'' unless otherwise indicated, the operations of our head oÇce(including the treasury operations conducted in Hong Kong by ourglobal markets department) and its branches and outlets in thePRC

""Domestic Shares'' ordinary shares issued by our bank, with a nominal value ofRMB1.00 each, which are subscribed for or credited as paid inRenminbi

""Eastern China'' the area including, for the purpose of this prospectus, ShanghaiMunicipality, Jiangsu Province, Zhejiang Province, AnhuiProvince, Fujian Province, Jiangxi Province and ShandongProvince

""Euros'' or ""EUR'' the lawful currency of the member states of the European Unionthat adopted the single currency in accordance with the Treatyestablishing the European Community (signed in Rome onMarch 25, 1957), as amended by the Treaty on European Union(signed in Maastricht on February 7, 1992)

""FSMA'' Financial Services and Markets Act 2000

""Foreign Shares'' ordinary shares issued by our bank, with a nominal valuedenominated in Renminbi, which are subscribed for in a currencyother than Renminbi

""Foreign-Invested FinancialInstitutions Regulations''

the PRC Administrative Regulations on Foreign-InvestedFinancial Institutions ( )

17

DEFINITIONS

and the Implementing Rules of the PRC AdministrativeRegulations on Foreign-Invested Financial Institutions( ), as enacted bythe State Council on December 20, 2001 and by the CBRC onJuly 26, 2004, respectively, and eÅective on February 1, 2002 andSeptember 1, 2004, respectively, as amended, supplemented orotherwise modiÑed from time to time

""GDP'' gross domestic product (all references to GDP growth rates arereal as opposed to nominal rates of GDP growth)

""Global OÅering'' the Hong Kong Public OÅering and the International OÅering

""Goldman Sachs'' Goldman Sachs (Asia) L.L.C.

""Guidelines on Bank ofChina and ChinaConstruction Bank''

the Guidelines on the Corporate Governance Reformsand Supervision of Bank of China and China ConstructionBank ( ), aspromulgated by the CBRC on March 11, 2004, as superceded bythe Guidelines on the Corporate Governance and Supervision ofState-owned Commercial Banks, as promulgated by the CBRC,eÅective April 24, 2006

""H Shares'' ordinary shares of our bank, with a nominal value of RMB1.00each, which are to be listed on the Hong Kong Stock Exchangeand traded in Hong Kong dollars

""HK$'' or ""Hong Kongdollars''

Hong Kong dollars, the lawful currency of Hong Kong

""HKFRS'' Hong Kong Financial Reporting Standards promulgated by theHKICPA which include Hong Kong Accounting Standards and theirinterpretations

""HKGAAP'' generally accepted accounting principles in Hong Kong

""HKICPA'' Hong Kong Institute of CertiÑed Public Accountants

""HKMA Guidelines'' the Financial Disclosure by Locally Incorporated AuthorizedInstitutions guideline and New Hong Kong Accounting Standards:Impact on Interim Financial Disclosure guideline issued by theHKMA

""HKSCC'' Hong Kong Securities Clearing Company Limited ()

""HKSCC Nominees'' HKSCC Nominees Limited ( )

""Hong Kong'' or ""HK'' the Hong Kong Special Administrative Region of the PRC

18

DEFINITIONS

""Hong Kong Listing Rules'' the Rules Governing the Listing of Securities on The StockExchange of Hong Kong Limited

""Hong Kong MonetaryAuthority'' or ""HKMA''

The Hong Kong Monetary Authority ( )

""Hong Kong OÅer Shares'' the 1,278,430,000 OÅer Shares initially being oÅered forsubscription in the Hong Kong Public OÅering (subject toadjustment as described in ""Structure of the Global OÅering'')

""Hong Kong Public OÅering'' the oÅer for subscription of OÅer Shares in Hong Kong (subject toadjustment as described in ""Structure of the Global OÅering'') atthe OÅer Price (plus brokerage, SFC transaction levy and HongKong Stock Exchange trading fee) and on and subject to theterms and conditions described in this prospectus and theApplication Forms, as further described in ""Structure of the GlobalOÅering Ì The Hong Kong Public OÅering''

""Hong Kong StockExchange''

The Stock Exchange of Hong Kong Limited ()

""Hong Kong Underwriters'' the Underwriters listed in ""Hong Kong Underwriters'' under""Underwriting''

""Hong Kong UnderwritingAgreement''

the underwriting agreement dated on or about May 17, 2006relating to the Hong Kong Public OÅering entered into among us,the Joint Global Coordinators and the Hong Kong Underwriters

""Huijin'' Central SAFE Investments Limited ( )

""IAS 39'' International Accounting Standard 39 ""Financial Instruments:Recognition and Measurement'' and its interpretations by theIASB

""IASB'' the International Accounting Standards Board

""ICBC'' Industrial and Commercial Bank of China Limited () and its predecessors

""IFRS'' International Financial Reporting Standards promulgated by theIASB, which include International Accounting Standards and theirinterpretations

""Information DisclosureMeasures''

the Provisional Measures on the Information Disclosure ofCommercial Banks ( ), as enacted bythe PBOC on May 21, 2002 and eÅective on the same date

19

DEFINITIONS

""Internal Control Guidelines'' the Internal Control Guidelines for Commercial Banks( ), as enacted by the PBOC onSeptember 18, 2002 and eÅective on the same date

""International OÅering'' the oÅer of certain OÅer Shares outside the United States(including to institutional and professional investors in Hong Kong(other than to retail investors in Hong Kong) and a public oÅeringwithout listing to investors, including retail investors, in Japan),and in the United States to QIBs as deÑned in Rule 144A, asfurther described in ""Structure of the Global OÅering Ì TheInternational OÅering''

""International OÅeringShares''

a total of 24,290,160,000 H Shares initially being oÅered under theInternational OÅering, subject to adjustment and the Over-Allotment Option

""International PurchaseAgreement''

the international purchase agreement relating to the InternationalOÅering, expected to be entered into between our bank and theJoint Global Coordinators as the representatives of theInternational Purchasers on or about May 24, 2006

""International Purchasers'' the group of initial purchasers led by BOCI Asia, Goldman Sachsand UBS (in alphabetical order) that is expected to enter into theInternational Purchase Agreement to underwrite the InternationalOÅering

""Japanese yen'' the lawful currency of Japan

""Joint Bookrunners'' BOCI Asia, Goldman Sachs and UBS (in alphabetical order)

""Joint Global Coordinators'' BOCI Asia, Goldman Sachs and UBS (in alphabetical order)

""Joint Sponsors'' BOCI Asia, Goldman Sachs and UBS (in alphabetical order)

""Joint Stock Reform Plan'' Master Implementation Plan for the Joint Stock Reform approvedby the State Council on December 30, 2003

""Latest Practicable Date'' May 2, 2006, being the latest practicable date for the purposes ofascertaining certain information contained in this prospectus

""LIBOR'' London Inter-Bank OÅered Rate

""Listing Committee'' the listing committee of the Hong Kong Stock Exchange

""Listing Date'' the date, expected to be on or about June 1, 2006, on which ourH Shares are Ñrst listed and from which dealings therein arepermitted to take place on the Hong Kong Stock Exchange

20

DEFINITIONS

""Loan ClassiÑcationPrinciples''

the Guiding Principles on the ClassiÑcation of Loan RiskManagement ( ) as promulgated by thePBOC on December 24, 2001 and eÅective on January 1, 2002

""MPF'' Hong Kong Mandatory Provident Fund Schemes

""Macau'' the Macau Special Administrative Region of the PRC

""Mandatory Provisions'' the Mandatory Provisions for Articles of Association ofCompanies to be Listed Overseas (

), for inclusion in the articles of association of companiesincorporated in the PRC to be listed overseas, which werepromulgated by the PRC Securities Commission and the StateRestructuring Commission on August 27, 1994, as amended andsupplemented from time to time

""Market Risk ManagementGuidelines''

the Guidelines on Market Risk Management of Commercial Banks( ), as promulgated by the CBRC onDecember 29, 2004 and eÅective on March 1, 2005

""Ministry of Finance'' or""MOF''

the PRC Ministry of Finance ( ), which isresponsible for the administration of state revenues andexpenditures, Ñnancial and taxation policies and overallsupervision of Ñnancial institutions

""NDRC'' National Development and Reform Commission of the PRC( )

""Net Regulatory Capital'' both core capital and supplementary capital, less certaindeductions (including equity investments in other banks andenterprises, and investments in real estate not for self-use)

""New Capital AdequacyRegulations''

the Administrative Measures on the Capital Adequacy Ratioof Commercial Banks ( ), aspromulgated by the CBRC on February 23, 2004 and eÅective onMarch 1, 2004

""Northeastern China'' the area including, for the purpose of this prospectus,Heilongjiang Province, Jilin Province and Liaoning Province

""Northern China'' the area including, for the purpose of this prospectus, BeijingMunicipality, Tianjin Municipality, Hebei Province, ShanxiProvince, Inner Mongolia Autonomous Region and our head oÇce

""NPC'' or ""National People'sCongress''

the PRC National People's Congress ( )

""OCC'' the OÇce of the Comptroller of the Currency of the United StatesDepartment of the Treasury

21

DEFINITIONS

""OFAC'' the OÇce of Foreign Assets Control of the United StatesDepartment of the Treasury

""OÅer Price'' the Ñnal Hong Kong dollar price per Hong Kong OÅer Share(exclusive of brokerage, SFC transaction levy and Hong KongStock Exchange trading fee) at which Hong Kong OÅer Sharesare to be subscribed, to be determined in the manner described in""Structure of the Global OÅering''

""OÅer Shares'' the H Shares oÅered in the Global OÅering, including any HShares to be sold pursuant to the exercise of the Over-AllotmentOption

""Operational Risk ControlCircular''

the Circular on Strengthening Control of Operational Risk( ) as issued by the CBRCon March 22, 2005 and eÅective on the same date

""Our bank'', the ""Company'',the ""Group'', ""we'', and""us''

Bank of China Limited ( ) or itspredecessors and, except where the context otherwise requires,all of the subsidiaries of Bank of China Limited

""Over-Allotment Option'' the option to be granted by us to the International Purchasers,exercisable by the Joint Global Coordinators on behalf of theInternational Purchasers for up to 30 days from the last day forlodging of applications under the Hong Kong Public OÅering, torequire us to issue and sell up to an aggregate of 3,835,288,000additional H Shares as described in ""Underwriting''

""overseas operations'' unless otherwise indicated, the operations of our branches andsubsidiaries in Hong Kong, Macau and other overseas locationsand their branches and subsidiaries, some of which are located inthe PRC

""PBOC'' the People's Bank of China ( ), the central bank ofthe PRC

""Pearl River Delta'' the area including, for purposes of this prospectus only,Guangdong Province, Fujian Province and City of Shenzhen

""PRC'', ""China'' or ""ChineseMainland''

the People's Republic of China, excluding, for purposes of thisprospectus only, Hong Kong, Macau and Taiwan

""PRC Banking RegulatoryLaw''

the PRC Banking Regulatory Law (), which was enacted by the Standing Committee of

the Eleventh NPC on December 27, 2003 and eÅective onFebruary 1, 2004

""PRC Commercial BankingLaw''

the Commercial Banking Law of the PRC (), as enacted by the Standing Committee of the

22

DEFINITIONS

Eighth NPC on May 10, 1995 and eÅective on July 1, 1995, asamended, supplemented or otherwise modiÑed from time to time

""PRC Company Law'' the Company Law of the PRC ( ), asenacted by the Standing Committee of the Eighth NPC onDecember 29, 1993 and eÅective on July 1, 1994, as amended,supplemented or otherwise modiÑed from time to time

""PRC GAAP'' Accounting Standards for Business Enterprises and theAccounting System for Financial Institutions of the PRC

""PRC Government'' or""State''

the central government of the PRC including all governmentalsubdivisions (including provincial, municipal and other regional orlocal government entities) and instrumentalities thereof or, wherethe context requires, any of them

""PRC People's Bank ofChina Law''

the Law of the People's Bank of China (), as enacted by the Eighth NPC on March 18,

1995 and eÅective on the same date, as amended, supplementedor otherwise modiÑed from time to time

""PRC Securities Law'' the Securities Law of the PRC ( ), asenacted by the Ninth NPC on December 29, 1998 and eÅective onJuly 1, 1999, as amended, supplemented or otherwise modiÑedfrom time to time

""Pre-Global OÅering ShareCapital''

our outstanding share capital before the completion of the GlobalOÅering

""Price Determination Date'' the date, expected to be on or around May 24, 2006 but, in anyevent, not later than May 29, 2006 on which the OÅer Price will beÑxed

""Provision Guidelines'' the Guidelines regarding the Loan Loss Provisions of Banks( ), as promulgated by the PBOC onApril 2, 2002 and eÅective on January 1, 2002

""QIBs'' qualiÑed institutional buyers as deÑned in Rule 144A under theU.S. Securities Act

""RBS Bank'' The Royal Bank of Scotland plc

""RBS China'' RBS China Investments S. fia r.l.

""RBS Group'' The Royal Bank of Scotland Group plc

""Regulation S'' Regulation S under the U.S. Securities Act

""Related Party TransactionsMeasures''

the Administrative Measures on Transactions withInsiders and Shareholders of Commercial Banks

23

DEFINITIONS

( ), as promulgated bythe CBRC on April 2, 2004 and eÅective on May 1, 2004

""RMB'' or ""Renminbi'' Renminbi, the lawful currency of the PRC

""Rule 144A'' Rule 144A under the U.S. Securities Act

""SAIC'' State Administration for Industry and Commerce( )

""SARS'' Severe Acute Respiratory Syndrome

""SCMP'' South China Morning Post

""SFC'' the Securities and Futures Commission of Hong Kong( )

""SFO'' the Securities and Futures Ordinance (Chapter 571 of the Laws ofHong Kong), as amended, supplemented or otherwise modiÑedfrom time to time

""SSF'' National Council for Social Security Fund ()

""Securities and Futures(Stock Market Listing)Rules''

the rules governing listings and listed companies under theSecurities and Futures Ordinance, as promulgated by the SFC onApril 1, 2003 and eÅective on the same date

""Shares'' ordinary shares in the capital of our bank with a nominal value ofRMB1.00 each, comprising Domestic Shares, Unlisted ForeignShares and H Shares

""Special Regulations'' the Special Regulations on the Overseas OÅering and Listingof Shares by Joint Stock Limited Companies( )issued by the State Council of the PRC on August 4, 1994, asamended, supplemented or otherwise modiÑed from time to time

""Stabilizing Manager'' Goldman Sachs (Asia) L.L.C.

""State Administration ofForeign Exchange'' or""SAFE''

the PRC State Administration of Foreign Exchange( )

""State Council'' the PRC State Council ( )

""Strategic Placement'' see ""Our Strategic and Other Investors''

""Supervisors'' the members of the Board of Supervisors of our bank

""Temasek'' Temasek Holdings (Pte.) Ltd.

24

DEFINITIONS

""Trial Regulations on CoreRegulatory Ratios''

the Trial Regulations on Core Regulatory Ratios with respect toRisk Supervision for the PRC Commercial Banks (

), as promulgated by the CBRC, eÅectiveon January 1, 2006

""UBS'' UBS AG acting through its business group, UBS Investment Bank

""Underwriters'' the Hong Kong Underwriters and the International Purchasers

""Underwriting Agreements'' the Hong Kong Underwriting Agreement and the InternationalPurchase Agreement

""Unlisted Foreign Shares'' ordinary shares issued by our bank, with a nominal value ofRMB1.00 each, which are subscribed for in a currency other thanRenminbi, or the consideration for which is the injection of assets,and are held by persons other than PRC nationals or PRCcorporate entities and are not listed on any stock exchange

""United States'' the United States of America

""U.S. Exchange Act'' the United States Securities Exchange Act of 1934, as amended

""U.S. Securities Act'' the United States Securities Act of 1933, as amended

""US$'', or ""U.S. dollars'' United States dollars, the lawful currency of the United States

""Western China'' the area including, for the purpose of this prospectus, ChongqingMunicipality, Sichuan Province, Guizhou Province, YunnanProvince, Shaanxi Province, Gansu Province, NingxiaAutonomous Region, Qinghai Province, Tibet Autonomous Regionand Xinjiang Autonomous Region

""WTO'' the World Trade Organization

""Yangtze River Delta'' the area including, for purposes of this prospectus, ShanghaiMunicipality, Jiangsu Province and Zhejiang Province

25

FORWARD-LOOKING STATEMENTS

This prospectus contains forward-looking statements that are, by their nature, subject tosigniÑcant risks and uncertainties. These forward-looking statements include, without limitation,statements relating to:

¬ our business strategies and our various initiatives to implement these strategies;

¬ the future competitive environment in the PRC banking industry;

¬ our dividend policy;

¬ our business cooperation and relationship with our strategic investors;

¬ our capital expenditure plans, particularly plans relating to the upgrading of our informationtechnology infrastructure;

¬ our development plans for our existing and new products;

¬ our existing risk management framework and our ability to improve such system;

¬ the regulatory environment as well as the general industry outlook for the PRC bankingindustry; and

¬ future developments in the PRC banking industry.

The words ""anticipate'', ""believe'', ""could'', ""estimate'', ""predict'', ""potential'', ""continue'',""expect'', ""intend'', ""may'', ""plan'', ""seek'', ""will'', ""would'', ""should'' and the negative of theseterms and other similar expressions identify a number of these forward-looking statements. Someof these forward-looking statements relate to future events or our future Ñnancial, business or otherperformance and development and are subject to a number of uncertainties that may cause actualresults to diÅer materially. We have highlighted these uncertainties in ""Risk Factors'', including butnot limited to:

¬ general economic, market and business conditions in the PRC, including the sustainabilityof high economic growth rates in the PRC;

¬ any changes to the laws, rules and regulations of the central and local governments in thePRC and the rules, regulations and policies of the CBRC, the PBOC and other r