Public Notice regarding Remainder Shares of China Guangfa Bank Co., Ltd.¡¯s 2010 Increase of Shares

To satisfy business expansion needs and to comply with regulations, China Guangfa Bank Co., Ltd. (¡°CGB¡±) plans to issue new shares (¡°Share Increase¡±) in accordance with the Resolution regarding the Plan on the 2010 Additional Share Issuance (¡°Share Increase Plan¡±) passed by the first special shareholder meeting of 2010 held on April 8th, 2010 in order to raise capital and the capital sufficiency ratio.  CGB has already issued the Notice regarding Guangdong Development Bank Co., Ltd.¡¯s 2010 Increase of Shares (¡°Share Increase Notice¡±) pursuant to CGB¡¯s Articles of Association and the Share Increase Plan. Because the total shares increased in the Share Increase has not been fully subscribed in the first round of subscription, according to CGB¡¯s Articles of Association, the Share Increase Plan and the Share Increase Notice, CGB therefore issue this Public Notice.

1.              Important Reminder

1.1          On April 8th, 2010 CGB¡¯s first special shareholder meeting of 2010 passed the Share Increase Plan. The Share Increase Plan has been approved by the China Banking Regulatory Commission (¡°CBRC¡±).

1.2          The relevant contents of this Notice may be revised in accordance with the requirements of the CBRC and/or the authorization of the shareholder meeting.

2.              The Second Round of Subscription

Because the total shares increased in the Share Increase has not been fully subscribed in the first round of subscription, the second round of subscription is held. Only the shareholders who have subscribed for all of their shares issued pro rata in the first round and actually pay CGB the subscription price for second round shares may participate in the second round. In the second round of the Share Increase, shareholders may, subject to a subscription price of RMB 4.38 per share, subscribe for all or part of the shares available in the second round in proportion to their shareholding in CGB as of the day of record of the Share Increase.

3.              CGB¡¯s Contact Information

Contact person: Cao Huafeng, Wang Zhicong, Huang Qiang

Contact telephone: 020-38322703 38322663 38322946

Fax: 020-87311722

Contact address: The Board Office Rm.3008, CGB Tower, No. 83, Road Nong Lin Xia, Guangzhou

Postal code: 510080

4.              Other

4.1          Issues not mentioned in this Public Notice shall be subject to the Share Increase Notice.

4.2          This Public Notice is written in both Chinese and English. If there is any inconsistency between the Chinese version and the English version, the Chinese version shall prevail.

4.3          CGB¡¯s board of directors has the sole right to interpret this Public Notice.

China Guangfa Bank Co., Ltd.

July 23, 2010