IMPORTANT NOTICE THIS OFFERING IS AVAILABLE ONLY TO INVESTORS WHO ARE ADDRESSEES OUTSIDE OF THE UNITED STATES.

Transcription

1 IMPORTANT NOTICE THIS OFFERING IS AVAILABLE ONLY TO INVESTORS WHO ARE ADDRESSEES OUTSIDE OF THE UNITED STATES. IMPORTANT: You must read the following disclaimer before continuing. The following disclaimer applies to the attached offering circular. You are advised to read this disclaimer carefully before accessing, reading or making any other use of the attached offering circular. In accessing the attached offering circular, you agree to be bound by the following terms and conditions, including any modifications to them from time to time, each time you receive any information from us as a result of such access. Confirmation of Your Representation: This offering circular is being sent to you at your request and by accepting the and accessing the attached document, you shall be deemed to represent to each of Industrial and Commercial Bank of China (Asia) Limited (the Issuer ), The Hongkong and Shanghai Banking Corporation Limited, ICBC International Securities Limited and Merrill Lynch International (together, the Arrangers ) that (1) you and any customers you represent are not U.S. persons (as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the Securities Act )) and that the address that you gave us and to which this has been delivered is not located in the United States, its territories or possessions, and (2) that you consent to delivery of the attached and any amendments or supplements thereto by electronic transmission. The attached document has been made available to you in electronic form. You are reminded that documents transmitted via this medium may be altered or changed during the process of transmission and consequently none of the Issuer, the Arrangers nor their respective affiliates and their respective directors, officers, employees, representatives, agents and each person who controls the Issuer, an Arranger or their respective affiliates accepts any liability or responsibility whatsoever in respect of any discrepancies between the document distributed to you in electronic format and the hard copy version. We will provide a hard copy version to you upon request. THE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE SECURITIES ACT, OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR OTHER JURISDICTION AND THE SECURITIES MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO U.S. PERSONS. THIS OFFERING IS MADE SOLELY TO NON-U.S. PERSONS IN OFFSHORE TRANSACTIONS PURSUANT TO REGULATION S UNDER THE SECURITIES ACT. Nothing in this electronic transmission constitutes an offer or an invitation by or on behalf of either the Issuer or the Arrangers to subscribe for or purchase any of the securities described therein, and access has been limited so that it shall not constitute in the United States or elsewhere a general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) or directed selling efforts (within the meaning of Regulation S under the Securities Act). If a jurisdiction requires that the offering be made by a licensed broker or dealer and an Arranger or any affiliate of it is a licensed broker or dealer in that jurisdiction, the offering shall be deemed to be made by it or such affiliate on behalf of the Issuer in such jurisdiction. You are reminded that you have accessed the attached offering circular on the basis that you are a person into whose possession this offering circular may be lawfully delivered in accordance with the laws of the jurisdiction in which you are located and you may not nor are you authorized to deliver this document, electronically or otherwise, to any other person. If you have gained access to this transmission contrary to the foregoing restrictions, you are not allowed to purchase any of the securities described in the attached. Actions that You May Not Take: If you receive this document by , you should not reply by to this announcement, and you may not purchase any securities by doing so. Any reply communications, including those you generate by using the Reply function on your software, will be ignored or rejected. YOU ARE NOT AUTHORIZED TO AND YOU MAY NOT FORWARD OR DELIVER THE ATTACHED OFFERING CIRCULAR, ELECTRONICALLY OR OTHERWISE, TO ANY OTHER PERSON OR REPRODUCE SUCH OFFERING CIRCULAR IN ANY MANNER WHATSOEVER. ANY FORWARDING, DISTRIBUTION OR REPRODUCTION OF THE ATTACHED OFFERING CIRCULAR IN WHOLE OR IN PART IS UNAUTHORIZED. FAILURE TO COMPLY WITH THIS DIRECTIVE MAY RESULT IN A VIOLATION OF THE SECURITIES ACT OR THE APPLICABLE LAWS OF OTHER JURISDICTIONS. You are responsible for protecting against viruses and other destructive items. If you receive this document by , your use of this is at your own risk and it is your responsibility to take precautions to ensure that it is free from viruses and other items of a destructive nature.

2 INDUSTRIAL AND COMMERCIAL BANK OF CHINA (ASIA) LIMITED (incorporated with limited liability in Hong Kong) US$5,000,000,000 Medium Term Note Programme On 22 November 2010, Industrial and Commercial Bank of China (Asia) Limited (the Issuer or the Bank) established a US$5,000,000,000 Medium Term Note Programme (the Programme) and prepared an Offering Circular dated 22 November This Offering Circular updates the Programme and supersedes any previous offering circular describing the Programme. Any Notes (as defined below) issued under this Programme on or after the date of this Offering Circular are issued subject to the provisions described herein. This does not affect any Notes issued before the date of this Offering Circular. Under the Programme, the Issuer, subject to compliance with all relevant laws, regulations and directives, may from time to time issue notes (the Notes) denominated in any currency agreed between the Issuer and the relevant Dealer (as defined below). Notes may be issued in bearer or registered form (respectively Bearer Notes and Registered Notes). The maximum aggregate nominal amount of all Notes from time to time outstanding under the Programme will not exceed US$5,000,000,000 (or its equivalent in other currencies calculated as described in the Programme Agreement described herein), subject to increase as described herein. The Notes may be issued on a continuing basis to one or more of the Dealers specified under Summary of the Programme and any additional Dealer appointed under the Programme from time to time by the Issuer (each a Dealer and together the Dealers), which appointment may be for a specific issue or on an ongoing basis. References in this Offering Circular to the relevant Dealer shall, in the case of an issue of Notes being (or intended to be) subscribed by more than one Dealer, be to all Dealers agreeing to subscribe such Notes. Approval in-principle has been received from the Singapore Exchange Securities Trading Limited (the SGX-ST) for the listing of any Notes that may be issued pursuant to the Programme and which are agreed at or prior to the time of issue thereof to be so listed on the SGX-ST. The SGX-ST assumes no responsibility for the correctness of any of the statements made or opinions expressed or reports contained herein. The approval in-principle from, and the admission of any Notes to the Official List of, the SGX-ST are not to be taken as indications of the merits of the Issuer, the Programme or the Notes. Notice of the aggregate nominal amount of Notes, interest (if any) payable in respect of Notes, the issue price of Notes and any other terms and conditions not contained herein which are applicable to each Tranche (as defined under Terms and Conditions of the Notes ) of Notes will be set out in a pricing supplement (the Pricing Supplement) which, with respect to Notes to be listed on the SGX-ST, will be delivered to the SGX-ST before the date of listing of the Notes of such Tranche. The Programme provides that Notes may be listed or admitted to trading, as the case may be, on such other or further stock exchanges or markets as may be agreed between the Issuer and the relevant Dealer. The Issuer may also issue unlisted Notes. Each Tranche of Notes of each Series (as defined in Form of the Notes ) of Notes in bearer form will be represented on issue by a temporary global note in bearer form (each a Temporary Bearer Global Note) or a permanent global note in bearer form (each a Permanent Bearer Global Note). Notes in registered form will initially be represented by a global note in registered form (each a Registered Global Note and together with any Temporary Bearer Global Notes and Permanent Bearer Global Notes, the Global Notes and each a Global Note). Global Notes may be deposited on the issue date with a common depositary for Euroclear Bank SA/NV (Euroclear) and Clearstream Banking, société anonyme (Clearstream, Luxembourg). Global Notes may also be deposited with a sub-custodian for the Hong Kong Monetary Authority (the HKMA), as operator of the Central Moneymarkets Unit Service, operated by the Hong Kong Monetary Authority (the CMU Service). The provisions governing the exchange of interests in Global Notes for other Global Notes and definitive Notes are described in Form of the Notes. The Issuer may agree with any Dealer (as defined herein) that the Notes may be issued in a form not contemplated by the Terms and Conditions of the Notes herein, in which event (in the case of Notes intended to be listed on the SGX-ST) a supplementary offering circular, if appropriate, will be made available which will describe the effect of the agreement reached in relation to such Notes. Notes issued under the Programme may be rated or unrated. Where an issue of a certain series of Notes is rated, its rating will not necessarily be the same as the rating applicable to the Programme and (where applicable) such rating will be specified in the relevant Pricing Supplement. A rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, change or withdrawal at any time by the assigning rating agency. See Investment Considerations for a discussion of certain factors to be considered in connection with an investment in the Notes. Arrangers BofA MERRILL LYNCH HSBC ICBC INTERNATIONAL Dealers BofA Merrill Lynch CIBC Crédit Agricole CIB Credit Suisse HSBC ICBC International The date of this Offering Circular is 30 September 2011

3 To the best of the knowledge and belief of the Issuer (having made all reasonable enquiries to ensure that such is the case) the information contained in this Offering Circular is in accordance with the facts and does not omit anything that would make the statements therein, in light of the circumstances which they were made misleading. The Issuer, having made all reasonable enquiries, confirms that this Offering Circular contains or incorporates all information which is material in the context of the issue and offering of the Notes, that the information contained or incorporated in this Offering Circular is true and accurate in all material respects and is not misleading, that the opinions and intentions expressed in this Offering Circular are honestly held and that there are no other facts the omission of which would make this Offering Circular or any of such information or the expression of any such opinions or intentions misleading. The Issuer accepts responsibility accordingly. No person is or has been authorised by the Issuer to give any information or to make any representations other than those contained in this Offering Circular in connection with the Programme or the Notes and, if given or made, such information or representations must not be relied upon as having been authorised by the Issuer, the Arrangers or the Dealers. The Arrangers and the Dealers have not separately verified the information contained in this Offering Circular to the fullest extent permitted by law. None of the Arrangers nor the Dealers makes any representation, warranty or undertaking, express or implied, or accepts any responsibility, with respect to the accuracy or completeness of any of the information in this Offering Circular. To the fullest extent permitted by law, none of the Arrangers nor the Dealers accepts any responsibility for the contents of this Offering Circular. Each of the Arrangers and the Dealers accordingly disclaims all and any liability whether arising in tort or contract or otherwise (save as referred to above) which it might otherwise have in respect of this Offering Circular or any such statement. Neither this Offering Circular nor any financial statements included or incorporated herein are intended to provide the basis of any credit or other evaluation and should not be considered as a recommendation by any of the Issuer, the Arrangers or the Dealers that any recipient of this Offering Circular or any such financial statements should purchase the Notes. Each potential purchaser of Notes should determine for itself the relevance of the information contained in this Offering Circular and make its own independent investigation of the financial condition and affairs, and its own appraisal of the creditworthiness, of the Issuer and the risks involved. The purchase of Notes by investors should be based upon their investigation as they deem necessary. None of the Arrangers nor the Dealers undertakes to review the financial condition or affairs of the Issuer and, the Issuer and its subsidiaries taken as a whole (together, the Group) during the life of the arrangements contemplated by this Offering Circular nor to advise any investor or potential investor in the Notes of any information coming to the attention of any of the Arrangers or the Dealers. Neither this Offering Circular nor any other information supplied in connection with the Programme or the issue of any Notes constitutes an offer or invitation by or on behalf of the Issuer, any of the Arrangers or the Dealers to any person to subscribe for or to purchase any Notes. Neither the delivery of this Offering Circular nor the offering, sale or delivery of any Notes shall in any circumstances imply that the information contained herein concerning the Issuer is correct at any time subsequent to the date hereof or that any other information supplied in connection with the Programme is correct as of any time subsequent to the date indicated in the document containing the same. The Arrangers and the Dealers expressly do not undertake to review the financial condition or affairs of the Issuer during the life of the Programme or to advise any investor in the Notes of any information coming to their attention. Investors should review, inter alia, the most recently published documents incorporated by reference into this Offering Circular when deciding whether or not to purchase any Notes. The Notes have not been and will not be registered under the United States Securities Act of 1933, as amended (the Securities Act), and are subject to U.S. tax law requirements. Subject to certain ii

4 exceptions, the Notes may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act). For a further description of certain restrictions on the offering and sale of the Notes and on distribution of this Offering Circular, see Subscription and Sale. This Offering Circular does not constitute an offer to sell or the solicitation of an offer to buy any Notes in any jurisdiction to any person to whom it is unlawful to make the offer or solicitation in such jurisdiction. The distribution of this Offering Circular and the offer or sale of Notes may be restricted by law in certain jurisdictions. None of the Issuer, the Arrangers or the Dealers represents that this Offering Circular may be lawfully distributed, or that any Notes may be lawfully offered, in compliance with any applicable registration or other requirements in any such jurisdiction, or pursuant to an exemption available thereunder, or assumes any responsibility for facilitating any such distribution or offering. In particular, no action has been taken by the Issuer, the Arrangers or the Dealers which would permit a public offering of any Notes or distribution of this Offering Circular in any jurisdiction where action for that purpose is required. Accordingly, no Notes may be offered or sold, directly or indirectly, and neither this Offering Circular nor any advertisement or other offering material may be distributed or published in any jurisdiction, except under circumstances that will result in compliance with any applicable laws and regulations. Persons into whose possession this Offering Circular or any Notes may come must inform themselves about, and observe, any such restrictions on the distribution of this Offering Circular and the offering and sale of Notes. In particular, there are restrictions on the distribution of this Offering Circular and the offer or sale of the Notes in the United States, the European Economic Area (including the United Kingdom), Singapore, Japan, Hong Kong and the People s Republic of China. See Subscription and Sale. iii

5 CERTAIN DEFINITIONS Unless otherwise specified or the context requires, references herein to US dollars and US$ are to the lawful currency of the United States of America (the USA or the US), references to Hong Kong dollars, HK dollars and HK$ are to the lawful currency of Hong Kong, references to Renminbi, RMB and CNY are to the lawful currency of the People s Republic of China (the PRC), references to Singapore dollars and S$ are to the lawful currency of Singapore, references to Sterling and are to the lawful currency of the United Kingdom and references to EUR, euro and C= are to the currency introduced at the start of the third stage of European economic and monetary union pursuant to the Treaty on the functioning of the European Union, as amended. In addition, references to Hong Kong are to the Hong Kong Special Administrative Region of the PRC, references to Macau are to the Macau Special Administrative Region of the PRC, references to Mainland China are to the PRC excluding Hong Kong and Macau and references to Greater China are to the PRC including Hong Kong and Macau. For convenience only and unless otherwise noted, all translations from HK dollars into US dollars in this Offering Circular were made at the rate of HK$ to US$1.00. No representation is made that the HK dollar amounts referred to in this Offering Circular could have been or could be converted into US dollars at any particular rate or at all. Any discrepancies in any table between totals and sums of the amounts listed are due to rounding. FORWARD-LOOKING STATEMENTS The Issuer has included statements in this Offering Circular which contain words or phrases such as will, would, aim, aimed, is likely, are likely, believe, expect, expected to, will continue, anticipated, estimate, estimating, intend, plan, seeking to, future, objective, should, can, could, may, and similar expressions or variations of such expressions, that are forward-looking statements. Actual results may differ materially from those suggested by the forward-looking statements due to certain risks or uncertainties associated with the Issuer s expectations with respect to, but not limited to, its ability to successfully implement its strategy, its ability to integrate recent or future mergers or acquisitions into its operations, future levels of non-performing assets and restructured assets, its growth and expansion, the adequacy of its provision for credit and investment losses, technological changes, investment income, its ability to market new products, cash flow projections, the outcome of any legal or regulatory proceedings it is or becomes a party to, the future impact of new accounting standards, its ability to pay dividends, its ability to roll over its short-term funding sources, its exposure to operational, market, credit, interest rate and currency risks and the market acceptance of and demand for Internet banking services. iv

6 TABLE OF CONTENTS DOCUMENTS INCORPORATED BY REFERENCE... 1 GENERAL DESCRIPTION OF THE PROGRAMME... 2 SUMMARY FINANCIAL AND OTHER INFORMATION... 3 SUMMARY OF THE PROGRAMME FORM OF THE NOTES APPLICABLE PRICING SUPPLEMENT TERMS AND CONDITIONS OF THE NOTES USE OF PROCEEDS INVESTMENT CONSIDERATIONS CAPITALISATION DESCRIPTION OF THE BANK SELECTED STATISTICAL AND OTHER INFORMATION RELATING TO THE GROUP AND THE BANK MANAGEMENT RELATIONSHIP WITH ICBC REGULATION AND SUPERVISION BOOK-ENTRY CLEARANCE SYSTEMS TAXATION PRC CURRENCY CONTROLS SUBSCRIPTION AND SALE GENERAL INFORMATION INDEX TO FINANCIAL STATEMENTS... F-1 IN CONNECTION WITH THE ISSUE OF ANY TRANCHE OF NOTES, THE DEALER OR DEALERS (IF ANY) NAMED AS THE STABILISING MANAGER(S) (OR PERSONS ACTING ON BEHALF OF ANY STABILISING MANAGER(S)) IN THE APPLICABLE PRICING SUPPLEMENT MAY OVER-ALLOT OR EFFECT TRANSACTIONS WITH A VIEW TO SUPPORTING THE MARKET PRICE OF THE NOTES OF THE SERIES (AS DEFINED BELOW) OF WHICH SUCH TRANCHE FORMS PART AT A LEVEL HIGHER THAN THAT WHICH MIGHT OTHERWISE PREVAIL. HOWEVER, THERE IS NO ASSURANCE THAT THE STABILISING MANAGER(S) (OR PERSON(S) ACTING ON BEHALF OF ANY STABILISING MANAGER(S)) WILL UNDERTAKE STABILISATION ACTION. ANY STABILISATION ACTION MAY BEGIN ON OR AFTER THE DATE ON WHICH ADEQUATE PUBLIC DISCLOSURE OF THE TERMS OF THE OFFER OF THE RELEVANT TRANCHE OF NOTES IS MADE AND, IF BEGUN, MAY BE ENDED AT ANY TIME, BUT IT MUST END NO LATER THAN THE EARLIER OF 30 DAYS AFTER THE ISSUE DATE OF THE RELEVANT TRANCHE OF NOTES AND 60 DAYS AFTER THE DATE OF THE ALLOTMENT OF THE RELEVANT TRANCHE OF NOTES. ANY STABILISATION ACTION OR OVER-ALLOTMENT MUST BE CONDUCTED BY THE RELEVANT STABILISING MANAGER(S) (OR PERSON(S) ACTING ON BEHALF OF ANY STABILISING MANAGER(S)) IN ACCORDANCE WITH ALL APPLICABLE LAWS AND RULES. Page v

7 DOCUMENTS INCORPORATED BY REFERENCE The following documents published or issued from time to time after the date hereof shall be deemed to be incorporated in, and to form part of, this Offering Circular: (a) (b) the most recently published audited financial statements of the Issuer and the most recently published unaudited interim financial statements of the Issuer, in each case together with any audit or review reports prepared in connection therewith; and all supplements or amendments to this Offering Circular circulated by the Issuer from time to time, save that any statement contained herein or in a document which is deemed to be incorporated by reference herein shall be deemed to be modified or superseded for the purpose of this Offering Circular to the extent that a statement contained in any such subsequent document which is deemed to be incorporated by reference herein modifies or supersedes such earlier statement (whether expressly, by implication or otherwise). Any statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Offering Circular. The Issuer will provide, without charge, to each person to whom a copy of this Offering Circular has been delivered, upon the request of such person, a copy of any or all of the documents deemed to be incorporated herein by reference unless such documents have been modified or superseded as specified above. Requests for such documents should be directed to the Issuer at its office set out at the end of this Offering Circular. In addition, such documents will be available free of charge from the office of The Hongkong and Shanghai Banking Corporation Limited (the Fiscal Agent) at Level 30, HSBC Main Building, 1 Queen s Road Central, Hong Kong. Pricing Supplements relating to unlisted Notes will only be available for inspection by a holder of such Notes and such holder must produce evidence satisfactory to the Issuer or the relevant Paying Agent as to its holding of Notes and its identity. If the terms of the Programme are modified or amended in a manner which would make this Offering Circular, as so modified or amended, inaccurate or misleading, a new offering circular will be prepared. 1

8 GENERAL DESCRIPTION OF THE PROGRAMME Under the Programme, the Issuer may from time to time issue Notes denominated in any currency, subject to as set out herein. A summary of the terms and conditions of the Programme and the Notes appears below. The applicable terms of any Notes will be agreed between the Issuer and the relevant Dealer prior to the issue of the Notes and will be set out in the Terms and Conditions of the Notes endorsed on, attached to, or incorporated by reference into, the Notes, as modified and supplemented by the applicable Pricing Supplement attached to, or endorsed on, such Notes, as more fully described under Form of the Notes. This Offering Circular and any supplement will only be valid for Notes issued under the Programme during the period of 12 months from the date of this Offering Circular in an aggregate nominal amount which, when added to the aggregate nominal amount then outstanding of all Notes previously or simultaneously issued under the Programme, does not exceed US$5,000,000,000 or its equivalent in other currencies. For the purpose of calculating the US dollar equivalent of the aggregate nominal amount of Notes issued under the Programme from time to time: (a) (b) (c) the US dollar equivalent of Notes denominated in another Specified Currency (as specified in the applicable Pricing Supplement in relation to the relevant Notes, described under Form of the Notes ) shall be determined, at the discretion of the Issuer, either as at the date on which agreement is reached for the issue of Notes or on the preceding day on which commercial banks and foreign exchange markets are open for business in Hong Kong, in each case on the basis of the spot rate for the sale of the US dollar against the purchase of such Specified Currency in the Hong Kong foreign exchange market quoted by any leading international bank selected by the Issuer on the relevant day of calculation; the US dollar equivalent of Dual Currency Notes, Index Linked Notes and Partly Paid Notes (each as specified in the applicable Pricing Supplement in relation to the relevant Notes, described under Form of the Notes ) shall be calculated in the manner specified above by reference to the original nominal amount on issue of such Notes (in the case of Partly Paid Notes regardless of the subscription price paid); and the US dollar equivalent of Zero Coupon Notes (as specified in the applicable Pricing Supplement in relation to the relevant Notes, described under Form of the Notes ) and other Notes issued at a discount or a premium shall be calculated in the manner specified above by reference to the net proceeds received by the Issuer for the relevant issue. 2

9 SUMMARY FINANCIAL AND OTHER INFORMATION The following tables set forth the summary consolidated financial and other information of the Bank as at and for the periods indicated. The summary consolidated financial information as at and for the years ended 31 December 2009 and 2010 and the six months ended 30 June 2010 and 2011 set forth below is derived from the Bank s audited consolidated financial statements and unaudited condensed consolidated interim financial statements, respectively, and should be read in conjunction with the audited consolidated financial statements and unaudited condensed consolidated interim financial statements of the Bank and the notes thereto included elsewhere in this Offering Circular. Certain items in the audited consolidated financial statements of the Bank as at and for the years ended 31 December 2009 and 2010 and the unaudited condensed consolidated interim financial statements of the Bank as at and for the six months ended 30 June 2010 and 2011 have been aggregated for the purpose of presentation of the summary financial information in the tables below. The Bank s audited consolidated financial statements as at and for the year ended 31 December 2009 and 2010 and unaudited condensed consolidated interim financial statements as at and for the six months ended 30 June 2010 and 2011 were prepared in accordance with Hong Kong Financial Reporting Standards (HKFRS). The accounting policies of the Bank have been summarised in note 2 of the Bank s audited consolidated financial statements as at and for the year ended 31 December 2010 and notes 2.1 and 3.1 of the Bank s unaudited condensed consolidated interim financial statements as at and for the six months ended 30 June

10 CONSOLIDATED INCOME STATEMENT For the year ended For the six months ended 30 June 2009 (1) (Expressed in thousands of Hong Kong dollars) (Expressed in thousands of US dollars) (Expressed in thousands of Hong Kong dollars) (Expressed in thousands of US dollars) Interest income... 4,479,068 5,504, ,287 2,513,851 3,657, ,901 Interest expense... (1,469,872) (1,917,115) (246,337) (788,979) (1,426,939) (183,352) Net interest income... 3,009,196 3,587, ,950 1,724,872 2,230, ,549 Fee and commission income , , , , ,344 72,129 Fee and commission expense... (87,395) (147,245) (18,920) (64,156) (93,570) (12,023) Net fee and commission income , ,919 90, , ,774 60,106 Net trading income , ,299 47, , ,387 29,603 Net (loss)/gain on financial assets and liabilities designated at fair value through profit or loss ,215 27,338 3,513 18,037 (21,696) (2,788) Dividend income from financial investments.. 6,476 4, ,591 4, Other operating income... 22,745 20,690 2,659 10,650 9,615 1,235 Operating income... 4,190,181 4,714, ,741 2,278,290 2,920, ,245 Operating expenses... (1,360,943) (1,472,482) (189,204) (679,802) (771,742) (99,164) Operating profit before impairment losses... 2,829,238 3,241, ,537 1,598,488 2,148, ,081 Charge for impairment losses on loans and advances... (385,536) (261,770) (33,636) (210,328) (244,835) (31,460) Write-back of impairment losses on held-to-maturity financial investments.. 2, Charge for impairment losses on available-for-sale financial investments.. (195,058) Operating profit after impairment losses... 2,250,789 2,980, ,931 1,388,240 1,903, ,621 Revaluation gain on investment properties.. 6,087 7, ,275 1, Net (loss)/gain from disposal/reversal of revaluation deficits of property, plant and equipment... 3,850 2, ,271 (281) (36) Gain on disposal of loans and advances... 30,543 3,925 21,291 Net gain on disposal of available-for-sale financial investments.. 782, ,908 79,140 58,529 12,158 1,562 Gain on disposal of subsidiaries and an associate... 1,328 4

11 For the year ended For the six months ended 30 June 2009 (1) (Expressed in thousands of Hong Kong dollars) (Expressed in thousands of US dollars) (Expressed in thousands of Hong Kong dollars) (Expressed in thousands of US dollars) Operating profit... 3,044,354 3,636, ,228 1,471,606 1,917, ,340 Share of profits of associates... 23,243 17,810 2,288 7,174 10,381 1,334 Profit before tax... 3,067,597 3,654, ,516 1,478,780 1,927, ,674 Income tax expense... (544,059) (650,797) (83,623) (249,622) (388,034) (49,860) Profit attributable to equity holders... 2,523,538 3,003, ,893 1,229,158 1,539, ,814 Earnings per share - Basic and diluted... HK$1.95 HK$2.25 US$0.29 HK$0.93 HK$1.14 US$0.15 Note: (1) As a result of the adoption of the amendment to HKAS 17 Leases, certain comparative figures of the audited consolidated financial statements of the Bank for the year ended 31 December 2009 have been restated in order to be comparable with the financial statements for the year ended 31 December

12 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the year ended For the six months ended 30 June 2009 (1) (Expressed in thousands of Hong Kong dollars) (Expressed in thousands of US dollars) (Expressed in thousands of Hong Kong dollars) (Expressed in thousands of US dollars) Profit for the year/period... 2,523,538 3,003, ,893 1,229,158 1,539, ,814 Revaluation surplus on bank premises... 23,172 40,802 5,243 12,896 15,866 2,039 Income tax effect... (6,226) (3,135) (403) 2,273 (2,618) (336) 16,946 37,667 4,840 15,169 13,248 1,703 Change of fair value of hedging instruments under cash flow hedge... (7,853) (231,318) (29,723) (42,191) 110,193 14,159 Income tax effect... 38,167 4,904 6,962 (18,182) (2,336) (7,853) (193,151) (24,819) (35,229) 92,011 11,823 Change in fair value reserve of available-for-sale financial investments... 2,035,053 (475,825) (61,140) (18,159) (134,031) (17,222) Transfer from the available-for-sale financial investment reserve to the income statement on impairment... 43,715 Income tax effect... (336,082) 72,893 9,366 (2,622) 21,578 2,773 1,742,686 (402,932) (51,774) (20,781) (112,453) (14,449) Exchange differences arising from translation of results of a foreign subsidiary ,519 9,447 20,781 59,090 7,593 Other comprehensive income for the year/period, net of tax... 1,751,902 (484,897) (62,306) (20,060) 51,896 6,670 Total comprehensive income for the year/period, net of tax... 4,275,440 2,518, ,587 1,209,098 1,591, ,484 Attributable to: Equity holders of the Bank... 4,275,440 2,518, ,587 1,209,098 1,591, ,484 Note: (1) As a result of the adoption of the amendment to HKAS 17 Leases, certain comparative figures of the audited consolidated financial statements of the Bank for the year ended 31 December 2009 have been restated in order to be comparable with the financial statements for the year ended 31 December

13 CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December As at 30 June 2009 (1) (Expressed in thousands of Hong Kong dollars) (Expressed in thousands of US dollars) (Expressed in thousands of Hong Kong dollars) (Expressed in thousands of US dollars) Assets Cash and balances with banks and other financial institutions.. 27,910,582 33,921,821 4,358,731 27,424,822 85,010,160 10,923,246 Placements with and advances to banks and other financial institutions... 1,663,286 3,900, ,212 1,549,249 8,765,629 1,126,326 Financial assets held for trading , ,666 26, , ,898 31,725 Financial assets designated at fair value through profit or loss... 1,162, , , , ,555 93,229 Derivative financial instruments... 1,134,116 1,884, ,190 2,006,609 1,480, ,233 Loans and advances to customers, banks and other financial institutions ,024, ,058,428 23,778, ,592, ,018,503 28,527,916 Financial investments:... 33,653,175 36,808,071 4,729,595 35,801,360 40,401,343 5,191,307 Available-for-sale. 32,361,666 35,644,015 4,580,021 34,596,813 39,238,330 5,041,867 Held-to-maturity... 1,291,509 1,164, ,574 1,204,547 1,163, ,440 Investments in associates 175, ,987 24, , ,368 26,131 Goodwill and other intangible assets... 1,020,893 1,016, ,632 1,018,718 1,016, ,667 Investment properties... 46,213 53,765 6,908 47,488 55,265 7,101 Property, plant and equipment , ,851 64, , ,887 66,674 Deferred income tax assets... 6, Other assets... 1,305,150 2,442, ,826 1,554,306 2,645, ,891 Total assets ,799, ,938,453 34,299, ,806, ,094,254 46,655,222 Liabilities Deposits from banks and other financial institutions... 20,176,700 27,878,692 3,582,228 33,477,605 77,880,389 10,007,117 Derivative financial instruments... 1,252,642 2,429, ,143 2,427,258 1,897, ,836 Deposits from customers at amortised cost ,161, ,543,551 24,869, ,678, ,674,719 28,226,755 Certificates of deposit issued... 2,394,546 10,637,832 1,366,891 7,289,223 27,347,031 3,513,913 Designated at fair value through profit or loss... 1,419, , ,690 1,086, , ,080 At amortised cost. 975,469 9,753,037 1,253,201 6,202,676 26,466,984 3,400,833 Debt securities in issue. 159, ,393 27, ,351 1,444, ,598 Designated at fair value through profit or loss ,799 13, ,175 At amortised cost. 159, ,594 13, ,176 1,444, ,598 Current income tax liabilities... 1,531, ,108 32,009 1,752, ,955 68,353 7

14 As at 31 December As at 30 June 2009 (1) (Expressed in thousands of Hong Kong dollars) (Expressed in thousands of US dollars) (Expressed in thousands of Hong Kong dollars) (Expressed in thousands of US dollars) Deferred income tax liabilities , ,831 14, ,317 91,708 11,784 Subordinated debts measured at amortised cost... 8,561,125 9,519,448 1,223,186 8,589,790 9,530,883 1,224,656 Other liabilities... 2,070,476 2,199, ,625 1,842,906 2,955, ,734 Total liabilities ,532, ,789,622 31,710, ,466, ,354,032 43,861,746 Equity Share capital... 2,636,681 2,704, ,462 2,704,123 2,704, ,462 Retained earnings... 5,172,225 6,823, ,768 5,610,900 8,217,757 1,055,928 Other reserves... 10,458,688 10,621,261 1,364,762 11,024,879 10,818,342 1,390,086 Total equity... 18,267,594 20,148,831 2,588,992 19,339,902 21,740,222 2,793,476 Total equity and liabilities ,799, ,938,453 34,299, ,806, ,094,254 46,655,222 Note: (1) As a result of the adoption of the amendment to HKAS 17 Leases, certain comparative figures of the audited consolidated financial statements of the Bank for the year ended 31 December 2009 have been restated in order to be comparable with the financial statements for the year ended 31 December

15 OTHER INFORMATION (unaudited and not reviewed) As at 31 December As at 30 June Capital Adequacy Ratio (1) % 14.9% 13.4% 13.4% Average Liquidity Ratio (2) % 42.9% 41.5% 40.8% Loan to Deposits % 71.1% 72.3% 64.7% Loans to Total Assets % 69.3% 72.2% 61.1% Impaired Loan Ratio % 0.54% 0.65% 0.45% Collective Impairment Coverage Ratio (3).. 0.9% 0.9% 0.9% 1.2% Cost to Income % 31.2% 29.8% 26.4% Dividend Payout % 16.7% 40.7% % Return on Average Assets % 1.2% 1.0% 1.0% Return on Average Common Equity % 15.9% 13.7% 14.8% Notes: (1) As at 31 December 2009 and 2010 and as at 30 June 2010 and 2011, the Bank s capital adequacy ratio was computed on a consolidated basis covering the Bank and certain of its subsidiaries as required by the Hong Kong Monetary Authority (the HKMA) for its regulatory purposes, and was in accordance with Banking (Capital) Rules effective on 1 January (2) The average liquidity ratio was computed on a consolidated basis covering the Bank and certain of its subsidiaries as required by the HKMA for its regulatory purposes, and is in accordance with the Fourth Schedule to the Banking Ordinance (Cap. 155) of Hong Kong (the Banking Ordinance). (3) Collective Impairment Coverage Ratio includes Regulatory Reserve. 9

16 SUMMARY OF THE PROGRAMME The following summary does not purport to be complete and is taken from, and is qualified in its entirety by, the remainder of this Offering Circular and, in relation to the terms and conditions of any particular Tranche of Notes, the applicable Pricing Supplement. Words and expressions defined in Form of the Notes and Terms and Conditions of the Notes shall have the same meanings in this summary. Issuer:... Description:... Arrangers:... Dealers:... Certain Restrictions:... Industrial and Commercial Bank of China (Asia) Limited, a company incorporated with limited liability in Hong Kong. Medium Term Note Programme The Hongkong and Shanghai Banking Corporation Limited, ICBC International Securities Limited and Merrill Lynch International. The Hongkong and Shanghai Banking Corporation Limited, Canadian Imperial Bank of Commerce, London Branch, Crédit Agricole Corporate and Investment Bank, Credit Suisse Securities (Europe) Limited, ICBC International Securities Limited and Merrill Lynch International and any other Dealers appointed in accordance with the Programme Agreement. Each issue of Notes denominated in a currency in respect of which particular laws, guidelines, regulations, restrictions or reporting requirements apply will only be issued in circumstances which comply with such laws, guidelines, regulations, restrictions or reporting requirements from time to time (see Subscription and Sale ) including the following restrictions applicable at the date of this Offering Circular. Notes having a maturity of less than one year Notes having a maturity of less than one year will, if the proceeds of the issue are accepted in the United Kingdom, constitute deposits for the purposes of the prohibition on accepting deposits contained in Section 19 of the Financial Services and Markets Act 2000 unless they are issued to a limited class of professional investors and have a denomination of at least 100,000 or its equivalent, see Subscription and Sale. Fiscal Agent and Agent Bank:... Registrar and Transfer Agent:... CMU Lodging and Paying Agent:. Programme Size:... The Hongkong and Shanghai Banking Corporation Limited The Hongkong and Shanghai Banking Corporation Limited The Hongkong and Shanghai Banking Corporation Limited UptoUS$5,000,000,000 (or its equivalent in other currencies calculated as described under General Description of the Programme ) outstanding at any time. The Issuer may increase the amount of the Programme in accordance with the terms of the Programme Agreement. 10

17 Distribution:... Notes may be distributed by way of private or public placement and in each case on a syndicated or non-syndicated basis. Currencies:... Redenomination:... Maturities:... Issue Price:... Form of Notes:... Fixed Rate Notes:... Floating Rate Notes:... Subject to any applicable legal or regulatory restrictions, any other currency agreed between the Issuer and the relevant Dealer. Theapplicable Pricing Supplement may provide that certain Notes may be redenominated in euro. The relevant provisions applicable to any such redenomination are contained in Condition 5. Such maturities as may be agreed between the Issuer and the relevant Dealer, subject to such minimum or maximum maturities as may be allowed or required from time to time by the relevant central bank (or equivalent body) or any laws or regulations applicable to the Issuer or the relevant Specified Currency. Notes may be issued on a fully-paid or (in the case of the Notes other than Subordinated Notes) a partly-paid basis and at an issue price which is at par or at a discount to, or premium over, par. The Notes will be issued in bearer or registered form as described in Form of the Notes. Registered Notes will not be exchangeable for Bearer Notes and vice versa. Fixed interest will be payable on such date or dates as may be agreed between the Issuer and the relevant Dealer and on redemption and will be calculated on the basis of such Day Count Fraction as may be agreed between the Issuer and the Dealer. Floating Rate Notes will bear interest at a rate determined: (a) (b) (c) on the same basis as the floating rate under a notional interest rate swap transaction in the relevant Specified Currency governed by an agreement incorporating the 2006 ISDA Definitions (as published by the International Swaps and Derivatives Association, Inc., and as amended and updated as at the Issue Date of the first Tranche of the Notes of the relevant Series); or on the basis of a reference rate appearing on the agreed screen page of a commercial quotation service; or on such other basis as may be agreed between the Issuer and the relevant Dealer. The margin (if any) relating to such floating rate will be agreed between the Issuer and the relevant Dealer for each series of Floating Rate Notes. 11

18 Index Linked Notes:.... Other provisions in relation to Floating Rate Notes and Index Linked Interest Notes:... Payments of principal in respect of Index Linked Redemption Notes or of interest in respect of Index Linked Interest Notes will be calculated by reference to such index and/or formula or to changes in the prices of securities or commodities or to such other factors as the Issuer and the relevant Dealer may agree. Floating Rate Notes and Index Linked Interest Notes may also have a maximum interest rate, a minimum interest rate or both. Interest on Floating Rate Notes and Index Linked Interest Notes in respect of each Interest Period, as agreed prior to issue by the Issuer and the relevant Dealer, will be payable on such Interest Payment Dates, and will be calculated on the basis of such Day Count Fraction, as may be agreed between the Issuer and the relevant Dealer. Dual Currency Notes:.... Zero Coupon Notes:.... Redemption:.... Payments (whether in respect of principal or interest and whether at maturity or otherwise) in respect of Dual Currency Notes will be made in such currencies, and based on such rates of exchange, as the Issuer and the relevant Dealer may agree. Zero Coupon Notes will be offered and sold at a discount to their nominal amount, or offered and sold at their nominal amount and be redeemed at a premium, and will not bear interest. The applicable Pricing Supplement will indicate either that the relevant Notes cannot be redeemed prior to their stated maturity (other than in specified instalments, if applicable, or for taxation reasons, regulatory reasons, or pursuant to a winding-up of the Issuer following an Event of Default) or that such Notes will be redeemable at the option of the Issuer and/or the Noteholders upon giving notice to the Noteholders or the Issuer, as the case may be, on a date or dates specified prior to such stated maturity and at a price or prices and on such other terms as may be agreed between the Issuer and the relevant Dealer. The applicable Pricing Supplement may provide that Notes may be redeemable in two or more instalments of such amounts and on such dates as are indicated in the applicable Pricing Supplement. Notes having a maturity of less than one year may be subject to restrictions on their denomination and distribution, see Certain Restrictions Notes having a maturity of less than one year above. 12

19 No Subordinated Notes may be redeemed or purchased by the Issuer or its Subsidiaries (as defined under the Terms and Conditions of the Notes ) prior to its stated maturity, for tax reasons, regulatory reasons or otherwise, without the prior written consent of the HKMA at the relevant time. See Condition 8.13 of the Terms and Conditions of the Notes. Denomination of Notes:... Taxation:... Negative Pledge:... Events of Default for Senior Notes:.... Cross Default:... Notes will be issued in such denominations as may be agreed between the Issuer and the relevant Dealer save that the minimum denomination of each Note will be such as may be allowed or required from time to time by the central bank (or equivalent body) or any laws or regulations applicable to the relevant Specified Currency, see Certain Restrictions above. Allpayments of principal and interest in respect of the Notes, Receipts and Coupons will be made without deduction for or on account of withholding taxes imposed by Hong Kong, subject as provided in Condition 9. In the event that any such deduction is made, the Issuer will, save in certain limited circumstances provided in Condition 9, be required to pay additional amounts to cover the amounts so deducted. Theterms of the Senior Notes will contain a negative pledge provision as further described in Condition 4. Events of default for Senior Notes are set out in Condition The terms of the Senior Notes will contain a cross default provision as further described in Condition Status of the Senior Notes:... The Senior Notes will constitute direct, unconditional, unsubordinated and (subject to the provisions of the negative pledge in Condition 4) unsecured obligations of the Issuer, ranking pari passu and without any preference among themselves. The payment obligations of the Issuer under the Senior Notes will rank at least equally with all other unsecured and unsubordinated obligations of the Issuer, present and future, including liabilities in respect of deposits, save for such exceptions as may be provided by applicable legislation and subject to Condition 4. Status, Events of Default and other terms of Subordinated Notes:.... Subordinated Notes will be Dated Subordinated Notes or Undated Subordinated Notes as indicated in the applicable Pricing Supplement. The status of the Subordinated Notes and events of default applicable to Subordinated Notes are set out in Conditions 3.2 and 11.2, respectively. Subordinated Notes do not have the benefit of a negative pledge or cross default provision. 13

20 Listing:... Approval in-principle has been received from the SGX-ST for the listing of any Notes that may be issued pursuant to the Programme and which are agreed at or prior to the time of issue thereof to be so listed on the SGX-ST. The Notes may also be listed on such other or further stock exchange(s) as may be agreed between the Issuer and the relevant Dealer in relation to each Series. For so long as any Notes are listed on the SGX-ST and the rules of the SGX-ST so require, such Notes will be traded on the SGX-ST in a minimum board lot size of S$200,000 (or its equivalent in other currencies). Unlisted Notes may also be issued. The applicable Pricing Supplement will state whether or not the relevant Notes are to be listed and, if so, on which stock exchange(s). Ratings... Tranches of Notes will be rated or unrated. Where a Tranche of Notes is to be rated, such rating will be specified in the relevant Pricing Supplement. A rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, revision, reduction or withdrawal at any time by the assigning rating agency. Governing Law:... Selling Restrictions:.... United States Selling Restrictions:... TheNotes and any non-contractual obligations arising out of or in connection with the Notes will be governed by, and shall be construed in accordance with, English law, except that the provisions of the Notes relating to subordination shall be governed by, and construed in accordance with, the laws of Hong Kong. There are restrictions on the offer, sale and transfer of the Notes in the United States, the European Economic Area (including the United Kingdom), Singapore, Japan, Hong Kong and the PRC and such other restrictions as may be required in connection with the offering and sale of a particular Tranche of Notes, see Subscription and Sale. Regulation S, Category 1 or 2, as specified in the applicable Pricing Supplement. TEFRA C or D/TEFRA not applicable, as specified in the applicable Pricing Supplement. Clearing Systems:... The CMU Service, Clearstream, Luxembourg, Euroclear and/or any other clearing system as specified in the applicable Pricing Supplement, see Form of the Notes. 14