China New Town Development : VOLUNTARY ANNOUNCEMENT Update on Urbanization Fixed Income Investment Portfolio

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China New Town Development Company Limited 中國新城鎮發展有限公司

(Incorporated as a business company limited by shares under the laws of the British Virgin Islands)

Hong Kong Stock Code: 1278

VOLUNTARY ANNOUNCEMENT

Update on Urbanization Fixed Income Investment Portfolio

The Board of Directors (the "Board") of China New Town Development Company Limited (the "Company", collectively with its subsidiaries, the "Group") is pleased to announce that, as at 30 September 2018, the Group has a portfolio of RMB3.36billion fixed income investments in aggregate, securing a total contractually guaranteed annual return before tax on investment of approximately RMB350million, representing an average annualized pre-tax return on investment of about 10.5%. Compared with the voluntary announcement published on 30 June 2018 the Group added Shandong Qingzhou MI River Comprehensive control project (山東青州市彌 河綜合治理項目)、Jiangsu Lianyungang Haizhou Bay tourism town project (江蘇連 雲港市海州灣旅遊小鎮項目)、Jiangsu Huai'an Huaiyin District Urban renewal project (江蘇淮安淮陰區城市更新建設項目), successfully exited from Jiangsu Suqian Yanghe New District Packaging Industry Park Construction Project (江蘇宿 遷洋河新區包裝產業園區建設項目)，and receiving the principal of 100 million.

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In the future, the Company shall continue to quarterly update shareholders of the developments in the urbanization fixed-income investment business in the form of voluntary announcements.

By Order of the Board

China New Town Development Company Limited

Liu Heqiang

Chief Executive Officer

Hong Kong, 8 October 2018

As at the date of this announcement, the executive directors of the Company are Mr. Liu Heqiang (Chief Executive Officer), Ms. Yang Meiyu, Mr. Ren Xiaowei and Mr. Shi Janson Bing; the non-executive directors of the Company are Mr. Li Huachang (Chairman), Mr. Zuo Kun (Vice Chairman), Mr. Li Yao Min (Vice Chairman) and Mr. Xie Zhen; and the independent non-executive directors of the Company are Mr. Henry Tan Song Kok, Mr. Kong Siu Chee, Mr. Zhang Hao and Mr. E Hock Yap.