China Financial Services (Stock Code: 605): Successfully Initiates Private Asset Securitization Product to Raise Total Capital of RMB500 Million

HONG KONG, July 18, 2013 /PRNewswire/ -- China Financial Services Holdings Limited ("China Financial Services" or the "Company", together with its subsidiaries, the "Group") (Stock Code: 605), is pleased to announce that the Group has established the asset securitization product with Kunshan Noah Xingguang Investment Co., Ltd ("Noah Xingguang") and Wanjia Co-win Asset Management Co., Ltd. ("Wanjia Co-Win") to raise RMB500 million over the next one to two years. To date approximately, RMB120 million has already been successfully raised.

Leading the Industry with Innovation andActively Expanding Financing Channels

The private asset securitization product is the first of its kind in the industry to be jointly established by China Financial Services, Noah Xingguang and Wanjia Co-Win. The parties' strong market positions combined with the innovative breakthrough enables the Group to capture the increasing market demands as well as boost market awareness. In addition, providing asset securitization services further develops the Group's financing channels and expands its growth opportunities.

Effectively Reduce Financing Costs and Propel the Business's Sustainable Progress

The parent company of Noah Xingguang, Noah Holdings Limited ("Noah") is listed on the New York Stock Exchange (NYSE:NOAH). Noah is the largest third-party wealth management company in the PRC and the leading independent wealth management company. It launches wealth management products with an aggregate value of RMB30 billion annually. By offering private asset securitization product, the Group is able to raise large amounts of capital at a low cost which will effectively reduce financing costs, enhance profitability as well as reinforce its competitive edge.

Mr. Luo Rui, the Chief Executive Officer of China Financial Services commented: "China Financial Services has always been at the cutting-edge in industry innovation. Making the first move in the securitization business will further increase our capital sources and produce higher flexibility in loan portfolio management. Considering the enormous financing demands from SMEs in the PRC, there is a huge potential for SME financing. Leveraging on the low-cost financing capability, we will seize the opportunities to develop and enhance risk controls, strengthen our position as a leading integrated SME financing service platform and increase shareholder value."

AboutChina Financial Services Holdings Limited
China Financial Services Holdings Limited is a leading integrated small-to-medium-sized enterprise financing service provider in the Beijing area, offering short-term financing services to accommodate different customer's needs, comprising short-term financing, loan guarantee services and related management and consultancy services. The Group provides alternative financing to SMEs and individuals with three licenses, namely pawn loan license, small credit license and loan guarantee license.

Company website: www.cfsh.com.hk

Kunshan Noah Xingguang Investment Co., Ltd
Kunshan Noah Xingguang Investment Co., Ltd, whose parent company is Noah Holdings Limited, a company listed on the New York Stock Exchange (NYSE:NOAH), is the largest third-party wealth management company in the PRC, with its branches and sub-branches spreading across the country in 57 cities, serving more than 40,000 high net worth clients with exclusive wealth management services.

Wanjia Co-winAsset Management Co., Ltd
Wanjia Co-win Asset Management Co., Ltd. is a professional and modern wealth management company approved by the CSRC, which is a subsidiary of Wanjia Asset Management Co. Ltd. It is engaged in specialized asset management businesses including management of fixed return investments, equity investment, hedging investment, as well as investment in financing products and share based and debt based investments.

Released by Porda Havas International Finance Communications Group for and on behalf of China Financial Services Holdings Limited, for further information, please contact: