CHINA DEVELOPMENT BANKOVERSEAS INVESTOR PRESENTATION

2019 Version

2

Disclaimer

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The information in this presentation has not been independently verified and has been prepared by China Development Bank (“CDB”) for our meetings with investors for information purposes only and doesnot constitute a recommendation regarding the securities of CDB. This document contains selected information about the activities of CDB as at the date of this document. It does not provide acomprehensive overview of CDB or contain all information necessary to evaluate an investment in CDB. No representation or warranty, express or implied, is made as to, and no reliance should be placedon, the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. Neither CDB, any of CDB’s advisors or representatives nor any of the dealers, their affiliates,advisers or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents orotherwise arising in connection with this presentation. The information set out herein may be subject to updating, completing, revision, verification and amendment and such information may changematerially. It should be understood that subsequent developments may affect the information contained in this presentation, which neither CDB, its advisors or representatives nor any of the dealers,their affiliates, advisers or representatives are under an obligation to update, revise or affirm.

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3

Table of Contents

PART I CDB OVERVIEW

PART II CHINA BOND MARKET OVERVIEW

PART III CDB BOND OVERVIEW

PART I

CDB OVERVIEW

4

Source: Company Annual Report, data as of the year end of 2018

¹ Buttonwood is the investment platform of the foreign exchanges of China and a wholly owned subsidiary of the State Administration of Foreign Exchange of China2 Including 37 primary branches and 3 secondary branches

CDB OverviewCDB is a 100% State-Owned Development Financial Institution

CDB is mandated by the State Council of the PRC to support China’s economic growth and development initiatives

National Council for

Social Security Fund

Buttonwood Investment

Holding Company Ltd.

(“Buttonwood”)¹

Central Huijin

Investment Ltd.

(“Huijin”)

Ministry of Finance

of China (“MOF”)

36.54% 34.68% 27.19% 1.59%

40 Domestic Branches2, HK Branch, 10 Overseas Representative Offices and 5 Major Subsidiaries

CDB Development Fund

(Appointed by the State Council)

Board of Directors

Executive Management

Board of Supervisors

Strategy and Investment Committee

Audit Committee

Risk Management Committee

Related Party Transactions Committee

Personnel and Remuneration Committee

5

6

MilestonesCompany History

Source: Company Disclosure

Dec 2007

USD20bn capital

injection from Huijin

First Capital

Injection

2007

Jul 2015

USD48bn capital

injection from

Buttonwood

Second Capital

Injection

2015

Dec 2008

Converted into a joint

stock company

pursuant to PRC

Company Law

Joint Stock

Reform

2008

Mar 2015

State Council

approved the CDB

Reform Plan

Reform

Plan

2015

Nov 2016

State Council

approved the new

articles of association

of CDB

New Articles

2016

Has been playing key role in shoring up the domestic economic growth, facilitating the economic rebalancing and supporting the

development priorities

Mar 1994

Established pursuant

to State Council’s

special decree with

RMB 50 billion capital

Establishment

1994

Apr 2017

Changed the name to

"China Development

Bank" and the

organizational form to

limited liability

company

Registered Name

Change

2017

7

Source: Company Annual Report, data as at 31 December 2018

¹ Non-performing loan ratio (“NPL ratio”)

² Calculated in accordance with the Capital Rules for Commercial Banks (Provisional ) issued by the China Banking Regulatory Commission (“CBRC”)

Mission & Business Highlights

1 Largest Development Finance Institution in the World with RMB16.2tr in Total Assets

China’s Principal Bank for Development Financing with RMB11.7tr of Gross Outstanding Loans2

China’s Largest Bank for International Cooperation with USD251bn Equivalent Outstanding Foreign Currency Loans3

China’s Leading Bank with Diligent Risk Management keeping NPL ratio below 1% for 14 consecutive years since

2005¹4

Well capitalized Bank with a Robust Capital Adequacy Ratio of 11.81%²5

Backed by strong government support, CDB places strategic importance on China’s pillars of economic development

A1 A+

8

Source: Company Annual Report 20181Based on FX rate of 1 USD = 6.86 RMB

Breakdown of Loan PortfolioDedicated to Fostering Domestic Economic, Social & Financial Development

% of TotalGross Loan Balance Breakdown by Industry (31 Dec 2018)

Net Loan Balance Breakdown by Geography (31 Dec 2018)

Loan Balance Breakdown by Currency (31 Dec 2018)1

Urban renewal27.4%

Highways16.1%

Public infrastructure

11.4%

Power8.2%

Railways7.3%

Strategic Emerging Industries

10.1%

Others19.5%

Eastern China43%

Western China30%

Central China18%

Northeastern China

7%

Outside of Mainland China

2%

RMB85.3%

Foreign currency14.7%

959

1570 1572 16421917

Dec-2014 Dec-2015 Dec-2016 Dec-2017 Dec-2018

CDB as a Leader in Green FinanceNo. 1 Chinese Bank for Green Loans

9

❑ CDB has been an active supporter of environmental protection, industrial energy saving and green development, and delivered solid results in

carrying out prevention and clean-up plans for air, water and soil pollution

❑ By end 2018, CDB’s balance of green loans was over RMB1.9 trillion, the largest among Chinese banks; its green loans outstanding accounted

for 16.41% of its total loans, far exceeding other major Chinese banks

❑ CDB is also the leader in green bond issuance and underwriting in China. As of December 2018, it has issued RMB25 billion green bonds in

China, and in addition also issued its debut international dual currency green bonds in amount of USD500 million and EUR1 billion. As the

leading underwriter, it was the first to offer green perpetual notes.

CDB’s Green Achievements in 2018CDB’s Balance of Green Loans and the Percentage of Total

Loans

RMB bn

59.03mn tons of standard coal were saved

140.55mn tons of CO2

1.68mn tons of SO2

890,000 tons of NOx

440,000 tons of COD

50,000 tons of ammonia

Source: Company info1As defined by the China Banking Regulatory Commission (“CBRC”)

1

2

12.07%

17.05%15.23% 14.88%

16.41%

Dec-2014 Dec-2015 Dec-2016 Dec-2017 Dec-2018

emission were saved

CHINA BOND MARKET OVERVIEW

10

PART II

Source: wind, BIS

Introduction to China Bond Market

China has developed a large and still emerging bond market

GDP Growth and Total Bonds Outstanding

11

85.74

0

20

40

60

80

100

2011 2012 2013 2014 2015 2016 2017 2018

0%

10%

20%

30%

40%

RMB trillionTotal bonds outstanding

Growth of bonds outstanding

The Main Architecture of China Bond Market

The second Largest Market After the US

41301

12907 12498

5748 4547 3547 3143 3178 2141 1959 1873

0

5000

10000

15000

20000

25000

30000

35000

40000

45000US billion

as date of 31 Dec 2018

Introduction to China Bond Market

12

Inter-Bank Bond Market Overview

Secondary Market Trading has Grown Rapidly

0

200

400

600

800

1,000

1,200

2010 2011 2012 2013 2014 2015 2016 2017 2018

Pledged Repo Outright Repo Inter-bank Lending Cash Bond Trading

Shanghai Clearing House

23.2%

CCDC66.2%

CSDC10.6%

The Main Part of China Bond Market(31 Dec 2018) Inter-Bank Bond Depository Balance(by bond type,31 Dec 2018)

17%

21%

12%17%

9%

10%

2%

2%

1…Treasury bond

Local gov't bond

Certificate of Deposits

Policy Bank bond

MT&ST notes

Corporate bond

Commercial bank bond

ABS/MBS

Others

Inter-Bank Bond Depository Balance(by investor type,31 Dec 2018)

39%

16%

26%

2%

2%

2%

13% large commecial banks

regional banks

funds

securities institutions

insurance institutions

oversea investors

others

RMB Trillion

Sources: Wind, China Central Depository & Clearing Co.,Ltd, Shanghai Clearing House ,CSDC

13

PART III

CDB BOND OVERVIEW

0

5

10

15

20

0

5

10

15

20

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

RMB 17.4 trillion

As the year

end of

RMB 8.8

trillion

Market Promoter of RMB Financial Bond Issuance

Second Largest Bond Issuer in Domestic Bond Market

CDB Bond Issuance Volume

RMBtr

14

Cumulative Debt IssuedOutstanding Debt

Onshore RMB Bond Issuance Market Share as of Dec 20181 Residual Maturity Profile of CDB Onshore RMB Bonds issued in 2018

17%

21%

12%10%

7%

9%

10%

2%

2%

10% Treasury

Local gov't bonds

Certificate of Deposits

CDB

ADBC/China Exim

MT&ST notes

Corporate bonds

Commercial bank bonds

ABS/MBS

Others

17%

21%

12%

10%

7%

9%

10%

2%

2%

10%

16%

23%

20%

12%

29%

ST Notes (≤1 year)

MT Notes(1<X≤3 years)

MT Notes (3<X≤5years)

LT Bonds(5<X≤10 years)

Super LT Bonds (>10 years)

16%

23%

20%

12%

29%

Source: Company information, Chinabond.com

1. Agricultural Development Bank of China (“ADBC”), Export-Import Bank of China (“China EXIM Bank”), Asset-Backed Securities (“ABS”), Mortgage-Backed Securities (“MBS”)

Source: Company Disclosure, Chinabond.com

Varieties of CDB Bond Products and Bond Issuance Channels

CDB Bond

Short-term bonds

(less than 1 year)

Mid-term & long-term bonds

(more than 1 year)

Fixed-rate

bonds3 months 9 months6 months

Benchmark

bonds

Subordinated

BondsFloating-rate

BondsGreen Bonds

Poverty Alleviation

BondsOption

Bonds

15

Channel 1 Channel 2 Channel 3

Stock

Exchange

Market

Commercial

Bank

Counter

Market

Interbank

Bond

Market

1 2 3

CBRC confirms zero risk weight to CDB’s RMB bonds and

foreign currency-denominated bonds for an indefinite period

CDB Bond Issuing Channels in Domestic Market CBRC Preferential Risk Weighting Treatment of CDB Bonds

# BondTenor

(y)Annual trading volume

(RMBbn)Issuing amount(RMBbn) Transaction ratio

1 18CDB05 10 5,702 203 28

2 18CDB10 10 5,488 249 22

3 17CDB15 10 2,395 176 14

4 17CDB09 3 1,492 127 12

5 18CDB08 3 1,356 130 10

6 16CDB06 5 1,308 200 7

7 18CDB04 5 1,238 136 9

8 17CDB05 3 1,105 122 9

9 18SPDBCD104 1 1,043 5 -

10 17CDB10 10 956 240 4

16

Among 2018 Top 10 Most Traded RMB Bonds, 9 Issued by CDBCDB bond trading volume and whole market share

Sources: Wind, China Central Depository & Clearing Co.,Ltd, Shanghai Clearing House ,CSDC

19.2%

27.3% 28.5%24.0%

21.7%23.2%

0

10

20

30

40

50

2013 2014 2015 2016 2017 2018

0%

5%

10%

15%

20%

25%

30%RMB trillion

trading volume market share

High Liquidity of CDB Bonds

Most Actively Traded Bond In Secondary Market

✓ CDB Bond Yield Curve and CDB Bond Index are published on a daily basis to ensure transparency and efficiency.

✓ CDB Bond Yield Curve has been widely adopted as the pricing benchmark by many institutions for financial asset pricing.

✓ CDB Bond Yield Curve can measure the market fluctuation and risks.✓ CDB Bonds are closely followed by bond index funds and was created

one of the largest first raising fund volume in the fixed income public funds history of China.

CDB Bond Yield Curve and CDB Bond Index

Sep 1998 First Issuer on the Interbank Market Sep 2016 First CDB Bond Index Fund Issued

Mar 1999 First Issuer of FRN in China Market Dec 2016 First when-issued CDB Bond

Jun 2007 First Issuer of CNH Bond in Hong Kong Feb 2017 CDB Issued its First RMB Green Bond

Apr 2012 First Issuer of Benchmark Bond with Key Tenors Jul 2017First Public Bidding Issuance via Bond

Connect to global investors

Nov 2013 First Issuer of FRN against the CNH-HIBOR in HK Nov 2017 CDB Issued its First USD/EUR Green Bond

May 2014 First to Issue Bond through Commercial Banks Dec 2017 CDB issued its first Belt and Road bond

Sep 2014 First Quasi-sovereign Bond Issued in London Aug 2018 First issuer with dynamic conditional auction

Apr 2015 First CDB Benchmark FRN Credit Bonds Dec 2018 CDB issued dual foreign currency bonds

17

Devoted to Financial Innovation in China’s Bond Market

Influential Player in the Debt Capital Market

163 169 173

181 179

189 195

177

218

Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19100

120

140

160

180

200

220

18

CDB bond held by foreign institutions

Sources: Wind, China Central Depository & Clearing Co.,Ltd, Shanghai Clearing House

✓ Safety: the credit rating of CDB bond is at the same level as China’s sovereign rating.

✓ Liquidity: cash bond trading volume top-ranked, Bid-ask spread is only between 0.25-0.5BP.

✓ Proper return: benefit from tax exemption policy and keep a relatively proper return.

✓ Facilities: English version of the issuing announcement, BOND CONNECT promoter, professional service.

Foreign Investments in CDB Bonds

RMB biliion

CDB 10Y BOND China 10YTreasury BOND

US 10YTreasury BOND

Japan 10YTreasury BONDGerman 10Y

Treasury BOND

CDB bond yield curve compared with other curves

18

19

BOND CONNECT Dealers and CDB BOND Underwriters

2017: BOND CONNECT LAUNCH CEREMONY 2018: BOND CONNECT ANNIVERSARY SUMMIT

The Best Issuer and Active Participant of BOND CONNECT

Normalizing CDB BOND Issuing through BOND CONNECT by Cross-border Coordinators System

1 Industrial and Commercial Bank of China Ltd. 18 China International Capital Corp., Ltd.

2 Agricultural Bank of China Ltd. 19 China Securities Co., Ltd.

3 Bank of China Ltd. 20 China Zheshang Bank Co., Ltd.

4 China Construction Bank Corp. 21 Bank of Nanjing Co., Ltd.

5 Bank of Communications Co., Ltd. 22 China Minsheng Bank Corp., Ltd.

6 China CITIC Bank Corp., Ltd. 23 China Guangfa Bank Co., Ltd.

7 Shanghai Pudong Development Bank 24 China Merchants Securities Co., Ltd.

8 China Merchants Bank Co., Ltd. 25 China Everbright Bank Co., Ltd.

9 Industrial Bank Co., Ltd. 26 Ping An Bank Co., Ltd.

10 Bank of Shanghai Co., Ltd. 27 Bank of Jiangsu Co., Ltd.

11 Bank of Ningbo Co., Ltd. 28 Bank of Hangzhou Co., Ltd.

12 HSBC Bank (China) Co., Ltd. 29 Xiamen Bank Co., Ltd.

13 MUFG Bank (China) Ltd. 30 Shanghai Rural Commercial Bank Co., Ltd.

14 CITIC Securities Co., Ltd. 31 Shenwan Hongyuan Securities Co,. Ltd.

15 Guotai Junan Securities Co., Ltd. 32 Donghai Securities Co,. Ltd.

16 Orient Securities Co., Ltd. 33 Huatai Securities Co,. Ltd.

17 GF Securities Co., Ltd.

Source: Company Information

* All ranking excludes Central Bank bills issuance

Pioneer on the Offshore RMB Bond MarketCDB’s accomplishments in Market Innovation and Promotion of Development Innovation

20102007 201420132012 2015

First Chinese

financial institution

to issue CNH bond in

Hong Kong

First domestic

institution to initiate

non-deal roadshow to

open Formosa

market

First Chinese

financial institution

to issue SHIBOR-

based FRN in Hong

Kong

Issued the first 15-

year and 20-year

offshore RMB bonds

and placed to African

central banks

First to issue FRN

against the CNH

HIBOR interbank rate

First Chinese-funded

quasi-sovereign bond

offerings listed

outside Mainland

China and Hong

Kong

Landmark Deal

CNH 1bn 20-year

4.300% fixed rate

Best Issuer of the Year

China Development Bank

Bond Deal of the Year

CNH2.5bn 15-year

4.200% fixed rate

Best LCY Bond / Best

Dim Sum Bond

CNH2.5bn 15-year

CNH2.5bn 3-year & 20-

year

Best Issuer

Financial Institution

China Development Bank

Most Impressive LCY

Offshore Bond & RMB

bond

CNH2.5bn 15-year

CNH2.5bn 3-year & 20-

year

Strong Track Records as the Pioneer Issuer in Offshore RMB

Market Leader

• Largest Offshore RMB financial bond issuer;

offering the best variety of products

Market Pioneer

• First to tap the offshore RMB financial bond

market with a debut issuance in Hong Kong

in 2007

Sustained Leadership

• RMB28.0bn total issuance and RMB6.3bn

bond outstanding as of the end of 2018

20

Issued US$ 2.4bn

equivalent in dual

foreign currency bonds,

which was the largest

offshore bond issuance

by an onshore Chinese

bank in 2018

Source: Bloomberg, Company Information

* Fitch rating is unsolicited

Enhancement for the Accessibility to the International Debt Capital Market

First Chinese Financial Institution to Enter the International Capital Market

EUR

USD

JPY

AUD

HKD

CNH

GBP

Diversified Funding Currencies

China’s Sovereign International Rating Peers

Country

Moody’s

S&P

Fitch

China

A1 (Sta)

A+ (Sta)

-

Japan

A1 (Sta)

A+ (Pos)

A (Sta)

Korea

Aa2 (Pos)

AA (Sta)

AA- (Sta)

21

19971996 201520041999 20172016

Debut Issuancewith a JPY30bn samurai bonds in international markets

First Global US$ bond issuance with US$500mn

First international EUR bond issuance with EUR 325mn

Dual foreign currency bonds worth US$ 1.5bn equivalent issued since 2005

Actively participated in the international markets with US$6.5bn equivalent

First US$500m and EUR1bn international green bond

First Yankee Issuance with US$330mn bonds offering

First

US$350m

five-year Belt

and Road

bond in Hong

Kong

2017 Best FIG Bond of the Year

China Development Bank

2017 Asia Pacific Green Bond

Deal of the YearEUR1bn 4-year

US$500m 5-year

2018

2018 Best Investment Grade Bond of the Year

China Development Bank

United Kingdom

Aa2 (Sta)

AA (Neg)

AA (Sta)

22

No. Name Tel. Email

1 Zhou Juntao 86-10-88308259 zhoujuntao@cdb.cn

2 Geng Jingjing 86-10-88303601 gengjingjing@cdb.cn

3 Zhao Jiao 86-10-88308805 zhaojiao@cdb.cn

4 Hu Yongbo 86-10-88303181 huyongbo@cdb.cn

5 Huang Yingyu 86-10-88302129 huangyingyu@cdb.cn

6 Deng Wanzhu 86-10-68307526 dengwanzhu@cdb.cn

Contact us

Team Member of CDB Bond Promotion