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in reliance upon the whole or any part of contents of this announcement.

CHINA VANGUARD GROUP LIMITED (Incorporated in the Cayman Islands with limited liability) (Stock Code: 8156) COMPLETION OF ISSUE OF CONVERTIBLE BONDS

Reference is made to the announcement of China Vanguard Group Limited (the "Company") dated 13 January 2014 (the "Announcement") in relation to the issue of Convertible Bonds. Unless otherwise stated, capitalized terms used in this announcement shall have the same meanings as those defined in the Announcement.

The Board is pleased to announce that all the conditions precedent for the issue of the Convertible Bonds under the Subscription Agreement have been fulfilled and that the Completion of the issue of the Convertible Bonds to the Subscriber in the aggregate principal amount of HK$89,625,000 took place on 17 January 2014.

The approval for the listing of, and permission to deal in, the Conversion Shares upon conversion of the Convertible Bonds has been granted by the Listing Committee of the Stock Exchange.

Yours faithfully,

By order of the Board

China Vanguard Group Limited