Bank of Communications Co., Ltd. (BANKCOMM) executed a new Interbank Transactions Master Agreement with The Hongkong and Shanghai Banking Corporation Limited (HSBC) on 26 May 2026. The accord replaces the 2023 framework expiring on 31 May 2026 and extends the relationship for another three-year term from 1 June 2026 to 31 May 2029.

Key Terms and Scope • Transaction types: interbank loans and borrowings, bond dealings, money-market instruments, foreign-currency trades, other financial assets and services, as well as swaps and options. • Pricing: all dealings follow prevailing market practice or regulated prices; over-the-counter transactions are benchmarked against arm’s-length quotes to comparable independent counterparties. • Connected-party status: HSBC holds about 16.00 % of BANKCOMM’s ordinary shares, classifying it and its associates as connected persons under Hong Kong Listing Rules.

Historical Utilisation (RMB) – 2023 realised gains/losses: 2.49 billion/3.86 billion. – 2024 realised gains/losses: 4.40 billion/3.92 billion. – 2025 realised gains/losses: 5.27 billion/5.52 billion. – Q1 2026 realised gains/losses: 1.95 billion/1.99 billion. All historical transaction volumes remained within previously approved caps.

New Annual Caps (RMB) 1 Jun–31 Dec 2026 • Realised gains: 7.59 billion • Realised losses: 7.59 billion • Unrealised gains: 7.59 billion • Unrealised losses: 7.59 billion • Fair-value exposure (FX, other financial assets, swaps/options): 16.07 billion

Full-year 2027 and 2028 (each year) • Realised gains: 13.01 billion • Realised losses: 13.01 billion • Unrealised gains: 13.01 billion • Unrealised losses: 13.01 billion • Fair-value exposure: 27.55 billion

1 Jan–31 May 2029 • Realised gains: 5.42 billion • Realised losses: 5.42 billion • Unrealised gains: 5.42 billion • Unrealised losses: 5.42 billion • Fair-value exposure: 11.48 billion

Regulatory Position Because each applicable percentage ratio for the caps exceeds 0.1 % but is below 5 %, the transactions require announcement, annual review and reporting but are exempt from independent shareholders’ approval under Chapter 14A of the Hong Kong Listing Rules. Directors affiliated with HSBC—Mr Liao Yi Chien David and Mr Chan Siu Chung—abstained from voting.

Risk Management and Oversight BANKCOMM has a dedicated connected-transaction monitoring system, conducts comparative pricing checks before execution, and subjects the programme to annual review by independent non-executive directors and external auditors to ensure compliance with regulatory and internal control standards.

Strategic Rationale HSBC’s role as a major market maker in Hong Kong and globally makes it a key counterparty for BANKCOMM’s treasury, funding, and client-driven transactions. The renewed framework secures flexible limits to accommodate market volatility and supports the bank’s corporate, personal, and interbank operations through 2029.