China Gas creates $1.5bn clean-energy fund
China Gas and China Insurance Investment Fund have established a CNY10bn ($1.5bn) Clean Energy Development Fund. The fund will provide capital to support China Gas' future projects in clean energy that will stimulate its transformation from a gas supplier into an integrated energy-solutions provider.

(Hong Kong - 26 October 2016) China's leading piped-gas operator China Gas Holdings Limited ("China Gas" or the "Group"; stock code: 384) today announced its cooperation with China Insurance Investment Fund L.P.to establish the China Insurance Investment China Gas (Shenzhen) Clean Energy Development Fund L.P. (the "Fund"), dedicated to capturing the development opportunities in the clean energy industry in China. The Fund is expected to reach RMB10,020,000,000.

China Insurance Investment Fund L.P., a limited partnership corporation established under the laws of the PRC, was founded primarily by insurance institutions. It serves as a strategic, active and integrated investment platform that puts long-term capital advantage of the insurance industry to practical use with an expected aggregate size of approximately RMB300 billion. It plays an important role in state investments and improves the quality and efficiency of public products and services by actively directing insurance capital into upgrading and promoting China's economic development. China Insurance Investment Fund L.P., the limited partner of the Fund, has committed an aggregate capital of RMB7 billion to the Fund, with the remaining capital contribution to be paid by the Group with internal resources.

The Fund will provide key capital support to China Gas in pursuing future development. In the days to come, it will focus on investing in the Group's 4G (PNG, LNG, CNG and LPG) and gas projects, stimulating the transformation of China Gas from a gas supplier into an integrated energy solutions provider.

China Gas Establishes RMB10 Billion Clean Energy Development Fund 26 October 2016 Page 2 of 2

, said, "China Gas is extremely honored to be the first enterprise to establish a gas industry fund. This represents China Insurance Investment Fund L.P.'s strong recognition of China Gas' achievements in gas operation, project investment and corporate governance, and also the huge growth potential of the gas industry in China.

"Being one of the largest cross regional gas companies in China, China Gas firmly believes that the use of clean energy can greatly raise the living standards of citizens and facilitate the long term development of society. China Gas will be responsible for recommending and operating various projects invested by the Fund, we will follow our proven practice by applying stringent criteria in selecting potential high quality gas projects to accelerate the development of our 4G energy network, promote long-term and healthy development of the clean energy industry in China, as well as bring excellent returns to our shareholders."

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About China Gas

China Gas Holdings Limited ("China Gas", stock code: 384) is principally engaged in the investment, construction and management of city gas pipeline infrastructure, distribution of natural gas and LPG to residential, industrial, commercial users, and through gas stations to the transportation sector. Major shareholders of the Company include the Beijing Enterprises Group (BVI) Company Limited, SK group of companies, Fortune Oil PLC in UK and Gail (India) Limited. To date, China Gas owns a total of 319 natural gas projects, including exclusive piped gas development rights in 305 cities and regions, 13 natural gas pipeline transmission projects and 1 coal bed methane development projects, as well as the license to import and export LNG and other fuel products in China, and 98 LPG distribution projects.

For more information, visitwww.chinagasholdings.com.hk.

For enquiries: Strategic Financial Relations Limited Ingrid Cheng Tel: (852) 2864 4836 ingrid.cheng@sprg.com.hk Hawaii He Tel: (852) 2798 4847 hawaii.he@sprg.com.hk