Ping An Launches Key Employee Share Purchase Plan Covering 1,000 Staff To Strengthen the Long-term Value Orientation

(Hong Kong, Shanghai, October 28, 2014) Ping An Insurance (Group) Company of China, Ltd.today launched its Key Employee Share Purchase Plan (“the Plan”) which is expected to cover approximately 1,000 key staff. The Plan is intended to encourage the management and the key employees to purchase the Group’s shares with their salaries and bonuses, which will reduce the proportion of cash payment to the management and the key staff, while strengthening their long-term value orientation. Through this Plan, the key employees will be aligned with the interests of the shareholders and the Group more closely. They will also focus on the continuous growth of Ping An’s long-term performance, to strengthen the Group’s value for its shareholders and to promote the Group’s sustainable development.

The Plan will be rolled out to Ping An and its subsidiaries, with more than 80% of the 1,000 key staff in middle management positions, including Group department heads and the subsidiaries, and some experienced professionals. Upon the employee’s consent, part of his/her salary and bonus will be transferred to the purchase plan with a lock-up period of no less than 12 months, and will be returned to the employee within three years after the lock-up period.

Ping An has launched employee beneficial ownership programs as far back as the early 1990s to stabilize the core management team, which contributed significantly to the long-term and solid development of the Group. In 2010, Ping An shares vested in employee beneficial ownership program went into circulation, enabling their employee shareholders to reap the gains. Following this, the capital market had staked its hope on the prospect of Ping An key employees further raising their shareholdings in the Company, reinforcing the long-term symbiotic bond between the employees, shareholders and the Company.

Of late, China has introduced guidelines to support listed companies in launching employee beneficial ownership program in different forms, in accordance with regulations, to form an interest community of both capital owners and workers. In June this year, the China Securities Regulatory Commission announced guidelines on the scope of listed company employee ownership. Many advanced modern corporations worldwide have adopted this model, to improve cohesion among their employees as well as to ensure the corporation’s long-term and sustainable operations. Ping An’s employee beneficial ownership program is in line with the relevant national policies and the related best practices found globally.

According to the Announcement, the Plan will follow the five core principles of being legally compliant, premised on voluntary participation, long-term oriented, value-oriented and undertaken at the staff’s own risk. The Plan will be implemented in strict accordance with provisions of laws and administrative regulations, with corresponding procedures to be executed. Employees will participate on their own volition after assessing their needs, and at their own risk. The design of the Plan is in line with the mid to long-term orientation of the Company’s business, focusing on long-term value and shareholders’ returns. It will take effect after statutory procedures are completed.