Result of Meeting

Subject: The Board of Managing Directors resolved to issue Overseas Convertible Bonds

Date of events: 2011/08/11

Contents:

1. Date of the board of directors resolution: 2011/08/11

2.Name 【__nth issue of (secured, unsecured) corporate bonds of ___ Co.】:

1st issue of Overseas Convertible bonds of Cathay Financial Holdings, 2011.

3. Total amount of the issue: Up to USD$ 800 million.

4. Face value: Provisional USD$ 10000 or multiples there of.

5. Issue price: Issue at 100% of the principal amount.

6. Issue period: 3 years.

7. Issue coupon/interest rate: Chairman of CFH was authorized to finalize upon the government law or marketing situation.

8. Types, names, monetary amounts of security or collateral and stipulations thereupon: N/A.

9. Use of the funds raised by the offering and utilization plan:

Overseas investment planning and financial structure adjustment.

10. Underwriting method: The Bonds will be offered outside the ROC pursuant to applicable local laws and regulations ,and market finalize upon the government law or marketing situation.

11. Trustees for the bonds: Chairman of CFH was authorized to finalize upon the government law or marketing situation.

12. Underwriter or distributing agent institution: Chairman of CFH was authorized to finalize upon the government law or marketing situation.

13. Guarantor(s) for the issue: N/A.

14. Institution serving as agent for payment of the principal and interest: Chairman of CFH was authorized to finalize upon the government law or marketing situation.

15. Certifying institution: Chairman of CFH was authorized to finalize upon the government law or marketing situation.

16. Where convertible into shares, the rules for conversion:

The Bonds may be converted into existing common shares of CFH or GDRs represented by existing common shares of CHF at the request of the bondholders during the conversion period. Each GDR represents 10 common shares of CFH. BONY is the depositary of the GDR program and Mega Commercial Bank is the custodian bank for the depositary. The indicative GDR offering plan and relevant provisions will be in accordance with the deposit agreement.

17. Resale conditions: Chairman of CFH was authorized to finalize upon the government law or marketing situation.

18. Repurchase conditions: Chairman of CFH was authorized to finalize upon the government law or marketing situation.

19. The record date for share conversion, if conversion, exchange, or subscription rights are attached: Chairman of CFH was authorized to finalize upon the government law or marketing situation.

20. Possible dilution of equity, if conversion, exchange, or subscription rights are attached: Will be evaluated after regulatory approvals.

21. Any other matters that need to be specified: Will be finalized after receiving regulatory approvals.