Agreement with SUAEE

RNS Number:5642C
London Asia Capital PLC
08 May 2006


8 May 2006
                                       
                                        
                            LONDON ASIA CAPITAL PLC

        Agreement signed with Shanghai United Assets And Equity Exchange


London Asia Capital plc ("London Asia"), the Greater China focused investment
and merchant banking group, has signed an agreement with Shanghai United Assets
and Equity Exchange ("SUAEE"), China's largest private equity exchange, to work
together to assist Chinese businesses to restructure, raise capital and list
outside China.

SUAEE is a Chinese exchange, authorised by the Shanghai Government, for the
listing of a range of assets and companies. There are currently over 300
companies listed on the Exchange. Funds raised through the exchange in 2005
amounted to over RMB65bn (c.#4.5bn). It provides a platform for fund raisings,
acquisitions, mergers, and the reconstruction of unlisted Chinese enterprises
from both the private and public sector. Many early stage technology companies
and spin-outs from China's universities also use the exchange as a way of
sourcing funding.

Under Chinese law, state owned businesses and assets being privatised or sold
off must be advertised through one of the countries twelve private equity
exchanges. SUAEE accounts for approximately half of the all the assets sold
through these exchanges.

SUAEE sees over 12,000 applications each year. London Asia will work with SUAEE
to identify potential candidates from SUAEE's deal flow for investment, funding,
sale, expansion via acquisition or listing outside China.

London Asia and SUAEE are looking at jointly launching a fund within China,
targeting potential companies to be restructured and listed on overseas markets.

In addition, London Asia and SUAEE have agreed to create a management training
centre providing executive development programmes in China. The objective of the
centre is to support business leaders, government officials and senior
executives from state-owned organisations to develop an in-depth understanding
of corporate governance, listing requirements and financial reporting in order
to help prepare them for listing or raising funds overseas. London Asia will
also develop and publish a guide on Corporate Governance and overseas stock
market listings, for distribution by SUAEE to its client base.

Cai Minyong, President of SUAEE, said: "We have been seeking the right partner
for some time to work with us in assisting Chinese businesses that flow through
our network become more international, better regulated and able to tap into
opportunities for funding and expansion outside China. London Asia's offices in
China and overseas, experience of working with Chinese businesses and assisting
them to list overseas, and understanding of the business environment within
China and capital markets outside China make them the ideal partner for us to
assist us in the development of our exchange.

Simon Littlewood, Chief Executive, London Asia, said: "This is a significant
project for us, providing us with access to a substantial new deal flow. We have
previously focused on private companies within China, but our partnership with
the highly prestigious SUAEE takes us into working with state owned companies
and assets, which represents a vast, largely untapped sector as China
accelerates its privatisation program."


                                    - ends -


For further information please visit www.londonasia.com or contact:

John West/Matt Ridsdale                  Simon Littlewood
Tavistock Communications                 London Asia Capital plc
Tel: [phone]                       Tel [phone]


Notes to Editors

About SUAEE


SUAEE, approved by Shanghai's Municipal Government, is a comprehensive platform
for asset and equity transactions. It is an integrated market platform for all
property rights, including creditor's rights, stock rights and IPR, as well as
real assets, equity and debt.

Through its network of branches across China, SUAEE provides flexible and
convenient investment and financing services to a broad range of investors, and
promotes the convergence of state capital with private capital, foreign capital
with domestic capital, science with business, tangible assets with intangible
assets, incremental assets with stock assets. SUAEE helps to speed up the flow
of various property rights between different industries, different regions,
different countries and different ownerships.

SUAEE also provides financial support to the commercialization of scientific
achievements and the development of hi-tech enterprises. It also serves as an
entrance and exit channel for venture capital investment.

SUAEE is actively promoting the restructuring of companies, the free flow of
state-owned assets and cross-border M&A.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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