Alliance, change of year end

RNS Number:4787T
London Asia Capital PLC
19 December 2003

19th December 2003



            LONDON ASIA CAPITAL PLC ("London Asia" or the "Company")



Strategic Alliance with Chinese venture capital group
Change to Company Year End



London Asia Capital, the AIM-listed investment business focused on China, has
signed a strategic alliance with a leading Chinese venture capital group which
has expertise in the utilities sector.



Beijing headquartered Heda Group ("Heda") has made a number of investments in
the power, water and environmental sectors across China, including a power plant
and a company with a software solution for the power industry.  Heda has fifteen
staff, who will now be working alongside London Asia staff to identify
investment opportunities in which the companies will co-invest.



London Asia and Heda will also seek to raise a venture capital fund within China
from existing Heda clients and additional investors.  The fund will be jointly
managed by London Asia and Heda and will invest in projects within China.



The Heda team have previously been responsible for the first float of a Chinese
power station on the Shanghai Stock Exchange, and in November 1999 in
conjunction with London Asia director Victor Ng floated Asia Power Corporation
Ltd, owner of six power stations in China totalling 467MW's of power, on the
main market of Singapore's Stock Exchange.



In order to bring our accounting year in line with that of our underlying
Chinese investments, all of which have a December year end, London Asia has
decided to change its accounting year end from 31st May to 31st December.  The
Company's interim results to 30th November 2003 will be released in February
2004.  A set of accounts for the seven months to 31st December 2003 will be
produced in place of the annual accounts to 31st May 2004.



Victor Ng, London Asia Director of China Operations said: "I have been working
with the restructured Heda team in China since 1996.  China's rapid development
from an agricultural to an industrial economy is creating severe shortages of
clean water and power, as well as generating large amounts of waste water to be
treated.  Working with Heda gives us access to their expertise in this
profitable industry sector and an additional fifteen staff, which should present
a number of opportunities for London Asia in 2004."



Bill Wang, Chief Executive of Heda, said: "We are very excited to be working
with London Asia, which gives us access to stock markets outside China to meet
the capital needs of Chinese companies seeking to take advantage of the
opportunities in the power and water sectors in China."



Simon Littlewood, Chief Executive of London Asia, said: "The alliance with Heda
is part of our continuing strategy to work with partners in China who have
either industry specific expertise, or a strong regional presence.  The proposed
fund with Heda is the first of several we are looking to create to tap into the
vast savings market within China.  Bringing our financial year end in line with
our investments should make it easier for shareholders to gauge the financial
performance of the Company."


ENQUIRIES:

Paul Quade, City Road Communications    Tel [phone]
7th Floor, Roman House
Wood Street
London EC2Y 5BA




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