China Development Fund

RNS Number:5393I
London Asia Capital PLC
14 February 2005



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

                             China Development Fund
                            Adviser to Business Park

London Asia, the AIM-listed Greater China focused investment and merchant
banking group, has signed an agreement to work with Qingdao Sino-Canada Science
and Technology Park ("SCST") for the formation of an RMB200m (#13 million) fund
("the Fund").

The Fund once formed will help businesses within the Park fund the acquisition
of technology and businesses both within and outside China. London Asia
directors Simon Littlewood and Victor Ng have joined the Board of SCST to help
take the project forward.

The Fund is to be set up in collaboration with the Qingdao Economic Development
Zone, which currently manages a business park housing over 10,000 companies.
London Asia is to provide capital market expertise and international corporate
finance services to the businesses in the park.

The Park covers 260,000 square metres and is operated in conjunction with the
Canadian Government's National Research Council ("NRC"). London Asia will work
with SCST to identify those companies suitable for listing outside China,
provide corporate finance advice, including mergers and acquisitions, trade
sales and finding overseas investors, and identify opportunities for Canadian
businesses and technologies to be matched with businesses in the Park. Various
incentives are available for Canadian companies looking to set up operations in
the Park.

Mr Ma Weigang, Vice Director of Qingdao Economic Development Zone, said "London
Asia's strong local experience, offices and existing relationships with Business
Parks across Shandong Province, coupled with its international network, will be
of great benefit to the businesses in the Park. This will also help with the
cross fertilisation of technology and businesses from Canada to China."

Gerry Xiao, President, SCST, added:" We are very excited about this new
initiative since it will enable Chinese companies, especially small and medium
sized enterprises, to internationalise their operations through London Asia's
capital market expertise and Canada's technology-powerhouse, the NRC."

Victor Ng, London Asia's Director of China Operations said: "We are delighted to
be working with these new partners, which consolidates our already strong
position in Shandong Province and gives us access to a further 10,000 businesses
in China, some of whom are looking to find overseas partners, investment or list
outside China. ."


ENQUIRIES:
Paul McManus, Binns & Co Tel [phone]
Mob: [phone]

Jonathan Wright, Seymour Pierce Tel [phone]



About Sino-Canada Park

Sino-Canada Park is a specially designated Collaborative Research Complex,
authorized by China's Ministry of Science and Technology ("MOST"). The complex
is managed by SCST in accordance with the Memorandum of Scientific Cooperation
signed between MOST and the Canadian government sponsored National Research
Council (NRC). The complex is operated under the oversight of the MOST and NRC,
with the Qingdao Bureau of Science and Technology providing local direct
leadership.


About Qingdao

Located in Shandong Province, south of Beijing, the city is receiving
substantial investment partly as a result of the infrastructure being upgraded
in anticipation of the water based element of the 2008 Olympics being held
there.

About London Asia Capital plc

London Asia is a leading AIM listed investment and merchant banking group
focused on the SME market in Greater China.

London Asia has identified that as a result of the fast growing Chinese economy
and an underdeveloped financial services industry, there is strong demand for
both capital and skilled financial advisory services in China, especially among
small-to-medium sized enterprises.

London Asia operates two principal businesses within Greater China:

   * Investment in profitable businesses with exits via IPO or trade sale;
   * Investment Banking services, mainly corporate finance advisory (fund
    raisings, IPO's and M&A) and fund management

London Asia has a growing list of investments, paid for via a mix of cash and
London Asia shares, focused on distinct industry sectors:

   * Financial Services
   * Media
   * Information technology & communications
   * Infrastructure, energy & natural resources & environment

London Asia has offices and management teams, as well as strong local partners,
across the Greater China region, as well as alliances with a number of Chinese
business parks which gives London Asia access to over 7,000 Chinese businesses.
These provide direct access to investment opportunities, close relationships
with corporate clients, a good level of control over existing investments,
access to local market intelligence as well as providing leverage through a
network of partners. These work in conjunction with our international network in
London, New York, Singapore, Hong Kong and Taiwan.




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

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