Investment in Chinese Bank

RNS Number:7479F
London Asia Capital PLC
29 November 2004



                            London Asia Capital PLC
                        ("London Asia" or "the Company")

                     Investment in Chinese investment bank

London Asia, the AIM-listed Greater China focused investment & merchant banking
group, announces the completion of its investment in China Finance Investment
Banking Group ("China Finance"), a newly formed company which will carry out
investment banking services within China.

London Asia has invested RMB60 million (#3.9 million) for an initial 6% stake in
China Finance, with the option, payable at the same price as the initial
investment and exercisable until 31st May 2005, to increase its stake to 20%.
China Finance has registered capital of RMB1 billion (#66 million).

London Asia directors Simon Littlewood and Victor Ng have been appointed to the
China Finance Board. London Asia will be responsible for China Finance's
operations outside China, and for corporate finance operations within China.

The new company has been formed together with existing partners in China, with
the largest shareholder being Wuhan Kaidi Electric Power Co. Ltd ("Kaidi").
Kaidi, listed on China's Stock Market with a market capitalisation of over #130
million, is a 26% shareholder in China Finance. Kaidi is a power and
environmental group whose management team has substantial experience in
acquisitions, restructurings and capital market transactions.

Other significant shareholders include Wuhan High-Tech Holding Company Ltd,
operator of the business park in Wuhan that London Asia announced an alliance
with in March this year, which houses over 5,000 businesses.

China Finance will carry out a range of investment banking activities in China.
The main office will be in Wuhan, Hubei Province, which is the fourth largest
financial center in China and one of China's largest recipients of foreign
investment after the Coastal Cities. Activities will focus on the five provinces
of Hubei, Hunan, Henan, Jiangxi and Anhui.

Mr Chen Yilong, Chief Executive of Kaidi, said: "The Wuhan region currently does
not have a significant financial group with the ability to meet the needs of
local businesses and incoming foreign investors. With the Chinese Government's
emphasis on shifting new investment from the more developed coastal cities into
the center and west of China, China Finance will be well placed to benefit from
the next wave of investment in China."

Simon Littlewood, London Asia Chief Executive, said: "The opening up of China's
financial services sector in 2006 under its WTO commitments will present a
number of opportunities to build a significant investment bank via acquisition,
as the local financial services businesses seek to consolidate in anticipation
of greater foreign competition. China Finance will be well placed to become a
significant force in the region."

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

Simon Littlewood, CEO Tel [phone]

Jonathan Wright, Seymour Pierce Tel [phone]

About Wuhan Kaidi Electric Power Co. Ltd
Headquartered in Wuhan, Kaidi was founded in 1993 and in 1999 listed on China's
Shenzhen Stock Exchange, with a current market capitalization of over #130
million.

Kaidi's core business is the development and application of new technologies and
products for environmental protection and power generation. It carries out EPC
contracting of engineering design, complete plant construction, installation,
commissioning and training for coal burning power plants, flue gas
desulphurization projects, clean coal burning power plant technologies and
domestic waste treatment and power generation projects. For additional
information, see www.china-kaidi.com.


About Wuhan East Lake High Technology Development Zone ("WENDZ")

Wuhan is the leading centre in China for the opto-electronics and
telecommunications industries. It has 736 scientific research and designing
institutes, and 10 state-level leading laboratories. As well as being one of the
four largest financial centres in China, Wuhan is also the telephone
transmission center for all seven provinces in southern China and has received
the largest percentage of foreign investment in inland China in the past 5
years.

WENDZ, established in 1988, can draw on experts and technicians from 23
universities and 56 research institutes on site, with 350,000 on-campus
university students and 50,000 graduates a year, with one third of those people
engaging in research and industrialization of opto-electronics and information
technology. In 2003 revenue from companies on the park totaled over 6 billion
RMB (#400 million). WENDZ has a number of key technological advantages
including:

   * Largest optical fibre and cable production base in China
   * Largest optoelectronic devices production base in China
   * Largest laser industrial base in China
   * Largest optical communication R&D base in China
   * Largest CAD software production base in China
   * Largest Multimedia software production base in China

Additional information is available on www.wehdz.gov.cn.

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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