Islamic Finance Division

RNS Number:8964S
London Asia Capital PLC
14 March 2007


14 March 2007

                            LONDON ASIA CAPITAL PLC

                      Creation Of Islamic Finance Division


London Asia Capital plc ("London Asia" or "the Company") the UK listed (AIM:
LDC.L) Asia focused investment and merchant banking group, is pleased to
announce that it has created a new division focused on Islamic finance, which
has reached agreement for the establishment of the Islamic Financial Services
Institution ("IFSI") in Western China. IFSI will offer financial services and
products to China's estimated 20 million Muslims.


The new division, headed by Abrahim Ma Maozong, will be 40% owned by London Asia
and 60% by the management team, in line with the Company's strategy of aligning
the interests of senior management with those of the Company. It will bring
together under one team all of the activities undertaken by London Asia in
Islamic finance, including: several initiatives in the Middle East; the
agreement announced last month to create a new fund management company to launch
the new West China High Growth Fund; and London Asia's Brunei business, which
last month announced that it had received authorisation as one of only a handful
of foreign fund managers in the Kingdom of Brunei Darussalam.


Abrahim Ma Maozong is former Chairman & President of the China Nationalities
International Trust & Investment Corporation; Visiting Professor, Central
University for Nationalities; Managing Councillor, the Council of AHPRC;
Managing Councillor, China Institute of Huizu Research Institute; Councillor,
China Institute of Finance; Councillor, China Institute of Coins Research
Institute; Councillor, China Youth Development Foundation; and Special Adviser,
China Environment Protection Fund.


Islamic finance has been gaining momentum globally for the last 30 years. The
industry is currently estimated at more than $400 billion worldwide, with
projected growth of 10-15% per annum as demand for Shariah-compliant products
and services continues to grow.


The IFSI will be formed as a credit guarantee company, which will provide credit
and guarantee services, mainly targeting Islamic and Shariah-compliant companies
in Western China. The guidelines that IFSI will adhere to will be in accordance
with the Islamic Finance Framework accepted by the International Muslim
community. IFSI will be formed with London Asia's partner in Xinjiang, Xinjiang
Investment Corp. ("XIC").


Xinjiang, with up to half of China's Muslim community, is a fast growing economy
benefiting from its rich resources of oil & gas and other minerals, and is
strategically located to serve the resource-rich countries in Central Asia.


Abrahim Ma Maozong commented: "There is growing demand within China for Islamic
financial products. XIC has strong contacts in an area with the largest
concentration of Muslims in China. Through London Asia's international contacts,
we look forward to accessing capital and the full range of products being
developed worldwide in Islamic banking."


Simon Littlewood, Chief Executive of London Asia, commented: "Given the
specialist nature of Islamic financial products, which is outside London Asia's
existing core competence, we have elected to address this growing market by
backing a team which will focus specifically on this area, rather than attempt
to do it wholly within London Asia, where we do not have the resources."



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

John West/Matt Ridsdale    Simon Littlewood        Jeremy Porter/Jonathan Wright
Tavistock Communications   London Asia Capital plc Seymour Pierce
Tel: [phone]         Tel: [phone]      Tel [phone]




Notes to Editors

Background on Xinjiang

Xinjiang, located in northwestern China, covers an area of 1.66 million m2,
approximately one sixth of China's land area. It borders Russia, Kazakhstan,
Kirghiziastan, Tajikistan, Pakistan, Mongolia, India and Afghanistan. The region
has significant mineral and energy resources, including an estimated 30% of
China's oil deposits, 34% of China's natural gas deposits and 40% of China's
coal reserves.


XIC is the largest investment corporation in Xinjiang Province, with strong
support from the provincial government, which uses it as a vehicle for pre-IPO
investment. The XIC team, headed by Mr. Kang Jingcheng, has significant
experience of investing in western China. With over RMB2bn in total assets, XIC
has established itself as one of the key investors in Xinjiang Province.





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

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