Issue of Equity

RNS Number:0350O
London Asia Capital PLC
24 June 2005


                            LONDON ASIA CAPITAL PLC
                                        
                  SUCCESSFUL PLACING RAISES OVER #11 MILLION -
                                        
                     ADDITIONAL INVESTMENT IN CHINA FINANCE
                                        
London Asia Capital plc ("London Asia" or "the Company") announces that it has
successfully raised #11.4 million (before expenses) by way of a placing of
76,027,253 new ordinary shares to institutional and other investors at a placing
price of 15 pence per new ordinary share. Following the placing, London Asia
will have 213.4 million shares in issue. Application will be made to admit the
new ordinary shares to trading on AIM and admission is expected on 30 June 2005.

#9.3 million of the funds raised will be used to exercise London Asia's option
to increase its holding in China Finance Investment Banking Group ("China
Finance"), from 6% to 20%. In November 2004, London Asia paid #3.9 million for
an initial 6% stake and took an option to raise this stake to 20% at the same
price.

China Finance is a Chinese investment banking group with registered capital of
RMB1 billion (#66 million). It was established in November 2004 by the founder
shareholders, including London Asia, to consolidate the inefficient and
fragmented financial services market in China. Headquartered in Wuhan, at the
heart of China's five central provinces which together have a fast growing
population of some 300 million people, it offers a range of investment banking
services. China Finance's other founder shareholders include Kaidi Electric
Power Group, listed on China's Shenzhen Stock Exchange, and East Lake
Environment Group, listed on the Shanghai Stock Exchange.

The Bank's focus is on the rapidly growing energy and environmental sectors. It
provides services including corporate finance, equity raising, leasing, credit
guarantee, debt financing and mergers and acquisitions advice. London Asia is
the exclusive provider of corporate finance services - for which it receives
fees - and has two seats on the Board of China Finance. The Bank has already
secured a number of mandates which potentially could generate significant fees
for London Asia.

Mr Chen, Chief Executive of China Finance, said: "We look forward to working
with London Asia to leverage on its international capital market expertise to
grow China Finance into the leading Chinese financial institution focusing on
the environment, energy and resources sectors of the fast-growing Chinese
economy."

Simon Littlewood, London Asia Chief Executive, said: "As a result of the strong
support shown for the fund raising, and given the substantial number of
opportunities being presented to China Finance as the financial services sector
in China re-organises, we took the decision to raise sufficient funds to
exercise our option to increase our stake in China Finance in full. We are
delighted with the support shown by existing shareholders in the placing, and
very pleased to welcome several new shareholders. London Asia is now in a
considerably stronger financial position to capitalise on the wealth of
opportunities available to us in China."

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

Simon Littlewood, Chief Executive             Jeremy Carey/John West
London Asia Capital                           Tavistock Communications
Tel: [phone]                            Tel: [phone]

About China Finance

China Finance is a Chinese investment banking group, co-founded in November 2004
by London Asia, with a registered share capital of RMB1 billion. It is seeking
to acquire a number of financial services businesses within China to take
advantage of the consolidation in the sector as a result of the opening up to
foreign competition. A number of potential acquisitions have been identified and
are undergoing due diligence.

About London Asia Capital plc

London Asia is an AIM listed investment and merchant banking group focused on
the SME market in Greater China. London Asia operates three principal
businesses:

   * Investment of own funds in profitable businesses in Greater China, with
     exits via IPO or trade sale;
   * Investment Banking services, mainly corporate finance advisory (fund
     raisings, IPO's, M&A and restructurings); and
   * Fund management.

London Asia has offices and management teams, as well as strong local partners,
across the Greater China region. These work in conjunction with our
international network in London, New York, Hong Kong and Singapore.



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