Issue of Equity

RNS Number:2902F
London Asia Capital PLC
16 November 2004



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

                          Placing raises #3.3 million

                 Proposed investment in Chinese investment bank

London Asia, the AIM-listed Greater China focused investment & merchant banking
group, is pleased to announce that it has raised #3.3 million before expenses
via the placing by Seymour Pierce Limited of 30 million ordinary 5p shares with
institutional investors at 11p per share.

London Asia is currently in negotiations to obtain an investment banking licence
within China. The licence will enable London Asia to carry out a range of
investment banking activities in China that are currently restricted to those
with the necessary regulatory approval.

It is the Company's intention to use the proceeds from the Placing to invest in
a new company that has been set up, together with partners in China, to apply
for the licence. The new capital will contribute towards meeting the minimum
levels of capital required under Chinese laws before regulatory approval is
granted.

Application has been made to admit the new ordinary shares to be issued pursuant
to the Placing to trading on AIM and admission is expected on 19 November 2004.
The total number of issued ordinary shares in the Company admitted to AIM
following the placing will be 118.4 million.

Simon Littlewood, London Asia Chief Executive, said: "Obtaining an investment
banking licence is a big step forward for our company, as it puts us in a
position to tap into the huge potential of the financial services market in
China. We are delighted by the support shown by both existing and new
institutional shareholders in the placing, which enables us to bring together
many of the activities we have been developing over the last two years and will
enable us to expand significantly the range of revenue generating services we
can offer within China."

ENQUIRIES:

Paul McManus, Binns & Co Tel [phone]

Mob: [phone]

Jonathan Wright, Seymour Pierce Tel [phone]


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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