Strategic Alliance

RNS Number:1602N
London Asia Capital PLC
06 June 2005


Embargoed until 07.00 am: 6 June 2005

                            London Asia Capital plc
                                        
            Alliance Signed with China Chengxin Financial Consultancy


London Asia Capital plc ("London Asia") announces that it has signed a strategic
alliance with China Chengxin Financial Consultancy Co. Ltd ("CCXC") under which
the two parties will co-operate in providing off-shore financing to, and
undertake listings for, Chinese corporations.


The alliance with CCXC provides London Asia with a nationwide business network,
additional expertise and experience in China and the ability to share the
extensive client resources and expertise of CCXC and its parent CCX. The
agreement significantly enlarges London Asia's potential customer base,
facilitating more rapid growth and further promotes London Asia's brand and
business within China.


CCXC is a leading Chinese investment banking institution engaged in the
provision of integrated professional, financial, and management consultancy
services. Established in 1992, CCXC was part of the Group which was the first
ever holder of a financial business licence to provide investment banking and
credit rating services in China, and has played a major part in setting the
standards for the securities industry within China. Headquartered in Beijing,
CCXC has an extensive business network with nationwide coverage from 15 branches
covering the main economic cities in China.


CCXC has successfully completed over a hundred financial advisory cases, with a
combined transaction size of several billion pounds, including well known
projects such as the debt financing and IPO of the Three Gorges Project; project
finance for the China National Stadium for the 2008 Beijing Olympics Games; the
restructuring and IPO of China National Petroleum; and the merger and
acquisition of Ford Motors in China.


In early 2003 CCXC signed a strategic alliance with Merrill Lynch, under which
the parties provide joint advisory services in their Chinese investment banking
transactions including overseas listings, cross-BORDER="0" M&A transactions, and
Non Performing Loan management. Joint transactions have included acting as joint
advisor to North China Pharmaceutical Group Corporation in its corporate
restructuring programme.



Hong Liu, Chief Executive of CCXC commented: "CCXC has extensive professional
resources and a widespread business network throughout China, and the London
Asia team has significant experience and resources for financing and listing
Chinese companies on foreign stock markets. The strategic alliance between our
two companies will create a win-win situation for us both as we move forward."


Simon Littlewood, Chief Executive of London Asia, added: "CCXC is the leading,
blue chip financial group in China, and this deal gives us heightened
recognition within China by association with CCXC's renowned brand name. It will
also deliver enhanced deal flow for London Asia based on CCXC's presence in
cities where we currently are not represented and gives us access to their
substantial experience of structuring and managing deals in China. This
continues our strategy of working with strong local partners in China to ensure
access to top quality, pre-vetted deal flow and enable effective management of
portfolio companies post investment."


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

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



Notes to Editors - 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:


o   investment of own funds in profitable businesses in Greater China, with
    exits via IPO or trade sale;

o   investment Banking services, mainly corporate finance advisory (fund
    raisings, IPO's, M&A and restructurings); and

o   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.



About China Chengxin Financial Consultancy


CCXC is a leading Chinese investment banking institution engaged in the
provision of integrated professional, financial, and management consultancy
services. These services include restructurings, initiating and implementing
mergers and acquisitions, debt and equity financing, management buy-outs,
non-performing loans management, strategic planning and risk management,
public-private partnership (PPP)/ and private finance initiative (PFI)
transactions.


CCXC clients are able to receive accessible and interactive professional
services provided by a group of experienced investment bankers, famous
economists, CPAs, IPO and M&A lawyers, and investment analysts.


Well known projects CCXC has worked on include: debt financing and IPO of the
Three Gorges Project; project finance for the China National Stadium for the
2008 Beijing Olympics Games; the major restructuring program of Hubei Xinghua, a
subsidiary of Sinopec; the restructuring of South China Grid, Monkey King
Pharmaceutical, and National Investment Yiyang Industry; and financial advisory
services to Chinese companies listed on the Hong Kong Stock Exchange, including
COSCO International, COSCO Pacific, and Merchant Bureau.


Since 2002, China Chengxin has become a shareholder of Fujian Lianhua Trust &
Investment Group, and Xinhua Trust & Investment Co.. These structures have
strengthened CCXC's capital management capability and market position.


Other strategic partners include Pasco International Financial Securities L.L.C.
(for IPOs on NASDAQ), Core Pacific Yamaichi and Tiffit Securities (Hong Kong)
Ltd. (for IPOs on HKSE), Deloitte Touche and JS Cresvale (for corporate finance
and M&A advisory services), and World Bank/International Finance Corporation
(for private sector finance).


For additional information on CCXC, please visit www.ccxc.com.cn


CCXC is a subsidiary of China Chengxin Credit Management Co., Ltd (CCX), the
first nationwide financial institution providing credit rating, financial
security consultancy and information services. CCX has over 20 regional branches
covering most of the economically advanced areas in China, including Beijing,
Shanghai, Shenzhen, Tianjin, Guangdong, Zhengjiang, Jiangsu and Wuhan.


China Chengxin International Credit Rating Co., Ltd (CCXI), another subsidiary
company of CCX, is the first domestic Sino-foreign joint venture credit rating
agency in China. With the approval of the People's Bank of China and the
Ministry of Foreign Trade and Economic Corporation, CCXI adopted advanced
international rating techniques from the Fitch International Credit Rating Co.,
Ltd, which is one of its shareholders.








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

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