Strategic Alliance

RNS Number:8878T
London Asia Capital PLC
06 January 2004

6th January 2004


            LONDON ASIA CAPITAL PLC ("London Asia" or the "Company")


Strategic Alliance with Chinese Economic Zone


London Asia Capital, the AIM-listed Greater China focused investment banking
business, has signed a strategic alliance with a Chinese business park, Yantai
Wolong Economic Zone ("Wolong").  The deal is the first to result from the
alliance signed between London Asia and Heda Group in November 2003.


Wolong currently hosts approximately 120 companies, over 66% of which are
privately owned Chinese enterprises.  Covering over 5 square kilometres,
ultimately the park is seeking to house over a thousand enterprises.   Yantai is
a port city, with a population of 6.35 million.


Under the Alliance, Wolong will provide London Asia with details of companies
within the business park seeking strategic investors or looking to list on a
Stock Market ("IPO").  London Asia will then decide which companies are suitable
for it to invest in via share swap or pre IPO finance, and which can be taken
straight to IPO outside China or sold to Western businesses and investors.



Victor Ng, London Asia Director of China Operations said: "Working with Wolong
gives us access to an additional source of pre-vetted investment opportunities,
which should present a number of opportunities for London Asia in 2004.  The
alliance with Wolong further extends our coverage in China"



Mr Cai, Chief Executive of Wolong, said: "We are very excited to be working with
London Asia and making use of their expertise in identifying which businesses
are suitable for Western investment and listing outside China."



Bill Wang, CEO of Heda Group, said: "We have been operating in the Yantai region
for some time and see large potential for the area to develop, given its port,
proximity to South Korea and Japan, and the fact that the Olympics in 2008 will
be part hosted in nearby Qingdao".



Simon Littlewood, CEO of London Asia, said: "We anticipate this being the first
of several such alliances in China, which gives us access to good investment
opportunities at minimal additional cost to the Company."





ENQUIRIES:
Paul Quade, City Road Communications                    Tel [phone]
7th Floor, Roman House
Wood Street
London EC2Y 5BA



About Heda Group

In November 2003 London Asia signed a strategic agreement with Heda Group 
("Heda") to work together in China.  Beijing headquartered Heda has made a 
number of investments in the power, water and environmental sectors across 
China, including a power plant and a company with a software solution for the 
power industry.  Heda has fifteen staff, who are working alongside London Asia 
staff to identify investment opportunities in which the companies will co-invest.






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