LDC London Asia

RNS Number:9615E
London Asia Capital PLC
08 November 2004



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


               Agreement with Leading Chinese Venture Capitalist

London Asia, the AIM-listed Greater China focused investment & merchant banking
group, has been appointed corporate finance adviser to Canton Venture Capital Co
Ltd ("CVCC"), a leading Chinese venture capital group.

Under the agreement, London Asia will assist CVCC in listing its investments on
stock markets outside China and finding Western investors or buyers. CVCC will
provide details of all of its current investments, which London Asia will then
screen to identify those which are suitable for listing on AIM, OFEX, the New
York, or Singapore markets, and those for which sale to a trade or financial
buyer is more suitable. London Asia will receive fees for its services, and the
right to invest alongside CVCC.

Based in Guangzhou, CVCC has registered capital of RMB700 million (#15 million)
and has to date made over fifty investments in the Guangzhou region, with an
emphasis on the bio-technology and IT sectors. In 2003 it was ranked in the top
seven Chinese venture capitalists, and its General Manager, Mr Wang, ranked in
the top seven Chinese venture capitalists.

Mr Hongmao Wang, General Manager of CVCC, said: "There is considerable demand
from the companies we have invested in to find Western investors and business as
well as technology partners, and to gain a stock market listing outside China.
We have worked with the London Asia team successfully in the past, and have
already begun work with London Asia on the first potential listing of one of our
portfolio companies."

                                   New Office

In order to service the above agreement and tap into other opportunities in the
region, London Asia has opened a South China Regional Office in Guangzhou,
headed by Mr Hou Chun Chang, Member, National Peoples Consultative Committee
(NPCC) Mr Chang is a leading figure in the environmental sector in China: one of
the founders of Singapore stock market listed Devotion Eco-Thermal Ltd;
Executive Committee Member of the National People's Congress Environmental &
Resource Protection Committee; Director of the China Association of
Environmental Protection Industry. He is Vice President of the Guangdong
Association of Young Enterprisers, and Guangdong Association of Guangzhou
Association of Outstanding Young Persons. In 2003 Mr Chang was appointed a
Deputy of the 10th National People's Congress. Previous awards and honours
include: 2001 - Ten Outstanding Young Persons of Guangzhou; 1999 - Outstanding
Professional of Tianhe District, Guangzhou; 1998 - Excellent Young Enterpriser
of Guangzhou; 1996 - Ten Outstanding Young Persons of Tianhe District,
Guangzhou.

Mr Hou Chun Chang, said: "I have worked successfully with the London Asia senior
management team in a few ventures including the Singapore listing of Devotion. I
look forward to developing London Asia's presence in the South China region,
which has the largest number of privately-owned businesses in China. "

Simon Littlewood, London Asia Chief Executive, said: "This is in line with our
strategy of expanding into new regions in China via working with strong regional
partners. This agreement gives us access to a number of investment and fee
generating opportunities in a region which is one of the most developed in
China, and the appointment of Mr Chang to head our new office there brings in
someone with the necessary experience and contacts, both within industry and
Government, to make the most of the opportunities."

ENQUIRIES:

Simon Littlewood, CEO Tel 020 7248 7578

Paul McManus, Binns & Co Tel 020 7153 1485
Mob: 07980 541 893

About Canton Venture Capital Co. Ltd

Founded in December 1999, the company's major businesses are venture investment
in the high-tech sector, establishment of venture investment funds, as well as
investment consulting and asset management. Backed by the city government, CVCC
helps small companies and individuals in the process of commercialization of
high-tech products and related services. Based in Guangzhou, CVCC's business
covers the Pearl Delta area and southern China.

CVCC has invested over one billion RMB to date. While CVCC is open to reviewing
projects from different fields, the main areas of emphasis are
telecommunication, Internet, computer software, biotechnology, Chinese medicine
modernization, and agriculture. For additional information, see www.c-vcc.com.

About London Asia Capital

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

END
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