KWONG HING INTL<1131> - Announcement

Kwong Hing International Holdings (Bermuda) Limited
(Incorporated in Bermuda with limited liability)

Kwong Hing International Holdings (Bermuda) Limited (the 
"Company") wishes to

1.      clarify its current stage of negotiation of a possible 
acquisition of shares in a private company holding business 
in relation to the provision of internet content in the 
Mainland of China; 

2.      respond to recent press reports regarding restrictions 
on foreign investment in internet related business in the 
Mainland of China.

Persons dealing in shares of the Company are reminded to 
exercise due caution.

The board of directors (the "Board") of the Company refers 
to the Company's announcements dated 21st June, 6th and 7th 
July, 1999 respectively in relation to this matter. The 
Board also notes that recently there are many articles in 
the newspapers in relation to restrictions on foreign 
investment, management or operation in or of internet-
related businesses in the Mainland of China. The Board 
wishes to state that the Company is still in negotiation 
on the possible acquisition of shares in a private company 
which holds and operates business in the Mainland of China 
in relation to the provision of internet content. The 
negotiation is still in a preliminary stage and may or may 
not proceed; and the Company will definitely make it a 
condition precedent on the seller to provide proper legal 
opinion from reputable law firm in the Mainland of China 
to certify that the internet business, the operation of the 
foreign invested companies holding the business are all 
proper and legal according to the current law of the 
Mainland of China.

Persons dealing in shares of the Company are reminded to 
exercise due caution.

By order of the Board 
Kwong Hing International Holdings (Bermuda) Limited
Li Man Ching
Chairman

Hong Kong: 15th September, 1999