KWONG HING INTL<1131> - Announcement

The Stock Exchange of Hong Kong Limited takes no 
responsibility for the contents of this announcement, makes 
no representation as to its accuracy or completeness and 
expressly disclaims any liability whatsoever for any loss 
howsoever arising from or in reliance upon the whole or any 
part of the contents of this announcement. 

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

Placing of 90,000,000 Existing Shares and Subscription of 
90,000,000 New Shares

The Vendor has agreed to sell 90,000,000 existing Shares in 
the Company at a price of HK$0.17 per Share and will subscribe 
for 90,000,000 new Shares at the same price.

Kingsway has been appointed as the placing agent, on a fully 
underwritten basis, in respect of the Placing.

It is intended that the net proceeds of approximately 
HK$14.97 million from the Subscription will be used as to 
HK$10 million for repayment of the Company's existing 
borrowings and the remaining balance for general working 
capital.

1.    PLACING AGREEMENT DATE 16 November 1999

Vendor 

Rayten Limited (the "Vendor"), a company incorporated in the 
British Virgin Islands, is beneficially owned as to 27%, 25%, 
24% and 24% by Mr. Li Man Ching, Ms. Li Mei Lin, Mr. Li Man 
Shun and Mr. Li Man Tak, respectively.

Number of shares to be placed 

The placement consists of 90,000,000 existing shares of 
HK$0.10 each ("Shares") in Kwong Hing International Holdings 
(Bermuda) Limited (the "Company") (the "Placing"). The 
90,000,000 Shares placed ("Placing Shares") represents 
approximately 7.6% of the Company's existing issued share 
capital of 1,188,000,000 Shares.

Placee 

There are more than six independent professional investors, 
institutional investors or other investors.

Placing Price 

HK$0.17 per Share 

The placing price was agreed after arm's length negotiations 
and represents a discount of approximately 4.5% to the 
closing price of HK$0.178 per Shares as quoted on The Stock 
Exchange of Hong Kong Limited ("Stock Exchange") on 16 
November 1999 and represents a premium of approximately 5.1% 
to the average closing prices of HK$0.1618 per Share as quoted 
on the Stock Exchange for the 10 trading days ended 16 November 
1999.

Rights 

The Placing Shares will be free of any third party rights, 
charges, equities and encumbrances. The placees will receive 
all dividends and distributions declared, made or paid on 
or after completion of the Placing.

Placing agent and underwriter 

Kingsway SW Securities Limited ("Kingsway")

Independence of placees and underwriter 

Kingsway and the placees procured by Kingsway will be 
independent of and neither connected with nor acting in 
concert with the directors, chief executive, substantial 
shareholders of the Company or any of its subsidiaries or 
any associates of any of them (as defined in the Rules 
Governing the Listing of Securities on the Stock Exchange 
("Listing Rules")).

Conditions of the Placing 

The Placing is unconditional.

Completion of Placing 

Completion of the Placing is expected to take place on or 
before 22 November 1999.

2.    SUBSCRIPTION AGREEMENT DATED 16 November 1999

Subscriber 

Rayten Limited is a company incorporated in the British 
Virgin Islands.

Number Subscription Shares 

Subscription of 90,000,000 new Shares (the "Subscription") 

The Subscription of 90,000,000 new Shares (the "Subscription 
Shares") represents approximately 7.6% and approximately 
7.0% of the Company's existing and enlarged (by the 
Subscription) issued share capital respectively.

Subscription Price 

HK$0.17 per Share 

The Company is responsible for the costs and expenses of the 
Placing and the issue of the Subscription Shares under the 
Subscription. The net proceeds of the Subscription will be 
approximately HK$14.97 million. The Vendor has undertaken 
to deposit all the sums received under the Placing to the 
Company pending completion of the Subscription.

General mandate to issue the Subscription Shares 

The Subscription Shares will be issued and allotted under 
the general mandate granted to the directors of the Company 
at the annual general meeting of the Company held on 29 
September 1999.

Ranking 

The Subscription Shares, when fully-paid and issued, will 
rank pari passu in all respects with the existing issued 
Shares of the Company.

Shareholding of the Vendor and its associates before and 
after the Placing and Subscription 

Before the Placing and Subscription, the Vendor together with 
its associates as defined in the Listing Rules own 
641,430,000 Shares, representing approximately 54.0% of the 
existing issued share capital of the Company.

After the Placing but before the Subscription, the Vendor 
together with its associates as defined in the Listing Rules 
own 551,430,000 Shares, representing approximately 46.4% of 
the existing issued share capital of the Company.

After the Placing and Subscription, the Vendor together with 
its associates as defined in the Listing Rules will own 
641,430,000 Shares, representing approximately 50.2% of the 
share capital of the Company as enlarged by the Subscription.

The Vendor has had a beneficial interest in more than 50% 
of the issued share capital of the Company throughout the 
last 12 months preceding the date of this announcement.

3.    REASONS FOR PLACING AND SUBSCRIPTION AND THE USE OF 
PROCEEDS 

The Placing and the Subscription will broaden the capital 
base of the Company. The net proceeds from the Subscription 
of approximately HK$14.97 million will be used as to HK$10 
million for repayment of the Company's existing borrowings 
and the balance for general working capital.

4.    CONDITIONS OF THE SUBSCRIPTION 

Completion of the Subscription is conditional upon the 
following taking place on or before the fourteenth day from 
the date of the Placing Agreement which is 30 November 1999:

(a)    the completion of the Placing; and

(b)    the Listing Committee of the Stock Exchange granting 
the listing of and permission to deal in the new Shares to 
be issued under the Subscription.

5.    GENERAL 

Application will be made to the Stock Exchange for listing 
of, and permission to deal in, the Subscription Shares.

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

Hong Kong SAR, 16 November, 1999