LDC London Asia

RNS Number:2076X
London Asia Capital PLC
20 January 2006


Embargoed for 07.00: 20 January 2006


                     LONDON ASIA CAPITAL PLC ("LONDON ASIA")

          Proposed Launch of UK AiM Listed Chinese Private Equity Fund


London Asia Capital plc ("London Asia"), the Greater China focused investment
and merchant banking group, is pleased to announce the proposed launch of a new
fund, London Asia Chinese Private Equity Fund Limited ("the Fund"), which is
seeking significant capital growth via investment in private equity
opportunities in China.

The Fund, seeking to raise up to #50 million, is sponsored and advised by
Collins Stewart Limited, and will seek a listing on the UK's AiM Stock Market.
London Asia will be advising the Fund and two of its Directors, Simon Littlewood
and Victor Ng, Chief Executive and Group Executive Director for Greater China
respectively, will be appointed to the Board of the Fund.

London Asia will receive an annual fixed fee of 2 per cent. of the Fund's net
asset value, plus a performance related fee based on the increase in the net
asset value each year, subject to the Fund proceeding.

The Fund will focus on investment in businesses in China that are seeking
additional working capital to fund expansion, or are looking to list on capital
markets worldwide. London Asia has already identified over #150 million of
investments that potentially meet the Fund's investment criteria from its
existing deal flow, sourced from its teams in seven offices across China.

The Fund will focus on investments that are profitable, cash flow positive and
have potential for high profit growth. The focus will be on companies in the
energy & environment, financial services, TMT, education, pharmaceutical,
chemical and consumer products sectors. Typically, exits will be sought 12 to 36
months after initial investment, via both trade sale and IPO. Investment
proceeds will be re-invested in the Fund.

Simon Littlewood, Chief Executive, London Asia Capital said: "London Asia has an
extensive network of offices and contacts across China. Our management team has
a proven track record of investing in Chinese businesses and generating
significant returns for investors, particularly via IPOs on established
markets."

He added: "To date we have more investment opportunities available to us than we
are able to fund from our own resources. This fund will change that. The mix of
deal flow, contacts and management experience, along with an established network
of offices in the main international financial centres around the world, and
seven offices in China staffed by local Chinese and Western trained
professionals, means that London Asia is uniquely placed to launch a fund for
investment in high growth private businesses in China."


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

John West/Matt Ridsdale                  Simon Littlewood
Tavistock Communications                 London Asia Capital plc
Tel: 020 7920 3150                       Tel 020 7248 7578







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

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