09:17     PICC P&C<02328> - Announcement (3)                                  

    The Consideration was determined after arm's length negotiations          
    between the Company and the Vendor by reference to the market             
    value of similar properties in the same and adjacent locations.           
    The Acquisition will be funded by internal resources. The                 
    Directors are of the view that the terms of the Agreement are             
    fair and reasonable and in the interests of the Company and the           
    shareholders as a whole. There will be no adverse impact on the           
    assets and liabilities of the Company.                                    
                                                                              
    REASONS FOR THE ACQUISITION                                               
                                                                              
    The Company is a provider of commercial insurance coverage in             
    the PRC and provides a wide range of property and casualty                
    insurance as well as related reinsurance. Due to the office space         
    and facilities in the existing headquarters of the Company are            
    inadequate to meet its development needs, the Property is                 
    acquired and will be used by the Company as a new headquarters            
    building.                                                                 
                                                                              
    DESPATCH OF CIRCULAR                                                      
                                                                              
    The Acquisition constitutes a discloseable transaction of the             
    Company under the Listing Rules. Accordingly, the Acquisition             
    is subject to disclosure requirements as set out in Chapter 14            
    of the Listing Rules. The Company will send a circular in relation        
    to the Acquisition to the shareholders of the Company as soon             
    as practicable.                                                           
                                                                              
    DEFINITIONS                                                               
                                                                              
    In this announcement, the following expressions shall have the            
    following meanings:                                                       
                                                                              
    "Acquisition"   the acquisition of the Property pursuant to the           
    Agreement                                                                 
                                                                              
    "Agreement"     the agreement entered into between the Vendor, the        
    Guarantor and the Company in respect of the sale and purchase             
    of the Property, which was approved by the Board on 19 January            
    2005                                                                      
                                                                              
    "Board" the board of directors of the Company                             
                                                                              
    "Company"       PICC Property and Casualty Company Limited, whose H       
    shares are listed on the Main Board of The Stock Exchange of              
    Hong Kong Limited                                                         
                                                                              
    "Consideration" RMB1,704,987,805, being the consideration                 
    payable by the Company for the Acquisition                                
                                                                              
    "Directors"     the directors of the Company                              
                                                                              
    "Formal         the sale and purchase agreement to be entered             
      Agreement"    into between the Vendor and the Company within            
    five working days after the Vendor obtaining the pre-sale permit          
    of commercial property in Beijing of the Property                         
                                                                              
    "Guarantor"     China Yintai Holdings Co., Ltd.                           
                                                                              
    "Listing Rules" the Rules Governing the Listing of Securities             
    on The Stock Exchange of Hong Kong Limited                                
                                                                              
    "PRC"   the People's Republic of China                                    
                                                                              
    "Property"      "East Office Building, Yintai Centre" and 300 car         
    parking spaces, situated at No. 4 Jianguomenwai Street, Chaoyang          
    District, Beijing 100022, the PRC                                         
                                                                              
    "RMB"   Renminbi yuan, the lawful currency of the PRC                     
                                                                              
    "Vendor"        Beijing Yintai Property Co., Ltd.