09:07     CHINA ADVANCE<08117> - 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.                   
                                                                              
    CHINA ADVANCE HOLDINGS LIMITED                                            
    (Incorporated in the Cayman Islands with limited liability)               
    (Stock code: 8117)                                                        
                                                                              
    ANNOUNCEMENT                                                              
                                                                              
    On 21st January, 2005, a wholly-owned subsidiary of the Company entered   
    into a conditional agreement with an independent third party in respect   
    of a proposed acquisition of a piece of land in the mainland China.       
                                                                              
    The Proposed Acquisition constitutes a very substantial acquisition       
    under the GEM Listing Rules. It is proposed that the Proposed             
    Acquisition will be funded by the Rights Issue intended to be             
    underwritten by Future Advance. The Company and Future Advance are still  
    finalising the terms of the Rights Issue. Further announcement regarding  
    details of the Proposed Acquisition and the Rights Issue will be issued   
    as soon as possible when the terms of the Rights Issue are finalised.     
                                                                              
    Trading in the Shares on the Stock Exchange was suspended at the request  
    of the Company with effect from 9:30 a.m. on 24th January, 2005 and will  
    remain suspended pending the release of further announcement in relation  
    to, among others, the Proposed Acquisition and the Rights Issue.          
                                                                              
    On behalf of the board of                                                 
    China Advance Holdings Limited                                            
    Yu Hongzhi                                                                
    Chairman                                                                  
                                                                              
    Hong Kong, 26th January, 2005                                             
                                                                              
    As at the date of this announcement, the Board comprises Mr. YU Hongzhi,  
    Mr. LANG Fulai, Ms. MA Zheng and Mr. CHIU Winerthan who are executive     
    Directors, and Mr. WAN Tze Fan Terence, Mr. ZHOU Guang Qi and Mr. ZHANG   
    Hongru who are independent non-executive Directors.                       
                                                                              
    This announcement, for which the Directors collectively and individually  
    accept full responsibility, includes particulars given in compliance      
    with the GEM Listing Rules for the purpose of giving information with     
    regard to the Company. The Directors, having made all reasonable          
    enquiries, confirm that, to the best of their knowledge and belief that:  
    - (i) the information contained in this announcement is accurate and      
    complete in all material respects and not misleading; (ii) there are no   
    other matters the omission of which would make any statement in this      
    announcement misleading; and (iii) all opinions expressed in this         
    announcement have been arrived at after due and careful consideration     
    and are founded on bases and assumptions that are fair and reasonable.    
                                                                              
    The above announcement is a summary only. For the full version of this    
    announcement, please refer to the "Latest Company Announcements" page on  
    the GEM website of http://www.hkgem.com.