09:39     HSBC CHINA FUND<00504> - Announcement (2)                           

    The Company has been informed by the Hong Kong Stock Exchange that, in    
    the absence of a viable resumption proposal required by the Hong Kong     
    Stock Exchange, the Hong Kong Stock Exchange intends to cancel the        
    listing of the Shares on 3 April 2005. The Company has been further       
    informed that details of the viable resumption proposal required and      
    other relevant information will be set out in an announcement to be       
    issued by the Hong Kong Stock Exchange and published in newspapers on 4   
    February 2005. Given that any viable resumption proposal will need to     
    demonstrate the Company's compliance with the Listing Rules and that the  
    Company has a business suitable for listing and, in particular, any       
    proposal by a third party investor to effect a fundamental change in the  
    nature of the Company's business or management will be treated as an      
    application for listing from a new applicant, the Directors currently do  
    not expect any viable resumption proposal to be submitted to the Hong     
    Kong Stock Exchange. In the meantime, trading of Shares will remain       
    suspended. The Company has also applied to the London Stock Exchange to   
    have the Shares delisted and it is expected that such delisting would     
    take place on or about 4 March 2005.                                      
                                                                              
    Subject to the necessary resources being available, the Directors shall   
    propose an extraordinary general meeting to consider and, if thought      
    fit, approve the voluntary liquidation of the Company. If voluntary       
    liquidation is not approved and in view of the financial situation of     
    the Company, the Directors would need to petition for involuntary         
    liquidation on the basis of outstanding directors' fees. It is currently  
    expected that such liquidation will not result in any monies being        
    available for distribution to Shareholders. The Company will issue a      
    further announcement if appropriate.                                      
                                                                              
    Based on the view that it is unlikely any viable resumption proposal      
    will be submitted to the Hong Kong Stock Exchange, the Directors believe  
    that the best course of action for the Company is to have the Shares      
    delisted from the Hong Kong Stock Exchange and the London Stock Exchange  
    to be followed by liquidation of the Company. Based on the financial      
    position of the Company, the Directors also believe that the Company      
    does not have the necessary resources to survive for more than 60 days    
    and therefore delisting of the Shares shall take place as soon as         
    possible.                                                                 
                                                                              
    In June 1992 the Company raised approximately US$90 million, following    
    its flotation on the Hong Kong Stock Exchange. The Shares were            
    subsequently listed on the London Stock Exchange in 1994. During the      
    life of the Company, distributions to the value of US$120,965,199 were    
    made. Since September 2001, the Company has been realizing its            
    investments with a view to having the Company wound up.                   
                                                                              
    The board of directors of the Company as at the date of this              
    announcement comprises Mr. Vincent Warner, being an executive director,   
    Dr. K. S. Lo, Sir Alan Donald and Mr. Nigel Tulloch, being independent    
    non-executive directors and Mr. Jack Mayer, being a non-executive         
    director.                                                                 
                                                                              
                                                                              
                                                                              
    By Order of the Board                                                     
    The HSBC China Fund Limited                                               
    Dr K. S. Lo                                                               
    Director                                                                  
                                                                              
    3 February 2005