09:39     CN ENT INV FUND<02324>-Announcement&Resumption of Trading(1)        

    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 Northern Enterprises Investment Fund Limited                        
    *                                                                         
    (Incorporated in the Cayman Islands with limited                          
    liability)                                                                
    (stock code: 2324)                                                        
                                                                              
    PLACING OF NEW SHARES UNDER GENERAL MANDATE                               
                                                                              
    Placing Agent                                                             
                                                                              
    *                                                                         
    BCOM SECURITIES COMPANY LIMITED                                           
                                                                              
    On 18 February, 2005, the Company and the Placing                         
    Agent entered into the Placing Agreement pursuant to                      
    which the Company agreed to place through the Placing                     
    Agent, on a best effort basis, a maximum of 10,600,000                    
    new Shares at a price of HK$0.56 per Placing Share.                       
    The Placing Shares represent approximately 16.7% of                       
    the existing issued share capital of the Company and                      
    approximately 14.3% of the of the issued share capital                    
    of the Company as enlarged by the Placing.                                
                                                                              
    The Placing Price of HK$0.56 per Placing Share                            
    represents (i) a premium of approximately 7.7% to the                     
    closing price of HK$0.52 per Share as quoted on the                       
    Stock Exchange on 17 February, 2005, being the last                       
    trading date of the Shares on the Stock Exchange prior                    
    to the date of the Placing Agreement; (ii) a premium                      
    of 12.0% to the average closing price of HK$0.50 per                      
    Share for the five consecutive trading days up to and                     
    including 17 February, 2005; and (iii) a premium of                       
    approximately 3.7% to the unaudited consolidated net                      
    asset value per Share of approximately HK$0.54 per                        
    Share as at 31 January, 2005.                                             
                                                                              
    The net proceeds from the Placing will be                                 
    approximately HK$5.8 million, which will be invested                      
    in accordance with the Company's investment                               
    objectives of investing in listed and unlisted                            
    companies mainly in Hong Kong and the PRC to earn                         
    returns in the form of capital appreciation, dividend                     
    income and interest income.                                               
                                                                              
    Completion of the Placing Agreement is conditional                        
    upon the Listing Committee of the Stock Exchange                          
    granting the listing of, and permission to deal in,                       
    the Placing Shares.                                                       
                                                                              
    At the request of the Company, trading in the Shares                      
    has been suspended with effect from 9:30 a.m. on 18                       
    February, 2005 pending the release of this                                
    announcement. Application has been made by the                            
    Company to the Stock Exchange for the resumption of                       
    trading in the Shares with effect from 9:30 a.m. on                       
    21 February, 2005.                                                        
                                                                              
    THE PLACING AGREEMENT                                                     
    Date:   18 February, 2005                                                 
                                                                              
    Placing Agent                                                             
    The Placing Agent has agreed with the Company to place,                   
    on a best effort basis, a maximum of 10,600,000                           
    Placing Shares. The Placing Agent and its beneficial                      
    owners are third parties independent