09:23     <03980>,<03981>, <03984> & <03986> - Announcement (2)               

    existing issued ordinary      28 October     HK$2.70                      
     H shares of RMB1.00                2005                                  
     each of China Telecom                                                    
     Corporation Ltd.                                                         
                                                                              
    existing issued ordinary    21 September     HK$4.70                      
    H shares of RMB1.00                 2005                                  
     each of Jiangxi Copper                                                   
     Co. Ltd.                                                                 
                                                                              
    Each series of Warrants will be issued at the following issue prices:     
                                                                              
    Warrants                         Issue Price per Warrant                  
                                                                              
    Chalco Call Warrants                             HK$0.77                  
    Yanzhou Coal Call Warrants                       HK$1.81                  
    China Telecom Call Warrants                     HK$0.345                  
    Jiangxi Copper Call Warrants                     HK$0.38                  
                                                                              
    Every board lot of Warrants will initially entitle the holder upon        
    exercise thereof to receive from the Issuer a payment in cash (the        
    "Cash Settlement Amount") calculated as follows:                          
                                                                              
     Cash Settlement Amount per Board Lot: =                                  
                                                                              
     (Average Price - Exercise Price) x one Board Lot                         
                                                                              
     number of Warrants per Share (as defined in, and subject to              
     adjustment as provided in, the Conditions)                               
                                                                              
    In respect of the Warrants, on the Expiry Date, if the Exercise Price     
    is less than the Average Price, the Warrants will be automatically        
    exercised. It is not necessary, therefore, for a holder of Warrants to    
    submit an exercise notice in order to exercise its Warrants and the       
    Issuer will pay to the holder of Warrants an amount calculated as         
    described above (minus exercise expenses in accordance with the terms     
    and conditions of the Warrants).                                          
                                                                              
    The Issuer is not regulated by any of the bodies referred to in Rule      
    15A.13(2) or (3) of the Rules Governing the Listing of Securities on      
    the Stock Exchange. The Warrants will constitute general unsecured        
    contractual obligations of the Issuer and will be unconditionally and     
    irrevocably guaranteed by the Guarantor which is a bank holding company   
    registered under the Bank Holding Company Act of the United States of     
    America. Prospective purchasers of the Warrants should note that if       
    they purchase the Warrants, they are relying upon the creditworthiness    
    of the Issuer and the Guarantor and have no rights under the Warrants     
    against the company which has issued the underlying securities.           
                                                                              
    Dealings in the Warrants are expected to commence on the Stock Exchange   
    on or about 15 March 2005.                                                
                                                                              
    The premium, gearing, effective gearing and implied volatility in         
    respect of each series of Warrants are as follows:                        
                                                                              
                                                Effective    Implied          
    Warrants                    Premium Gearing   Gearing Volatility          
                                                                              
    Chalco Call Warrants          9.00%   6.49x     4.22x     42.05%          
    Yanzhou Coal Call Warrants   13.66%   6.71x     3.98x     43.14%          
    China Telecom Call Warrants   3.22%   8.55x     5.82x     24.28%          
    Jiangxi Copper Call Warrants 10.43%  12.11x     5.98x     34.35%          
                                                                              
    It should be noted that the above values should not be compared to        
    similar information provided by other issuers of derivative warrants      
    listed on the Stock Exchange because different issuers adopt different    
    valuation models.                                                         
                                                                              
    Application will be made to the Listing Committee of the Stock Exchange   
    for the listing of, and permission to deal in, the Warrants on the        
    Stock Exchange and the issue of the Warrants is conditional upon          
    listing being granted.                                                    
                                                                              
    As at the date of this announcement, the Guarantor's long term credit     
    rating is Standard and Poor's, AA-, Fitch IBCA, A+, and Moody's           
    Investors Services, Aa2.                                                  
                                                                              
    The Warrants will be issued subject to the terms and conditions of the    
    Issuer's base listing document dated 10 June 2004 (the "Base Listing      
    Document") as supplemented by the Supplemental Disclosure Document        
    dated 23 September 2004 (the "Supplemental Disclosure Document") and      
    the relevant supplemental listing document (the "Supplemental Listing     
    Document") to be dated on or about 14 March 2005.