09:53     CHINESE EST H<00127>-Announcement & Resumption of Trading-4         

    (ii) if there shall have occurred any change, or any                      
    development involving a prospective change, in national or                
    international monetary, financial, political or economic                  
    conditions or currency exchange rates or foreign exchange                 
    controls which would in Deutsche Bank's view be likely to                 
    prejudice materially the success of the Bonds Issue or the                
    distribution of the Bonds or dealings in the Bonds in the                 
    secondary market;                                                         
                                                                              
    (iii) if there shall have occurred an outbreak or escalation              
    of hostilities or act of terrorism which would in Deutsche                
    Bank's view be likely to prejudice materially the success                 
    of the Bonds Issue or the distribution of the Bonds or                    
    dealings in the Bonds in the secondary market;                            
                                                                              
    (iv) if on or after the date of the Subscription Agreement                
    there shall have occurred either of the following: (i) a                  
    suspension or material limitation of trading in securities                
    generally on the New York Stock Exchange, the Nasdaq Stock                
    Market, Inc., the London Stock Exchange plc or the Stock                  
    Exchange; or (ii) a suspension in trading in the Company's                
    securities on the Stock Exchange, which would in Deutsche                 
    Bank's view be likely to prejudice materially the success                 
    of the Bonds Issue or the distribution of the Bonds or                    
    dealings in the Bonds in the secondary market.                            
                                                                              
    Subject to the foregoing, the Subscription Agreement is                   
    expected to be completed on the Closing Date.  If the Option              
    is exercised, the issue of the Optional Bonds will complete               
    on the Option Closing Date.  The Firm Bonds and the Optional              
    Bonds are expected to be issued on the Closing Date and the               
    Option Closing Date respectively.                                         
                                                                              
    The initial conversion price at HK$7.37 per Share                         
    represents a premium of approximately 15% over the VWAP of                
    the Shares quoted on the Stock Exchange on 9 March 2005.                  
    It also represents a premium of approximately 10.83% over                 
    the closing price of each Share on 9 March 2005, and                      
    approximately 23.04% over the average of the closing prices               
    of each Share for a period of 10 consecutive Trading Days                 
    immediately prior to 9 March 2005.                                        
                                                                              
    The Shares to be issued upon conversion of the Bonds will                 
    be issued and allotted by the Company pursuant to the                     
    general mandate granted to the Directors at the annual                    
    general meeting held on 18 May 2004.                                      
                                                                              
    PRINCIPAL TERMS OF THE BONDS                                              
                                                                              
    The principal terms of the Bonds, which will be constituted               
    by a trust deed (the Trust Deed) to be entered into between               
    the Company and a trustee (to be appointed) (the Trustee)                 
    are summarised as follows:                                                
                                                                              
    Company                                                                   
                                                                              
    Chinese Estates Holdings Limited, a company incorporated                  
    with limited liability in Bermuda, the shares of which are                
    listed on the Stock Exchange.                                             
                                                                              
    Principal Amount                                                          
                                                                              
    The aggregate principal amount of the Bonds (excluding the                
    Optional Bonds) will be HK$1,500,000,000, or                              
    HK$2,000,000,000 if all the Optional Bonds are issued.                    
                                                                              
    Issue Price                                                               
                                                                              
    100% of the principal amount of the Bonds.                                
                                                                              
    Interest                                                                  
                                                                              
    The Bonds bear zero interest.                                             
                                                                              
    Conversion Period                                                         
                                                                              
    Bondholder(s) have the right to convert their Bonds into                  
    Shares at any time during the Conversion Period.                          
                                                                              
    Conversion Price                                                          
                                                                              
    The Bonds will be convertible into Shares at an initial                   
    conversion price of HK$7.37 per Share.  The Conversion                    
    Price will be subject to adjustment for, among other things,              
    subdivision or consolidation of Shares, the making of a free