10:13     LCH BANK<01111> & LIU CHONG HING<00194>-Joint Announcement-2        

    company, namely LCH Bank, is not regarded as a "connected                 
    transaction" for LCH Investment under Chapter 14A of the Listing          
    Rules.                                                                    
                                                                              
    Circulars containing details of the Transaction will be                   
    despatched to the respective shareholders of LCH Bank and LCH             
    Investment within 21 days from the date of publication of this            
    announcement. An EGM of LCH Bank is currently expected to be              
    held on 26 April 2005 immediately after the adjournment of its            
    AGM, at which LCH Investment and its Associates will abstain              
    from voting on the resolution regarding the Transaction. Votes            
    of LCH Bank's shareholders in relation to the Transaction will            
    be taken by way of a poll.                                                
                                                                              
    I.      THE SALE AND PURCHASE AGREEMENT                                   
                                                                              
    Date:   3 March 2005                                                      
                                                                              
    Parties:        (a)     Vendor - LCH Investment                           
                                                                              
                    (b)     Purchaser - LCH Bank                              
                                                                              
    Pursuant and subject to the Sale and Purchase Agreement, LCH              
    Investment agreed to sell, and LCH Bank agreed to purchase,               
    50,000,000 shares of HK$1.00 each in the share capital of LCH             
    Insurance, representing the entire issued and fully paid-up               
    share capital of LCH Insurance. As at the date of this                    
    announcement, LCH Insurance is a wholly-owned subsidiary of LCH           
    Investment. The consideration for the Transaction is HK$212               
    million in cash, which will be funded from the internal resources         
    of LCH Bank and payable in full at Completion. Upon Completion,           
    LCH Insurance will become a wholly-owned subsidiary of LCH Bank.          
                                                                              
    Conditions precedent:                                                     
                                                                              
    Completion of the Sale and Purchase Agreement is conditional              
    upon the following:                                                       
                                                                              
    (a)     the conduct of a due diligence investigation covering, among      
    other things, the business, affairs, operations, assets,                  
    financial condition, prospects and records of LCH Insurance by            
    LCH Bank, and the results of such due diligence investigation             
    being satisfactory to LCH Bank at its sole and absolute                   
    discretion;                                                               
                                                                              
    (b)     satisfaction of paragraph (b) of Section 13B(2) of the            
    Insurance Companies Ordinance (as in force as at the date of              
    the Sale and Purchase Agreement) or such other form of prior              
    approval (if any) as may from time to time be required to be              
    obtained from the Insurance Authority to effect Completion and            
    if any of such approval shall be subject to conditions, on                
    conditions acceptable to LCH Bank;                                        
                                                                              
    (c)     all consents, approvals, permits, authorisations or               
    clearances (as the case may be) that LCH Investment reasonably            
    considers necessary pursuant to applicable laws, regulations              
    or rules (including but not limited to the Listing Rules and              
    the Insurance Companies Ordinance) for its execution,                     
    implementation and completion of the Sale and Purchase Agreement,         
    having been obtained, and all such consents, approvals, permits,          
    authorisations not having been revoked or withdrawn at any time           
    up to and including the Conditions Fulfilment Date;                       
                                                                              
    (d)     the warranties given by LCH Investment in favour of LCH Bank      
    under the Sale and Purchase Agreement in relation to LCH                  
    Insurance remaining true and accurate in all aspects and not              
    misleading in any aspects on the Conditions Fulfilment Date;              
    and                                                                       
                                                                              
    (e)     all consents, approvals, permits and authorisations