10:08     CHINA ASSETS<00170> - Announcement                                  

    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 of the contents of this announcement.                        
                                                                              
    CHINA ASSETS (HOLDINGS) LIMITED                                           
    (Incorporated in Hong Kong with limited liability)                        
    (Stock Code: 170)                                                         
                                                                              
    EXTENSION OF TIME FOR DESPATCH OF CIRCULAR                                
    REGARDING A VERY SUBSTANTIAL DISPOSAL                                     
                                                                              
    The Company has applied to the Stock Exchange for the date of despatch    
    of the circular containing, among other things, details of the possible   
    disposal of KongZhong Shares as announced by the Company on 23 February   
    2005 to be extended to not later than 6 May 2005.                         
                                                                              
    On 23 February 2005, the Company made a press announcement (the           
    "Announcement") regarding the possible disposal of KongZhong Shares.      
    Unless otherwise defined, capitalised terms used herein have the          
    meanings ascribed to them in the Announcement.                            
                                                                              
    Pursuant to Rule 14.38 and Rule 14.48 of the Listing Rules, a circular    
    (the "Circular") containing, among other things, details of the possible  
    disposal of KongZhong Shares, is required to be despatched by the         
    Company to the Shareholders within 21 days after the publication of the   
    Announcement.                                                             
                                                                              
    It is anticipated that additional time is required to finalise the        
    financial information on the Group to be included in the Circular, in     
    particular the accountants' report on the Group which has to be related   
    to a financial period ended 6 months or less from the date of the         
    Circular and the pro forma financial information on the remaining Group   
    after the completion of the possible disposal of KongZhong Shares. The    
    Company is now preparing its 2004 annual report and the financial         
    statements for the year ended 31 December 2004 which is expected to be    
    despatched in late April 2005. As the accountants' report on the Group    
    to be included in the Circular will contain financial information of the  
    Group for the year ended 31 December 2004 and additional time is          
    required to finalise such report and the above financial information to   
    be included in the Circular, the Company has applied to the Stock         
    Exchange for an extension of the deadline for despatching the Circular    
    to not later than 6 May 2005.                                             
                                                                              
    The Directors as at the date of this announcement are Mr Lao Yuan Yi and  
    Mr Wang Jun Yan as executive Directors, Mr Jiang Wei, Mr Yeung Wai Kin    
    and Mr Zhao Yu Qiao as non-executive Directors, and Mr Peter Duncan Neil  
    Robertson, Mr Fan Jia Yan and Mr Wu Ming Yu as independent non-executive  
    Directors.                                                                
                                                                              
    By order of the board of directors of                                     
    China Assets (Holdings) Limited                                           
    Lao Yuan Yi                                                               
    Chairman                                                                  
    Hong Kong, 15 March 2005