11:24     HK CONSTRUCTION<00190> - Announcement (7)                           

    the emerging wind power market in the PRC, as promoted                    
    by the PRC government. According to reports and                           
    official documents from the PRC Government, the PRC                       
    has one of the world's richest wind energy reserves.                      
    However, less than 0.1% of the national power output                      
    is generated by wind in 2003. In order to promote the                     
    development of wind power, the PRC's customs office                       
    has already abolished tariffs on large wind turbine                       
    imports. Other incentive policies such as reduction                       
    of value-added tax by 50%, guarantee of wind power                        
    electricity tariffs, low interest rate on borrowings                      
    and guaranteed profits during the bank loan repayment                     
    period have been implemented in the PRC. The PRC                          
    Government aims to have 2% of all electricity                             
    generated by new or renewable energy resources by                         
    2015.                                                                     
                                                                              
    On 28 February 2005, the National People's Congress                       
    Standing Committee passed the Law on Renewable Energy                     
    which will come into effect on 1 January 2006. The                        
    new law encourages the use of renewable energy and                        
    upholds renewable energy as a priority in China's                         
    energy strategy. Under the new law, power grid                            
    operators must purchase the full amount of resources                      
    from registered renewable energy producers. The new                       
    law also offers financial incentives, such as a                           
    national fund to foster renewable energy development,                     
    and discounted lending and tax preferences for                            
    renewable energy projects. As such, the Board                             
    believes that the current PRC government policy                           
    offers favourable environment to foreign investment                       
    in wind power in the PRC, and hence is beneficial to                      
    the Wind Power Acquisition ultimately.                                    
                                                                              
    By investing in the wind power supply market in the                       
    PRC, the Group seeks to diversify its investment                          
    portfolio to address the Group's over-concentration                       
    of investment in property and construction sectors.                       
    The Board is confident that the investment in the                         
    Project Companies, with the various preferential                          
    treatments offered by the PRC government, will                            
    provide the Group with a favourable return. The                           
    Directors consider that the terms of the Wind Power                       
    Acquisition are fair and reasonable and are in the                        
    interest of the Company and Shareholders as a whole.                      
                                                                              
    4.      GENERAL                                                           
    The Wind Power Acquisition constitutes a discloseable                     
    transaction for the Company under Rule 14.06 of the                       
    Listing Rules. A circular containing, among others,                       
    further particulars of the Wind Power Acquisition                         
    will be despatched to the Shareholders as soon as                         
    practicable in accordance with the requirements of                        
    the Listing Rules.                                                        
                                                                              
    5.      DEFINITIONS                                                       
    "APC"   APC Wind Power Pte Ltd (#), a                                     
    70% owned subsidiary of Asia Power Corporation                            
    Limited which is incorporated in the Republic of                          
    Singapore and whose securities are listed on the                          
    Singapore Exchange Securities Trading Limited                             
                                                                              
    "Board" the board of Directors                                            
                                                                              
    "Company"       Hong Kong Construction (Holdings)                         
    Limited, a company incorporated in Hong Kong with                         
    limited liability, the shares of which are listed on                      
    the main board of the Stock Exchange                                      
                                                                              
    "connected person(s)"   in relation to a company                          
    listed on the Stock Exchange, has the meaning ascribed                    
    thereto in the Listing Rules