09:58     ASIA FINANCIAL<00662> - Announcement (3)                            

    The principal activity of the Company is investment holding.              
    The principal activities of its principal subsidiaries comprise           
    the provision of banking, insurance and investment services.              
                                                                              
    The principal activity of the Purchaser is investment holding.            
    The Purchaser is a company ultimately owned by Mr. Tsao, a                
    Non-executive Director of the Company, and accordingly, a                 
    connected person of the Company and therefore the transaction             
    contemplated under the Agreement constitutes a connected                  
    transaction for the Company under the Listing Rules. Pursuant             
    to the Listing Rules, as each of the applicable Percentage Ratios         
    is less than 2.5%, the Disposal is only subject to announcement           
    and reporting requirements and does not require the approval              
    of the independent shareholders of the Company. Details of the            
    Disposal is accordingly disclosed in this Announcement and will           
    be disclosed in the Company's 2005 annual report pursuant to              
    Rule 14A.45 of the Listing Rules.                                         
                                                                              
    TERMS USED IN THIS ANNOUNCEMENT                                           
                                                                              
    "Agreement"     the sale and purchase agreement entered into              
    between the Seller and the Purchaser in relation to the disposal          
    of the Shares on 22nd April 2005                                          
                                                                              
    "Company"       Asia Financial Holdings Limited, a company                
    incorporated in Bermuda, the shares of which are listed on the            
    Stock Exchange                                                            
                                                                              
    "Directors"     the board of directors of the Company                     
                                                                              
    "Disposal"      the disposal of the Shares by the Seller to the           
    Purchaser at a consideration of US$1,235,941 (approximately               
    HK$9,640,340)                                                             
                                                                              
    "Great Asia"    Great Asia Industrial Development Co. Ltd., a             
    company incorporated in Bermuda with limited liability                    
                                                                              
    "Group" the Company and its subsidiaries                                  
                                                                              
    "HK$"   Hong Kong dollars, the lawful currency of Hong Kong               
                                                                              
    "Listing Rules" the Rules Governing the Listing of Securities             
    on the Stock Exchange                                                     
                                                                              
    "Mr. Tsao"      Tan Sri Frank Wen King Tsao, a Non-executive              
    Director of the Company                                                   
                                                                              
    "Percentage Ratios"     has the meaning as set out in Rule                
    14A.10(10) of the Listing Rules                                           
                                                                              
    "PRC"   the People's Republic of China                                    
                                                                              
    "Purchaser"     IMC Properties Incorporated, a company                    
    incorporated in Liberia with limited liability                            
                                                                              
    "Seller"        AFH Investments (BVI) Limited, a company incorporated     
    in British Virgin Islands with limited liability                          
                                                                              
    "Shares"        the 1,000,000 ordinary shares of US$1 each issued and     
    paid-up in the capital of Great Asia and registered in the name           
    of the Seller, representing 5% of the entire issued capital of            
    Great Asia                                                                
                                                                              
    "Stock Exchange"        The Stock Exchange of Hong Kong Limited           
                                                                              
    "US$"   United States dollars, the lawful currency of the United          
    States of America                                                         
                                                                              
    (For reference only, the exchange rate used in this Announcement          
    is US$1.0