09:40     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)                                                         
                                                                              
    FURTHER 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 further extended from 6 May 2005 to not later than 13 May      
    2005.                                                                     
                                                                              
    Reference is made to the announcement of the Company dated 15 March 2005  
    (the "Announcement") in relation to the extension of time for the         
    despatch of the Circular. Unless otherwise defined, capitalised terms     
    used herein have the meanings ascribed to them in the Announcement.       
                                                                              
    As disclosed in the Announcement, the Company has made an application to  
    the Stock Exchange for a waiver from strict compliance with Rules 14.38   
    and 14.48 of the Listing Rules and an extension of time for the despatch  
    of the Circular to not later than 6 May 2005.                             
                                                                              
    The accountants' report of the Group and the unaudited pro forma          
    financial information of the Group to be included in the Circular will    
    contain and be based on the audited consolidated accounts of the Group    
    for the year ended 31 December 2004 which has just been finalised on 27   
    April 2005. Given that the accountants of the Group is now reviewing the  
    relevant information to be included in the accountants' report and the    
    report on the unaudited pro forma financial information (the "Reports")   
    via their established internal procedures, additional time is required    
    to finalise the Reports. As such, an application has been made by the     
    Company to the Stock Exchange for a further extension of time to          
    despatch the Circular to not later than 13 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, 5 May 2005