09:36     CHINA CREDIT<00185> - Announcement (1)                              

    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 part of the contents                       
    of this announcement.                                                     
                                                                              
    CHINA CREDIT HOLDINGS LIMITED                                             
    (Incorporated in Hong Kong with limited liability)                        
    (Stock Code: 185)                                                         
                                                                              
    DISCLOSEABLE TRANSACTION                                                  
                                                                              
    On December 6, 2004, the Directors announced that CXP,                    
    a subsidiary of the Company, entered into the Heads                       
    of Agreement with Startech.                                               
                                                                              
    The Directors announce that on May 13, 2005, CXP                          
    entered into the New Heads of Agreement which                             
    superseded the Heads of Agreement and pursuant to                         
    which Startech shall purchase and CXP shall procure                       
    the sale of Sale Shares. The Transaction constitutes                      
    a discloseable transaction for the Company under                          
    Chapter 14 of the Listing Rules. A circular containing                    
    information on the Transaction will be despatched to                      
    the shareholders of the Company as soon as possible.                      
                                                                              
    Shareholders and investors are reminded to exercise                       
    caution when dealing in the securities of the Company.                    
                                                                              
    Introduction                                                              
    Reference is made to the announcement dated December                      
    6, 2004 made by China Credit Holdings Limited (the                        
    "Company") in relation to the Heads of Agreement with                     
    Startech Electronic Ltd, a company incorporated in                        
    Singapore with its securities listed on the Singapore                     
    Exchange Securities Trading Limited ("Startech").                         
    Unless otherwise specified, terms and expressions                         
    used in this Announcement shall have the same meaning                     
    as those used in the announcement of the Company dated                    
    December 6, 2004.                                                         
                                                                              
    On December 6, 2004, CXP, a subsidiary of the Company,                    
    entered into the Heads of Agreement with Startech                         
    pursuant to which (1) CXP has agreed to issue or                          
    procure to deliver 100,000,000 shares of CXP                              
    (representing approximately 8.8% of the existing                          
    issued share capital and 8.1% of the enlarged issued                      
    share capital of CXP, as the case may be) for S$5                         
    million to Startech in exchange for the allotment and                     
    issue of 50,000,000 shares of Startech (representing                      
    approximately 19.9% of the enlarged issued share                          
    capital of Startech), (2) CXP has agreed to subscribe                     
    for a S$6 million convertible bond (the Tranche 1                         
    Bond), (3) CXP has the rights to subscribe for up to                      
    S$9 million in additional convertible bonds (the                          
    Tranche 2 Bond). The Tranche 1 Bond and Tranche 2 Bond                    
    when converted will result in the issuance of free                        
    warrants which carrying a right to exercise into                          
    60,000,000 and up to 90,000,000 new Startech shares,                      
    respectively.                                                             
                                                                              
    The Company confirms that to the best of the                              
    Directors' knowledge, information and belief having                       
    made all reasonable enquiry, Startech is independent                      
    of and not connected with the Company and its                             
    connected persons (as defined in the Listing Rules)                       
    and is not a connected person of the Company and no                       
    connected person of the Company has any interest in                       
    Startech.