09:14     HUALING<00382> - Unusual price & volume movements                   

    The Stock Exchange has received a message from Hualing Holdings Limited   
    which is reproduced as follows:-                                          
                                                                              
    "The following statement is made at the request of The Stock Exchange of  
    Hong Kong Limited ("Stock Exchange").                                     
                                                                              
    The directors ("Directors") of the Company have noted the decrease in     
    share price and increase in trading volume of the shares of the Company on
    20 May 2005 and wish to state that apart from the proposed Rights Issue of
    the Company as set out in its announcement dated 19 May 2005 and the      
    Continuing Connected Transactions as set out in its announcement dated 27 
    April 2005 and its circular dated 6 May 2005 (subject to Shareholders'    
    approval at an extraordinary general meeting to be held on 23 May 2005),  
    they are not aware of any reasons for such decrease in share price and    
    increase in trading volume.                                               
                                                                              
    The Directors also confirm that there are no negotiations or agreements   
    relating to intended acquisitions or realisations which are discloseable  
    under rule 13.23 of the Rules ("Listing Rules") Governing the Listing of  
    Securities on the Stock Exchange, neither are the Directors aware of any  
    matter discloseable under the general obligation imposed by rule 13.09 of 
    the Listing Rules, which is or may be of a price-sensitive nature.        
                                                                              
    Made by the order of the board of Hualing Holdings Limited, the Directors 
    of which individually and jointly accept responsibility for the accuracy  
    of the above statement.                                                   
                                                                              
    As at the date of this announcement, the board of Directors comprises     
    three executive Directors, namely, Mr. Fang Hongbo, Mr. Liu Liang and Mr. 
    Zhang Quan; four non-executive Directors, namely, Mr. Li Jianwei, Ms. Yuan
    Liqun, Mr. Zhang Xin Hua and Mr. Chen Yu Hang; and three independent non- 
    executive Directors, namely, Mr. Chan Wai Dune, Mr. Lam Ming Yung and Ms. 
    Chen Chunhua.                                                             
                                                                              
    For and on behalf of                                                      
    Hualing Holdings Limited                                                  
                                                                              
                                                                              
    Arthur Hang                                                               
    Company Secretary                                                         
                                                                              
    20 May 2005"