09:28     QINGLING MOTORS<01122>-Announcement&Resumption of Trading(6)        

    ODD LOTS                                                                  
                                                                              
    Qualifying Shareholders should note that acceptance of the Partial        
    Offer may result in their holding odd lots of the H Shares.               
    Accordingly, it is intended that a designated broker will be              
    appointed by the Offeror, who will match sales and purchases of           
    odd lot holdings of H Shares in the market for a limited period           
    following the completion of the Partial Offer.                            
                                                                              
    INDEPENDENT BOARD COMMITTEE AND DESPATCH OF OFFER DOCUMENT                
                                                                              
    An Independent Board Committee has been established by the Company,       
    in accordance with the Takeovers Code, to advise the Qualifying           
    Shareholders in respect of the Partial Offer. An independent              
    financial adviser Hercules Capital Limited has also been appointed        
    by the Company to advise the Independent Board Committee in respect       
    of the Partial Offer.                                                     
                                                                              
    Pursuant to the Takeovers Code, within 21 days after the date of          
    this announcement or such later date as the Executive may approve,        
    the Offeror is required to despatch an offer document in relation         
    to the Partial Offer. Within 14 days after the posting of such offer      
    document or such later date as the Executive may approve, the             
    Company is required to despatch a response document in relation           
    to the Partial Offer. This will contain, amongst other things, the        
    views of the Independent Board Committee on the Partial Offer and         
    the advice of the independent financial adviser appointed to              
    advise the Independent Board Committee.                                   
                                                                              
    CONSENTS FROM THE EXECUTIVE                                               
                                                                              
    The Executive has granted the following consents to the Offeror:          
                                                                              
    i.   consent in accordance with Rule 28.1 of the Takeovers Code           
    to make the Partial Offer;                                                
                                                                              
    ii.   to make such offer for up to 324,960,400 H Shares rather than       
    for a precise number of shares (waiver from Rule 28.7 of the              
    Takeovers Code); and                                                      
                                                                              
    iii.   for the Offeror and parties acting in concert with it to           
    acquire voting rights of the Company during the 12 month period           
    immediately following the end of the Partial Offer in order to            
    achieve a holding of approximately 20% of the entire voting rights        
    of the Company.                                                           
                                                                              
    The Executive has confirmed that the Offeror or parties acting in         
    concert with it will not be obliged to make a mandatory offer             
    pursuant to Rule 26.1 of the Takeovers Code as a result of the            
    Partial Offer.                                                            
                                                                              
    SUSPENSION AND RESUMPTION OF TRADING IN THE SHARES OF THE COMPANY         
                                                                              
    The Company has noted the recent decrease in the price of the H           
    Shares and the recent fluctuation in the trading volume of the H          
    Shares and wishes to state that save for the information as               
    disclosed in this announcement, the Board is not aware of any             
    reasons for such decrease in the price of the H Shares and the            
    fluctuation in the trading volume of the H Shares.                        
                                                                              
    The Company also wishes to announce that save for the information         
    disclosed in this announcement, there are no negotiations or              
    agreements relating to intended acquisitions or realizations              
    which are discloseable under Rule 13.23  of the Listing Rules,            
    neither is the Board aware of any matter discloseable under the           
    general obligation imposed by Rules 13.09 of the Listing Rules,           
    which is or may be of a price-sensitive nature.                           
                                                                              
    Trading in the shares of the Company on the Stock Exchange was            
    suspended, at the request of the Company with effect from 9:30 a.m.       
    on Tuesday 17 May 2005. Application has been made by the Company          
    for the resumption of trading in its H shares on the Stock Exchange       
    with effect from 9:30 a.m. on Monday 23 May 2005.                         
                                                                              
    DEFINITIONS                                                               
                                                                              
    In this announcement, the following expressions have the meanings         
    set out below unless the context requires otherwise:                      
                                                                              
    ``Assured Entitlement(s)''                                                
    the assured entitlement(s) of Qualifying Shareholders to sell to          
    the Offeror 30.45% of the H Shares registered in its or their name(s)     
    on the Record Date under the Partial Offer                                
                                                                              
    ``Board''                                                                 
    board of Directors