09:40     HK CHINESE LTD<00655> - Announcement (4)                            

    that it is commercially beneficial to transfer to                         
    Auric Pacific its interests in HKCL Pte which shall                       
    acquire the title to the Property pursuant to the                         
    Property Acquisition Agreement and which currently                        
    intends to redevelop the Property into new                                
    residential units for rental or sale purposes,                            
    although no concrete plans have been made in this                         
    regard. The proceeds from the transfer of the entire                      
    issued share capital of HKCL Pte are intended to be                       
    used as general working capital of HKC only and are                       
    not intended for any other use.                                           
                                                                              
    The Directors, including the independent                                  
    non-executive Directors, believe that the terms of                        
    the Sale and Purchase Agreement are fair and                              
    reasonable and in the interests of the shareholders                       
    of HKC as a whole. The Purchase Price will be funded                      
    from internal resources of the Auric Pacific Group.                       
                                                                              
    INFORMATION ON HKC AND AURIC PACIFIC AND THEIR                            
    RESPECTIVE SUBSIDIARIES                                                   
    The principal business activity of HKC is investment                      
    holding. Its subsidiaries (including HKCL                                 
    Investments and HKCL Pte) are principally engaged in                      
    investment holding, property investment and                               
    development, fund management, underwriting,                               
    corporate finance, securities broking, securities                         
    investment, treasury investment, money lending,                           
    banking and other related financial services.                             
                                                                              
    The principal business activity of Auric Pacific is                       
    investment holding. The principal business                                
    activities of its subsidiaries are food manufacturing,                    
    wholesale distribution of food and allied fast-moving                     
    consumer goods and investment holding.                                    
                                                                              
    The principal business activities of Auric Property                       
    are investment holding and property investment.                           
                                                                              
    DEFINITIONS                                                               
    In this announcement, the following terms and                             
    expressions (unless the context otherwise requires)                       
    shall have the following meanings:                                        
                                                                              
    "Auric Pacific" Auric Pacific Group Limited, a                            
    company incorporated in Singapore with limited                            
    liability whose shares are listed on the Singapore                        
    Exchange Securities Trading Limited and in which LCR                      
    is indirectly interested as to approximately 51.2 per                     
    cent.                                                                     
                                                                              
    "Auric Pacific Group"   Auric Pacific and its                             
    subsidiaries                                                              
                                                                              
    "Auric Property"        Auric Property Pte. Ltd., a company               
    incorporated in Singapore with limited liability and                      
    a wholly-owned subsidiary of Auric Pacific                                
                                                                              
    "Completion"    the completion of the Sale and Purchase                   
    Agreement                                                                 
                                                                              
    "connected person"      shall have the meaning set out in                 
    Rule 14A.11 of the Listing Rules                                          
                                                                              
    "Director(s)"   the director(s) of HKC                                    
                                                                              
    "HKC"   Hongkong Chinese Limited (*), a                                   
    company incorporated in Bermuda with limited                              
    liability, the shares of which are listed on the Stock                    
    Exchange and whose shares are owned as to                                 
    approximately 72.26 per cent. by LCR                                      
                                                                              
    "HKCL Investments"      HKCL Investments Limited, a