LDC London Asia

RNS Number:2201X
London Asia Capital PLC
25 May 2007


25 May 2007


                            London Asia Capital plc


                         ("London Asia" or "the Group")


                Acquisition of Insurance and Auction Businesses


London Asia Ltd ("LAL"), the Hong Kong incorporated financial services business
in which London Asia announced a 40% stake earlier this week, has made two
investments in Chinese financial services businesses for a total investment of
#1.52 million.


Insurance Brokerage

LAL has acquired a 51% stake in Jin Lian Ann Insurance Broker ("JLAI"),
headquartered in Beijing, China. It is approved by China's Insurance Regulatory
Commission to operate as a nation-wide, consolidated non-banking financial
institution providing risk management consultation services and insurance
brokerage services to various industries, companies and projects in China.


The Company provides a nation-wide insurance brokerage service through more than
30 branches across China. Industries covered include highways, bridges,
construction, domestic airports, military organizations, large-scale
manufacturing, power plants and shipbuilding. JLAI provides a range of services
to corporate clients, including Jiangsu Power Grid, Guangxi Power Grid, Xi'an
Railway Bureau, FRESCO, Liaoning Bohai Shipyard, Hanzhong Airline, The
Air-to-Air Missile Research Institute of China, and Huaxia Bank Beijing Branch.


Auction House

LAL has also acquired a 51% stake in Zhong Nan Auction House ("ZNAH"), based in
Guangdong Province, China. ZNAH is approved by the municipal government of
Guangdong and the Industrial & Commercial Administration Bureau of Guangdong
Province to operate as a non-banking financial institution, providing auction
services in China. The company has expertise in handling auctions for distressed
properties and state-owned equities.


The Company is a member of the Chinese Association of Auctioneers, approved by
the Guangdong municipal government for the auction of confiscated items and
authorized by the Guangdong Real Estate Bureau to perform property auctions. Its
business includes the auction of items confiscated by the Guangdong municipal
government, distressed property and items with no identifiable ownership.


Simon Littlewood, London Asia Chief Executive, said: "Both acquisitions bring
with them management teams with expertise in their sector and both businesses
have the potential to be expanded going forward through bolt-on acquisitions.
The acquisitions open up new opportunities for the Group, particularly in the
distressed asset sector where increasing opportunities could arise should the
Chinese Government's attempts to rein-in credit and slow down growth be
successful.


"These two investments demonstrate the strategy outlined earlier this week when
London Asia acquired its stake in LAL. The investment in LAL provides London
Asia with the opportunity to expand much more rapidly than it could using its
own cash resources alone, with LAL making these acquisitions off its own balance
sheet."


For further information please visit www.londonasia.com or contact:


Simon Littlewood             John West/Andrew Dunn          Jonathan Wright
London Asia Capital plc      Tavistock Communications       Seymour Pierce
Tel: 020 7231 0282           Tel: 020 7920 3150             Tel: 020 7107 8000



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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