LONDON ASIA CAPITAL PLC ('London Asia' or the 'Company')
Record Profits From Chinese Investment

We are delighted to announce that Beijing Success Technology Co Ltd ('Success'),
the Chinese financial software company in which London Asia has a 25% stake, has
reported audited profits after tax for the six months ended 30th June 2003 of
600,000, giving a profit after tax for the twelve months ended 30th June 2003
of over 1.2m. These results show considerable growth in both turnover and
profits as a result of Success's expansion of its sales network into cities
across China.
When the Company took its stake in Success in November 2002, it was granted an
option to increase its stake in Success to 51%, on payment of 2.36m, with the
consideration payable one third in cash and two thirds in London Asia shares at
a price of 10p per share. The original investment in Success totalled 163,000,
of which half was paid in London Asia shares, so that the total investment post
exercise of option will amount to approximately 2.5m, valuing the Success
business at only 4.95m, a multiple of only 3.8 times the profits to June 2003.

The Company has hired Cindy Lam as project manager in it's London office to
assist in the exercise of the Success option and the review of investment
opportunities in China. Ms Lam is originally from Hong Kong where she worked
for J.P Morgan Securities and JP Morgan Fleming Asset Management as Project
Manager, her responsibilities including project managing the implementation of
new IT systems. She has previously worked for EDS/Nedcor, Banque National de
Paris and the Hong Kong Government. Ms Lam has a degree in Computer Science, an
MBA, and speaks English, French, Mandarin and Cantonese.

Said Simon Littlewood, Chief Executive of London Asia: 'Success has
continued to grow revenue and profits, demonstrating that with the right
management team and product, it is possible to tap into the vast potential of
the Chinese market. Success is an example of the profitable, high growth
companies that the Company seeks to work with. We are continuing our due
diligence on a number of other potential investments in China.

Simon Littlewood, chief executive of London Asia argues that many local entrepreneurs are making fortunes as software and high-tech companies double turnover year after year and still fail to meet surging demand. Medium sized private companies in China are maintaining annual profits growth of 30 to 50 percent. London Asia can buy long term stakes at price earnings multiples of 3 to 5.

Littlewood claims there are now 16 million day traders in the People’s Republic.

London Asia's list of investments:

Beijing Success - financial analysis tools
Temima China Investment Banking Group - corporate finance and investment activities within China
Beijing Biao Qi Culture Spreading Ltd - publishing, media and film
Beijing Biao Qi Advertisement Ltd - advertising.
EuropAsia Education plc - UK AIM listed investor in and operator of education businesses in Europe and Asia
Metasource - NASDAQ BB listed
MeanFiddler - UK AIM listed
Prestige Publishing - UK AIM listed
Intelliplus - UK AIM listed
ASAP International - UK OFEX listed
Unlisted Companies
Sportalasia
Puca

London Asia has been appointed corporate finance adviser to Canton Venture
Capital Co Ltd (CVCC), a leading Chinese venture capital group. Under the
agreement, London Asia will assist CVCC in listing its investments on stock
markets outside China and finding Western investors or buyers.

Based in Guangzhou, CVCC has registered capital of RMB700 million (#15
million) and has to date made over fifty investments in the Guangzhou
region. In 2003 it was ranked in the top seven Chinese venture capitalists,
and its General Manager, Mr Wang, ranked in the top seven Chinese venture
capitalists.

Mr Hongmao Wang, General Manager of CVCC, said: There is considerable
demand from the companies we have invested in to find Western investors and
business as well as technology partners, and to gain a stock market listing
outside China. We have worked with the London Asia team successfully in the
past, and have already begun work with London Asia on the first potential
listing of one of our portfolio companies.

In order to service the above agreement and tap into other opportunities in
the region, London Asia has opened a South China Regional Office in
Guangzhou, headed by Mr Hou Chun Chang, Member, National Peoples
Consultative Committee (NPCC).

Mr Hou Chun Chang, said: I have worked successfully with the London Asia
senior management team in a few ventures including the Singapore listing of
Devotion. I look forward to developing London Asias presence in the South
China region, which has the largest number of privately-owned businesses in
China.

Simon Littlewood, London Asia Chief Executive, said: This is in line with
our strategy of expanding into new regions in China via working with strong
regional partners. This agreement gives us access to a number of investment
and fee generating opportunities in a region which is one of the most
developed in China, and the appointment of Mr Chang to head our new office
there brings in someone with the necessary experience and contacts, both
within industry and Government, to make the most of the opportunities.



Simon Littlewood
London Asia Capital plc
www.londonasia.com

From UK Investor:

Aim-listed London Asia Capital saw another jump in its price after the company, which was involved in the refinancing of Ofex, said it has raised 3.3 million pounds before expenses through an institutional placing by Seymour Pierce of 30 million ordinary shares at 11p each. The group said it is in negotiations to obtain an investment banking license in China and the monies raised via the placing will be used to invest in a new company which has been set up to apply for the license. The shares added 0.5p to 11.5p.

Geoff Foster, Daily Mail
17 November 2004

"Investment company London Asia Capital improved p to 11p following a 3.3m placing of 30m shares at 11p a share with institutional investors including AA-rated fund manager Michael Barnard."

info about Michael Barnard can be found here http://www.marlboroughfunds.com/ManagerProfile_MBarnard.htm

From Marlborough UK Equity Income Fund's website, re Michael Barnard 4 star equity manager:


Michael Barnard was born in Forres, Scotland in 1950. He developed an interest in the stock market at the age of sixteen. This interest quickly grew into a hobby and then an addiction. Following graduation in 1971 from Aberdeen University with an MA Degree in economics, Michael entered the stockbroking profession. He ascribes his success to the love and dedication to his work, though he has never looked upon it as work.

In 1988, Michael set up his own company, M D Barnard & Co Ltd, a stockbroking and investment management business. His management of the UK Equity Growth Fund began in 1995 and he used his vast knowledge to give the fund its consistent high performance. And this consistency looks set to stay as Michael expands his team as the funds popularity and size grow. In particular, he looks to analyst Simon Like for company research. Simon is from the same school of thought as Michael, having entered the industry as a result of a passionate interest in the stock market.

Simon spends much of his time visiting companies in which either Marlborough has an investment or is contemplating one. He maintains regular contact with these companies in order to accumulate an in depth knowledge and perception of them. He also makes a point of monitoring the views of other investors towards the shares of investments held as these views can have a major bearing on share price performance. Both Simon and Michael adopt a similar strategy towards investment which is very important when acting as a team. With Simon having carried out extensive investigative research, Michael feels much more confident about his investment decisions.

Michael tends to be a stock picker rather than looking to invest in a particular sector or size of company. His approach is very much on long term capital appreciation with an aversion to risk. Consequently the high growth of the fund has been achieved through a below average level of volatility.

When asked what the future holds Michael admits,

I have no plans for retirement or to leave fund management. I could carry on forever! But investors can rest assured that when the time does eventually come, Michaels school of investment will have just the team to keep the fund performing.

Bought in today, a little late, I admit, at ~12.25, looking for steps up to 14, 16, 18, 20p.

MikeHardman: Well done. Eveything seems to be inplace to get those IPO's underway. Many were set to float on OFEX which LDC has helped to rescue and can now go ahead. They have also linked up with the Americans who are to put up $200 million for China investments. Once due diligence has been done, we should see a steady flow of IPOs during 2005. Now is the time to tuck a few away. Good luck!

Nice 250,000 T trade at 12p has just been posted. Looking good!

Someone has just pointed out that the new shares are to be admitted today. This should result in an RNS at sometime were one of the subscribing institutions has taken a holding above 3%. Should make an interesting read.

"Application has been made to admit the new ordinary shares to be issued pursuant to the Placing to trading on AIM and admission is expected on 19 November 2004."

I would imagine that some of the institutions may well be from amongst existing holders of this stock. Only RAB seems to have sold out. The following has been taken from announcements this year:

Gartmore Investment Management plc now holds, in various funds, a total of 8,596,112 ordinary shares in the Company,which represents 11.1% of the issued share capital of the Company.

Mr Jiang Guoping, the Chairman of the Biaoqi group of businesses in which London Asia holds stakes, is now interested in 5.2 million London Asia ordinary shares, equal to 6.79% of the Company.

Isis Discovery Trust holds 2,500,000 ordinary shares in the Company, equivalent to 3.7% of the issued share capital.

The Throgmorton Trust plc ('Throgmorton') now holds 6,670,000 ordinary shares in the Company, representing 9.76% of the issued share capital.

Framlington Investment Management Limited that it now holds 9,070,000 ordinary shares representing 13.3% of issued share

An interesting point is that if ISIS are not involved with the placing, then we can expect an RNS to say that they no longer hold a notifiable interest. That will not imply that they have sold but that their holding has fallen below 3%.

Current spread is amazingly close. Barclays are quoting 12.04p sell and 12.08 buy. A couple of buys have just gone through at 12.10p but are showing as sells due to screen spreads of 12p to 12.25p. Interesting!

As far as I can tell we have at least 5 financial institutions who could be involved with that placing of stock. Four are known shareholders and if the Mail is correct then we can include Marlborough as well. They are therefore Marlborough, Gartmore, Isis, Throgmorton and Framlington. I will be interested to see the RNS' when they are released perhaps today or early next week.

Historical Prices
Monthly averages for 2004

Date Open High Low Close Avg Vol Adj Close*
Nov-04 12.00 12.50 10.75 12.00 839,504 12.00
Oct-04 10.75 13.75 9.75 12.06 1,211,925 12.06
Sep-04 11.50 11.50 10.75 10.16 269,953 10.16
Aug-04 13.50 13.50 10.75 11.15 187,523 11.15
Jul-04 14.25 14.25 13.00 13.40 180,657 13.40
Jun-04 14.75 15.60 13.25 14.15 64,943 14.15
May-04 17.00 17.00 14.50 14.00 82,586 14.00
Apr-04 17.75 19.25 16.25 16.25 177,172 16.25
Mar-04 19.00 20.00 16.50 17.35 106,669 17.35
Feb-04 17.75 20.50 16.00 18.25 216,838 18.25
Jan-04 19.00 19.75 16.00 17.18 403,486 17.18

The markets turned in the Spring of 2003, since when we have seen people pile into tech stocks on the back of their recovery from the massive loss of faith from the market's peak in 2000. This was followed by a rush to buy into oil minnows on the back of another middle-east crisis and the explosive growth and subsequent demand from China. These oil stocks are now at highly inflated levels and like all bubbles cannot be sustained for ever. Therefore where is the obvious move for hot money? Well it's staring us in the face. Need I say more?

LDC is currently 17th on the leaderboard

Monday's Constant Gainers & Losers
MoneyAM
Stanelco, London Asia Capital, Cranswick, Mice Group, Torotrak, Floors 2 Go, Jarvis, ITM Power, Elan, Autonomy, UKBetting, WH Smith and Dixons in focus.....

Notable constant gainers over five days include Stanelco, now up 50% at 6p following their Asda contract news last week.

London Asia Capital has added 18.18% at 13p after raising 11m in a placing last week to fund expansion in China.

Cranswick has now gained 11.56% over the period at 429.5p following a recent upgrade from Panmure.

Mice Group is 9.8% ahead at 56p since announcing the appointment of Brian Shepherd as the new CEO last week.

Notable constant gainers over four days include Torotrak, up 38.27% at 56p with today's interim results showing narrowing losses and a six-fold increase in revenue.

Floors 2 Go is 17.7% better at 66.5p, helped by a major share purchase by the Chairman late last week.

Notable constant losers over five days include Jarvis, 17.24% weaker at 12p as confidence in its future continues to wane.

ITM Power is now 11.77% worse at 75p and Elan Corporation has slipped 10.14% to 21.1p.

Autonomy Corporation has slumped 8.43% to 160.25p with UKBetting down 7.8% at 44.25p.

WH Smith is 7.42% lower at 213p since last week's downgrade by broker Evolution.

The most notable constant loser over four days is Dixons Group, down 9.45% at 151p after a disappointing trading update

Following that RNS, so far we know that Throgmorton has reported an increased holding and Barnard has come on board. They account for around 20% of that placing, so we still have plenty to discover.

At the last count we had Gartmore, Isis, Throgmorton and Framlington with notifiable interests and the Daily Mail seems confident that Marlborough has joined in.

We can expect further announcements tomorrow!

2005 is widely tipped to be the year that China's undoubted promise is turned into reality , i.e. large, profit making companies that can compete with the best. LDC seems well placed to take advantage of this.

The following is taken from a Fidelity Ad for their China Focus Fund:

1. China is the #1 market for mobile phones - over 300 million people own a handset

2. China manufactures over $60 billion dollars worth of consumer electronics - more than Western Europe

3. 43% of global cement capacity is consumed by China

4. China has the highest number of households with digital TV

5. Over 1000 universities provide China with nearly one million new graduates each year, 38 % of whom are engineers

I am not pushing Fidelity or indeed LDC but it shows why at least some of your portfolio should be invested in China. Thanks to Fidelity for the above.