Bet there's no response to this one!
LDC caught my eye today. It has investments in several Chinese companies and has upped its stake to 51% in one of them, Beijing Success, a profitable company which provides software for securities trading and has strong cashflow. It has issued 14,000 software licences and that is merely the tip of the iceberg and the growth potential is vast. LDC upped its stake at a discount due to a favourable exchange rate. Recent flotations in China have been attracting enormous premiums as pent up investing interest is starting to be unleashed. A couple of Chinese internet stocks in the US have risen by over 10,000% (you did not misread that!!!!) and LDC with a controlling interest intend to float Beijing Success soon. (Even I ain't claiming they will rise 10,000% tho'............. )
LDC has a market cap of about 11 million with approx 54 million shares in issue. Beijing Success made about 1.2 million last year and has a strong balance sheet and cashflow. It seems sure to attract massive interest when floated.
On a 1-2 year basis, that makes LDC a potentially spectacular, if somewhat unusual, Buy!

London Asia Capital PLC
08 November 2004



London Asia Capital PLC
('London Asia' or the 'Company')


Agreement with Leading Chinese Venture Capitalist

London Asia, the AIM-listed Greater China focused investment & merchant banking
group, 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. CVCC will
provide details of all of its current investments, which London Asia will then
screen to identify those which are suitable for listing on AIM, OFEX, the New
York, or Singapore markets, and those for which sale to a trade or financial
buyer is more suitable. London Asia will receive fees for its services, and the
right to invest alongside CVCC.

Based in Guangzhou, CVCC has registered capital of RMB700 million (15 million)
and has to date made over fifty investments in the Guangzhou region, with an
emphasis on the bio-technology and IT sectors. 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.'

New Office

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 Chang is a leading figure in the environmental sector in China: one of
the founders of Singapore stock market listed Devotion Eco-Thermal Ltd;
Executive Committee Member of the National People's Congress Environmental &
Resource Protection Committee; Director of the China Association of
Environmental Protection Industry. He is Vice President of the Guangdong
Association of Young Enterprisers, and Guangdong Association of Guangzhou
Association of Outstanding Young Persons. In 2003 Mr Chang was appointed a
Deputy of the 10th National People's Congress. Previous awards and honours
include: 2001 - Ten Outstanding Young Persons of Guangzhou; 1999 - Outstanding
Professional of Tianhe District, Guangzhou; 1998 - Excellent Young Enterpriser
of Guangzhou; 1996 - Ten Outstanding Young Persons of Tianhe District,
Guangzhou.

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 Asia's 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.'

ENQUIRIES:

Simon Littlewood, CEO Tel 020 7248 7578

Paul McManus, Binns & Co Tel 020 7153 1485
Mob: 07980 541 893

About Canton Venture Capital Co. Ltd

Founded in December 1999, the company's major businesses are venture investment
in the high-tech sector, establishment of venture investment funds, as well as
investment consulting and asset management. Backed by the city government, CVCC
helps small companies and individuals in the process of commercialization of
high-tech products and related services. Based in Guangzhou, CVCC's business
covers the Pearl Delta area and southern China.

CVCC has invested over one billion RMB to date. While CVCC is open to reviewing
projects from different fields, the main areas of emphasis are
telecommunication, Internet, computer software, biotechnology, Chinese medicine
modernization, and agriculture. For additional information, see
www.c-vcc.com
.

About London Asia Capital

London Asia is a leading AIM listed investment and merchant banking group
focused on the SME market in Greater China.

London Asia has identified that as a result of the fast growing Chinese economy
and an underdeveloped financial services industry, there is strong demand for
both capital and skilled financial advisory services in China, especially among
small-to-medium sized enterprises.

London Asia operates two principal businesses within Greater China:

Investment in profitable businesses with exits via IPO or trade sale;
Investment Banking services, mainly corporate finance advisory (fund
raisings, IPO's and M&A) and fund management

London Asia has a growing list of investments, paid for via a mix of cash and
London Asia shares, focused on distinct industry sectors:

Financial Services
Media
Information technology & communications
Infrastructure, energy & natural resources & environment

London Asia has offices and management teams, as well as strong local partners,
across the Greater China region, as well as alliances with a number of Chinese
business parks which gives London Asia access to over 7,000 Chinese businesses.
These provide direct access to investment opportunities, close relationships
with corporate clients, a good level of control over existing investments,
access to local market intelligence as well as providing leverage through a
network of partners. These work in conjunction with our international network in
London, New York, Singapore, Hong Kong and Taiwan.

This company is building up to a dramatic change in fortunes. They have been very active all year. In time we will look back and wonder why we failed to buy in at current levels.

News Headlines
08/11/04 10:15 Agreement with Chinese VC RNS
02/11/04 07:00 Investment in OFEX Operator RNS
28/10/04 07:00 Adviser to Power Projects RNS
26/10/04 08:33 London Asia Capital launches 200 mln usd China fund AFX
15/10/04 07:00 Change of Adviser RNS
09/09/04 07:00 Appt of Asian Operations FD RNS
28/07/04 07:30 Set-up of US Operations RNS
30/06/04 12:30 Malaysian investment RNS
02/06/04 09:52 Senior App't & New Alliances RNS
26/05/04 10:13 Creation of Advisory Panel RNS
27/04/04 07:00 Inv'ment in Capitalink Pte RNS
31/03/04 08:30 Acquisition RNS
22/03/04 10:53 New investments RNS
16/03/04 16:03 Gartmore increases stake RNS
15/03/04 08:45 Strategic Alliance RNS
08/03/04 08:40 Exp'n of Singapore operations RNS
06/01/04 11:06 Strategic Alliance RNS
02/01/04 10:38 Acquisition RNS

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 are on the leaderboard this morning!