SUN HUNG KAI CO<0086> - Announcement

The Stock Exchange of Hong Kong Limited takes no responsibility for the 
contents of this announcement, makes no representation as to its accuracy 
or completeness and expressly disclaims any liability whatsoever for any 
loss howsoever arising from or in reliance upon the whole or any part of 
the contents of this announcement.

SUN HUNG KAI & CO. LIMITED
(Incorporated in Hong Kong with limited liability)

ANNOUNCEMENT

Reference is made to the announcement of Sun Hung Kai & Co. Limited 
("Company") dated 16 December 1999 in connection with the delay in 
despatch of a circular ("Circular") containing information on a 
conditional sale and purchase agreement dated 24 November 1999 ("Major 
Transaction") for the sale of 770 million shares of HK$0.20 each ("Sale 
Shares") (representing 19.77% of the issued share capital) in Tian An 
China Investments Company Limited ("Tian An"). 

On 15 January 2000, the Company has despatched to its shareholders the 
Circular, together with a notice to convene an extraordinary general 
meeting of the Company to be held on 2 February 2000 ("EGM").

This announcement is made for the purpose of informing the public of 
certain financial information contained in the Circular and in accordance 
with The Rules Governing the Listing of Securities on the Stock Exchange 
("Listing Rules").

On 15 January 2000, the Company has despatched to its shareholders the 
Circular, together with a notice to convene the EGM.

In compliance with the Listing Rules, the Circular contains a statement of 
pro forma adjusted unaudited consolidated net tangible assets of the 
Company and its subsidiaries ("Group") which was prepared based on the 
shareholders' funds of the Group as stated in the audited consolidated 
financial statements of the Group as at 31 December 1998 and adjusted as 
follows:

                                HK$'000         HK$'000

Shareholders' funds based on the audited balance sheet of the Group
  as at 31 December 1998                        3,540,834
Add: Capital reserves on acquisition of associated companies              
                                                  311,421
Less: Share of goodwill of an associated company                        
                                                 (414    )
                        
Audited consolidated net tangible assets as at 31 December 1998           
                                                 3,851,841

Unaudited consolidated profit attributable to shareholders
  for the six months ended 30 June 1999 per published interim report    
                                55,555
Adjustment of the Group's additional holding of 891,368,718 shares
  in Tian An of HK$0.20 each ("Tian An Shares") as marketable securities  
                                36,802
Adjustment for reclassification of Tian An from subsidiary
  to associated company (Note 1)        
                                (7,320  )
Interim results restated for the six months ended 30 June 1999            
                                85,037
1999 Interim dividend paid                      (11,625 )
Revaluation deficit of long-term equity investments as at 31 December 1999 
                                                (328,886 )
Unrealised profit of 891,368,718 Tian An Shares less provision for 
taxation
  from 1 July 1999 to 31 December 1999           63,633
                        
Pro forma adjusted unaudited consolidated net tangible assets
  before the Major Transaction                  3,660,000

Net profit arising from the Major Transaction (Note 2)                  
                                                139,062
                        
Pro forma adjusted unaudited consolidated net tangible assets
  after the Major Transaction                   3,799,062

Notes:

1.      The Company has not formed any permanent intention that Tian An 
would remain a subsidiary. Accordingly, Tian An was excluded from 
consolidation as a subsidiary but reclassified as an associated company on 
the ground of temporary control in the interim results.

2.      Net profit arising from the Major Transaction:

                                                        HK$'000

Consideration of the Sale Shares                        423,500
Less: Book value as at 31 December 1999                 (257,950)
        
The excess of the consideration over the book value     165,550
Less: Provision for taxation                            (26,488 )
        
Net profit arising from the Major Transaction           139,062
        
This profit will be booked in accordance with generally accepted 
accounting principles in Hong Kong.

The Company has also despatched a circular to the holders of the warrants 
for subscription of new shares in the Company at any time during the 
subscription period up to and including 18 February 2000 and, for 
information only, to its shareholders and the holders of its convertible 
loan notes issued on 13 January 1998, detailing particulars and 
arrangements concerning the expiry of the warrants.

On behalf of the Board
Arthur George Dew
Executive Chairman

Hong Kong, 15 January 2000