SOUTH CHINA H<0265>&SOUTH CHINA IND<0413>-Joint Announcement

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

SOUTH CHINA HOLDINGS LIMITED
(Incorporated in the Cayman Islands with limited liability)     

SOUTH CHINA INDUSTRIES LIMITED
(Incorporated in the Cayman Islands with limited liability)

In  relation  to  certain  recent press articles reporting the
plans  for  acquiring  some chemical and pharmaceutical projects of
South  China Holdings Limited (`South China Holdings') and the listing
of  a  subsidiary  of  South China Industries Limited (`South China
Industries'),  South China Holdings and South China Industries wish to
make certain clarification as set out below.

The  board  of  directors  of South China Holdings and South China
Industries  (the `Companies') have noted certain articles in the press
on  26 June 1999 which referred to statements relating to the proposal
of  acquiring some chemical and pharmaceutical projects by South China
Holdings,  then  list  them in the proposed Growth Enterprise Market
(`Chemical  and  Pharmaceutical Projects') and proposed spin off the
electronic  business  of  South China Industries and listing of Wah
Shing  Electronics  Company  Limited,  a subsidiary of South China
Industries (`the Spin-off').

The  Board  of  directors of the Companies wish to confirm that the
Chemical  and  Pharmaceutical  Projects  and the Spin-off have been
respectively  considered  by  South  China Holdings and South China
Industries.  However,  currently  there  are  no concrete plans or
arrangements  on  the  Chemical and Pharmaceutical Projects and the
Spin-off.  The Companies at present do not have plans when to proceed
with the above mentioned projects.

The  Companies  also confirm that save as disclosed above, the joint
announcement  regarding the unconditional cash offer by Onswin Limited
to  all  the  issued  share capital of South China Information and
Technology  Limited (the `Unconditional Cash Offer') on 2 June 1999 of
South  China Holdings and South China Industries and the announcement
regarding  the Unconditional Cash Offer on 19 June 1999 of South China
Industries,  there  are  no  negotiations or agreements relating to
intended  acquisitions  or realisations which are discloseable under
paragraph  3 of the Listing Agreement, neither is the respective Board
of  the  Companies aware of any matter discloseable under the general
obligation  imposed by paragraph 2 of the Listing Agreement, which is
or may be of a price-sensitive nature.

By  Order  of the Board
South China Holdings Limited
Yuen Kam Tim, Francis
Company Secretary       

By Order of the Board
South China Industries Limited
Yuen Kam Tim, Francis
Company Secretary

Hong  Kong  Special Administrative Region of The People's Republic of
China

26 June 1999