YUGANG INT'L<0613> - 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.

YUGANG INTERNATIONAL LIMITED
(incorporated in Bermuda with limited liability)
ANNOUNCEMENT
Adjustment  of  Subscription  Price  relating  to the Outstanding
Warrants

The  subscription price in respect of the outstanding warrants of
Yugang  International  Limited (the `Company') has been adjusted from
HK$0.23  per  share to HK$0.22 per share with effect from 17 January
2000.


Adjustment of Subscription Price relating to Warrants
The  issue  on  17 January 2000 of the 509,000,000 new shares of the
Company  upon completion of the Subscription Agreement dated 3 January
2000  (as  mentioned  in the Company's announcement dated 4 January
2000)  has  resulted  in an adjustment to the subscription price in
respect  of the warrants of the Company, which were previously created
by  an  instrument  dated  6  September 1999, conferring rights to
subscribe  in cash for new shares of the Company at any time up to and
including  15  September  2001  (the  `Warrants'). Pursuant to the
provisions  of  the abovementioned instrument dated 6 September 1999
(the  `Warrant Instrument'), the subscription price in respect of the
Warrants  has  been, with effect from 17 January 2000 (being the same
date  as  the  date  of allotment of the new shares), adjusted from
HK$0.23  per  share to HK$0.22 per share, which has been certified by
Tai  Fook  Capital Limited, to be appropriate in accordance with the
terms of the Warrant Instrument.

Apart  from  the abovementioned adjustment of the subscription price,
all  the  terms and conditions of the Warrant Instrument will remain
unchanged.  All  currently  valid  certificates  of  the Warrants
previously  issued  to  holders  thereof will continue to be valid
documents  of title to the Warrants notwithstanding the adjustment of
the subscription price.

                               By Order of the Board 
                               Cheung Chung Kiu                     
                               Chairman                      
                                                             
Hong Kong, 21 January 2000