CHUNG HWA DEV<1051> - 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.
                
CHUNG HWA DEVELOPMENT HOLDINGS LIMITED  SHEUNG HAI DEVELOPMENTS LIMITED
(incorporated in Bermuda                (incorporated in British Virgin  
with limited liability)                 Islands with limited liability)

JOINT ANNOUNCEMENT
Extension of the time limit for despatch of the circular of Chung Hwa 
Development Holdings Limited.

Reference is made to the joint announcement of the Company and the 
Subscriber dated 10th February, 2000 (the "Joint Announcement"). Terms 
used in this announcement shall have the same meanings as defined in the 
Joint Announcement unless the context otherwise requires.

As mentioned in the Joint Announcement, the Company entered into the 
Agreement with the Subscriber on 22nd January, 2000 to subscribe for the 
5,500,000,000 Subscription Shares at HK$0.01 per share for cash. The total 
consideration for the Subscription Shares will be HK$55 million. Pursuant 
also to the Agreement, the Company granted an option to the Subscriber 
to subscribe for the Option Shares at HK$0.01 per share during the Option 
Period. The Company has also appointed Yu Ming to place the 2,500,000,000 
Placing Shares at HK$0.01 per share to professional investors upon the 
Completion.

On Completion, the Subscriber will hold more than 35 per cent. of the 
enlarged issued share capital of the Company. Under the Code, upon 
completion of the Agreement, the Subscriber and parties acting in concert 
with it would be obligated to make a general offer to purchase all the 
shares of the Company other than those held by the Subscriber and parties 
acting in concert with it. An application has been made by the Subscriber 
to the Executive for the whitewash waiver which may or may not be granted 
by the Executive. The whitewash waiver will be subject to approval by the 
Independent Shareholders by way of a poll in a special general meeting 
to be held by the Company. If the whitewash waiver is not granted by the 
Executive, the Subscriber will not proceed with the subscription of the 
Subscription Shares.

On 3rd February, 2000, the Company appointed Kingston as its placing agent 
for a further placement of the 2,000,000,000 Additional Placing Shares at 
HK$0.01 per share on a best effort basis upon completion of the Agreement.

Pursuant to the Code, the circular of the Company (the "Circular") should 
be despatched within 21 days from the date of the Joint Announcement (in 
this case it should be despatched on or before 2nd March, 2000). However, 
also as mentioned in the Joint Announcement, the Completion of the 
Agreement will be conditional upon, inter alias, the Creditors entering 
into formal agreement(s) to, amongst others, accept the full and final 
satisfaction of all indebtedness in the manner as set out in the Joint 
Announcement.

As at the date of this announcement, 17 Creditors, out of a total of 21 
Creditors, representing approximately 93.6 per cent. of the total 
indebtedness have agreed in writing in principle to the settlement 
arrangements as set out in the Joint Announcement. The Directors aim at 
obtaining the agreement of the remaining Creditors by 10th March, 2000. 
In view of the number of Creditors, the Directors estimate that should 
all the Creditors agree to the settlement arrangements, a formal agreement 
in relation to the settlement with the Creditors is expected to be entered 
into within 14 days thereafter.

The Company has applied to the Stock Exchange and the SFC for an extension 
to the deadline for the despatch of the Circular to 7 days after the 
formal 
agreement in relation to the settlement arrangements is entered into 
between the Company and all the Creditors. The date of despatch of the 
Circular is expected to be 30th March, 2000.

By Order of the Board                   By Order of the Board
CHUNG HWA DEVELOPMENT HOLDINGS LIMITED  SHEUNG HAI DEVELOPMENTS LIMITED
Cheung Yu Shum, Jenkin                  Wong Kam Fu, Nelson
Deputy Chairman and Managing Director   Director
Hong Kong, 1st March, 2000

The directors of the Company jointly and severally accept full 
responsibility for the accuracy of the information contained in this 
announcement, other than those relating to the Subscriber, and confirm, 
having made all reasonable inquiries, that to the best of their 
knowledge, the opinions expressed in this announcement have been 
arrived at after due and careful consideration and there are no other 
facts not contained in this announcement, the omission of which would 
make any statement in this announcement misleading.

The sole director of the Subscriber accepts full responsibility for the 
accuracy of the information contained in this announcement, other than 
those relating to the Company, and confirms, having made all reasonable 
inquiries, that to the best of their knowledge, the opinions expressed 
in this announcement have been arrived at after due and careful 
consideration and there are no other facts not contained in this 
announcement, the omission of which would make any statement in this 
announcement misleading.