CHONGQING IRON<1053> - Announcement

Chongqing Iron and Steel Company Limited

PROFIT WARNING

The board of directors (the "Board") of Chongqing Iron and Steel Company 
Limited (the "Company") announces that the consolidated final results of 
the Company for year ended 31st December, 1999 is expected to record a 
loss for the reasons set out below. It is expected that the final results 
will be announced in late April, 2000.

Investor should exercise caution when dealing in the shares of the 
Company.

The Board announces that, based on the management accounts of the Company 
and its subsidiary (the "Group") for the 12 months ended 31st December, 
1999, the Group is expected to record a loss for the year ended 31st 
December, 1999. It is expected that the consolidated final results will be 
announced in late April, 2000. Although the sales (in terms of the 
quantity of products sold) and the turnover of the Group for the year have 
increased compared to the corresponding period last year, operating 
profits have been severely affected by the substantial fall in the market 
price generally for iron and steel products/manufactured by the Group. At 
present, the financial position of the Company remains sound.

Investor should exercise caution when dealing in the shares of the 
Company.

By Order Of the Board
Tang Min Wei
Chairman

Chongqing, China, 28th February, 2000