SHUN CHEONG<0650> - Announcement

Shun Cheong Holdings Limited
(Incorporated in Bermuda with limited liability)

Connected Transactions

The directors of Shun Cheong Holdings Limited (the "Company") announce 
that its two wholly-owned subsidiaries, Shun Cheong Electrical Engineering 
Company Limited and Westco Airconditioning Limited (the 
"Sub-contractors"), have been appointed by Chinney Construction Company 
Limited (the "Main Contractor") to carry out electrical and fire services 
installation, and, mechanical ventilation and airconditioning installation 
for School Improvement Programme described below for a consideration of 
approximately HK$8.7 million and HK$1.0 million respectively.

Agreements:     Dated 24th December 1999

Parties:   Main Contractor:  Chinney Construction Company Limited
           Sub-Contractors:  Shun Cheong Electrical Engineering Company 
                             Limited, and, Westco Airconditioning Limited

Services Provided:      Electrical, Fire Services and Mechanical 
Ventilation and Airconditioning Installation (the "Works") for School 
Improvement Programme

Consideration:  Electrical and Fire Services Installation - approximately 
                HK$8.7 million
                Mechanical Ventilation and Airconditioning Installation - 
                approximately HK$1.0 million
                The consideration was made following a competitive
                tendering process.
                Both are payable in cash in according with the progress of 
                services provided.

School Improvement Programme

The School Improvement Programme is awarded by Architectural Services 
Department, The Government of The Hong Kong Special Administrative Region 
to Main Contractor for conversion and extension to existing aided schools 
Group 3 Under School Improvement Programme Phase III Package 5.

Connected Transactions

As at 24th December 1999, Chinney Construction Company Limited is a 
wholly-owned subsidiary of Kin Wing Chinney Holdings Limited ("Kin Wing 
Chinney") (a company listed on the Stock Exchange of Hong Kong Limited 
("SEHK")) of which Chinney Investments, Limited ("CIL") (a company also 
listed on SEHK) has beneficial interest of approximately 57.83% of the 
issued shares of Kin Wing Chinney. CIL also has beneficial interest of 
approximately 25.19% of the issued shares of the Company.

Mr. Wong Sai Wing, James, the Chairman of CIL, Kin Wing Chinney and the 
Company, has beneficial interest in Chinney Holdings Limited, a company 
has beneficial interest of approximately 53.60% of the issued shares of 
CIL.

Mr. Chan Yuen Keung, Zuric, the director of Kin Wing Chinney and the 
Company, has personal interest of approximately of 9.38% of the issued 
shares of Kin Wing Chinney and of 3.04% of the issued shares of the 
Company.

Mr. Yu Wing Sang, Johnny, the director of Kin Wing Chinney and the 
Company, has personal interest of approximately 7.79% of the issued shares 
of Kin Wing Chinney and of 0.61% of the issued shares of the Company.

Accordingly, the transactions contemplated by the agreements constitute 
connected transactions for the Company (the "Connected Transactions") 
under Rule 14.25 of the Listing Rules.

The directors of the Company including the independent non-executive 
directors (other than Mr. Wong Sai Wing, James, Mr. Chan Yuen Keung, Zuric 
and Mr. Yu Wing Sang, Johnny) consider that the Connected Transactions 
have been entered in the normal course of business and are conducted on 
normal commercial terms on an arm's length basis, and the agreements are 
for the best interests of the Company.

As the consideration of the Connected Transactions in total does not 
exceed HK$10 million, approval from the independent shareholders of the 
Company on the Connected Transactions is not required. Details of the 
Connected Transactions will be included in the Company's annual report for 
the year ending 31st March 2000 until the Works are completed.

Principal Activities of the Company

The Company is an investment holding company. Its subsidiaries are 
principally engaged in the provision of a multi-discipline of building 
services in electrical engineering, water pumping and fire services, air 
conditioning installation, plumbing and drainage, environmental 
engineering, extra low voltage system engineering and project management, 
and, the trading of electrical and mechanical engineering materials and 
equipment.

By Order of the Board
OU KA CHI
Company Secretary
Hong Kong, 29th December 1999