SHUN CHEONG<0650> - Announcement & Resumption of Trading

Shun Cheong Holdings Limited

Placing of existing shares and subscription of new shares

Summary

New World Trading Limited ("New World"), a substantial shareholder of Shun 
Cheong Holdings Limited (the "Company"), has on 18th February, 2000 agreed 
to place, on a best efforts basis, (the "Placing") 45,000,000 existing 
shares of HK$0.10 each in the Company (the "Placing Shares") through APC 
Securities Company Limited (the "Placing Agent") to independent investors 
at a price of HK$0.72 per Placing Share and to subscribe (the 
"Subscription") for 45,000,000 new ordinary shares of HK$0.10 each in the 
Company (the "New Shares") also at a price of HK$0.72 per New Share. The 
Placing Shares amount to approximately 13.14% and 11.62% of the existing 
and enlarged issued share capital of the Company following the completion 
of the Subscription.

The net proceeds of the Subscription of approximately HK$31.4 million will 
be used to fund the Company's committed acquisitions of interest in 
businesses involved in using the Internet Based Technology to provide 
contents and services to households. Amongst others, the committed 
acquisitions include an approximate interest of 29.41% in Speedlink 
Limited, a service vendor to own and operate the optical backbone for 
broadband technology, a 5.50% interest in Quam.net Limited, the largest 
financial portal in Hong Kong; and a 5.55% interest in Diyixian.com 
Limited which is a specialized internet service provider for Greater China 
communications.

New World is the registered owner of 48,750,000 shares of HK$0.10 each in 
the Company, representing approximately 14.24% of the existing issued 
share capital of the Company.

The percentage shareholding of New World in the Company immediately after 
completion of the Placing but before completion of the Subscription will 
be approximately 1.10% and immediately after completion of both the 
Placing and the Subscription will be approximately 12.58%.

Placing and Subscription agreement dated 18th February, 2000

Vendor

New World, a company incorporated in the British Virgin Islands and a 
substantial shareholder of the Company, is wholly beneficially owned by Mr 
Kwok Shun On, George, an executive director of the Company.

Number of Placing Shares

45,000,000 Shares of HK$0.10 each in the Company (the "Shares") 
representing approximately 13.14% and 11.62% of the existing and enlarged 
issued share capital of the Company respectively following the completion 
of the Subscription.

Placing Agent

The Placing Agent is independent of the Company and has agreed to place 
the Placing Shares on a best efforts basis. The Placement Fee payable to 
the Placing Agent is 3.0% of the Placing Proceeds.

Placees

The Placing Shares will be placed with six or more professional and 
institutional investors who are independent of the directors, chief 
executive or substantial shareholders of the Company or its subsidiaries 
or their respective associates as such terms are defined in the Rules 
governing the Listing of Securities on The Stock Exchange of Hong Kong 
Limited (the "Stock Exchange") (the "Listing Rules").

Placing and Subscription Price

The placing price is HK$0.72 per Share, which is the same as the 
subscription price. This price was agreed after arm's length negotiations 
and represents:

(i)     a discount of 10.0% to the closing price of HK$0.80 per Share on 
the last full day of trading in the shares of the Company on 17th 
February, 2000; and

(ii)    a discount of approximately 9.70% over the average closing price 
of HK$0.797 per Share as quoted on the Stock Exchange for the last ten 
trading days on which Shares were traded for a full day during the period 
up to and including 17th February, 2000.

Completion of the Placing

The Placing is unconditional. Completion will take place on or around 23rd 
February, 2000.

Subscriber for the New Shares

The subscriber for the New Shares is New World which is the registered 
owner of 48,750,000 Shares representing approximately 14.24% of the 
existing issued share capital of the Company.

Mandate to issue new shares

The Directors were granted a general mandate on 14th September, 1999 to 
allot and issue and otherwise deal with up to 65,588,320 new Shares, which 
mandate is in force and has not been amended or revoked. No Shares have 
been allotted, issued or otherwise deal with pursuant to such mandate.

Ranking of The New Shares

The New Shares will, when issued and allotted, rank pari passu in all 
respects with the existing Shares of the Company.

Conditions of the Subscription

Completion of the Subscription is conditional upon the following matters:

(i)     the Listing Committee of the Stock Exchange granting listing of 
and permission to deal in all of the New Shares; and

(ii)    completion of the Placing.

Application will be made to the Listing Committee of the Stock Exchange 
for the listing of and permission to deal in the New Shares.

Completion of the Subscription

The Subscription will take place within two business days after the 
satisfaction of the conditions and is expected to take place on or before 
3rd March, 2000.

Changes to the shareholding of New World as a result of the Placing and 
the Subscription

                                 Immediately after    Immediately after   
                                 completion           completion
Immediately before completion    of the Placing but   of both the Placing 
 of the Placing                  before completion    and the Subscription
                                 of the Subscription  

48,750,000 Shares representing  3,750,000 Shares      48,750,000 Shares 
approximately 14.24% of the     representing          representing
existing issued share capital   approximately 1.10%   approximately 12.58% 
                                of the existing       of the issued share 
                                issued share capital  capital as enlarged 
                                                      by the 
                                                      Subscription

The existing issued share capital of the Company is HK$34,237,160.00 
comprised of 342,371,600 Shares of nominal value HK$0.10 each.

Reasons for the Placing and Subscription

The Directors consider the Placing is a good opportunity for the Company 
to raise and provide funds for its investment commitments in businesses 
involved in the fields of technology and telecommunications.

Use of proceeds

The net proceeds of the Subscription will amount to approximately HK$31.4 
million. All of which will be used to fund the Company's investments in 
businesses using the internet as a platform to provide commercial 
applications to domestic households throughout South East Asia. These 
investment commitments comprise Speedlink Limited, a company that provides 
broadband information technology services to domestic buildings, Quam.net 
Limited, a financial services internet portal company that provides 
real-time stock quotes and Diyixian.com Limited, a company that provides 
high-speed and reliable internet connection, internetworking and server 
co-location services in Greater China.

All costs and expenses incurred by New World in connection with the 
Placing and the Subscription are to be borne by the Company.

Increase in Price and Volume of the Shares of the Company

We have noted the recent increase in the price and the trading volume of 
the shares of the Company and wish to state that we are not aware of any 
reasons for such increase.

We also confirm that, save as disclosed above, there are no negotiations 
or arrangements relating to intended acquisitions or realizations which 
are disclosable under paragraph 3 of the Listing Agreement, neither is the 
Board aware of any matter disclosable under the general obligation imposed 
by paragraph 2 of the Listing Agreement, which is or may be of a 
price-sensitive nature.

Resumption of Trading

At the request of the Company, trading in the Shares of the Company on the 
Stock Exchange has been suspended with effect from 11:30 a.m. on 18th 
February, 2000. Application has been made to the Stock Exchange to resume 
trading in the Shares of the Company on the Stock Exchange at 10:00 a.m. 
on Monday, 21st February, 2000.

Made by order of the Board of the Company the Directors of which 
individually and jointly accept responsibility for the accuracy of this 
statement.

By Order of the Board
Roger K.C. Ou
Company Secretary

Hong Kong, 18th February, 2000