SHUN CHEONG<00650> - Announcement & Resumption of Trading

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.
 
SHUN CHEONG HOLDINGS LIMITED
(Incorporated in Bermuda with limited liability)

SUBSCRIPTION OF 77,000,000 NEW SHARES

An order of the Court of First Instance (the "Order") was made restraining 
three directors of the Company from completing the Subscription until 
further order of the Court. There will be a further hearing at the Court 
of First Instance in the matter on 11th October, 2001.

At the request of the Company, the Shares were suspended from trading on 
the Stock Exchange at 10:00 a.m. on 5th October, 2001 due to a hearing 
held at the Court of First Instance that day. An application has been 
submitted to the Stock Exchange for resumption of trading from 10:00 a.m. 
on 8th October, 2001.

The Company refers to its announcement dated 28th September, 2001 (the 
"Announcement") relating to the proposed subscription by independent third 
parties of 77,000,000 new shares in the Company.

Terms used in this announcement shall, unless the context otherwise 
requires, have the same meaning in the Announcement.

THE ORDER FROM THE COURT OF FIRST INSTANCE
The Company announces that Mr. George Kwok Shun On made an application to 
the Court of First Instance for an injunction restraining the Company and 
three of its directors from effecting the Subscription.

At a hearing of the Court of First Instance on 5th October, 2001, the 
Court of First Instance adjourned the hearing of this application until 
11th October, 2001 and an order was made restraining three directors of 
the Company from completing the Subscription until further order of the 
Court. There will be a further hearing at the Court of First Instance in 
the matter on 11th October, 2001 and further announcements will be made to 
keep shareholders and investors informed where appropriate.

THE SUBSCRIPTION
Pursuant to the Subscription Agreement, the Company conditionally agreed 
to allot and issue (i) 45,000,000 Shares to Kingsway Lion Spur Technology 
Limited; (ii) 16,000,000 Shares to Linkful Strategic Investment Limited; 
and (iii) 16,000,000 Shares to Choi's International Limited, at the 
subscription price of HK$0.2 per Share.

Completion of the Subscription Agreement is conditional upon the 
fulfilment of various conditions. If the conditions are not fulfilled by 
6th November, 2001 (or such date(s) as the Company and the respective 
Subscribers may mutually agree in writing), the obligations of the Company 
and the respective Subscribers shall terminate forthwith without any 
compensation.

SUSPENSION AND RESUMPTION OF TRADING IN SHARES
At the request of the Company, the Shares were suspended from trading on 
the Stock Exchange from 10:00 a.m. on 5th October, 2001 due to the hearing 
of the application at the Court of First Instance that day. An application 
has been submitted to the Stock Exchange for resumption of trading from 
10:00 a.m. on 8th October, 2001.

Shareholders and investors are advised to exercise caution when dealing in 
the shares of the Company.

By order of the Board of Directors
Shun Cheong Holdings Limited
Ou Ka Chi
Company Secretary

Hong Kong, 5th October, 2001