Hong Kong, May 28, 2003 - In a presentation today to AmCham's 13th Leadership Series Luncheon, Vincent H.S. Lo shared his views on Hong Kong's future in a speech entitled "The Yangtze Region: Scaling New Heights for Hong Kong". Mr. Lo, Chairman and CEO of the Shui On Group and President of the Shanghai-Hong Kong Council for the Promotion and Development of Yangtze (Yangtze Council), believes that Hong Kong has not fully capitalized on the business and investment opportunities in Mainland China. To realize its leadership potential and sustain growth, it must look beyond the Pearl River Delta to the extensive Yangtze Region, the rest of the Mainland, and the world beyond.

"Hong Kong is a major international city that has the necessary hardware and software to excel," commented Mr. Lo. "However, in order to maintain its growth and prosperity, Hong Kong can - and therefore must - aspire to be more than just the Dragon Head for the Pearl River Delta."

Referring to the substantial area from Chongqing, at the Eastern edge of Sichuan Province, downstream to Shanghai, Mr. Lo outlined why he believes there are vast opportunities for Hong Kong in the Yangtze Region.

"Hong Kong is the headquarters for China business," continued Mr. Lo. "There is no reason why this should not continue to be the case because there remain a number of critical activities which are better done in Hong Kong."

Mr. Lo cited free movement of capital and people, convertibility of the Hong Kong Dollar, a sound legal system for business and familiarity with the best that the East and West can offer.

The lower Yangtze Region, from Chongqing to Shanghai produces about 46% of China's GDP and accounts for almost half of China's urban population. It includes 75 cities each with a population of between one to five million. Last year, per capita gross domestic product across this area grew 12% over the previous year.

In describing the ways in which the investment climate is improving, Mr. Lo noted that cities were now competing among themselves for foreign investment and there was strong central government support for the "Go West" programme. He observed it was getting easier to do business, as the role of the private sector is growing. Furthermore, markets are expanding rapidly, and there is a plentiful supply of technology and skills.

In discussing the opportunities in the Yangtze Region, Mr. Lo drew upon his 18 years of experience in Mainland China. Shui On currently employs over 10, 000 people and has projects ranging from high-grade cement production in Guizhou, Chongqing and Nanjing to inner city renewal and housing projects in Shanghai and Hangzhou.

During his address, Mr. Lo recounted a recent meeting with a senior official from Guizhou, where Shui On has significant investments in cement production. "The official congratulated Shui On as an example of Jiang Zhemin's 'Three Represents'," explained Mr. Lo. The official went on to say that Shui On's new production facilities were bringing 'advanced productivity' to the region. In addition, Shui On's management reforms and reorganization were facilitating an 'advanced culture'. The third 'represent' -- interests of the general public -- was exemplified by the government's increase in tax revenues, higher workers' pay and higher profits for the company. "I guess we passed the 'Three Represents' test with flying colours!" said Mr. Lo with a smile.

As President of the Yangtze Council, Mr. Lo commented that he, together with council members, contribute their time on a benevolent basis to advise and support Hong Kong and foreign firms looking to invest in the region. "We believe that we can all win from the resulting activities. This is not just 'win-win' - it's 'win-win-win' for all concerned."

Established in 1998, the Yangtze Council facilitates investment in the region by providing key market-entry and economic-development assistance. It offers prospective investors a unique proposition: experience "on the ground", reliable service providers and a comprehensive network of key contacts.

About Shui On Group

The Shui On Group was founded in Hong Kong in 1971 by Mr Vincent H.S. Lo. Through the years he has built Shui On from a small construction company into a diversified group engaged in property development, construction and construction materials with interests in Hong Kong, the Chinese Mainland and North America.

Shui On Construction And Materials Limited ("SOCAM"; stock code: 983), a member of the Shui On Group, was listed on the Hong Kong Stock Exchange in 1997 and is engaged in construction, construction materials and property development in Hong Kong and the Chinese Mainland. The Group also has a separate, non-listed property arm with investments in Shanghai, Hong Kong, Beijing, Hangzhou, Guangzhou and New York.

For more information, please visit the Shui On's website: www.shuion.com

About Shanghai-Hong Kong Council for the Promotion and Development of Yangtze (Yangtze Council)

The Yangtze Council is a not-for-profit and non-government organization established in 1998. It blends the political strength and connections of the Shanghai Municipal government with some of Hong Kong's leading business executives and investors in China to advance the development of the Yangtze Region. The Council is designed to facilitate investment by overseas enterprises in the Yangtze Region by providing key market-entry and economic-development assistance. The Council is headed by Vincent H.S. Lo, Chairman and CEO of the Shui On Group, and its members include some of the most prominent and leading business persons in Shanghai and Hong Kong.

For more information, please visit the Council's website: www.yangtzecouncil.org