(Chongqing, 19th August 2003) Following on its successful ventures in Shanghai and Hangzhou, Hong Kong-based developer Shui On Group, the lead investor of the internationally acclaimed Shanghai Xintiandi, is capitalizing on new business opportunities in the emerging Chongqing market and today signed an agreement with the government of the Yuzhong District in Chongqing for the Hualongqiao Redevelopment Project. Chongqing is the officially designated economic hub of Southwest China and redevelopment of the run-down Hualongqiao area carries high priority within the municipal government's plan to modernize the city centre and to develop Chongqing as an international city.

This city core development project represents an investment of more than RMB 10 billion and comprises a gross floor area of more than two million square metres. The 1.3-million-square-metre Hualongqiao area is situated on the south bank of the Jialing River on the hillside. With a riverfront spanning two kilometres, it is the only plot of land available for large-scale redevelopment in the urban area.

Mr Vincent H.S. Lo, founder and chairman of Shui On Group, said at the ceremony to mark the signing of the Agreement, "Chongqing is the largest and most populous municipality in the world as well as the economic centre of the Upper Yangtze region. As such, it offers unparalleled growth opportunities. Rich in energy and agricultural resources, Chongqing's land and labour costs are also low when compared with coastal cities. Its port will accommodate large ships when the Three-Gorges Project is completed. Moreover, significant infrastructure projects are under way in connecting with the five surrounding provinces, which together form a huge market for Chongqing. With improved land and river transportation, Chongqing will be able to develop its logistics industry and become a major marketplace. All this means that the Municipality is well positioned to develop its extensive manufacturing industry, which will be a major driving force for the development of China's entire southwestern region. Chongqing's city centre is set to become the service centre for manufacturing."

In line with the local government's vision to modernize and urbanize the Municipality, Shui On positions the Hualongqiao Redevelopment Project as the future centre for supporting and servicing Chongqing's manufacturing industries. Hualongqiao will be the focal point where professional and business people - local and expatriate - will be able to cluster.

Shui On initially invested in the cement industry in Chongqing in 1995 through its joint venture, TH Cement Group.TH is now the leading high- grade cement producer in the Municipality with an annual capacity of 5.6 million tonnes. Shui On entered the Mainland property market as early as 1985 and its developments such as Rainbow City in Shanghai and Xihu Tiandi in Hangzhou are highly regarded in the market. Its Shanghai Xintiandi is already a landmark and an icon of modern Shanghai.

The masterplan for the Hualongqiao Redevelopment Project has been designed by SOM (Skidmore,Owings and Merrill), the USA-based architectural and urban design firm which was also design consultant for Shanghai Xintiandi. The design takes full advantage of the site's unique landscape and creates commercial and residential space around the lake and on the hillsides.

As the manufacturing support centre of Chongqing, Hualongqiao will comprise business service facilities including an exhibition and merchandise mart, luxury hotels, intelligent office buildings as well as residential clusters and dining, shopping and entertainment amenities.

Like South of Market in San Francisco and SOHO/Chelsea in New York, the project creatively integrates residential and commercial space. A man-made lake will be built, with the commercial core to the west and the residential area to the east. The Hilltown - the hillside residential area with stepped heights and a Plaza at the centre - will offer scenic views of the lake and the Jialing River.

On completion, Hualongqiao will beseamlessly integrated with Chongqing's central business district.

About Shui On Group

The Shui On Group, founded by Mr Vincent Hong Sui Lo in 1971, is a diversified group engaged in property development, construction and construction materials with interests in Hong Kong, the Chinese Mainland and North America.

In 1997, the construction and construction materials businesses were grouped under Shui On Construction And Materials Limited (SOCAM), which was listed on the Hong Kong Stock Exchange in February of the same year. Today, SOCAM is engaged in five core businesses: quality housing development in the Chinese Mainland, cement, construction, construction materials and global materials trading.

The privately-held Shui On Properties Limited undertakes property development in the Chinese Mainland. Among its projects is the internationally acclaimed "Shanghai Xintiandi" in the heart of Shanghai.