KWONG HING INTL<1131> - Announcement

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.

Kwong Hing International Holdings (Bermuda) Limited
(Incorporated in Bermuda with limited liability)

PROPOSED PLACEMENT OF 138,000,000 NEW SHARES
AND
GENERAL MANDATES TO ISSUE SHARES AND REPURCHASE SECURITIES

Joint Manager of the Placement
Kingsway Capital Limited        Polaris Securities (Hong Kong) Limited

Underwriter
Kingsway SW Securities Limited

The board of directors of the Company is pleased to announce that the 
Company has entered into a conditional Placing Agreement on 8 January, 
2000 to place 138,000,000 Placing Shares at the Placing Price of HK$0.20 
per Placing Share.

The net proceeds from the Placing is approximately HK$27 million. It is 
intended that approximately HK$11 million of the net proceeds will be used 
to upgrade existing production facilities including the purchase of 
additional machinery, approximately HK$5 million will be used to repay 
bank debt due in February 2000 and the remaining balance for general 
working capital purposes.

1.      BACKGROUND

On 16 November, 1999 and on 13 December, 1999, Kwong Hing International 
Holdings (Bermuda) Limited (the "Company") announced private placements of 
90,000,000 new shares of the Company of HK$0.10 each ("Shares") and 
118,000,000 new Shares, respectively which raised approximately HK$15.0 
million and HK$19.8 million respectively. Approximately, HK$10 million of 
the net proceeds from the private placement announced in November 1999 
(the "November Placement") had been used to repay bank debt and 
approximately HK$5 million was for working capital purposes. Approximately 
HK$10 million of the net proceeds from the private placement announced in 
December 1999 (the "December Placement") was used to repay bank debt, of 
which HK$2 million had been repaid and HK$8 million will be repaid in the 
month of January 2000 and approximately HK$10 million was for working 
capital purposes.

2.      PLACING AGREEMENT: dated 8 January, 2000 ("Placing Agreement") 
regarding the placement of 138,000,000 Shares ("Placing Shares") at a 
price of HK$0.20 per Placing Share ("Placing Price", together the 
"Placing")

Issuer: the Company

Placing agent and underwriter: Kingsway SW Securities Limited (the 
"Underwriter")

Number of shares to be placed: 138,000,000 Placing Shares

The Placing Shares represents approximately 9.89% of the Company's 
existing issued share capital of 1,396,000,000 Shares and approximately 
9.00% of the enlarged issued shares of the Company of 1,534,000,000 
Shares.

Placee: more than six independent professional investors, institutional 
investors or other investors ("Placees")

Independence of Placees and Underwriter

The Underwriter is and the Placees will be independent of and not 
connected with the directors, chief executive, substantial shareholder of 
the Company or any of its subsidiaries or any associates of any of them 
(as defined in the Rules ("Listing Rules") Governing the Listing of 
Securities on The Stock Exchange of Hong Kong Limited ("the Stock 
Exchange")).

Placing Price: HK$0.20 per Placing Share

The Placing Price represents a discount of approximately 12.28% to the 
closing price of HK$0.228 per Share as quoted on the Stock Exchange on 8 
January, 2000 and represents a discount of approximately 7.41% to the 
average closing prices of HK$0.216 per Share as quoted on the Stock 
Exchange for the 10 trading days ended 8 January, 2000. The Placing Price 
was agreed after arm's length negotiations and the board of directors of 
the Company considers the terms of the Placing Agreement are fair and 
reasonable.

3.      RANKING OF THE PLACING SHARES

The Placing Shares, when fully-paid and issued, will rank pari passu in 
all respects with the existing issued Shares of the Company and will 
receive all dividends and distributions declared, made or paid on or after 
completion of the Placing.

4.      CONDITIONS OF THE PLACING

Completion of the Placing is conditional upon the following conditions 
being fulfilled on or before 18 February, 2000:

(i)     the passing of an ordinary resolution by shareholders of the 
Company at a special general meeting of the Company ("SGM") to approve the 
allotment and issue of the Placing Shares;

(ii)    the Listing Committee of the Stock Exchange granting the listing 
of and permission to deal in the Placing Shares; and

(iii)   filing of relevant circulars or obtaining the necessary waiver 
relating to the Placing as required by Bermuda law, if necessary.

Currently, no Placee has been identified and should any Placee who are 
existing shareholders of the Company on the date of the SGM, it has to 
abstain from voting at the SGM on the resolution to approve the allotment 
and issue of the Placing Shares.

5.      COMPLETION OF THE PLACING

Completion of the Placing is expected to take place within 1 business day 
after the conditions have been fulfilled.

6.      REASONS FOR PLACING AND THE USE OF PROCEEDS

Although the Company is financially sound, the directors of the Company 
are of the view that the Placing will further strengthen the capital base 
of the Company and the directors of the Company consider the Placing to be 
in the best interest of the Company. The net proceeds from the Placing is 
approximately HK$27 million. In view of the competitive and increasingly 
sophisticated textile industry, it is intended that approximately HK$11 
million of the net proceeds will be used to upgrade existing production 
facilities including the purchase of additional machinery which the 
directors of the Company believe will maintain the Company's 
competitiveness. Furthermore, approximately HK$5 million of the net 
proceeds will be used to repay bank indebtedness in February 2000 and the 
remaining balance will be for general working capital.

7.      SHAREHOLDING OF THE SUBSTANTIAL SHAREHOLDER AND ITS ASSOCIATES

Before the November Placement, the December Placement and the Placing, the 
substantial shareholder of the Company, Rayten Limited ("Rayten"), 
together with its associates as defined in the Listing Rules own 
641,430,000 Shares, representing approximately 53.99% of the issued share 
capital of the Company before the November Placement of 1,188,000,000 
Shares, approximately 50.19% of the issued share capital of the Company 
before the December Placement of 1,278,000,000 Shares and approximately 
45.95% of the issued share capital of the Company before the Placing of 
1,396,000,000 Shares, respectively.

After the November Placement, the December Placement and the Placing, 
Rayten together with its associates as defined in the Listing Rules own 
approximately 50.19%, 45.95% and 41.81% of the share capital of the 
Company as enlarged by the November Placement, December Placement and the 
Placing. After the allotment and issue of the Placing Shares, the then 
issued share capital of the Company will be 1,534,000,000 Shares.

8.      APPLICATION FOR LISTING

Application will be made to the Stock Exchange for listing of, and 
permission to deal in, the Subscription Shares.

9.      GRANT OF GENERAL MANDATES

The directors of the Company will also seek the approval of shareholders 
of the Company for a general mandate to the directors of the Company to 
repurchase securities of the Company and to issue further Shares not 
exceeding 10% and 20% respectively, of the share capital of the Company.

10.     GENERAL

A circular containing, among other things, further details of the Placing, 
the notice to special general meeting of the Company will be despatched to 
shareholders of the Company as soon as practicable.

By Order of the Board of
Kwong Hing International Holdings (Bermuda) Limited
Li Mei Lin
Deputy Chairman

Hong Kong SAR, 8 January, 2000