CHINA RESOURCES<0291> - 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.

China Resources Enterprise, Limited
(incorporated in Hong Kong under the Companies Ordinance)

Announcement

The directors of China Resources Enterprise, Limited (the 
"Directors")  announce that preliminary discussion is being held 
with the parent Company to acquire certain property-related 
assets.

This announcement is made at the request of the Stock Exchange 
of Hong Kong Limited (the "Exchange").

The Directors of China Resources Enterprise, Limited (the 
"Company") refer to various articles appearing on the press on 
25th June 1999 regarding the possible acquisition by the Company 
from its parent company, certain property-related assets. The 
Directors would like to advise the public that preliminary 
discussion is being held with the parent company in respect of 
the proposed acquisition. There is no set timetable for such 
acquisition and both parties have not agreed on any terms and 
conditions. Therefore the Company has not made any funding plans 
in respect of this acquisition. If the proposed acquisition is 
concluded, it will constitute connected and discloseable 
transactions for the Company under the Listing Rules and would 
be subject to approvals by shareholders of the Company other than 
its controlling shareholder and its associates in the 
shareholder's meeting.

Warning:

The proposed acquisition is only a possibility, and it may or may 
not materialized. The investors are advised to exercise extreme 
caution when dealing in the securities of the Company.

By order of the board of 
China Resources Enterprise, Limited 
Lee Yip Wah, Peter 
Company Secretary

Hong Kong, 28th June, 1999