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")  reiterate that preliminary discussion is being held 
with the parent Company to acquire certain property-related assets 
belonging to the China Resources Retail Group.

This statement is made at the request of the Stock Exchange of 
Hong Kong Limited.

The Company noted that certain articles appearing in several 
newspaper on 30th June, 1999 referring to the Company's proposed 
acquisition of certain property-related assets belonging to the 
China Resources Retail Group.

The Company would like to refer to the announcement made on 28th 
June, 1999, and reiterate that preliminary discussion is being 
held with the parent company in respect of a proposed acquisition 
of certain property-related assets belonging to the China 
Resources Retail Group. However, no terms, including pricing, and 
conditions in respect of the transaction have been reached, and 
no timetable has been set for such acquisition. Thus, the Company 
has not decided on the funding plan for this acquisition. If this 
proposed acquisition materializes, it would constitute a 
discloseable transaction, but not a major transaction, under the 
requirement of the Listing Rules.

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, 30th June, 1999