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 with limited liability)

PLACING OF EXISTING SHARES AND
SUBSCRIPTION FOR NEW SHARES

China Resources Enterprise, Limited (the ``Company'') is pleased to 
announce that Credit Lyonnais Securities (Asia) Limited (``CLSA'') as 
placing agent has fully exercised its option (the ``Over-placement 
Option'') to place an additional 41,968,000 existing ordinary shares 
of HK$1.00 each of the Company at HK$13.85 each (each an ``Additional 
Placing Share'') on behalf of the China Resources (Holdings) Company 
Limited (the ``Vendor''). The Additional Placing Shares have been 
placed to independent professional and institutional investors.

Further to the Company's announcement yesterday, the Company announces 
that CLSA as placing agent for the Placing of 95,126,000 Placing Shares 
at HK$13.85 per Placing Share has, on 7 July 1999, fully exercised the 
Over-placement Option granted to its by the Vendor.

As a result of the exercise of the Over-placement Option, the Vendor 
has sold 41,968,000 Additional Placing Shares at HK$13.85 per 
Additional Placing Share, and pursuant to the Top-Up Subscription 
Agreement will subscribe for the same number of new shares from the 
Company at the same price. The aggregate number of new shares to be 
subscribed for by the Vendor will be 137,094,000 shares.

Terms used in this announcement shall have the same meanings as defined 
in the announcement dated 6 July 1999 unless the context otherwise 
requires.
                          
By Order of the Board
China Resources Enterprise, Limited
Lee Yip Wah, Peter
Company Secretary

Hong Kong, 7 July 1999