DENWAY INV<0203> - 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.


DENWAY INVESTMENT LIMITED
(Incorporated in Hong Kong under the Companies Ordinance)

Announcement

The  controlling shareholder of the Company had placed and sold a
total  of 160,858,000 existing Shares, representing approximately 6.41
per  cent. of the issued share capital of the Company, to independent
third  parties. As of 3rd May, 1999, approximately 25.01 per cent. of
the issued share capital of the Company is held by the public.

The  directors  (the  `Directors') of Denway Investment Limited (the
`Company')  wish  to  announce that China Lounge Investments Limited
(`China  Lounge'),  the  controlling shareholder of the Company, had
placed  and sold a total of 160,858,000 existing shares (the `Shares')
of  the  Company  to  independent  third  parties,  representing
approximately  6.41  per  cent.  of the issued share capital of the
Company  at prices ranging from HK$0.46 to HK$0.50 (which include the
68,500,000  Shares  placed and 840,000 Shares sold by China Lounge as
mentioned  in  the announcement dated 24th April, 1999 issued by the
Company).  As  disclosed  in  the Company's announcement dated 5th
February,  1999  regarding the completion of the rights issue of the
Company,  public  shareholding  of  the  Company had decreased to
approximately  18.6  per  cent.  of the issued share capital of the
Company.  After  the placing and sale of the Shares mentioned above,
approximately  25.01  per  cent. of the issued share capital of the
Company is now held by the public.

                               By order of the board   
                               Denway Investment Limited 
                               Hu Peizhuo 
                               Deputy Managing Director                   
   
                                                     
Hong Kong, 3rd May, 1999