Joint Venture with The Bank of China

Prudential PLC
1 November 1999



PRUDENTIAL ANNOUNCES JOINT VENTURE WITH THE BANK OF CHINA


Prudential  plc and the Bank of China (BOC) today announced a joint  venture

partnership to provide asset management and administrative services for  the

Mandatory Provident Fund (MPF) in Hong Kong.



The  partnership  will  include  the  establishment  of  two  joint  venture

companies  between  the  Prudential and the  Bank  of  China  --  the  BOCI-

Prudential  Asset Management Ltd. and the BOCI-Prudential  Trustee  Ltd.  --

each  with  its  own board of directors. The aim is to provide comprehensive

and high quality asset management and service to MPF customers.



This  joint venture will capitalise on the launch of the Mandatory Provident

Fund  in  Hong Kong which is expected to open up new opportunities  to  sell

retirement  schemes  to  a  large  untapped market.  A  partnership  between

Prudential and BOC means the pooling of significant resources by  these  two

premier financial groups to achieve market leadership in MPF.



Mark Tucker, Chief Executive, Prudential Corporation Asia, said:

'This  partnership  represents  a  very  strong  customer  proposition  that

leverages  the  trust, resources and long experience of two large  reputable

corporations.  This Sino-British joint venture partnership also  underscores

the  opportunities  available  in Hong Kong as  an  international  financial

services metropolis'.

                                                                            

Mr.  Liu  Jin-bao, Chief Executive, Bank of China, Hong Kong-Macau  Regional

Office, added:

  'The  new partnership will leverage the strengths of BOC's solid  approach

and huge branch network complemented by Prudential's customer-oriented sales

approach. This unique combination will cater to the special MPF needs of our

customers by providing them with top quality products and services.'



For further information contact:

Analysts           Media
David Doyle        Jeremy Reynolds
0171 548 3753      0171 548 3721


Notes for editors:

1.    The  Bank  of China is one of the four largest state-owned  commercial
      banks  in  China.  The BOC Group ranks as the second  largest  banking
      group  in Hong Kong, commanding a 20% share of the depositor  base  in
      the Special Administrative Region.

2.    Prudential is the UK's largest life insurance company in Asia with a
      network of over 19,000 agents and staff. The operating licence in
      Vietnam will be the latest addition to Prudential's significant Asian
      portfolio that includes Hong Kong, Singapore, Malaysia, the
      Philippines, Thailand, India, Indonesia, Mainland China and Taiwan.