Issue of Debt

Zhejiang Expressway Co
23 January 2003

                          Zhejiang Expressway Co., Ltd

 (A joint stock limited company incorporated in the People's Republic of China
                            with limited liability)

                         Domestic Corporate Bond Issue

Summary

Zhejiang Expressway Co., Ltd. (the 'Company') has obtained the final approval
from the State Development Planning Commission (the 'SDPC') on 20th January,
2003 to issue RMB1 billion of corporate bonds (the 'Bonds') to institutional and
public investors in the PRC (the 'Bond Issue'). The Bonds will be offered for
subscription by public investors in the PRC during the period from 24th January,
2003 to 17th February, 2003. The Company intends to list the Bonds on the
Shanghai Stock Exchange, subject to the approval from the China Securities
Regulatory Commission (the 'CSRC'). The Company had announced the proposed Bond
Issue on 10th September, 2002, and the Bond Issue had been approved by the
shareholders including holders of H shares of the Company and holders of
domestic shares of the Company at the extraordinary general meeting held on 15th
November, 2002.

The Company intends to use the proceeds from the Bond Issue to fund the
construction work to widen sections of the Shanghai-Hangzhou-Ningbo Expressway.

Saved as disclosed herein, the directors of the Company (the 'Directors') hereby
confirm that they are not aware of any matter discloseable under the general
obligation imposed by paragraph 2 of the Listing Agreement, which is or may be
of a price-sensitive nature.

The Directors are pleased to announce that the Company has obtained the final
approval from the SDPC on 20th January, 2003 to issue the Bonds to institutional
and public investors in the PRC. The Bonds will be offered for subscription by
public investors in the PRC during the period from 24th January, 2003 to 17th
February, 2003. The Company intends to list the Bonds on the Shanghai Stock
Exchange, subject to the approval from the CSRC. The Company had announced the
proposed Bond Issue on 10th September, 2002, and the Bond Issue had been
approved by the shareholders including holders of H shares of the Company and
holders of domestic shares of the Company at the extraordinary general meeting
held on 15th November, 2002.

DETAILS OF THE BOND ISSUE

The details of the Bond Issue are as follows:


        (1)     Amount of Bonds to be issued: RMB1 billion.

        (2)     Target subscribers: Institutional and public investors in the
        PRC.

        (3)     Period for subscription by public investors in the PRC: From
        24th January, 2003 to 17th February, 2003.

        (4)     Maturity of the Bonds to be issued: 10 years.

        (5)     Interest to be paid: Fixed rate at 4.29% per annum.

        (6)     Period for accrued interest on the Bonds: From 24th January,
        2003 to 23rd January, 2013.

        (7)     Guarantee for the Bond Issue: Unconditionally and irrevocably
        guaranteed by the Zhejiang branch of China Construction Bank on a
        joint-liability basis with the Company. The cost for the guarantee to be
        paid by the Company is 0.01% of the par value of the Bonds per annum.

        (8)     Credit rating of the Bonds: The Bonds are rated as AAA by China
        Lianhe Credit Rating Co., Ltd.

        (9)     Use of proceeds: It is expected that the net proceeds arising
        from the Bond Issue will amount to approximately RMB980 million. The
        Directors currently intend to apply the proceeds to fund the
        construction to widen two sections of the Shanghai-Hangzhou-Ningbo
        Expressway. Details have been set out in the announcement of the Company
        on 10th September, 2002.

        (10)     Underwriters of the Bonds:

        (i)     Lead Manager: China Sci-Tech International Trust & Investment
        Co., Ltd.

        (ii)     Co-lead Managers: China Galaxy Securities Co., Ltd., China
        Eagle Securities Co., Ltd., Guotai Junan Securities Co. Ltd., Tianyi
        Securities Co., Ltd., Zhejiang International Trust & Investment Co.
        Ltd., and China Minzu Securities Co., Ltd.

        (iii)     Co-Managers: China Securities Co., Ltd., BOC International
        (China) Limited, Kinghing Securities Co., Ltd., Changjiang Securities
        Co., Ltd., and China Dragon Securities Co., Ltd.

GENERAL INFORMATION

Saved as disclosed herein, the Directors confirm that they are not aware of any
matter discloseable under the general obligation imposed by paragraph 2 of the
Listing Agreement, which is or may be of a price-sensitive nature.

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.

                                                           By Order of the Board
                                                   Zhejiang Expressway Co., Ltd.
                                                                    JIANG Wenyao
                                                               Company Secretary
                                                    22nd January, 2003, Hangzhou



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