NEO-CHINA GROUP<00563> - Unusual price & volume movements

The Stock Exchange has received a message from Neo-China Group
(Holdings) Limited which is reproduced as follows:-

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

We have noted that the decrease in share price and increase in trading 
volume of the Company today and wish to state that we are not aware of any 
reasons for such movement save as disclosed in the announcements of the 
Company dated 15 May 2006, 24 May 2006 and 5 June 2006 in relation to the 
proposed issue of zero coupon convertible bonus due 2011, the acquisition 
of 25% equity interest in Beijing New Shine Land Investment Consultancy 
Limited and the acquisition of 70% equity interest in Chongqing China 
Enterprises Property Development Company Limited respectively.
 
We also confirm that there are no negotiations or agreements relating to 
intended acquisitions or realizations which are discloseable under rule 
13.23, neither is the Board aware of any matter discloseable under the 
general obligation imposed by rule 13.09, which is or may be of a price-
sensitive nature.

Made by the order of the Board of Directors of the Company which 
individually and jointly accept responsibility for the accuracy of this 
statement.

As at the date of this statement, the board comprises Mr. Li Song Xiao as 
chairman; Mr. Liu Yi, Ms. Song Xuan, Ms. Niu Xiao Rong, Mr. Zhang Huai An 
and Mr. Yuan Kun as executive directors; and Mr. Zhen Kuan, Mr. Wang 
Shiyong and Ms. Nie Mei Sheng as independent non-executive directors.


For and on behalf of
Neo-China Group (Holdings) Limited

Chan Yim Kum
Corporate Secretary

9 June 2006"