HONG KONG, Jan. 5, 2001 — Moody’s Investors Service has confirmed the ratings of CLP Holdings Limited (CLPH) and CLP Power Hong Kong Limited (CLP Power).

The rating confirmation follows CLPH’s announcement that CLP Power China (CLP-PC), its wholly-owned subsidiary, will invest approximately U.S.$107 million to form a joint venture with Beijing Guohua Electric Power Corporation of China (Beijing Guohua) to hold generating assets and to develop new power projects in Mainland China.

Moody’s notes that the investment is in line with CLPH’s business strategy of developing itself into a regional power player through development and acquisition of power assets in targeted countries. The associated business risks, including those of operating within China’s uncertain regulatory environment, and the financing requirements have already been factored into the companies’ existing ratings.

The joint venture, owned 49% by CLP-PC and 51% by Beijing Guohua, a wholly-owned subsidiary of the Shenhua Group, will own 1,285MW of generating capacity from three operating power stations in Northern China. CLPH’s investment in the joint venture will be financed by a combination of internal cash flow and additional borrowings.

CLP Holdings Limited, a holding company headquartered in Hong Kong, is engaged in the regulated electricity generation and supply business in Hong Kong through its wholly owned subsidiary, CLP Power Hong Kong Limited. CLPH also has a portfolio of power generation investments and development projects in other Asian countries.