PRESS RELEASE


China Pacific,  Inc.  (NASDAQ - Small Cap - CHNA)  announced that on January 15,
1997 it concluded a private  placement of $15,000,000 of two year 9% Convertible
Notes through Bookook  Securities Co. Ltd. of Seoul,  South Korea. The notes are
convertible  at various times into shares of the Company at prices  ranging from
$4.00 to $8.00 per share.  The unconverted  notes, if any, mature on January 15,
1999.

Clement Mak,  President of the Company,  stated that the proceeds from the notes
would  be used for  working  capital  to cope  with the  increase  in sales  and
strengthen  the  financial  resources  of the Company as and when  required  for
further investment in PRC and the modernization of its steel facility in PRC. He
further noted that this placement to various Korean institutional  investors has
not only  increased the  financial  resources of the Company but also enable the
Company  to build  up  strategically  alliance  with the  Korean  Companies  for
technical transfer of modern steel production.

China Pacific is a leading  producer of iron and steel  products in the People's
Republic of China through its majority  interest in Chengdu  Chengkang  Iron and
Steel.

For further information, please contact:

       China Pacific, Inc. (Los Angeles, CA office)
       Connie Mo (310) 433-1882