**EXHIBIT      2.1**

|   | **Dated                the 13th                day of June 2007** |   |
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**Hartcourt      Capital, Inc.**

**Shanghai      Jiumeng Information Technology Co., Ltd**

**and**

**LI      ZHENGZHENG**

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**AGREEMENT      FOR SALE AND PURCHASE OF**

**51%      INTEREST IN THE REGISTERED CAPTIAL OF**

**SHANGHAI      HUAQING CORPORATION DEVELOPMENT CO., LTD**

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**THIS      AGREEMENT**

**BETWEEN:**

| (1) | **Hartcourt                Capital, Inc.**, & |
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|   | **Shanghai                Jiumeng Information Technology Co., Ltd** (together the                “**Vendors**”); and |
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| (2) | **Li                Zhengzheng**, (the                “**Purchaser**”). |
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**WHEREAS:**

| 1.   | HARTCOURT                CAPITAL, INC. (hereinafter “**Hartcourt**”) is a company                incorporated in the British Virgin Islands and validly                existing; |
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|   |   |
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|   | Shanghai                Jiumeng Information Technology Co., Ltd (hereinafter “**Shanghai                Jiumeng**”) is a limited liability company duly incorporated in                Shanghai China with business license no. of 3101062014453 and validly                existing as of the date of this Agreement. Li Zhengzheng, is Chinese Citizen with PRC identity                card                no. of 310108511123403. |
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| 2.   | Shanghai                Huaqing Corporation Development Co., Ltd (hereinafter                “**Shanghai****Huaqing**”) is a limited                liability company duly incorporated in Shanghai China and validly                existing. As at the date of this Agreement, Shanghai Huaqing has                a                registered capital of RMB 20,000,000, among which 7.35% equity interest                was held by Li Zhengzheng, 7.35% by Zhu Jianping, 7.35% by Zhang                Hui,                7.35% by Sang Yi, 3% by Dai Peimin, 3% by Luo Meifang, 51% by Shanghai                Jiumeng and the remaining 13.6% by Shanghai Chengqing Electronic                Development Co., Ltd (hereinafter “**Shanghai                Chengqing**”). |
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| 3.   | In                respect that the complex Chinese investment regulations of foreign                investment in China retail and distribution industry, Hartcourt therefore                uses Shanghai Jiumeng as the registered owner of a 51% equity interest                in                Shanghai Huaqing on behalf of Hartcourt. As at the date of this Agreement,                Shanghai Jiumeng owns 51% equity interest in Shanghai                Huaqing. |
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| 4.   | The                Vendors have agreed to sell and the Purchaser has agreed to purchase                the                51% equity interest in Shanghai Huaqing which was legally owned by                Shanghai Jiumeng on behalf of Hartcourt. (the “**Sale                Interests**”) |
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| 5.   | All                the other shareholders of Shanghai Huaqing, incl. Zhu Jianping, Zhang                Hui,                Sang Yi, Dai Peimin, Luo Meifang and Shanghai Chengqing, have unanimously                agreed the sale and purchase of the Sale Interests and abnegate their                preemption over the Sale Interests. |
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**THEREFORE,      IT IS HEREBY AGREED BY THE VENDORS AND THE PURCHASER AS      FOLLOWS:**

| **1.  ** | **VENDORS’                REPRESENTATION AND                WARRANTS** |
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| 1.1 | Hartcourt                shall be the actual beneficial owner of the 51% Sale Interests in                Shanghai                Huaqing, but due to the complicated Chinese investment regulations                of                foreign investment in China retail and distribution industry, Hartcourt                therefore uses Shanghai Jiumeng to be the registered owner of the                51% Sale                Interests in Shanghai Huaqing on behalf of                itself. |
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| 1.2 | Shanghai                Jiumeng agrees that its 51% Sale Interests in Shanghai Huaqing is                in fact                beneficially owned by Hartcourt. |
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| 1.3 | The                action taken by either Hartcourt or Shanghai Jiumeng, or both, shall                be                regarded as the co-action of Hartcourt and Shanghai Jiumeng. Hartcourt                and                Shanghai Jiumeng shall not deny the force effect of the action of                either                party. |
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| 1.4   | Hartcourt                and Shanghai Jiumeng assure that no third-party interest has been                put                against the 51% Sale Interests in Shanghai Huaqing such as pledge,                lien,                or sequestration by juridical authority, etc. which will affect the                fact                of the true, integrity, credibility of the Sale                Interests. |
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| 1.5   | Hartcourt                and Shanghai Jiumeng have the full capability to conduct the sale                of the                Sale Interests in Shanghai Huaqing which was owned by Shanghai Jiumeng                on                behalf of Hartcourt. The shareholders of Hartcourt and Shanghai Jiumeng                have unanimously agreed and resolved the resolution on the sale and                purchase of the Sale Interests in Shanghai                Huaqing. |
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|   |   |
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| **2.  ** | **PURCHASER’S                REPRESENTATION AND                WARRANTS** |
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| **3 ** | **EXECUTION                  DATE** |
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| **4** | **CONSIDERATION** |
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|   | The                Consideration for the sale and purchase of the 51% Sale Interests                in                Shanghai Huaqing shall be RMB 4,000,000 cash                net. |
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| 4.2 | The              Purchaser agrees to purchase the 51% Sale Interests in Shanghai Huaqing              at              the Consideration of RMB 4,000,000 cash net. |
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| 4.3 | As                an additional condition on the Consideration, both the Vendors and                the                Purchaser agree that Dai Peimin, one of the shareholders of Shanghai                Huaqing, shall endorse the 997,550 shares of Hartcourt common stock                under                the share certificate no. 8521 to the entity or individual designated                by                Hartcourt free of charge. |
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| **5** | **RIGHTS              AND OBLIGATIONS OF SHAREHOLDERS** |
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**           **

| 5.1 | All                the rights and obligations of shareholders attached to the 51% Sale                Interests in Shanghai Huaqing shall be transferred to the Purchaser                since                the execution date of this                Agreement. |
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| 5.2   | All                the rights and liabilities of Shanghai Huaqing shall be assumed by                Shanghai Huaqing after the Purchaser executes this Agreement since                the                execution date. |
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| 5.3   | All                the assets of Shanghai Huaqing will be taken by Shanghai Huaqing                after the                Purchaser executes this Agreement since the execution                date. |
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| **6  ** | **PAYMENT                OF CONSIDERATION** |
|-------------------|---------------------------------------------|
|   |   |
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|   | Per              the requirements of Hartcourt and confirmed by Shanghai Jiumeng, the              Purchaser will credit the Consideration to the Vendors satisfied as              details hereunder: |
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| 6.1   | First                installment: Within 3 days upon signing the Agreement, the Purchaser                shall                entrust Shanghai Huaqing to credit RMB 1,000,000 cash to Hartcourt                or                Shanghai Jiumeng. |
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| 6.2   | Second                installment: Within 2 months upon finishing the registration of ownership                change and obtaining new business license of Shanghai Huaqing, the                Purchaser shall entrust Shanghai Huaqing to credit RMB 1,000,000                cash to                Hartcourt or Shanghai Jiumeng. |
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| 6.3   | Last                installment: By the end of January 2008, and upon the item 6.2 is                full                satisfied, the Purchaser shall entrust Shanghai Huaqing to credit                RMB                2,000,000 cash to Hartcourt or Shanghai                Jiumeng. |
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| 6.4   | The                Purchaser shall request Dai Peimin, one of the shareholders of Shanghai                Huaqing, to endorse 997,550 shares of Hartcourt common stock under                the                share certificate no. 8521 to the entity or individual designated                by                Hartcourt. Hartcourt affirms that the aforesaid share certificate                has been                returned to Hartcourt before executing this                Agreement. |
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| 6.5   | Unless                otherwise defines, the Purchaser will not need to pay Hartcourt or                Shanghai Jiumeng any other fees, shares or other securities whatsoever                except the abovementioned 997,550 shares of Hartcourt common stock                for the                purchase of the Sale Interests. |
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| **7  ** | **REGISTRATION                OF OWNERSHIP CHANGE OF SHANGHAI                HUAQING** |
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| **8** | **TRANSFER                OF EQUITY INTEREST IN SHANGHAI TIANQIAN INFORMATION TECHNOLOGY CO.,                LTD                (HEREINAFTER “SHANGHAI                TIANQIAN”)** |
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| 8.1 | Upon                executing the Agreement, Hartcourt and Shanghai Jiumeng shall cooperate                with Shanghai Tianqian to request Yan Hong, one of the shareholders                of                Shanghai Tianqian, to sell his 51% equity interest in Shanghai Tianqian                to                the Purchaser with no Consideration, while the Purchaser agrees to                purchase the 51% equity interest in Shanghai Tianqian from Yan Hong                with                no Consideration. |
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| 8.2   | Hartcourt,                Shanghai Jiumeng together with Yan Hong affirm that the sale and                purchase                of the 51% equity interest in Shanghai Tianqian is unconditional                and with                no Consideration. |
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| 8.3 | Hartcourt                and Shanghai Jiumeng affirm, in the meanwhile assure that Yan Hong                will                cooperate to apply for the registration of ownership change of Shanghai                Tianqian in relation to the sale and purchase of 51% equity interest                in                Shanghai Tianqian at local Industrial and Commercial Administration                Bureau. |
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| **9** | **BREACH                OF AGREEMENT** |
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| 9.1 | In                the event that the Purchaser fails to fulfill his obligations and                delay                the payment of Consideration to the account designated by Hartcourt,                1‰                of the due amount per day penalty shall be imposed till the                payoff                date. Afterwards, the Agreement shall continuously be                executed. |
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| 9.2 | In                the event that the Vendors breach or fail to fulfill their obligations                specified under Clauses 7 and 8, the payment of Consideration will                be                postponed accordingly. |
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| 9.3 | Except                covenanted in this Agreement, any party when fails to fulfill its                obligations specified in this Agreement which causes the economic                loss to                the other party, shall assume the liabilities of breach and indemnify                the                other party against all the                losses. |
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| **10** | **EFFECTIVENESS** |
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| 10.1 | Before                execution of this Agreement, any contract, agreement, or other written                or                oral agreements between Hartcourt or Shanghai Jiumeng and Shanghai                Huaqing, other shareholders or one of the shareholders of Shanghai                Huaqing                except for Hartcourt and Shanghai Jiumeng, or any affiliates of Shanghai                Huaqing, including but not limit to Shanghai Huaqing Economic Development                Co., Ltd, Shanghai Chengqing, Shanghai Tianqian, etc.; or any oral                or                written commitment made to Hartcourt or Shanghai Jiumeng will terminate                and be of no effect. |
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| 10.2 | This                Agreement will be effective immediately upon duly signed by the Vendors                and the Purchaser. |
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| 10.3 | Any                amendments or revision to this Agreement will be of no effect unless                it is                in writing and duly signed by the Vendors and the Purchaser with                clearly                specifying the amendments, deletion, or addition in relation to certain                Clauses of this Agreement. |
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| 10.4 | All                the documents for the registration of ownership change in relation                to the                sale and purchase of the Sale Interests, including but not limit                to the                sale and purchase agreement, amendments of Article of Association,                board                resolution, etc., except otherwise specified in this Agreement about                the                effectiveness, in the event that the context conflicts with this                Agreement, the covenant in this Agreement                overrules. |
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| 10.5 | The                sale and purchase of the Sale Interests is subject to the shareholders’                approval of The Hartcourt Companies, Inc. if required by applicable                law. |
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| **11** | **DISPUTE                SETTLEMENT** |
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|   |  Any                dispute, controversy or claim arising out of or relating to this                Agreement, shall be settled by negotiation and discussion between                both                parties in good faith. In the event that the dispute, controversy                or claim                cannot be solved through negotiation and discussion, it shall be                submitted                and settled by the jurisdiction of People’s Court in which Shanghai                Huaqing locates.  |
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| **12** | **MICELLANEOUS** This                Agreement will be in four original copies, one copy                each with Hartcourt, Shanghai Jiumeng, Li Zhengzheng and Shanghai                Huaqing.                Each copy shall be deemed as equally                authentic. |
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**IN      WITNESS**

**SIGNED      **

**HARTCOURT      CAPITAL, INC.**

**SIGNED      **

**SHANGHAI      JIUMENG INFORMATION TECHNOLOGY CO., LTD.**

**SIGNED      **

**LI      ZHENGZHENG**