U.S. SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2008

[   ] TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from

Commission File No. 000-53069

CHINA ENVIRONMENT
HOLDINGS INC.
(Name of Small Business Issuer in its charter)

Delaware
26-1702585
(State or other jurisdiction
of
(I.R.S. employer
incorporation or
formation)
identification number)

% World Capital Market
9595 Wilshire Blvd.
Suite 900
Beverly Hills, CA 90212
 (Address of principal executive offices)

Issuer's telephone
number:                                                (310) 300-8418
Issuer's facsimile
number:                                                  (877) 787-1591

No change
(Former name, former address and former
fiscal year, if changed since last report)

Copies to:
CHINA ENVIRONMENT HOLDINGS INC.
9595 Wilshire Blvd.,  Suite 900
Beverly Hills, CA 90212

Check whether the issuer (1) filed all reports required
to be filed by Section 13 or 15(d) of the Exchange
Act during the preceding 12 months (or for such
shorter period that the issuer was required to file such
reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [   ]

Indicate by check mark whether the registrant is a
shell company (as defined in Rule 12b-2 of the
Exchange Act). Yes [X] No [   ]

State the number of shares outstanding of each of
the issuer's classes of common equity, as of
November 14, 2008: 2,000,000 shares of common
stock were issued.



Item 1.                      Financial Statements.


CHINA ENVIRONMENT HOLDINGS INC.
(A Development Stage Enterprise)
INDEX TO INTERIM AND UNAUDITED
FINANCIAL STATEMENTS
September 30, 2008
(Unaudited)


Page


Financial Statements:



     Balance Sheet
F-1


     Statements of Operations
F-2


     Statements of Stockholder's Deficit
F-3


     Statements of Cash Flows
F-4


Notes to Financial Statements
F-5 - F-
6


























Table of Contents

CHINA ENVIRONMENT HOLDINGS INC.
(A Development Stage Enterprise)
BALANCE SHEETS




December
31, 2007

September
30, 2008





(Unaudited
)

ASSETS:





Current assets:





   Cash

$
-

$
-








      Total current assets


-

-








TOTAL ASSETS

$
-
$
-















LIABILITIES AND
STOCKHOLDERS'
DEFICIT:






Current liabilities:






   Advances from officers


1,788

1,788








Total Current Liabilities


1,788

1,788








TOTAL LIABILITIES

$
1,788
$
1,788








Stockholders' Deficit:






Common Stock, $.00001
par value; 100,000,000
shares authorized,






   2,000,000 issued and
outstanding


      20

20

Accumulated deficit


(1,808)

(1,808
)







Total Stockholders' Deficit


(1,788)

(1,788
)







TOTAL LIABILITIES
AND STOCKHOLDERS
DEFICIT

$
-
$
-




The accompanying notes are an integral part of these
financial statements


F-1








Table of Contents

CHINA ENVIRONMENT HOLDINGS INC.
(A Development Stage Enterprise)
INTERIM AND UNAUDITED STATEMENTS OF
OPERATIONS
(Unaudited)

Income



For
the
nine
mont
hs
ende
d
Septe
mber
30,
2008
For
the
three
month
s
ended
Septe
mber
30,
2008
For
the
period
Nove
mber
8,
2007
(Incep
tion)
throug
h
Septe
mber
30,
2008








Revenue


$        -

$
$
--
Expenses


$        -

$
$
--
General and
Administrative


$        -

$
$
(1,8
08)
Total Expenses


$        -

$
$
(1,8
08)








Net loss per share
(basic and diluted)


$        -

$
$
(.00)
Weighted average
shares outstanding
(basic                   and
diluted)






2,00
0,00
0


The accompanying notes are an integral part of these
financial statements


F-2





















CHINA ENVIRONMENT HOLDINGS INC.
(A Development Stage Enterprise)
STATEMENTS OF CHANGES IN
STOCKHOLDER'S DEFICIT
For period the Nine month period ended September
30, 2008 (Unaudited)
and the period from November 8, 2007 (Inception)
to December 31, 2007










Accumulat
ed











(Deficit)
During the


Total


Common Stock


Developme
nt


Stockholde
rs'


Number
of
Shares


Amou
nt


Stage


Deficit












Inception
  -
Novembe
r 8, 2007


-


$
-


$
-


$
-
















Issuance
of shares
to
founder


2,000,0
00



20



-



20
Net loss


-



-



(1,808
)


(1,808
















Balance
-
Decembe
r 31,
2007


2,000,0
00


$
20


$
(1,808
)

$
(1,788
Balance
-
Septemb
er 30,
2008


2,000,0
00


$
20


$
(1,808
)

$
(1,788

















The accompanying notes are an integral part of these
financial statements


F-3





















Table of Contents

CHINA ENVIRONMENT HOLDINGS INC.
(a Development Stage Enterprise)
INTERIM AND UNAUDITED STATEMENTS OF
CASH FLOWS
(Unaudited)


For the
nine
months
ended
Septembe
r 30, 2008
For the
three
months
ended
Septembe
r 30, 2008

For the
period
November
8, 2007
(Inception)
through
September
30, 2008
Cash Flows from
Operating Activities:




Net Loss



$
(1,808
Adjustments to
reconcile net loss to net
cash used in operating
activities:
--
--



       Founder's shares
issued for services
--
--


20






Net Cash Flows Used in
Operations
--
--


(1,788






Cash Flows from
Financing Activities:
--
--



   Advances from
officers




1,788

--
--









Net Cash Flows
Provided by Financing
Activities
--
--


1,788






Net Increase in Cash
--
--


-






Cash and cash
equivalents -
Beginning of period




-






Cash and cash
equivalents - End of
period
--
--

$
-

--
--



SUPPLEMENTARY
INFORMATION





   Interest Paid



$
-
   Taxes Paid



$
-

The accompanying notes are an integral part of these
financial statements


F-4










CHINA ENVIRONMENT HOLDINGS INC.
(A Development Stage Enterprise)
NOTES TO INTERIM AND UNAUDITED
FINANCIAL STATEMENTS
September 30, 2008

NOTE 1 - ORGANIZATION AND SIGNIFICANT
ACCOUNTING POLICIES

Nature of Operations

CHINA ENVIRONMENT HOLDINGS INC. , a
development stage company (the "Company"), was
incorporated in the State of Delaware on November
8, 2007.  The Company is 100% owned by Ming Xu.
The Company is looking to acquire an existing
company or acquire the technology to begin
operations.

As a blank check company, the Company's business
is to pursue a business combination through
acquisition, or merger with, an existing company.
 No assurances can be given that the Company will
be successful in locating or negotiating with any
target company.

Since inception, the Company has been engaged in
organizational efforts.

General

The accompanying unaudited financial statements
include all adjustments of a normal and recurring
nature, which, in the opinion of Company's
management, are necessary to present fairly the
Company's financial position as of September 30,
2008, the results of its operations for the three
months ended September 30, 2008, and from the
date of inception (November 8, 2008) through
September 30, 2008, and cash flows for the three
months ended September 30, 2008 from the date of
inception (November 8, 2008) through September 30,
2008.

Certain information and footnote disclosures
normally included in financial statements prepared in
accordance with generally accepted accounting
principles have been omitted pursuant to the rules
and regulations of the Securities and Exchange
Commission.

The results of operations and cash flows for the
period ended September 30, 2008 are not necessarily
indicative of the results to be expected for the full
year's operation.

NOTE 2 - SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES

The accompanying financial statements are
prepared in accordance with accounting principles
generally accepted in the United States. Significant
accounting policies follow:







F-5






Loss per Common Share: Basic loss per share is
calculated using the weighted-average number of
common shares outstanding during each period.
Diluted loss per share includes potentially dilutive
securities such as outstanding options and warrants,
using various methods such as the treasury stock or
modified treasury stock method in the determination
of dilutive shares outstanding during each period.
The Company does not have any potentially dilutive
instruments.

New Accounting Pronouncements:

Management does not believe that any other
recently issued, but not yet effective accounting
pronouncements, if adopted, would have a material
effect on the accompanying financial statements.

NOTE 3 - GOING CONCERN

The accompanying financial statements have been
prepared assuming that the Company will continue
as a going concern, which contemplates the
recoverability of assets and the satisfaction of
liabilities in the normal course of business.

The Company has had no revenue and has incurred
accumulated net losses from November 8, 2007
(inception) through the period ended September 30,
2008 of $1,808. In addition, the Company's
development activities since inception have been
financially sustained through equity financing.

The ability of the Company to continue as a going
concern is dependent upon its ability to find a
suitable acquisition/merger candidate, raise
additional capital from the sale of common stock,
and receive additional paid-in capital from its
shareholder and, ultimately, the achievement of
significant operating revenues. The accompanying
financial statements do not include any adjustments
that might be required should the Company be
unable to recover the value of its assets or satisfy its
liabilities.

NOTE 4 - SHAREHOLDER'S EQUITY

Holders of shares of common stock shall be entitled
to cast one vote for each common share held at all
stockholder's meetings for all purposes, including the
election of directors. The common stock does not
have cumulative voting rights.

The preferred stock of the Company shall be issued
by the Board of Directors of the Company in one or
more classes or one or more series within any class
and such classes or series shall have such voting
powers, full or limited, or no voting powers, and such
designations, preferences, limitations or restrictions as
the Board of Directors of the Company may
determine, from time to time.

No holder of shares of stock of any class shall be
entitled as a matter of right to subscribe for or
purchase or receive any part of any new or
additional issue of shares of stock of any class, or of
securities convertible into shares of stock of any
class, whether now hereafter authorized or whether
issued for money, for consideration other than
money, or by way of dividend.


F-6







Item 2.                      Management's Discussion and
Analysis or Plan of Operation.

Plan of Operation

The Company will attempt to locate and negotiate
with a business entity for the combination of that
target company with the Company. The
combination will normally take the form of a merger,
stock-for-stock exchange or stock-for- assets
exchange (the "business combination"). In most
instances the target company will wish to structure
the business combination to be within the definition
of a tax-free reorganization under Section 351 or
Section 368 of the Internal Revenue Code of 1986,
as amended. No assurances can be given that the
Company will be successful in locating or negotiating
with any target company.

The Company has not restricted its search for any
specific kind of businesses, and it may acquire a
business which is in its preliminary or development
stage, which is already in operation, or in essentially
any stage of its business life. It is impossible to
predict the status of any business in which the
Company may become engaged, in that such
business may need to seek additional capital, may
desire to have its shares publicly traded, or may seek
other perceived advantages which the Company
may offer.

In implementing a structure for a particular business
acquisition, the Company may become a party to a
merger, consolidation, reorganization, joint venture,
or licensing agreement with another corporation or
entity.

It is anticipated that any securities issued in any such
business combination would be issued in reliance
upon exemption from registration under applicable
federal and state securities laws. In some
circumstances, however, as a negotiated element of
its transaction, the Company may agree to register all
or a part of such securities immediately after the
transaction is consummated or at specified times
thereafter. If such registration occurs, it will be
undertaken by the surviving entity after the
Company has entered into an agreement for a
business combination or has consummated a
business combination. The issuance of additional
securities and their potential sale into any trading
market which may develop in the Company's
securities may depress the market value of the
Company's securities in the future if such a market
develops, of which there is no assurance. However, if
the Company cannot effect a non-cash acquisition,
the Company may have to raise funds from a
private offering of its securities under Rule 506 of
Regulation D. There is no assurance the Company
would obtain any such equity funding.

The Company will participate in a business
combination only after the negotiation and
execution of appropriate agreements. Negotiations
with a target company will likely focus on the
percentage of the Company which the target
company shareholders would acquire in exchange
for their shareholdings.














 Although the terms of such agreements cannot be
predicted, generally such agreements will require
certain representations and warranties of the parties
thereto, will specify certain events of default, will
detail the terms of closing and the conditions which
must be satisfied by the parties prior to and after
such closing and will include miscellaneous other
terms. Any merger or acquisition effected by the
Company can be expected to have a significant
dilutive effect on the percentage of shares held by
the Company's shareholders at such time.

Results of Operation

The Company has not conducted any active
operations since inception, except for its efforts to
locate suitable acquisition candidates. No revenue
has been generated by the Company from
November 8, 2007 (inception) to September 30,
2008. It is unlikely the Company will have any
revenues unless it is able to effect an acquisition or
merger with an operating company, of which there
can be no assurance.

Expenses incurred since inception are primarily due
to legal, accounting and other professional service
fees.

Liquidity and Capital Resources

At September 30, 2008, the Company had no capital
resources and will rely upon the issuance of common
stock and additional capital contributions from
shareholders to fund administrative expenses
pending acquisition of an operating company.

Management anticipates seeking out a target
company through solicitation. Such solicitation may
include newspaper or magazine advertisements,
mailings and other distributions to law firms,
accounting firms, investment bankers, financial
advisors and similar persons, the use of one or more
World Wide Web sites and similar methods. No
estimate can be made as to the number of persons
who will be contacted or solicited. Management may
engage in such solicitation directly or may employ
one or more other entities to conduct or assist in such
solicitation. Management and its affiliates will pay
referral fees to consultants and others who refer
target businesses for mergers into public companies
in which management and its affiliates have an
interest. Payments are made if a business
combination occurs, and may consist of cash or a
portion of the stock in the Company retained by
management and its affiliates, or both.

The Company and/or shareholders will supervise the
search for target companies as potential candidates
for a business combination. The Company and/or
shareholders may pay as their own expenses any
costs incurred in supervising the search for a target
company. The Company and/or shareholders may
enter into agreements with other consultants to assist
in locating a target company and may share stock
received by it or cash resulting from the sale of its
securities with such other consultants.

Off-balance sheet arrangements

The Company does not have any off-balance sheet
arrangements that have or are reasonably likely to
have a current or future effect on the Company's
financial condition, changes in financial condition,
revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that is
material to investors.









Item 3.                      Controls and Procedures.

The management of the Company, including the
principal executive and financial officer, conducted
an evaluation of the effectiveness of the design and
operation of our disclosure controls and procedures
as defined in Exchange Act Rule 13a-15(e) and 15d-
15(e) as of September 30, 2008. Based on that
evaluation, the principal executive and financial
officer concluded that as of September 30, 2008, our
disclosure controls and procedures were effective at
the reasonable assurance level to ensure (i) that
information required to be disclosed by us in the
reports we file or submit under the Exchange Act is
recorded, processed, summarized and reported within
the time periods specified in the SEC's rules and
forms and (ii) that information required to be
disclosed in reports that we file or submit under the
Exchange Act is accumulated and communicated to
our management including our chief executive and
financial officer, to allow timely decisions regarding
required disclosure.


No change in our internal control over financial
reporting (as defined in Rules 13a-15(f) and 15d-
15(f) under the Exchange Act) occurred during the
fiscal quarter ended September 30, 2008 that has
materially affected, or is reasonably likely to
materially affect, the Company's internal control
over financial reporting.

PART II - OTHER INFORMATION

Item 1.                      Legal Proceedings.

None.

Item 2.                      Unregistered Sales of Equity
Securities and Use of Proceeds.

None.

Item 3.                      Defaults Upon Senior Securities.

None.

Item 4.                      Submission of Matters to a Vote
of Security Holders.

None.

Item 5.                      Other Information.

None.

Item 6.                      Exhibits.









*3.
1

Certificate of Incorporation, as filed with the
Delaware Secretary of State on November 8,
2007.



*3.
2

By-Laws



31.
1

 Certification of Chief Executive Officer
pursuant to Section 302 of Sarbanes Oxley Act
of 2002



31.
2

Certification of Chief Financial Officer
pursuant to Section 302 of Sarbanes Oxley Act
of 2002



32.
1

 Certification pursuant to Section 906 of
Sarbanes Oxley Act of 2002

* Filed as an exhibit to the Company's Registration
Statement on Form 10-SB, as filed with the Securities
and Exchange Commission on February 1, 2008,
and incorporated herein by this reference.


SIGNATURES

       In accordance with the requirements of the
Exchange Act, the registrant caused this report to be
signed on its behalf by the undersigned, there unto
duly authorized.

Dated: November 13, 2008

CHINA ENVIRONMENT HOLDINGS INC.
(Registrant)

/s/ Ming Xu
Ming Xu, President