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HONG KONG STOCK AND FUTURES EXCHANGES

FUTURES EXCHANGE

-

Hong Kong Government took action to support Hong Kong Futures

Guarantee Corporation in order to avoid possible adverse effects on

Hong Kong's economy and to protect Hong Kong's reputation as an

international financial centre.

Measures taken successfully contained the problems on the Futures

Exchange.

CHINESE SUPPORT

Warmly welcome Bank of China's readiness to participate in the

support facility for the Hong Kong Futures Exchange.

- Further evidence of commitment of Chinese authorities to

maintaining prosperity and stability of Hong Kong.

HONG KONG AS A FINANCIAL CENTRE, ENQUIRY INTO STOCK AND FUTURES

EXCHANGES

After world's stock exchange collapse in October 1987, HKG acted quickly to appoint Commission of Enquiry, which is undertaking thorough review of Stock and Futures Exchanges and Government's regulatory position.

This demonstrates HKG's determination to act swiftly and decisively to identify underlying problems and maintain Hong Kong's

reputation as financial centre.

Commission of Enquiry: report is due in May.

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