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SFC also have expressed concern about the China angle. After protracted and difficult negotiation between the authorities concerned in Hong Kong and China, Chinese state owned enterprises are to be listed on the Hong Kong Stock Exchange. They have agreed to comply fully with all the requirements, both statutory and non-statutory in Hong Kong, including the Takeovers Code. Against this background SFC are concerned that any exemption in favour of Jardines would be difficult to justify.
There is some history of animosity between SFC and Jardines on this issue. On the one hand, it sometimes seems that SFC look for obstacles rather than solutions. On the other, Jardines have been less than forthcoming about their plans and their underlying motives. The Hong Kong Government's role has been to try to bring the two sides together to reach an acceptable solution which accords no special treatment to Jardines while enabling them to continue to do business in Hong Kong; leaves shareholders protected; and causes no damage to investor confidence in Hong Kong. It will be difficult to achieve such a solution. We will continue to keep in close touch with developments, while avoiding involvement in the detail of discussions.