MONDAY, SEPTEMBER 19, 1994

PURPOSE

THROUGH

BANKS CAN ALSO USE THE NOTES FOR DISCOUNTING THE LIQUIDITY ADJUSTMENT FACILITY OPERATED BY THE HKMA, THUS ENHANCING THE LIQUIDITY OF THE BANKING SYSTEM.

+

PREPARATION FOR THE LAUNCH OF THE FIVE-YEAR NOTES HAS GEARED UP

LATEST FOLLOWING

THREE-YEAR FÁVOURABLE MARKET RECEPTION TO THE THE EXCHANGE FUND NOTES ISSUE, THE FIRST WITH A MATURITY STRADDLING 1, 1997.

JULY

THAT ISSUE WAS 4.7 TIMES OVER-SUBSCRIBED AND BOTH THE YIELD

HAS NOT ISSUE AND CURRENT MARKET YIELD DEMONSTRATE THAT THE MARKET

IF ANY, DEMANDED ANY ADDITIONAL PREMIUM TO COMPENSATE FOR THE RISK, ASSOCIATED WITH THE CHANGE OF SOVEREIGNTY,

AT

THE CHINESE SIDE HAS EXPRESSED FULL SUPPORT FOR THE ISSUANCE OF

GIVEN ITS NOTES, FUND

TO IMPORTANCE FIVE-YEAR EXCHANGE

MARKET

DEVELOPMENT.

WITH BONDS.

1993.

THE EXCHANGE FUND NOTE PROGRAMME WAS INTRODUCED IN THE LAUNCH OF TWO-YEAR NOTES TO REPLACE THE TWO-YEAR

MAY 1993, GOVERNMENT

THIS WAS FOLLOWED BY THE ISSUE OF THREE-YEAR NOTES IN

OCTOBER

BILLION,

SO FAR SIX ISSUES OF TWO-YEAR NOTES AND FOUR ISSUES OF YEAR NOTES, AMOUNTING TO A TOTAL OUTSTANDING OF HK$6 BEEN ARRANGED.

THE

THREE- HAVE

MARKET FOR EXCHANGE FUND NOTES SECONDARY ACTIVE, REFLECTING THEIR POPULARITY.

IS LIQUID AND

IN

THE FIRST HALF OF THIS YEAR, THE AVERAGE DAILY TURNOVER THREE-YEAR NOTES WAS 109 PER CENT OF THE TOTAL AMOUNT OF WHILE THAT FOR TWO-YEAR NOTES WAS 53 PER CENT,

IN

OUTSTANDING

MEMBERS

OF

PUBLIC

ΤΟ THE

WHO WISH

TENDER FOR QUARTERLY FIVE-YEAR NOTES MAY DO SO THROUGH ANY OF THE MARKET OR RECOGNISED DEALERS ON THE PUBLISHED LIST WHICH CAN BE OBTAINED FROM THE HONG KONG MONETARY AUTHORITY ON 30TH FLOOR, 3 GARDEN KONG, OR TELEPHONE 878 8150.

ROAD, HONG

THE

FIRST MAKERS

BACH TENDER

MULTIPLES THEREOF.

BE MUST

AN AMOUNT

OF

HK$50,000

OR

INTEGRAL

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