XN000022-1978-02-15 — Page 5

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WEDNESDAY, FEBRUARY 15, 1978

STOCK EXCHANGE UNIFICATION

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THE WORKING PARTY ON UNIFICATION OF THE FOUR STOCK EXCHANGES HAS AGREED THAT THE MERGING WOULD TAKE PLACE BY JANUARY 1980.

THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, SAID THIS IN THE LEGISLATIVE COUNCIL TODAY IN REPLY TO A QUESTION BY DR. THE HON. HENRY HU ON THE PROGRESS OF THE PROPOSED MERGING OF THE FOUR STOCK EXCHANGES.

MR. HADDON-CAVE SAID ALTHOUGH NOTHING HAS ACTUALLY HAPPENED ON THE GROUND. HE HOPED THAT SHORTLY TANGIBLE EVIDENCE OF THE MERGER WOULD BE SEEN.

HE SAID THE GOVERNMENT ATTACHES CONSIDERABLE IMPORTANCE TO UNIFICATION OF THE STOCK EXCHANGES, INTRODUCED PREFERABLY BY THE EXCHANGES THEMSELVES.

MR. HADDON-CAVE SAID THE FOUR EXCHANGES AGREED TO SET UP THE WORKING PARTY ON UNIFICATION CHAIRED BY THE COMMISSIONER FOR SECURITIES IN MAY 1977 AND AT ITS FIRST MEETING AGREED THAT ITS AIM SHOULD BE TO DECIDE WHAT NEEDED TO BE DONE TO BRING ABOUT THE UNIFICATION AND THE TIMETABLE THAT SHOULD BE ADOPTED.

+IN NOVEMBER THE WORKING PARTY AGREED THAT THERE SHOULD BE A SINGLE STOCK EXCHANGE ON ONE FLOOR BY JANUARY 1980, MR. HADDON-CAVE SAID.

+IN ADDITION, THE WORKING PARTY HAS AGREED TO A MEMORANDUM OF ASSOCIATION FOR A UNIFIED EXCHANGE, AND SUB-COMMITTEES ARE PREPARING THE ARTICLES OF ASSOCIATION, AND JOINT LISTING AND TRADING RULES,+ HE ADDED.

AT THE SAME TIME, MR. HADDON-CAVE SAID PROPOSALS WERE BEING DISCUSSED WHEREBY THE KOWLOON STOCK EXCHANGE WOULD OCCUPY PART OF THE FAR EAST EXCHANGE AND THE KAM NGAN EXCHANGE WOULD OCCUPY PART OF THE HONG KONG STOCK EXCHANGE.

IF AGREEMENTS WERE REACHED, MR. HADDON-CAVE SAID, THERE WOUL BE FOUR SEPARATE EXCHANGES OPERATING ON TWO FLOORS WITHIN THIS YEAR.

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