XN000022-1980-05-24 — Page 2

SATURDAY, MAY 24, 1980

UNIFICATION OF STOCK EXCHANGES

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THE COMMISSIONER FOR SECURITIES AND THE CHAIRMAN OF THE WORKING PARTY ON UNIFICATION, MR VISDEIN A. MCINNES, ANNOUNCED THAT AT A MEETING OF THE WORKING PARTY THIS (SATURDAY) MORNING MEMBERS UNANIMOUSLY AGREED ON THE FOLLOWING PROPOSALS

(1)

THAT A NEW COMPANY, TO BE CALLED THE STOCK EXCHANGE OF HONG KONG (LIMITED), WOULD BE INCORPORATED AS SOON AS POSSIBLE. THE INITIAL SUBSCRIBERS TO THE NEW COMPANY WOULD BE THE MEMBERS OF THE HONG KONG FEDERATION OF STOCK EXCHANGES. THIS NEW COMPANY WOULD ULTIMATELY RUN THE NEW EXCHANGE, BUT ITS SHORT-TERM FUNCTION WOULD BE TO NEGOTIATE PURPOSE-BUILT PREMISES FOR THE NEW EXCHANGE TO OPERATE ON ONE TRADING FLOOR- AS WELL AS TO BE RESPONSIBLE FOR THE ACCEPTANCE OF NEW MEMBERS.

(2) THAT MEMBERS OF THE FOUR EXISTING EXCHANGES WOULD

BE ELIGIBLE TO APPLY FOR PARTLY-PAID SHARES IN THE NEW EXCHANGE COMPANY. EACH SHARE WILL ENTITLE THE HOLDER TO MEMBERSHIP OF THE NEW EXCHANGE WHEN THE PREMISES ARE READY. THE SIZE OF PREMISES REQUIRED WILL BE DICTATED BY THE NUMBER OF DEALERS WHO WISH TO CARRY ON BUSINESS ON THE NEW EXCHANGE. WITH SEVERAL NEW LARGE PROPERTY DEVELOPMENTS COMING ON STREAM, IT IS EXPECTED THAT NEGOTIATIONS FOR A NEW FLOOR WOULD BE CONCLUDED WITHIN SIX MONTHS.

(3) THAT WHEN THE PREMISES ARE READY, THE NEW EXCHANGE

WILL COMMENCE OPERATIONS, THE FOUR EXISTING EXCHANGE COMPANIES WILL THEN GO INTO LIQUIDATION, AND THEIR ASSETS WILL BE DISTRIBUTED TO MEMBERS. THE STOCK EXCHANGE OF HONG KONG (LIMITED) WOULD THEN BE THE ONLY COMPANY LEGALLY ENTITLED TO UNDERTAKE STOCK EXCHANGE BUSINESS, AND

(4) THAT THE LEGISLATION FOR UNIFICATION, CURRENTLY

BEING PREPARED, SHOULD TAKE ACCOUNT OF THE ABOVE PROPOSALS AND THEIR IMPLEMENTATION.

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