XN000022-1980-07-18 — Page 2

FRIDAY, JULY 18, 1980

STOCK EXCHANGES UNIFICATION BILL GAZETTED

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THE GOVERNMENT TODAY (FRIDAY) PUBLISHED THE STOCK EXCHANGES UNIFICATION BILL 1980 WHICH, IF PASSED BY THE LEGISLATIVE COUNCIL, WILL RESULT IN DUE COURSE IN THE REPLACEMENT OF THE PRESENT FOUR EXCHANGES BY THE UNIFIED EXCHANGE.

THE COMPANY WHICH WILL MANAGE THE UNIFIED EXCHANGE, THE STOCK EXCHANGE OF HONG KONG LIMITED, WAS INCORPORATED ON JULY 7.

THE COMPANY HAS AN AUTHORISED SHARE CAPITAL OF $100 MILLION AND TWO CLASSES OF SHARES - 'A' SHARES OF $100 000 PAR VALUE AND 'B' SHARES OF $50 000 PAR VALUE.

MEMBERS OF THE COMPANY WILL HOLD 'A' SHARES AND ASSOCIATE MEMBERS 'B' SHARES. BOTH TYPES OF SHARE WILL BE ISSUED IN PARTLY-PAID FORM THE 'A' SHARES AT $40 000 AND THE 'B' SHARES AT $20 000.

THE BILL IS THE RESULT OF DETAILED INVESTIGATION AND DISCUSSION BY A WORKING PARTY ON UNIFICATION ESTABLISHED IN MAY 1977.

THE WORKING PARTY, CHAIRED BY THE COMMISSIONER FOR SECURITIES AND INCLUDING REPRESENTATIVES OF THE EXISTING FOUR EXCHANGES, HELD 20 MEETINGS DURING THE ENSUING THREE YEARS.

QUESTIONNAIRES WERE ALSO SENT TO ALL MEMBERS OF THE FOUR EXCHANGES AND REPRESENTATIONS WERE RECEIVED FROM MEMBERS OF THE HONG KONG STOCKBROKERS' ASSOCIATION. THE BILL ALSO REFLECTS THE VIEWS EXPRESSED TO THE COMMISSIONER AT MEETINGS HELD TO EXPLAIN THE PROPOSALS AT THE FOUR EXCHANGES.

A GOVERNMENT SPOKESMAN, EXPLAINING WHY UNIFICATION WOULD SERVE THE BEST INTERESTS OF THE INVESTING PUBLIC, SAID IT WILL RESULT IN A BROADER MARKET AND WILL CLEARLY INCREASE THE ATTRACTIVENESS TO OVERSEAS INVESTORS OF INVESTMENT IN HONG KONG SECURITIES.+

+UNIFICATION, HE SAID, WOULD ALSO BE CONDUCIVE TO THE BETTER MANAGEMENT OF THE STOCK MARKET AND TO THE MORE EFFECTIVE REGULATION OF STOCKBROKERS,+

+AS SUCH, THE SPOKESMAN SAID, IT WILL BE IN KEEPING WITH HONG KONG'S POSITION AS A MAJOR FINANCIAL CENTRE.+

THE BILL OUTLINES THE FRAMEWORK FOR THE UNIFIED EXCHANGE AND THE SUCCESSIVE STEPS TO BE TAKEN TO BRING IT INTO OPERATION.

/UNIL THE