XN000022-1987-10-28 — Page 21

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WEDNESDAY, OCTOBER 28, 1987

CONCLUDING HIS SPEECH WITH AN APPEAL ΤΟ BUSINESSMEN TO TAKE THE OPPORTUNITY TO INVEST IN HONG KONG, SIR DAVID SAID TERRITORY'S ABILITY TO ADJUST TO CHANGE WAS A GREAT STRENGTH.

THE

VAST

"IF LIVING IN HONG KONG IS SOMETIMES LIKE LIVING IN A BUILDING SITE; IF IT SOMETIMES SEEMS THAT THE ROADS ARE PERMANENTLY UNDER REPAIR; THAT'S THE PRICE WE HAVE TO PAY. FAR BETTER THAT THAN THE PEACE AND QUIET OF A STAGNANT ECONOMY."

EXCHANGES ORDINANCE TO TAKE EFFECT FROM TOMORROW

AFTERNOON THAT

THE GOVERNMENT ANNOUNCED LATE THIS (WEDNESDAY) THE EXCHANGES (SPECIAL LEVY) ORDINANCE 1987 WILL COME INTO OPERATION ON OCTOBER 29, 1987. THE MAIN PURPOSE OF THE ORDINANCE IS TO IMPOSE SPECIAL LEVY ON ALL TRANSACTIONS ON THE HONO KONG FUTURES EXCHANGE AND THE STOCK EXCHANGE OF HONG KONG.

A

THE RELEVANT BILL PASSED ALL THREE READINGS IN THE LEGISLATIVE COUNCIL THIS AFTERNOON.

OF

THE SPECIAL LEVY AMOUNTS TO $30 FOR EACH SALE OR PURCHASE STOCK INDEX FUTURES CONTRACT, PAYABLE THROUGH THE CLEARING HOUSE ΤΟ THE HONG KONG FUTURES EXCHANGE AT THE TIME OF REGISTRATION OF THE TRANSACTION.

ON THE STOCK EXCHANGE OF HONG KONG, THE SPECIAL LEVY WILL BE 0.03 PER CENT OF THE VALUE OF A PURCHASE OR SALE OF SECURITIES RECORDED BY THE EXCHANGE.

A GOVERNMENT SPOKESMAN SAID THAT WHILE THE OBLIGATION TO PAY THE LEVY WOULD BE PLACED BY THE LAW ON THE RESPECTIVE EXCHANGES THE ACTUAL COST WOULD BE PAID BY THE BUYERS AND SELLERS WHO WOULD PAY THE SPECIAL LEVY AT THE TIME OF SETTLING THE PAYMENT OF THE TRANSACTION. IN BOTH CASES, THE SPECIAL LEVY WOULD BE IN ADDITION TO THE LEVIES ALREADY IMPOSED BY THOSE EXCHANGES FOR DIFFERENT PURPOSES, AND WOULD BE KEPT SEPARATE FROM THOSE LEVIES.

THE EXCHANGES WOULD BE MAKING RULES REQUIRING BROKERS TO COLLECT THE SPECIAL LEVY, AND TO PAY IT TO THEM, AND THE EXCHANGES WOULD IN TURN BE REQUIRED TO PAY THE SPECIAL LEVY ON A MONTHLY BASIS

TO THE DIRECTOR OF ACCOUNTING SERVICES, TRUSTEE OF THESE MONIES.

THE DIRECTOR WOULD HOLD AND DISBURSE THE MONEY SO COLLECTED ΤΟ LENDERS IN ACCORDANCE WITH THE AGREEMENTS DRAWN UP TO PROVIDE BACK-UP CREDIT FACILITIES TO THE GUARANTEE CORPORATION TO ENABLE IT ΤΟ FINANCE THE SETTLEMENT OF ITS OBLIGATIONS.

THE SPOKESMAN ALSO SAID IT WAS INTENDED AT AN APPROPRIATE TIME, WHEN THE INTEREST AND PRINCIPAL OF THE LOANS HAD BEEN REPAID TO THE LENDERS OF THE SUPPORT FACILITY, TO REVIEW THE NEED FOR THE SPECIAL

ᏞᎬᏙᎢ .

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