XN000022-1988-06-28 — Page 3

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TUESDAY, JUNE 28, 1988

DAVID NENDICK WELCOMES EXCHANGE'S VOLUNTARY EFFORTS

TODAY

THE ACTING FINANCIAL SECRETARY, MR DAVID NENDICK, WELCOMED THE STOCK EXCHANGE'S VOLUNTARY EFFORTS IN BRINGING ABOUT EARLY IMPLEMENTATION OF THE MAJORITY OF THE SECURITIES REVIEW COMMITTEE'S RECOMMENDATIONS FOR THE RECONSTITUTION OF THE COMMITTEE OF THE STOCK EXCHANGE OF HONG KONG LTD.

THE SECURITIES REVIEW COMMITTEE RECOMMENDED THAT THE GOVERNING HODY OF THE EXCHANGE SHOULD BE RECONSTITUTED AS A COUNCIL WITH A BROADLY-BASED MEMBERSHIP OF 22, INCLUDING THE CHIEF EXECUTIVE WHO WOULD BE RESPONSIBLE FOR ITS DAILY OPERATIONS.

THE NECESSARY AMENDMENTS TO THE EXCHANGE'S MEMORANDUM AND ARTICLES OF ASSOCIATION TO EFFECT THESE CHANGES, AS PROPOSED BY THE EXCHANGE, HAVE BEEN APPROVED BY THE SECURITIES COMMISSION.

THE MANAGEMENT COMMITTEE OF THE EXCHANGE WILL COMMEND THEM TO ITS MEMBERS AT AN EXTRAORDINARY GENERAL MEETING SCHEDULED FOR JULY 20.

IF THE EXCHANGE'S PROPOSALS ARE SUCCESSFULLY IMPLEMENTED, THIS WILL SIGNIFICANTLY REDUCE THE TIME REQUIRED FOR ESTABLISHING THE FIRST COUNCIL, WILLCH CAN THEN BE IN PLACE BY OCTOBER THIS YEAR. WERE LEGISLATION REQUIRED, THE COUNCIL MIGHT NOT BE IN PLACE UNTIL AT LEAST THE END OF THE YEAR.

ENDORS ING THE EXCHANGE'S INITIATIVE, MR NENDICK SAID: **THE INITIATIVE SHOWN BY THE MANAGEMENT COMMITTEE OF THE STOCK EXCHANGE IS A COMMENDABLE MOVE WHICH WILL SPEED UP THE IMPLEMENTATION OF 'THE SECURITIES REVIEW COMMITTEE'S RECOMMENDATIONS."

"IT ALSO DEMONSTRATES THE EXCHANGE'S WILLINGNESS ΤΟ CO-OPERATE WITH GOVERNMENT IN ENSURING THAT HONG KONG'S SECURITIES INDUSTRY PLAYS ITS FULL PART IN MAINTAINING OUR POSITION AS AN INTERNATIONAL FINANCIAL Centre, HE SAID.

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MR NENDICK WISHED THE EXCHANGE EVERY SUCCESS IN ITS ENDEAVOURS, AND HOPED THAT A SUFFICIENT NUMBER, I.E. OVER 75 PER CENT, OF MEMBERS WOULD VOTE FOR THE AMENDMENTS ON JULY 20 FOR THEM TO BE IMPLEMENTED, SO THAT GOVERNMENT WOULD NOT HAVE TO CONSIDER THE OPTION OF BRINGING ABOUT THE NECESSARY CHANGES THROUGH LEGISLATION.

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