XN000022-1989-03-23 — Page 11

10

THURSDAY, MARCH 23, 1989

EXCO ENDORSES NEW LEVY ARRANGEMENTS

PRINCIPLE

THE EXECUTIVE COUNCIL HAS ENDORSED IN INTRODUCTION OF NEW STATUTORY LEVIES ON TRANSACTIONS ON THE STOCK FUTURES EXCHANGES.

THE

AND

ANNOUNCING THIS TODAY (THURSDAY), A GOVERNMENT SPOKESMAN SAID AND THAT WITH EFFECT FROM THE ESTABLISHMENT DAY OF THE NEW SECURITIES

(SFC), FUTURES COMMISSION

THE NEW LEVY FOR STOCK EXCHANGE TRANSACTIONS WILL BE 0.025 PER CENT PER TRANSACTION BUYER AND SELLER.

PAYABLE

BY BOTH

"THIS REPLACES THE EXISTING STOCK EXCHANGE LEVY EQUIVALENT AMOUNT," HE SAID.

OF AN

THE EXCHANGE AND

"UNDER THE NEW ARRANGEMENTS, THE STOCK BFC WILL EACH RECEIVE RALF (THAT IS 0.0125 PER CENT) OF THE AT THE INITIAL STAGE.

TO BE

NEW NEW LEVY

THE SPOKESMAN SAID THE AMOUNT OF THE LEVY

RECEIVED BY THE SFC WOULD BE SUBJECT TO REGULAR REVIEW BY THE EXECUTIVE COUNCIL WHILE THE AMOUNT TO BE RECEIVED BY THE STOCK EXCHANGE WOULD BR SUBJECT TO REVIEW BY THE GOVERNMENT WITHIN FOUR YEARS.

OF

THE NEW ARRANGEMENTS WERE THE RESULTS OF THE DISCUSSION BETWEEN THE FINANCIAL SECRETARY, MR PIERS JACOBS, AND THE CHAIRMAN

STOCK EXCHANGE OF THE COUNCIL OF THE

HONG

SIR KONG,

Q.W. LEE. FOLLOWING THE ADMINISTRATION'S ACCEPTANCE OF THE SECURITIES COMMISSION'S VIEW THAT THE EXISTING

CENT

EXCHANGE STOCK TRANSACTION LEVY SHOULD BE ABOLISHED.

0.025

PER

THE EXECUTIVE COUNCIL HAS ALSO ENDORSED THE ADMINISTRATION'S REQUIRED TO PAY DECISION THAT THE STOCK EXCHANGE WOULD NO LONGER BE THE GOVERNMENT AN ANNUAL FEE AND THAT THIS STATUTORY REQUIREMENT SHOULD BE REPEALED.

STOCK

SECTION 28 OF THE THE SPOKESMAN EXPLAINED THAT UNDER

то PAY ΤΟ EXCHANGES UNIFICATION ORDINANCE, THE EXCHANGE COMPANY HAD

A STOCK THE GOVERNMENT, IN RESPECT OF THE EXCLUSIVE RIGHT TO OPERATE

IF ANY, AS EXCHANGE, SUCH ANNUAL FEE,

MAY BE DETERMINED BY THE GOVERNOR IN COUNCIL.

"THE ANNUAL FEE IS COST-RELATED AND IS INTENDED TO RECOVER

COMMISSIONER FOR SECURITIES COSTS INCURRED BY THE OFFICE OF THE REGULATING THE ACTIVITIES OF THE STOCK EXCHANGE.

THE

IN

"IN VIEW OF THE IMPENDING ESTABLISHMENT OF THE SFC, OF SUPERVISING THE ACTIVITIES OF THE STOCK EXCHANGE WILL BE THE SFC, HE SAID.

UNDER THESE CIRCUMSTANCES, IT IS THEREFORE SECTION 28 OF THE STOCK EXCHANGES UNIFICATION ORDINANCE HE ADDED.

THE COSTS BORNE BY

DECIDED

THAT

BE REPEALED,

COUNCIL ALSO AGREED

IN

FOR FUTURES CONTRACTS, THE EXECUTIVE PRINCIPLE THAT A COMPARABLE LEVY WOULD BE CHARGED.

/11