XN000022-1989-12-20 — Page 3

WEDNESDAY, DECEMBER 20, 1939

INTRODUCTION OF A THREE-MONTH INTERBANK OFFERED

RATE FUTURES CONTRACT

THE GOVERNOR IN COUNCIL HAS APPROVED A PROPOSAL FROM

INTRODUCE KONG FUTURES EXCHANGE (HKFE) TO

A THREE-MONTH INTERBANK OFFERED RATE (HIBOR) FUTURES CONTRACT.

THE

HONG

JONG

KONG

SAID

ANNOUNCING THIS TODAY (WEDNESDAY), A GOVERNMENT SPOKESMAN AN ORDER HAD BEEN MADE BY THE GOVERNOR IN COUNCIL. UNDER SECTION 115 OF THE COMMODITIES TRADING ORDINANCE TO AMEND THE FIRST SCHEDULE OF DE TRADED ON THE ORDINANCE TO ENABLE THE 1BOR FUTURES CONTRACTS TO THE HKFE.

(SFC)

COMMISSION SINCE MAY 1, 1999 THE SECURITIES AND FUTURES-

THE IKFE HAS BEEN WORKING CLOSELY WITH

TO ENSURE THAT THERE ARE ADEQUATE MECHANISMS IN THE TIBOR CONTRACT PROPOSAL AND ITS OPERATION TO PROTECT MARKET USERS.

"WE RECOGNISE THAT THERE 15 A PERCEIVED NEED IN THE MARKET PLACE FOR THE H|BOR CONTRACT.

WE SUPPORT THE SFC'S RECOMMENDATION SUBJECT TO ADEQUATE THAT TRADING IN THE CONTRACT SHOULD BE ALLOWED,

APPROPRIATE DEGREE SAFEGUARDS FOR THE INTEGRITY OF THE MARKET AND AN OF INVESTOR PROTECTION,' THE SPOKESMAN SAID.

"THE SFC HAS CONFIRMED THAT A PROPER REGULATORY FRAMEWORK, INCLUDING RISK MANAGEMENT HEASURES IS NOW IN PLACE, HE ADDED.

+

r

THE HIDOR CONTRACT WILL PROVIDE A HEDGING MECHANISM TO PROTECT BORROWERS AND LENDERS AGAINST AÐVERSE INTEREST BATTE MOVEMENTS.

COMMITMENT OF THIS WILL ENCOURAGE THE

INVESTIBLE FUNDS AND TURN ASSUMPTION OF DEBT OBLIGATIONS FOR LONGER PERIODS, WHICH WILL IN

OP THE MONTY HELP REMOVE ONE OF THE MAJOR CONSTRAINTS ON THE GROWTH AND CAPITAL MARKETS IN HONG KONG.

AS IKFE WILL REQUIRE TIME FOR SYSTEM TESTING BEFORE TRADING THE CONTRACT CAN BE COMMENCED, THE COMMODITIES TRADING UMENDMENT FIRST SCHEDULE) ORDER 1389 WILL BE BROUGHT INTO EFFECT ON A DAY TO APPOINTED BY THI GOVERNOR.

IN

OF BE

SINO-BRITISH LAND COMMISSION HOLDS 19TH MEETING

WAS HELD THE 18TH MEETING OF THE SINO-BRITISH LAND COMMISSION

THE AVERAGE COST OF TODAY (DECEMBER 20). TAK TWO SIDES AGREED THAT

ᏢᎬᎡ LAND PRODUCTION FOR THE 1989-90 FINANCIAL YEAR WOULD BE HK$2,390 SQUARE METRE.

THE REVIEWED SUPPLEMENTARY

1989-90 LAND LAND DISPOSAL

IN ADDITION, THE LAND

COMMISSION

THE

DISPOSAL PROGRAMME AND AGREED THAT PROGRAMME WOULD NOT BE DRAWN ON AT THIS STAGE.

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