XN000022-1993-07-07 — Page 38

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WEDNESDAY, JULY 7, 1993

THE

BILL TO REGULATE STOCK EXCHANGE LISTING

* * * * *

GOVERNMENT TODAY (WEDNESDAY) INTRODUCED A BILL INTO THE LEGISLATIVE COUNCIL TO ENSURE THE EFFECTIVE REGULATION OF LISTING MATTERS BY THE STOCK EXCHANGE.

MOVING THE SECOND READING OF THE STOCK EXCHANGES UNIFICATION (AMENDMENT) BILL 1993, THE SECRETARY FOR FINANCIAL SERVICES, MR MICHAEL CARTLAND, SAID AN EFFECTIVE REGULATION WAS CRUCIAL TO MAINTAINING THE CONFIDENCE OF INVESTORS IN THE STOCK MARKET AND TIIUS TO THE REPUTATION OF HONG KONG AS AN INTERNATIONAL FINANCIAL CENTRE.

THE BILL SEEKS TO CLARIFY THE POWER OF THE STOCK EXCHANGE OF HONG KONG LIMITED TO MAKE LISTING RULES AND TO ENSURE THAT IT ENJOYS STATUTORY IMMUNITY IN CARRYING OUT ITS LISTING FUNCTIONS.

IN DECEMBER 1991, THE SECURITIES AND FUTURES COMMISSION DEVOLVED THE PRIMARY RESPONSIBILITY FOR LISTING MATTERS TO THE EXCHANGE AND THESE FUNCTIONS ARE PERFORMED ON THE BASIS OF LISTING RULES MADE BY THE EXCHANGE UNDER THE STOCK EXCHANGE UNIFICATION ORDINANCE.

THE SECRETARY SAID THE EXISTING SCOPE OF THE RELEVANT PROVISION IN THE ORDINANCE WAS NARROW.

AS A EXCHANGE HAS WHICH MUST BE

RESULT, MR CARTLAND SAID, IT IS UNCLEAR WHETHER THE THE STATUTORY POWER TO PROMULGATE CERTAIN PROVISIONS INCLUDED IN THE LISTING RULES.

ANOTHER ISSUE WITH THE EXISTING PROVISION IS THE UNCERTAINTY AS TO THE IMMUNITY ENJOYED BY THE EXCHANGE IN CARRYING OUT LISTING FUNCTIONS.

"IN ORDER TO REMOVE ANY DOUBT ON THESE QUESTIONS, IT HAS BECOME NECESSARY то CLARIFY THE POWER FOR THE EXCHANGE TO MAKE EFFECTIVE LISTING RULES AND ΤΟ PROVIDE A CLEAR STATUTORY IMMUNITY TO THE EXCHANGE WITH REGARD TO LISTING MATTERS, HE SAID.

"

ON THE QUESTION OF IMMUNITY, IT IS ESSENTIAL THAT THE EXCHANGE SHOULD BE

ABLE TO ACT FIRMLY AND WITHOUT THE FEAR OF LIABILITY IN RELATION TO LISTING MATTERS, MR CARTLAND SAID.

"ANY UNCERTAINTY IN THIS REGARD WILL HINDER ITS ABILITY EFFECTIVELY TO PERFORM THESE FUNCTIONS, HE SAID.

T

IT 18 UNDERSTOOD THAT THREATS OF LEGAL ACTION EXCHANGE AND ITS LISTING COMMITTEE HAVE BEEN USED IN MANIPULATE THE LISTING PROCESS.

AGAINST THE ATTEMPTS

ΤΟ

HE SAID THE SERIOUSNESS OF THE MATTER WAS REFLECTED INSTANCES OF COMPANIES THREATENING TO SUE THE EXCHANGE IF TRADING THEIR SHARES WERE TO BE SUSPENDED.

BY

OF

DEBATE ON THE BILL WAS ADJOURNED.

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