XN000022-1994-01-12 — Page 12

11

WEDNESDAY, JANUARY 12, 1994

SINCE THE

TENDS ΤΟ

TRADING

OF

PRICE OF WARRANTS AND SHARES IN QUESTION MOVE IN PARALLEL, THE INSIDER CAN OBTAIN PROFIT FROM THE THE WARRANTS JUST AS HE CAN BY DEALING IN THE UNDERLYING SHARES.

ONE EXAMPLE OF DERIVATIVES FALLING INTO THE ABOVE CATEGORY THIRD PARTY ISSUED WARRANTS.

THE NUMBER OF THESE WARRANTS TRADED ON THE STOCK EXCHANGE

PRODUCT BEEN ON THE INCREASE SINCE THE LISTING OF THE FIRST SUCH DECEMBER 1989.

BY NOVEMBER 1993, THERE WERE 54 SUCH INSTRUMENTS TRADED ON THIS YEAR BY EXCHANGE. STOCK OPTIONS INTENDED TO BE INTRODUCED STOCK EXCHANGE OF HONG KONG LTD ARE ANOTHER EXAMPLE.

IS

HAS

IN

THE

THE

THE

"SIMILAR PROBLEMS ARISE WHEN A DERIVATIVE IS NOT LISTED ON

FALL OUTSIDE STOCK EXCHANGE OF HONG KONG LTD. AGAIN, SUCH PRODUCTS

MR TAM SAID. THE SCOPE OF THE ORDINANCE,

MAY

AMERICAN DEPOSITARY RECEIPTS EXAMPLES OF THESE INCLUDE THE WHICH ARE NOT LISTED IN HONG KONG WHILE THE UNDERLYING SECURITIES BE LOCAL STOCKS.

ΤΟ

COVER

THE BILL SEEKS TO EXTEND THE SCOPE OF THE ORDINANCE THIRD PARTY ISSUED DERIVATIVE PRODUCTS IN RESPECT OF LISTED SECURITIES THE LOCAL IN HONG KONG WHETHER OR NOT THESE PRODUCTS ARE TRADED ON STOCK EXCHANGE.

LOOPHOLE IN THE

SCOPE

"THE BILL IS INTENDED TO PLUG AN EXISTING LEGISLATION. IT DOES NOT COVER SUGGESTIONS SUCH AS WHETHER THE OF INSIDER INFORMATION SHOULD BE EXTENDED OR SHOULD INSIDER DEALING BE MADE A CRIMINAL OFFENCE.

"THESE ARE COMPLICATED

MATTERS WHICH

NEED TO BE REVIEWED

"T

SEPARATELY, MR TAM SAID.

THE BILL WILL BE GAZETTED ON FRIDAY (JANUARY 14).

OLD AGE PENSION SCHEME LEAFLET NOW AVAILABLE

HELP

THE PUBLIC

THE GOVERNMENT HAS PUBLISHED A LEAFLET TO UNDERSTAND BETTER THE PROPOSED OLD AGE PENSION SCHEME.

CHINESE, THE PRINTED IN FULL COLOUR AND IN BOTH ENGLISH AND

ITS LEAFLET EXPLAINS IN SIMPLE LANGUAGE THE PRINCIPLE OF THE SCHEME,

THE

POLICY GOVERNMENT'S ADVANTAGES AND

FOR THE ELDERLY, BENEFITS

INTENTION AND COMMITMENT AS WELL AS THE NEXT STEPS IT WILL TAKE.

A

SIMPLE

BETWEEN

COMPARISON

AND A CENTRAL

THE LEAFLET ALSO CONTAINS CONTRIBUTIONS AND PAYOUTS UNDER THE PROPOSED SCHEME PROVIDENT FUND.

/A SPOKESMAN