XN000022-1994-01-26 — Page 24

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WEDNESDAY, JANUARY 26, 1994

CODES OF CONDUCT AGAINST MALPRACTICES

THE SECURITIES AND FUTURES COMMISSION AND THE TWO

EXCHANGES

HAVE SO FAR NOT IDENTIFIED ANY EVIDENCE OF ACTIVITIES INVOLVING MEMBERS INVESTING ON THEIR OWN ACCOUNT UPON ADVANCE KNOWLEDGE OF PENDING TRANSACTIONS.

NEITHER HAVE THEY IDENTIFIED MEMBERS INVESTING ON THEIR OWN ACCOUNT

OF ON ANY OTHER NON-PUBLIC INFORMATION THE DISCLOSURE

WHICH WOULD BE EXPECTED TO AFFECT PRICES.

THIS WAS STATED BY THE SECRETARY FOR FINANCIAL SERVICES, MR MICHAEL CARTLAND, WHEN REPLYING TO A QUESTION BY THE HON ERIC LI KA- CHEUNG IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

CODES

MR CARTLAND SAID THERE WERE PROVISIONS IN THE RESPECTIVE OF CONDUCT OF THE STOCK EXCHANGE OF HONG KONG LTD AND THE HONG KONG FUTURES EXCHANGE LTD STIPULATING AGAINST SUCH ACTIVITIES.

SIMILAR PROVISIONS ARE ALSO INCLUDED IN THE CODES OF CONDUCT FOR REGISTERED PERSONS IN THE FINANCIAL INDUSTRY BEING FINALISED BY THE SECURITIES AND FUTURES COMMISSION, HE SAID.

THE INDUSTRY HAS BEEN CONSULTED ON THE DRAFT CODES WHICH ARE EXPECTED TO BE EFFECTIVE ON FEBRUARY 1.

THE SECRETARY SAID FAILURE TO COMPLY WITH SUCH REQUIREMENTS WOULD RESULT IN DISCIPLINARY ACTIONS BY THE MARKET REGULATORS.

0

-

NO FINANCIAL LINK BETWEEN AIRPORT RAILWAY AND MTR SYSTEM

THE AIRPORT

PROGRAMME

EXISTING MASS TRANSIT RAILWAY (MTR) SYSTEM ARE TWO ENTIRELY

AND

THERE

PROJECTS PROJECTS, SECRETARY LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

AND THE IMPROVEMENT RAILWAY

FOR THE SEPARATE

IS NO REASON TO LINK

OF THESE THE FINANCING FOR TRANSPORT,

MR HAIDER BARMA, TOLD THE

LIM,

IN A WRITTEN REPLY TO A QUESTION BY THE HON STEVEN POON MR BARMA SAID THE TWO PROJECTS DID NOT AFFECT OR

KWOK- PRECLUDE EACH

OTHER.

INJECTION OF AIRPORT

"THE AIRPORT RAILWAY WOULD BE FINANCED THROUGH EQUITY BY GOVERNMENT, BORROWING BY THE MTRC AND PROFITS FROM RAILWAY PROPERTY DEVELOPMENTS.

"THE EXPENDITURE OF $8 BILLION ON THE MTR IMPROVEMENT PROGRAMME HAS BEEN FULLY ALLOWED FOR IN THE CORPORATION'S FINANCIAL PLANS.

MET BY

$2

OF

HE $8 BILLION, THE

SAID, $6

BE BILLION CAN

DEPRECIATION CHARGES

OVER THE YEARS, WHILE THE REMAINING MADE BILLION WILL BE FUNDED BY INTERNAL RESERVES AND BORROWINGS.

THIS WILL NOT AFFECT THE CORPORATION'S ABILITY TO RAISE FOR THE AIRPORT RAILWAY, MR BARMA SAID.

FUNDS

/"IT IS