XN000022-1994-06-01 — Page 13

Daily Information Bulletin 新聞公報 All

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WEDNESDAY, JUNE 1, 1994

REMOVE

THE

IT IS ALSO PROPOSED TO

APPROVED BORROWER REQUIREMENT AND TO REPLACE THE SOLE PURPOSE TEST WITH A NUMBER OF "SPECIFIED PURPOSES" SUCH AS THE BORROWING OF STOCK FOR SETTLING A FUTURE SALE, FOR ON-LENDING TO ANOTHER PERSON OR FOR SETTLING A SALE EFFECTED OUTSIDE HONG KONG.

THE INLAND REVENUE ORDINANCE WILL BE AMENDED AT THE SAME TIME.

IN THE ABSENCE OF SPECIFIC PROVISIONS, A STOCK BORROWING AND LENDING WOULD BE TREATED AS INVOLVING A TRANSFER OF TITLE AND AS A SALE AND PURCHASE OF STOCK FOR PROFITS TAX PURPOSE.

IT IS NOW PROPOSED TO TREAT A DISPOSAL AND THE SUBSEQUENT RE-ACQUISITION OF STOCK UNDER A STOCK BORROWING ARRANGEMENT AS A LOAN TRANSACTION. CONSEQUENTLY NO PROFIT OR LOSS WILL EMERGE FOR PROFITS TAX PURPOSE.

"THE AMENDMENTS WILL HELP THE DEVELOPMENT OF AN ACTIVE STOCK BORROWING AND LENDING MARKET AND SHORT-SELLING IN HONG KONG.

"THIS IS ALSO INSTRUMENTAL FOR THE INTRODUCTION OF STOCK OPTIONS BY THE SEHK SINCE OPTIONS ARE COMMONLY TRADED IN CONJUNCTION WITH SHORT-SELLING," MR CARTLAND SAID.

"MOST IMPORTANT OF ALL, THE DEVELOPMENT OF THE STOCK BORROWING AND LENDING INDUSTRY IN HONG KONG WILL IMPROVE OUR COMPETITIVENESS WITH OTHER MAJOR SECURITIES MARKETS IN THE WORLD, HE ADDED.

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THE TWO BILLS WILL BE PUBLISHED IN THE

(JUNE 3).

GOVERNOR VISITS TUEN MUN

GAZETTE ON FRIDAY

* * * * *

THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN, TODAY (WEDNESDAY) VISITED TUEN MUN TO FAMILIARISE HIMSELF WITH THE LATEST DEVELOPMENTS IN THE DISTRICT TODAY (WEDNESDAY).

HE FIRST PROCEEDED TO THE CMA CHOI CHEUNG KOK PRE-VOCATIONAL SCHOOL WHICH PROVIDES STUDENTS WITH A WIDE SPECTRUM OF SUBJECTS RANGING FROM ELECTRICAL SKILLS AND TECHNICAL DRAWING TO ART AND DESIGN.

MR PATTEN THEN TOURED THE SECOND FLOOR ARCADE OF WALDORF GARDEN WHERE KARAOKES, JAPANESE COMIC BOOK STORES, MODEL ΤΟΥ SHOPS AND A TELEVISION GAME PARLOUR NOW DOMINATE THE BUSINESS UNITS.

OFFICIALS ALSO DESCRIBED IT AS A POSSIBLE BREEDING GROUND FOR

JUVENILE DELINQUENCY.

THE THIRD FLOOR, HOWEVER, IS A POPULAR SHOPPING AREA.

/MR PATTEN'S

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