XN000022-1994-07-25 — Page 6

MONDAY, JULY 25, 1994

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GOOD MARKET RESPONSE TO TENDER FOR EXCHANGE FUND NOTES

* * * * *

THE HONG KONG MONETARY AUTHORITY (HKMA) SAID THE MARKET RESPONSE TO THE TENDER TODAY (MONDAY) FOR THE FOURTH ISSUE OF $500 MILLION THREE-YEAR EXCHANGE FUND NOTES, THE FIRST BATCH TO MATURE AFTER JULY 1, 1997, WAS GOOD.

THE NOTES, WHICH CARRIED A COUPON RATE OF 6.95 PER CENT, WERE ABOUT 4.5 TIMES OVER-SUBSCRIBED.

THE AVERAGE

ACCEPTED PRICE WAS 100.43, GIVING AN ANNUALISED YIELD OF 6.9 PER CENT. THE YIELD WAS ABOUT 14 BASIS POINTS ABOVE THAT FOR THE THIRD ISSUE.

THE DIFFERENE IN YIELDS BETWEEN THE THIRD AND SECOND ISSUE ALSO WAS ABOUT 14 BASIS POINTS, REFLECTING THAT THE MARKET DEMANDED NO ADDITIONAL PREMIUM FOR THE LATEST ISSUE.

THE CHIEF EXECUTIVE OF HKMA, MR JOSEPH YAM, SAID HE WAS PLEASED WITH THE RESULT OF THE TENDER.

"THE TENDER OF THE ISSUE WENT WELL, SHOWING THAT THE MARKET DEMANDED NO ADDITIONAL PREMIUM ON THE ISSUE EVEN THOUGH IT IS FOR REPAYMENT AFTER JULY 1, 1997," HE ADDED.

"THIS PROVIDES SOLID EVIDENCE THAT THE MARKET HAS GIVEN A VOTE OF CONFIDENCE IN THE MAINTENANCE OF THE HONG KONG GOVERNMENT'S FINANCIAL STRENGTH BEYOND 1997."

MR YAM ADDED THAT THE FACT THAT HKMA HAD SECURED THE AGREEMENT FROM THE CHINESE SIDE TO RUN THE EXCHANGE FUND BILLS AND NOTES PROGRAMMES ON A CONTINUING BASIS EVEN IF THE MONEY BORROWED WAS FOR REPAYMENT AFTER JULY 1, 1997 HAD CONTRIBUTED TO THE CONFIDENCE OF THE MARKET.

IN VIEW OF THE GOOD MARKET RESPONSE TO THE LATEST THREE-YEAR EXCHANGE FUND NOTES, HKMA SAID IT WOULD ACTIVELY CONSIDER THE ISSUE OF FIVE-YEAR EXCHANGE FUND NOTES LATER THIS YEAR.

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WORK ARRANGEMENTS DURING RAINSTORMS URGED * * * * *

PRIOR AGREEMENT BETWEEN EMPLOYERS AND EMPLOYEES WITH REGARD то WORK ARRANGEMENTS AND CONTINGENCY MEASURES IN TIMES OF RAINSTORMS ARE IMPORTANT IN AVOIDING UNNECESSARY MISUNDERSTANDING AND DISPUTES.

IN RESPONSE TO PRESS ENQUIRIES, THE ACTING CHIEF LABOUR OFFICER (LABOUR RELATIONS), MR WILLIAM SIU, SAID TODAY (MONDAY) THAT STATUTORY REGULATIONS OF WORK ARRANGEMENTS IN TIMES OF RAINSTORMS WOULD NOT BE PRACTICABLE BECAUSE OF THE DIVERSITY IN NATURE AND REQUIREMENTS OF JOB IN VARIOUS TRADES AND INDUSTRIES.

H EMPLOYERS ARE STRONGLY ADVISED TO ADOPT A FLEXIBLE APPROACH IN DRAWING UP WORK ARRANGEMENTS DURING INCLEMENT WEATHER, MR SIU SAID.

TT

/"DUE CONSIDERATION