TNAG-2464-FCO40-3588-UK-business-interests-in-Hong-Kong-Jardine-Matheson-Holdings-1992 — Page 40

CONFIDENTIAL

PUSS LUNCH WITH SIR C POWELL: 8 APRIL

Current Jardines Issues

Secondary Listing

1.

This long running problem is all but settled.

Sir C Powell has successfully taken most of the steam out of

it. Jardines and the Stock Exchange of Hong Kong have reached agreement on an arrangement which would allow Jardines to transfer their primary listing to the London

Stock Exchange, and to retain a secondary listing in Hong

Kong. There has been a certain amount of tussle between Jardines and the Hong Kong Securities and Futures Commission about the detailed regulatory arrangements. Most of the points have now been ironed out. But before the secondary

listing can actually take effect, there will need to be an

MOU between the Stock Exchange of Hong Kong and the London

Stock Exchange to provide for regulatory arrangements satisfactory to the SFC. Sir Charles sees this as something

for the two Stock Exchanges to sort out, and has not asked

for any help from us.

2. On the application to Jardines of Hong Kong's takeover

code, Sir Charles again seems to have been successful in

defusing this as an issue (not least within Jardines). It

is now agreed that Jardines and the SFC will continue low- key discussions in the hope that a satisfactory arrangement can be found when the dust from the listing issue has settled in about a year's time.

Jardine Fleming Banking Licence

3. It has long been a sore point with Jardines that the

Hong Kong Government have so far refused to give Jardine

Fleming, their merchant banking arm, a full banking licence. As a locally-incorporated bank, Jardine Fleming would have to be predominantly owned by Hong Kong interests in order to

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CONFIDENTIAL