TNAG-2792-FCO40-4031-Relations-between-Hong-Kong-and-China-1993 — Page 112

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

GF 323

CONFIDENTIAL

18

機密

announced that

the

provinces

1995

share

issue quotas assigned to the

and autonomous regions will not be relaxed until at the earliest when proper regulations will have been

in place.

28.

The pace of reform in the securities sector seems

to have accelerated more recently. In May 1993, the "Interim Regulations on the Administration of the Issue and Trading of Shares" were promulgated to replace the rules implemented separately in Shanghai and Shenzhen. However, these regulations only cover the issuance and trading of A

shares.

Other important areas like management and

operation of the stock exchanges, investment funds, securities companies, and listing of B shares and of shares abroad, are largely untouched.

29.

On 19 June 1993, а Memorandum of Regulatory

Co-operation (MORC) was concluded between the Securities and Futures Commission and the Hong Kong Stock Exchange and

their counterparts in China, i.e. the Shanghai Stock

Exchange, the Shenzhen Stock Exchange and the China

Securities Regulatory Commission.

relevant

laws

Under the MORC, a new

class of H shares was allowed to be issued by state-owned

enterprises in China for listing in Hong Kong. In order to be so listed, these enterprises are required to comply with

Hong Kong's established accounting practice as well as its and non-statutory requirements. These

include, in particular, the relevant parts of the

Securities Ordinance, the Securities (Insider-Dealing)

Ordinance, and the Companies Ordinance. In addition, the

issuer has to observe certain listing rules stipulated by

the Hong Kong Stock Exchange. The more important

stipulations are that all its issued H shares should be held by the public, unless permitted otherwise; that the

higher of HK$50 million or 10% of its total issued capital

be made in H shares; and that an aggregate of A shares and shares amounting to no less than 25% of its total issued

share capital be held by the public.

H

CONFIDENTIAL

機密

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