The Hong Kong Futures Exchange said today that it would address immediately Government proposals that it, and the Stock Exchange of Hong Kong, should demutualise and merge within seven months. The statement followed the announcement of a series of proposed reforms outlined by the Financial Secretary in his 1999/2000 Budget Address.

The Board of the Exchange met today to consider the recommendations and its chairman, Dr Geoffrey Yeh who is out of Hong Kong, participated by telephone.

Commenting on his behalf, Dr Bill Kwok, acting chairman, said "We were advised by the Financial Secretary's office this afternoon of the full text of his recommendations and we will be pleased to play an active role in reviewing them and discussing them with our Members and all parties concerned. The recommended seven month time frame would be exacting, but the Board of the Hong Kong Futures Exchange is committed to contributing to any structural changes that will assist Hong Kong to enhance its role as an international financial centre."

Dr Kwok said that the Hong Kong Futures Exchange Board had met following the announcement and has decided that it will seek independent professional advice at the appropriate time on the value of the Exchange and other shareholder rights.

The Hong Kong Futures Exchange is a leading futures and options marketplace in the Asia Pacific Region, with a membership of over 130 companies, including a number of major international institutions. The Exchange is actively diversifying its product base, which now includes currency, interest rate and equity-based products.

For further enquiries, please contact HKFE Corporate Communications Manager Miss Chiu Yeung on 2842 9322.