Hongkong Clearing today (Monday) announced that, effective 6 December 1999, companies registered in the British Virgin Islands (BVI) under the International Business Companies Act will be eligible to become Corporate Investor Participants in the Central Clearing And Settlement System (CCASS). Previously, Corporate Investor Participants were required to be companies established under the Hong Kong Companies Ordinance, or other legal entities incorporated under local legislation. 

Stewart Shing, Chief Executive of Hongkong Clearing, said: "This change extends our participant base by making the service available to the many Hong Kong businesses that register their operations in BVI. Hongkong Clearing may also study further extension by admitting companies registered in other jurisdiction."

Like all Investor Participants in CCASS, Corporate Investor Participants obtain legal and physical control over their shares. They also enjoy a range of additional benefits, including comprehensive nominee services, the receipt of annual reports and other corporate communications directly from issuers, and access to their CCASS accounts through touch-tone or screen phones. Several unique internal control features, such as counterparty lists and transaction limits for individual staff members, are also available to Corporate Investor Participants through this cost-effective service.

In addition, Investor Participants can subscribe to new share offerings using yellow forms and the new Electronic Initial Public Offering (EIPO) service, which debuted on 23 November 1999 with the launch of T S Telecom Technologies Limited (T S Telecom) on the Growth Enterprise Market. 

EIPO Service Debuts

Among the 8,515 applications received for T S Telecom' s IPO, 770 applications were made through the EIPO service, of which 156 Instructions (involving 11.63 million shares valued at $17.63 million) were from Investor Participants and 614 Instructions (involving 304.52 million shares valued at $461.40 million) from Brokers and Custodian Participants. 

Recent Service Enhancements

The introduction of the EIPO service was the latest in a series of services designed to make the Investor Account Service more useful and convenient for investors. In August 1999, Hongkong Clearing tailored-made an electronic competitive tendering mechanism in CCASS for the Exchange Fund Notes listed on the Stock Exchange. With similar arrangements, a non-competitive tendering mechanism was developed for the Hong Kong Mortgage Corporation Notes listed in October 1999. CCASS Participants, including Investor Participants, can now tender for and settle both types of Notes directly through CCASS. 

"These enhancements are important additions to Hong Kong's financial market infrastructure," said Mr Shing. "By expanding the scope and convenience of the Investor Account Service, we hope that more corporate and individual investors will choose to open accounts in CCASS."

As of 27 November 1999, Hongkong Clearing had received 2,671 applications for the Investor Account Service, including 2,301 applications for Individual Investor Accounts, 252 applications for Joint Individual Investor Accounts and 118 applications for Corporate Investor Accounts.