The Stock Exchange of Hong Kong signed today (Monday) an agreement with China 's Ministry of Finance for listings of bonds issued by the People's Republic of China .

The Listing Agreement, which replaces one signed in 1993, has incorporated several minor technical updates.  It was signed at a ceremony attended by a delegation led by Xiang Huaicheng , China 's Minister of Finance.  The agreement was signed by Zhu Guangyao, Director General, International Department of the Ministry of Finance, and Alec Tsui, the Exchange's Chief Executive.

Since 1993, there have been seven issues of Chinese bonds on the Exchange, including the latest US$l billion bond due 2007, which was listed on December 16, 1998.

Tung Chee Hwa, the Chief Executive of the HKSAR, proposed a toast to the successful development of the Hong Kong debt market.

"We strongly support Hong Kong in her efforts to develop a full-fledged bond market, and to maintain her importance as one of the world's financial centers.  The decision by the Ministry of Finance of the PRC to list the Global Bond in the Hong Kong Stock Exchange and myself being here today at this listing signing ceremony, are to help achieve this objective," said Xiang Huaicheng, China's Minister of Finance.

" Hong Kong has been playing the role of the fund raising centre for Mainland enterprises.   deeply believe that the bonds issued by the Ministry of Finance will soon develop as another successful product in the Hong Kong market.  Quality bonds will help creating the critical mass in Hong Kong, enhancing liquidity which in turn will attract more tradings to be conducted in Hong Kong and as a result increase the potential of development for our debt market," said Donald Tsang, Financial Secretary of the HKSAR, at the ceremony

Lee Hon Chiu, the Exchange chairman, said China 's Ministry of Finance was a major issuer in the debt securities market.  "The Ministry of Finance's support will help develop an active secondary market in Hong Kong for debt securities."

Mr Lee also said the Exchange would introduce measures to develop a retail market for fixed income instruments in Hong Kong .  "The Exchange will consult the market on the listing and trading of fixed income instruments in the first quarter of 1999.  It expects to have the first listing of Exchange Fund Notes issued by the Hong Kong Special Administrative Region in the third quarter," he said.

Today's ceremony was also attended by Tung Chee Hwa, the Chief Executive of the HKSAR, Jiang Enzhu, Director of Xinhua News Agency (Hong Kong Branch), Ma Yuzhen, Commissioner, China's Ministry of Foreign Affairs in HKSAR, Donald Tsang, the Financial Secretary of HKSAR, Rafael Hui, Secretary for Financial Services, Joseph Yam, Chief Executive of the Monetary Authority, and Laura Cha, Deputy Chairman of the Securities and Futures Commission.

Corporate Communications Department