The Stock Exchange of Hong Kong issued a consultation paper in May 1999 in relation to the 1998/1999 review of certain chapters of the Exchange Listing Rules.

With regard to Chapter 17 which sets out the proposed requirements for share schemes, a number of respondents commented that the requirements are still too restrictive and should be further relaxed in order to allow listed issuers more flexibility in the operation of such schemes.

Having considered the comments from the respondents, the Exchange proposes to revise Chapter 17 further.  The new proposal includes certain fundamental changes from the proposals included in the consultation paper.  The Exchange has sent out a summary of the new proposal together with a commentary on major issues to certain parties including those who responded to the consultation paper and expects to receive their views by December 17, 1999.  The Exchange will then finalise the rule changes.

Copies of the summary of the new proposal with regard to Chapter 17 and the commentary on major issues are available from the Exchange for general information purpose.  Any request for such documents should be sent to Mr. Lawrence Fok at 36/F, Jardine House, 1 Connaught Place, Central, Hong Kong (up to December 3, 1999) and at 11/F, One International Finance Center, 1 Harbour View Street, Central, Hong Kong (from December 4,1999).

Corporate Communications Department