Good afternoon, ladies and gentlemen,

Welcome to the first news conference given by Hong Kong Exchanges and Clearing Limited, which we can refer to more easily as Hong Kong Exchanges. I am delighted to be with you today, and happy to see many familiar faces.

Today marks the completion of the merger of the stock and futures exchanges and the clearing houses into Hong Kong Exchanges. The company is now well set to start a new chapter in the development of Hong Kong's financial markets. I have pleasure in introducing to you the key executives of the company -- Mr. Kwong Ki-chi, the Chief Executive, and Mr. Alec Tsui Yiu-wa, the Chief Operating Officer.

Mr. Kwong is well known to many of you. He has extensive experience in public administration and exposure in various public policy areas, in particular technology. As technology is playing an increasingly important role in the operations of exchanges, Mr. Kwongs experience in this area will prove invaluable and his joining promises to bring a new dimension of expertise.

I am sure most of you here know Alec Tsui quite well. He has overseen the development of the Stock Exchange in the last three years during which unprecedented challenges were seen in our financial markets.

The merger brings many advantages such as economies of scale, greater efficiency, reduced costs, and more financial strength for developing state-of-the-art electronic trading systems. In addition, market coherence will be improved, and risk management enhanced.

The larger scale of resources and performance-driven orientation of the new company will increase its competitiveness and will give it greater leverage and appeal in the forming of strategic partnerships with leading international exchanges, to serve global investors and issuers.

Hong Kong Exchanges has planned for a listing to take place in the third quarter of this year. This listing plan reflects Hong Kong Exchanges' corporate aim of instituting a service-based and performance-driven culture which is in the best interests of its shareholders. But this profit motive will not override our commitment to perform our public duty of ensuring a fair, open and orderly market in Hong Kong.

Our strategy and vision will be focussed on several key directions.

Hong Kong Exchanges will provide services that add real value for investors, market intermediaries and listed companies. It will continue to lead in innovation of products and services. The integration of equity and derivatives markets under one unified management completes the circle by providing ready and complementary investment, hedging and risk management facilities.

The Hong Kong securities market will continue to serve as a leading capital formation centre for Mainland enterprises, to support Chinas capital needs to finance its rapid economic development and modernisation in the new economy. Hong Kong Exchanges global focus and orientation will also reinforce Hong Kongs role as the major gateway for international investors into China.

Hong Kong Exchanges will seek alliance opportunities with other major international exchanges to establish Hong Kong as a major trading centre and regional hub for global stocks in the Asian time zone, and advance Hong Kongs stature as an international financial centre. The initiative will also strengthen Hong Kong's position as an integral part of a 24-hour trading platform linking the three main time zones of Europe, America and Asia.

Hong Kong Exchanges is also committed to investing in technology to increase the speed and efficiency of transactions, and expand the compatibility and linkage of its trading and settlement systems enabling the early realisation of straight-through-processing.

Change and challenge will be a central part of the external environment in the future. The market integration will place Hong Kong Exchanges in a good position to meet challenges ahead. I am confident that the new company, with its strong governing board and management team, will occupy a leading position in the financial markets of the world.

Thank You.