Hongkong Clearing today (Monday) announced that, effective immediately, it will waive the deposit requirement for new Investor Accounts in the Central Clearing And Settlement System (CCASS) and the minimum monthly Stock Custody Fee. Previously, a $1,000 deposit was required for each Investor Account, which was also subject to a minimum Stock Custody Fee of $20 per month.

Both waivers will remain in effect until 31 December 2000, and Investor Participants who have already paid the $1,000 deposit will have it refunded to their Designated Bank accounts in February 2000. The monthly Stock Custody Fee will continue to be assessed at $0.012 per board lot or odd lot for registered securities, and at 0.012% per annum on the nominal value of bearer debt securities, calculated on a daily basis (calculation for Stock Custody Fee for bearer debt securities also applies to Exchange Fund Notes, Hong Kong Mortgage Corporation Notes and other specified instruments.).

With an Investor Account, investors are able to control movements of their shares deposited in CCASS and enjoy better legal protection of their shareholdings. "The waivers make the Investor Account Service more attractive for all investors, especially those who trade infrequently or have smaller portfolios," said Stewart Shing, Hongkong Clearing's Chief Executive. "By minimising the cost of opening and operating an account, and by introducing new facilities like Internet access, we are committed to making the Investor Account Service a cost-effective and convenient tool for Hong Kong's investors."

In the second quarter of 2000, Hongkong Clearing will allow Investor Participants to access their CCASS accounts via the Internet. Using any computer with an Internet connection, Investor Participants will be able to obtain statements, view circulars, affirm Investor Settlement Instructions, check account balances, and issue instructions on corporate activities. The Internet facility will complement the existing CCASS Phone System, an interactive voice-response system specifically designed for the operation of Investor Accounts.

In addition, the Company's Electronic Initial Public Offering (eIPO) service, which allows Investor Participants to subscribe to new share offerings using the CCASS Phone System, will be available through the Internet. Investor Participants will also be able to tender for and settle Exchange Fund Notes and Hong Kong Mortgage Corporation Notes on the Internet.

Investors interested in opening an Investor Account can obtain application forms from Hongkong Clearing's Depository Service Counters Hall (Address: 2/F., Vicwood Plaza, 199 Des Voeux Road Central, Hong Kong) or Investor Service Centre (Address: Room 1901, Chinachem Exchange Square, 1 Hoi Wan Street, Quarry Bay, Hong Kong). They can also call the Investor Service Enquiry Hotline at 2979 7000 for more information.

Applications for the Investor Account Service have been increasing steadily since its launch in 1998. As of 12 February 2000, Hongkong Clearing had received a total of 2,964 applications, including 2,557 applications for Individual Accounts, 283 applications for Joint Individual Accounts and 124 applications for Corporate Accounts.