HKFE Announces Revised Margins for Futures Contracts

Market Operations

29 May 2002

Hong Kong Futures Exchange Limited (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), announced today that with effect from the commencement of trading on Friday, 31 May 2002, the minimum margins to be collected by an Exchange Participant from its clients in respect of their dealings in the following futures contracts will be as outlined in the table below. The adjustments are based on the clearing company's normal procedures and standard margining methodology.

For the current margins, please refer to HKEx's website (http://www.hkex.com.hk) and see Trading Information - Futures & Options in the Derivatives Market section.

Futures Contract	Margin Rate	Initial Margin (HK$)		Maintenance Margin (HK$)
Hang Seng Index	Full Rate	37,500	per lot	30,000	per lot
Hang Seng Index	Spread Rate	3,750	/lot/side	3,000	/lot/side
Mini-Hang Seng Index	Full Rate	7,500	per lot	6,000	per lot
Mini-Hang Seng Index	Spread Rate	750	/lot/side	600	/lot/side
MSCI China Free Index	Full Rate	11,250	per lot	9,000	per lot
MSCI China Free Index	Spread Rate	1,690	/lot/side	1,352	/lot/side
Three-Month HIBOR	Full Rate	2,500	per lot	2,000	per lot
Three-Month HIBOR	Spread Rate	Please refer to		the attached table
One-Month HIBOR	Full Rate	1,875	per lot	1,500	per lot
One-Month HIBOR	Spread Rate	Please refer to		the attached table
Three-Year EFN	Full Rate	11,000	per lot	8,800	per lot
Three-Year EFN	Spread Rate	1,650	/lot/side	1,320	/lot/side
Dow Jones Industrial Average Index	Full Rate	6,500	per lot	5,200	per lot
Dow Jones Industrial Average Index	Spread Rate	975	/lot/side	780	/lot/side
HSBC Holdings Plc	Full Rate	2,480	per lot	1,984	per lot
HSBC Holdings Plc	Spread Rate	375	/lot/side	300	/lot/side
Pacific Century CyberWorks Ltd	Full Rate	180	per lot	144	per lot
Pacific Century CyberWorks Ltd	Spread Rate	30	/lot/side	24	/lot/side
Cheung Kong (Holdings) Ltd	Full Rate	4,900	per lot	3,920	per lot
Cheung Kong (Holdings) Ltd	Spread Rate	735	/lot/side	588	/lot/side
Swire Pacific Ltd 'A' Shares	Full Rate	2,150	per lot	1,720	per lot
Swire Pacific Ltd 'A' Shares	Spread Rate	320	/lot/side	256	/lot/side
CITIC Pacific Ltd	Full Rate	1,180	per lot	944	per lot
CITIC Pacific Ltd	Spread Rate	180	/lot/side	144	/lot/side
China Resources Enterprise Ltd	Full Rate	1,500	per lot	1,200	per lot
China Resources Enterprise Ltd	Spread Rate	230	/lot/side	184	/lot/side
Shanghai Industrial Holdings	Full Rate	1,030	per lot	824	per lot
Shanghai Industrial Holdings	Spread Rate	155	/lot/side	124	/lot/side
Hongkong Electric Holdings	Full Rate	940	per lot	752	per lot
Hongkong Electric Holdings	Spread Rate	140	/lot/side	112	/lot/side
Hang Seng Bank	Full Rate	580	per lot	464	per lot
Hang Seng Bank	Spread Rate	90	/lot/side	72	/lot/side
Henderson Land Development Co Ltd	Full Rate	3,090	per lot	2,472	per lot
Henderson Land Development Co Ltd	Spread Rate	460	/lot/side	368	/lot/side
Hutchison Whampoa Ltd	Full Rate	4,500	per lot	3,600	per lot
Hutchison Whampoa Ltd	Spread Rate	675	/lot/side	540	/lot/side
Sun Hung Kai Properties Ltd	Full Rate	5,200	per lot	4,160	per lot
Sun Hung Kai Properties Ltd	Spread Rate	780	/lot/side	624	/lot/side
CLP Holdings Ltd	Full Rate	1,000	per lot	800	per lot
CLP Holdings Ltd	Spread Rate	150	/lot/side	120	/lot/side
The Wharf (Holdings) Ltd	Full Rate	1,790	per lot	1,432	per lot
The Wharf (Holdings) Ltd	Spread Rate	270	/lot/side	216	/lot/side
New World Development Co Ltd	Full Rate	550 per lot		440	per lot
New World Development Co Ltd	Spread Rate	80	/lot/side	64	/lot/side
Legend Holdings Ltd	Full Rate	480	per lot	384	per lot
Legend Holdings Ltd	Spread Rate	70	/lot/side	56	/lot/side
China Mobile (HK) Ltd	Full Rate	1,215	per lot	972	per lot
China Mobile (HK) Ltd	Spread Rate	180	/lot/side	144	/lot/side
The Bank of East Asia Ltd	Full Rate	220	per lot	176	per lot
The Bank of East Asia Ltd	Spread Rate	35	/lot/side	28	/lot/side
Hong Kong and China Gas Co Ltd	Full Rate	700	per lot	560	per lot
Hong Kong and China Gas Co Ltd	Spread Rate	105	/lot/side	84	/lot/side
Hong Kong and China Gas Co Ltd (Temporary)	Full Rate	770	per lot	616	per lot
Hong Kong and China Gas Co Ltd (Temporary)	Spread Rate	115	/lot/side	92	/lot/side
MTR Corporation Ltd	Full Rate	375	per lot	300	per lot
MTR Corporation Ltd	Spread Rate	60	/lot/side	48	/lot/side
China Merchants Holdings (International) Co Ltd	Full Rate	1,000	per lot	800	per lot
China Merchants Holdings (International) Co Ltd	Spread Rate	150	/lot/side	120	/lot/side
Johnson Electric Holdings Ltd	Full Rate	595	per lot	476	per lot
Johnson Electric Holdings Ltd	Spread Rate	90	/lot/side	72	/lot/side
Cathay Pacific Airways Ltd	Full Rate	1,050	per lot	840	per lot
Cathay Pacific Airways Ltd	Spread Rate	155	/lot/side	124	/lot/side
Hong Kong Exchanges and Clearing Ltd	Full Rate	2,380	per lot	1,904	per lot
Hong Kong Exchanges and Clearing Ltd	Spread Rate	360	/lot/side	288	/lot/side
Li & Fung Ltd	Full Rate	2,160	per lot	1,728	per lot
Li & Fung Ltd	Spread Rate	320	/lot/side	256	/lot/side
China Unicom Ltd	Full Rate	1,140	per lot	912	per lot
China Unicom Ltd	Spread Rate	170	/lot/side	136	/lot/side
PetroChina Co Ltd	Full Rate	200	per lot	160	per lot
PetroChina Co Ltd	Spread Rate	30	/lot/side	24	/lot/side
Cheung Kong Infrastructure Holdings Ltd	Full Rate	820	per lot	656	per lot
Cheung Kong Infrastructure Holdings Ltd	Spread Rate	125	/lot/side	100	/lot/side
Cosco Pacific Ltd	Full Rate	1,080	per lot	864	per lot
Cosco Pacific Ltd	Spread Rate	160	/lot/side	128	/lot/side

US Stock Futures Contracts

	Margin Rate	Initial Margin (US$)		Maintenance Margin (US$)
Cisco Systems Incorporated	Full Rate	345	per lot	276	per lot
Cisco Systems Incorporated	Spread Rate	50	/lot/side	40	/lot/side
IBM Corporation	Full Rate	1,130	per lot	904	per lot
IBM Corporation	Spread Rate	170	/lot/side	136	/lot/side
Intel Corporation	Full Rate	435	per lot	348	per lot
Intel Corporation	Spread Rate	65	/lot/side	52	/lot/side
Microsoft Corporation	Full Rate	760	per lot	608	per lot
Microsoft Corporation	Spread Rate	115	/lot/side	92	/lot/side
Oracle Corporation	Full Rate	210	per lot	168	per lot
Oracle Corporation	Spread Rate	30	/lot/side	24	/lot/side

Japan Stock Futures Contracts

	Margin Rate	Initial Margin (JPY)		Maintenance Margin (JPY)
NTT DoCoMo Incorporated	Full Rate	37,700	per lot	30,160	per lot
NTT DoCoMo Incorporated	Spread Rate	5,655	/lot/side	4,524	/lot/side
Sony Corporation	Full Rate	59,500	per lot	47,600	per lot
Sony Corporation	Spread Rate	8,925	/lot/side	7,140	/lot/side
Nippon Telegraph & Telephone Corporation	Full Rate	61,000	per lot	48,800	per lot
Nippon Telegraph & Telephone Corporation	Spread Rate	13,150	/lot/side	10,520	/lot/side
Fujitsu Ltd	Full Rate	107,000	per lot	85,600	per lot
Fujitsu Ltd	Spread Rate	18,750	/lot/side	15,000	/lot/side
Toyota Motor Corporation	Full Rate	23,900	per lot	19,120	per lot
Toyota Motor Corporation	Spread Rate	5,850	/lot/side	4,680	/lot/side

Korea Stock Futures Contracts

	Margin Rate	Initial Margin (KRW)		Maintenance Margin (KRW)
Korea Electric Power Corporation	Full Rate	233,000	per lot	186,400	per lot
Korea Electric Power Corporation	Spread Rate	34,950	/lot/side	27,960	/lot/side
Korea Telecom Corporation	Full Rate	627,000	per lot	501,600	per lot
Korea Telecom Corporation	Spread Rate	94,050	/lot/side	75,240	/lot/side
Samsung Electronics Co Ltd	Full Rate	5,750,000	per lot	4,600,000	per lot
Samsung Electronics Co Ltd	Spread Rate	862,500	/lot/side	690,000	/lot/side
SK Telecom Co Ltd	Full Rate	2,800,000	per lot	2,240,000	per lot
SK Telecom Co Ltd	Spread Rate	420,000	/lot/side	336,000	/lot/side
SK Telecom Co Ltd (Temporary)	Full Rate	280,000	per lot	224,000	per lot
SK Telecom Co Ltd (Temporary)	Spread Rate	42,000	/lot/side	33,600	/lot/side
Kookmin Bank	Full Rate	614,000	per lot	491,200	per lot
Kookmin Bank	Spread Rate	92,100	/lot/side	73,680	/lot/side

Taiwan Stock Futures Contracts

	Margin Rate	Initial Margin (NT$)		Maintenance Margin (NT$)
Mosel Vitelic Incorporated	Full Rate	27,500	per lot	22,000	per lot
Mosel Vitelic Incorporated	Spread Rate	4,125	/lot/side	3,300	/lot/side
Ritek Corporation	Full Rate	45,000	per lot	36,000	per lot
Ritek Corporation	Spread Rate	6,750	/lot/side	5,400	/lot/side
Taiwan Semiconductor Manufacturing Co Ltd	Full Rate	89,000	per lot	71,200	per lot
Taiwan Semiconductor Manufacturing Co Ltd	Spread Rate	13,350	/lot/side	10,680	/lot/side
United Micro Electronics Corporation	Full Rate	58,000	per lot	46,400	per lot
United Micro Electronics Corporation	Spread Rate	8,700	/lot/side	6,960	/lot/side
Winbond Electronics Corporation	Full Rate	42,000	per lot	33,600	per lot
Winbond Electronics Corporation	Spread Rate	6,300	/lot/side	5,040	/lot/side

HKFE emphasised that the above are minimum rates and Exchange Participants should set their margin requirements according to their clients' individual circumstances.

Spread Margin Rates
for One-Month HIBOR Futures

Spread Combination	Initial Margin	Maintenance Margin
1st month vs 4th month 1st month vs 5th month 1st month vs 6th month	HK$3,125 per spread	HK$2,500 per spread
1st month vs 2nd month 1st month vs 3rd month 2nd month vs 4th month 2nd month vs 5th month 2nd month vs 6th month 3rd month vs 4th month 3rd month vs 5th month 3rd month vs 6th month	HK$2,500 per spread	HK$2,000 per spread
4th month vs 5th month 4th month vs 6th month 5th month vs 6th month	HK$1,875 per spread	HK$1,500 per spread
2nd month vs 3rd month	HK$1,125 per spread	HK$900 per spread

Spread Margin Rates
for Three-Month HIBOR Futures

Spread Combination	Initial Margin	Maintenance Margin
1st month vs 7th month 1st month vs 8th month 1st month vs 9th month 1st month vs 10th month 2nd month vs 7th month 2nd month vs 8th month 2nd month vs 9th month 2nd month vs 10th month 3rd month vs 7th month 3rd month vs 8th month 3rd month vs 9th month 3rd month vs 10th month	HK$3,750 per spread	HK$3,000 per spread
4th month vs 7th month 4th month vs 8th month 4th month vs 9th month 4th month vs 10th month 5th month vs 7th month 5th month vs 8th month 5th month vs 9th month 5th month vs 10th month 6th month vs 7th month 6th month vs 8th month 6th month vs 9th month 6th month vs 10th month	HK$3,000 per spread	HK$2,400 per spread
1st month vs 4th month 1st month vs 5th month 1st month vs 6th month 2nd month vs 4th month 2nd month vs 5th month 2nd month vs 6th month 3rd month vs 4th month 3rd month vs 5th month 3rd month vs 6th month 7th month vs 8th month 7th month vs 9th month 7th month vs 10th month 8th month vs 9th month 8th month vs 10th month 9th month vs 10th month	HK$2,500 per spread	HK$2,000 per spread
1st month vs 2nd month 1st month vs 3rd month 2nd month vs 3rd month 4th month vs 5th month 4th month vs 6th month 5th month vs 6th month	HK$1,750 per spread	HK$1,400 per spread

Updated 29 May 2002