HKFE Announces Revised Margins for Futures Contracts

Market Operations

28 Jun 2002

Hong Kong Futures Exchange Limited (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), announced that with effect from the commencement of trading on Tuesday, 2 July 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	35,000 per lot	28,000 per lot
Hang Seng Index	Spread Rate	3,750 /lot/side	3,000 /lot/side
Mini-Hang Seng Index	Full Rate	7,000 per lot	5,600 per lot
Mini-Hang Seng Index	Spread Rate	750 /lot/side	600 /lot/side
MSCI China Free Index	Full Rate	11,000 per lot	8,800 per lot
MSCI China Free Index	Spread Rate	1,650 /lot/side	1,320 /lot/side
Three-Month HIBOR	Full Rate	2,000 per lot	1,600 per lot
Three-Month HIBOR	Spread Rate	Please refer to the attached table
One-Month HIBOR	Full Rate	1,625 per lot	1,300 per lot
One-Month HIBOR	Spread Rate	Please refer to the attached table
Three-Year EFN	Full Rate	10,000 per lot	8,000 per lot
Three-Year EFN	Spread Rate	1,500 /lot/side	1,200 /lot/side
Dow Jones Industrial Average Index	Full Rate	6,000 per lot	4,800 per lot
Dow Jones Industrial Average Index	Spread Rate	900 /lot/side	720 /lot/side
HSBC Holdings Plc	Full Rate	2,300 per lot	1,840 per lot
HSBC Holdings Plc	Spread Rate	345 /lot/side	276 /lot/side
Pacific Century CyberWorks Ltd	Full Rate	170 per lot	136 per lot
Pacific Century CyberWorks Ltd	Spread Rate	26 /lot/side	20.8 /lot/side
Cheung Kong (Holdings) Ltd	Full Rate	4,800 per lot	3,840 per lot
Cheung Kong (Holdings) Ltd	Spread Rate	730 /lot/side	584 /lot/side
Swire Pacific Ltd 'A' Shares	Full Rate	1,925 per lot	1,540 per lot
Swire Pacific Ltd 'A' Shares	Spread Rate	290 /lot/side	232 /lot/side
CITIC Pacific Ltd	Full Rate	1,180 per lot	944 per lot
CITIC Pacific Ltd	Spread Rate	175 /lot/side	140 /lot/side
China Resources Enterprise Ltd	Full Rate	1,660 per lot	1,328 per lot
China Resources Enterprise Ltd	Spread Rate	250 /lot/side	200 /lot/side
Shanghai Industrial Holdings	Full Rate	980 per lot	784 per lot
Shanghai Industrial Holdings	Spread Rate	150 /lot/side	120 /lot/side
Hongkong Electric Holdings	Full Rate	925 per lot	740 per lot
Hongkong Electric Holdings	Spread Rate	140 /lot/side	112 /lot/side
Hang Seng Bank	Full Rate	535 per lot	428 per lot
Hang Seng Bank	Spread Rate	80 /lot/side	64 /lot/side
Henderson Land Development Co Ltd	Full Rate	2,950 per lot	2,360 per lot
Henderson Land Development Co Ltd	Spread Rate	442 /lot/side	353.6 /lot/side
Hutchison Whampoa Ltd	Full Rate	4,250 per lot	3,400 per lot
Hutchison Whampoa Ltd	Spread Rate	640 /lot/side	512 /lot/side
Sun Hung Kai Properties Ltd	Full Rate	4,950 per lot	3,960 per lot
Sun Hung Kai Properties Ltd	Spread Rate	744 /lot/side	595.2 /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	1,750 per lot	1,400 per lot
The Wharf (Holdings) Ltd	Spread Rate	260 /lot/side	208 /lot/side
New World Development Co Ltd	Full Rate	570 per lot	456 per lot
New World Development Co Ltd	Spread Rate	86 /lot/side	68.8 /lot/side
Legend Group Ltd	Full Rate	460 per lot	368 per lot
Legend Group Ltd	Spread Rate	70 /lot/side	56 /lot/side
China Mobile (HK) Ltd	Full Rate	1,125 per lot	900 per lot
China Mobile (HK) Ltd	Spread Rate	170 /lot/side	136 /lot/side
The Bank of East Asia Ltd	Full Rate	210 per lot	168 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	121 /lot/side	96.8 /lot/side
MTR Corporation Ltd	Full Rate	360 per lot	288 per lot
MTR Corporation Ltd	Spread Rate	54 /lot/side	43.2 /lot/side
China Merchants Holdings (International) Co Ltd	Full Rate	800 per lot	640 per lot
China Merchants Holdings (International) Co Ltd	Spread Rate	120 /lot/side	96 /lot/side
Johnson Electric Holdings Ltd	Full Rate	770 per lot	616 per lot
Johnson Electric Holdings Ltd	Spread Rate	115 /lot/side	92 /lot/side
Cathay Pacific Airways Ltd	Full Rate	900 per lot	720 per lot
Cathay Pacific Airways Ltd	Spread Rate	135 /lot/side	108 /lot/side
Hong Kong Exchanges and Clearing Ltd	Full Rate	2,280 per lot	1,824 per lot
Hong Kong Exchanges and Clearing Ltd	Spread Rate	344 /lot/side	275.2 /lot/side
Li & Fung Ltd	Full Rate	2,280 per lot	1,824 per lot
Li & Fung Ltd	Spread Rate	344 /lot/side	275.2 /lot/side
China Unicom Ltd	Full Rate	1,020 per lot	816 per lot
China Unicom Ltd	Spread Rate	150 /lot/side	120 /lot/side
PetroChina Co Ltd	Full Rate	240 per lot	192 per lot
PetroChina Co Ltd	Spread Rate	36 /lot/side	28.8 /lot/side
Cheung Kong Infrastructure Holdings Ltd	Full Rate	800 per lot	640 per lot
Cheung Kong Infrastructure Holdings Ltd	Spread Rate	120 /lot/side	96 /lot/side
Cosco Pacific Ltd	Full Rate	1,240 per lot	992 per lot
Cosco Pacific Ltd	Spread Rate	186 /lot/side	148.8 /lot/side

Futures Contract	Margin Rate	Initial Margin (HK$)	Maintenance Margin (HK$)

US Stock Futures Contracts

	Margin Rate	Initial Margin (US$)		Maintenance Margin (US$)
Cisco Systems Incorporated	Full Rate	270	per lot	216	per lot
Cisco Systems Incorporated	Spread Rate	40	/lot/side	32	/lot/side
IBM Corporation	Full Rate	875	per lot	700	per lot
IBM Corporation	Spread Rate	160	/lot/side	128	/lot/side
Intel Corporation	Full Rate	585	per lot	468	per lot
Intel Corporation	Spread Rate	85	/lot/side	68	/lot/side
Microsoft Corporation	Full Rate	685	per lot	548	per lot
Microsoft Corporation	Spread Rate	100	/lot/side	80	/lot/side
Oracle Corporation	Full Rate	195	per lot	156	per lot
Oracle Corporation	Spread Rate	30	/lot/side	24	/lot/side

	Margin Rate	Initial Margin (US$)		Maintenance Margin (US$)

Japan Stock Futures Contracts

	Margin Rate	Initial Margin (JPY)	Maintenance Margin (JPY)
NTT DoCoMo Incorporated	Full Rate	32,600 per lot		26,080 per lot
NTT DoCoMo Incorporated	Spread Rate	5,000 /lot/side		4,000 /lot/side
Sony Corporation	Full Rate	57,000 per lot		45,600 per lot
Sony Corporation	Spread Rate	8,925 /lot/side		7,140 /lot/side
Nippon Telegraph & Telephone Corporation	Full Rate	50,500 per lot		40,400 per lot
Nippon Telegraph & Telephone Corporation	Spread Rate	12,500 /lot/side		10,000 /lot/side
Fujitsu Ltd	Full Rate	86,500 per lot		69,200 per lot
Fujitsu Ltd	Spread Rate	18,750 /lot/side		15,000 /lot/side
Toyota Motor Corporation	Full Rate	25,300 per lot		20,240 per lot
Toyota Motor Corporation	Spread Rate	5,850 /lot/side		4,680 /lot/side

	Margin Rate	Initial Margin (JPY)	Maintenance Margin (JPY)

Korea Stock Futures Contracts

	Margin Rate	Initial Margin (KRW)		Maintenance Margin (KRW)
Korea Electric Power Corporation	Full Rate	205,500	per lot	164,400	per lot
Korea Electric Power Corporation	Spread Rate	36,000	/lot/side	28,800	/lot/side
KT Corporation	Full Rate	543,000	per lot	434,400	per lot
KT Corporation	Spread Rate	81,450	/lot/side	65,160	/lot/side
Samsung Electronics Co Ltd	Full Rate	4,600,000	per lot	3,680,000	per lot
Samsung Electronics Co Ltd	Spread Rate	690,000	/lot/side	552,000	/lot/side
SK Telecom Co Ltd	Full Rate	2,750,000	per lot	2,200,000	per lot
SK Telecom Co Ltd	Spread Rate	412,500	/lot/side	330,000	/lot/side
Kookmin Bank	Full Rate	641,000	per lot	512,800	per lot
Kookmin Bank	Spread Rate	96,000	/lot/side	76,800	/lot/side

	Margin Rate	Initial Margin (KRW)		Maintenance Margin (KRW)

Taiwan Stock Futures Contracts

		Margin Rate	Initial Margin (NT$)		Maintenance Margin (NT$)
Mosel Vitelic Incorporated	Full Rate		23,200	per lot	18,560	per lot
Mosel Vitelic Incorporated	Spread Rate	3,500	/lot/side	2,800	/lot/side
Ritek Corporation	Full Rate		37,500	per lot	30,000	per lot
Ritek Corporation	Spread Rate	5,600	/lot/side	4,480	/lot/side
Taiwan Semiconductor Manufacturing Co Ltd	Full Rate		83,000	per lot	66,400	per lot
Taiwan Semiconductor Manufacturing Co Ltd	Spread Rate	13,500	/lot/side	10,800	/lot/side
United Micro Electronics Corporation	Full Rate		55,000	per lot	44,000	per lot
United Micro Electronics Corporation	Spread Rate	8,200	/lot/side	6,560	/lot/side
Winbond Electronics Corporation	Full Rate		35,000	per lot	28,000	per lot
Winbond Electronics Corporation	Spread Rate	5,200	/lot/side	4,160	/lot/side

		Margin Rate	Initial Margin (NT$)		Maintenance Margin (NT$)

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 Combination	Initial Margin	Maintenance Margin

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 st 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

Spread Combination	Initial Margin	Maintenance Margin

Updated 28 Jun 2002