HKFE Announces Revised Margins for Futures Contracts

Market Operations

29 Aug 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 Friday, 30 August 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	37,250	per lot	29,800	per lot
Hang Seng Index	Spread Rate	3,750	/lot/side	3,000	/lot/side
Mini-Hang Seng Index	Full Rate	7,450	per lot	5,960	per lot
Mini-Hang Seng Index	Spread Rate	750	/lot/side	600	/lot/side
MSCI China Free Index	Full Rate	12,000	per lot	9,600	per lot
MSCI China Free Index	Spread Rate	1,800	/lot/side	1,440	/lot/side
Three-Month HIBOR	Full Rate	4,625	per lot	3,700	per lot
Three-Month HIBOR	Spread Rate	Please refer to the attached table
One-Month HIBOR	Full Rate	1,750	per lot	1,400	per lot
One-Month HIBOR	Spread Rate	Please refer to the attached table
Three-Year EFN	Full Rate	10,400	per lot	8,320	per lot
Three-Year EFN	Spread Rate	1,600	/lot/side	1,280	/lot/side
Dow Jones Industrial Average Index	Full Rate	8,300	per lot	6,640	per lot
Dow Jones Industrial Average Index	Spread Rate	1,250	/lot/side	1,000	/lot/side
HSBC Holdings Plc	Full Rate	2,440	per lot	1,952	per lot
HSBC Holdings Plc	Spread Rate	365	/lot/side	292	/lot/side
PCCW Limited	Full Rate	180	per lot	144	per lot
PCCW Limited	Spread Rate	27	/lot/side	21.6	/lot/side
Cheung Kong (Holdings) Ltd	Full Rate	6,700	per lot	5,360	per lot
Cheung Kong (Holdings) Ltd	Spread Rate	1,005	/lot/side	804	/lot/side
Swire Pacific Ltd 'A' Shares	Full Rate	1,800	per lot	1,440	per lot
Swire Pacific Ltd 'A' Shares	Spread Rate	270	/lot/side	216	/lot/side
CITIC Pacific Ltd	Full Rate	1,510	per lot	1,208	per lot
CITIC Pacific Ltd	Spread Rate	225	/lot/side	180	/lot/side
China Resources Enterprise Ltd	Full Rate	2,040	per lot	1,632	per lot
China Resources Enterprise Ltd	Spread Rate	300	/lot/side	240	/lot/side
Shanghai Industrial Holdings	Full Rate	1,260	per lot	1,008	per lot
Shanghai Industrial Holdings	Spread Rate	190	/lot/side	152	/lot/side
Hongkong Electric Holdings	Full Rate	950	per lot	760	per lot
Hongkong Electric Holdings	Spread Rate	145	/lot/side	116	/lot/side
Hang Seng Bank	Full Rate	540	per lot	432	per lot
Hang Seng Bank	Spread Rate	85	/lot/side	68	/lot/side
Henderson Land Development Co Ltd	Full Rate	3,240	per lot	2,592	per lot
Henderson Land Development Co Ltd	Spread Rate	480	/lot/side	384	/lot/side
Hutchison Whampoa Ltd	Full Rate	5,720	per lot	4,576	per lot
Hutchison Whampoa Ltd	Spread Rate	860	/lot/side	688	/lot/side
Sun Hung Kai Properties Ltd	Full Rate	5,790	per lot	4,632	per lot
Sun Hung Kai Properties Ltd	Spread Rate	870	/lot/side	696	/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	1,870	per lot	1,496	per lot
The Wharf (Holdings) Ltd	Spread Rate	280	/lot/side	224	/lot/side
New World Development Co Ltd	Full Rate	610	per lot	488	per lot
New World Development Co Ltd	Spread Rate	90	/lot/side	72	/lot/side
Legend Group Ltd	Full Rate	720	per lot	576	per lot
Legend Group Ltd	Spread Rate	110	/lot/side	88	/lot/side
China Mobile (HK) Ltd	Full Rate	1,090	per lot	872	per lot
China Mobile (HK) Ltd	Spread Rate	165	/lot/side	132	/lot/side
The Bank of East Asia Ltd	Full Rate	224	per lot	179.2	per lot
The Bank of East Asia Ltd	Spread Rate	36	/lot/side	28.8	/lot/side
Hong Kong and China Gas Co Ltd	Full Rate	650	per lot	520	per lot
Hong Kong and China Gas Co Ltd	Spread Rate	95	/lot/side	76	/lot/side
Hong Kong and China Gas Co Ltd (Temporary)	Full Rate	715	per lot	572	per lot
Hong Kong and China Gas Co Ltd (Temporary)	Spread Rate	110	/lot/side	88	/lot/side
MTR Corporation Ltd	Full Rate	320	per lot	256	per lot
MTR Corporation Ltd	Spread Rate	50	/lot/side	40	/lot/side
China Merchants Holdings (International) Co Ltd	Full Rate	780	per lot	624	per lot
China Merchants Holdings (International) Co Ltd	Spread Rate	118	/lot/side	94.4	/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	1,700	per lot	1,360	per lot
Cathay Pacific Airways Ltd	Spread Rate	255	/lot/side	204	/lot/side
Hong Kong Exchanges and Clearing Ltd	Full Rate	2,940	per lot	2,352	per lot
Hong Kong Exchanges and Clearing Ltd	Spread Rate	440	/lot/side	352	/lot/side
Li & Fung Ltd	Full Rate	2,620	per lot	2,096	per lot
Li & Fung Ltd	Spread Rate	390	/lot/side	312	/lot/side
China Unicom Ltd	Full Rate	1,380	per lot	1,104	per lot
China Unicom Ltd	Spread Rate	205	/lot/side	164	/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	840	per lot	672	per lot
Cheung Kong Infrastructure Holdings Ltd	Spread Rate	130	/lot/side	104	/lot/side
Cosco Pacific Ltd	Full Rate	1,640	per lot	1,312	per lot
Cosco Pacific Ltd	Spread Rate	245	/lot/side	196	/lot/side
China Petroleum & Chemical Corporation	Full Rate	300	per lot	240	per lot
China Petroleum & Chemical Corporation	Spread Rate	46	/lot/side	36.8	/lot/side
CNOOC Ltd	Full Rate	470	per lot	376	per lot
CNOOC Ltd	Spread Rate	70	/lot/side	56	/lot/side
Huaneng Power International Inc	Full Rate	1,280	per lot	1,024	per lot
Huaneng Power International Inc	Spread Rate	190	/lot/side	152	/lot/side

US Stock Futures Contracts

	Margin Rate	Initial Margin (US$)		Maintenance Margin (US$)
Cisco Systems Incorporated	Full Rate	280	per lot	224	per lot
Cisco Systems Incorporated	Spread Rate	42	/lot/side	33.6	/lot/side
IBM Corporation	Full Rate	960	per lot	768	per lot
IBM Corporation	Spread Rate	165	/lot/side	132	/lot/side
Intel Corporation	Full Rate	430	per lot	344	per lot
Intel Corporation	Spread Rate	65	/lot/side	52	/lot/side
Microsoft Corporation	Full Rate	770	per lot	616	per lot
Microsoft Corporation	Spread Rate	115	/lot/side	92	/lot/side
Oracle Corporation	Full Rate	195	per lot	156	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	31,850	per lot	25,480	per lot
NTT DoCoMo Incorporated	Spread Rate	4,800	/lot/side	3,840	/lot/side
Sony Corporation	Full Rate	66,000	per lot	52,800	per lot
Sony Corporation	Spread Rate	9,900	/lot/side	7,920	/lot/side
Nippon Telegraph & Telephone Corporation	Full Rate	50,800	per lot	40,640	per lot
Nippon Telegraph & Telephone Corporation	Spread Rate	12,500	/lot/side	10,000	/lot/side
Fujitsu Ltd	Full Rate	84,900	per lot	67,920	per lot
Fujitsu Ltd	Spread Rate	20,000	/lot/side	16,000	/lot/side
Toyota Motor Corporation	Full Rate	30,000	per lot	24,000	per lot
Toyota Motor Corporation	Spread Rate	6,000	/lot/side	4,800	/lot/side

Korea Stock Futures Contracts

	Margin Rate	Initial Margin (KRW)		Maintenance Margin (KRW)
Korea Electric Power Corporation	Full Rate	197,500	per lot	158,000	per lot
Korea Electric Power Corporation	Spread Rate	36,000	/lot/side	28,800	/lot/side
KT Corporation	Full Rate	597,500	per lot	478,000	per lot
KT Corporation	Spread Rate	89,500	/lot/side	71,600	/lot/side
Samsung Electronics Co Ltd	Full Rate	4,240,000	per lot	3,392,000	per lot
Samsung Electronics Co Ltd	Spread Rate	636,000	/lot/side	508,800	/lot/side
SK Telecom Co Ltd	Full Rate	2,770,000	per lot	2,216,000	per lot
SK Telecom Co Ltd	Spread Rate	416,000	/lot/side	332,800	/lot/side
Kookmin Bank	Full Rate	595,000	per lot	476,000	per lot
Kookmin Bank	Spread Rate	89,000	/lot/side	71,200	/lot/side

Taiwan Stock Futures Contracts

	Margin Rate	Initial Margin (NT$)		Maintenance Margin (NT$)
Mosel Vitelic Incorporated	Full Rate	19,000	per lot	15,240	per lot
Mosel Vitelic Incorporated	Spread Rate	2,800	/lot/side	2,240	/lot/side
Ritek Corporation	Full Rate	27,000	per lot	21,600	per lot
Ritek Corporation	Spread Rate	5,250	/lot/side	4,200	/lot/side
Taiwan Semiconductor Manufacturing Co Ltd	Full Rate	87,000	per lot	69,600	per lot
Taiwan Semiconductor Manufacturing Co Ltd	Spread Rate	13,800	/lot/side	11,040	/lot/side
United Micro Electronics Corporation	Full Rate	44,500	per lot	35,600	per lot
United Micro Electronics Corporation	Spread Rate	6,700	/lot/side	5,360	/lot/side
Winbond Electronics Corporation	Full Rate	32,500	per lot	26,000	per lot
Winbond Electronics Corporation	Spread Rate	4,900	/lot/side	3,920	/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 Aug 2002