The exchanges and clearing houses, wholly owned subsidiaries of Hong Kong Exchanges and Clearing Limited, have circulated the amendments to their respective rules and procedures made in anticipation of the taking effect of the Securities and Futures Ordinance and to facilitate the business operations of Stock Exchange Participants. These amendments had been approved by the Securities and Futures Commission and will become effective on 1 April 2003.

These amendments include amendments to the Rules of the Exchange to abolish the existing mechanism for registration of Sales Representatives, approval of Branch Offices, appointment of Branch Office Managers and issue of Branch Certificates. The payment of fees and charges relating to such mechanism by Stock Exchange Participants will accordingly be abolished.

In addition, the existing mechanism for prior written approval of the Stock Exchange for any change in the share capital structure of and payment of the related fee by Stock Exchange Participants will be replaced by a notification requirement without the payment of any fee.