Hong Kong Futures Exchange Limited and The Stock Exchange of Hong Kong Limited, wholly-owned subsidiaries of Hong Kong Exchanges and Clearing Limited, have prepared to adjust its CITIC Pacific Limited (CITIC) Futures contract and CITIC Options contract following the CITIC's proposal of a final dividend of $0.70 per share and a special dividend of $1.00 per share. Subject to approval by CITIC's shareholders, the capital adjustments to the CITIC contracts are expected to commence on Monday, 28 April 2003.

Futures Contract

Immediately before the market opening on 28 April 2003:

i.     Adjusted contracted prices (ACP) will be obtained by the following formula:

       The old contracted price times (S - D) / S

       Where     S is the CITIC share closing price on the business day

                         preceding the ex-dividend day; D is the aggregate amount of the

                         ordinary and special dividends (i.e. $1.70);

       and rounded to nearest two decimal places; and

ii.     Adjusted contract multipliers will be obtained by the following formula:

       The old contracted price times the contract multiplier of 1,000 / ACP and

       rounded to the nearest whole number.

From the open of the market on 28 April 2003:

1. The adjusted CITIC Futures contract will be traded under a temporary trading symbol CIA until the expiration of the existing April, May, June, September and December 2003 contracts respectively or until all outstanding positions in any contract month are closed, whichever occurs first. Contract months for the adjusted contract will be immediately suspended for trading when there is no outstanding position after market close on the day prior to the ex-dividend day; and
   
   
2. The available contract months for the CITIC Futures contract with the original contract multiplier of 1,000 shares, under the original trading symbol CIT, will be April, May, June, September and December 2003.

Options Contract

After the close of business on 25 April 2003

• All existing series CITIC Options contracts will be adjusted by an adjustment ratio (R), i.e. the adjusted exercise price will be R times the old exercise price and the adjusted contract size will be the old contract value divided by the adjusted exercise price. The adjustment ratio R can only be determined by reference to the share closing price of CITIC after the close of market on Friday 25 April 2003, using the following formula:
  
  

• R (rounded to four decimal places) = (S-D) / S
  
  Where       S is the CITIC share closing price on the business day
  
                        preceding the ex-dividend day; D is the aggregate amount of
  
                        the ordinary and special dividends (i.e. $1.70);

  As a result of the adjustment, the adjusted contract size will carry odd lots as well as fractions of a share.

• The number of open positions in the old series will be transferred to the respective adjusted series. It should be noted that only the exercise price and contract size will be adjusted and there will not be any changes to the number of open positions after the adjustment. All such positions will be traded and settled under the adjusted contract terms of adjusted exercise price and adjusted contract size per contract from 28 April 2003 onward.

From the open of the market on 28 April 2003:

• CITIC Standard Series (1000 shares per contract; Hong Kong Futures Automated Trading System (HKATS) code CIT, Traded Options System (TOPS) code CIP with version number "0") will be available for trading and CITIC Adjusted Series (see contract details above; HKATS code CIA, TOPS code with version number "1") will be available for trading until the close of business on 30 December 2003.

• CIT and CIA will be distinct series and it will not be possible to offset the positions in each version against the other. Investors should pay attention to the series specifications whenever dealing with CITIC Options contracts, particularly when placing orders or exercising instructions.

Price information of the CITIC Adjusted Series will be displayed in Teletext pages 3073-4.

Investors are reminded the above adjustments are subject to CITIC shareholders' approval of the proposed dividends.

Investors should consult their brokers for further details on the CITIC Futures and Options contracts.