The Stock Exchange of Hong Kong Limited
(A wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited)

Stock Exchange to Narrow Strike Intervals for HSBC Holdings Plc Option Class and the Hang Seng Bank Option Class

The Stock Exchange of Hong Kong Limited, a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), will narrow the strike intervals in the spot month and next calendar month of the HSBC Holdings Plc Option Class (HKB Options) and the Hang Seng Bank Option Class from 30 April 2003.

The Stock Exchange will review market demand for the narrower strike intervals six months after implementation to determine if they should be continued and if the procedures should be applied to other option classes.

"We think investors will welcome the additional choices in strike intervals," said an HKEx spokesman.

Example:

Given the underlying price of HKB Options is $83.00, the strike series for trading in both puts and calls for the spot month and the next calendar month would be as follows:

Existing

$75.00, $80.00, $85.00, $90.00, $95.00

After 30 April

$75.00, $77.50, $80.00, $82.50, $85.00, $87.50, $90.00, $95.00