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

HKFE Announces Revised Margins for Futures Contracts

Hong Kong Futures Exchange Limited (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), has announced today that with effect from the commencement of trading on Tuesday, 1 June 2004, 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 the margin information on the HKEx website at the following link (http://www.hkex.com.hk/eng/market/rm/rm_dcrm/riskdata/margin_hkcc/FOmargin.htm).

Futures Contract	Margin Rate	Initial Margin (HK$)		Maintenance Margin (HK$)
Hang Seng Index	Full Rate	44,500	per lot	35,600	per lot
	Spread Rate	3,750	/lot/side	3,000	/lot/side
Mini-Hang Seng Index	Full Rate	8,900	per lot	7,120	per lot
	Spread Rate	750	/lot/side	600	/lot/side
Three-Month HIBOR	Full Rate	5,900	per lot	4,720	per lot
	Spread Rate	Please refer to the attached table
One-Month HIBOR	Full Rate	5,250	per lot	4,200	per lot
	Spread Rate	Please refer to the attached table
Three-Year EFN	Full Rate	11,750	per lot	9,400	per lot
	Spread Rate	1,763	/lot/side	1,410.4	/lot/side
Dow Jones Industrial Average Index	Full Rate	6,250	per lot	5,000	per lot
	Spread Rate	940	/lot/side	752	/lot/side
				;
H-Shares Index	Full Rate	33,400	per lot	26,720	per lot
	Spread Rate	5,010	/lot/side	4,008	/lot/side
HSBC Holdings Plc	Full Rate	2,710	per lot	2,168	per lot
	Spread Rate	410	/lot/side	328	/lot/side
PCCW Ltd	Full Rate	625	per lot	500	per lot
	Spread Rate	94	/lot/side	75.2	/lot/side
Cheung Kong (Holdings) Ltd	Full Rate	5,650	per lot	4,520	per lot
	Spread Rate	848	/lot/side	678.4	/lot/side
Swire Pacific Ltd 'A' Shares	Full Rate	2,400	per lot	1,920	per lot
	Spread Rate	360	/lot/side	288	/lot/side
CITIC Pacific Ltd	Full Rate	2,160	per lot	1,728	per lot
	Spread Rate	324	/lot/side	259.2	/lot/side
China Resources Enterprise Ltd	Full Rate	2,340	per lot	1,872	per lot
	Spread Rate	351	/lot/side	280.8	/lot/side
Shanghai Industrial Holdings Ltd	Full Rate	1,750	per lot	1,400	per lot
	Spread Rate	263	/lot/side	210.4	/lot/side
Hongkong Electric Holdings Ltd	Full Rate	1,030	per lot	824	per lot
	Spread Rate	155	/lot/side	124	/lot/side
Hang Seng Bank Ltd	Full Rate	600	per lot	480	per lot
	Spread Rate	90	/lot/side	72	/lot/side
Henderson Land Development Co Ltd	Full Rate	4,200	per lot	3,360	per lot
	Spread Rate	630	/lot/side	504	/lot/side
Hutchison Whampoa Ltd	Full Rate	3,650	per lot	2,920	per lot
	Spread Rate	548	/lot/side	438.4	/lot/side
Sun Hung Kai Properties Ltd	Full Rate	6,650	per lot	5,320	per lot
	Spread Rate	998	/lot/side	798.4	/lot/side
				;
CLP Holdings Ltd	Full Rate	1,250	per lot	1,000	per lot
	Spread Rate	188	/lot/side	150.4	/lot/side
The Wharf (Holdings) Ltd	Full Rate	2,800	per lot	2,240	per lot
	Spread Rate	420	/lot/side	336	/lot/side
New World Development Co Ltd	Full Rate	1,250	per lot	1,000	per lot
	Spread Rate	188	/lot/side	150.4	/lot/side
New World Development Co Ltd (Temporary)	Full Rate	1,378	per lot	1,102.4	per lot
	Spread Rate	207	/lot/side	165.6	/lot/side
Lenovo Group Ltd	Full Rate	750	per lot	600	per lot
	Spread Rate	113	/lot/side	90.4	/lot/side
China Mobile (Hong Kong) Ltd	Full Rate	1,050	per lot	840	per lot
	Spread Rate	158	/lot/side	126.4	/lot/side
The Bank of East Asia Ltd	Full Rate	415	per lot	332	per lot
	Spread Rate	63	/lot/side	50.4	/lot/side
Hong Kong and China Gas Co Ltd	Full Rate	1,030	per lot	824	per lot
	Spread Rate	155	/lot/side	124	/lot/side
MTR Corporation Ltd	Full Rate Spread Rate	575	per lot	460	per lot
		87	/lot/side	69.6	/lot/side
China Merchants Holdings (International) Co Ltd	Full Rate	2,800	per lot	2,240	per lot
	Spread Rate	420	/lot/side	336	/lot/side
Johnson Electric Holdings Ltd	Full Rate	660	per lot	528	per lot
	Spread Rate	99	/lot/side	79.2	/lot/side
Cathay Pacific Airways Ltd	Full Rate	1,300	per lot	1,040	per lot
	Spread Rate	195	/lot/side	156	/lot/side
Hong Kong Exchanges and Clearing Ltd	Full Rate	3,540	per lot	2,832	per lot
	Spread Rate	531	/lot/side	424.8	/lot/side
Li & Fung Ltd	Full Rate	3,500	per lot	2,800	per lot
	Spread Rate	525	/lot/side	420	/lot/side
China Unicom Ltd	Full Rate Spread Rate	2,100	per lot	1,680	per lot
		315	/lot/side	252	/lot/side
PetroChina Co Ltd	Full Rate	900	per lot	720	per lot
	Spread Rate	135	/lot/side	108	/lot/side
Cheung Kong Infrastructure Holdings Ltd	Full Rate	1,680	per lot	1,344	per lot
	Spread Rate	252	/lot/side	201.6	/lot/side
Cosco Pacific Ltd	Full Rate	3,160	per lot	2,528	per lot
	Spread Rate	474	/lot/side	379.2	/lot/side
CNOOC Ltd	Full Rate	460	per lot	368	per lot
	Spread Rate	70	/lot/side	56	/lot/side
CNOOC Ltd (Temporary)	Full Rate	1,150	per lot	920	per lot
	Spread Rate	175	/lot/side	140	/lot/side
Huaneng Power International Inc	Full Rate	2,350	per lot	1,880	per lot
	Spread Rate	353	/lot/side	282.4	/lot/side
BOC Hong Kong (Holdings) Ltd	Full Rate	575	per lot	460	per lot
	Spread Rate	87	/lot/side	69.6	/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 (HK$)	Maintenance Margin (HK$)
1st month vs 4th month 1st month vs 5th month 1st month vs 6th month	HK$2,500 per spread	HK$2,000 per spread
1st month vs 2nd month 1st month vs 3rd month	HK$2,125 per spread	HK$1,700 per spread
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$2,000 per spread	HK$1,600 per spread
4th month vs 5th month 4th month vs 6th month 5th month vs 6th month	HK$1,375 per spread	HK$1,100 per spread
2nd month vs 3rd month	HK$1,375 per spread	HK$1,100 per spread

Spread Margin Rates
for Three-Month HIBOR Futures

Spread Combination	Initial Margin (HK$)	Maintenance Margin (HK$)
1st month vs 4th month 1st month vs 5th month 1st month vs 6th month 1st month vs 7th month 1st month vs 8th month 1st month vs 9th month 1st month vs 10th month 2nd month vs 4th month 2nd month vs 5th month 2nd month vs 6th month 2nd month vs 7th month 2nd month vs 8th month 2nd month vs 9th month 2nd month vs 10th month 3rd month vs 4th month 3rd month vs 5th month 3rd month vs 6th month 3rd month vs 7th month 3rd month vs 8th month 3rd month vs 9th month 3rd month vs 10th month	HK$6,125 per spread	HK$4,900 per spread
4th month vs 8th month 4th month vs 9th month 4th month vs 10th month 5th month vs 8th month 5th month vs 9th month 5th month vs 10th month 6th month vs 8th month 6th month vs 9th month 6th month vs 10th month 7th month vs 8th month 7th month vs 9th month 7th month vs 10th month ;	HK$3,875 per spread	HK$3,100 per spread
4th month vs 5th month 4th month vs 6th month 4th month vs 7th month 5th month vs 6th month 5th month vs 7th month 6th month vs 7th month	HK$3,250 per spread	HK$2,600 per spread
1st month vs 2nd month 1st month vs 3rd month 2nd month vs 3rd month	HK$2,500 per spread	HK$2,000 per spread
8th month vs 9th month 8th month vs 10th month 9th month vs 10th month	HK$2,250 per spread	HK$1,800 per spread