ANNOUNCEMENT -- Amendments to the Listing Rules relating to the Code on Corporate Governance Practices and Rules on the Corporate Governance Report

Regulatory

19 Nov 2004

THE STOCK EXCHANGE OF HONG KONG LIMITED
(A wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited)

ANNOUNCEMENT

Amendments to the Listing Rules relating to the Code on Corporate Governance
Practices and Rules on the Corporate Governance Report

Amendments have been made to the Listing Rules to introduce a revised Code on Corporate Governance Practices and the Rules on the Corporate Governance Report based on our Conclusions on Exposure of Draft Code on Corporate Governance Practices and Corporate Governance Report (Exposure Conclusions Report).

Subject to certain transitional arrangements, the amendments to the Listing Rules will take effect on 1 January 2005.

On 30 January 2004, we published an Exposure of Draft Code on Corporate Governance Practices and Corporate Governance Report (Exposure Paper). The main objective of the Exposure Paper was to seek market views on the timing of the proposed implementation of the Code on Corporate Governance Practices (Code) and to allow the market the opportunity to comment on the detailed wording of the Code with a view to removing ambiguities, providing clarity and ensuring that the language adopted in the Code would be clear and concise.

The comment period for the Exposure Paper closed on 31 March 2004. We received comments from a total of 17 respondents. The comments received are available on the Exchange's website at http://www.hkex.com.hk/eng/newsconsul/mktconsul/responses/cgcoderesponses.htm.

We have published our Exposure Conclusions Report which summarises the main comments raised in response to the Exposure Paper and sets out the final conclusions of the Exchange. The Exposure Conclusions Report is available on the Exchange's website at http://www.hkex.com.hk/eng/newsconsul/mktconsul/documents/expocon.pdf.

Where appropriate, we have modified the relevant wording of the draft Code and Rules on the Corporate Governance Report set out in the Exposure Paper so as to reflect respondents' views, address their concerns and/or provide clarity.

We have amended the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Rules Governing the Listing of Securities on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited for the purpose of implementing the Code.

The amendments will come into effect on 1 January 2005. These amendments as well as the implementation and transitional arrangements are set out in the Exposure Conclusions Report.

Reprinted pages of the Listing Rules will be distributed in due course.

Updated 19 Nov 2004