HKFE Announces Revised Margins for Futures Contracts

Market Operations

26 Feb 2007

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 that with effect from the commencement of trading on Thursday, 1 March 2007, 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	64,975	/lot	51,980	/lot
Hang Seng Index	Spread Rate	7,500	/spread	6,000	/spread

Mini-Hang Seng Index	Full Rate	12,995	/lot	10,396	/lot
Mini-Hang Seng Index	Spread Rate	1,500	/spread	1,200	/spread

FTSE/Xinhua China 25 Index	Full Rate	55,230	/lot	44,184	/lot
FTSE/Xinhua China 25 Index	Spread Rate	16,569	/spread	13,255	/spread

H-shares Index	Full Rate	40,362	/lot	32,290	/lot
H-shares Index	Spread Rate	12,109	/spread	9,687	/spread

Three-Year EFN	Full Rate	9,800	/lot	7,840	/lot
Three-Year EFN	Spread Rate	2,940	/spread	2,352	/spread

One-Month HIBOR	Full Rate	3,250	/lot	2,600	/lot
One-Month HIBOR	Spread Rate	Please refer to attached table

Three-Month HIBOR	Full Rate	3,586	/lot	2,869	/lot
Three-Month HIBOR	Spread Rate	Please refer to attached table

Aluminum Corporation of China Ltd	Full Rate	1,810	/lot	1,448	/lot
Aluminum Corporation of China Ltd	Spread Rate	543	/spread	434	/spread

Bank of China Ltd	Full Rate	296	/lot	237	/lot
Bank of China Ltd	Spread Rate	89	/spread	71	/spread

Bank of Communications Co Ltd	Full Rate	1,015	/lot	812	/lot
Bank of Communications Co Ltd	Spread Rate	305	/spread	244	/spread

The Bank of East Asia Ltd	Full Rate	699	/lot	559	/lot
The Bank of East Asia Ltd	Spread Rate	210	/spread	168	/spread

BOC Hong Kong (Holdings) Ltd	Full Rate	751	/lot	601	/lot
BOC Hong Kong (Holdings) Ltd	Spread Rate	225	/spread	180	/spread

China Construction Bank Corporation	Full Rate	482	/lot	385	/lot
China Construction Bank Corporation	Spread Rate	145	/spread	116	/spread

China Mobile (Hong Kong) Ltd	Full Rate	3,982	/lot	3,186	/lot
China Mobile (Hong Kong) Ltd	Spread Rate	1,195	/spread	956	/spread

China Unicom Ltd	Full Rate	3,156	/lot	2,525	/lot
China Unicom Ltd	Spread Rate	947	/spread	758	/spread

CITIC Pacific Ltd	Full Rate	2,013	/lot	1,610	/lot
CITIC Pacific Ltd	Spread Rate	604	/spread	483	/spread

Cheung Kong (Holdings) Ltd	Full Rate	8,435	/lot	6,748	/lot
Cheung Kong (Holdings) Ltd	Spread Rate	2,531	/spread	2,024	/spread

Cheung Kong Infrastructure Holdings Ltd	Full Rate	2,684	/lot	2,147	/lot
Cheung Kong Infrastructure Holdings Ltd	Spread Rate	805	/spread	644	/spread

China Life Insurance Company Ltd	Full Rate	3,093	/lot	2,475	/lot
China Life Insurance Company Ltd	Spread Rate	928	/spread	743	/spread

CLP Holdings Ltd	Full Rate	1,844	/lot	1,475	/lot
CLP Holdings Ltd	Spread Rate	553	/spread	443	/spread

China Merchants Bank Co Ltd	Full Rate	729	/lot	583	/lot
China Merchants Bank Co Ltd	Spread Rate	219	/spread	175	/spread

CNOOC Ltd	Full Rate	411	/lot	329	/lot
CNOOC Ltd	Spread Rate	123	/spread	99	/spread

China Netcom Group Corporation (Hong Kong) Ltd	Full Rate	1,985	/lot	1,588	/lot
China Netcom Group Corporation (Hong Kong) Ltd	Spread Rate	596	/spread	476	/spread

Cathay Pacific Airways Ltd (CPA: Multiplier = 1,000)	Full Rate	1,853	/lot	1,482	/lot
Cathay Pacific Airways Ltd (CPA: Multiplier = 1,000)	Spread Rate	556	/spread	445	/spread

Cathay Pacific Airways Ltd (CPB: Multiplier = 1,020)	Full Rate	1,890	/lot	1,512	/lot
Cathay Pacific Airways Ltd (CPB: Multiplier = 1,020)	Spread Rate	567	/spread	454	/spread

China Petroleum & Chemical Corporation	Full Rate	1,196	/lot	957	/lot
China Petroleum & Chemical Corporation	Spread Rate	359	/spread	287	/spread

China Telecom Corporation Ltd	Full Rate	933	/lot	746	/lot
China Telecom Corporation Ltd	Spread Rate	280	/spread	224	/spread

Denway Motors Ltd	Full Rate	701	/lot	561	/lot
Denway Motors Ltd	Spread Rate	210	/spread	168	/spread

Esprit Holdings Ltd	Full Rate	4,440	/lot	3,552	/lot
Esprit Holdings Ltd	Spread Rate	1,332	/spread	1,066	/spread

Hongkong Electric Holdings Ltd	Full Rate	1,244	/lot	995	/lot
Hongkong Electric Holdings Ltd	Spread Rate	373	/spread	299	/spread

Hong Kong Exchanges and Clearing Ltd	Full Rate	3,601	/lot	2,881	/lot
Hong Kong Exchanges and Clearing Ltd	Spread Rate	1,080	/spread	864	/spread

HSBC Holdings Plc	Full Rate	3,522	/lot	2,817	/lot
	Spread Rate	1,057	/spread	845	/spread

Hong Kong and China Gas Co Ltd	Full Rate	1,098	/lot	879	/lot
Hong Kong and China Gas Co Ltd	Spread Rate	329	/spread	264	/spread

Henderson Land Development Co Ltd	Full Rate	3,228	/lot	2,582	/lot
Henderson Land Development Co Ltd	Spread Rate	968	/spread	775	/spread

Huaneng Power International Inc	Full Rate	1,395	/lot	1,116	/lot
	Spread Rate	419	/spread	335	/spread
	Spread Rate	419	/spread	335	/spread

Hang Seng Bank Ltd	Full Rate	696	/lot	557	/lot
Hang Seng Bank Ltd	Spread Rate	209	/spread	167	/spread

Hutchison Whampoa Ltd	Full Rate	4,994	/lot	3,995	/lot
Hutchison Whampoa Ltd	Spread Rate	1,498	/spread	1,199	/spread

Industrial and Commercial Bank of China Ltd	Full Rate	408	/lot	326	/lot
Industrial and Commercial Bank of China Ltd	Spread Rate	122	/spread	98	/spread

Johnson Electric Holdings Ltd	Full Rate	258	/lot	206	/lot
Johnson Electric Holdings Ltd	Spread Rate	77	/spread	62	/spread

Lenovo Group Ltd	Full Rate	677	/lot	542	/lot
Lenovo Group Ltd	Spread Rate	203	/spread	163	/spread

Li & Fung Ltd	Full Rate	6,274	/lot	5,019	/lot
Li & Fung Ltd	Spread Rate	1,882	/spread	1,506	/spread

MTR Corporation Ltd	Full Rate	792	/lot	634	/lot
MTR Corporation Ltd	Spread Rate	238	/spread	190	/spread

New World Development Co Ltd	Full Rate	1,487	/lot	1,190	/lot
New World Development Co Ltd	Spread Rate	446	/spread	357	/spread

Ping An Insurance (Group) Co of China Ltd	Full Rate	2,842	/lot	2,274	/lot
Ping An Insurance (Group) Co of China Ltd	Spread Rate	853	/spread	682	/spread

PCCW Ltd	Full Rate	294	/lot	236	/lot
PCCW Ltd	Spread Rate	88	/spread	71	/spread

PetroChina Company Ltd	Full Rate	1,401	/lot	1,121	/lot
PetroChina Company Ltd	Spread Rate	420	/spread	336	/spread

Sun Hung Kai Properties Ltd	Full Rate	6,801	/lot	5,441	/lot
Sun Hung Kai Properties Ltd	Spread Rate	2,040	/spread	1,632	/spread

Swire Pacific Ltd “A”	Full Rate	3,095	/lot	2,476	/lot
Swire Pacific Ltd “A”	Spread Rate	929	/spread	743	/spread

The Wharf (Holdings) Ltd	Full Rate	1,793	/lot	1,435	/lot
The Wharf (Holdings) Ltd	Spread Rate	538	/spread	431	/spread

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 Three-Month HIBOR Futures

Spread Combination	Initial Margin (HK$)	Maintenance Margin (HK$)
5th month vs 9th month 5th month vs 10th month 6th month vs 9th month 6th month vs 10th month 7th month vs 9th month 7th month vs 10th month 8th month vs 9th month 8th month vs 10th month	3,475 per spread	2,780 per spread
1st month vs 9th month 1st month vs 10th month 2nd month vs 9th month 2nd month vs 10th month 3rd month vs 9th month 3rd month vs 10th month 4th month vs 9th month 4th month vs 10th month	3,329 per spread	2,663 per spread
1st month vs 5th month 1st month vs 6th month 1st month vs 7th month 1st month vs 8th month 2nd month vs 5th month 2nd month vs 6th month 2nd month vs 7th month 2nd month vs 8th month 3rd month vs 5th month 3rd month vs 6th month 3rd month vs 7th month 3rd month vs 8th month 4th month vs 5th month 4th month vs 6th month 4th month vs 7th month 4th month vs 8th month	2,986 per spread	2,389 per spread
9th month vs 10th month	2,494 per spread	1,995 per spread
5th month vs 6th month 5th month vs 7th month 5th month vs 8th month 6th month vs 7th month 6th month vs 8th month 7th month vs 8th month	2,238 per spread	1,790 per spread
1st month vs 2nd month 1st month vs 3rd month 1st month vs 4th month 2nd month vs 3rd month 2nd month vs 4th month 3rd month vs 4th month	2,007 per spread	1,606 per spread

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 2nd month vs 4th month 2nd month vs 5th month 2nd month vs 6th month	3,719 per spread	2,975 per spread
3rd month vs 4th month 3rd month vs 5th month 3rd month vs 6th month	3,641 per spread	2,912 per spread
4th month vs 5th month 4th month vs 6th month 5th month vs 6th month	2,581 per spread	2,065 per spread
1st month vs 3rd month 2nd month vs 3rd month	2,214 per spread	1,771 per spread
1st month vs 2nd month	1,675 per spread	1,340 per spread

Updated 26 Feb 2007