HKFE Announces Revised Margins for Futures Contracts

Market Operations

30 Aug 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 Monday, 3 September 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	110,700	/lot	88,560	/lot
Hang Seng Index	Spread Rate	7,500	/spread	6,000	/spread

Mini-Hang Seng Index	Full Rate	22,140	/lot	17,712	/lot
Mini-Hang Seng Index	Spread Rate	1,500	/spread	1,200	/spread

FTSE/Xinhua China 25 Index	Full Rate	125,200	/lot	100,160	/lot
FTSE/Xinhua China 25 Index	Spread Rate	37,560	/spread	30,048	/spread

H-Financials Index	Full Rate	91,214	/lot	72,971	/lot
H-Financials Index	Spread Rate	27,364	/spread	21,891	/spread

H-shares Index	Full Rate	90,200	/lot	72,160	/lot
H-shares Index	Spread Rate	27,060	/spread	21,648	/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	6,648	/lot	5,319	/lot
One-Month HIBOR	Spread Rate	Please refer to attached table

Three-Month HIBOR	Full Rate	3,359	/lot	2,688	/lot
Three-Month HIBOR	Spread Rate	Please refer to attached table
Aluminum Corporation of China Ltd	Full Rate	7,380	/lot	5,904	/lot
Aluminum Corporation of China Ltd	Spread Rate	2,214	/spread	1,771	/spread

Bank of China Ltd	Full Rate	504	/lot	403	/lot
Bank of China Ltd	Spread Rate	151	/spread	121	/spread

Bank of Communications Co Ltd	Full Rate	656	/lot	525	/lot
Bank of Communications Co Ltd	Spread Rate	197	/spread	158	/spread

The Bank of East Asia Ltd	Full Rate	701	/lot	561	/lot
The Bank of East Asia Ltd	Spread Rate	210	/spread	168	/spread

BOC Hong Kong (Holdings) Ltd	Full Rate	1,019	/lot	815	/lot
BOC Hong Kong (Holdings) Ltd	Spread Rate	306	/spread	245	/spread

China Construction Bank Corporation	Full Rate	789	/lot	631	/lot
China Construction Bank Corporation	Spread Rate	237	/spread	189	/spread

China Communications Construction Co Ltd	Full Rate	2,534	/lot	2,027	/lot
China Communications Construction Co Ltd	Spread Rate	760	/spread	608	/spread

China Mobile (Hong Kong) Ltd	Full Rate	5,130	/lot	4,104	/lot
China Mobile (Hong Kong) Ltd	Spread Rate	1,539	/spread	1,231	/spread

China Unicom Ltd	Full Rate	3,539	/lot	2,831	/lot
China Unicom Ltd	Spread Rate	1,062	/spread	849	/spread

CITIC Pacific Ltd	Full Rate	5,954	/lot	4,763	/lot
CITIC Pacific Ltd	Spread Rate	1,786	/spread	1,429	/spread

Cheung Kong (Holdings) Ltd	Full Rate	9,619	/lot	7,695	/lot
Cheung Kong (Holdings) Ltd	Spread Rate	2,886	/spread	2,309	/spread

Cheung Kong Infrastructure Holdings Ltd	Full Rate	2,725	/lot	2,180	/lot
Cheung Kong Infrastructure Holdings Ltd	Spread Rate	818	/spread	654	/spread

China Life Insurance Company Ltd	Full Rate	4,335	/lot	3,468	/lot
China Life Insurance Company Ltd	Spread Rate	1,301	/spread	1,040	/spread

CLP Holdings Ltd	Full Rate	1,640	/lot	1,312	/lot
CLP Holdings Ltd	Spread Rate	492	/spread	394	/spread

China Merchants Bank Co Ltd	Full Rate	1,693	/lot	1,354	/lot
China Merchants Bank Co Ltd	Spread Rate	508	/spread	406	/spread

CNOOC Ltd	Full Rate	1,195	/lot	956	/lot
CNOOC Ltd	Spread Rate	359	/spread	287	/spread

China Netcom Group Corporation (Hong Kong) Ltd	Full Rate	728	/lot	582	/lot
China Netcom Group Corporation (Hong Kong) Ltd	Spread Rate	218	/spread	175	/spread

Cathay Pacific Airways Ltd	Full Rate	1,588	/lot	1,270	/lot
Cathay Pacific Airways Ltd	Spread Rate	476	/spread	381	/spread

China Petroleum & Chemical Corporation	Full Rate	1,774	/lot	1,419	/lot
China Petroleum & Chemical Corporation	Spread Rate	532	/spread	426	/spread

China Telecom Corporation Ltd	Full Rate	1,076	/lot	861	/lot
China Telecom Corporation Ltd	Spread Rate	323	/spread	258	/spread

Denway Motors Ltd	Full Rate	906	/lot	725	/lot
Denway Motors Ltd	Spread Rate	272	/spread	218	/spread

Esprit Holdings Ltd (ESP: Multiplier = 100)	Full Rate	1,262	/lot	1,010	/lot
Esprit Holdings Ltd (ESP: Multiplier = 100)	Spread Rate	379	/spread	303	/spread

Esprit Holdings Ltd (ESA: Multiplier = 500)	Full Rate	6,310	/lot	5,050	/lot
Esprit Holdings Ltd (ESA: Multiplier = 500)	Spread Rate	1,895	/spread	1,515	/spread

Foxconn International Holdings Ltd	Full Rate	2,051	/lot	1,641	/lot
Foxconn International Holdings Ltd	Spread Rate	615	/spread	492	/spread

Hongkong Electric Holdings Ltd	Full Rate	1,196	/lot	957	/lot
Hongkong Electric Holdings Ltd	Spread Rate	359	/spread	287	/spread

Hong Kong Exchanges and Clearing Ltd	Full Rate	9,921	/lot	7,937	/lot
Hong Kong Exchanges and Clearing Ltd	Spread Rate	2,976	/spread	2,381	/spread

HSBC Holdings Plc	Full Rate	3,510	/lot	2,808	/lot
	Spread Rate	1,053	/spread	842	/spread

Hong Kong and China Gas Co Ltd (HKG: Multiplier = 1,000)	Full Rate	1,190	/lot	952	/lot
Hong Kong and China Gas Co Ltd (HKG: Multiplier = 1,000)	Spread Rate	357	/spread	286	/spread

Hong Kong and China Gas Co Ltd (HKA: Multiplier = 1,100)	Full Rate	1,309	/lot	1,047	/lot
Hong Kong and China Gas Co Ltd (HKA: Multiplier = 1,100)	Spread Rate	393	/spread	315	/spread

Henderson Land Development Co Ltd	Full Rate	4,914	/lot	3,931	/lot
Henderson Land Development Co Ltd	Spread Rate	1,474	/spread	1,179	/spread

Huaneng Power International Inc	Full Rate	1,953	/lot	1,562	/lot
Huaneng Power International Inc	Spread Rate	586	/spread	469	/spread

Hang Seng Bank Ltd	Full Rate	1,181	/lot	945	/lot
Hang Seng Bank Ltd	Spread Rate	354	/spread	284	/spread

Hutchison Whampoa Ltd	Full Rate	6,009	/lot	4,807	/lot
Hutchison Whampoa Ltd	Spread Rate	1,803	/spread	1,442	/spread

Industrial and Commercial Bank of China Ltd	Full Rate	636	/lot	509	/lot
Industrial and Commercial Bank of China Ltd	Spread Rate	191	/spread	153	/spread

Johnson Electric Holdings Ltd	Full Rate	187	/lot	150	/lot
Johnson Electric Holdings Ltd	Spread Rate	56	/spread	45	/spread

Lenovo Group Ltd	Full Rate	1,642	/lot	1,314	/lot
Lenovo Group Ltd	Spread Rate	493	/spread	394	/spread

Li & Fung Ltd	Full Rate	5,312	/lot	4,249	/lot
Li & Fung Ltd	Spread Rate	1,594	/spread	1,275	/spread

MTR Corporation Ltd	Full Rate	597	/lot	478	/lot
MTR Corporation Ltd	Spread Rate	179	/spread	143	/spread

New World Development Co Ltd	Full Rate	1,723	/lot	1,378	/lot
New World Development Co Ltd	Spread Rate	517	/spread	413	/spread

Ping An Insurance (Group) Co of China Ltd	Full Rate	4,942	/lot	3,953	/lot
Ping An Insurance (Group) Co of China Ltd	Spread Rate	1,483	/spread	1,186	/spread

PCCW Ltd	Full Rate	293	/lot	235	/lot
PCCW Ltd	Spread Rate	88	/spread	71	/spread

PetroChina Company Ltd	Full Rate	2,348	/lot	1,879	/lot
PetroChina Company Ltd	Spread Rate	704	/spread	564	/spread

PICC Property and Casualty Co Ltd	Full Rate	3,964	/lot	3,171	/lot
PICC Property and Casualty Co Ltd	Spread Rate	1,189	/spread	951	/spread

Sun Hung Kai Properties Ltd	Full Rate	10,750	/lot	8,600	/lot
Sun Hung Kai Properties Ltd	Spread Rate	3,225	/spread	2,580	/spread

Swire Pacific Ltd “A”	Full Rate	3,132	/lot	2,505	/lot
Swire Pacific Ltd “A”	Spread Rate	940	/spread	752	/spread

The Wharf (Holdings) Ltd	Full Rate	3,708	/lot	2,966	/lot
The Wharf (Holdings) Ltd	Spread Rate	1,112	/spread	890	/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$)	Maintenance Margin (HK$)
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	4,413 per spread	3,531 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	4,099 per spread	3,279 per spread
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	3,680 per spread	2,944 per spread
9th month vs 10th month	3,081 per spread	2,465 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	2,865 per spread	2,292 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	2,760 per spread	2,208 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	7,877 per spread	6,302 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	7,045 per spread	5,636 per spread
4th month vs 5th month 4th month vs 6th month 5th month vs 6th month	5,290 per spread	4,232 per spread
1st month vs 2nd month 1st month vs 3rd month	3,258 per spread	2,606 per spread
2nd month vs 3rd month	2,010 per spread	1,608 per spread

Updated 30 Aug 2007