HKFE Announces Revised Margins for Futures Contracts

Market Operations

26 May 2009

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, 1 June 2009, 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	90,500	/lot	72,400	/lot
Hang Seng Index	Spread Rate	7,500	/spread	6,000	/spread

Mini-Hang Seng Index	Full Rate	18,100	/lot	14,480	/lot
Mini-Hang Seng Index	Spread Rate	1,500	/spread	1,200	/spread

H-shares Index	Full Rate	57,550	/lot	46,050	/lot
H-shares Index	Spread Rate	17,300	/spread	13,850	/spread

Mini H-shares Index	Full Rate	11,510	/lot	9,210	/lot
Mini H-shares Index	Spread Rate	3,460	/spread	2,770	/spread

Three-Year EFN	Full Rate	10,760	/lot	8,610	/lot
Three-Year EFN	Spread Rate	3,230	/spread	2,590	/spread

One-Month HIBOR	Full Rate	2,290	/lot	1,830	/lot
	Spread Rate	Please refer to attached table

Three-Month HIBOR	Full Rate	2,160	/lot	1,730	/lot
	Spread Rate	Please refer to attached table

Aluminum Corporation of China Ltd	Full Rate	2,840	/lot	2,270	/lot
Aluminum Corporation of China Ltd	Spread Rate	852	/spread	681	/spread

Bank of China Ltd	Full Rate	323	/lot	258	/lot
Bank of China Ltd	Spread Rate	97	/spread	78	/spread

Bank of Communications Co Ltd	Full Rate	821	/lot	657	/lot
Bank of Communications Co Ltd	Spread Rate	247	/spread	198	/spread

The Bank of East Asia Ltd (BEA-Multiplier = 200)	Full Rate	776	/lot	621	/lot
The Bank of East Asia Ltd (BEA-Multiplier = 200)	Spread Rate	233	/spread	187	/spread

The Bank of East Asia Ltd (BEB-Multiplier = 220)	Full Rate	854	/lot	683	/lot
The Bank of East Asia Ltd (BEB-Multiplier = 220)	Spread Rate	256	/spread	206	/spread

BOC Hong Kong (Holdings) Ltd	Full Rate	670	/lot	536	/lot
BOC Hong Kong (Holdings) Ltd	Spread Rate	201	/spread	161	/spread

China Construction Bank Corporation	Full Rate	720	/lot	576	/lot
China Construction Bank Corporation	Spread Rate	216	/spread	173	/spread

China Communications Construction Co Ltd	Full Rate	1,250	/lot	1,000	/lot
China Communications Construction Co Ltd	Spread Rate	375	/spread	300	/spread

China Mobile Ltd	Full Rate	4,140	/lot	3,310	/lot
China Mobile Ltd	Spread Rate	1,250	/spread	993	/spread

China Unicom (Hong Kong) Ltd (CHU-Multiplier = 2,000)	Full Rate	2,330	/lot	1,870	/lot
China Unicom (Hong Kong) Ltd (CHU-Multiplier = 2,000)	Spread Rate	699	/spread	561	/spread

China Unicom (Hong Kong) Ltd (CHA-Multiplier = 754)	Full Rate	878	/lot	705	/lot
China Unicom (Hong Kong) Ltd (CHA-Multiplier = 754)	Spread Rate	264	/spread	211	/spread

CITIC Pacific Ltd	Full Rate	2,180	/lot	1,740	/lot
CITIC Pacific Ltd	Spread Rate	654	/spread	522	/spread

Cheung Kong (Holdings) Ltd	Full Rate	10,570	/lot	8,460	/lot
Cheung Kong (Holdings) Ltd	Spread Rate	3,180	/spread	2,540	/spread

Cheung Kong Infrastructure Holdings Ltd	Full Rate	1,990	/lot	1,590	/lot
Cheung Kong Infrastructure Holdings Ltd	Spread Rate	597	/spread	477	/spread

China Life Insurance Company Ltd	Full Rate	3,030	/lot	2,430	/lot
China Life Insurance Company Ltd	Spread Rate	909	/spread	729	/spread

CLP Holdings Ltd	Full Rate	1,610	/lot	1,290	/lot
CLP Holdings Ltd	Spread Rate	483	/spread	387	/spread

China Merchants Bank Co Ltd (CMB-Multiplier = 500)	Full Rate	1,090	/lot	865	/lot
China Merchants Bank Co Ltd (CMB-Multiplier = 500)	Spread Rate	327	/spread	260	/spread

China Merchants Bank Co Ltd (CMA-Multiplier = 650)	Full Rate	1,417	/lot	1,125	/lot
China Merchants Bank Co Ltd (CMA-Multiplier = 650)	Spread Rate	425	/spread	338	/spread

CNOOC Ltd	Full Rate	1,450	/lot	1,160	/lot
CNOOC Ltd	Spread Rate	435	/spread	348	/spread

Cathay Pacific Airways Ltd	Full Rate	1,630	/lot	1,310	/lot
Cathay Pacific Airways Ltd	Spread Rate	489	/spread	393	/spread

China Petroleum & Chemical Corporation	Full Rate	1,620	/lot	1,300	/lot
China Petroleum & Chemical Corporation	Spread Rate	486	/spread	390	/spread

China Telecom Corporation Ltd	Full Rate	838	/lot	670	/lot
China Telecom Corporation Ltd	Spread Rate	252	/spread	201	/spread

Denway Motors Ltd	Full Rate	1,360	/lot	1,090	/lot
Denway Motors Ltd	Spread Rate	408	/spread	327	/spread

Esprit Holdings Ltd (ESP-Multiplier =100)	Full Rate	883	/lot	707	/lot
Esprit Holdings Ltd (ESP-Multiplier =100)	Spread Rate	265	/spread	213	/spread

Esprit Holdings Ltd (ESA-Multiplier =106)	Full Rate	933	/lot	747	/lot
Esprit Holdings Ltd (ESA-Multiplier =106)	Spread Rate	280	/spread	225	/spread

Foxconn International Holdings Ltd	Full Rate	1,270	/lot	1,010	/lot
Foxconn International Holdings Ltd	Spread Rate	381	/spread	303	/spread

Hongkong Electric Holdings Ltd	Full Rate	1,320	/lot	1,060	/lot
Hongkong Electric Holdings Ltd	Spread Rate	396	/spread	318	/spread

Hong Kong Exchanges and Clearing Ltd	Full Rate	1,820	/lot	1,460	/lot
Hong Kong Exchanges and Clearing Ltd	Spread Rate	546	/spread	438	/spread

HSBC Holdings Plc (HKB-Multiplier = 400)	Full Rate	4,210	/lot	3,370	/lot
HSBC Holdings Plc (HKB-Multiplier = 400)	Spread Rate	1,270	/spread	1,020	/spread

HSBC Holdings Plc (HKC-Multiplier = 432)	Full Rate	4,546	/lot	3,639	/lot
HSBC Holdings Plc (HKC-Multiplier = 432)	Spread Rate	1,371	/spread	1,102	/spread

Hong Kong and China Gas Co Ltd	Full Rate	1,330	/lot	1,060	/lot
Hong Kong and China Gas Co Ltd	Spread Rate	399	/spread	318	/spread

Henderson Land Development Co Ltd	Full Rate	5,440	/lot	4,350	/lot
Henderson Land Development Co Ltd	Spread Rate	1,640	/spread	1,310	/spread

Huaneng Power International Inc	Full Rate	1,120	/lot	894	/lot
Huaneng Power International Inc	Spread Rate	336	/spread	269	/spread

Hang Seng Bank Ltd	Full Rate	1,130	/lot	903	/lot
Hang Seng Bank Ltd	Spread Rate	339	/spread	271	/spread

Hutchison Whampoa Ltd	Full Rate	6,660	/lot	5,330	/lot
Hutchison Whampoa Ltd	Spread Rate	2,000	/spread	1,600	/spread

Industrial and Commercial Bank of China Ltd	Full Rate	576	/lot	461	/lot
Industrial and Commercial Bank of China Ltd	Spread Rate	173	/spread	138	/spread

Johnson Electric Holdings Ltd	Full Rate	197	/lot	158	/lot
Johnson Electric Holdings Ltd	Spread Rate	60	/spread	48	/spread

Li & Fung Ltd	Full Rate	7,840	/lot	6,270	/lot
Li & Fung Ltd	Spread Rate	2,360	/spread	1,890	/spread

MTR Corporation Ltd	Full Rate	1,050	/lot	837	/lot
MTR Corporation Ltd	Spread Rate	315	/spread	252	/spread

New World Development Co Ltd	Full Rate	2,100	/lot	1,680	/lot
New World Development Co Ltd	Spread Rate	630	/spread	504	/spread

Ping An Insurance (Group) Co of China Ltd	Full Rate	3,940	/lot	3,150	/lot
Ping An Insurance (Group) Co of China Ltd	Spread Rate	1,190	/spread	945	/spread

PetroChina Company Ltd	Full Rate	2,080	/lot	1,670	/lot
PetroChina Company Ltd	Spread Rate	624	/spread	501	/spread

PICC Property and Casualty Co Ltd	Full Rate	1,690	/lot	1,350	/lot
PICC Property and Casualty Co Ltd	Spread Rate	507	/spread	405	/spread

Sun Hung Kai Properties Ltd	Full Rate	10,050	/lot	8,040	/lot
Sun Hung Kai Properties Ltd	Spread Rate	3,020	/spread	2,420	/spread

Swire Pacific Ltd “A”	Full Rate	4,080	/lot	3,270	/lot
Swire Pacific Ltd “A”	Spread Rate	1,230	/spread	981	/spread

Wharf (Holdings) Ltd	Full Rate	4,020	/lot	3,210	/lot
Wharf (Holdings) Ltd	Spread Rate	1,210	/spread	963	/spread

Futures Contract	Margin Rate	Initial Margin (US$)		Maintenance Margin (US$)

Gold Futures	Full Rate	4,840	/lot	3,870	/lot
Gold Futures	Spread Rate	1,460	/spread	1,170	/spread

HKFE emphasises 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$)	Maintenance Margin (HK$)
4th month vs 7th month 4th month vs 8th month 4th month vs 9th month 4th month vs 10th month 5th month vs 7th month 5th month vs 8th month 5th month vs 9th month 5th month vs 10th month 6th month vs 7th month 6th month vs 8th month 6th month vs 9th month 6th month vs 10th month	3,190 per spread	2,550 per spread
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 3rd month vs 4th month 3rd month vs 5th month 3rd month vs 6th month	3,030 per spread	2,420 per spread
1st month vs 7th month 1st month vs 8th month 1st month vs 9th month 1st month vs 10th month 2nd month vs 7th month 2nd month vs 8th month 2nd month vs 9th month 2nd month vs 10th month 3rd month vs 7th month 3rd month vs 8th month 3rd month vs 9th month 3rd month vs 10th month	2,680 per spread	2,140 per spread
1st month vs 2nd month 1st month vs 3rd month 2nd month vs 3rd month	2,580 per spread	2,060 per spread
4th month vs 5th month 4th month vs 6th month 5th month vs 6th month	2,340 per spread	1,870 per spread
7th month vs 8th month 7th month vs 9th month 7th month vs 10th month 8th month vs 9th month 8th month vs 10th month 9th month vs 10th month	898 per spread	719 per spread

Spread Margin Rates
for One-Month HIBOR Futures

Spread Combination	Initial Margin (HK$)	Maintenance Margin (HK$)
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	3,040 per spread	2,430 per spread
1st month vs 4th month 1st month vs 5th month 1st month vs 6th month	3,010 per spread	2,410 per spread
4th month vs 5th month 4th month vs 6th month 5th month vs 6th month	2,380 per spread	1,900 per spread
1st month vs 2nd month 1st month vs 3rd month	2,360 per spread	1,890 per spread
2nd month vs 3rd month	1,220 per spread	974 per spread

Updated 26 May 2009