Hong Kong Securities Clearing Company Limited (HKSCC), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), will waive the stock custody fees for delisted securities and securities in prolonged trading suspension, effective 1 February 2005.

HKSCC currently charges CCASS Participants a custody fee of $0.012 per board lot on a monthly basis for securities held in the Central Clearing and Settlement System (CCASS) at the end of each month. HKSCC notes that CCASS Participants may pass on these fees to their clients.

The waiver is being introduced in response to market comments and follows a careful review by HKSCC. "HKSCC believes the waiver is in the interest of the investing public, which is likely to enjoy some cost savings," said Stewart Shing, Chief Executive of HKSCC.

Types of securities held in CCASS covered by the waiver are: