The Securities and Futures Commission (SFC) and Hong Kong Exchanges and Clearing Limited (HKEx) wish to remind Exchange Participants and investors of possible increases in securities trading activities and the risk of unusual price movements during times of index rebalancing.

Exchange Participants are requested to note the announcements made by MSCI Barra in relation to its index review results.  Changes to the MSCI indices are expected to take effect at the close of 25 November 2008. 

The SFC and HKEx are aware of possible increases in trading activities and unusual price movements around the market close during index rebalancing events, period ends and expiration of derivatives contracts.  Exchange Participants and investors should be mindful of these market events when making investment decisions.

The SFC and HKEx will closely monitor the trading activities during these times and conduct thorough reviews should any irregularities be detected.