Seven Nasdaq Stocks Begin Trading on The Stock Exchange of Hong Kong
- Pilot Program
- Amgen, Applied Materials, Cisco, Dell, Intel, Microsoft, Starbucks
New York, Hong Kong V The Nasdaq Stock Market® (Nasdaq®) and Hong Kong Exchanges and Clearing Ltd. (HKEx) today announced the beginning of a pilot program to quote and trade seven Nasdaq stocks in Hong Kong. The seven stocks include some of the largest Nasdaq stocks with strong business interests in Asia (see attached fact sheets on each company), as follows: Amgen, Applied Materials, Cisco, Dell, Intel, Microsoft, Starbucks.
HKEx is the holding company of The Stock Exchange of Hong Kong (SEHK).
The Nasdaq shares are being admitted for trading only. They are not listed on SEHK. The Nasdaq Stock Market retains responsibility for the regulation of these companies to ensure that they meet the relevant listing requirements.
Nasdaq Chairman and Chief Executive Officer, Frank G. Zarb commented, This is a step forward in the development of global trading of the worlds leading stocks. As our companies pursue business opportunities globally, it makes sense that they offer their stock globally X reinforcing their brand names in the minds of consumers and investors and having the opportunity to access a lower cost of capital.
Nasdaq Internationals President, John T. Wall added, This is a pilot program. We hope to learn what works and what doesnt. We will be watching to see how investor interest develops. This is the continuation of our partnership with SEHK. This will reduce Hong Kong investors transaction costs in dealing in US equities.
Charles Lee, chairman of HKEx, said this was the first pilot program to allow Nasdaq stocks to be quoted for trading in an Asian time-zone Exchange. We anticipate investors' interest will grow in parallel with their investment knowledge in these stocks and with the extension of their strategy to cover overseas stocks. The development of a liquid market in Hong Kong for global stocks will help to establish it as an integral part of a 24-hour global trading market linking the Asian, European and US time zones, Mr. Lee said.
Kwong Ki-chi, chief executive of HKEx, said the Pilot Program offered investors in Hong Kong and the region easier access to the stocks of some of the leading companies which are shaping the development of the new economy. "The exemption of Stamp Duty on trading of the stocks has made the transaction costs very competitive," he said.
The sustained economic development in Hong Kong, China and the Asia region will create an enormous liquidity pool in this time-zone which will attract the trading of quality global stocks. These would in turn provide opportunities for investors to diversify their investments and an alternative hedging market for cross-border trading activities," said Mr Kwong.
The introduction of the Pilot Program follows the creation of the joint website by the SEHK and Nasdaq in December 1998. The joint website provides share price information on Hong Kong and US listed companies and was the first cooperative operation of its kind between major securities markets.
Some additional information about this Pilot Program:
- The stocks will be quoted and traded in Hong Kong dollars.
- The companies will be traded but not listed on SEHK. SEHK's Listing Rules will not apply to Pilot Program issuers, but they are committed to complying with all Nasdaq requirements.
- Trading on the stocks will be subject to SEHK rules and Hong Kong law including the market manipulation provisions of the Securities Ordinance.
- SEHK's trading hours are 10am to 4pm Hong Kong time, or 10pm to 4am, Eastern Daylight Time in the United States. There will be no overlap in trading hours between Hong Kong and Nasdaq.
- Market Makers are invited to provide competitive two-way prices on the AMS order book. The Market Makers are ING Baring Securities (Hong Kong) Ltd., Morgan Stanley Dean Witter Hong Kong Securities Ltd. and Timber Hill Securities Hong Kong Ltd.
- Nasdaq has entered into an Information Sharing Agreement with SEHK.
- Each of the pilot companies has provided a web-linked address to SEHK pointing to relevant and appropriate financial information and also to the companys Investor Relations site. This will help raise the companys profile and provide information to Hong Kong investors.
- Settlement will take place on T+2, the second trading day following the transaction, through the Central Clearing and Settlement System (CCASS) operated by Hong Kong Securities Clearing Company Ltd. (HKSCC).
- Clearance and settlement will be handled under an agreement between The Depository Trust Company (DTC) and HKSCC. Underlying shares can be transferred between DTC and HKSCC. This will permit shares held in HKSCC to be traded in Hong Kong dollars.
- Trading data will be posted on the SEHK and the joint websites.
The Stock Exchange of Hong Kong is the second largest exchange in Asia in terms of market capitalisation. It is a leading international capital formation and securities trading centre for Hong Kong and China, and is one of the most open markets in the world. For more information about SEHK, please visit the Web site: www.sehk.com.hk.
The Nasdaq Stock Market lists nearly 5,000 companies, has a larger dollar volume, and trades more shares per day than any other U.S. market. Nasdaq is a subsidiary of the National Association of Securities Dealers, Inc. (NASDR), the largest securities-industry, self-regulatory organisation in the United States. For more information about Nasdaq, please visit the Nasdaq Web site at www.nasdaq.com or the Nasdaq NewsroomSM at www.nasdaqnews.com.