The Stock Exchange of Hong Kong

NEWS RELEASE

June 1, 2000

The Stock Exchange of Hong Kong is pleased to announce that the Exchange Listing Rules have been amended to provide for the following changes in respect of mutual funds, unit trusts and open-ended investment companies: - the granting of "shelf approval" for the listing of redeemable securities; - the reduction of initial and annual listing fees charged to unit trusts, mutual funds and open-ended investment companies; - the reduction of the number of documents to be filed with the Exchange; and - the widening of the scope of the Exchange Listing Rule Chapter 20 (governing Funds authorised by the Securities and Futures Commission) and Chapter 21 (governing Funds not so authorised) to permit the listing of collective investment schemes other than mutual funds or unit trusts. These changes take effect on June 15, 2000.

Granting of "Shelf approval" for the Listing of Redeemable Securities

A new form, Form C3Z in Appendix 5 of the Exchange Listing Rules has been created to allow for the one-time approval of the issue of new securities up to an open-ended investment company's, or Chapter 21 (not authorised by the SFC for sale to the public in Hong Kong) unit trust's, mutual fund's, or other collective investment schemes' authorised share capital ("shelf approval"). This will enable further shares to be issued to new subscribers without having to obtain prior approval from the Exchange.

Reduction of Fees

In view of the relatively light administrative and regulatory burden imposed by funds in comparison to other equity issuers, Appendix 8 of the Exchange Listing Rules has been amended to substantially reduce the initial and annual listing fees charged to unit trusts, mutual funds and open-ended investment companies.

Reduction of the Number of Documents to be Filed with the Exchange

In order to reduce unnecessary administrative costs to funds, section 21 of the Exchange Listing Rules Appendix 7 Part A and Section 21 of Appendix 7 Part B have been amended to substantially reduce the number of physical copies of circulars, and interim or annual reports required to be submitted to the Exchange by mutual funds, unit trusts and open-ended investment companies.

Widening of the Scope of Chapters 20 and 21

Under section 15 of the Securities Ordinance, the SFC is currently empowered to authorise only unit trusts and mutual funds but not other collective investment schemes falling outside those two types. The Exchange Listing Rules 20.01 through 20.05 and Rules 21.01 and 21.02 have been amended to allow for the listing of collective investment schemes other than unit trusts and mutual funds for purposes of Chapter 20 (authorised by the SFC for sale to the Hong Kong public) and Chapter 21 (not so authorised).

The above changes take effect on June 15, 2000.

Reprinted pages of the Exchange Listing Rules will be distributed in due course.

Corporate Communications Department

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