SECURITIES AND FUTURES COMMISSION

The Stock Exchange of Hong Kong

NEWS RELEASE
October 7, 1999

Listed issuers are reminded of their obligations under paragraph 2 of the Listing Agreement and Chapter 14 of the Exchange Listing Rules. Announcements by listed issuers on investments in technology and internet-related businesses should contain a high degree of disclosure. Investors are reminded to study carefully the fundamentals and officially published information of listed issuers before dealing in their shares.

The Securities and Futures Commission and the Stock Exchange of Hong Kong have noted that recently the market has reacted strongly to rumours, or announcements, of listed issuers' decisions to invest in technology and internet-related businesses.

Proposals by listed issuers to invest in such businesses may require disclosure under Chapter 14 of the Exchange Listing Rules or paragraph 2 of the Listing Agreement. Under paragraph 2 of the Listing Agreement, a listed issuer is required to:

"keep the Exchange, members of the issuer and other holders of its listed securities informed as soon as reasonably practicable of any information relating to the group...which:-

(a) is necessary to enable them and the public to appraise the position of the group;

(b) is necessary to avoid the establishment of a false market in its securities; and

(c) might be reasonably expected materially to affect market activity in and the price of its securities."

In view of the market's strong reaction to information about listed issuers' involvement in technology and internet-related businesses, the SFC and the Exchange expect a high degree of disclosure by listed issuers in their announcements relating to any such investments. Such an announcement should contain the principal terms of the investment and a full description of the exact nature of the investment and all its relevant parties. The SFC and the Exchange will, where necessary, make detailed enquiries with listed issuers or the relevant parties to ensure adequate disclosure.

The SFC and the Exchange encourage listed issuers to use press releases and press interviews to disseminate information, provided that this is done no earlier than the publication of any paid newspaper announcements required by paragraph 2 of the Listing Agreement and Chapter 14 of the Exchange Listing Rules.

Directors of listed issuers are reminded that, until a formal announcement with sufficient information is published, they are directly responsible for keeping any price-sensitive information strictly confidential.

Finally, investors are reminded that they should always study carefully the fundamentals and officially published information of any listed issuer before dealing in its shares.

October 7, 1999

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