The Merger Proposals For The Hong Kong Stock And Futures Exchanges And The Clearing Houses Take Effect

Hong Kong Exchanges and Clearing Limited (HKEx) announced that the Stock Exchange of Hong Kong Limited, the Hong Kong Futures Exchange and the Hong Kong Securities Clearing Company have become its wholly owned subsidiaries effective today (Monday) under the Schemes of Arrangements of the exchanges and the Exchanges and Clearing Houses (Merger) Ordinance. All conditions under the Stock Exchange Scheme and the Futures Exchange Scheme have become effective and been fulfilled. A total of 17 shareholders of the stock exchange and ten shareholders of the futures exchange have elected to receive the cash alternative offered by HKEx, involving $64,341,667.52 for the stock exchange, representing the cancellation of 16,582,904 HKEx shares, and $43,076,737.76 for the futures exchange, representing the cancellation of 11,102,252 HKEx shares. Including the two HKEx shares which have been retained by the Financial Secretary Incorporated, there will be a total of 1,040,664,846 issued HKEx shares, of which 731,262,096 and 309,402,748 shares were issued to the stock exchange and futures exchange shareholders respectively. Certificates for HKEx shares and / or cheques will be sent by HKEx within ten days of March 6, 2000. The current trading and settlement arrangements in the stock and futures market remain unchanged. The exchanges and clearing houses will announce changes to their rules and regulations in separate announcements. Meanwhile, Mr Kwong Ki-chi the Chief Executive, and Mr. Alec Tsui Yiu-wa the Chief Operating Officer, have assumed office today. HKEx also unveiled its web site at http://www.hkex.com.hk to give market participants around the world convenient access to its corporate information and the latest news.