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Slide1 : Enhancements of Information Dissemination under the Electronic Disclosure Project Briefing for Exchange Participants 11 May 2007


Slide2 : Outline Overview of Electronic Disclosure Project Current Information Dissemination Arrangement Further Information for Exchange Participants Preparation by HKEx Timetable for Exchange Participants Question and Answers


Electronic Disclosure is the right direction : Electronic Disclosure is the right direction Electronic Disclosure will: provide fair, timely, accurate, secure and cost effective access to regulatory information; enhance investors’ confidence in our market infrastructure and regulations; align Hong Kong with international norms; and enhance Hong Kong’s competitiveness. It will also provide the foundation for: Dissemination of issuer information during trading hours; Modified suspension policy to minimise adverse effect on trading; and Allow the use of electronic templates to collect enhanced issuer disclosures. Overview of Electronic Disclosure Project


Brief History of the Electronic Disclosure Project : Brief History of the Electronic Disclosure Project Overview of Electronic Disclosure Project


Electronic Disclosure - Market Impact : Electronic Disclosure - Market Impact Electronic Disclosure proposals in summary: Abolish paid advertisements in newspapers Mandate electronic submission Provide straight-through processing Require issuers to establish their own website by 25 June 2008 Consequential changes to suspension policy. Proposals effective from 25 June 2007 Transitional arrangements: Until 24 December 2007 issuers to publish a notification in newspapers Until 24 June 2008 issuers without their own website must continue to publish announcements in newspapers Communication, education and familiarisation. Overview of Electronic Disclosure Project


Slide6 : eSubmission System (ESS) ePublication System (EPS)   Listing Division  No Issuers Issuer Information Feed (IIS) PDF format News alerts AMS/3   Investors  Information vendors  Market Data Feed (MDF) /   Trading terminals Vetting?   ESS for vetting Clearance    Yes  Shareholder circulars and press releases  Scope of NPA News alerts (All announce-ments) (All announcements) EMSIS HKEx website Detailed New Operation Model Overview of Electronic Disclosure Project


Slide7 : Go online for full version of issuer announcements Newspapers continue to cover corporate news Stay alert by signing up for HKEx’s free email/SMS alert service More timely dissemination of issuer news Free online central repository of issuer documents Upgraded functionality and capacity of HKEx website for access to issuer documents Easier retrieval and searching of issuer archives with newly introduced headline categories Investors Impact on Investors Overview of Electronic Disclosure Project


Slide8 : Enhancements of website functionality for display and searching of issuer information Enhancements to ISC email/SMS alert service in April Alert Investor programme to raise awareness of the publication of issuer information on HKEx website Communication paper outlining Electronic Disclosure regime and its implications for investors and other stakeholders Public Viewing Room opened to facilitate investor access to issuer information posted on HKEx website Preparing Investors Overview of Electronic Disclosure Project


Slide9 : AMS/3 will no longer provide full text of issuer announcements. Brokers have to rely on HKEx website or information vendors’ services for access to issuer announcements HKEx will introduce a News Alerts Service so that AMS/3 traders will be alerted whenever a listed issuer announcement or document is published Floor traders at the Trading Hall have to bring their own portable PC for access to Internet, or use the online facilities available at back-up trading booths Impact on Exchange Participants Overview of Electronic Disclosure Project


Slide10 : New issuer news alert service for AMS/3 and Market Data Feed users from 25 June 2007 Provision of headline categories for all issuer information Briefings and circulars to Exchange Participants on implications of Electronic Disclosure Preparing Exchange Participants Overview of Electronic Disclosure Project


How issuer provides issuer documents? : How issuer provides issuer documents? To HKEx: E-Submission System (ESS) CD-Rom or computer diskette delivered to HKEx’s designated collection box By fax (only limited types of documents) To other parties: Published on one Chinese and one English local newspaper in the form of paid advertisements (Main Board issuers only) Current Information Dissemination Arrangement


How to obtain issuer documents? : How to obtain issuer documents? HKEx: HKEx’s official website (www.hkex.com.hk) GEM website (www.hkgem.com) AMS/3 trading terminals Information vendors’ terminals Others: Paid advertisements on local newspapers Shareholder circulars (for existing shareholders only) Current Information Dissemination Arrangement


Slide13 : Further Information for Exchange Participants Limitations of AMS/3 for display of issuer news AMS/3 News Alert Messages Issuer Information on HKEx website Relocation of Trading Information .


Slide14 : Further Information for Exchange Participants Limited coverage: Only vetted announcements and financial results of listed companies are uploaded to AMS. No graphics and tables: Only ASCII text format is allowed. No archive depository: All news will be erased at the end of the trading day. Incomplete: News issued earlier will be “pushed out” by new incoming news. System design: AMS/3 screen is not designed for display of lengthy issuer announcement. Limitations of AMS/3 for display of issuer news


Slide15 : AMS/3 News Alert Message Headline Categories will be used to facilitate the search of issuer documents Further Information for Exchange Participants


Slide16 : Headline Categories will be used to facilitate the search of issuer documents SAMPLE Notification Headline category Free-text title Issuer’s own website Caveats Inspection of announcement Further Information for Exchange Participants


Slide17 : Quick Access Icon at Homepage Further Information for Exchange Participants Issuer Information on HKEx Website – Latest Listed Company News


Slide18 : Latest Announcements Further Information for Exchange Participants Issuer Information on HKEx Website – Latest Listed Company News


Slide19 : Multiple Search Functions Further Information for Exchange Participants Issuer Information on HKEx Website – News Archive


Slide20 : Issuer Information on HKEx Website – Information Search Further Information for Exchange Participants


Slide21 : news alert service available through the Investment Service Centre (ISC) on the HKEx website Facilitate to keep track of latest issuer disclosures notify registered users by email and/or mobile phone text message alert of any announcements or disclosure Free of charge Email / Mobile Alerts for Issuer News Further Information for Exchange Participants


Slide22 : Placing advertisement in local newspapers and issuing news release; Forming Informed Investor Network with over 20 Exchange Participants to promote the service; Distributing promotional material ( posters, handbills and stickers) 23,000 registered subscribers Over 20 organisation joined the Informed Investor Network News Alert Service Promotion Program Further Information for Exchange Participants


Slide23 : Relocation of Trading Information and Information Table * Effective 2nd May 2007 Further Information for Exchange Participants


Slide24 : Centralised location for all Trading Information * Effective 2nd May 2007 Further Information for Exchange Participants


Slide25 : * Effective 2nd May 2007 Enhancements of Information Dissemination Centralised location for all Trading Information


Slide26 : Revised Listing Rules and guidance materials approved. Revised internal procedures adopted. Contingency measures and procedures established. Staff redeployed. Upgraded security, functionality and capacity of related IT systems: Development and testing completed Familiarisation exercises support system readiness Upgraded HKEx websites to improve issuer information display and archive searching. Preparations by HKEx


Slide27 : Upgraded the Investor Service Centre’s alert service which provides personalised notifications of announcements by SMS or email. Modified HKEx’s information products to support electronic disclosure changes. Introduced issuer news alert to AMS/3 and Market Data Feed. Developed training and familiarisation initiatives to educate listed issuers and their agents. Ready to educate investors and general public about Electronic Disclosure changes. Preparations by HKEx


Timetable for Exchange Participants : Timetable for Exchange Participants HKEx will work closely with Exchange Participants to prepare investors and themselves for the forthcoming implementation of the Electronic Disclosure Project


Slide29 : Thank You


Slide30 : The material contained herein is for reference and education purpose only and does not constitute an invitation or offer to acquire, purchase or subscribe for any securities or HKEx’s products. Comments of speakers does not represent HKEx’s standpoint. HKEx takes no responsibility for the contents of this material or comments of speakers and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this material or comments of speakers. Investors should read the listing document carefully, ensure that they understand the nature of and risks associated of their investment, and where necessary consult their financial advisers as to the suitability of the investment in light of their particular financial circumstances and objectives prior to making any investment decision. Disclaimer