From Paper to Paperless Straight-through Electronic Disclosure and

1. From Paper to Paperless Straight-through Electronic Disclosure and Abolition of Paid Announcement Requirement (The Electronic Disclosure Project) Press Conference 23 March 2007

2. Electronic Disclosure is the right direction • Hong Kong’s investor profile has changed whilst our current inefficient and potentially flawed system has not. • 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 • 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 • Allow the use of electronic templates to collect enhanced issuer disclosures

3. Brief History of the Electronic Disclosure Project

4. 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

5. Preparations by HKEx • 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

6. Preparations by HKEx • 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

7. Electronic Disclosure –Impact on Investors and Issuers • 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 • Reduction in continuing costs of listing • More secure and efficient submission channel with extended service hours • Flexibility to use agents for electronic submission • Discipline to adjust to new submission requirements (i.e. mandatory e-submission, Chinese/English simultaneous submission, etc) • Establish own website within the next 15 months Investors Issuers

8. Preparing investors • 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 published today 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

9. Preparing brokers and information vendors • 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 • Enhancements to Issuer Information feed System • Briefings for Information Vendors on changes in data content • Briefings and circulars to Exchange Participants on implications of Electronic Disclosure

10. Preparing issuers • Registration of issuers and agents almost completed • Issuer and agent briefing sessions on using ESS completed • ESS e-Learning CDs distributed to all listed issuers and others • ESS hotline set up in January 2007 to provide technical support • Familiarisation sessions for ESS users in progress • Readiness confirmations will provide a clear signal issuers are ready

11. Communication and Education HKEx will work closely with the industry to help prepare the market for Electronic Disclosure: • Advertising and awareness programmes • Media workshop on Electronic Disclosure • Designated web page on Electronic Disclosure • Collaboration with EPs to promote Electronic Disclosure services to their clients • Collaboration with industry bodies in primary market to prepare listed issuers for Electronic Disclosure implementation

12. Thank you!