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. 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. 3 Brief History of the Electronic Disclosure Project April 2000Publication of Consultation Paper on “Disclosure of All Listed Issuers’ Announcements through the Exchange’s Website in Place of Publication as Paid Announcements in Newspapers” April 2001Listing Rules were amended to require submission of electronic copies of all listed issuers’ announcements to HKEx for dissemination on the HKEx website, in addition to publication as paid announcements in newspapers. February 2002Requirement to submit electronic copies of other Listing Rules-related corporate communications (e.g. circulars and annual reports) to HKEx for publication on the HKEx website was implemented. November 2005 HKEx issued an exposure paper on the “Abolition of Requirement for Main Board Issuers to Publish Paid Announcements in Newspaper and Related Matters” and consulted the market on linked issues July 2006HKEx published the exposure conclusion setting out the finalised regime for the abolition of paid advertisement requirements and related matters January 2007HK Government’s Economic Summit Report expressed support for mandatory electronic submission and dissemination of issuer documents March 2007Newspapers quoted Premier Wen Jiabao as saying that one of the four measures to be taken to build a mature capital market was a move to real-time disclosure

4. 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. 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. 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. 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 Issuers Investors

8. 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. 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. 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. 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. 12 Thank you!