1. 1 Consultation On Continuing Listing Criteria And Related Issues 15 November 2002

2. 2 To seek market views on: u whether there should be any minimum standards for continuing listing u possible options for minimum standards for continuing listing u alternative treatments of securities delisted from the Main Board u issues commonly associated with low- priced securities Objectives

3. 3 u Deadline for responses (28 February 2003) Consultation Period

4. 4 u What are the right thresholds? u A standalone test or multiple part test? Possible Options for Minimum Continuing Listing Standards

5. 5 Possible alternatives: u Establishing an alternative board u Establishing alternative over-the-counter type of trading arrangement u We also thought about:  Requiring compulsory buy-back by controlling shareholders*  Requiring compulsory winding-up of the company* * May not be, for legal reasons, capable of implementation Alternative treatments of securities delisted from the Main Board

6. 6 Low-priced Securities u Corporate governance related matters u Fair and orderly market related issues

7. 7 u Dilution through placings under general mandate u Dilution through rights issues u Combination of consolidation, sub-division of shares and rights issues Corporate Governance Related Matters

8. 8 u Lack of transparency u Exceptional volatility u Misconception of investors u Market perception Fair and Orderly Market Related Issues

9. 9 Your views are welcome! Our website : www.hkex.com.hk Consultation deadline : 28 February 2003