Press Releases

Tender of 7-Year Exchange Fund Notes to be held on Wednesday, 25 August 2004

The Hong Kong Monetary Authority (HKMA) announces that tender of 7-year Exchange Fund Notes will be held on Wednesday 25 August 2004 for settlement on Thursday 26 August 2004.

An amount of HK$600 million 7-year Notes will be on offer solely for competitive tender. The Notes will mature on 26 August 2011 and will carry interest at the rate of 3.93% per annum payable semi-annually in arrears.

Members of the public who wish to tender for the Notes may do so through any of the Market Makers or Recognised Dealers on the published list, which can be obtained from the HKMA at 55/F, Two International Finance Centre, 8 Finance Street, Central, Hong Kong (telephone 2878 1465), or from the HKMA's website at http://www.hkma.gov.hk. They may also submit their tender applications through brokers who are Exchange Participants of the Stock Exchange of Hong Kong via Hong Kong Securities Clearing Company Limited (HKSCC) or, for those who hold Investor Accounts at HKSCC, directly through HKSCC. HKSCC will collect tender applications from its participants and submit them to the HKMA for processing. Each tender must be for an amount of HK$50,000 or integral multiples thereof.

The tender results will be published on the HKMA's website, the Reuters screen (HKMAOOE), Bloomberg, the Telerate screen (9913), the Bridge News screen and CCASS terminal for CCASS Broker/Custodian/Participants. CCASS Investor Participants can also enquire about the tender results through the CCASS Phone System.

Hong Kong Monetary Authority
16 August 2004

HONG KONG MONETARY AUTHORITY
EXCHANGE FUND NOTE PROGRAMME
TENDER INFORMATION

________________________________________

Tender information of 7-Year Exchange Fund Notes :-

Issue Number           : 7108

Stock code             : 4127 (EFN 3.93 1108)

Tender Date            : Wednesday, 25 August 2004
and Time                 9:30 a.m. to 10:30 a.m.

Issue and Settlement   : Thursday, 26 August 2004
Date

Amount on Offer        : HK$600 million
                        (solely for competitive
                         tender)

Maturity               : Seven years

Maturity Date          : 26 August 2011

Interest Rate          : 3.93% p.a.

Interest Payment Dates : 28 Feb 2005
                         26 Aug 2005
                         27 Feb 2006
                         28 Aug 2006
                         26 Feb 2007
                         27 Aug 2007
                         26 Feb 2008
                         26 Aug 2008
                         26 Feb 2009
                         26 Aug 2009
                         26 Feb 2010
                         26 Aug 2010
                         28 Feb 2011
                         26 Aug 2011

Tender Amount          : Each tender must be for
                         an amount of HK$50,000 or
                         integral multiples thereof.
                         Members of the public who
                         wish to tender for the Notes
                         may approach Market Makers or
                         Recognised Dealers on the
                         published list, Hong Kong
                         Securities Clearing Company
                         Limited, or brokers who are
                         Exchange Participants of the
                         Stock Exchange of Hong Kong

Other details          : Please see Information
                         Memorandum published or
                         approach Market Makers,
                         Recognised Dealers, Hong Kong
                         Securities Clearing Company
                         Limited, or brokers who are
                         Exchange Participants of the
                         Stock Exchange of Hong Kong

Expected commencement  : 27 August 2004
date of dealing on
the Stock Exchange
of Hong Kong
                  
                  
Price/Yield Table of the new EFN at tender for reference* only :-

Yield-to-Maturity  Price    Yield-to-Maturity    Price

      2.93         106.43          3.93         100.23
      2.98         106.10          3.98          99.93
      3.03         105.78          4.03          99.64
      3.08         105.47          4.08          99.34
      3.13         105.15          4.13          99.05
      3.18         104.83          4.18          98.75
      3.23         104.52          4.23          98.46
      3.28         104.20          4.28          98.17
      3.33         103.89          4.33          97.88
      3.38         103.58          4.38          97.59
      3.43         103.27          4.43          97.30
      3.48         102.96          4.48          97.01
      3.53         102.65          4.53          96.73
      3.58         102.35          4.58          96.44
      3.63         102.04          4.63          96.16
      3.68         101.74          4.68          95.88
      3.73         101.43          4.73          95.59
      3.78         101.13          4.78          95.31
      3.83         100.83          4.83          95.03
      3.88         100.53          4.88          94.75
      3.93         100.23          4.93          94.48


* Disclaimer

  The information provided here is for reference only.
  Although extreme care has been taken to ensure that
  the information provided is accurate and up-to-date,
  the HKMA does not warrant that all, or any part of,
  the information provided is accurate in all
  respects.  You are encouraged to conduct your own
  enquiries to verify any particular piece of
  information provided on it.  The HKMA shall not be
  liable for any loss or damage suffered as a result
  of any use or reliance on any of the information
  provided here.

Hong Kong Monetary Authority
16 August 2004