Tender of 2-Year Exchange Fund Notes to be held on Tuesday, 8 February 2005

The Hong Kong Monetary Authority (HKMA) announces that tender of 2-year Exchange Fund Notes will be held on Tuesday 8 February 2005 for settlement on Monday 14 February 2005.

An amount of HK$1,200 million 2-year Notes will be on offer solely for competitive tender. The Notes will mature on 14　February　2007 and will carry interest at the rate of 1.70% 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) 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
28 January 2005

HONG KONG MONETARY AUTHORITY
EXCHANGE FUND NOTE PROGRAMME
TENDER INFORMATION

Tender information of 2-Year Exchange Fund Notes :-

Issue Number           : 2702

Stock Code             : 4133 (EFN 1.70 0702)

Tender Date            : Tuesday, 8 February 2005
and Time                 9:30 a.m. to 10:30 a.m.

Issue and Settlement   : Monday, 14 February 2005
Date

Amount on Offer        : HK$1,200 million
                         (solely for competitive
                          tender)

Maturity               : Two years

Maturity Date          : 14 February 2007

Interest Rate          : 1.70% p.a.

Interest Payment Dates : 15 Aug 2005
                         14 Feb 2006
                         14 Aug 2006
                         14 Feb 2007

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  : 15 February 2005
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

      0.70         101.99         1.70          100.01
      0.75         101.89         1.75           99.92
      0.80         101.79         1.80           99.82
      0.85         101.69         1.85           99.72
      0.90         101.59         1.90           99.63
      0.95         101.49         1.95           99.53
      1.00         101.39         2.00           99.43
      1.05         101.29         2.05           99.34
      1.10         101.19         2.10           99.24
      1.15         101.09         2.15           99.15
      1.20         100.99         2.20           99.05
      1.25         100.89         2.25           98.95
      1.30         100.80         2.30           98.86
      1.35         100.70         2.35           98.76
      1.40         100.60         2.40           98.67
      1.45         100.50         2.45           98.57
      1.50         100.40         2.50           98.48
      1.55         100.31         2.55           98.38
      1.60         100.21         2.60           98.29
      1.65         100.11         2.65           98.19
      1.70         100.01         2.70           98.10
       
       
* 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
28 January 2005