Update on Retail Exchange Fund Notes Programme

The Hong Kong Monetary Authority (HKMA) announced today (Wednesday) that the retail non-competitive subscription of the 2-year Exchange Fund Notes (EFNs) under the refined Retail Exchange Fund Notes Programme had exceeded the amount of HK$300 million on offer. As at 2:00 p.m. today, the seven Distributors reported that a total of HK$361 million of subscription money from retail investors was received.

"We are pleased with the positive market response, which confirms that the refinements made to the Retail Exchange Fund Notes Programme are effective. The Programme is an ongoing one, and we will in due course announce the issuance details of the next batch of retail EFNs after consultation with our Distributors," said Mr Peter Pang, Deputy Chief Executive of the HKMA.

The tender of the 2-year EFNs will be held on 13 May 2005 (Friday) and the successful bidders will be awarded the EFNs on 17 May 2005 (Tuesday). Details of the tender results will be announced not later than 3:00 p.m. on the tender day.

Further information on the Retail Exchange Fund Notes Programme and the EFNs can be found at "Exchange Fund Notes: Information for investors" on the HKMA website (http://www.hkma.gov.hk).

For further enquiries, please contact:

Jasmin Fung, Manager (Press), at 2878 8246 or
Hing-Fung Wong, Resource Co-ordinator, at 2878 1802

Hong Kong Monetary Authority
11 May 2005