Hong Kong Regulations

BANKING (CAPITAL) RULES - SECT 80

Collateral which may be recognized for purposes of section 77(i)(ii)

For the purposes of section 77(i)(ii), only collateral of the following
description may be recognized in relation to an authorized institution which
uses the comprehensive approach in its treatment of recognized  collateral—

   (a)  recognized collateral falling within section 79(a), (b), (c),

   (d)  , (e), (f), (g), (h), (i), (j), (k), (l), (m), (n) or (o);

   (b)  equities (including convertible bonds) which are not included in a
        main index but are listed on a recognized exchange;

   (c)  units or shares in collective investment schemes which may invest in
        equities referred to in paragraph (b); or

   (d)  securities received by the institution under a transaction—

        (i)    which falls within paragraph (c) or (d) of the definition of

"repo-style transaction" in section 2(1); and

        (ii)   which is booked in the institution's trading book.