Hong Kong Regulations

INSURANCE COMPANIES (GENERAL BUSINESS) (VALUATION) REGULATION - SECT 7

Other unlisted shares

(1) The value of any other unlisted share-

   (a)  must be not greater than 75% of-

        (i)    its ready market price, if there is a ready market price; or

        (ii)   if there is no ready market price, that part of the net 
               tangible assets of the company that issues the share as
               disclosed in its most recent audited accounts audited by an
               auditor qualified to be appointed under section 15 of the
               Ordinance (as if that section applied to the company) which
               would be payable in respect of the share in the company held by
               the insurer if the company were in liquidation and that net 
               tangible assets were the amount distributable to the
               shareholders in the winding up; or

   (b)  must not be admitted where there is no ready market price for the
        share and there are no recent audited accounts referred to in
        paragraph (a)(ii) of the company that issued the share.

(2) For the avoidance of doubt, it is declared that subsection

(1)(a)(ii) does not require the assets of a company to be valued on the basis
that the company were in liquidation, and the assets may be valued on the
basis that the company is a going concern, or on any other basis which, in the
opinion of the Insurance Authority, is appropriate. (Enacted 1995)