Hong Kong Regulations

SECURITIES AND FUTURES (DISCLOSURE OF INTERESTS-EXCLUSIONS) REGULATION - SECT 3

Prescribed interests and short positions to be disregarded for the purpose of notification

(1) The following interests, and short positions, in shares comprised in the
relevant share capital of a listed corporation are prescribed for the purposes
of section 323 of the Ordinance-

   (a)  an interest or short position of a person in his capacity as a
        beneficiary under a trust constituted exclusively for the purposes of
        a recognized occupational retirement scheme;

   (b)  an interest or short position of the Official Trustee held in his
        official capacity;

   (c)  an interest acquired by the offeror as a result of the acceptance of a
        conditional offer by the shareholders of the listed  corporation,
        being an interest subsisting while the condition of the offer remains
        unfulfilled; and

   (d)  subject to subsection (2), an interest or short position which an
        intermediary licensed or registered for Type 1 or Type 2 regulated
        activity has by virtue of its-

        (i)    entering into an exchange contract in the ordinary course of
               its business as such an intermediary pursuant to the
               instructions of its client who is a person other than a related
               corporation of the intermediary; and

        (ii)   designating the exchange contract as being entered into for the
               account of the client.

(2) For the purposes of subsection (1)(d), an interest or short  position
shall not be regarded as being prescribed for the purposes of section 323 of
the Ordinance unless the intermediary concerned also enters into a
back-to-back contract with its client on the same day as entering into an
exchange contract pursuant to the instructions of the client.