Hong Kong Regulations

SECURITIES AND FUTURES (PRICE STABILIZING) RULES - SECT 7

Ancillary stabilizing action

(1) The stabilizing manager may, in connection with any primary 
stabilizing action taken in respect of any relevant securities under
section 6, take all or any of the following actions-

   (a)  for the purpose of preventing or minimizing any reduction in the
        market price of the relevant securities-

        (i)    allocate a greater number of the relevant securities than the
               number that is initially offered; or

        (ii)   sell or agree to sell the relevant securities so as to
               establish a short position in them;

   (b)  pursuant to an option or other right to purchase or subscribe for the
        relevant securities as referred to in section 10(3), purchase or
        subscribe for or agree to purchase or subscribe for the relevant 
        securities in order to close out any position established under
        paragraph

   (a)  ;

   (c)  sell or agree to sell any relevant securities acquired by the
        stabilizing manager in the course of the primary stabilizing action in
        order to liquidate any position that has been established by such
        action;

   (d)  offer or attempt to do anything as described in paragraph

   (a)  (ii), (b) or (c).

(2) Ancillary stabilizing action under subsection (1)(b) may be taken without
regard to the limits on pricing in section 11 and Schedule 2.