Hong Kong Regulations

SECURITIES AND FUTURES (DISCLOSURE OF INTERESTS-SECURITIES BORROWING AND LENDING) RULES - SECT 4

Notification by an approved lending agent

Where a person authorizes an approved lending agent to lend shares, only under
a relevant agreement, as agent and-

   (a)  the approved lending agent lends qualified shares to a borrower under
        the terms of a relevant agreement; or

   (b)  qualified shares are returned to the approved lending agent by the
        borrower, the person shall not be required to secure under section 321
        of the Ordinance that the approved lending agent notifies him of the
        lending or return of the qualified shares.