Hong Kong Regulations

DEPOSIT PROTECTION SCHEME (ASSET MAINTENANCE) RULES - SECT 4

Amount of relevant assets in Hong Kong

(1) For the purposes of these Rules, the amount of a relevant asset maintained
in Hong Kong by a Scheme member at a particular time is calculated by
deducting from the relevant value of the asset at that time an amount equal to
the relevant percentage of that relevant value.

(2) For the purposes of this section—

   (a)  the relevant value of a relevant asset at a particular time is,
        subject to paragraphs (b) and (c), the market value, or the
        book value, of the asset, as set out in column 3 of the Schedule
        opposite the description of the asset, at that time;

   (b)  the relevant value of a relevant asset described in item 3 of the
        Schedule at a particular time is calculated by using the following
        formula— A + B - C where— A represents the aggregate of the value,
        at that time, of each of the claims of the Scheme member on the
        Exchange Fund that are marketable  debt securities; B represents the
        book value, at that time, of the claims of the Scheme member on the
        Exchange Fund that are not marketable debt securities; C represents
        the book value, at that time, of the liabilities

(other than contingent liabilities), whether incurred in or outside Hong Kong,
owed by the Scheme member to the Exchange Fund;

   (c)  the relevant value of a relevant asset described in item 4 of the
        Schedule at a particular time is calculated by using the following
        formula— D + E - F where— D represents the aggregate of the value,
        at that time, of each of the claims of the Scheme member on the
        authorized institution that are marketable debt securities; E
        represents the book value, at that time, of the claims of the Scheme
        member on the authorized institution that are not marketable debt 
        securities; F represents the book value, at that time, of the
        liabilities

(other than contingent liabilities), whether incurred in or outside Hong Kong,
owed by the Scheme member to the authorized institution.

(3) In this section, "relevant percentage" (有關百分率), in relation to
the relevant value of a relevant asset, means the percentage set out in column
4 of the Schedule opposite the description of the asset.

(4) In this section, a reference to the value of a claim of the Scheme member
on the Exchange Fund, or an authorized institution, that is
marketable debt securities is a reference to the market value or book  value
of the claim, whichever is the lower.

"relevant percentage" (有關百分率)