SUMMARY OF RESULTS
The Board of Directors of CITIC Bank International Limited (the "Bank") is pleased to announce the unaudited consolidated results of the Bank and its subsidiaries (the "Group") for the six months ended 30 June 2000 together with the comparative figures for the corresponding period in previous year as follows:-
The Group
------------------------
Six months ended 30 June
2000 1999 Variance
----------- ----------- --------
HK$'000 HK$'000 %
Interest Income 1,768,311 1,489,699 18.7
Interest Expense (1,226,303) (1,088,456) 12.7
----------- -----------
Net Interest Income 542,008 401,243 35.1
----------- -----------
Fees And Commission Income 141,314 84,397 67.4
Fees And Commission Expense (8,440) (7,637) 10.5
Other Revenue 8,216 4,306 90.8
Other Operating Income 60,131 42,270 42.3
----------- -----------
Non-Interest Income 201,221 123,336 63.2
----------- -----------
Total Operating Income 743,229 524,579 41.7
Operating Expenses (275,216) (223,035) 23.4
----------- -----------
Operating Profit Before Provisions 468,013 301,544 55.2
Charge For Bad And Doubtful Debts (197,612) (225,095) (12.2)
----------- -----------
Operating Profit 270,401 76,449 253.7
Net Profit On Disposal Of
Tangible Fixed Assets 1,416 761
Provision On Held-To-Maturity Securities
And Investment Securities 1,046 (24,859)
----------- -----------
Profit From Ordinary Activities
Before Taxation 272,863 52,351 421.2
Tax On Profit From
Ordinary Activities (Note 1)
- Hong Kong (10,320) (444)
- Overseas 389 (310)
----------- -----------
Profit After Taxation Before
Minority Interest 262,932 51,597 409.6
Minority Interest (31,750) 0
----------- -----------
Profit Attributable To Shareholders 231,182 51,597 348.1
Appropriations:
Interim Dividends (51,889) 0
----------- -----------
Retained Profits For The Period 179,293 51,597 247.5
=========== ===========
Earnings Per Share
Basic (Note 2) 8.91 1.99?
Diluted (Note 3) 8.91 1.99?
Interim Dividends Per Share 2.00 0.00?
Notes:
(1) The provision for Hong Kong profits tax is based on an estimate of the assessable profits for the six months ended 30 June 2000 at 16% (1999: 16%). Taxation for overseas branches and subsidiaries is charged at the appropriate current rates of taxation ruling in the countries in which they operate.
No provision for deferred tax is made as there are no material timing differences which would result in a liability payable or an asset receivable in the foreseeable future.
(2) The calculation of basic earnings per share for the six months ended 30 June 2000 is based on profit attributable to shareholders of HK$231,182,000 (1999: HK$51,597,000) and on the weighted average of 2,594,461,444 (1999: 2,592,547,794) ordinary shares in issue during the period.
(3) The calculation of diluted earnings per share for the six months ended 30 June 2000 is based on profit attributable to shareholders of HK$231,182,000 (1999: HK$51,597,000) and on the weighted average of 2,594,898,076 (1999: 2,593,127,623) after adjusting for the effects of all dilutive potential ordinary shares.
CONSOLIDATED STATEMENT OF RECOGNISED GAINS AND LOSSES
The Group
------------------
Six months
ended 30 June
2000 1999
-------- --------
HK$'000 HK$'000
Exchange differences on translation of the accounts
of foreign entities 115 85
------- -------
Net gains not recognised in the profit and loss account 115 85
Net profit for the period 231,182 51,597
------- -------
Total recognised gains and losses 231,297 51,682
======= =======
CONSOLIDATED BALANCE SHEET
The Group
-----------------------
As at As at
30 June 31 December
2000 1999
---------- -----------
Assets HK$'000 HK$'000
Cash and short-term funds 6,028,967 11,872,776
Placements with banks and
other financial institutions
maturing between one and twelve months 1,086,254 2,435,135
Trade bills and certificates of deposit 4,062,978 1,766,886
Other investments in securities 100,435 30,583
Advances to customers and other accounts
less provisions 31,535,830 29,046,864
Held-to-maturity securities and
investment securities 5,782,742 2,583,870
Investments in associates 120,557 120,537
Tangible fixed assets 899,981 917,908
Intangible assets 8,530 8,530
---------- -----------
Total assets 49,626,274 48,783,089
========== ===========
Liabilities
Deposits and balances of banks and
other financial institutions 675,347 344,825
Current, fixed, savings and
other deposits of customers 40,590,434 39,728,165
Certificates of deposit issued 865,417 1,454,121
Issued debt securities 404,889 522,320
Other accounts and provisions 1,333,426 1,213,995
Proposed dividend 51,889 25,945
---------- -----------
Total liabilities 43,921,402 43,289,371
---------- -----------
Capital resources
Share capital 2,594,461 2,594,461
Reserves 2,946,832 2,767,428
---------- -----------
Shareholders' funds 5,541,293 5,361,889
Minority interests 163,579 131,829
---------- -----------
5,704,872 5,493,718
---------- -----------
Total liabilities and capital resources 49,626,274 48,783,089
========== ===========
CONSOLIDATED CASH FLOW STATEMENT
The Group
------------------------
Six months ended 30 June
2000 1999
----------- -----------
HK$'000 HK$'000
Net cash (outflow)/inflow
from operating activities (4,095,947) 374,120
Net cash outflow from returns on investments
and servicing of finance (22,607) (24,890)
Total tax (paid)/refund (859) 231
Net cash outflow from investing activities (3,197,580) (681,727)
----------- -----------
Net cash outflow before financing (7,316,993) (332,266)
Net cash (outflow)/inflow from financing (4) 388
----------- -----------
Decrease in cash and cash equivalents (7,316,997) (331,878)
Cash and cash equivalents at 1 January 13,384,218 12,744,284
----------- -----------
Cash and cash equivalents at 30 June 6,067,221 12,412,406
=========== ===========
UNAUDITED SUPPLEMENTARY FINANCIAL INFORMATION
(1) Summary of financial position
The Group
-----------------------------------------------------
As at As at As at
30 Jun 2000 30 Jun 1999 Variance 31 Dec 1999 Variance
HK$'000 HK$'000 % HK$'000 %
----------- ----------- -------- ----------- --------
Loans and Advances 30,978,169 27,646,431 12.05 28,320,335 9.38
Loans Loss Provision 1,141,276 1,248,414 (8.58) 1,033,786 10.40
Total Assets 49,626,274 45,577,148 8.88 48,783,089 1.73
Total Interest Earning Assets 47,225,096 43,977,914 7.38 46,448,474 1.67
Total Deposits 41,860,740 38,569,065 8.53 41,704,606 0.37
Shareholders' Funds 5,541,293 5,328,492 3.99 5,361,889 3.35
Financial ratios
Capital Adequacy* 18.09% 20.14% 19.16%
Average Liquidity* 37.60% 44.57% 39.45%
Loans to Deposits 74.00% 71.68% 67.91%
Loans to Total Assets 62.42% 60.66% 58.05%
General Provision Coverage 1.08% 1.02% 1.12%
Property Lending 46.78% 44.90% 45.02%
Cost to Income 37.03% 42.52% 41.80%
Return on Assets 1.07% 0.23% 0.23%
Return on Shareholders' Funds 8.48% 1.95% 2.04%
* The capital adequacy ratio and the average liquidity ratio are computed on the consolidated basis covering the Bank and certain of its financial subsidiaries as required by the Hong Kong Monetary Authority (the "HKMA") for its regulatory purposes, and are in accordance with the Third Schedule and the Fourth Schedule to the Banking Ordinance respectively.
(2) Advances and other accounts
The Group
---------------------------------
As at As at
30 June 31 Dec
2000 1999 Variance
HK$'000 HK$'000 %
---------- ---------- --------
Advances to customers 30,209,876 27,603,561 9.44
Advances to banks and
other financial institutions 611,148 639,817 (4.48)
Accrued interest and other accounts 1,856,082 1,836,309 1.08
Provisions for bad and doubtful debts
- Specific (814,886) (723,969) 12.56
- General (326,390) (308,854) 5.68
---------- ----------
31,535,830 29,046,864 8.57
========== ==========
(3) Advances to customers - By industry sectors
The Group
---------------------------------------------
As at As at
30 June 2000 31 December 1999 Variance
HK$'000 % HK$'000 % %
---------- ------ ---------- ------ --------
Loans for use in Hong Kong
Industrial, commercial and financial
- property development 306,988 1.02 1,393,313 5.05 (77.97)
- property investment 3,167,595 10.48 1,801,952 6.53 75.79
- financial concerns 2,783,710 9.21 1,177,542 4.26 136.40
- stockbrokers 780 0.00 192,440 0.70 (99.59)
- wholesale and retail trade 1,692,525 5.60 1,137,820 4.12 48.75
- manufacturing 1,781,062 5.90 885,096 3.20 101.23
- transport and transport
equipment 1,189,238 3.94 1,271,654 4.61 (6.48)
- others 3,695,619 12.23 6,045,662 21.90 (38.87)
Individuals
- loans for the purchase of flats in the
Home Ownership Scheme and Private
Sector Participation Scheme 27,720 0.09 24,108 0.09 14.98
- loans for the purchase of other
residential properties 10,128,328 33.53 8,798,674 31.88 15.11
- others 742,677 2.46 675,206 2.45 9.99
Trade finance 2,270,626 7.52 1,852,329 6.71 22.58
Loans for use outside Hong Kong 2,423,008 8.02 2,347,765 8.50 3.20
---------- ------ ---------- ------
TOTAL 30,209,876 100.00 27,603,561 100.00 9.44
========== ====== ========== ======
(4) Loans on which interest is placed in suspense
The Group
------------------------------------------------------------
Specific
Pledge provision
amount for in respect of
Total amount of loans on loans on Amount of
loans on which which interest which interest interest
interest is placed is placed in is placed in placed in
in suspense suspense suspense suspense
HK$'000 %* HK$'000 HK$'000 HK$'000
----------- ----- -------------- -------------- ---------
As at 30
June 2000 1,570,383 5.07 688,696 584,673 223,454
As at 31
December 1999 1,555,450 5.49 763,536 514,767 152,711
* Based on total loans and advances
There were no advances to banks and other financial institutions on which interest is being placed in suspense or on which interest accrual has ceased as at 30 June 2000 and 31 December 1999, nor were there any specific provisions made for them on these two days.
(5) Overdue loans and advances
The Group
-----------------------------------------------------------
As at 30 June 2000
-----------------------------------------------------------
Amount of Amount of
Overdue collateral specific
gross advances held in provisions
to customers respect of Amount Amount made against
(net of overdue of of overdue
suspended advances to secured unsecured advances to
interest) customers balance balance customers
HK$'000 %* HK$'000 HK$'000 HK$'000 HK$'000
--------- ---- ----------- ------- --------- ------------
Three to six months
overdue 70,586 0.23 177,084 44,625 25,961 7,739
Six months to one year
overdue 454,812 1.47 95,629 53,624 401,188 113,578
Over one year overdue 1,474,360 4.76 881,207 680,634 793,726 577,476
--------- ---- ----------- ------- --------- ------------
TOTAL 1,999,758 6.46 1,153,920 778,883 1,220,875 698,793
========= ==== =========== ======= ========= ============
The Group
-----------------------------------------------------------
As at 31 December 1999
-----------------------------------------------------------
Amount of Amount of
Overdue collateral specific
gross advances held in provisions
to customers respect of Amount Amount made against
(net of overdue of of overdue
suspended advances to secured unsecured advances to
interest) customers balance balance customers
HK$'000 %* HK$'000 HK$'000 HK$'000 HK$'000
--------- ---- ----------- ------- --------- ------------
Three to six months
overdue 409,613 1.45 205,124 75,939 333,674 51,662
Six months to one year
overdue 447,459 1.58 168,563 99,293 348,166 53,755
Over one year overdue 1,104,267 3.90 642,972 489,537 614,730 411,175
--------- ---- ----------- ------- --------- ------------
TOTAL 1,961,339 6.93 1,016,659 664,769 1,296,570 516,592
========= ==== =========== ======= ========= ============
* Based on total loans and advances
There were no advances to banks and other financial institutions which were overdue for over 3 months as at 30 June 2000 and 31 December 1999.
Reconciliation
The Group
----------------------
As at As at
30 June 31 December
2000 1999
--------- -----------
HK$'000 HK$'000
Advances to customers overdue for
more than 3 months 1,999,758 1,961,339
Less: Amount overdue for more than 3 months and
on which interest is still being accrued (625,231) (892,161)
Add: Amount overdue for 3 months or less and
on which interest is being placed in suspense
or on which interest accrual has ceased 62,470 37,839
Add: Rescheduled advances on which interest is
being placed in suspense or on which
interest accrual has ceased 129,123 413,852
Add: Amount not overdue and on which interest is
being placed in suspense or on which
interest accrual has ceased 4,263 34,581
--------- -----------
Advances to customers on which interest is being
placed in suspense or on which interest accrual
has ceased 1,570,383 1,555,450
========= ===========
(6) Rescheduled loans
The Group
---------------------------------------------
As at 30 June 2000 As at 31 December 1999
HK$'000 %* HK$'000 %*
-------- ---- ---------- ----
Rescheduled loans 370,519 1.20 738,981 2.61
* Based on total loans and advances
There were no advances to banks and other financial institutions which were rescheduled as at 30 June 2000 and 31 December 1999.
(7) Off-balance sheet exposures
(a) Contingent liabilities and commitments
The following is a summary of the contractual amounts of each significant class of contingent liabilities and commitments:
The Group
-----------------------
30 June 31 December
2000 1999
---------- -----------
HK$'000 HK$'000
Direct credit substitutes 303,125 435,501
Transaction-related contingencies 99,069 0
Trade-related contingencies 841,782 613,922
Other commitments:
with an original maturity of under 1 year or
which are unconditionally cancellable 5,853,833 7,668,932
with an original maturity of 1 year and over 1,036,090 326,672
---------- -----------
8,133,899 9,045,027
========== ===========
The above amounts include the guarantees for credit facilities granted by third parties to certain subsidiaries amounting to HK$40 million as at 30 June 2000 (31 December 1999: HK$43 million).
(b) Derivatives
Derivatives refer to financial contracts whose value depends on the value of one or more underlying assets or indices.
The following is a summary of the notional amounts of each significant type of derivative entered into by:
The Group
----------------------------------------------------------------
30 June 2000 31 December 1999
------------------------------- -------------------------------
Trading Hedging Total Trading Hedging Total
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
------- ---------- ---------- ------- ---------- ----------
Exchange rate
contracts
Forwards 544,175 480,733 1,024,908 428,400 489,698 918,098
Swaps 0 25,261,369 25,261,369 0 17,484,727 17,484,727
Interest rate
contracts
Swaps 0 397,813 397,813 0 427,679 427,679
Equity contracts
Options 0 8,681 8,681 0 0 0
------- ---------- ---------- ------- ---------- ----------
544,175 26,148,596 26,692,771 428,400 18,402,104 18,830,504
======= ========== ========== ======= ========== ==========
(c) The replacement costs and credit risk weighted amounts of the above off-balance sheet exposures are as follows.
These amounts do not take into account the effects of bilateral netting arrangements.
The Group
--------------------------------------------------
30 June 2000 31 December 1999
------------------------ ------------------------
Credit risk Credit risk
Replacement weighted Replacement weighted
cost amount cost amount
HK$'000 HK$'000 HK$'000 HK$'000
----------- ----------- ----------- -----------
Contingent liabilities
and commitments N/A 874,337 N/A 627,642
Exchange rate contracts 35,085 72,008 28,304 46,658
Interest rate contracts 4,294 1,506 3,844 1,454
Equity contracts 4,505 1,005 0 0
----------- ----------- ----------- -----------
43,884 948,856 32,148 675,754
=========== =========== =========== ===========
(8) Segmental information
(a) By geographical area
The Group
-------------------------------------------------
For the six
months ended As at As at
30 June 30 June 30 June 31 December
2000 1999 2000 1999
-------- -------- ------------ ------------
* Profit * Profit Total assets Total assets
HK$'000 HK$'000 HK$'000 HK$'000
Hong Kong 259,312 43,621 53,077,017 52,987,066
United States of America 13,551 8,730 3,214,699 3,443,109
Less: Intra-group items 0 0 (6,665,442) (7,647,086)
-------- -------- ------------ ------------
272,863 52,351 49,626,274 48,783,089
======== ======== ============ ============
(b) By class of business
The Group
------------------------------------------------
For the six
months end As at As at
30 June 30 June 30 June 31 December
2000 1999 2000 1999
-------- -------- ------------ ------------
* Profit * Profit Total assets Total assets
HK$'000 HK$'000 HK$'000 HK$'000
Commercial Banking 186,726 (30,878) 51,739,318 51,118,630
Investment Banking 28,516 66,708 4,213,944 4,962,014
Other Business 2,273 2,992 73,764 60,560
Securities Business 55,348 13,529 264,690 288,971
Less: Intra-group items 0 0 (6,665,442) (7,647,086)
-------- -------- ------------ ------------
272,863 52,351 49,626,274 48,783,089
======== ======== ============ ============
* Profit from ordinary activities before taxation
(9) Capital base after deductions
The Group
-------------------------
As at As at
30 June 31 December
2000 1999
--------- -----------
HK$'000 HK$'000
Core capital
Paid up ordinary share capital 2,594,461 2,594,461
Reserves 2,759,935 2,630,655
Minority interests 157,681 127,342
--------- -----------
Total core capital 5,512,077 5,352,458
--------- -----------
Eligible supplementary capital
Reserves on revaluation of land and
interests in land 11,945 11,945
General provisions for doubtful debts 326,390 309,817
--------- -----------
Total eligible supplementary capital 338,335 321,762
========= ===========
Total capital base before deductions 5,850,412 5,674,220
Deductions from total capital base (285,931) (270,793)
--------- -----------
Total capital base after deductions 5,564,481 5,403,427
========= ===========
(10) Comparative figures
Comparative figures have been reclassified to conform with the current year's presentation.
STATEMENT OF COMPLIANCE
This interim financial report is prepared on a basis consistent with the accounting policies adopted in the 1999 annual financial statements. This interim report has also been prepared in accordance with Statement of Standard Accounting Practice 25 "Interim financial reporting" and the recommendations made by the Hong Kong Monetary Authority on 30 June 2000.
STATUS OF OPERATION
The status of the Bank's operations in the first half of 2000 is as follows:
- Continuous growth in scale. Since 1998, the Bank's businesses have undergone rapid expansion. In 1998, total loans increased by 29.6%, or HK$5.92 billion in value. Total loans grew in 1999 by 9.3%, an increase of HK$2.42 billion. Premised on this base, total loans further increased by 9.4% or HK$2.66 billion in the first half of 2000, of which mortgage loans and corporate loans accounted for 50.6% and 31.7% respectively. At 30 June 2000, total loans of the Bank stood at HK$31 billion.
In 1998, the Bank's total deposits rose by 35.4%, or HK$9.75 billion. In 1999, total deposits increased by HK$4.46 billion or 12%. During the first half of 2000, the Bank's conscious efforts in realigning the deposit portfolio and in lowering funding costs resulted in a slight increase in deposits of 0.4%, or HK$156 million in value. Total deposits amounted to HK$41.86 billion at 30 June 2000.
Total assets grew 27.4%, or HK$9.48 billion, in 1998. An increment of 10.6%, or HK$4.67 billion, was registered in 1999. At 30 June 2000, total assets reached HK$49.63 billion, an increase of 1.7% over 1999 year-end figure. After two and a half years of continuous growth, the Bank's total assets has risen from approximately HK$35 billion in early 1998 to close to the HK$50 billion mark at mid-year 2000.
- Improved asset quality. While the Bank pursues active expansion in its asset scale and customer base, focus has also been placed on improving asset quality and on risk diversifying of the loan portfolio. As a result of stringent credit approval process, only 0.25% of the HK$11 billion new corporate loans booked since 1998 became problem loans. The Bank's asset quality has continued to show improvement, evidenced by the mid-year readings of key asset quality indicators: exposure to top 20 customers as a percentage of total loans fell from 30.2% at 1999 year end to 24.1%; and mainland exposure reduced from 29.2% to 26.2% during the same period.
- Increase in operating income. In the six months to 30 June 2000, the Bank recorded an increase of 35%, or HK$141 million in net interest income compared with the corresponding period in 1999. The surge was largely due to three factors. Firstly, the enlargement of the Bank's loan book which contributed to HK$25 million of the increase in interest income. Secondly, interest in suspense has decreased by HK$15 million. The remaining HK$101 million increase was attributable to widening net interest spreads. Non-interest income was up by HK$78 million in the first half of 2000, or 63.2% over the corresponding period in 1999. This was mainly due to the Bank's efforts in expanding non-interest revenue sources and the fee income derived from new loans. In addition, the Bank realized a profit of HK$25 million from the sale of Hong Kong Stock Exchange shares.
- Stringent cost control. The Bank has exercised stringent control over its operating expenses while actively developing businesses. As a result, the cost to income ratio fell from 42.5% at mid-year 1999 to 37%.
- Substantial growth in profits. The Bank's profit level has started to make a breakthrough since the fourth quarter of 1999, with the average monthly operating profit before provisions exceeding HK$60 million. In 2000, the Bank continued to register growth in profits, with operating profit before provisions averaging HK$77 million per month. For the first half of 2000, net interest income was HK$542 million, an increase of 35% over the corresponding period of 1999 while non-interest income increased by 63% to HK$201 million, leading to a surge in operating income of 42% to HK$743 million. Operating expenses increased by 23% to HK$275 million while operating profit before provisions rose to HK$468 million, an increase of 55%. Loan loss provisions were reduced by 12% to HK$197 million, resulting in an increase of 254% in operating profit to HK$273 million. The growth in profit together with a reduction in loan loss provisions have contributed to a first-half net profit of HK$231 million, a 348% increase over the net profit of HK$51 million for the same period in 1999.
MAJOR INITIATIVES FOR THE SECOND HALF OF 2000
The Bank's major initiatives for the second half of 2000 are as follows:
- Strengthening of internal operating management. To cope with the increase in scale of operations, continuous business expansion and the launch of new products and services, the Bank will continue to put in place new policies and procedures with a view to enhancing the level of internal control and to supporting long-term development needs.
- Development of high yield loan products. Since 1999, the Bank has started to launch a new range of loan products to enhance yield and return. In the first half of 2000, the Bank engaged a specialist team to develop the Bank's hire purchase and leasing business and formed 'Ka Wah Credit Limited' to reinforce the marketing of personal loans. Governed by stringent risk control, Cargary Securities Limited launched margin trading services in the first half of 2000. In the second half of the year, the Bank will actively promote these products and services, raising the contribution of these new businesses to the Bank's overall revenue.
- Building an advanced operating system. The Bank has reached a new stage of development. To cope with continuous business development and strengthen internal management, it is imperative for the Bank to make investment in information technology and computer systems. In view of this, the Bank has decided to replace its existing core banking system and invest over HK$100 million to build an advanced and integrated service delivery platform which is designed to enhance operating efficiencies, improve processing and operations, and strengthen risk management. The new systems will also provide the essential infrastructure to enable the launch of new products. The majority of the core system will be operating in the first quarter of 2001, with the conversion to be fully completed by the second quarter of 2001.
- Enhancement of i-banking services. The Bank will make continuous enhancement to its product range and service delivery within i-banking. To provide a comprehensive integrated e-commerce solution to its corporate customers, the Bank currently plans to launch its web-based trade finance products and B2B services in the second half of 2000. The Bank will also strengthen its co-operation with companies within CITIC's financial services group with a view to expanding its customer base and service standards.
- Further improvement of asset quality. The Bank will continue to improve on the overall asset quality and deal with the problem loans issue. In mid-June 2000, the Bank set up an asset management company for a more effective handling of problem loans recovery.
OUTLOOK
The gradual improvement of Hong Kong's economy and China's accession into the WTO will open up new business opportunities for the banking industry. The Bank has basically dealt with the inherited problems and established a solid foundation for future growth. The Bank is therefore well positioned to take advantage of these new opportunities and it is expected that both the business and profit will maintain a healthy and stable growth.
INTERIM DIVIDEND
The Directors are pleased to declare an interim dividend of HK$0.02 (1999: Nil) per share. The interim dividend will be paid on Friday, 15 September 2000 to all shareholders whose names are on the Register of Members of the Bank on Friday, 8 September 2000.
CLOSURE OF REGISTER OF MEMBERS
The Register of Members of the Bank will be closed from Monday, 4 September 2000 to Friday, 8 September 2000, both days inclusive, during which period no transfer of shares will be registered. In order to qualify for the interim dividend, all transfers of shares accompanied by the relevant share certificates and transfer forms must be lodged for registration with the Bank's Share Registrars, Central Registration Hong Kong Limited, at Shops 1712 - 1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Hong Kong not later than 4:00p.m. on Friday, 1 September 2000.
PURCHASE, SALE OR REDEMPTION OF THE BANK'S LISTED SECURITIES
The Bank has not redeemed any of its listed securities during this interim. Neither the Bank nor any of its subsidiaries has purchased or sold any of the Bank's listed securities during this interim.
By Order of the Board
Cai Zhongzhi
President and Chief Executive Officer
Hong Kong, 3 August 2000
Please also refer to the published version of this announcement in Hong Kong iMail and Hong Kong Economic Times.