H.K. STOCK EXCHANGE BARS NEW 'B' SHARE ISSUES
The Hong Kong Stock Exchange said it
will not accept further proposals by listed firms to issue new
shares with reduced par value but equal voting rights.
    It said in a statement the exchange will review the
previously announced proposals of bonus issues of "B" shares by
Jardine Matheson Holdings Ltd <JARD.HK>, Cheung Kong (Holdings)
Ltd <CKGH.HK> and Hutchison Whampoa Ltd <HWHH.HK>.
    It added the exchange's Listing Committee will meet later
today to consider these proposals.
    The Exchange statement said: "Any such proposals (other than
the three) will not be considered until a general principle has
been established by the Stock Exchange after consultation with
the Securities Commission."
    An official of the Securities Commissioner's office told
Reuters the decision to bar the new share issues was made by
the Exchange, adding the Commissioner is closely watching
developments.
    The Hong Kong market fell sharply yesterday and today as
both Cheung Kong and Hutchison announced a one-for-two bonus
issue of "B" shares.
    The Cheung Kong companies' move followed Friday's
announcement by Jardine Matheson of a four-for-one bonus issue
of similar "B" shares with a reduced par value and equal voting
rights.
    Brokers also noted market speculation that <Evergo
Industrial Enterprise Ltd> will make a similar move after the
firm requested to suspend share trading this morning. Evergo
officials were not immediately available for comment.
    Analysts said controlling shareholders might use the "B"
shares to retain corporate control while selling some of their
existing holdings to finance new investments.
 REUTER
