H.K. OFFICIAL, STOCK EXCHANGE BAR JARDINE ISSUE
Securities Commissioner Ray Astin and
Chairman of the Stock Exchange of Hong Kong Ronald Li said in a
joint statement they have rejected a plan by Jardine Matheson
Holdings Ltd <JARD.HK> to list its new "B" shares and that other
such plans will not be approved.
    They said the move resulted from recognition of the
potential disadvantages of listing "B" shares and from strong
opposition by stock brokers and members of the exchange.
    They also noted both Cheung Kong (Holdings) Ltd <CKGH.HK>
and associate Hutchison Whampoa Ltd <HWHH.HK> have agreed to
withdraw previously announced plans to issue "B" shares.
    The Cheung Kong firms each announced bonus issues of one
new "B" share for each two ordinary shares last week after a
proposed four-for-one bonus issue of "B" shares by Jardine.
    The stock exchange then barred any further issues of "B"
shares, except the three proposals already submitted. The "B"
shares have equal voting rights with existing shares but a much
lower par value.
    The exchange's Hang Seng index lost 134 points between
Jardine Matheson's March 27 announcement and its close at
2,664.70 yesterday. But the index rose over 40 points in early
trading today and brokers linked the rise to the statement.
 REUTER
