During the year, the Company purchased on the Hong Kong stock exchange a total of 29,897,500 'A' shares of HK$0.60 each and 17,405,000 'B' shares of HK$0.12 each of the Company, at an aggregate consideration of HK$1,833 million. All the shares purchased were subsequently cancelled. An amount equal to the nominal value of the shares cancelled was transferred from revenue reserves to the capital redemption reserve as disclosed in note 18.

(a) Distributable reserves of the Company at 31st December 1997 amounted to HK$6,843 million (1996: HK$8,570 million).

(b) As explained in note 13(b), the Group reserves as at 31st December 1997 would have been increased by HK$278 million (1996: reduced by HK$395 million) had HK SSAP11 been adopted.

The Perpetual Capital Securities, US$300 million each and bearing cumulative interest at 9.33% and 8.84% per annum, were issued by two wholly-owned subsidiaries (The 'Issuers') on 23rd October 1996 and 6th May 1997 respectively. They have no scheduled maturity but are redeemable at the option of the Company or the respective Issuer either (i) at any time on or after 30th October 2006 and 13th May 2017 respectively or (ii) at any time upon amendment or imposition of certain taxes, and in any case, become due in the event of the Company's or the respective Issuer's winding up. The Perpetual Capital Securities are unconditionally and irrevocably guaranteed, on a subordinated basis, by the Company.

(a) Included in the gross amounts shown above for the Group are other borrowings not wholly repayable within five years amounting to HK$3,239 million (1996: HK$3,450 million).

(b) Borrowings other than bank loans are repayable on various dates up to 2004 at interest rates from 7.125% to 10.5% per annum.