NEWS RELEASE

22 November 2000

The Hong Kong Exchanges and Clearing Limited (HKEx) Derivatives Market's panel of forecasters predicts that the three-month Hong Kong interbank offered rate (HIBOR) will be slightly higher on 15 January 2001 compared with its 15 November 2000 level. The panel also sees one-month HIBOR rising between now and mid-January. Both forecasts appear in the latest edition of the "HIBOR Futures Market Update" newsletter, published today.

The average forecasts for the final settlement prices of One-month and Three-month HIBOR futures on 15 January show panellists expect one-month HIBOR to be 5.83% on that date and three-month HIBOR to be 6.07%. The forecasts for the one-month rate range from 5.44% to 6.11%, while the forecasts for the three-month rate are between 5.75% and 6.37%. On 15 November, cash market rates for one-month and three-month HIBOR were 5.55% and 5.94% respectively.

The newsletter also features an article on the Hong Kong dollar interest rate outlook by Philippe Dirckx, Capital Markets Deputy Manager and Head of Interest Rate Derivatives at Fortis Bank. Mr Dirckx reviews several factors that influence Hong Kong dollar interest rates, including Hong Kong's economic prospects, market liquidity, investor demand and the currency markets, and says "we expect a steepening of the US dollar yield curve and a flattening of the Hong Kong dollar yield curve."

In addition, the newsletter includes an article that highlights the factors that affect the HIBOR market and explains how investors can profit from directional trading in HIBOR futures.

"HIBOR Futures Market Update" is published by the HKEx Derivatives Market and is available online from the website at: www.hkfe.com.

* Please note: The November 2000 "HIBOR Futures Market Update" (Issue 14) has also been sent.

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