**************************************
The following are the remarks made by the Chief Executive, Mr Tung Chee Hwa, at the Bank of China reception today (July 25):
Mr Liu Ming-kang, Mr Liu Jin-bao, Ladies and Gentlemen,
I am delighted to be present at this evening's reception to mark the listing of BOC Hong Kong (Holdings) Ltd on the Stock Exchange of Hong Kong. This is a historic event, for the Bank of China, for Hong Kong, and indeed for the entire nation.
The Bank of China has had a presence in Hong Kong for 85 years out of its 90-year history. Over the years, the Bank has grown into the second largest bank in Hong Kong, with nearly 350 branches and with deposits amounting to close to 20% share of the market. The Bank is also a major employer, with staff totalling 13,500. Since the return of Hong Kong to China, BOC has played a very important role in maintaining and enhancing the prosperity and stability of Hong Kong. Indeed, today the Bank of China is very much part of the fabric of Hong Kong. Its commitment to Hong Kong has been marked by three important milestones in recent years.
In May 1994 the Bank became one of the note-issuing banks for the Hong Kong dollar. In October 2001 the Bank restructured itself and merged its operations in Hong Kong and became incorporated as Bank of China (Hong Kong) Ltd: this restructuring has introduced new corporate governance arrangements. The third milestone, the listing that we celebrate today, provides both a means for the Bank to raise funds in Hong Kong and an opportunity for investors in Hong Kong to have a share in the ownership of the Bank. Following the public listing, the Bank has truly become a bank rooted solidly in Hong Kong.
For Hong Kong, the listing underlines our very important role as an international financial centre for China-related companies. The Hong Kong economy is presently undergoing a restructuring. As we move towards value-added activities, the financial services industry will be an important engine of growth for our economy. This listing - which represents one of the biggest Mainland-related flotations so far in Hong Kong - provides a great boost to the industry and contributes to broadening our capital markets and to our status as an international financial centre.
I welcome and I warmly congratulate the Bank of China on today's listing. These are not easy times, and in spite of the current volatility on the global equity markets, the bank's listing has been very well received by both retail and institutional investors. Local over-subscription amounted to 26 times and overseas over-subscription 4.3 times. Both are strong indications of investors' confidence in the bank's potential and its management quality. The listing, I am sure, will further cement the Bank's presence in Hong Kong and will help provide it with a further opportunity for growth and development in Hong Kong, and this is not just about Hong Kong, but also opportunities and growth and development on the Mainland, and indeed throughout the world. This successful listing is also a vote of confidence of Hong Kong, not only by Bank of China but also by the local and international investment community. Well done Bank of China and well done to all those who are involved in the project.
End/Thursday, July 25, 2002
NNNN
