Our Ref: B2/14C(01)

16 July 2001

To : Chief Executive
All authorized institutions

Chief Representative
All local representative offices

Chief Executive
All approved money brokers

Dear Sir/Madam,

Banking Ordinance (Amendment of Seventh Schedule) Notice 2001
Banking Ordinance (Amendment of Eleventh Schedule) Notice 2001

I write to inform you that the Seventh Schedule and Eleventh Schedule to the Banking Ordinance have been amended on 8 June to take into account "share premium" in assessing whether an applicant for authorization satisfies the capital requirements stipulated in the respective paragraph of the respective Schedule. A copy of each of the Legal Notices of the amendments is attached for your reference.

Yours faithfully,

(Raymond Li)
Executive Director (Banking Development)

Encl.