IMPROVE INFORMATION DISCLOSURE, AND SOLIDIFY MONEY MARKET FOUNDATION

In order to further improve the information disclosure system, provide measures for market members to guard against and avert risks, facilitate transactions and activate the market, the People's Bank of China publicized the Reply to Admit 18 Securities Companies including Hualong Securities Co. Ltd. into the national interbank funding market on October 25, 2002. It is clearly stipulated that securities companies must regularly disclose such information as their basic situation, the evolutionary history, financial statements, and alternations of equities to other market members through the electronic information system of the National Interbank Funding Center.

The Administrative Rules on the Information Disclosure by Securities Companies of the National Interbank Funding Center was released to fulfill the PBC's requirements on the information disclosure administration of securities companies as market members. The Rules listed the requirements on the contents and format of information disclosure, the disclosing means and time, and the reporting system for violations. The Rules also stated that after the disclosure, the Center will report to the PBC and publicize to the market the process of information disclosure by securities companies so as to guarantee the supervision by the PBC and market members.

The publication of the Rules shows that the interbank market has made considerable strides in information disclosure. The improvement of market information transparency has attracted much attention of market members for years. Its publication not only enhances the market's regulation on institutional information disclosure, but also protects the legal rights and interests of institutions. It is believed that with the constant perfection of the information disclosure system, IT application in the market will speed up and the money market can function with high safety, stability and efficiency.

(by Qin Jian)