09:56     BOC HONG KONG<02388> - Announcement (5)                             

    New Caps        120                140                160                 
                                                                              
    6.        Bank-note Delivery                                              
                                                                              
    BOCHK provides bank-note delivery services to BOC and its associates for  
    fees based on market rates. Such market rates are determined with         
    reference to rates offered to other banks by BOCHK and by other banks     
    that offer such services, and are based on factors including distance,    
    volume, insurance and security risk.                                      
                                                                              
    The table below sets out the historical fees and the New Caps for the     
    bank-note delivery services:                                              
                                                                              
            (HK$ million)                                                     
            2001                2002                2003                      
                                                                              
    Historical fees        Not Available                60                30  
                                                                              
            2005                2006                2007                      
                                                                              
    New Caps        80                100                120                  
                                                                              
    7.        Insurance Agency                                                
                                                                              
    BOCHK provides to BOC Insurance and BOC Life insurance agency services    
    and receives commission payments in respect of the policies issued or     
    renewed.                                                                  
                                                                              
    The table below sets out the historical commissions and the New Caps for  
    the insurance agency services:                                            
                                                                              
            (HK$ million)                                                     
            2001                2002                2003                      
                                                                              
    Historical commissions        134                149                166   
                                                                              
            2005                2006                2007                      
                                                                              
    New Caps        310                410                530                 
                                                                              
    8.        Provision of Insurance Cover                                    
                                                                              
    BOC Insurance provides insurance cover to the Group including, without    
    limitation, cash and cash transit insurance, group medical insurance,     
    group life insurance, employee compensation insurance, public liability   
    insurance, accidental damage to property insurance, banker's bond         
    insurance and directors' and officers' liability insurance.               
                                                                              
    The table below sets out the historical premiums paid by the Group and    
    the New Caps for provision of insurance to the Group:                     
                                                                              
            (HK$ million)                                                     
            2001                2002                2003                      
                                                                              
    Historical premiums        51                51                58         
                                                                              
            2005                2006                2007                      
                                                                              
    New Caps        90                110                130                  
                                                                              
    9.        Foreign Exchange Transactions                                   
                                                                              
    In the ordinary course of its business, the Group enters into foreign     
    exchange transactions with BOC and its associates. These transactions     
    are executed with reference to prevailing market rates. Foreign exchange  
    transactions include spot, forward and outright transactions, and         
    exercised currency options. The Group also conducts foreign currency      
    banknote exchange transactions with BOC on normal commercial terms.       
                                                                              
    The Group earns foreign exchange revenue through the spread between its   
    foreign exchange trades with retail customers and wholesale transactions  
    in the interbank market. Trades with BOC represent a portion of those     
    interbank transactions that are fungible with all others. Therefore,      
    revenue attributable to BOC trades is determined as a percentage of       
    total revenue from foreign exchange transactions calculated as the        
    percentage of BOC trades compared to the total trades on the interbank    
    market.                                                                   
                                                                              
    The table below sets out the historical estimated revenues and the New    
    Caps for the foreign exchange transactions described above:               
                                                                              
                                         (HK$ million)                        
                                       2001                             2002  
                 2003                                                         
                                                                              
    Historical estimated revenues        Not Available                36