shares will be discontinued at the end of December.

The move is being reported by some Hong Kong journalists as linked to a row over the 1997 return of Hong Kong to China. But the company denies the move is related to a loss of confidence in the territory's future.

The Jardine Matheson Group has traded in, and with Hong Kong, for a century and a half. There is no indication that they would cease their widespread business activities there.

The Minister of Finance, the Hon. Dr. David Saul, said that the decision is not likely to affect the company's Bermuda operation.

Dr. Saul said: "They are only protecting their corporate assets. They decided that they had to do it.'' When asked about this development, Bermuda Monetary Authority general manager, Mr. Malcolm Williams, responded: "What Hong Kong chooses to do and what Jardine Matheson chooses to do is up to them.

"Even if Jardine Matheson decided they would like a secondary listing in Bermuda, the Bermuda Stock Exchange has still not produced sufficient regulations to offer itself as an international stock exchange. This authority is surprised and disappointed that it is taking so long to put the regulations into place.

"We have a take-over code that covers the five Jardine companies that are incorporated in Bermuda, that is modelled on the UK code, as is the Hong Kong code. Jardine is subject to codes of a very similar nature. But if Hong Kong chooses not to exempt Jardine from its code, then that is Hong Kong's philosophy.'' Jardine Matheson International Services Ltd. President, Ray Moore, was said by his Bermuda office to be off the Island. He is thought to be in Hong Kong.

A Press statement quoted Jardine Matheson Holdings Chairman, Mr. Henry Keswick, out of Hong Kong, as saying that the Bermuda Takeover Code, due to come into force July 1, will provide a consistent and comprehensive regulatory framework outside Hong Kong that could govern the company's affairs.

With interests ranging from trading and transport, selling cars and property, Hong Kong's oldest and most famous trading company, said that the decision was taken during a board meeting yesterday, because of the refusal by Hong Kong regulators to excuse the company from their take-over regulations.

It is one of the largest investors in Hong Kong and the territory's largest private employer.

The company, which has its primary listing, together with the primary listing for four other companies on the London Stock Exchange, had unsuccessfully sought from the British colony's Securities and Futures Commission (SFC) an exemption or general waiver from the Hong Kong Code.

The Bermuda Code would be interpreted by the courts and not by an administrative panel, as it would be in Hong Kong or London.

Mr. Keswick said: "The board has reluctantly decided that it should terminate the company's contractual link to the Hong Kong Code, by withdrawing it secondary listing on the Hong Kong Stock Exchange.'' But the SFC has said that they did not believe that de-listing would take the company outside of the ambit of the Hong Kong Takeover Code.

The Board of directors of the company noted, however, that the overwhelming majority of the beneficial ownership of the company's shares is outside Hong Kong, as are its place of incorporation and its primary stock market regulation.

A prepared statement indicated the board's view that when the Bermuda takeover Code is in affect and de-listing from the Hong Kong stock exchange has occurred, that it would be inappropriate for regulation by the SFC of any offers for the company's shares.

For an analysis see Page 11.