32
WEDNESDAY, JULY 25, 1990
SECURITIES
AND
FUTURES
COMMISSION TO BE BY A EFFECT ΤΟ THE
ON
A WHETHER
IT WAS ENVISAGED THAT THE WOULD BE RESPONSIBLE FOR INITIAL INVESTIGATION, AND WOULD HAVE SATISFIED THAT THERE WAS A CASE TO BE ANSWERED AND INVESTIGATED
BEFORE TRIBUNAL
MAKING A RECOMMENDATION TO THIS
SAY ULTIMATE FINANCIAL SECRETARY WHO WOULD HAVE TRIBUNAL OUGHT TO BE SET UP, HE SAID.
THE
то EXPLAIN AND 9 AND 10 OF
HE SAID THE FINANCIAL SECRETARY WOULD BE REQUESTED IN GREATER DETAIL THE MECHANISM INVOLVED IN TODAY'S LEGCO SITTING THE HON MARTIN BARROW WOULD MOVE AMENDMENTS TO CLAUSES THE BILL TO ADDRESS CONCERN ABOUT THE MECHANISM.
BY THE AD HOC SHAREHOLDERS OF
MR CHEONG SAID ANOTHER MAJOR ISSUE DEALT WITH GROUP WAS RELATED TO THE ROLE PLAYED BY CONTROLLING LISTED COMPANIES IN ACTING AS THE BUYERS OR SELLERS OF LAST RESORT THE SHARES OF THEIR COMPANIES.
IN
KONG MARKET IN WHICH A IT WAS A COMMON FEATURE OF THE HONG
HELD BY LARGE PROPORTION OF THE SHARES OF MANY LISTED COMPANIES WERE
BE APPROACHED CONTROLLING SHAREHOLDERS, WHO WOULD FROM TIME TO TIME
SHARES OF BY BROKERS FOR THE PURCHASE OR SALE OF LARGE LINES OF THEIR COMPANY.
THE
HAD PLAYED A
SUCH ACTIVITIES OF THE CONTROLLING SHAREHOLDERS VITAL ROLE IN MAINTAINING THE LIQUIDITY OF THE MARKET, HE ADDED.
AFTER A SERIES MR CHEONG SAID THE ADMINISTRATION MAINTAINED,
NOT BE POSSIBLE OF DISCUSSIONS WITH THE AD HOC GROUP, THAT IT WOULD
OF BLANKET EXCEPTION TO MAKE A
SUCH ACTIVITIES OF CONTROLLING "MARKET-MAKERS” IN OTHER MARKETS, SHAREHOLDERS WHO, UNLIKE GENUINE
LARGELY TO SUIT HAD THE LIBERTY TO DECIDE WHETHER OR NOT TO RESPOND, THEIR OWN CIRCUMSTANCES.
USING THE 'CAVEAT EMPTOR' "HOWEVER, A WAY FORWARD WAS FOUND
BASIS THAT A PRINCIPLE BY PROVIDING AN EXCEPTION IN THE BILL ON THE
IN A DEALING SHOULD
PROHIBITED NOT BE
IF THE PARTY TO BE INVOLVED
WAS AWARE THAT HE WAS WITH TRANSACTION
A
SHAREHOLDER CONTROLLING
A
A CONNECTED PERSON WHO
PERSON AND WHO MIGHT DEALING WITH
I.E. THE PARTY THEREFORE BE IN POSSESSION OF RELEVANT INFORMATION,
IN BY ENGAGING DISADVANTAGED ACCEPTING
MOVED BY MY COLLEAGUE THE
THE POSSIBILITY
DEAL. THE
A NEW HON PETER WONG.
CLAUSE
WAS
OF BRING
WILL BE 9(6)
"IN RESPONSE TO THE AD HOC GROUP'S QUERY ABOUT
THE
WHAT WOULD BE THE ABOUT LIQUIDITY OF CONCERN
BK HAS SUGGESTED THAT LIQUIDITY WOULD ENHANCED BY THREE MEASURES WHICH WOULD BE PUT IN PLACE SOON.
DONE SPECIFICALLY TO MARKET, THE ADMINISTRATION
ADDRESS
BUYBACK THE
OF SHARES BY "THE FIRST IS A PROPOSAL TO ALLOW LISTED COMPANIES, WHICH IS EXPECTED TO BE IN PLACE BY THE END OF 1990.
FORCE FREE OF
"THE SECOND ONE RELATES TO ATTEMPTS TO THE BRINGING INTO EXISTING LEGISLATION WHICH ALLOWS STOCK BORROWING OR LENDING STAMP DUTY.
/"THE THIRD .....................