· 32 -
Reply:
Mr President
The Air Pollution Index is designed to reflect the quality of outdoor air, of which the oxygen content is constantly at the normal level of 20%. In the outdoor environment, the carbon dioxide level in Hong Kong is well below 0.5% and variations around this level of concentration will not affect the oxygen content of the air. The issue of low oxygen in outdoor air is only relevant to locations at altitudes above 10,000 feet: but this is not relevant to Hong Kong. It is therefore not necessary for the Air Pollution Index to take into account the oxygen content. Hence, the answers to both (a) and (b) are in the negative.
End
Predicted profits and performance of H shares companies
Following is a question by Dr the Hon Huang Chen-ya and a written reply by the Secretary for Financial Services, Mr Rafael Hui, in the Legislative Council today (Wednesday):
Question:
Will the Government inform this Council whether:
(a) the Securities and Futures Commission (SFC) will make a comparison between the profits predicted in the prospectuses of H share companies and the performance of these companies as published after the first year;
(b) the SFC has carried out investigations into companies which have recorded marked discrepancies between the predicted and actual profits; if so, what are the findings; and
(c) there are statutory provisions requiring merchant banks to be responsible for the accuracy of the information contained in prospectuses; if so, what are the liabilities of the merchant banks in the event that the particulars in the prospectuses are found to be incorrect, and what penalties will be imposed on them; if not, whether the Government will require merchant banks to assume responsibility, so as to reduce the chance of investors being misled?