XN000022-1990-07-25 — Page 34

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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 .....................