XN000022-1990-07-25 — Page 35

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WEDNESDAY, JULY 25, 1990

"THE THIRD RELATES TO PERMITTING SHORT-SELLING.

"THE

HAS ADMINISTRATION

TO RELATING

FURTHER AGREED COMMENCEMENT OF THE ORDINANCE UNTIL LEGISLATION

THE

DEFER TO BUYBACK

AND STOCK BORROWING ARE INTRODUCED POSSIBLY BY THE END OF 1990.

MARGINALLY "THE GROUP'S VIEW IS THAT THESE TWO MEASURES MAY BE BUT NOT SIGNIFICANTLY EFFECTIVE IN ADDRESSING THE ISSUE OF LIQUIDITY.

"THE GROUP

ACCEPTS

BE WILL

MORE THAT SHORT-SELLING

OF AN COMPLEXITY OF DRAFTING THE EFFECTIVE TOOL. NEVERTHELESS, GIVEN THE

ACCEPTS THAT THE INSIDER DEALING NECESSARY LEGISLATION, THE GROUP ORDINANCE SHOULD NOT BE HELD UP FOR A FURTHER YEAR.

OF THE CAVEAT MEASURES MENTIONED MARKET LIQUIDITY

'ACCORDINGLY, WE BELIEVE THAT THE INTRODUCTION EMPTOR PROVISION PLUS THE INTRODUCTION OF THE TWO ABOVE SHOULD GO SOME WAY TO ADDRESS THE PROBLEMS OF

MR CHEONG SAID. AS UNIQUELY EXPERIENCED IN HONG KONG,'

MR CHEONG SAID THIS STAGE ADMINISTRATION TO

ON THE ISSUE OF CRIMINALISING INSIDER DEALING, THE AD HOC GROUP FOUND THE ISSUE SHOULD NOT BE PURSUED AT

ASKED BUT HAD

THE BECAUSE OF ITS SENSITIVITY ADDRESS THE CONCERN ABOUT THE POSSIBLE EROSION OF CIVIL LIBERTY IN THE CONTEXT OF THE BILL OF RIGHTS.

SFC SHOULD HAVE MEANS TO BRING INSIDER DEALERS TO BOOK

WONG, SAID

IN

THE SECURITIES AND FUTURES COMMISSION SHOULD BE GIVEN EFFECTIVE MEANS TO BRING INSIDER DEALERS TO BOOK, THE HON PETER THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

BALANCED

NEVERTHELESS, MR WONG HELD THAT THESE MEANS SHOULD BE AGAINST THE POSSIBLE INTRUSIONS UPON THE RIGHTS OF THE INDIVIDUALS.

HE SAID THE SECURITIES (INSIDER DEALING) BILL 1989 ATTEMPTED TO BALANCE THESE POWERS AND INTRUSIONS.

SAID HE SPEAKING IN THE RESUMED DEBATE ON THE BILL, MR WONG

RESERVATION ON THE THE SUPPORTED

BILL AS A WHOLE BUT HAD DEFINITION OF "RELEVANT INFORMATION".

4

STRONG

HE WAS DISAPPOINTED THAT THE ADMINISTRATION HAD GIVEN IN TO THE BASED UPON THE NEW DEFINITION OF "RELEVANT INFORMATION" WHICH WAS EXISTING UK DEFINITION OF "INSIDE INFORMATION".

MR WONG NOTED THAT THE UK DEFINITION WOULD SHORTLY BE BY A NEW DEFINITION WHICH WAS CONTAINED IN DIRECTIVE.

THE

EUROPEAN

REPLACED COMMUNITY

/THIS MEANT