XN000022-1993-07-09 — Page 9

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FRIDAY, JULY 9. 1993

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CERTAIN WORLD TRADE CENTRE GROUP SHARES FROZEN

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IN RESPONSE TO A RECOMMENDATION MADE BY THE INSPECTOR APPOINTED TO INVESTIGATE CERTAIN SHAREHOLDING OF THE WORLD TRADE CENTRE GROUP LIMITED (WTCG), THE FINANCIAL SECRETARY MADE AN ORDER YESTERDAY (JULY 8) WHICH RESTRICTS THE TRANSFER OF OWNERSHIP OF SOME OF THE SHARES OF THE COMPANY, THE SECRETARY FOR FINANCIAL SERVICES, MR MICHAEL CARTLAND, SAID TODAY (FRIDAY).

MR JOHN ROBERT LEES WAS APPOINTED AS INSPECTOR BY THE FINANCIAL SECRETARY ON JUNE 2 THIS YEAR UNDER SECTION 33 OF THE SECURITIES (DISCLOSURE OF INTERESTS) ORDINANCE TO INVESTIGATE AND REPORT ON MEMBERSHIP OF WTCG.

THE INSPECTOR COMPLETED HIS REPORT ON JULY 1 THIS YEAR.

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IN THE COURSE OF HIS INVESTIGATION, THE INSPECTOR APPROACHED THREE COMPANIES INVOLVED IN A PLACEMENT ISSUE IN JULY AND RELATED PERSONS AS WELL AS THE NOMINEE COMPANIES CONCERNED TO ASCERTAIN THE BENEFICIAL OWNERSHIP OF SOME 179 MILLION SHARES OF WTCG.

LETTERS WERE SENT TO THE PARTIES INVOLVED SEEKING INFORMATION REGARDING THEIR PAST AND PRESENT INTERESTS IN WTCG SHARES.

SOME OF THE PERSONS CONNECTED WITH TRANSACTIONS INVOLVING TRE SHARES IN QUESTION HAVE BEEN INTERVIEWED.

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WHILE SOME RESPONDENTS REFUSED TO PROVIDE THE RELEVANT INFORMATION, OTHERS FAILED TO PRESENT THE NECESSARY DOCUMENTATION ESTABLISH THEIR INTERESTS IN THE SHARES.

"THE

INSPECTOR THEREFORE CONCLUDED THAT THERE IS DIFFICULTIES IN FINDING OUT THE RELEVANT FACTS ABOUT THESE SHARES. AS A RESULT, THE INSPECTOR RECOMMENDED THAT THOSE SHARES BE SUBJECT TO RESTRICTIONS UNDER PART V OF THE SECURITIES (DISCLOSURE OF INTERESTS) ORDINANCE,' MR CARTLAND SAID.

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PART V RESTRICTIONS ARE MAINLY TO LIMIT THE TRANSFERRABILITY OF SHARES. THIS PROVISION CAN BE INVOKED IF IT APPEARS TO THE FINANCIAL SECRETARY THAT THERE ARE DIFFICULTIES IN FINDING OUT THE RELEVANT FACTS ABOUT ANY SHARES, WHICH IS THE CASE ON THIS OCCASION, HE SAID.

"THE ORDINANCE PROVIDES THAT AN ORDER APPLYING PART RESTRICTIONS MAY BE DISAPPLIED BY A SUBSEQUENT ORDER.

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"SHOULD THE RELEVANT FACTS ABOUT PARTICULAR SHAREHOLDINGS BE DISCLOSED AND REVEAL THAT NO UNFAIR ADVANTAGE HAD ACCRUED TO ANY PERSON AS A RESULT OF THE EARLIER FAILURE TO MAKE A DISCLOSURE, THE FINANCIAL SECRETARY WOULD CONSIDER TO DISAPPLY THE RESTRICTIONS, MR CARTLAND SAID.

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THE GOVERNMENT HAS ISSUED LETTERS TO THE PARTIES CONCERNED AS WELL AS THE WTCG AND THE STOCK EXCHANGE OF HONG KONG LTD TO INFORM THEM OF THE IMPOSITION OF RESTRICTIONS ON THE SHARES IN QUESTION AND A NOTICE HAS BEEN PLACED IN TOMORROW'S (SATURDAY) NEWSPAPERS.

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