XN000022-1995-09-04 — Page 6

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Introduction

By notices dated February 7, 1994, and September 1, 1994, respectively, the Financial Secretary required the Insider Dealing Tribunal to institute an inquiry in relation to the listed securities of Public International Investments Ltd (PIIL) to determine:

(a)

whether insider dealing has taken place in relation to the listed securities of PIIL during November and December 1992;

(b)

the identity of every insider dealer, if any, in those securities; and

(c)

the amount of any profit gained or loss avoided as a result of such insider dealing.

The Tribunal has completed its inquiry and submitted a report to the Financial Secretary on August 8.

The Company

PIIL was originally incorporated as Wai Woo Company Limited in July 1964. In August 1972, the company's name was changed to Wai Woo Estates and Investments Limited when it was listed. In 1973, the company's name was further changed to PIIL. In July 1993, after the events with which the Tribunal was concerned, its name was changed to First Shanghai Investments Limited.

PIIL was an investment holding company and its activities covered sharemarket investments, stockbroking, insurance, deposit taking and other financial services.

In the course of 1992, PIIL was the subject of a number of take-over approaches. Save for the approach by CEF Capital Ltd which took place during the material times of this inquiry (i.e. in December 1992), none came to fruition.

The Allegations

The allegations involved suspected insider dealing in the listed securities of PIIL by the following individuals:

(a)

Mr Don Lau Yuen-leung, who represented the company which acted as adviser to PIIL minority shareholders in relation to the take-over bid; and