XN000022-1996-11-27 — Page 49

-

37

-

Control of the securities industry

Following is a question by the Hon Law Cheung-kwok and a written reply by the Secretary for Financial Services, Mr Rafael Hui, in the Legislative Council today (Wednesday):

Question:

Regarding the closure of securities companies recently, is the Government aware of:

Reply:

(a)

(b)

(c)

(a)

which securities companies have closed down on account of financial difficulties or other reasons since the beginning of this year, and the amount of capital which could not be recovered by the clients of each of the securities companies concerned;

the operation of the above companies in terms of capital size, management practice and types of clients; and

whether the authority concerned will adopt measures to step up the control of the securities industry so as to safeguard the interests of investors as well as promote the development of the industry?

Since the beginning of this year, three companies involved in securities trading have ceased business on account of financial difficulties or similar reasons. As it is possible that legal proceedings may be instituted against these companies, it would not be appropriate to name names. The estimates of the amounts that could not be recovered by the clients of each of the companies involved are $47 million, $29 million and $12 million respectively.