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The order of the Insider Dealing Tribunal in question does not pose any bar whatsoever against the wife of the person concerned from serving as a director of the concerned company or any other company. It was announced by the company on 13 December 1996 that the person concerned resigned as director and executive director on 28 November 1996 but would continue to render his expertise and experience to the company as a consultant under a service contract. Our legal advice is that no action would need to be taken as long as the activities and action of the person concerned are not in contravention of the prohibition order. The Securities and Futures Commission, as the regulator of the securities market, will take the necessary action within its powers under the law if it appears that there has been a breach of the prohibition order, or the interests of investors are compromised.

End

Trading of warrants and covered warrants

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

Question:

know:

Regarding the trading of warrants and covered warrants, does the Government

(a)

(b)

(c)

given that each listed company may have, in addition to its ordinary shares, a number of warrants and covered warrants which can be traded in the market, whether the authorities concerned have examined if such trading will affect the development of the market; if so, what the details

are;

whether the authorities concerned have considered introducing legislation or issuing guidelines to regulate such trading; and

whether the authorities concerned have assessed the impact of these products on the levy of stamp duty on securities?