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It also conceded that the move would lead to a further drop in the stock market but said that "it was a necessary measure to 'heal' the stock market".
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Sing Tao Wan Pao (14.11.74) also felt that there was nothing to say against the move but it remarked, "We only regret that the Government had adopted a "laissez-
ire" attitude towards unreliable public companies during the market boom, thus causing unassessable losses to the public."!
The same view was echoed in the communist Tin Fung Yat Po (14.11.74).
Hong Kong Daily News (15.11.74) observed that the investigation "has tolled a death knel to irresponsible public companies and at the same time, fulfilled the expectation of investors".
In addition to conducting an investigation into irresponsible public companies, Hong Kong Daily News urged the Government to curb the out-flow of capital.
Nem Wah Man Po 4.11.74) asked the Government to take note of the frequent changes in the ownership of assets of certain public companies.
Sing Tao Wan Pao suggested in general terms that "some positive measures should be taken by the Government to revive the stock market and to re-instate the confidence of investors
The communist Tin Fung Yat Po (15.11.74) observed that the suspension of share trading of Kao Shing and Asia Land would undoubtedly be a serious blow to investors. It warned that more public companies with irregularities would be discovered in the coming year and urged investor to learn from this bitter lesson.
Another communist paper Hong Kong Evening News (14.11.74) felt that the investigation should be crtended to cover larger public companies.
Legislation to restrict the issue of new shares by public companies
Similar to the probe into the operations of public companies, the announcement of stricter legislation to control the issue of additional shares by public componics was also described as a belated mave.
Prior to the announcement, both Fas Food Hong Kong Times had already urged the Government to pay attention to the proposals of some public companies to issue additional shares.
"The issue of additional shares under present circumstances will only prove advantageous to a small group of people but a direct infringement on the benefits of the large number of investors," Fai Po (14.11.74) pointed out.
The paper explained that the action would increase the working capital of the management on the one hand but reduce the dividends for shareholders on the other.
The communist Hong Kong Evening News (14.11.74) cited the example of Hutchison International's sale of new shares at an exceptionally low price and claimed that "the stock market was therefore brought down to an even more pitiable slump".
Both Fai Po and Hong Kong Times (16.11.74) said that the Commissioner for Securities would be accused of dereliction of duty if he did not act promptly.
Sing Tao Wan Pao (16.11.74) and Kung Sheung Evening News (17.11.74) unanimously said after the announcement by the Securities Commission, "It is a belated move but better late than nover".
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