Stock Exchange of Hong Kong takes Action against two registered persons

The Stock Exchange of Hong Kong announces that on June 21, 1999, the Disciplinary Committee heard the cases of Mr Cheung Yik Cho and Mr Pang Ka Kon, Stephen, registered persons of the Exchange, and found a charge against each of Mr Cheung and Mr Pang for breach of the Rules of the Exchange proved. The substance of the charge proved against each of Mr Cheung and Mr Pang was that Mr Cheung, being a former Dealing Director and General Manager of a Member during the period August 14, 1995 to March 11, 1998, and Mr Pang, being a former Dealing Director and Assistant General Manager of the Member during the period June 13, 1997 to June 15, 1998, had failed to ensure the Member to have satisfactory internal control procedures, resulting that a former Sales Representative of the Member misappropriated seven clients' securities. The Disciplinary Committee, having considered all the information before it including the penalties imposed in previous cases and the representations of Mr Cheung and Mr Pang, resolved to impose a penalty of public censure on each of Mr Cheung and Mr Pang and fine Mr Cheung HK$30,000 and Mr Pang HK$15,000 respectively.