Fan, Henry Hung Ling 范鴻齡
MMT doesn't find market misconduct in CITIC (0267)'s 2008 circular
SFC, 10-Apr-2017
The MMT says the SFC failed to show that the statement of "no material adverse change" (MAC) caused the price to remain stable, and it is irrelevant that if the huge FX loss had been disclosed, it would have crashed the price. The SFC in our view erred in focussing on the "financial position" (the balance sheet) and ignoring the "trading position" (the income statement). The MMT says there hadn't been a MAC in the financial position as the loss, while price-sensitive, was bearable. That's wrong in our view because it takes a creditor's view rather than a shareholder's view of what is materially adverse, and the Listing Rules were written primarily for equities. The MMT didn't examine whether there was a MAC in the trading position, because the SFC didn't ask them to. Time has moved on - it is now civil Market Misconduct to fail to disclose price-sensitive Inside Information, but in 2008 it was just a breach of the Listing Rules.
SFC, 10-Apr-2017
The MMT says the SFC failed to show that the statement of "no material adverse change" (MAC) caused the price to remain stable, and it is irrelevant that if the huge FX loss had been disclosed, it would have crashed the price. The SFC in our view erred in focussing on the "financial position" (the balance sheet) and ignoring the "trading position" (the income statement). The MMT says there hadn't been a MAC in the financial position as the loss, while price-sensitive, was bearable. That's wrong in our view because it takes a creditor's view rather than a shareholder's view of what is materially adverse, and the Listing Rules were written primarily for equities. The MMT didn't examine whether there was a MAC in the trading position, because the SFC didn't ask them to. Time has moved on - it is now civil Market Misconduct to fail to disclose price-sensitive Inside Information, but in 2008 it was just a breach of the Listing Rules.
LCQ: Legal proceedings related to CITIC (0267)
HK Government, 15-Oct-2014
Govt says police investigations into CITIC are ongoing. Legal battle over whether documents and disks seized by police are subject to legal professional privilege won't be heard in Court of Appeal until May-2015. Thanks to legislator James To Kun Sun for raising this again.
HK Government, 15-Oct-2014
Govt says police investigations into CITIC are ongoing. Legal battle over whether documents and disks seized by police are subject to legal professional privilege won't be heard in Court of Appeal until May-2015. Thanks to legislator James To Kun Sun for raising this again.
SFC launches proceedings against CITIC (0267), its former Chairman and executive directors
SFC, 11-Sep-2014
The SFC completed its investigation by 2010, but with the 6-year limit for civil action expiring tomorrow, it probably could not wait any longer for the DoJ to prosecute, so it is taking the civil route via the MMT, and more importantly for investors, it is seeking restoration for those who bought the shares during the period between the alleged false statement on 12-Sep-2008 and the revelation of the FX losses on 20-Oct-2008. Sadly there appears to be no remedy for those who already held the shares on 12-Sep-2008 and relied on the statement in continuing to hold them.
SFC, 11-Sep-2014
The SFC completed its investigation by 2010, but with the 6-year limit for civil action expiring tomorrow, it probably could not wait any longer for the DoJ to prosecute, so it is taking the civil route via the MMT, and more importantly for investors, it is seeking restoration for those who bought the shares during the period between the alleged false statement on 12-Sep-2008 and the revelation of the FX losses on 20-Oct-2008. Sadly there appears to be no remedy for those who already held the shares on 12-Sep-2008 and relied on the statement in continuing to hold them.
Barry Cheung takes leave of absence from public service positions
HK Government, 21-May-2013
He follows in the footsteps of Henry Fan, who by coincidence also chaired the Standing Committee on Disciplined Services Salaries and Conditions of Service (the policy pay committee) until he took "leave of absence" back on 28-Oct-2008 during the SFC's CITIC Pacific investigation. No charges have been laid in that case, which the police were also investigating. Plus ca change...
HK Government, 21-May-2013
He follows in the footsteps of Henry Fan, who by coincidence also chaired the Standing Committee on Disciplined Services Salaries and Conditions of Service (the policy pay committee) until he took "leave of absence" back on 28-Oct-2008 during the SFC's CITIC Pacific investigation. No charges have been laid in that case, which the police were also investigating. Plus ca change...
Investigations into CITIC Pacific
HK Government, 23-Jun-2010
Comment: the longer we wait for action, the more it seems like the current Secretary for Justice is having a "Sally Aw" moment.
HK Government, 23-Jun-2010
Comment: the longer we wait for action, the more it seems like the current Secretary for Justice is having a "Sally Aw" moment.
Authorities seek answers from CITIC Pacific
HK Standard, 21-Apr-2010
We suspect the company is running a defence of "our lawyer said we didn't have to disclose it", and so the Department of Justice wants to see the advice. We don't see how that makes a "no material change" statement true, and we don't think obtaining bad advice is an excuse for breaking the law, if they did. Any attempt to claim that excuse is good grounds for voiding legal professional privilege, in our view.
HK Standard, 21-Apr-2010
We suspect the company is running a defence of "our lawyer said we didn't have to disclose it", and so the Department of Justice wants to see the advice. We don't see how that makes a "no material change" statement true, and we don't think obtaining bad advice is an excuse for breaking the law, if they did. Any attempt to claim that excuse is good grounds for voiding legal professional privilege, in our view.
Henry Fan takes leave from Executive Council and MPFA during CITIC Pacific investigation
HK Government, 24-Oct-2008
Comment: What about his other public positions? He chairs the Standing Committee on Disciplined Services Salaries and Conditions of Service and the Advisory Committee on Admission of Quality Migrants and Professionals. He is a member of the Standing Committee on Judicial Salaries and Conditions of Service, the Advisory Committee on Post-office Employment for Former Chief Executives and Politically Appointed Officials, and the HKMA's Exchange Fund Advisory Committee.
HK Government, 24-Oct-2008
Comment: What about his other public positions? He chairs the Standing Committee on Disciplined Services Salaries and Conditions of Service and the Advisory Committee on Admission of Quality Migrants and Professionals. He is a member of the Standing Committee on Judicial Salaries and Conditions of Service, the Advisory Committee on Post-office Employment for Former Chief Executives and Politically Appointed Officials, and the HKMA's Exchange Fund Advisory Committee.
Henry Fan takes leave as Chairman of Takeovers Panel during CITIC Pacific investigation
SFC, 22-Oct-2008
SFC, 22-Oct-2008
Henry Fan takes leave as Government-appointed director of HKEx during CITIC Pacific investigation
HKEX, 22-Oct-2008
HKEX, 22-Oct-2008
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