Insider Dealing Tribunal Makes Orders on China Apollo Case (13

Press Release

Insider Dealing Tribunal makes orders on China Apollo case

Thursday, June 13, 2002

The Insider Dealing Tribunal chaired by the Honourable Mr Justice Lugar-Mawson has concluded the hearings for determining the profit gained or losses avoided by the persons found to be insider dealers in the insider dealing inquiry concerning China Apollo Holdings Limited. The Tribunal has also completed hearing the applications in respect of costs.

The Inquiry was conducted pursuant to a notice served by the Financial Secretary on 30 June 2000. The Tribunal completed its inquiry and submitted a report to the Financial Secretary on 1 February 2002. The report concluded that five implicated parties had committed insider dealing. The Tribunal then conducted hearings on 13 and 14 March 2002 to deal with issues in relation to profit gained, losses avoided, financial penalties, applications in respect of costs and the orders to be made.

After the hearings, the Tribunal makes the following orders against the five insider dealers, namely, Mr Raymond Lau Chan Wing, Mr Zhang Tie Cheng, Mr Lok Fai, Ms Arthine Chung Ming Chee and Mr Tseung Wai Lok -

(a) Mr Raymond Lau Chan Wing shall:

(i) not without leave of the Court of First Instance of the High Court of the Hong Kong Special Administrative Region be a director or a liquidator or a receiver or a manager of the property of a listed company or in any way whether directly or indirectly be concerned or take part in the management of a listed company for a period of 18 months;

(ii) pay to the Government of the Hong Kong Special Administrative Region the sum of HK$746,986, being the profit gained in the insider dealing;

(iii) pay to the Government of the Hong Kong Special Administrative Region a penalty of HK$746,986; and

(iv) pay to the Government of the Hong Kong Special Administrative Region HK$682,434, being 16% of 75% of the costs of the Inquiry.

(b) Mr Zhang Tie Cheng shall:

(ii) pay to the Government of the Hong Kong Special Administrative Region the sum of HK$755,997, being the profit gained in the insider dealing;

(iii) pay to the Government of the Hong Kong Special Administrative Region a penalty of HK$377,998; and

(iv) pay to the Government of the Hong Kong Special Administrative Region HK$383,870, being 9% of 75% of the costs of the Inquiry.

(ii) pay to the Government of the Hong Kong Special Administrative Region a penalty of HK$2,425,448; and

(iii) pay to the Government of the Hong Kong Special Administrative Region HK$1,407,522, being 33% of 75% of the costs of the Inquiry.

(d) Ms Arthine Chung Ming Chee shall:

(ii) pay to the Government of the Hong Kong Special Administrative Region the sum of HK$793,360, being the losses avoided in the insider dealing;

(iii) pay to the Government of the Hong Kong Special Administrative Region a penalty of HK$1,190,040; and

(iv) pay to the Government of the Hong Kong Special Administrative Region HK$1,407,522, being 33% of 75% of the costs of the Inquiry.

(e) Mr Tseung Wai Lok shall :

(ii) pay to the Government of the Hong Kong Special Administrative Region the sum of HK$922,465, being the profit gained in the insider dealing;

(iii) pay to the Government of the Hong Kong Special Administrative Region a penalty of HK$461,232; and

(iv) pay to the Government of the Hong Kong Special Administrative Region HK$383,870, being 9% of 75% of the costs of the Inquiry.

A report on penalty and consequential orders of the Tribunal has been submitted to the Financial Secretary and distributed to all concerned parties.