HC Deb 09 November 1987 vol 122 cc16-7W
Mr. Hoyle

To ask the Secretary of State for Foreign and Commonwealth Affairs, pursuant to his answer of 2 November, how much of the Hong Kong exchange fund was used to provide support to the Hong Kong Futures Guarantee Corporation.

Mr. Eggar

Commitments from the Hong Kong exchange fund, in the form of two facilities of HK$1,000 million each, have been made in support of the Hong Kong Futures Guarantee Corporation. These are loan facilities, interest being charged at market rates. By 6 November the first facility has been drawn on by approximately HK$800 million.

Mr. Hoyle

To ask the Secretary of State for Foreign and Commonwealth Affairs what information he has as to what firms are being sued by the Hong Kong Futures Guarantee Corporation and as to how much they are being sued for; whether any Hong Kong Government officials are alleged to be involved in any of these firms.

Mr. Eggar

The Hong Kong Futures Guarantee Corporation has issued writs against 33 firms alleged to have defaulted. The amount involved is approximately HK$01,800 million. These writs have been issued to protect the position of the guarantee corporation and the number of writs outstanding is liable to change as settlements are made. We are not aware of any Hong Kong Government official having any connection with the firms which are being sued.

Mr. Hoyle

To ask the Secretary of State for Foreign and Commonwealth Affairs what information he has as to whether any Hong Kong stock exchange or financial futures exchange officials are alleged to be involved in any of the companies under investigation on the Hong Kong stock exchange.

Mr. Eggar

We are not aware of any allegations having been made against such officials, including the directors of the Hong Kong futures exchange, committee members of the Stock Exchange of Hong Kong Ltd. and staff employed by each exchange, of involvement with companies currently under surveillance by the Hong Kong stock exchange. Nor are we aware that any such officials are involved with any of the members or member firms which are currently under surveillance by the Hong Kong stock exchange or the futures exchange.

Mr. Hoyle

To ask the Secretary of State for Foreign and Commonwealth Affairs what are the names of the officials of(a) the Government and (b) the stock exchange who are alleged to be involved with companies being sued by the Hong Kong Futures Guarantee Corporation; and whether all these firms have been suspended from trading.

Mr. Eggar

We are not aware of any such officials. All firms which are being sued by the Futures Guarantee Corporation have been suspended from trading on the futures exchange.

Mr. Hoyle

To ask the Secretary of State for Foreign and Commonwealth Affairs if he will publish the list held by the Hong Kong stock exchange officials of brokers in financial difficulties; and if he will make a statement.

Mr. Eggar

As far as we are aware, no such list exists. Seven firms have suspended trading at their own request, but not necessarily because they are in financial difficulties.