§ Mr. Newensasked the Secretary of State for Foreign and Commonwealth Affairs what investigations have now been made into Wheelock Marden in Hong Kong, following allegations of insider trading in shares; and what has been the outcome of these investigations.
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§ Mr. RowlandsThe Hong Kong Commissioner for Securities has conducted an investigation, under Section 124 of the Securities Odinance, of all transactions in Wheelock Farden "A" shares between October 1975 and March 1976. Although large blocks of these shares were sold by certain large shareholders, the investigation has shown that these transactions did not involve any offence under the Securities Ordinance.
§ Mr. Newensasked the Secretary of State for Foreign and Commonwealth Affairs, whether, in the light of experience gamed from studying the case of Wheelock Marden, the Hong Kong Government are proposing to bring Section 140 of the Securities Ordinance, which deals with insider trading, into operation to protect the small shareholder.
§ Mr. RowlandsI would refer my hon. Friend to the reply given to him on 13th May. The Hong Kong Government are now considering a revision of Section 140 of the Securities Ordinance in order to overcome the difficulties of defining insider trading satisfactorily and to ensure that its prohibition can be properly enforced.—[Vol. 911, c. 269.]
§ Mr. Newensasked the Secretary of State for Foreign and Commonwealth Affairs if he is satisfied that the protection given to the small shareholder in publicly-quoted companies in Hong Kong is still regarded as adequate without the enactment of further legislation.
§ Mr. RowlandsLegislation protecting the small investor in Hong Kong is kept under continuous review. Experience of the workings of the Securities Ordinance over the past two years has already shown the need for certain changes and an amending bill is at present before the Legislative Council.