§ Mr. Newensasked the Secretary of State for Foreign and Commonwealth Affairs if he considers that protection for small shareholders in publicly quoted companies in Hong Kong is adequate in the light of the annual report of Wheelock Marden; and if he will make a statement.
§ Mr. LuardThe protection given to small shareholders has been greatly increased during the past three years by the enactment of such legislation as the Securities Ordinance and the Protection of Investors Ordinance. A Securities Commission has also been established and a voluntary take-over code, based on London practice, introduced. All public companies will in future be required to provide more financial information and consolidated accounts for all companies within one group.
§ Mr. Newensasked the Secretary of State for Foreign and Commonwealth Affairs when the insider trading clauses of the Hong Kong Securities Ordinance are due to come into operation; and if he will make a statement.
§ Mr. LuardThis matter is at present being reconsidered in Hong Kong. Section 140 of the Securities Ordinance dealing with insider trading was not brought into operation with the rest of the Ordinance because the Hong Kong Government hoped to benefit from United Kingdom experience of operating similar legislation then being proposed but not, in the event, enacted.