Penny Stocks Fiasco Not A Factor In Kwong's Departure

by Mary Swire, Tax-News.com, Hong Kong

18 November 2002

Following last Wednesday's announcement that Hong Kong Exchanges and Clearing (HKEx) chief executive, Kwong Ki-chi will not be seeking reappointment when his contract expires in March, denials have been issued that his departure is related to the recent penny stocks debacle which wiped out the savings of many of Hong Kong's small investors.

In the government's 181 page report into the crisis - which was sparked when a consultation paper issued by HKEx proposed the delisting of certain penny stocks, and caused investors in such stocks to head for the exits in a fairly spectacular way - the head of the exchange was told that he must shoulder some of the blame, despite the fact that various other high level officials had been exonerated.

However, speaking on Thursday, Mr Kwong suggested that next spring is as good a time as any to step down:

'The penny stocks incident has not been taken into account for my departure,' he explained. 'It is very natural for one to leave after a contract ends. For example, isn't it natural if Chief Executive Tung Chee-hwa finishes his term and steps down in five years' time?'

Reporting last week, the Hong Kong Standard suggested that possible contenders for the position when Mr Kwong steps down include KPMG Hong Kong chairman, Marvin Cheung, China Securities Regulatory Commission deputy chairman, Laura Cha, and HKEx deputy chief operating officer, Lawrence Fok.

Recommended