Action Against Mr Chan Hing Sum trading as Promising Securities Co and
his Sales Representative, Mr Chen Ching Sheng

The Stock Exchange of Hong Kong announces that on December 20, 1999, the Disciplinary Committee heard the cases of the Member, Mr Chan Hing Sum ("Mr Chan") trading as Promising Securities Co and his Sales Representative, Mr Chen Ching Sheng ("Mr Chen"). The Committee found two charges against Mr Chan and a charge against Mr Chen for breach of the Rules of the Exchange proved.

The substance of the charges proved against Mr Chan was that on July 6, 1998,
August 31, 1998 and September 1, 1998 respectively, Mr Chan had used his cash clients' securities without their written authorisation to settle other clients' sales with the Central Clearing and Settlement System.

The substance of the charge proved against Mr Chen was that during the period July and August 1998, Mr Chen had failed to ensure that the client had sufficient stocks before he executed the sale orders for the client.

The Disciplinary Committee, having considered all the information before it including the penalties imposed in previous cases and the representations of Mr Chan and Mr Chen, resolved to impose a penalty of public censure on each of Mr Chan and Mr Chen and fine Mr Chan HK$10,000 and Mr Chen HK$3,000 respectively. The penalty of public censure is hereby imposed on each of Mr Chan and Mr Chen.