Lawsons Securities Co. (Lawsons) defaulted in its payment obligation to Hong Kong Securities Clearing Company Limited (HKSCC), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited, on 1 June (Saturday). This constitutes a default under Rule 3701 of General Rules of CCASS. Pursuant to Rule 3702, Lawsons has been declared a defaulter by HKSCC. Subsequent to the HKSCC declaration on Lawsons, pursuant to Rule 704 of Rules of the Stock Exchange of Hong Kong, the Stock Exchange suspended the participantship of Lawsons from today (Monday) until further notice.

HKSCC will proceed with its default procedures to effect closing-out of the unsettled Continuous Net Settlement stock positions of Lawsons.

Lawsons suspended trading voluntarily in 31 May (Friday) afternoon and the brokerage had not conducted trading in last Friday morning.