香港聯合交易所有限公司
(香港交易及結算所有限公司全資附屬公司)
THE STOCK EXCHANGE OF HONG KONG LIMITED
(A wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited)

The Stock Exchange of Hong Kong Limited

CENSURES:

(1) Ping An Securities Group (Holdings) Limited (In Liquidation) (Stock Code: 231); and

IMPOSES A PREJUDICE TO INVESTORS’ INTERESTS STATEMENT against:

(2) Mr Gong Qing Li, former executive director; and
(3) Mr Lin Hong Qiao, former executive director.

The statements made in respect of Mr Gong and Mr Lin above are made in addition to a public censure against them.  The Prejudice to Investors’ Interests Statement is a statement that, in the Exchange’s opinion, had Mr Gong or Mr Lin remained on the board of directors of the Company, the retention of office by them would have been prejudicial to the interests of investors.

Mr Gong and Mr Lin caused the Company’s subsidiary to grant loans totaling around HK$273.6 million. The loans were not repaid, and this caused significant loss to the Company.  

The same directors effected three disposals of the Company’s subsidiaries and/or assets which resulted in the Company losing control of its subsidiaries without receiving any consideration.  According to an investigation report commissioned by the Company, Mr Gong was the mastermind behind the disposals and Mr Lin was complicit in the execution. There was no commercial rationale for the transactions which were clearly not in the interest of the Company.

The loans and disposals were carried out without the necessary approval of the Board. The transactions were subject to procedural requirements which were not complied with by the Company.

Ends