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The following is the English portion of the transcript of a meet-the-media session by the Financial Secretary, Mr Antony Leung, at Central Government Offices, West Wing, Lower Albert Road, Central, today (July 31):

Financial Secretary: Good evening. As you know, I have appointed Mr Robert Kotewall and Mr Gordon Kwong to conduct an independent inquiry into the circumstances relating to the preparation and release of the Consultation Paper on Proposed Amendments to the Listing Rules relating to Initial Listing and Continuing Listing Eligibility and Cancellation of Listing Procedures - so it's basically, the Consultation Paper.

Now, the terms of reference of this inquiry are:

(a) Firstly, to examine the existing procedures for the preparation and making of new or amended HKEx rules and regulations, including the process of consultation with the trade and the public;

(b) Secondly, having regard to the findings in (a), to review the arrangements for the preparation and release of the Consultation Paper;

(c) Thirdly, to make recommendations as to the measures to be adopted to improve, where necessary, the coordination in and procedures for the preparation and making of similar rules and regulations in the future, including the process of consultation with the trade and the public; and

(d) Lastly, to submit a report with conclusions and recommendations to me by September 10.

I'd like to add that the scope of the review of the arrangements for the preparation and release of the Consultation Paper will cover all parties that may relate to the Consultation Paper, and that includes the Financial Secretary.

Reporter: Mr Leung, following what you said, does it mean that this inquiry will also look into whether somebody should be held responsible and apportion blame on this issue?

Financial Secretary: I think it is a bit too early to talk about who should be blamed. It is very important at this juncture to find out actually what has happened and also what recommendations can be made to improve such processes in future to avoid similar incidents from happening. But I think once it is revealed what has happened and actually what went wrong, then I think it would be apparent to everybody who should be shouldering what kind of responsibility.

Reporter: Mr Leung, isn't it better for the Legislative Councillors to set up their own panel of inquiry? Why is this the better way forward for you?

Financial Secretary: Well, obviously, the Legislative Councillors have their own right and freedom to set up whatever committee they would like. But as far as the Administration is concerned, we have decided to set up a Panel of Inquiry because I believe it is a responsible act for the Administration to set up this committee to find out exactly what has happened. And then after the report is submitted to me, we will obviously disclose it to the public as well as to the Legislative Council.

Reporter: Can you clarify the date of the report?

Financial Secretary: September 10.

Reporter: September 10?

Financial Secretary: Yes, before September 10.

Reporter: On what basis have you hired Mr Kwong as one of the members of the inquiry -- because he is a member of the Listing Committee here?

Financial Secretary: He was.

Reporter: Okay.

Financial Secretary: I mean, actually, if you look at the background of these two gentlemen, they all have been involved in the market. They all have been involved in either the SFC or the HKEx. They have been very experienced but they don't really have an active role now in either of these organizations. And I think it is important to appoint people that have the credibility but also have the experience in the market, because otherwise it will be quite difficult for them to conduct such an inquiry.

(Please also refer to the Chinese portion of the transcript)

End/ Wednesday, July 31, 2002

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