Firm sues exchange official

PUBLISHED : Saturday, 02 March, 2002, 12:00am
UPDATED : Saturday, 02 March, 2002, 12:00am

Yu Ming Investment Management has taken legal action against a Hong Kong Exchanges and Clearing official for comments that may have led to it losing the chance to be the listing sponsor of a Chinese state-owned company.

In a writ filed to the High Court yesterday, Yu Ming accused HKEx China and International Development chief Richard Peng Ru-chuan of defamation.

Yu Ming, a recognised sponsor for the main board and Growth Enterprise Market, said in the writ that it had tried hard for months to convince the firm to list in Hong Kong.

The writ did not identify the company.

Yu Ming said its executives had submitted a listing proposal to the company and liaised with it to meet Mr Peng and another HKEx official on February 19.

In the writ, Mr Peng is quoted as saying: 'There are two complications with this listing exercise, one is the sponsorship of the listing exercise. You are not going to be sponsor of this listing exercise, are you?'

After the Yu Ming official confirmed the company did want to be the sponsor, Mr Peng said 'no way', according to the writ.

Yu Ming considered Mr Peng's comments were 'slanderous' and 'defamatory', and that they implied the investment bank was lacking in experience and ability to be sponsor of the project.

'The plaintiff has incurred damage in that months of efforts to secure the sponsorship has been wasted,' the writ said.

Mr Peng must reply to the writ within 14 days.