HKMEx may face searching Legco inquiry
Questions raised over shuttered commodities exchange's relationship with securities watchdog
The failed Hong Kong Mercantile Exchange (HKMEx) could come under further scrutiny after Liberal Party leader James Tien Pei-chun suggested launching an inquiry into the company under the Legislative Council's power and privileges ordinance.
Tien proposed setting up a select committee to look into the exchange founded by Barry Cheung Chun-yuen, a former key adviser to Chief Executive Leung Chun-ying, and whether it received privileged treatment from the securities regulator.
Legco's House Committee will discuss the proposal tomorrow. The pan-democratic camp backs the idea, but some key pro-establishment groups are withholding support.
HKMEx is already under investigation by the Securities and Futures Commission and the police.
It surrendered its trading licence to the SFC last month amid questions over its financial position. Cheung quit his public posts, including his seat on the Executive Council, after being dragged into a police investigation of the company.
In a letter to the House Committee on Tuesday, Tien said the public worried that the controversy might have harmed the city's reputation as an international financial centre.