Banned trader allegedly involved in 'warehousing'

THE floor trader banned from the stock exchange floor on Tuesday allegedly helped businessman William Cheng Kai-man 'warehouse' shares in 1988, according to a ruling by the Securities and Futures Commission (SFC) takeover panel.

Action against her has been delayed as a result of long and expensive legal challenges mounted by others, which are continuing.

The most recent annual review of the SFC says that Geraldine Wong Pui-ching was allegedly involved in 'unusual share trading' at the time Mr Cheng took a 34.5 per cent stake in Shun Ho Resources.

Ms Wong at the time was a floor trader for brokerage K S Kam and Co, a role which yesterday came to an abrupt halt following joint action by the SFC and stock exchange.

The SFC said Ms Wong's trading helped Mr Cheng take control of Shun Ho without making a general offer to shareholders.

A general offer could have cost him another $50 million.

In October, 1993, the takeover panel said: 'Mr Cheng was acting in concert with Ms Wong to consolidate control of Shun Ho in November, 1988.' The battle between Mr Cheng and the SFC over the fairness of the tribunal's decision meant that no rulings have been enforced, and appeals made by parties involved in the original decision have not been processed by the takeovers appeal committee after nearly two years.