The likelihood is growing the the clients of brokers Ming Fung and CA Pacific will receive only token compensation from the liquidation of the collapsed financial firms. Both groups are facing substantial shortfalls as a result of the slump in the value of the stock they hold, according to sources. Ming Fung clients' claims to shares amount to $290 million compared with the $44 million in stock held on behalf of clients at the end of June, they said. However, the shortfall could have been widened further as the value of the stock is likely to have fallen dramatically since June, the sources said. The claims to shares represented almost 88 per cent of $330 million in outstanding claims against Ming Fung to date. 'Given the substantial discrepancy in the stock, Ming Fung clients will have to count on the stock exchange compensation fund,' one source said. The Government, which is dealing with a compensation package for CA Pacific Group, is working on arrangements for other failed brokerages, including Ming Fung. However, CA Pacific clients probably will not be able to receive any money from the liquidation until the second half of next year, according to liquidators Denis Ho and Jan Blaauw of Coopers and Lybrand. The liquidators said CA Pacific faced a $500 million shortfall from the $1.4 billion of securities supposed to be held by the companies on behalf of clients. Ming Fung went into liquidation in May after the Commercial Crime Bureau (CCB) arrested majority shareholder and managing director Chan Kwong-hung in connection with the alleged theft of clients' funds to cover loss-making positions in his personal futures trading. Ming Fung had four flagship companies including the stockbroking arm, Chark Fung Securities, futures trading arm Winton Commerce, leveraged foreign-exchange company Ming Fung Bullion, and its margin-financing company, Kee Fung Sing International Finance. The group's assets include eight licences, three for the stock exchange. The sources said the CCB's inquiries into the allegations had reached an advanced stage and further action was planned against the parties concerned within a month. They said initial investigations revealed 'a number of loans' were transferred from the group's accounts to people close to the firm. There were also indications that some senior Ming Fung staff sold clients' stock without approval.