Quiet man seen as easy winner
THERE is growing disquiet among some Hong Kong stockbrokers that Stock Exchange of Hong Kong chairman Lee Hon-chiu is not doing enough to protect their interests.
But this is unlikely to stand in the way of the Hysan Development chairman being re-elected to the top exchange job tomorrow.
The ruling council - composed of lay members, brokers' representatives and exchange executives - is responsible for the 'management and control of the exchange', according to the stock exchange rules.
Six lay members were appointed to the ruling council yesterday, following Friday's election of four new broker representatives. Tomorrow, the 31-member council will meet to elect a chairman and two vice-chairmen.
The ruling council is likely to be a fairly non-confrontational body this year, following the surprise ousting of independent broker Syed Bokhary in Friday's election. Mr Bokhary has been one of the council's most outspoken members since he was first elected in 1995.
Few upsets are expected in the closed council meeting tomorrow. Mr Lee is expected to be re-elected for his second year as council chairman. Vice-chairmen John Seto Gin-chung of Wardley Financial Services and Hong Kong Clearing director Stephen Hui Chiu-chung could well be returned to their positions too.
The six lay members appointed yesterday have all been re-appointed from last year.
They include Shangri-La Asia deputy chairman and Kerry Holdings executive director Thaddeus Beczak, chairman of the Board of Education Moses Cheng Mo-chi, Fong Hup of auditors Kwan Wong Tan & Fong, KPMG partner Tim Lewis, Invesco chief executive Andrew Lo Tak-shing and Hsin Chong Construction Group deputy chairman Yeh V-nee.
A stock exchange spokesman said the appointments were arrived at through discussions with the Securities and Futures Commission. She was unaware of any other nominations for the positions.
The chairman's election tomorrow is being seen by many as little more than a formality. Chairmen typically serve their maximum of three one-year terms before standing down.
Mr Bokhary, speaking before Friday's election knocked him off the council, said the chairman should 'lead by example' and should be prepared to oppose the Government.
'As a representative of the industry, sometimes [the chairman] may be at odds to the Government line,' Mr Bokhary said.
Mr Lee has remained quiet on a number of issues confronting brokers in the last year, including the government market intervention and the enforcement of T+2 settlement deadline.
When Hong Kong Futures Exchange chairman Geoffrey Yeh Meou-tsen lambasted the Government's behaviour on the T+2 issue in September, Mr Lee said: 'The Stock Exchange has to support the Government in full.'
