How events unfolded

December 28, 2000: The idea of addressing problems associated with penny stocks is first suggested to the Financial Services Bureau by the Securities and Futures Commission.

July 25, 2002: Hong Kong Exchanges and Clearing announces proposal to delist stocks priced below 50 cents for 30 consecutive days.

July 26: Stock market loses more than $10 billion after investors rush to dump their penny stocks causing stock prices to plummet by 20 to 90 per cent.

July 28: The exchange puts the proposal on hold.

July 29: Some of the penny stocks rebounded by up to 85 per cent. Financial Secretary Antony Leung Kam-chung says the exchange might not have thoroughly thought through the proposal. It may also have under-estimated the market reaction. He said: 'we will review if anyone should be held responsible.'

July 31: Mr Leung appoints a two-member investigation team to look into the affair.