THE Stock Exchange of Hong Kong said it had received strong support for guidelines introduced last month on property dealings in developing markets.
Executive director and head of the listing division Herbert Hui said to the Securities Journal: ''A vast majority of people with whom we have communicated have expressed their endorsement of our views.'' He said the number of inquiries from listed companies involving property deals in China had jumped as directors and controlling shareholders began to recognise the exchange's concern about compliance with the principles.
In July, the stock exchange and Securities and Futures Commission issued a statement reminding directors of listed companies of their fiduciary duties to companies and their shareholders.
One such duty requires directors not to take advantage of their company's commercial opportunities for their own benefit.
This would prevent a director from benefiting by injecting property into a company on his own account, particularly when the purchase price sharply exceeded the original cost.
The July statement also told investors to exercise caution when dealing in the shares of companies which have acquired or are planning to acquire property assets in developing markets.
