DIRECTORS at Yanion International Holdings have been censured for their role in maintaining false markets in company shares during the listing period in October 1991. The Standard Chartered Asia sponsored, managed and underwritten listing involved the offering of 75 million shares at $1 each including a one-for-five issue of warrants. Under the public censure, issued yesterday, chairman Leung Wah-chai with directors Madam Butt Wing-han and Leung Tai-shing were named for breaching stock exchange listing rules. The exchange listing committee concluded two individuals acted on behalf of the directors and dealings by these individuals from the time of the listing were controlled by the directors. It was also concluded that these individuals bought shares in the company. Companies registered in the Virgin Islands were apparently involved in the share dealing. The named directors broke listing rules demanding they avoid the creation of a false market in the company's shares following the flotation by failing to release information which might have been expected to materially affect company share trading activity. In the exchange statement, two rule breaches were cited: failing to ensure an open market existed in the company's shares; and failing to take the necessary steps to avoid a false market being created in the company's shares. Since the listing of the company's shares, the stock has been a major under-performer, coming in 92 per cent under the Hang Seng Index - having fallen 83 per cent against a rise in the index of around 109 per cent over the same period trading relative, indexed performance, to the end of November this year. The Bloomberg data shows the stock has under-performed the index this year by 48 per cent, falling 63 per cent against 31 per cent from the index. At the time of the offering the subscription, raising a net $67.6 million, was reported to have been 6.43 times subscribed. Yanion is the most recent company to be cited in breaches of listing rules involving the apparent creation of false markets.