Former Lloyd’s Chief Appointed to Head Stock Market Probe
HONG KONG (AP) _ Ian Davison, a former chief executive of Lloyd’s of London, was appointed to head a committee examining the operation of the British colony’s stock and futures exchanges in the wake of the recent stock market turmoil, the government said Wednesday.
Financial Secretary Piers Jacobs told reporters that the committee would review the constitution, powers and management of the stock and futures exchanges as well as the government’s securities and commodities trading commissions.
The Hong Kong stock exchange was the only major market to suspend trading during the global market crisis last month. Market officials have been questioned over whether their decision to halt trading weakened Hong Kong’s credibility as the world’s third major financial center, behind New York and London.
Trading on the Hong Kong stock market was resumed on Oct. 26 after a four- day suspension, during which the government and international banks established a $512 million support package to prop up the futures exchange.
Davison is currently adviser to the international accounting firm Arthur Andersen and Co. and a director of the British Midland Bank.
Other members of the committee are Peter Poon, a member of the Legislative