Investor Presentaiton
Citic Pacific, Hong Kong.
■ On October 20, 2008, Citic Pacific issued a profit warning on
unauthorised leveraged forex contracts (on the Australian dollar
and linked to an iron ore mine) that could result in losses of up to
US$2 billion. Its parent, CITIC Group, had to cover its exposure.
CITIC Pacific senior management had become aware of the
problem on September 7.
■ Hong Kong's Listing Rules (13.09(1)) expressly require disclosure of
"material" information "as soon as practicable".
■ On October 22, the SFC announced that it had begun a formal
investigation into the company. This is still ongoing.
■ On January 2, 2009, Citic disclosed that its entire board of
directors was under investigation by the SFC.
■ The ICAC began an investigation on April 3, 2009, prompting
Larry Yung and Henry Fan to resign five days later. They were
replaced by Chang Zhenming, vice chairman of CITIC Group.
ACGA Presentation
HKCCA, May 6, 2009
14
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