Bank of China (Hong Kong) Ltd: Investigation into Alleged Unauthorised Distribution of Assets

The Hong Kong Monetary Authority (HKMA) has last night been informed by Bank of China (Hong Kong) Ltd that two deputy chief executives of the bank are being investigated by Mainland judicial authorities in connection with alleged unauthorised distribution for personal purposes of certain funds belonging to the controlling shareholder of former constituent banks. According to the public statement issued by BOC Hong Kong (Holdings) Limited, its directors have been informed that the assets in question do not form part of the assets of the company, its subsidiaries or any of their customers.

BOC Hong Kong (Holdings) Limited has announced that the Audit Committee of its Board and the Independent Non-Executive Directors will immediately investigate these allegations and that meanwhile acting appointments have been made to ensure that the operations of the Group are not disrupted.

The HKMA has begun an investigation into the matter.

For further enquiries, please contact:

Thomas Chan, Senior Manager (Press), at 2878 1480 or
Jasmin Fung, Manager (Press), at 2878 8246

Hong Kong Monetary Authority
3 August 2004