The announcement was about certain minority shareholders suing the com Para 2.2 Line 0.2 pany for refusing share transfers. It looks like a commercial dispute from first glance, but a closer look will find a statement that could turn the stock market upside down. The company stated that pursuant to the company's articles, it has two months to consider any share transfer lodged with the share registrar.

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Wait! All listed companies in Hong Kong adopt more or less identical articles Para 2.2 Line 0.2 and that means all share transfers of listed shares need the blessing of the listed company and can be easily delayed by the company for two months!

So next time, if you vote against any resolutions or do anything that annoys the controlling shareholder or the directors, be prepared that your shares might not be sold in the stock market any time you want. It is also fantastic news for all controlling shareholders, you can easily restrict the transfer of all minority shareholders for two months and any buy order will send the share price of your company rocketing.

And, of course, for all investors, this liquidity risk will also be your key consideration before you decide to put money in the Hong Kong stock market.

S K Wong