Hong Kong Police Make Fourth Arrest in Exchange Probe

Hong Kong police arrested a fourth man in its probe of Hong Kong Mercantile Exchange Ltd., widening a case begun by the Securities and Futures Commission for suspected irregularities in financial affairs.

Police arrested a 60-year-old man yesterday, identified only by his surname Zhu, on suspicion of possession of false instruments, according to the Police Public Relations Branch. Three others were arrested the day before in the same probe.

HKMEx surrendered its trading license this month after failing to attract sufficient trading revenue to support its operations. Barry Cheung, the chairman of HKMEx who is a member of Hong Kong Chief Executive Leung Chun-ying’s Executive Council, took a leave of absence from his public positions because of the investigation.

The SFC referred the case to the police’s Commercial Crime Bureau as it said “the suspected irregularities are serious ones,” according to a May 21 statement. The three people arrested earlier aren’t current or former employees of HKMEx, Cheung said yesterday. He hasn’t been accused of any wrongdoing.

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