Cheung Kong suddenly canceled the trading of Apex Horizon Hotel Units on last Monday because CSRC(China Securities Regulatory Commission) investigated and believed the trading plan was Collective Investment Scheme (CIS). The 10 days deadline which developer immediately informed all the buyers in legal letters had expired. Cheung Kong spokesman expressed yesterday, the progress of trading cancellation of Apex Horizon Hotel plan was going well. As a buyer, the International Executive Director of CITICS Lin Yi-ming pointed that, the arrangement of trading cancellation was smooth going. He did not lost on money and had took back the deposit, lawyer’s fee and about HKD 10,000 of interest.
There were buyers signing the “ Trading Cancellation” of Apex Horizon Hotel plan with Cheung Kong in succession recently. Lin Yi-ming, the International Executive Director of CITICS (Citic Securities) who had bought one 3 rooms unit of Apex Horizon Hotel at HKD 4.7 million expressed when accepting the interview that, he had signed the “ Trading Cancellation” with Cheung Kong the day before yesterday and had took back the deposit of HKD 0.94 million which was 20% of the price, HKD 10,000 of lawyer’s fee and about HKD 10,000 of interest which calculated at P+2% in 3 months. He pointed, buying unit of Apex Horizon was for renting in original plan and it was a pity to cancel the trading.
HKD 10,000 of interest was earned in 3 months.
He disclosed, buyers can make decision with Cheung Kong’s Woo Kwan Lee & Lo on three plans through their own lawyer according to Cheung Kong’s choices supplied to buyers of Apex Horizon Hotel plan. Thereinto, they include canceling “ Temporary Contract” and “ Purchase and Sell Contract” immediately, taking back temporary deposit which was 20% of the price immediately, HKD 10,000 of lawyer fee and interest which calculated at P+2% in 3 months. Secondly, some confirmed buyers can supply the evidences of confirmer lost, probable lost of default interest caused by the trading cancellation of the property which had been mortgaged to the bank by buyer to Cheung Kong’s lawyer for compensation. The last is buyers insist on finishing the trading within 6 months, but they may need to face the risk of CSRC applying to court for announcement of invalid contract through legal procedure on Court of First Instance. He chose canceling “Temporary Contract” and “ Purchase and Sell Contract” immediately in personal. Huang De-ji, the Executive Director of Research Department of Kingston Securities also signed to cancel the “ Temporary Contract” and “ Purchase and Sell Contract” days before with Cheung Kong.
Zhao Guo-xiong, the Executive Director of Cheung Kong did not response the compensation for confirmed buyers of Apex Horizon Hotel plan yesterday. However source told, many buyers had canceled the tradings. As for the buyers who had earned the profit from the confirming, Cheung Kong would compensate the first buyers for actual loss if evidence confirmed. But there was still no treatment for confirmer who had lost. In rough estimate, Cheung Kong’s involved lawyer fee, interest and confirmer compensation in this trading cancellation was from about HKD 20 million to HKD 25 million.
However, there were also some buyers did not cancel the trading. One buyer Miss Zheng expressed, Cheung Kong’s compensation was unreasonable because she had actual loss. But Cheung Kong needed evidence. She had not response to Cheung Kong yet. According what she knew, some buyers required at least double compensation.
Source told, Cheung Kong would still pay agency commission.
As for agency commission, source told, Cheung Kong planed to pay property agency who involved 2.7% of agency commission and commission of 1% already paid before. It is known that, Cheung Kong would pay the rest of the commission, but the actual commission rate and paying date are still uncertain.
