No “ double compensation” item in Apex Horizon’s trading contract.

Cheung Kong canceled the partial selling of Apex Horizon Hotel unit. Some property agents who took part in the selling expressed, the market slumps recently, so it is believed that some of the buyers would like to cancel the trading and release by the chance. But it is still unknown that if some buyers would refused to cancel the trading and claim indemnity from Cheung Kong after consulting the legal advice. Cheung Kong issued a statement last night to express that, there was no item of “ double compensation” in the temporary or formal trading contract between the company and buyer. CSRC (China Securities Regulatory Commission) may apply for order to make the contract invalid. Cheung Kong’s statement pointed, the penalty interest base is P+2% according to the formal sale and purchase agreement. If buyer gets reasonable actual lost which related to law and besides related cost during cancellation of contract, the related compensation will be made after the lost proved. Payment from all the buyers (including buyers who did not sign the formal sale and purchase agreement or did not pay on time) will be refunded after signing the “ cancellation of contract”. Each buyer should contact their lawyer as soon as possible. According to the letter which was sent to all the buyers of Apex Horizon from Cheung Kong’s Pearl Wisdom Limited the day before yesterday, buyer must sign the “ cancellation of contract” which was sent along with the letter and return it in 10 days. PWL(Pearl Wisdom Limited) will refund all the payables which listed in “ cancellation of contract” before 30th May after Cheung Kong receives the “ cancellation of contract” signed by customers. If customer do not willing to cancel the “ cancellation of contract” and “sale and purchase agreement”, CSRC may enter a legal process in original suit court to apply order to announce the agreement invalid. Wu Chuang-ye, the senior executive president of Hong Kong Properties expressed, since the incident was sudden, the agent of the company started to contact buyers from the night before last night but just get in touch with some of them. He pointed, temporarily, some of the buyers accepted the arrangement because they willing to take back the cash seeing the current market situation is bad. But since the incident involved in a wide range, it is still unknown that if some buyers would refused to cancel the trading and claim indemnity from Cheung Kong after consulting their lawyer’s legal advice. He believed, the actual situation will not appear until a few days later. Credit Suisse: Hard to take “ luxury food” again. In fact, it is out of market’s expectation that Cheung Kong would willing to reach an accommodation with CSRC and canceled the trading under its former style and strong law team. Credit Suisse pointed on its issued reporter that, cancellation of contract affected Cheung Kong’s net asset value in slight degree, but they were surprised government’s continuously strong intervention. It is believed government was intend to issue message that land agent will hardly have chance to take “ luxury food” (Means lucrative business) again or means it will harder for land agent to earn super profit return in future. However, Credit Suisse will maintain Cheung Kong’s investment rating of “ Better than big market” at target value of HKD 152. Cheung Kong’s share price decreased slightly yesterday and had fell 1.1% at the most. It was HKD115.6 when closed with falling range of 0.7%.

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