Wang made the remark as part of a statement concerning the granting of credit on the part of the Bank of China (Hong Kong) Limited to the New Nongkai Global Investment Limited.

The Bank of China (Hong Kong) Limited is a publicly listed company registered in the Hong Kong Special Administrative Region, with BOK as its largest shareholder, Wang said.

In June 2002, the Bank of China (Hong Kong) Limited extended a bridging loan facility to the New Nongkai, and the actual amount of drawdown was 1.77 billion HK dollars, he said.

The outstanding balance of the principle of the loan is 740 million HK dollars, and the loan was granted in accordance with the internal risk management procedures of the Bank of China (Hong Kong) Limited and secured through a series of risk reduction prevention measures, he said.

In an effort to safeguard the assets of the Bank of China (Hong Kong) Limited and the interests of the Bank of China (Hong Kong) Limited's shareholders, the Bank of China (Hong Kong) Limited has pressed New Nongkai to repay the loan.

It has also obtained a court order from the High Court of Hong Kong, in order to receive and protect the business and assets of New Nongkai and its subsidiaries and to protect the interests of the Bank of China (Hong Kong) Limited, he said.

Based on available information, the New Nongkai loan will not have a significant adverse impact on the financial position of the Bank of China (Hong Kong) Limited, he said.

The Bank of China (Hong Kong) Limited's Board of Directors has attached great importance to the on-going investigation and to thedevelopment of risk management and an internal control system within the Bank of China (Hong Kong) Limited, he said.

It has decided that the Board's Audit Committee, which includes all four independent directors, should follow up on the issue, he said.

The committee will thoroughly examine the Bank of China (Hong Kong) Limited's credit extension procedures as well as its risk management and internal control, he said.

The Board of Directors has requested that the managerial staff of the Bank of China (Hong Kong) Limited actively assist the committee, he said.

He said that the BOK had taken note of recent media reports concerning Mr. Liu Jinbao, the former Vice Chairman of the Board and Chief Executive Officer of the Bank of China (Hong Kong) Limited, and potential difficulties related to a particular loan customer during his terms in Hong Kong and the mainland.

The BOK Head Office has also received complaints, and the issue is being investigated, he said.

As the largest single shareholder of the Bank of China (Hong Kong) Limited, the BOC firmly supports the local regulatory authorities' supervision of the Bank of China (Hong Kong) Limited, and will, as always, support the Bank of China (Hong Kong) Limited in its efforts to build good corporate governance, improve internal control, standardize business procedures to seek sound and steady development and fulfill its commitment to its shareholders, he said.

(People’s Daily June 7, 2003)