Investor Education & Communications

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FUNCTIONS
9.1	The Investor Education & Communications Unit (previously known as the Investor Education Unit) has two functions : (a) To implement educational initiatives to explain to the investing public the operation of the regulatory framework, the protections available within it, and the role investors should play to safeguard their own interests when investing. (b) To handle investor enquiries and complaints.
Publications
9.2	In December 1997, the Unit launched two additional investor education brochures which focus on specific areas of interest:
	l	"What Every Stock Investor Should Know" aims to help retail investors understand some basic issues in stock investment, such as participation in initial public offerings and rights issues, the different types of corporate information available from listed companies, and their rights as shareholders such as in situations of takeovers and privatisations.
	l	"What Every Fund Investor Should Know" explains how the SFC authorises and monitors funds in order to protect investors, and examines the rights of fund investors in the event of a fund closure and merger.
9.3	These two new publications complement the original series of four booklets, issued last year, which are more general in nature. The first series includes:
	l	Your First Moves Towards Investing
	l	Choosing Your Broker or Financial Adviser
	l	The Importance of Monitoring Your Investments
	l	When to Pursue a Complaint
9.4	All publications have both English and Chinese versions. They are available to the public free of charge at the SFC and all 16 offices of the Consumer Council. Since January 1998, some of these brochures have also been distributed at investor seminars organised by the Stock Exchange of Hong Kong.
9.5	The contents of these publications are available on the SFC's website and on the fax-on-demand service run by Lipper Analytical Services Asia Corporation. The content of the booklet "What Every Fund Investor Should Know" has been published as a series in the Hong Kong Investment Funds Association column of the Hong Kong Economic Times.
Announcement in the Public Interest (API)
9.6	With the assistance of the Government Information Services Department, a TV API was launched on local television channels beginning the end of April 1997. The API, in both English and Chinese, features a cartoon-animated bull and advises investors to 'do their homework' and ask the right questions before investing. The API also informs viewers that the SFC's education brochures are available at the office of SFC and Consumer Council centres.
9.7	In mid-November 1997, two Chinese language APIs, entitled "Rumours" and "Maybe" were launched on local radio stations. These APIs emphasize that "It is unwise to trade on rumours" and "Be clear of trading procedures'' respectively.
Radio Programme
9.8	The SFC sponsored an RTHK radio programme series entitled "SFC Academy", comprising 20 three-minute episodes which aired on RTHK's Putonghua Channel from the end of March to April 1998. Through the lively dialogue of a university student and his professor, this series aims to cover various topics such as the history of the SFC and its mission, the role and function of various self-regulatory organisations in the market, and advice to investors on issues to consider when trading through their broker or participating in corporate finance activities such as rights issues.
Money World Asia'97
9.9	The SFC was a sponsor of, and participant in The Money World Asia '97 Exhibition, held from 23 -25 May 1997 at the Hong Kong Convention and Exhibition Centre, and organized by the Trade Development Council. The SFC booth featured the SFC's previously mentioned television APIs, SFC-sponsored documentaries produced by RTHK, website, charts and free publications, all dedicated to the theme "Helping You Invest Wisely". SFC representatives were also present to answer visitors' questions about the operation of the regulatory system and investors' rights and responsibilites.

Investor Enquiries and Complaints
9.10	Investors can call the SFC Hotline at 2840 9333 if they wish to check if their broker is licensed or if an investment product is authorised, or to find out more about the protection offered to them by the regulatory framework. Investors who have encountered market malpractice can either file a complaint on the Hotline, or submit it in writing.
9.11	During the year, the SFC received 5,381 enquiries and 858 complaints from the investing public, including a particularly high volume in January 1998 triggered by the collapse of Peregrine Investments Holdings and the CA Pacific Group. The subjects of enquiry were diverse, but it is clear that retail investors were increasingly concerned about their rights. Around 27% of the complaints required further assessment by other operating departments of the SFC, of which 17 cases were eventually passed to the Enforcement Division for investigation. The reason for non-action with the vast majority of complaints is because they either fell outside the SFC jurisdiction, or arose due to misunderstandings. After discussion with the SFC staff, complainants were usually able to resolve their problems with other parties.