Cheung Kong’s hotel suite sales ruled unlawful

Cheung Kong Holdings has canceled the sales of hotel suites in its Apex Horizon project after Hong Kong’s securities regulator found the deal unlawful, the South China Morning Post reported. An investigation by the Securities and Futures Commission found Cheung Kong to be involved in a “collective investment scheme”, but had not filed the proper regulatory disclosures. The project had drawn prior scrutiny because it used a legal loophole to help buyers avoid paying taxes on the sales of residential units, by listing the units for sale as hotel rooms.