Barry Cheung

Barry Cheung Chun-yuen, GBS, JP (Chinese: 張震遠, born 15 February 1958 in Zhucheng, Shandong, China) is a Hong Kong businessman. Cheung is a former Non-official member of the Executive Council of Hong Kong, a chairman of Hong Kong Mercantile Exchange (HKMEx), and former chairman of Urban Renewal Authority in 2007.

Cheung resigned from his official duties on 24 May 2013 amidst controversy and over the suspension of HKMEx by the securities regulator and allegations of possible irregularities at the exchange. Cheung is under personally unfrt criminal investigation instituted by the Anti-Corruption Committee of the Hong Kong Government, a committee Cheung once himself served on for allegedly receiving a $70M loan from a developer while he was Chairman of the Urban Renewal Authority. As reported on June 1, 2013 in the South China Morning Post. The government has since announced that Cheung is under police investigation for criminal misconduct..

Education and work

Cheung holds a Bachelor of Science degree in Mathematics and Computer Science from the University of Sussex and an MBA from the Harvard Business School.

Cheung worked for the management consultancy McKinsey & Company; he was also a member of the Central Policy Unit of the Hong Kong government in 1993. In 1994, he left McKinsey to become chief executive of London Stock Exchange-listed Fortune Oil, a commodity trading company operating in mainland China. The company fared well under Cheung's stewardship. It expanded into jet fuel supply at two airports. However, the Asian financial crisis in 1998 caused oil prices to fall by a third. In early 1999 Fortune announced a loss of US$59.9 million. It had to seek $20 million in extra funding. After the recapitalisation in 1999, Cheung left Fortune. In 2004, Cheung was appointed chief executive of HKSE-listed Titan Petrochemical, which invested in oil tankers; Cheung resigned in 2008.

Cheung was recruited by an employee at Heidrich & Stuggles to serves as a independent non executive director ("INED") for UC Rusal. Cheung's condition to go on UC Rusal's board was only if the IPO UC Rusal had listed for on the Hong Kong Stock Exchange was successfully completed. During Cheung's term as an INED for UC Rusal and his simultaneous Chairmanship and equity ownership of 56% of the HKMex, and serving as the campaign manager for CY Leung, Cheung divested 10% of the HKMex to controlled investment vehicle EN+ of the Russian billionaire Oleg Deripaska. Cheung did not resign at the obvious conflict of interest these transactions posed, but remained as an INED on UC Rusal's Board of Directors despite this financial connection and remained as a significant shareholder and Chairman of the HKMEx. http://www.rusal.ru/en/press-center/news_details.aspx?id=6677&ibt=13. This would appear to be a conflict of interest given Deripaska's EN+ vehicle was and remains a 10% interest in the HKMex. In addition, Cheung served briefly as chairman of Deripaska's aluminium company United Company RUSAL without resigning from his chairmanship of the HKMEx. He has also served as a non-executive director of Hong Kong life insurer AIA, and was chairman of the newly built Harrow International School in Hong Kong. In addition, Cheung serves as a director on Gateway Energy & Resource Holding, a joint venture vehicle between China Investment Corporation CIC, a Chinese government investment vehicle, and Washington D.C. based EIG Partners. http://www.chinastock.com.hk/ewebeditor/uploadfile/20121217100744107.pdf It is unclear that Cheung has resigned this position. http://webb-site.com/dbpub/officers.asp?p=1853815

Cheung was appointed to the board of the Urban Renewal Authority (URA) in 2001, and became its chairman on 24 April 2007. Cheung was an early backer of C Y Leung when the latter declared his candidacy for Hong Kong chief executive; Cheung managed the election campaign in 2012. He became an executive councillor in the CY Leung's first administration. The extension of his term as URA chairman in 2013, beyond the usual six year limit on holding the same post, was alleged by the Civic Party to be a political reward.

Cheung used confidential information gained in his position on the URA and released, without government approval and in violation of privacy protection regulation, the unlawful development by Henry Tang to his personal abode, then opposition candidate to CY Leung. Post election, it was discovered CY Leung committed equally illegal additions and improvements to his personal abode.

HK Mercantile Exchange

Cheung launched the Hong Kong Mercantile Exchange in June 2008 as a trading platform. He was the chairman and majority shareholder, with a 56% stake. The exchange has been persistently loss-making. Competitive pressure got worse upon HKSE's acquisition of the London Metal Exchange in the second half of 2012. On 22 May 2013, Cheung took a leave of absence from his official duties after HKMEx folded and after the Securities and Futures Commission found "serious" suspected irregularities there that resulted in a pgolice investigation and several arrests. Cheung has denied that the arrested persons were employees of HKMEx. Cheung resigned his RUSAL and AIA directorships following the announcement that he was under police investigation. He resigned from all his official positions, including his membership of the Executive Council and the URA, on 24 May 2013, when he became subject to a criminal investigation upon the collapse of the exchange. At a hearing in August 2014, businessman Leung Chi-hon and investor in CNQC International Holdings petitioned Cheung's bankruptcy due to the latter's inability to repay 4.7 million owing to him. The case has now been adjourned to 16 March 2015.