HONG KONG, Sept. 11 Kyodo

A senior Hong Kong government official apologized to the public Wednesday for the recent fiasco over a controversial proposal to de-list low-priced companies from the stock exchange that have caused heavy losses to small investors.

Secretary for Financial Services and the Treasury Frederick Ma offered his apology amid mounting public pressure on him to take the blame for the fiasco.

''I know this incident affected many investors and caused a lot of concerns. I feel deeply sorry. Here, I solemnly apologize to the public,'' said Ma who then bowed in front of media cameras.

The incident saw HK$10.91 billion (US$1.39 billion) wiped from the market capitalization of the so-called penny stocks on July 26 as the market reacted strongly to a proposal by the Hong Kong Exchanges and Clearing Ltd. (HKEx) to cancel listings of companies trading below HK$0.50 for 30 straight days.

Although Ma was not faulted by a government-appointed panel of inquiry in its Tuesday report on the fiasco after a six-week probe, many local politicians and some media demanded the government official shoulder responsibility and offer a public apology.

Ma, who assumed his position just last July under the government's new political accountability system, has been criticized for trying to dodge responsibility as he oversees the financial sector of the territory.

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