Secretary for Security Ambrose Lee said yesterday that there is no evidence suggesting that the spreading of rumors about Bank of East Asia (BEA) earlier this week was a syndicate crime.

Lee urged members of the public not to maliciously try to harm the financial stability of Hong Kong, and he warned that those who intentionally spread untrue information may be subject to criminal prosecution.

Speaking to reporters after the Fight Crime Committee meeting, Lee said: "The police have already activated their super computer to help in the investigation. ... We are seeking whether we can get some clues with the super computer. But so far, there is no information suggesting that it was a syndicate crime".

He admitted that the investigation will be difficult, citing the vast volumes of information exchanged over the internet and SMS messages involving several million mobile phones.

BEA customers were lined up outside the bank's branches on Wednesday to withdraw their deposits after text messages flashed across the city warning that the bank was financially unstable as it held a large number of assets linked to Lehman Brothers and AIG.

Lee stressed that the government won't tolerate community members affecting the financial stability of Hong Kong by spreading rumors.

When asked whether individual community members will be prosecuted for forwarding the message to others, Lee said each case will be handled differently.

But he added that intentionally spreading an untrue message is a criminal offence.

Lee urged the public to report to police and banks if they receive suspicious messages.

Legislator-elect Samson Tam, representing the information-technology sector, said tracing the source of a mobile phone text message is difficult.

"The police need to cooperate with mobile phone service operators," he said. "But the legal ground of the cooperation may not be strong in this case, as it is not an investigation tracing the source of obscene material."

Tam added that the investigation will be even more difficult if the text message is sent from overseas or by mobile phone users with value-added cards, who have not registered their personal information with a mobile phone operator.

Savers calm down

Panicky savers gradually calmed after government officials and tycoon Li Ka-shing threw their weight behind the bank.

Li was confirmed to have bought BEA shares with his personal money, while the Hong Kong Monetary Authority injected HK$3.88 billion into the banking system yesterday.

"I believe in the bank. These people are crazy," said Richard Wong, a manager at an electronics firm, as he walked past a queue outside one branch.

"They just do not have any knowledge about it. I have a lot of money in this bank, but I will not be taking it out. They are just some people who do not understand the situation."

AFP contributed to the story

(HK Edition 09/26/2008 page1)