Hong Kong has been resolved following a local court ruling.

The Bermuda Supreme Court issued an order on Tuesday giving Chinese Estates permission to withdraw a scheme that would have allowed brothers Joseph and Thomas Lau to buy the 50.4 percent stake in the property company it did not already own.

Shortly after the judgment was made, Chinese Estates duly withdrew its plan much to the jubilation of many minority shareholders who were in uproar over the planned deal.

In the past, the Lau brothers, described as corporate raiders, have launched a series of controversial bids through their company Evergo International Holdings and small shareholders have frequently complained about their tactics.

Because both companies are incorporated in Bermuda, the deal, under which Evergo would have issued new shares and warrants to Chinese Estates shareholders but paid no cash, needed Bermuda court approval.

Attorney Mr. Jerome Dill, of Appleby, Spurling, and Kempe, who acts for Chinese Estates in Bermuda, said yesterday he was not instructed to comment on the matter.

The deal was effectively blocked by Hong Kong's market watchdog, the Securities and Futures Commission (SFC).

SFC executive director Mr. Ermanno Pascutto said investigations into a shareholders' meeting which approved the deal revealed strong grounds for concern about the fairness of the vote.

Mr. Pascutto said the boards of Evergo and Chinese Estates had decided to drop the scheme after he had asked Bermuda's Supreme Court either to postpone a hearing to approve the deal, or to reject it outright.

"On March 31, 1992, the Supreme Court of Bermuda issued an order that Chinese Estates had leave to withdraw the scheme and the scheme was withdrawn,'' the SFC said in a statement.

Mr. Pascutto, who also chairs Hong Kong's Takeovers Committee, said the SFC was still investigating the shareholders' complaints.

"The SFC and the Takeovers Committee are continuing their enquiries and in due course may take action as they see fit in respect of the offer and in respect of the conduct of any person connected with these matters,'' he added.

Evergo and Chinese Estates shares had been suspended on the Hong Kong market before the SFC made its announcement.