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The government has made no such accusations against Li and has not said whether he will face any charges at all. But the authorities have moved to overhaul the exchange's management. Li had given up the title of chairman in December because of a rule limiting him to two consecutive one-year terms. Now he and his closest associates, including Sun and Tsang, have been excluded from the exchange's reorganized governing committee. Some Hong Kong traders were concerned about how the market would react to Li's arrest. Investors, however, seemed to applaud the government's crackdown. Last week the Hang Seng index rose 6.5%, to 2452.52, though it still stood nearly 40% below the peak it had reached before the crash.