2.9 NOV 1973
CHINA MAIL
One of the two English language afternoon newspapers. Circulation: 26,000.
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UK vital
to local
business strength
HONGKONG'S growing importance as a financial centre, although based on a complex of factors, has benefitted from the London connection.
This view is put forward in the current issue of The Bulletin. the monthly publication of the Hongkong General Chamber of Commerce.
"Proof of this is perhaps to be found in the fact that, with the obvious exception of Tokyo, the only other region in the Far East so far to have shown a comparable degree of development as a financial centre is another country with strong UK links Singapore,"
the article says.
The Chamber's article sets out to describe the financial links between Hongkong and the UK, and to show how Hongkong's financial strength relies in part on London.
Another UK link explored by the article is the role of the UK in providing finance for local industry. "This was facilitated by Hongkong's being a part of the Overseas Sterling Area thus providing an incentive to channel UK funds to it.
"This flow of funds helped in the development of our industry and the growth of our stock exchanges, as well as assisting in bringing to the Colony British banks and other institutions, whose expertise has helped in our development."
The ties between Hongkong and the UK are also evident in banking and insurance practices and London is still probably the world's number one insurance market.
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"Specifically, it is worth recalling that the insurance cover for the construction of the Cross Harbour Tunnel came basically from the UK ,and that this was secured at a time when, it is reported, no other insurance markets were willing to provide cover for such a risk."
The problem of Hongkong's reserves is complex and the Chamber sees few feasible alternatives at the present moment to keeping our reserves in London, the Bulletin adds.
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