Hong Kong Stock Market and Exchange Rate Fluctuations
Sharp fluctuations in the Hang Seng Index are more common than in
Western stock exchanges. In 1973 the Index fell from 1700 to little
more than 200. Of course uncertainty over the future from time to
time affects the market but there are other factors such as the
world recession, reduced growth forecasts, declining property
prices, high international interest rates and the strength of the
US$ dollar affect the market.
Declining confidence in Hong Kong
here, reflected in the Stock
I know there is genuine concern
Markets and the exchange rate, about what the future holds in store.
That is understandable and we are very conscious of this in London.
But there is an underlying strength in the Hong Kong economy which is reflected in indicators such as export performance and full
order books.
British sell-out
This sort of talk is harmful and untrue. I would like to say this to the Hong Kong people: We have been trying through the talks to obtain the best possible deal for Hong Kong which will preserve its
prosperity and stability. We will continue to do so. We are unwavering and united in our aim to seek a settlement which will be
acceptable not only to Britain and China but also to Hong Kong.
Mr Heath's visit to China
This was a entirely private visit. He carried no official message
to or from the Chinese.
Mr Heath's exchange with EXCO
There was a meeting between Mr Heath and EXCO members. This was an
entirely private affair.