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licensed casino.
There are always speculators or
risk-takers in any futures market, or for that matter, in almost any financial market; the Hong Kong futures market is not unique. The initiative for creating the market came
from potential users. The Government did not positively encourage the establishment of this market, but on the other hand we did not wish to frustrate its properly
regulated development. When the decision to establish this market was made, it was accepted that Hong Kong needed to keep abreast of developments in other financial centres and that an index futures contract would have positive impact
on investors' interest in the Hong Kong stock market, particularly through hedging the value of shares against
The disadvantages were unpredictable market movements.
also recognised, including the possibility of the investing public taking unwise risks and the possibility of manipulating the index. It was, however, the consensus view of all parties at that time that the advantages
outweighed the disadvantages.
le.
27.
It may be that, after recent events both here and overseas, people's perception of this type of market will change in a way or to an extent that the demand for a
futures market will diminish. Only time will tell.
It is
not for the Government artificially to create or suppress
the demand for it. The impetus for a market must come from
the potential users.
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