1
(0029D)
CONFIDENTIAL
Stock Exchange Closure
Assessment of Impact on Hong Kong's Image Overseas
Summary
Hong Kong's image overseas suffered as a result
of the decision to close the stock exchange for 4 days
during the October crash. The seriousness and longevity
of the damage can be substantially improved if a
comprehensive package of realistic reform measures is
recommended by the Securities Review Committee and is seen
to be acted upon promptly and thoroughly.
Background
2.
On Friday, 16 October, Wall Street registered a
sharp fall. On Monday, 19 October, when the Hong Kong
market opened, the Hang Seng Index fell by more than 400
points (more than 10%). Later the same day after the Hong
Kong market had closed, the Dow Jones Index fell a record
508 points. In the early hours on Tuesday, 20 October, HK
CONFIDENTIAL