3.
It is also worth noting that the International Stock Exchange and the Bank of England met behind close doorsto discuss the implications of the closure of the SEHK and strong concern was shown at the time. City perception is at Annex I.
Industry
4.
Details of
which has contacts The Industrial Promotion Office J with a broad range of British industry, particularly those companies interested in the possibility of setting-up in Hong Kong (which is the area of most interest to Hong Kong), has This not discerned any reaction at all to the SEHK closure. is not surprising. Few industrialists are interested in securities markets in their professional capacities and virtually no potential industrial investors in Hong Kong are interested in raising equity on the SEHK.
Retail Trade
5.
The stock market crash has not adversely affected levels of retail trade in the UK, and none of the major retail groups has revealed any plans to reduce levels of Hong Kong buying.
6.
Certain luxury commodities such as fur are expected
to experience short-term dislocation although any serious on-going problems will not be fully evident until the tourist season begins in 1988.
7.
The closure of SEHK has no direct impact on the UK retail sector and there has not been any discernible reaction from UK retailers. The weak Hong Kong currency could in fact work in their favour. No importers have reported any cancellations of orders to Hong Kong.