SEHK's initiative as a sign that both the authority and the participants in the
the markets are working together to bring about early improvements to the local securities industry. The move is also likely to be received by the general public as
positive a
indication
Government's of determination to bring about early implementation of the SRC recommendations. The overseas financial communities (e.g. London, New York), and those overseas brokers and investors who are major players in the Hong Kong market may however prefer the Government to impose constitutional changes which strictly follow the SRC recommendations
on the SEHK. The
only dissenting note has come from the Hong Kong Stock Brokers Association which represents some 40% of the small. brokers. Not surprisingly, they have expressed reservations features which would tend to reduce their
over
those
influence.
Publicity
16
Subject to Members' approval, the Financial Secretary will inform the SEHK of the Government's views at paragraph 2. As the Management Committee of the SEHK intends to announce their initiative in the late afternoon of 28 June when formal letters calling for the EGM on 20 July will be issued, we would release the press statement at Annex D either later that day or the following morning.
(The Secretary for Monetary Affairs, Mr J.C.K. YAM, the Deputy Secretary for
for Monetary Affairs, Mr B.C.L. LAM and Deputy Crown Solicitor, Mr 8. Clancy, will attend for this item.)
25 June 1988
(SRC 1/4/2(C)/88)
COUNCIL CHAMBEF