1988-06-01 18:23 G. 1.S
Kong's
markets
by
issuers,
P.06/13
investors
and
intermediaries from outside the territory."
Hong
Kong
has
excellent economic fundamentals
it should
build on these in developing its stock markets.
four
We
things
managed well),
I £ this is to happen reforms are essential.
believe that Hong Kong should aim for
systemic stability (so that risks ate
orderly and smooth functioning markets (so that all the
systems operate properly), fair markets (so that there is
adequate disclosure to enable all parties to deal on an
equal footing), and, with all these, adequate protection
for investors.
In this the concept of effective risk management
It was this that failed in
is absolutely fundamental.
October threatening the systemic stability of the stock and
fetuses markets.
we
have
based
reform proposals
oa
self-regulation but as we say in para. 3.24 "We appreciate
that so-called self-regulation may appear to have failed in
Nevertheless, We continue to zacommend
Hong Kong.
practitioner-based
system as the best available to meet our
objectives for Hong Kong. We do so because we wish above
ali to avoid
the danger
of straight-jacketting
the