ROZANU
&
E. CONFIDENCE IN HONG KONG
HKB 020/14
16. HANG SENG INDEX
FILE
Camended
40
supps.
Lard Wyatt's' PQ)
Aware that Hang Seng index fell substantially on 5 June as
result of recent events in China, but picked up again since. [Index
has dropped 1043 points from 3267 points on 18 May. Dropped 582
points on 5 June alone, but by 7 June had recovered 139 points. 8 June is public holiday in Hong Kong].
But this does not reflect underlying strength of Hong Kong
economy.
17 WITHDRAWAL OF INVESTMENT FROM CHINESE BANKS IN HONG KONG
Aware of reports of large scale withdrawals earlier this week.
But understand situation has now stabilised. A matter for
individual investors and institutions.
18. WHAT IS HMG DOING TO REASSURE HONG KONG PEOPLE?
Have made it very clear that we shall continue to stand by Hong
Kong and by our obligations under Joint Declaration.
Will be consulting urgently with Governor to see what more can be done to reassure Hong Kong people.