27-APR-1992 14:44

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groups are said to be competing for the project, the German firm Siemens and a European-American consortium of GEC-Alsthom and General Electric.

HSBC WOOING SHAREHOLDERS

HSBC Holdings chairman, William Purves, and Midland Bank chairman, Sir Peter Walters, have begun the task of convincing Midland shareholders that a merger of the two groups is in their best interests.

international

On his arrival in London, Mr Purves described the HK$45 billion (L3.1 billion) bid as a positive story

story of growth and potential.

Mr

Commenting on the possibility of a rival bid from Lloyds Bank, Purves said a counterbid intent on reducing the size of Midland would create "just another building society". However, HSBC's offer would strengthen the City of London and help British exporters compete world markets.

on

TIGHTER AUDITING CONTROLS OVER BANKS

The government is to introduce legislation to tighten the monitoring of banks in Hong Kong.

The bill seeks to enable reporting by external internal control systems of banks.

auditors of the

Effective systems of internal control are essential for ensuring that that various legislative the business is prudently run and requirements are complied with.

are the

The current proposals to strengthen monitoring procedures result of a review conducted in consultation with the banking industry and the Hong Kong Society of Accountants.

MORTGAGE RESTRICTION TO CONTINUE

Local banks are set to maintain their 70 per mortgage lending

lending at least for most of the year, reports.

cent restriction

according to some

on

On third

There has been speculation the banks would ease the restrictions the amount they are prepared to lend to home buyers by the quarter.

was

Selway-Swift, indicated However, HongkongBank general manager, Paul the current policy appeared suited to the existing market and it unlikely there would be any relaxation in the third quarter.

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