青教僑藏頁三第張七第

1984

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ECONOMICS (19)

KK WONG & L.T. CHAN:

MILL & DALE PRESS LTD.

The Stock Exchange

A stock exchange forms a part of the financial

market. It is a place." where

in

sele ng place,

that

market where

those desiring to buy existing securities are brought into contact with those who want to sell. A stock exchange has a limited membership and the members are permitted to trade securities with each other. Since only members are permitted to conduct business on the exchange, others who want to buy or sell in this way must employ members to act on their behalf, Regulations regarding stock exchanges include. The Stock Exchange's Control.

Ordinance 1973,

Securities Ordinance 1974. and the Protection of Investors Ordinance 1974. A permanent Securities Commision, with the Commisioner for Securities as its head, was set up. In 1976, the Securities (Amendment)

was passed and

The Securities.

(Stock Exchange Listing) Rules 1976, under the⠀⠀ Securities Ordinance, were put into effect. These rules ensure that a well run and regulated stock exchange wil1.-- perform its functions an smoothly.

1. Describe the economic fractions of stock exchanges.

Stock exchange

provides chances of investment for the. general public. It helps to mobilize the "idle” savings of the community to those firms which seek tó put them to productive uses. Through the facilities of the exchange numerous. small sums of money. can be pooled together.

to finance bigh projects which are beneficial to the community. Stock exchanges make it possible for an owner of securities to dispose of them if he so desires or to

convert his securities into cash necessary. Stock exchanges assist the capital market by waking securities more liquid and in this way encourage people to invest in them.

Stock markets are also a means to profit. making. They offer constant opportunities for the investors to make profits in the form of dividends or price gains. They can also provide capital for the government. By issuing bonds for sale in the stock exchange, the government caû raise funds for its projects e.g. for construction of the mass transit

日八十月二十年亥癸歷篾

railway, Often, the turnover of the stock

exchange indicates some extent the

performance of an

economy. In addition,

competition between.

the many buyers and sellers in a free

market will help to determine the credit rating which an enterprise deserves.

so that the more efficient and

promising enterprises.

can raise capital more readily and pay a lower rate of interest than the less

efficient enterprises. Furthermore, stock. exchanges can ensure the efficient use of loanable funds by those firm's which are. more competitive and efficient in their business. It is because investors usually put their money capital in those businesses which are high-yielding.

The Currency System of Hong Kong

In Hong Kong, coins of $1000 (gold coins), $5, $2, $1, 50 cents, 20. cents, 10 cents and 5 cents and currency notes of 1 cent denomination are issued by the govern→ ment, Coins are normally used in smaller transac- tions. The

(95%) of tajor part

total amount

of currency in Hong Kong consists of bank notes -- issued by two commercial hanks under the authority of the government -- the Hong Kong and Shanghai. Banking Corporation and the Chartered Bank. The Banknotes (paper money) are of $1000, $500, $100, $50, $10, $5, and the value of these hanknotes is fully backed by the Exchange Fund. Both the coins and the banknotes are legal tender în Hong Kong while the 1 cent notes are legal tender only for payment of any amount not exceeding one dollar.

WAH KIU YAT PO

month.

(4) Every bank must

submit an audited

financial report

monthly, quarterly

and annually to the Commissioner of Banking. Locally incorporated banks must have their annual balance sheets published in one local English and. one local Chinese newspaper.

(5) No banking business

can be conducted by. a company without obtaining a valid banking license from the government. Each bank is required to pay an annual license fee of HK$200,000, To open a branch, permission must le obtained and an annual license fee. of HK$10,000 must be paid for every single branch.

(2)

Outline the main effects on the economy of a rise in bank. interest rates on loans and deposits.

A rise in bank interest rates on loans and deposits will probably have the following main effects.

loans will be more expensive, and individuals and businessmen will then be less interested in borrowing money from banks;

thus investment will slow down and decrease. Consumers" demand will also fall as they will borrow.

less to purchase property, car etc; (3) production costs will

be higher because of the higher interests

loans.

Teocon

The Banking Ordinance.

In Hong Kong all bạnkg are required to act according to the provisions in the Banking Ordinance which was enacted in 1964 and åmended on many occasions As it exists today, the main features of the making Ordinance are: (1) A Commissioner of

to

Banking is appointed and given the power approve new bank branches, to exercise control and

supervision over the

operations of

licensed banks, to

inspect bank accounts

and to wind up any

}-export prichysmail han

rise and exports will drops as they become. less competitive în' overseas markets; (5) foreign capital will

be induced to Hong Kong while local capital is attracted to stay.

(6) there will be more

deposits în local banks;

(7) the growth of economy and transactions will slow down because of declining investment and consumption; (8) the prices of stocks

and shares may fall and speculation in

the Stock Exchange will be less.

歷史

(+^)

報日僑華

ended the age-old

monarchical system

government in China; historians may

exaggerate the

一期星

importance of the part ployed by revolution- ary leaders like Dr. Sun Yat-sen. Dr. Sun Yat-sen did play a part in bringing about the revolution but it was not as important as people thought.

The Ching Dynasty ended. We may say, a. that revolution-

aries overthrew it. b. that the weak A

dynasty collapsed itself.

In fact, both of these two processes were at work. But b. is more important than a

CAUSES FOR THE 1911 REVOLUTION DE

1. Coming of the

growing impedând.

The Westerners came to China” and opened her up since 1840. From 1895 to 1900, China was nearly partitioned by foreign powers. Many Chinese people

tried to save. Chinië. a. At first, they

thought they

could reform the Ch'ing Dynasty and make China strong again. However, the Self-Strengthening Movement (1862 1894) and the

Hundred Day Reform (1898) ended in. failure. This showed that reform seemed useless.. Then, some Chinese people tried to resist foreigners... by armed force. Au example was the Boxer Uprising (1900 - 1901). This method was equally- useless

More and more Chinese (especially learnt men) felt that to save China the Ch'ing Dynasty must be overthrown.

The need to modernize China-Limited reform. did not make China strong. Many people felt that China must follow the Western powers in establishing a government based on the people. Thus the Ch'ing Dynasty must be ended first.

REASONS FOR THE SUCCESS OF THE 1911 REVOLUT I ON This is different from general Causes of the revolution itself. When we speak of the causes¬

of the revolution, we are.

ARH expected to answer Wor

HISTORY (19)

bank considered to be Viola Wong Yuk-yue unsound, Also, there

is a Banking Advisory MILL & DALE PRESS LTD.

Committee with the Financial Secretary: as chairman to advise the Governor on matters relevant te bankinge (2) Every bank must have

a minimum paid-up capital of HK$10 million and build up its reserve until up its reserve until it is equivalent to the paid-up capital, Each bank is required to maintain a minimuADA of specified liquid

assets equal to 25% of the deposit liabilities of the bank in any calendar.

不隨禮柯多新彩g無報請遠 另報拜式采穎色任販就道 收附出印多雜華§歡訂近閱 費送版刷姿誌僑迎閱向戶

THE 1911 REVOLUTION This time we will learn about the 1911 Revolution in China. There are the se points to remember: 1. The revolution broke

out in October 10, 1911. But the Ch'ing Dynasty did not fall until early 1912.

2. The revolution was.

not well-planned. Revolutionaries

prepared for ***.

hurriedly, and most of them expected it to

be another failure,

Therefore the eventual success was a surprise. Because the revolution

there was a revolution. When we speak of the reasons (or causes) for.

the success, we are A expected to

answer

WIY the revolution succeeded în 1911 and not earlier. 1. Decline of the Ching Dynasty-As we pointed out last time, the Ch'ing Dynasty had been on the decline since the early 19th century, whe ther politically (weak control over

A socially

independent power of social leaders called scholar-gentry), economically (the government becoming poorer and poorer) and militarily (the government's armed

日十三月一年四八九一歷公年三十七國民華中

forces Le.coming weaker

and weaker). If there had not been the

coming of Westerners which stimulated reform and revolution perhaps a new dynasty. might have replaced the Ching Dynasty.

Foreign imperialism Chinese people wanted to save their country, The Ching Dynasty seened an anstacle- So people tried to overthrow it.

3. Effects of the Late Ch'ing Reform (1901 (1911) In the last

10 years of the dynasty, the Ching government attempted some reforms such as; a. sending students to

study abroad, for example, Japan.

But these students became dissatisfied: with the corrupt rule of the Ch'ing Dynasty (because of new ideas). Many of these students become revolution- aries aiming at: overthrowing the Dynasty. practice of constitutional

rule, which gave. a chance to local

provincial leaders

called scholar-

geutry to

establish indepen-

dent pover against

next day October 10%

It was a success,

Declarations of

independence by the provinces - The following groups of people should have come to the help of the Ching Dynasty even if Wuhan was in the hands of the revolutionaries: (a) officials (b) the army (c) scholar-gentry at local-provincal levels. BUT they did not. In fact, in the following 2 months or so, they declared their provinces independent from the Ching Dynsaty. This Formally put an end to the Ch1ing Dynasty.

CONCLUSION: COLLAPSE OF THE CHING DYNASTY

Revolutionaries (like Sun Yat-sen) provided a slight push (local smal scale revolts) against. the Ching Dynasty. Because the Ch'ing Dynasty was very weak (weak control over the

provinces) and because it

did not have supporters,

the 1911 Revolution was successful.

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the central govern-ADDITIONAL MATHEMATICS

ment.

military moderniza÷ tion, and the

creation of new armies, but this only led to the rise of regional armies loyal to regional leaders like Yuan Shih-kai and not to the central government. As you can see, the Ching Dynasty tried to reform itself, but the efforts only quickened its own downfall because the reforma led to forces that eventually tried- to overthrow the dynasty instead of gaving it.

4. The Chinese

Revolutionary movement. This was led by men like Sun Yat-sen and Huang Husing(). They tried many times to overthrow the Ching Dynasty.

EVENT LEADING TO THE 1911 REVOLUTION

1. New army in the Wuhan

The army was

areas

part of the Late Ching Reform. But many soldiers and officers were influenced by revolutionary ideas. and were not loyal to the Ch'ing government. They set up revolutionary organizations, one of which was called Literary Society. The Literary Society prepared a revolt in Wuhan, but on October 9, 1911, the govern ment knew about the plan, because while testing the revolutionaries accidentally exploded a bomb. The

revolutionared

that further delay would lead to their

being captured by the government, so they started a revolt the

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S.F. Ko

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Paper I, Section Exercise 10

1. Find dy if

where a is constant;

By means of a suitable substitution, evaluate

the integral

cosedo

gine

The line joining (5,0) to (10cos0,10sine) is divided internally in the ratio 2:3 at P(x,y). Find cose and sine in terms of x and y respectively. If ✪ varies, prove that the locus of P is circle, and write down its centre and radius.

Find the co-ordinates of the point at which the tangent to the

32 curve yax −x -x+1 at the point (-1,0) meets the curve again.

5. Express the following

in the form xiy and hence find its modulus and argument

(cos✪+isine) cosp-ising

For what values of a so that the roots of the equation

2

2

3x-38x+á−a-3=0° are real?

7. The expansion, in

ascending powers of x, of (1+x)" becomes

4 147 12 6 12 18*

11

6'6

when certain values

are substituted for and n. Find these values.

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