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Thursday, November 30, 1972
KOWLOON STOCK EXCHANGE RECOGNISED BY GOVERNMENT
The Governor in Council has approved an application for recognition
submitted by the Kowloon Stock Exchange.
The former order made under Section 2A(1) of the Companies Ordinance
to give effect to the Governor in Council's decision will be published
in the Government Gazette tomorrow (December 1).
The effective date of recognition of the Kowloon Stock Exchange
is November 28 and brings the number of recognised stock exchanges in Hong
Kong to four.
During a speech to the Legislative Council earlier this month,
the Financial Secretary, Mr. C.P. Haddon-Cave, said that under the bill
dealing with securities which he hoped to introduce into the Council within
a few months, only those stock exchanges approved by the Financial Secretary
would be allowed to operate in Hong Kong after the bill goes into force.
He continued: "I intend to approve only those which are recognised
for the purposes of Section 2A of the Companies Ordinance. It follows that
any exchange which is not recognised cannot continue to operate; and any
new stock exchange which may be established between now and the date of the
enactment of the Securities Bill will not be recognised."
"In other vorda "Mr. Haddon-Cave said, "it is our intention to
restrict the number of exchanges allowed to operate and this will be coupled
with a system of registration of all dealers."
He then concluded by reaffirming the government's view that there is
scope for improving the organisational arrangements and procedures of the
existing stock exchanges. "The Securities Bill is designed, among other
things, to achieve this, he said.
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