36
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Wednesday, October 17, 1973
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It has been a year of exceptional difficulty for our exporters, our
business men, our bankers and developers.
Let me remind you of a few.
The rise and fall of our stock market was a sad and basically very
dangerous phenomenon which has left deep scars. It would have brought a less
robust economy to its knees. There was an immediate loss of confidence in
the market both local and international, and this is only gradually recovering,
I think all investors are agreed that in this instance laissez-faire has produced
excessive risks both for individuals and for Hong Kong, and I am sure that the
introduction of disciplines having the force of law is an essential step on
the road to full recovery.
I should like to express my thanks for the devoted work of the
Securities Advisory Council under the very able chairmanship of Mr. Y.H. Kan,
and also of Kr. Selwyn, the Commissioner for Securities. The draft legislation
which is the fruit of their labours will be placed before this Council very
shortly. No doubt Honourable Members will wish to look closely at the
details.
It would be surprising if there were not room for improvement in
such massive drafts. But with the safeguards that legislation can provide
for investors and with market values bearing a much more attractive price
earnings ratio, and with good prospects for growth in the economy, I think we
can look forward to brighter days ahead. It is clear from what has been said
to me in the City of London and by visiting financiers, that while the
phenomenon of the rise and fall was a temporary deterrent to overseas investors,
the fact that the economy has been able to weather such a shock has made a
very favourable impression.
I note