WEDNESDAY, JULY 23, 1980
5
HOWEVER, HE ADDED THAT MEMBERS OF THE CHINESE GOLD AND SILVER EXCHANGE SOCIETY WHO TRADE ON THE SOCIETY AS MEMBERS OF IT, WILL CONTINUE TO BE EXEMPT FROM THE NEED TO REGISTER.
THOSE WHO CONTINUE TRADING UNREGISTERED WILL FACE PROSECUTION AS UNREGISTERED DEALERS, THE MAXIMUM PENALTY FOR WHICH IS A FINE OF $50 000,+ MR JEAFFRESON WARNED,
TURNING TO THE CONTROL OF TRADING PRACTICES, MR JEAFFRESON SAID THAT IT WOULD BE DONE BY PROPOSING PROVISIONS SIMILAR TO THOSE IN THE SECURITIES ORDINANCE TO ENSURE THAT DEALERS MUST MAKE AVAILABLE TO CUSTOMERS PROPER CONTRACT NOTES AND PARTICULARS OF EVERY TRANSACTION, AND THE HAWKING OF FUTURES CONTRACTS GENERALLY MUST BE PROHIBITED.
A CONTRAVENTION OF THE REQUIREMENTS WOULD MAKE A PERSON LIABLE TO A FINE OF $10 000 AND SIX MONTHS' IMPRISONMENT, HE SAID.
DEBATE ON THE BILL WAS ADJOURNED.
ONE EXCHANGE BETTER THAN FOUR
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THE GROWTH OF LOCAL AND INTERNATIONAL CONFIDENCE IN HONG KONG AS A SECURITIES AND FINANCIAL MARKET HAS BEEN HAMPERED BY THE PRESENCE OF FOUR STOCK EXCHANGES, THE ACTING FINANCIAL SECRETARY, THE HON D.G. JEAFFRESON STATED TODAY (WEDNESDAY).
HE WAS MOVING THE SECOND READING OF THE STOCK EXCHANGES UNIFICATION BILL 1980.
MR JEAFFRESON SAID THERE WERE THREE PARTICULARLY UNSATISFACTORY FEATURES IN HAVING FOUR EXCHANGES - THE FACT THAT THEY COMPETE TO ATTRACT ADDITIONAL COMPANIES WHICH TENDED TO LEAD THEM TO ADOPT A FLEXIBLE INTERPRETATION OF THEIR OWN LISTING RULES. THAT THE GOVERNMENT HAD GREATER DIFFICULTY IN REGULATING THE CONDUCT OF MEMBERS OF THE FOUR EXCHANGES THAN IT WOULD IF THERE WERE ONLY ONE EXCHANGE, AND THAT ONE EXCHANGE COULD BE RUN MORE EFFICIENTLY AND ECONOMICALLY THAN FOUR EXCHANGES.
+OBVIOUSLY, MR JEAFFRESON SAID, THE ANSWER LIES IN
UNIFICATION,
+AS WELL AS RECTIFYING THE THREE UNSATISFACTORY FEATURES TO WHICH I HAVE JUST DRAWN ATTENTION, ONE MARKET WOULD BE LESS ERRATIC THAN FOUR, IN THAT BROKERS WOULD NOT BE ABLE TO INDULGE IN ARBITRAGE BETWEEN EXCHANGES, HE POINTED OUT.
+ IT WOULD ALSO PROVIDE A BETTER SERVICE IN THAT IT WOULD HAVE GREATER LIQUIDITY.
+AND WE THINK OVERSEAS INVESTORS, IN PARTICULAR, WILL FIND ONE EXCHANGE A GREATER ATTRACTION THAN THEY DO FOUR, HE ADDED.
/MR JEAFTRESON