FRIDAY, SEPTEMBER 16, 1983
3
HE MENTIONED THREE FACTORS FOR THE CONTINUED GROWTH OF FOREIGN CURRENCY DEPOSITS THIS YEAR:
* THE INTEREST RATE DIFFERENTIAL HAS GENERALLY BEEN IN
FAVOUR OF U.S. DOLLAR DEPOSITS.
* A LARGE PART OF THE INCREASE IN FOREIGN CURRENCY DEPOSITS
APPEARS TO HAVE REPRESENTED SWAP DEPOSITS, WHICH HAVE NO EFFECT ON THE EXCHANGE RATE AND SHOULD FOR ANALYTICAL PURPOSES BE REGARDED AS HONG KONG DOLLAR DEPOSITS.
*
AS FOREIGN CURRENCY DEPOSITS ARE REPORTED IN THEIR HONG KONG DOLLAR EQUIVALENTS, PART OF THE INCREASES IN FOREIGN CURRENCY DEPOSITS REFLECTS THE VALUATION EFFECT OF A WEAKER HONG KONG DOLLAR,
SIR JOHN REPORTED THAT THE GOVERNMENT WAS CONTINUING TO DISCUSS POSSIBLE NEW MEASURES TO IMPROVE ITS CONTROL OF MONEY SUPPLY.
+THE DIFFICULTIES REMAIN CONSIDERABLE, AND DISCUSSION CANNOT YET BE TAKEN TO MEAN THAT A QUICK CONCLUSION IS IN HAND,+ HE ADDED.
ON THE MONETARY SECTOR, SIR JOHN SAID THAT THE PROBLEMS EXPERIENCED IN THE REGISTERED DEPOSIT-TAKING COMPANIES SEGMENT AT THE BEGINNING OF THIS YEAR, LEADING TO THE REVOCATION OF SEVERAL REGISTRATIONS, APPEARED TO HAVE SUBSIDED.
+I BELIEVE THAT THE THREE-TIER STRUCTURE GIVES BETTER PROTECTION FOR DEPOSITORS AND A SOUNDER MONETARY SYSTEM.
+THE MAINTENANCE OF A STABLE AND CREDIBLE FRAMEWORK WITH PROPER LEGISLATIVE DISCIPLINE IS IMPORTANT TO THE CONTINUED DEVELOPMENT OF HONG KONG AS A MAJOR INTERNATIONAL FINANCIAL CENTRE,+ HE STRESSED.
TO FURTHER THIS OBJECTIVE, THE BANKING AND DEPOSIT-TAKING COMPANIES AMENDMENT BILLS WERE INTRODUCED TO THE LEGISLATIVE COUNCIL LAST MONTH, WITH SOME OF THE AMENDMENTS FLOWING FROM- RECENT EXPERIENCE.
+THEIR OVERALL THRUST, HE SAID, IS TO PRODUCE AN IMPROVED AND SOMEWHAT TOUGHER REGULATORY ENVIRONMENT FOR REGISTERED DTC'S, WITH SOME ASSOCIATED CHANGES FOR LICENSED DTC'S AND, TO A LESSER EXTENT, BANKS.
+ IF NECESSARY, FURTHER MEASURES WILL BE INTRODUCED. HAVE NO DOUBT OF MY DETERMINATION,+ SIR JOHN SAID.
ON THE REAL ESTATE SECTOR, HE NOTED THAT IN GENERAL TERMS, THERE IS AN OVER-SUPPLY OF FINISHED PROPERTY, REFLECTING +WITH THE WISDOM OF HINDSIGHT A DEGREE OF BAD PLANNING AND MARKETING IN THE PAST BY SOME SPECULATIVE DEVELOPERS AIDED OF COURSE BY THOSE WHO FINANCED THEM.+
/DEMAND HAD