MONDAY, NOVEMBER 10, 1986
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BILL WILL SEEK DISCLOSURE OF TRUE OWNERSHIP
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A NEW BILL TO PROVIDE FOR A GREATER DEGREE OF DISCLOSURE OF THE TRUE OWNERSHIP OF PUBLIC COMPANIES WILL BE PUBLISHED SHORTLY, THE FINANCIAL SECRETARY, MR PIERS JACOBS, SAID TODAY (MONDAY).
SPEAKING AT THE 17TH WORLD CONGRESS OF THE INTERNATIONAL ASSOCIATION OF FINANCIAL EXECUTIVES INSTITUTES, MR JACOBS SAID THIS WAS AIMED AT IMPROVING THE EXISTING REGULÁTORY FRAMEWORK, DRAWING IN PART ON THE EXPERIENCE OF OTHER INTERNATIONAL FINANCIAL CENTRES, SO AS TO AFFORD A GREATER DEGREE OF PROTECTION TO INVESTORS.
+THESE EFFORTS IN UPDATING OUR LAWS RELATING TO INVESTMENT ARE PARTICULARLY IMPORTANT GIVEN THE GROWING INTERNATIONALISATION OF THE SECURITIES BUSINESS AND THE PLETHORA OF NEW INSTRUMENTS WHICH CONTINUE TO BE INVENTED AND LAUNCHED UPON THE MARKET.
MR JACOBS POINTED OUT THAT HONG KONG'S FINANCIAL DEVELOPMENT HAD NOT BEEN ENTIRELY SMOOTH AND THE LAST FEW YEARS HAD WITNESSED DIFFICULTIES IN SOME LOCAL BANKS.
HE EXPLAINED THAT HONG KONG WAS NOT THE ONLY PLACE THAT HAD EXPERIENCED PROBLEMS IN ITS BANKING SYSTEM OVER THE PERIOD. +OUR PROBLEMS WERE PARTLY THE RESULT OF EXCEPTIONAL FLUCTUATIONS IN THE ECONOMY, AND A CONSEQUENTIAL SEESAW IN ASSET VALUES.+
+PERHAPS WE HAVE ALSO HAD MORE THAN OUR FAIR SHARE OF CASES WHERE MANAGEMENT WAS INCOMPETENT OR WORSE, HE SAID.
+BUT IN FACT ONLY A VERY SMALL PART OF THE BANKING SECTOR, WHETHER RECKONED IN TERMS EITHER OF ASSETS OR OF DEPOSITS HAS BEEN AFFECTED. THE SECTOR AS A WHOLE HAS BEEN AND IS SOUND AND HAS SERVED THE COMMUNITY WELL, +
MR JACOBS REITERATED THAT GOVERNMENT'S POLICY WAS TO INTERFERE AS LITTLE AS POSSIBLE IN THE FINANCIAL MARKETPLACE, EXCEPT IN THE INTERESTS OF THE OVERALL FABRIC OF THE SYSTEM, OR TO PROTECT THE NON-PROFESSIONAL PARTICIPANTS FROM EXPLOITATION.
THE MEASURES WE HAD USED HAD RANGED FROM THE DIRECT ACQUISITION OF TROUBLED INSTITUTIONS TO THE PROVISION OF LIQUIDITY ON A SHORT-TERM BASIS TO GIVE TIME FOR PERMANENT SOLUTIONS, AT NO COST TO GOVERNMENT, HE SAID.
MR JACOBS SAID HE BELIEVED THAT HONG KONG HAD NOW EMERGED FROM THE PROBLEMS OF THE PAST.
+THE BANKS IN GOVERNMENT OWNERSHIP ARE MAKING A STEADY RECOVERY TWO OUT OF THE THREE HAVE RETURNED TO PROFITABILITY AND WHEN THE TIME IS RIGHT THEY WILL BE SOLD TO THE PRIVATE SECTOR.+
/+THE INTEREST
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