WEDNESDAY, MARCH 25, 1987
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EFFECTIVE REGULATIONS VITAL FOR SECOND STOCK MARKET
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THE GOVERNMENT WOULD ONLY ALLOW THE SETTING UP OF A SECOND STOCK MARKET IF AND WHEN IT WAS TOTALLY SATISFIED THAT THERE WOULD BE AN EFFECTIVE REGULATORY FRAMEWORK WHICH ADEQUATELY PROTECTED INVESTORS, THE FINANCIAL SECRETARY, MR PIERS JACOBS, SAID THIS (WEDNESDAY) EVENING.
MR JACOBS SAID AN IDEA TO WHICH THE UNIFIED STOCK EXCHANGE, WHICH OPENED LAST APRIL, HAD BEEN DEVOTING MUCH ATTENTION WAS THE PROPOSAL TO SET UP A SECOND MARKET.
HE WAS SPEAKING AT A PRIZE PRESENTATION CEREMONY OF AN ESSAY COMPETITION ORGANISED JOINTLY BY THE UNIFIED STOCK EXCHANGE AND A LOCAL NEWSPAPER.
MR JACOBS SAID: THE CREATION OF A SECOND MARKET HAS IN MANY COUNTRIES BEEN OF SIGNIFICANT VALUE IN SPREADING THE SHARE-OWNING HABIT AND IN HELPING ENTREPRENEURS TO RAISE ADDITIONAL CAPITAL TO EXPAND THEIR BUSINESSES, HE SAID.
HE SAID HE LOOKED FORWARD TO READING THE REPORT ON A SECOND MARKET BEING PREPARED BY AN EXCHANGE'S WORKING PARTY WHEN IT WAS PRESENTED TO THE GOVERNMENT LATER THIS YEAR.
+WE HAVE AT PRESENT AN ENTIRELY OPEN MIND ON THE SUBJECT.
+IF A CLEAR NEED FOR SUCH A MARKET IN HONG KONG IS IDENTIFIED AND AN APPROPRIATE REGULATORY FRAMEWORK CAN BE DEVISED, I SEE NO REASON WHY A SECOND MARKET SHOULD NOT BE ESTABLISHED.+
MR JACOBS SAID HE WELCOMED THE CARE AND ATTENTION WITH WHICH THE SUBJECT WAS BEING RESEARCHED BY THE EXCHANGE'S WORKING PARTY.
IT WAS PARTICULARLY IMPORTANT THAT +CAREFUL ATTENTION IS GIVEN
TO THE PROPOSED REGULATORY FRAMEWORK, + MR JACOBS SAID.
+THERE NEEDS TO BE A CLEAR IDENTIFICATION OF THE WAY THE MARKET WILL OPERATE.
+THERE MUST BE ADEQUATE CAPITAL REQUIREMENTS AND SURVEILLANCE AND MONITORING SYSTEMS.
+THERE MUST ALSO BE ADEQUATE MEASURES OF PROTECTION FOR THE INVESTORS.+
THERE WAS..
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