3
FRIDAY, NOVEMBER 20, 1987
MADE
BETWEEN THE
FINANCIAL FUTURES
TO
GAMBLERS,
REFERRING TO COMPARISON MARKET AND A CASINO, AND THE COMPARISON OF PARTICIPANTS MR NENDICK SAID THAT IT WAS IMPORTANT NOT TO LOSE SIGHT OF THE FACT THAT THERE WOULD ALWAYS BE SPECULATORS OR RISK-TAKERS IN ANY FUTURES MARKET OR IN ANY DEVELOPED FINANCIAL MARKET ACROSS THE WORLD.
"HONE TONG FUTURES MARKET IS NOT UNIQUE IN THIS. WITHOUT RISK-TAKERS, MANY BUCH MARKETS WOULD NOT HAVE SUFFICIENT LIQUIDITY TO BR VIABLE.
"THE IMPORTANT POINT IS TO ENSURE THAT ALL PARTICIPANTS FULLY RECOGNISK THE RISKS THEY ARE ASSUMING, AND CAN AFFORD TO BEAR THEM, HE SAID.
EARLIER, MR NENDICK PROVIDED A GENERAL SURVEY OF THE FINANCIAL MARKETS IN HONG KONG, WHICH, HE SAID, COULD CONVENIENTLY BE CLASSIFIED INTO THE STOCK MARKET, THE CAPITAL MARKET, THE INTER-BANK MARKET, THE FOREIGN EXCHANGE MARKET, THE GOLD MARKET, AND THE STOCK INDEX FUTURES MARKET.
ON THE STOCK MARKET, HE SAID THAT THE UNIFICATION OF THE FOUR STOCK EXCHANGES WAS A SIGNIFICANT MAJOR STEP IN HONG KONG'S DEVELOPMENT AS AN INTERNATIONAL FINANCIAL CENTRE.
ALTHOUGH INSTITUTIONAL INVESTORS AND PROFESSIONAL FUND MANAGERS WERE BECOMING INCREASINGLY IMPORTANT PLAYERS IN THAT
MARKET, THE SMALL INVESTOR CONTINUED ΤΟ HAVE A VERY SIGNIFICANT PRESENCE THERE, HE SAID.
THE CAPITAL MARKET, WHICH DEALT IN NEGOTIABLE DEBT INSTRUMENTS, SUFFERED A MAJOR SETBACK EARLIER THIS YEAR WHEN INTEREST RATES BEGAN TO RISE AND THE BANK'S MARGIN CAME UNDER PRESSURE.
MR NENDICK SAID THE GOVERNMENT WAS CURRENTLY EXAMINING PROPOSALS TO ATTRACT A WIDER INVESTOR INTEREST IN SUCH INSTRUMENTS.
THE INTER-BANK MARKET WAS A WELL ESTABLISHED AND ACTIVE MARKET USED BY BOTH LOCAL AND OVERSEAS INSTITUTIONS FOR THR BORROWING OF HONG KONG DOLLARS AND FOREIGN CURRENCIES.
AND FROM TIME TO TIME THE EXCHANGE FUND INTERVENED IN THE WERE HONG KONG DOLLAR INTER-BANK MARKET TO ENSURE THAT INTEREST RATES CONSISTENT WITH THE MAINTENANCE OF THE LINK BETWEEN THE U.S. DOLLAR AND HK DOLLAR, HE SAID.
AS FOR THE FOREIGN EXCHANGE MARKET, WHICH WAS OF CRUCIAL IMPORTANCE TO THE BANKING SECTOR, MR NENDICK SAID A NUMBER OF FACTORS HAD CONTRIBUTED TO ITS DEVELOPMENT IN HONG KONG.
/THEY WERE