WEDNESDAY, MARCH 30, 1988
"CLEARLY, A REGIME BUILT AROUND A 14 YEAR HAD DIFFICULTIES IN COPING WITH THE PACE OF RECENT SAID.
"BUT THE EXTENT OF THOSE DIFFICULTIES APPARENT DURING THE HEIGHT OF THE BULL MARKET.
OLD ORDINANCE HAS DEVELOPMENTS, HE
11
WAS NOT IMMEDIATELY
EVENTS HAVE, HOWEVER,
"THE STOCK MARKET CRASH AND SUBSEQUENT SERVED TO SHOW UP WEAKNESSES IN THE EXISTING SYSTEM.
נו!
WHILE OBSERVING THAT THE COLLAPSE OF SHARE PRICES IN OCTOBER WAS A RESPONSE TO WORLD EVENTS AND NOT TO PROBLEMS IN HONG KONG'S OWN ECONOMY, MR JACOBS SAID RE-EXAMINATION OF THE MARKETS AND THE REGULATORY SYSTEMS WAS NECESSARY.
"THE SECURITIES REVIEW COMMITTEE WAS APPOINTED LAST NOVEMBER TO REVIEW THE MARKET AND REGULATORY SYSTEMS AND TO RECOMMEND CHANGES TO ENSURE THE INTEGRITY OF THE MARKETS AND TO PROTECT INVESTORS," HE SAID.
"THE APPOINTMENT OF THIS COMMITTEE IS AN INDICATION OF THE GOVERNMENT'S RESOLVE TO TAKE ALL NECESSARY MEASURES TO CONTINUE HONG KONG'S DEVELOPMENT AS A MAJOR INTERNATIONAL FINANCIAL Centre."
OF
LAW
THE
MR JACOBS ALSO NOTED THAT, IN RELATION ΤΟ THE PROTECTION SHAREHOLDERS IN HONG KONG, THE STANDING COMMITTEE ON COMPANY REFORM HAD RECOMMENDED THAT THERE SHOULD BE FULL DISCLOSURE OF BENEFICIAL OWNERSHIP OF SHARES OF DIRECTORS AND SUBSTANTIAL SHAREHOLDERS OF PUBLICLY LISTED COMPANIES AND OF THEIR SHARE DEALINGS.
ACTUALLY
"SUCH DISCLOSURE REQUIREMENTS WOULD REVEAL WHO CONTROLS A COMPANY AND THUS MAKE INSIDER DEALING AND CREEPING TAKEOVERS MORE DIFFICULT, HE SAID.
CONCERNED
JUDGING FROM COMMENTS RECEIVED FROM PROFESSIONAL AND BODIES AND INDIVIDUALS, THERE WAS A GENERAL CONSENSUS THAT MORE DISCLOSURE WOULD BE IN THE PUBLIC INTEREST.
IT WAS INTENDED THAT A BILL WOULD BE INTRODUCED INTO THE LEGISLATIVE COUNCIL IN LATE APRIL OR EARLY MAY, HE SAID.
COMMENTING THAT INSIDER DRALING HAD CAUSED INCREASING CONCERN IN HONG KONG, MR JACOBS SAID "THE LAW AS PRESENTLY FRAMED IS BASED ON THE CONCEPT OF 'CULPABILITY' OF CONDUCT BY INSIDERS, AND THE TASK OF DETERMINING WHETHER THERE HAS BEEN INSIDER TRADING FALLS THE INSIDER DEALING TRIBUNAL.
+
UPON
TWO POSSIBLE IDENTIFIED, HE SAID.
OPTIONS IN TACKLING THE PROBLEM HAD
BEEN
THE FIRST