THURSDAY, JUNE 2, 1988
KONG.
**
OVERVIEW OF OUR CHAPTER I PROVIDES A BRIEF AND COMPREHENSIVE
STATE OF AFFAIRS THAT REPORT. OUR PRINCIPAL CONCLUSIONS ABOUT THE
LAST YEAR ARE SET OUT IN OBTAINED IN HONG KONG BEFORE OCTOBER 19 PARAS. 1.6 AND 1.7. AS WE SAY IN PARA. 1.6.
..THE CONCEPT OF SELF- IN HONG REGULATION AND MARKET SELF-DISCIPLINE HAD FAILED TO DEVELOP
IS THAT, FACED WITH THIS,
THE WHAT IS EQUALLY UNFORTUNATE
WITH OVERSEEING
HAD THE MARKETS SUPERVISORY BODIES
THAT ALL PARTIES MUST BEAR WE CONSIDER EFFECTIVE CONTROL."
THERE WERE STRUCTURAL AND RESPONSIBILITY FOR THIS STATE OF AFFAIRS:
TWO COMMISSIONS AND OPERATIONAL DEFECTS WITH THE TWO EXCHANGES, THE THE OFFICE OF THE COMMISSIONER FOR SECURITIES. IN PARA. 1.7.
-
CHARGED
LOST SOME
THESE ARE SUMMARISED
OUT OUR STRATEGY AND
OBJECTIVES.
WE
IS
A
AND
NOTABLY
IN CHAPTER III WE SET POINT OUT THAT, IN INTERNATIONAL TERMS, THE HONG KONG STOCK MARKET
OF MARKET
WITH CAPITALISATION, SMALL IN TERMS A FRINGE MARKET NARROW RANGE OF LISTED COMPANIES, AN INADEQUATE SETTLEMENT SYSTEM
KONG LACKING REGULATION. OTHER FINANCIAL SECTORS IN HONG
ARE MORE SIGNIFICANT. GOLD TRADING, BANKING AND FUND MANAGEMENT
-
WE SUMMARISE OUR MAIN OBJECTIVES FOR HONG KONG IN
AND 3.12
-
-
PARAS. 3.11
"
BY
"GLOBAL WE ACCEPT THAT BECOMING A CORNER OF THE SO-CALLED
RISKS, CARRIES
BUT WE BELIEVE OCTOBER MARKETPLACE"
IN ANY DEMONSTRATES THAT THESE PROBABLY CANNOT NOW BE AVOIDED
ON THE INTERNATIONAL CASE. HONG KONG MUST ACT TO CAPITALISE
WHILE MINIMISING THE RISKS IN ITS MARKETS INTEREST
WE BELIEVE, THEREFORE, STRENGTHENING ITS SYSTEMS AND CONTROLS.
BECOME THE PRE-EMINENT CAPITAL THAT HONG KONG SHOULD AIM TO
AND ΤΟ THAT END, SHOULD SEE THE MARKET IN SOUTHEAST ASIA PROGRESSIVE INTERNATIONALISATION OF ITS SECURITIES AN IMPORTANT STRATEGIC OBJECTIVES; BY MEAN THE USE OF HONG KONG'S MARKETS BY ISSUERS, INTERMEDIARIES FROM OUTSIDE THE TERRITORY."
MARKETS AS INTERNATIONALISATION WE INVESTORS AND
HONG KONG HAS EXCELLENT ECONOMIC FUNDAMENTALS ON THESE IN DEVELOPING ITS STOCK MARKETS.
•
IT SHOULD BUILD
THAT
ESSENTIAL. WE BELIEVE IF THIS 13 TO HAPPEN REFORMS ARE
THINGS: SYSTEMIC STABILITY
THAT (90 HONG KONG SHOULD AIM FOR FOUR
FUNCTIONING MARKETS (SO RISKS ARE MANAGED WELL), ORDERLY AND SMOOTH
THAT THERE THAT ALL THE SYSTEMS OPERATE PROPERLY), FAIR MARKETS (SO
PARTIES TO DEAL ON AN EQUAL IS ADEQUATE DISCLOSURE TO ENABLE ALL FOOTING), AND, WITH ALL THESE, ADEQUATE PROTECTION FOR INVESTORS.
ABSOLUTELY
THE
IN THIS THE CONCEPT OF EFFECTIVE RISK MANAGEMENT IS
THAT FAILED IN OCTOBER THREATENING IT WAS THIS FUNDAMENTAL. SYSTEMIC STABILITY OF THE STOCK AND FUTURES MARKETS.
/WE HAVE ..*