TUESDAY, NOVEMBER 8, 1988
TURNING TO HONG KONG'S FUTURE,
PRESERVED
MR LEUNG SAID THAT THE SINO-BRITISH JOINT DECLARATION
THE ESSENTIAL INGREDIENTS WHICH ACCOUNTED FOR THE TERRITORY'S SUCCESS AS A LEADING INTERNATIONAL FINANCIAL, COMMERCIAL AND MANUFACTURING CENTRE.
MR LEUNG WILL ALSO GIVE AN ADDRESS TO THE HONG
BUSINESS ASSOCIATION IN SYDNEY TOMORROW.
SMA ASSURES CHICAGO INVESTORS ABOUT HK MARKETS
KONG-AUSTRALIA
SECRETARY FOR MONETARY AFFAIRS, DAVID NENDICK, YESTERDAY (MONDAY) ASSURED A GROUP OF LEADING CHICAGO BUSINESSMEN THAT REFORMS IN THE SECURITIES AND FUTURES MARKETS WHICH HAD BEEN INSTITUTED SINCE THE WORLDWIDE STOCK MARKET CRASH LAST YEAR, MADE IT EXTREMELY UNLIKELY THAT A REPETITION OF EVENTS THAT FORCED THE CLOSURE OF THE HONG KONG STOCK MARKET WOULD EVER OCCUR AGAIN.
SPEAKING BEFORE AN AUDIENCE OF THE MID-AMERICA COMMITTEE, A GROUP COMPRISING THE CHIEF EXECUTIVES OF LEADING MIDWESTERN UNITED STATES MULTINATIONAL COMPANIES, MR NENDICK OUTLINED THE VARIOUS MEASURES ALREADY ADOPTED, OR WHICH WERE IN THE COURSE OF BEING IMPLEMENTED, FOLLOWING THE REPORT OF THE SECURITIES REVIEW COMMITTEE PUBLISHED LAST JUNE.
THESE INCLUDED THE RECONSITUTION OF THE STOCK EXCHANGE COMMITTEE AND INTERNAL MANAGEMENT STRUCTURE, FORTHCOMING CHANGES AT THE FUTURES EXCHANGE AND THE NEW AUTONOMOUS SUPERVISORY STRUCTURE NOW BEING PUT INTO PLACE BY THE HONG KONG GOVERNMENT.
TRACING THE BACKGROUND то LAST OCTOBER'S CLOSURE OF THE MARKETS IN HONG KONG, MR NENDICK NOTED THAT SINCE THE UNIFIED STOCK EXCHANGE BEGAN OPERATING IN APRIL 1986 ITS TRADING VOLUME HAD INCREASED 20-FOLD AND MARKET CAPITALISATION INCREASED TWO-AND-A-HALF TIMES UP TO OCTOBER 1987.
THE HONG KONG STOCK
HE ESTIMATED FOREIGN INVESTMENT IN EXCHANGE HAD CLIMED TO MORE THAN HALF OF THIS TOTAL.
HE ALSO POINTED OUT THAT TRADING OF THE HANG SENG STOCK INDEX FUTURES ON THE HONG KONG FUTURES EXCHANGE HAD BECOME THE WORLD'S MOST ACTIVELY TRADED SUCH CONTRACT OUTSIDE OF ITS EQUIVALENT IN CHICAGO.
"FRANKLY, THE REGULATORY ENVIRONMENT AND STRUCTURE OF OUR MARKETS COULD NOT KEEP PACE WITH THESE CHANGES, HE SAID.
"FURTHER, THERE