37
WEDNESDAY, APRIL 12, 1989
AS TO THE SECOND REASON, AGAIN THE POSITION IN STATES WAS TOTALLY DIFFERENT FROM HONG KONG'S, BECAUSE
THE UNITED IN HONG THE HANG SENG INDEX WAS ONLY BASED ON THE PRICES OF 30 COMPANIES.
KONG
"EXPERIENCE HAS SHOWN THAT ANY SENSITIVE INFORMATION PERTAINING TO ANY ONE OF THESE 30 COMPANIES, PARTICULARLY LIGHT OF A RISING OR FALLING MARKET, WILL MOST CERTAINLY CAUSE HANG SENG INDEX TO RISE OR FALL EVEN FURTHER,
** MR LEE SAID.
IN
THE THE
FUTURES
FUTURES
THE
IF THERE WAS NO POWER FOR THE SECURITIES AND COMMISSION TO INVESTIGATE INTO SUSPECTED INSIDER DEALING IN CONTRACTS. A PERSON POSSESSED OF SENSITIVE INFORMATION CONCERNING SHARES OF ONE OF THE SAID 30 COMPANIES WOULD SIMPLY BUY FUTURES CONTRACTS IF HE HAD GOOD NEWS, WITH A VIEW TO SELLING THEM AFTER HANG SENG INDEX HAD RISEN WHEN THE NEWS HAS BECOME
THE PUBLIC; AND VICE VERSA IN RELATION TO BAD NEWS.
BETWEEN OUR SMALL MARKET
"THERE IS SIMPLY NO COMPARISON HONG KONG AND THE MUCH LARGER MARKETS IN THE U.S.A. WHERE THE NEWS A SINGLE COMPANY, NO MATTER HOW LARGE, SIMPLY DOES NOT BRING WHOLE MARKET UP OR DOWN WITH IT," HE SAID.
IN
OF
THE
FOR THESE REASONS, THE SECOND REASON SET OUT IN THE PAPER NOT APPLICABLE TO HONG KONG.
WAS
HE ADDED THAT IT WAS NO ANSWER TO SAY THAT EVEN THE UNITED STATES DID NOT HAVE IT, AS WAS SAID TO THE AD HOC GROUP.
"FOR WE SHOULD BE PROUD TO TAKE THE LEAD, IF NECESSARY, IN THE FIGHT AGAINST INSIDER DEALING, AND SHOULD NOT WAIT COWARDLY FOR OTHER COUNTRIES TO TAKE THE LEAD, PARTICULARLY WHEN THEY MAY NOT
SOME
THE NEED," MR LEE SAID.
HAVE
HE SAID HE HAD DELIBERATED LONG AND HARD WHETHER HE SHOULD PUSH THE ADMINISTRATION INTO ACTION BY SEEKING TO AMEND THE USE GENTLE PERSUASIVE ARGUMENT.
BILL OR
HE CHOSE THE LATTER BECAUSE HE BELIEVED IT WOULD BE MORE
EFFECTIVE.
0
/38