THURSDAY, APRIL 27, 1989
26
SMA SPEAKS ON HK DOLLAR CAPITAL MARKET
THE GOVERNMENT HOPES THAT ITS MORE RELAXED ATTITUDE TOWARDS
KONG DOLLAR DEBT NON-RESIDENT ISSUES OF HONG
WILL ENCOURAGE HIGH THE HONG KONG DOLLAR QUALITY NON-RESIDENT BORROWERS TO MAKE USE OF
NENDICK, CAPITAL MARKET, THE SECRETARY FOR MONETARY AFFAIRS, MR DAVID SAID TODAY (THURSDAY),
MARKETS
EXPRESS
SPEAKING AT A CONFERENCE OF THE HONG KONG CAPITAL ASSOCIATION, MR NENDICK SAID ONE OF THE FIRST INSTITUTIONS TO INTEREST IN TAKING ADVANTAGE OF THIS RELAXATION WAS THE WORLD BANK.
ΤΟ
HE SAID WORLD BANK OFFICIALS HAD VISITED HONG KONG RECENTLY
OF MARKET CONSULT WITH THE GOVERNMENT AND A NUMBER
MEMBERS ON THE POSSIBILITY OF A DOMESTIC PUBLIC OFFERING OF HONG KONG DOLLAR BONDS.
"WHILST IN THE LIGHT OF WHAT I HAVE SAID, WE WOULD OBVIOUSLY MUST BE FOR WELCOME THE PRESENCE OF SUCH A TOP QUALITY BORROWER, IT THEM TO DECIDE WHETHER, AND IF SO WHEN, THEY WISH TO TAP OUR MARKETS.
A
WORLD BANK "IT IS OUR BELIEF, TROUGH, THAT A
ISSUE IN HONG KONG DOLLARS WOULD HELP PROVIDE DEPTH TO THE BOND MARKET AND ACT AS
HE SAID. PRIMER IN STIMULATING A HEALTHY GROWTH IN MARKET ACTIVITY,"
A
MR NENDICK SAID THE GOVERNMENT'S DECISION THAT IT COULD TAKE
TOWARDS THE MORE NEUTRAL STANCE
ISSUE OF HONG KONG DOLLAR DEBT INSTRUMENTS BY NON-RESIDENTS WAS MADE FOR TWO REASONS.
"FIRST SINCE THE IMPLEMENTATION OF THE NEW ACCOUNTING
AND THE ARRANGEMENTS BETWEEN THE EXCHANGE FUND
HONGKONG BANK LAST JULY, THE GOVERNMENT
ACQUIRED MORE EFFECTIVE INFLUENCE
HAS
INTERBANK LIQUIDITY AND INTEREST RATES.
OVER
THE "BY TAKING ACTION UNDER
ARRANGEMENTS. WE ARE NOW MUCH
BETTER PLACED TO ENSURE EXCHANGE RATE
EXCHANGE RATE SYSTEM AND TO COUNTER, RY NON-RESIDENT ARISING FROM SWITCHING FOREIGN CURRENCIES.
STABILITY UNDER
AT
THE LINKED NECESSARY. THE EFFECTS
BORROWERS INTO OR
OUT OF
LARGE
HAS AT KONG
PRESENT A THE DOLLARS,
"SECONDLY, GIVEN THAT OUR FINANCIAL SECTOR INVOLUNTARY' SWITCHED-OUT POSITION IN HONG
DEBT HERE W11.1. TEND TO ISSUE OF QUALITY SWITCHING FUNDS BACK INTO HONG KONG DOLLARS TO AND THUS LARGELY NEUTRALISE THE EFFECT OF SALES OF HONG BY THE BORROWERS, HE SAID.
"
MR NENDICK
STRESSED THAT
COURSE,
STILL HAVE
RESULT IN THIS SECTOR INVEST IN SUCH DEBT KONG DOLLARS
NON-RESIDENT BORROWERS WOULD, OF *PO COMPLY WITH REQUIREMENTS COMMON TO ALL APPLICANTS AS LAID DOWN UNDER THE PROTECTION OF INVESTORS ORDINANCE.
"YOU WILL BE PLEASED To HEAR, HOWEVER, THAT THERE ARE
FOR STREAMLINING THE PROPOSALS UNDER EXAMINATION PROCEDURES," HE SAID.
PRESENT
APPROVAL
/TURNING TO .....................