TUESDAY, JUNE 26, 1990
"THE NEED FOR A WELL-ESTABLISHED MONEY AND CAPITAL MARKET FOR CARRYING OUT MONEY MARKET OPERATIONS HAS BEEN RECOGNISED; AND EFFORTS ARE BEING DIRECTED TO REMOVING UNNECESSARY BUREAUCRATIC IMPEDIMENTS TO THE DEVELOPMENT OF THESE MARKETS," HE SAID.
TURNING TO STOCK MARKETS, MR NENDICK POINTED OUT THAT THE GROWING IMPORTANCE OF THE STOCK MARKETS OF the ASIAN PACIFIC REGION APPEARED TO BE RELATED TO SEVERAL FACTORS.
FIRST, WITH THE STRONG ECONOMIC GROWTH AND HIGH SAVINGS RATIOS, THERE WERE INCREASING POOLS OF FUNDS AVAILABLE FOR INVESTMENT IN STOCK AND SHARES.
THIS WAS PARTICULARLY THE CASE IN ECONOMIES WHERE INVESTMENT POSSIBILITIES OUTSIDE THE STOCK MARKET WERE RATHER LIMITED.
"SECONDLY, THERE IS THE GLOBAL TREND TOWARDS INTERNATIONALISATION OF FINANCIAL MARKETS. WIDENED BEYOND NATIONAL BOUNDARIES," HE SAID.
INVESTORS' HORIZONS
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IN THE SEARCH FOR HIGH RETURNS AND DIVERSIFIED RISKS, INVESTORS WORLDWIDE HAD INCREASED THEIR EXPOSURE TO THE ASIAN PACIFIC FINANCIAL MARKETS, HE NOTED.
"THIS HAS BEEN MADE EASIER BY THE RECENT MOVES TOWARDS LIBERALISATION OF FOREIGN ACCESS TO DOMESTIC MARKETS BY SOME ASIAN
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PACIFIC ECONOMIES, HE ADDED.
HE BELIEVED THAT THESE TRENDS WOULD HAVE EVEN GREATER SIGNIFICANCE IN THE 19905.
"APART FROM ALLOWING MORE LIBERAL FOREIGN ACCESS, A NUMBER OF STOCK MARKETS IN THE REGION ARE MAKING EFFORTS TO
THEIR ENHANCE EFFICIENCY BY SETTING UP CENTRALISED DEPOSITORY AND SETTLEMENT SYSTEMS," HE SAID.
MR NENDICK SAID SUCH A SYSTEM WOULD BE EXPECTED TO BE IN PLACE IN HONG KONG BY THE END OF NEXT YEAR.
ON THE REGULATORY SIDE, INCREASING ATTENTION WAS BEING FOCUSSED ON ENSURING THAT THERE WAS ADEQUATE MARKET INTEGRITY TO SATISFY INTERNATIONAL INVESTORS, PARTICULARLY IN THE AREAS OF DISCLOSURE OF ADEQUATE INFORMATION AND THE DETERRENCE OF INSIDER TRADING, HE ADDED,
MR NENDICK NOTED THAT ECONOMIES OF THE REGION HAD IN THE PAST DIFFERED SIGNIFICANTLY IN THEIR FINANCIAL POLICIES.
"IN HONG MARKET PHILOSOPHY.
KONG, WE HAVE FOR LONG STRICTLY ADHERED
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A FREE
"OUR REGULATORY FRAMEWORK IS MAINTAINED FOR THE PURPOSE ENSURING MARKET INTEGRITY AND FOR PROVIDING A DEGREE OF PROTECTION NON-PROFESSIONAL PARTICIPANTS IN THE MARKETS.
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