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SATURDAY, APRIL 27, 1991
"GENERALLY, WE AIM TO ADJUST RATES OF DUTY, FEES AND CHARGES TO MAINTAIN THEIR REAL YIELD, AND PERIODICALLY WE THRESHOLD IN THE LIGHT OF INFLATION.
REVIEW TAX
LEVELS WHICH
"WE ALSO SEEK TO MAINTAIN RECURRENT REVENUE AT WILL COVER OUR RECURRENT EXPENDITURE, PRODUCE A SURPLUS SUFFICIENT TO FINANCE AT LEAST HALF OF OUR CAPITAL EXPENDITURE, AND ALLOW US ΤΟ MAINTAIN OUR RESERVES AT AN ADEQUATE LEVEL.
SIR PIERS POINTED OUT THAT IN RECOGNITION OF THE IMPORTANT ROLE WHICH CAPITAL MARKETS CAN PLAY IN ECONOMIC DEVELOPMENT, THE GOVERNMENT HAD TAKEN POSITIVE STEPS OVER THE PAST FEW YEARS TO DEVELOP HONG KONG'S CAPITAL MARKET.
"FOLLOWING AN IN-DEPTH REVIEW OF THE QUESTION OF WHETHER NON-RESIDENTS SHOULD BE ALLOWED TO RAISE HONG KONG DOLLAR-DENOMINATED DEBT IN OUR CAPITAL MARKET, WE ANNOUNCED IN EARLY 1989 THAT THERE SHOULD BE NO OBJECTION IN PRINCIPLE TO SUCH ISSUES PROVIDED THAT THEY MET THE REQUIREMENTS OF OUR INVESTOR PROTECTION LEGISLATION IN THE SAME WAY AS THOSE BY DOMESTIC BORROWERS," HE SAID.
INTEREST WITHHOLDING TAX ON HONG KONG DOLLAR-DENOMINATED CAPITAL MARKET INSTRUMENTS WAS COMPLETELY ABOLISHED WITH EFFECT FROM THE YEAR OF ASSESSMENT COMMENCING APRIL 1, 1989.
'A PROGRAMME FOR THE ISSUE OF EXCHANGE FUND BILLS WAS LAUNCHED IN MARCH 1990, AND WE ARE CURRENTLY WORKING ON A PROGRAMME OF GOVERNMENT BONDS, TO START HOPEFULLY IN AUTUMN THIS YEAR, WITH ISSUES OF TWO OR POSSIBLY THREE-YEAR MATURITIES.
"IT WOULD CERTAINLY ADD A FURTHER IMPETUS IF FURTHER HIGHLY-RATED BORROWERS OF INTERNATIONAL STANDING CAME TO BORROW IN OUR MARKET, SIR PIERS SAID.
H
THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (IBRD) LAUNCHED ITS FIRST ISSUE OF HONG KONG DOLLAR-DENOMINATED BONDS IN HONG KONG IN MAY 1989 AND HAS MADE TWO MORE ISSUES SINCE THEN.
THE INTERNATIONAL FINANCE CORPORATION ALSO HAS PLANS TO MAKE AN ISSUE IN HONG KONG THIS YEAR.
"SUCH BOND ISSUES HAVE BEEN WELCOMED BY THE HONG KONG MARKET, AND THERE HAS BEEN NO SHORTAGE OF COUNTERPARTIES TO SWAP THE LOCAL CURRENCY INTO A FOREIGN CURRENCY NEEDED BY THE ISSUER.
"IN THIS CONNECTION, I WOULD WELCOME THE ASIAN DEVELOPMENT BANK CONSIDERING EXTENDING ITS PARTICIPATION IN THE REGION'S CAPITAL MARKET BY ISSUING ITS TRIPLE-A RATED BONDS IN HONG KONG," HE SAID.
ON THE ADB'S OPERATIONS OVER THE PAST YEAR, SIR PIERS SAID IT IS HEARTENING TO NOTE THAT THE BANK'S NET POSITIVE TRANSFER OF RESOURCES TO DEVELOPING MEMBER COUNTRIES ROSE BY 67 PER CENT TO SOME $1.5 BILLION.
/"I APPLAUD