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THURSDAY, JANUARY 27, 1994
HK BENEFITS FROM CHINESE MONETARY REFORMS
* *
CHINA WILL
THE MONETARY REFORM MEASURES BEING IMPLEMENTED BY OVERALL BENEFIT HONG KONG IN THE LONG RUN, THE CHIEF EXECUTIVE OF
KONG MONETARY AUTHORITY HONG
(HKMA), MR JOSEPH YAM, SAID (THURSDAY).
SPEAKING
THE TODAY
AND
IMPLICATIONS
ASSOCIATION,
INCREASINGLY
BEING
ON "MONETARY DEVELOPMENTS IN CHINA FOR HONG KONG" AT A LUNCH MEETING OF THE FRENCH BUSINESS MR
THAT WITH THE HONG KONG ECONOMY YAM NOTED INTEGRATED WITH THAT OF CHINA, ITS STABILITY AND PROSPERITY TO A LARGE EXTENT WERE INFLUENCED BY DEVELOPMENTS IN CHINA.
REFORM MEASURES WILL CONSIDERABLY STRENGTHEN BE BROUGHT SYSTEM AND IN TIME ENABLE INFLATION TO
MONETARY "THE
CHINA'
A'S MONETARY
UNDER CONTROL.
"THIS IS A NECESSARY CONDITION FOR THE RAPID ECONOMIC DEVELOPMENT IN CHINA TO BE SUSTAINED IN THE LONGER TERM.
"THE PATH WILL I THINK BECOME LESS BUMPY. WITH LESS VOLATILITY AND DISRUPTIVE IN THE
SHOCKS OF CHINA THERE WILL BE LESS ECONOMY CRISES FOR HONG KONG," HE SAID.
A STABLE
FOR HONG
MR YAM ADDED THAT WITH THE ROLE NOW HONG KONG WAS PLAYING AS AN INTERNATIONAL FINANCIAL CENTRE AT THE DOOR STEPS OF CHINA, AND PROSPEROUS CHINA WOULD UNDOUBTEDLY MEAN MORE BUSINESS KONG.
H
WILL ALSO
AS THE BANKS IN CHINA BECOME COMMERCIALISED, THEY START TO LOOK TO THE INTERNATIONAL MARKET. NATURALLY THEY WOULD WANT A INTERNATIONALISED PRESENCE IN HONG KONG AND MAKE USE OF THE VERY MUCH FINANCIAL MARKETS OF HONG KONG. SO WOULD BANKS FROM OTHER PARTS OF THE WORLD WANTING TO DO BUSINESS WITH CHINA.
"AND AS THE BANKING SYSTEM IN CHINA OPENS UP, KONG
WILL
OPPORTUNITIES HAVE ATTRACTIVE TOO ACTIVITIES INTO CHINA," HE SAID.
BANKS IN HONG FOR EXPANDING THEIR
MR YAM ADDED THAT HONG KONG CLEARLY HAD A USEFUL ROLE TO TRANSFERRING THE SKILLS AND TECHNOLOGY NECESSARY TO ASSIST AND UP THE REFORM PROCESS.
PLAY, SPEED
THE CLOSE "THERE IS THEREFORE A NEED FOR THE CONTINUATION OF CO-OPERATION BETWEEN THE FINANCIAL COMMUNITIES OF HONG KONG AND CHINA, AND THE AUTHORITY AND
BETWEEN THE HONG KONG MONETARY PARTICULARLY
APPRECIATION PEOPLE'S BANK OF CHINA, SO THAT BOTH COULD GAIN A BETTER
BETWEEN THE TWO MONETARY INTRICACIES OF THE RELATIONSHIP THE SYSTEMS.
OF
IMPACT DEVELOPMENT.
ON, AND
"IT IS IMPORTANT THAT CHINA TAKES FULL ACCOUNT OF THE
OF, THE POTENTIAL
HONG
ITS KONG IN
POSSIBLE MONETARY
"IT IS EQUALLY IMPORTANT THAT WE UNDERSTAND THIS SO THAT WE KNOW HOW TO COPE AND CONTRIBUTE OUR TECHNICAL EXPERTISE THE BEST INTEREST OF HONG KONG, HE SAID.
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DEVELOPMENT,
IN
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